Aim Funds Group N-CSRS Certified semi-annual shareholder report (management investment company)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-01540

AIM Funds Group (Invesco Funds Group)

(Exact name of registrant as specified in charter)

11 Greenway Plaza, Suite 2500 Houston, Texas 77046

(Address of principal executive offices) (Zip code)

Philip A. Taylor 11 Greenway Plaza, Suite 2500 Houston, Texas 77046

(Name and address of agent for service)

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

Date of fiscal year end: 12/31

Date of reporting period: 6/30/10

Item 1. Reports to Stockholders.

Invesco Basic Balanced Fund
Semiannual Report to Shareholders § June 30, 2010

2	Fund Performance
4	Letters to Shareholders
5	Schedule of Investments
12	Financial Statements
14	Notes to Financial Statements
22	Financial Highlights
23	Fund Expenses
24	Approval of Investment Advisory and Sub-Advisory Agreements

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data provided by Invesco.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	-6.98	%
Class B Shares	-7.25
Class C Shares	-7.34
Class R Shares	-7.10
Class Y Shares	-6.78
Investor Class Shares	-6.99
Institutional Class Shares	-6.68
S&P 500 Index▼ (Broad Market Index)	-6.64
Custom Basic Balanced Index n (Style-Specific Index)	-0.82
Lipper Mixed-Asset Target Allocation Moderate Funds Index▼ (Peer Group Index)	-2.76

^▼ Lipper Inc.; ⁿInvesco, Lipper Inc.

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

     The Custom Basic Balanced Index, created by Invesco to serve as a benchmark for Invesco Basic Balanced Fund, is composed of the following indexes: Russell 1000^® Value (60%) and Barclays Capital U.S. Aggregate (40%). The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co. An investment cannot be made directly in an index.

     The Lipper Mixed-Asset Target Allocation Moderate Funds Index is an unmanaged index considered representative of mixed-asset target allocation moderate funds tracked by Lipper.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

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

2      Invesco Basic Balanced Fund

Average Annual Total Returns

As of 6/30/10, including maximum applicable sales charges

Class A Shares
Inception (9/28/01)	0.94	%
5 Years	-2.99
1 Year	7.78
Class B Shares
Inception (9/28/01)	0.94	%
5 Years	-2.98
1 Year	8.06
Class C Shares
Inception (9/28/01)	0.87	%
5 Years	-2.64
1 Year	12.06
Class R Shares
Inception	1.37	%
5 Years	-2.15
1 Year	13.59
Class Y Shares
Inception	1.65	%
5 Years	-1.80
1 Year	14.26
Investor Class Shares
Inception	1.58	%
5 Years	-1.90
1 Year	13.87
Institutional Class Shares
Inception	1.94	%
5 Years	-1.43
1 Year	14.42

Class R shares incepted on April 30, 2004. Performance shown prior to that date is that of Class A shares, restated to reflect the higher 12b-1 fees applicable to Class R shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Investor Class shares incepted on July 15, 2005. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Institutional Class shares incepted on April 30, 2004. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

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

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares was 1.33%, 2.08%, 2.08%, 1.58%, 1.08%, 1.33% and 0.78%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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

3      Invesco Basic Balanced Fund

Letters to Shareholders

Bruce Crockett

Dear Fellow Shareholders:

Although the global markets have improved since their lows of 2009, they remain challenging as governments around the world work to ensure the recovery remains on track. In this volatile environment, it’s comforting to know that your Board is committed to putting your interests first. We realize you have many choices when selecting a money manager, and your Board is working hard to ensure you feel you’ve made the right choice.

     To that end, I’m pleased to share the news that Invesco has completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments. This acquisition greatly expands the breadth and depth of investment strategies we can offer you. As a result of this combination, Invesco gained investment talent for a number of investment strategies, including U.S. value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key advantage of this combination is the highly complementary nature of our cultures. This is making it much easier to bring our organizations together while ensuring that our investment teams remain focused on managing your money.

     We view this addition as an excellent opportunity for you, our shareholders, to have access to an even broader range of well-diversified mutual funds. Now that the acquisition has closed, Invesco is working to bring the full value of the combined organization to shareholders. The key goals of this effort are to ensure that we have deeply resourced and focused investment teams, a compelling line of products and enhanced efficiency, which will benefit our shareholders now and over the long term.

     It might interest you to know that the mutual funds of the combined organization are overseen by a single fund Board composed of 17 current members, including four new members who joined us from Van Kampen/Morgan Stanley. This expanded Board will continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we have always maintained.

     As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair, Invesco Funds Board of Trustees

    Philip Taylor

Dear Shareholders:

I’m pleased to present this report on your Fund’s performance for the six months ended June 30, 2010. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, I’m glad you’re part of the Invesco family.

     At Invesco, we’re committed to providing you with timely information about market conditions, answering questions you may have about your investments and offering outstanding customer service. At our website, invesco.com/us, you can obtain unique market perspectives, useful investor education information and your Fund’s most recent quarterly commentary.

     I believe Invesco, as a leading global investment manager, is uniquely positioned to serve your needs.

     First, we are committed to investment excellence. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, each operating under a disciplined philosophy and process with strong risk oversight and quality controls.

     Second, we offer you a broad range of investment products that can be tailored to your needs and goals. These products include single-country, regional and global investment options spanning major equity, fixed income and alternative asset classes.

     And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do.

     If you have questions about your account, please contact one of our client services representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, please email me directly at phil@invesco.com.

     Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

4      Invesco Basic Balanced Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–66.29%
Advertising–0.54%
Interpublic Group of Cos., Inc. (The)(b)		439,614	$	3,134,453
Aerospace & Defense–0.32%
General Dynamics Corp.		31,769		1,860,393
Air Freight & Logistics–0.47%
FedEx Corp.		39,316		2,756,445
Apparel Retail–0.63%
Gap, Inc. (The)		188,957		3,677,103
Asset Management & Custody Banks–0.92%
Janus Capital Group Inc.		201,894		1,792,819
State Street Corp.		105,642		3,572,812
				5,365,631
Automobile Manufacturers–0.40%
Ford Motor Co.(b)		230,036		2,318,763
Biotechnology–0.83%
Genzyme Corp.(b)		95,794		4,863,461
Cable & Satellite–1.99%
Comcast Corp.–Class A		380,489		6,609,094
Time Warner Cable Inc.		95,947		4,996,920
				11,606,014
Communications Equipment–0.95%
Cisco Systems, Inc.(b)		260,937		5,560,567
Computer Hardware–1.90%
Dell Inc.(b)		314,188		3,789,107
Hewlett-Packard Co.		168,809		7,306,054
				11,095,161
Consumer Electronics–0.69%
Sony Corp.–ADR (Japan)		151,508		4,042,233
Data Processing & Outsourced Services–0.54%
Western Union Co.		210,245		3,134,753
Diversified Banks–1.19%
U.S. Bancorp		113,858		2,544,726
Wells Fargo & Co.		171,848		4,399,309
				6,944,035
Diversified Chemicals–1.18%
Dow Chemical Co. (The)		173,424		4,113,617
PPG Industries, Inc.		45,832		2,768,711
				6,882,328
Diversified Metals & Mining–0.41%
Freeport-McMoRan Copper & Gold Inc.		40,621		2,401,920
Diversified Support Services–0.37%
Cintas Corp.		90,678		2,173,552
Drug Retail–0.55%
Walgreen Co.		120,068		3,205,816
Electric Utilities–2.87%
American Electric Power Co., Inc.		263,384		8,507,303
Edison International		56,572		1,794,464
Entergy Corp.		43,824		3,138,675
FirstEnergy Corp.		94,095		3,314,967
				16,755,409
Food Distributors–0.79%
Sysco Corp.		160,453		4,584,142
Health Care Distributors–0.48%
Cardinal Health, Inc.		82,480		2,772,153
Health Care Equipment–0.88%
Covidien PLC (Ireland)		127,875		5,138,018
Home Improvement Retail–1.12%
Home Depot, Inc. (The)		232,777		6,534,050
Human Resource & Employment Services–0.70%
Manpower Inc.		50,971		2,200,928
Robert Half International, Inc.		78,983		1,860,049
				4,060,977
Hypermarkets & Super Centers–1.21%
Wal-Mart Stores, Inc.		146,605		7,047,302
Industrial Conglomerates–3.76%
General Electric Co.		813,708		11,733,670
Siemens AG–ADR (Germany)		47,149		4,221,250
Tyco International Ltd.		169,045		5,955,455
				21,910,375
Industrial Machinery–1.61%
Dover Corp.		109,489		4,575,546
Ingersoll-Rand PLC (Ireland)		140,123		4,832,842
				9,408,388

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

5        Invesco Basic Balanced Fund

	Shares		Value
Insurance Brokers–2.20%
Marsh & McLennan Cos., Inc.		568,065	$	12,809,866
Integrated Oil & Gas–4.88%
ConocoPhillips		81,369		3,994,404
Exxon Mobil Corp.		68,145		3,889,035
Hess Corp.		78,928		3,973,235
Occidental Petroleum Corp.		123,539		9,531,034
Royal Dutch Shell PLC–ADR (United Kingdom)		140,735		7,067,712
				28,455,420
Integrated Telecommunication Services–0.67%
Verizon Communications Inc.		138,285		3,874,746
Internet Software & Services–2.21%
eBay Inc.(b)		456,563		8,953,200
Yahoo! Inc.(b)		283,194		3,916,573
				12,869,773
Investment Banking & Brokerage–0.89%
Charles Schwab Corp. (The)		365,783		5,186,803
IT Consulting & Other Services–0.63%
Amdocs Ltd.(b)		137,730		3,698,051
Life & Health Insurance–0.43%
Principal Financial Group, Inc.		106,045		2,485,695
Managed Health Care–0.96%
UnitedHealth Group Inc.		198,008		5,623,427
Motorcycle Manufacturers–0.34%
Harley-Davidson, Inc.		89,777		1,995,743
Movies & Entertainment–3.25%
Time Warner Inc.		258,336		7,468,494
Viacom Inc.–Class B		365,964		11,480,290
				18,948,784
Office Services & Supplies–0.40%
Avery Dennison Corp.		72,807		2,339,289
Oil & Gas Equipment & Services–0.82%
Schlumberger Ltd.		86,655		4,795,488
Oil & Gas Exploration & Production–1.71%
Anadarko Petroleum Corp.		118,508		4,276,954
Devon Energy Corp.		63,742		3,883,162
Noble Energy, Inc.		30,073		1,814,304
				9,974,420
Other Diversified Financial Services–5.60%
Bank of America Corp.		672,275		9,660,592
Citigroup Inc.(b)		1,063,358		3,998,226
JPMorgan Chase & Co.		519,194		19,007,692
				32,666,510
Packaged Foods & Meats–1.99%
Kraft Foods Inc.–Class A		313,060		8,765,680
Unilever N.V. (Netherlands)		104,629		2,858,464
				11,624,144
Personal Products–0.68%
Avon Products, Inc.		149,353		3,957,855
Pharmaceuticals–5.29%
Abbott Laboratories		64,888		3,035,461
Bayer AG–ADR (Germany)		73,396		4,095,497
Bristol-Myers Squibb Co.		303,115		7,559,688
Merck & Co., Inc.		186,764		6,531,137
Pfizer Inc.		384,669		5,485,380
Roche Holdings AG–ADR (Switzerland)		120,202		4,154,986
				30,862,149
Property & Casualty Insurance–0.79%
Chubb Corp. (The)		91,983		4,600,070
Regional Banks–2.57%
BB&T Corp.		132,399		3,483,418
Fifth Third Bancorp		238,266		2,928,289
PNC Financial Services Group, Inc.		151,626		8,566,869
				14,978,576
Semiconductor Equipment–0.34%
Lam Research Corp.(b)		52,146		1,984,677
Semiconductors–0.80%
Intel Corp.		239,014		4,648,822
Soft Drinks–0.54%
Coca-Cola Co. (The)		62,186		3,116,762
Wireless Telecommunication Services–1.00%
Vodafone Group PLC–ADR (United Kingdom)		282,589		5,841,115
Total Common Stocks & Other Equity Interests (Cost $393,583,959)				386,571,627
	Principal
	Amount
Bonds & Notes–12.47%
Airlines–0.05%
Delta Air Lines Inc.–Series 2001-1, Class A-2, Sr. Sec. Pass Through Ctfs., 7.11%, 09/18/11	$	300,000		311,625

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

6        Invesco Basic Balanced Fund

	Principal
	Amount		Value
Automotive Retail–0.27%
Advance Auto Parts Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20	$	450,000	$	457,313
AutoZone Inc., Sr. Unsec. Notes, 5.88%, 10/15/12		1,040,000		1,123,159
				1,580,472
Brewers–0.18%
Anheuser-Busch InBev Worldwide Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 01/15/20		950,000		1,026,806
Broadcasting–0.51%
CBS Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 04/15/20		950,000		1,015,123
COX Communications Inc., Sr. Unsec. Bonds, 8.38%, 03/01/39(c)		640,000		842,929
Sr. Unsec. Global Notes, 5.45%, 12/15/14		400,000		441,008
COX Enterprises Inc., Sr. Unsec. Notes, 7.88%, 09/15/10(c)		645,000		652,257
				2,951,317
Consumer Finance–0.08%
Capital One Bank USA N.A., Sr. Unsec. Global Notes, 5.75%, 09/15/10		440,000		443,867
Diversified Banks–1.12%
Barclays Bank PLC (United Kingdom), Sr. Unsec. Global Notes, 5.13%, 01/08/20		1,140,000		1,141,631
Nordea Bank A.B. (Sweden)–Series 2, Sr. Unsec. Notes, 3.70%, 11/13/14(c)		880,000		900,383
Royal Bank of Scotland PLC (The) (United Kingdom), Sr. Unsec. Gtd. Floating Rate Medium-Term Notes, 0.47%, 10/28/11(c)(d)		900,000		899,494
Sr. Unsec. Gtd. Global Notes, 4.88%, 03/16/15		555,000		552,864
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 3.85%, 04/27/15(c)		260,000		260,232
5.50%, 11/18/14(c)		1,140,000		1,264,242
US Bank N.A., Sub. Notes, 3.78%, 04/29/20		750,000		762,554
Wells Fargo & Co., Sr. Unsec. Global Notes, 3.63%, 04/15/15		750,000		763,995
				6,545,395
Diversified Capital Markets–0.09%
UBS AG (Switzerland), Sr. Unsec. Medium-Term Notes, 5.75%, 04/25/18		520,000		546,143
Electric Utilities–0.70%
Carolina Power & Light Co., Sec. First Mortgage Bonds, 5.30%, 01/15/19		330,000		371,740
DCP Midstream LLC, Sr. Unsec. Notes, 7.88%, 08/16/10		1,650,000		1,662,578
Enel Finance International S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 3.88%, 10/07/14(c)		600,000		604,906
Ohio Power Co.–Series M, Sr. Unsec. Notes, 5.38%, 10/01/21		950,000		1,026,238
PPL Electric Utilities Corp., Sec. First Mortgage Bonds, 6.25%, 05/15/39		355,000		414,232
				4,079,694
Gold–0.17%
Newmont Mining Corp., Sr. Unsec. Gtd. Notes, 5.13%, 10/01/19		950,000		1,015,996
Health Care Equipment–0.19%
Boston Scientific Corp., Sr. Unsec. Notes, 6.00%, 01/15/20		540,000		537,916
CareFusion Corp., Sr. Unsec. Global Notes, 6.38%, 08/01/19		475,000		542,255
				1,080,171
Health Care Services–0.25%
Express Scripts Inc., Sr. Unsec. Gtd. Global Notes, 6.25%, 06/15/14		1,300,000		1,472,786
Hotels, Resorts & Cruise Lines–0.33%
Hyatt Hotels Corp., Sr. Unsec. Notes, 5.75%, 08/15/15(c)		1,400,000		1,484,137
Wyndham Worldwide Corp., Sr. Unsec. Notes, 7.38%, 03/01/20		430,000		433,762
				1,917,899
Industrial REIT’s–0.23%
ProLogis, Sr. Unsec. Notes, 6.88%, 03/15/20		1,400,000		1,321,160
Integrated Telecommunication Services–0.90%
British Telecommunications PLC (United Kingdom), Sr. Unsec. Global Notes, 9.38%, 12/15/10		1,280,000		1,325,108
Cellco Partnership/Verizon Wireless Capital LLC, Sr. Unsec. Global Notes, 3.75%, 05/20/11		880,000		902,516
Koninklijke KPN N.V. (Netherlands), Sr. Unsec. Global Bonds, 8.00%, 10/01/10		860,000		873,897
Telecom Italia Capital S.A. (Italy), Sr. Unsec. Gtd. Global Notes, 4.88%, 10/01/10		790,000		794,510
Windstream Georgia Communications Corp., Sr. Unsec. Deb., 6.50%, 11/15/13		1,343,000		1,353,472
				5,249,503
Investment Banking & Brokerage–0.17%
Macquarie Group Ltd. (Australia), Sr. Unsec. Notes, 6.00%, 01/14/20(c)		950,000		1,020,657
Life & Health Insurance–0.68%
MetLife Inc., Sr. Unsec. Global Notes, 7.72%, 02/15/19		1,385,000		1,643,875
Monumental Global Funding II, Sr. Sec. Notes, 5.65%, 07/14/11(c)		565,000		584,468

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

7        Invesco Basic Balanced Fund

	Principal
	Amount		Value
Life & Health Insurance–(continued)
Prudential Financial Inc., Series D, Sr. Unsec. Medium-Term Notes, 3.88%, 01/14/15	$	950,000	$	959,363
7.38%, 06/15/19		655,000		752,508
				3,940,214
Managed Health Care–0.16%
UnitedHealth Group Inc., Sr. Unsec. Notes, 5.25%, 03/15/11		925,000		948,965
Mortgage Backed Securities–0.27%
U.S. Bank N.A., Sr. Unsec. Medium-Term Global Notes, 5.92%, 05/25/12		1,503,261		1,571,985
Multi-Line Insurance–0.13%
Liberty Mutual Group Inc., Sr. Unsec. Notes, 5.75%, 03/15/14(c)		730,000		762,224
Office Electronics–0.29%
Xerox Corp., Sr. Unsec. Notes, 6.88%, 08/15/11		810,000		855,837
4.25%, 02/15/15		820,000		845,281
				1,701,118
Office REIT’s–0.15%
Digital Realty Trust L.P., Unsec. Gtd. Unsub. Bonds, 5.88%, 02/01/20(c)		855,000		878,827
Oil & Gas Exploration & Production–0.11%
Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 6.88%, 01/20/40		260,000		263,251
XTO Energy Inc., Sr. Unsec. Notes, 5.75%, 12/15/13		310,000		350,699
				613,950
Oil & Gas Storage & Transportation–0.55%
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Notes, 5.20%, 09/01/20		555,000		572,246
6.45%, 09/01/40		555,000		583,290
Spectra Energy Capital LLC, Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20		1,100,000		1,159,459
Transcontinental Gas Pipe Line Co. LLC–Series B, Sr. Unsec. Global Notes, 7.00%, 08/15/11		820,000		863,701
				3,178,696
Other Diversified Financial Services–2.28%
Bank of America Corp., Sr. Unsec. Global Notes, 6.50%, 08/01/16		750,000		813,478
Series L, Sr. Unsec. Medium-Term Notes, 7.38%, 05/15/14		315,000		353,584
Bear Stearns Cos. LLC (The), Sr. Unsec. Floating Rate Notes, 0.70%, 07/19/10(d)		3,070,000		3,070,905
Citigroup Inc., Sr. Unsec. Global Notes, 6.01%, 01/15/15		1,615,000		1,695,228
Countrywide Home Loans Inc.–Series L, Sr. Unsec. Gtd. Medium-Term Global Notes, 4.00%, 03/22/11		395,000		403,091
General Electric Capital Corp., Sr. Unsec. Global Notes, 5.90%, 05/13/14		1,465,000		1,619,974
Sr. Unsec. Medium-Term Global Notes, 5.50%, 01/08/20		950,000		1,007,099
JPMorgan Chase & Co., Sr. Unsec. Global Notes, 4.75%, 05/01/13		1,280,000		1,367,348
Sr. Unsec. Notes, 3.40%, 06/24/15		1,530,000		1,534,131
4.95%, 03/25/20		475,000		493,196
Merrill Lynch & Co. Inc., Sr. Unsec. Medium-Term Notes, 6.88%, 04/25/18		860,000		920,992
Twin Reefs Pass-Through Trust, Floating Rate Pass Through Ctfs., 1.39% (Acquired 12/07/04-10/23/06; Cost $1,609,000)(c)(d)(e)(f)		1,610,000		5,233
				13,284,259
Packaged Foods & Meats–0.20%
Grupo Bimbo SAB de CV (Mexico), Sr. Unsec. Gtd. Notes, 4.88%, 06/30/20(c)		500,000		504,367
Kraft Foods Inc., Sr. Unsec. Global Notes, 5.63%, 11/01/11		620,000		653,059
				1,157,426
Paper Packaging–0.15%
Bemis Co. Inc., Sr. Unsec. Notes, 5.65%, 08/01/14		800,000		883,364
Paper Products–0.10%
International Paper Co., Sr. Unsec. Global Bonds, 7.50%, 08/15/21		475,000		554,962
Pharmaceuticals–0.13%
Abbott Laboratories, Sr. Unsec. Global Notes, 2.70%, 05/27/15		750,000		766,891
Property & Casualty Insurance–0.08%
CNA Financial Corp., Sr. Unsec. Notes, 7.35%, 11/15/19		425,000		455,998
Publishing–0.16%
Reed Elsevier Capital Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 08/01/11		860,000		909,180
Regional Banks–0.16%
PNC Funding Corp., Sr. Unsec. Gtd. Global Notes, 3.63%, 02/08/15		890,000		914,501
Research & Consulting Services–0.17%
ERAC USA Finance LLC, Sr. Gtd. Notes, 2.75%, 07/01/13(c)		480,000		482,904
Unsec. Gtd. Notes, 5.80%, 10/15/12(c)		490,000		532,353
				1,015,257

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

8        Invesco Basic Balanced Fund

	Principal
	Amount		Value
Retail REIT’s–0.11%
WT Finance Aust Pty Ltd./ Westfield Capital/WEA Finance LLC (Australia), Sr. Unsec. Gtd. Notes, 4.38%, 11/15/10(c)	$	650,000	$	656,510
Sovereign Debt–0.13%
Russian Foreign Bond (Russia), Sr. Unsec. Euro Bonds, 3.63%, 04/29/15(c)		800,000		775,500
Specialized Finance–0.24%
NASDAQ OMX Group Inc. (The), Sr. Unsec. Notes, 5.55%, 01/15/20		950,000		973,544
National Rural Utilities Cooperative Finance Corp., Sr. Sec. Notes, 2.63%, 09/16/12		440,000		450,951
				1,424,495
Specialized REIT’s–0.17%
Healthcare Realty Trust Inc., Sr. Unsec. Notes, 6.50%, 01/17/17		950,000		1,000,065
Steel–0.24%
ArcelorMittal (Luxembourg), Sr. Unsec. Global Bonds, 9.00%, 02/15/15		390,000		461,025
Sr. Unsec. Global Notes, 7.00%, 10/15/39		910,000		959,568
				1,420,593
Technology Distributors–0.16%
Avnet Inc., Sr. Unsec. Notes, 5.88%, 06/15/20		950,000		962,008
Tobacco–0.13%
Altria Group Inc., Sr. Unsec. Gtd. Global Notes, 4.13%, 09/11/15		715,000		730,038
Trading Companies & Distributors–0.08%
GATX Corp., Sr. Unsec. Notes, 4.75%, 10/01/12		450,000		473,416
Wireless Telecommunication Services–0.20%
American Tower Corp., Sr. Unsec. Global Notes, 4.63%, 04/01/15		670,000		696,102
Vodafone Group PLC (United Kingdom), Sr. Unsec. Global Notes, 5.50%, 06/15/11		440,000		457,799
				1,153,901
Total Bonds & Notes (Cost $71,274,529)				72,697,834
U.S. Government Sponsored Agency Mortgage-Backed Securities–9.05%
Federal Home Loan Mortgage Corp. (FHLMC)–3.14%
Pass Through Ctfs., 5.50%, 02/01/15 to 02/01/37		8,362,104		9,016,251
7.00%, 06/01/15 to 06/01/32		2,239,735		2,522,603
6.50%, 01/01/16 to 01/01/35		1,429,627		1,574,796
6.00%, 03/01/17 to 01/01/34		2,109,047		2,297,927
4.50%, 10/01/18		149,922		160,011
8.00%, 01/01/27		378,249		436,043
7.50%, 12/01/30 to 03/01/32		229,908		263,521
5.00%, 10/01/33		172,548		183,447
Pass Through Ctfs., TBA, 6.00%, 07/01/40(g)		1,700,000		1,845,297
				18,299,896
Federal National Mortgage Association (FNMA)–4.97%
Pass Through Ctfs., 7.50%, 11/01/15 to 05/01/32		1,524,665		1,757,756
7.00%, 12/01/15 to 09/01/32		1,471,680		1,647,011
6.50%, 05/01/16 to 01/01/37		790,560		877,289
5.00%, 11/01/17 to 11/01/18		957,301		1,029,771
5.50%, 03/01/21 to 11/01/33		148,541		160,227
8.00%, 08/01/21 to 10/01/30		271,503		312,091
6.00%, 03/01/22 to 03/01/37		72,866		79,051
8.50%, 01/01/23 to 10/01/28		564,647		654,203
Pass Through Ctfs., TBA, 4.00%, 07/01/25(g)		1,000,000		1,039,062
4.50%, 07/01/25(g)		2,500,000		2,637,890
5.00%, 07/01/25 to 07/01/40(g)		10,270,000		10,868,725
5.50%, 07/01/25 to 07/01/40(g)		3,350,000		3,598,892
6.00%, 07/01/40(g)		4,000,000		4,338,752
				29,000,720
Government National Mortgage Association (GNMA)–0.94%
Pass Through Ctfs., 5.00%, 03/15/18		820,529		884,721
8.00%, 08/15/22 to 01/20/31		281,386		324,970
7.50%, 06/15/23 to 05/15/32		628,797		715,744
8.50%, 11/15/24 to 02/15/25		31,598		36,728
6.00%, 03/15/29 to 11/15/32		282,099		312,323
7.00%, 02/15/31 to 05/15/32		405,263		460,787
6.50%, 03/15/31 to 02/15/37		2,289,359		2,556,717
5.50%, 09/15/33 to 05/15/35		152,858		166,121
				5,458,111
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $50,563,093)				52,758,727

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

9        Invesco Basic Balanced Fund

	Principal
	Amount		Value
Asset-Backed Securities–6.30%
Accredited Mortgage Loan Trust–Series 2003-3, Class A3, Floating Rate Pass Through Ctfs., 0.73%, 01/25/34(d)	$	106,844	$	73,640
BA Credit Card Trust–Series 2010-A1, Class A1, Floating Rate Pass Through Ctfs., 0.65%, 09/15/15(d)		850,000		848,306
Banc of America Mortgage Securities Inc.–Series 2003-D, Class 2A1, Floating Rate Pass Through Ctfs., 2.96%, 05/25/33(d)		340,163		338,498
Bear Stearns Adjustable Rate Mortgage Trust–Series 2003-6, Class 1A3, Variable Rate Pass Through Ctfs., 2.70%, 08/25/33(d)		688,118		629,386
Bear Stearns Commercial Mortgage Securities, Series 2004-PWR6, Class A6, Pass Through Ctfs., 4.83%, 11/11/41		235,000		245,625
Series 2005-PWR8, Class A4, Pass Through Ctfs., 4.67%, 06/11/41		2,205,000		2,285,592
Series 2006-PW11, Class A4, Variable Rate Pass Through Ctfs., 5.46%, 03/11/39(d)		1,465,000		1,558,746
Series 2006-T24, Class A4, Pass Through Ctfs., 5.54%, 10/12/41		1,185,000		1,245,573
Chase Issuance Trust, Series 2007-A17, Class A, Pass Through Ctfs., 5.12%, 10/15/14		1,190,000		1,293,317
Series 2009-A3, Class A3, Pass Through Ctfs., 2.40%, 06/17/13		525,000		532,563
Citibank Credit Card Issuance Trust–Series 2009-A5, Class A5, Pass Through Ctfs., 2.25%, 12/23/14		800,000		814,762
Citigroup Mortgage Loan Trust Inc.–Series 2004-UST1, Class A4, Variable Rate Pass Through Ctfs., 2.49%, 08/25/34(d)		1,861,517		1,903,985
Countrywide Asset-Backed Ctfs.–Series 2004-6, Class 2A5, Floating Rate Pass Through Ctfs., 0.74%, 11/25/34(d)		336,932		283,939
Credit Suisse First Boston Mortgage Securities Corp., Series 2004-AR3, Class 5A1, Variable Rate Pass Through Ctfs., 2.82%, 04/25/34(d)		480,809		437,693
Series 2004-AR7, Class 2A1, Variable Rate Pass Through Ctfs., 2.88%, 11/25/34(d)		541,774		518,574
Series 2004-C4, Class A6, Pass Through Ctfs., 4.69%, 10/15/39		2,850,000		2,904,992
Credit Suisse Mortgage Capital Ctfs.–Series 2010-6R, Class 1A1, Pass Through Ctfs., 5.50%, 02/27/37(c)		1,390,126		1,431,595
GS Mortgage Securities Corp. II–Series 2005-GG4, Class A4A, Pass Through Ctfs., 4.75%, 07/10/39		1,205,000		1,248,202
GSR Mortgage Loan Trust–Series 2004-5, Class 2A1, Variable Rate Pass Through Ctfs., 2.88%, 05/25/34(d)		372,061		314,753
Honda Auto Receivables Owner Trust–Series 2009-2, Class A3, Pass Through Ctfs., 2.79%, 01/15/13		955,000		971,996
LB-UBS Commercial Mortgage Trust–Series 2001-WM, Class A2, Pass Through Ctfs., 6.53%, 07/14/16(c)		835,000		865,787
MLCC Mortgage Investors Inc.–Series 2003-G, Class A1, Floating Rate Pass Through Ctfs., 0.67%, 01/25/29(d)		466,596		367,847
Morgan Stanley Capital I, Series 2005-HQ7, Class A4, Variable Rate Pass Through Ctfs., 5.21%, 11/14/42(d)		645,000		688,912
Series 2005-T19, Class A4A, Pass Through Ctfs., 4.89%, 06/12/47		1,500,000		1,590,428
Series 2008-T29, Class A1, Pass Through Ctfs., 6.23%, 01/11/43		926,442		981,904
Morgan Stanley Mortgage Loan Trust–Series 2004-6AR, Class 2A2, Variable Rate Pass Through Ctfs., 2.94%, 08/25/34(d)		286,697		249,036
Nomura Asset Acceptance Corp.–Series 2005-AR1, Class 2A1, Floating Rate Pass Through Ctfs., 0.63%, 02/25/35(d)		34,358		29,189
Option One Mortgage Securities Corp.–Series 2007-4A, Floating Rate Notes, 0.45%, 04/25/12(c)(d)		839,196		629,397
Specialty Underwriting & Residential Finance–Series 2003-BC3, Class A, Floating Rate Pass Through Ctfs., 1.05%, 08/25/34(d)		8,370		6,649
Structured Adjustable Rate Mortgage Loan Trust–Series 2004-3AC, Class A1, Floating Rate Pass Through Ctfs., 2.61%, 03/25/34(d)		686,504		676,116
Structured Asset Securities Corp., Series 2003-37A, Class 7A, Variable Rate Pass Through Ctfs., 2.94%, 12/25/33(d)		208,122		170,731
Series 2004-2AC, Class A1, Floating Rate Pass Through Ctfs., 2.47%, 02/25/34(d)		1,275,227		1,137,938
TIAA Seasoned Commercial Mortgage Trust–Series 2007-C4, Class A2, Variable Rate Pass Through Ctfs., 5.79%, 08/15/39(d)		525,000		552,468
USAA Auto Owner Trust–Series 2009-1, Class A3, Pass Through Ctfs., 3.02%, 06/17/13		1,550,000		1,574,766
Vanderbilt Mortgage Finance–Series 2002-B, Class A4, Pass Through Ctfs., 5.84%, 02/07/26		894,386		911,537
Wachovia Bank Commercial Mortgage Trust, Series 2005-C18, Class A4, Pass Through Ctfs., 4.94%, 04/15/42		2,080,000		2,192,065
Series 2005-C21, Class AJ, Variable Rate Pass Through Ctfs., 5.21%, 10/15/44(d)		685,000		615,382
Series 2005-C21, Class AM, Variable Rate Pass Through Ctfs., 5.21%, 10/15/44(d)		810,000		788,516
WaMu Mortgage Pass Through Ctfs.–Series 2003-AR8, Class A, Floating Rate Pass Through Ctfs., 2.82%, 08/25/33(d)		1,412,544		1,415,006
Wells Fargo Mortgage Backed Securities Trust–Series 2004-Z, Class 2A1, Floating Rate Pass Through Ctfs., 2.97%, 12/25/34(d)		1,485,403		1,388,829
Total Asset-Backed Securities (Cost $35,064,020)				36,714,240

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

10        Invesco Basic Balanced Fund

	Principal
	Amount		Value
U.S. Treasury Securities–6.15%
U.S. Treasury Notes–4.62%
0.75%, 05/31/12	$	17,760,000	$	17,811,338
2.13%, 05/31/15		4,445,000		4,521,398
3.63%, 08/15/19(h)		2,800,000		2,960,125
3.50%, 05/15/20		1,560,000		1,632,394
				26,925,255
U.S. Treasury Bonds–1.53%
5.38%, 02/15/31		5,205,000		6,401,337
4.50%, 08/15/39		1,060,000		1,167,490
4.38%, 05/15/40		1,280,000		1,384,200
				8,953,027
Total U.S. Treasury Securities (Cost $35,206,227)				35,878,282
Municipal Obligations–0.09%
New York City Municipal Water Finance Authority (Taxable Build America Bonds); Series 2010 GG, Water & Sewer System Second General Resolution RB, 5.72%, 06/15/42 (Cost $500,000)		500,000		521,400
	Shares
Money Market Funds–2.98%
Liquid Assets Portfolio–Institutional Class(i)		8,678,084		8,678,084
Premier Portfolio–Institutional Class(i)		8,678,084		8,678,084
Total Money Market Funds (Cost $17,356,168)				17,356,168
TOTAL INVESTMENTS–103.33% (Cost $603,547,996)				602,498,278
OTHER ASSETS LESS LIABILITIES–(3.33)%				(19,389,638	)
NET ASSETS–100.00%			$	583,108,640

Investment Abbreviations:

ADR	– American Depositary Receipt
Ctfs.	– Certificates
Deb.	– Debentures
Gtd.	– Guaranteed
RB	– Revenue Bonds
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
TBA	– To Be Announced
Unsec.	– Unsecured
Unsub.	– Unsubordinated

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2010 was $16,038,402, which represented 2.75% of the Fund’s Net Assets.
(d)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2010.
(e)	Perpetual bond with no specified maturity date.
(f)	Defaulted security. Currently, the issuer is fully in default with respect to interest payments. The value of this security at June 30, 2010 represented less than 0.01% of the Fund’s Net Assets.
(g)	Security purchased on forward commitment basis. This security is subject to dollar roll transactions. See Note 1I.
(h)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L and Note 4.
(i)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By security type, based on total investments

as of June 30, 2010

Common Stocks & Other Equity Interests	64.2	%
Bonds & Notes	12.1
U.S. Government Sponsored Agency Mortgage-Backed Securities	8.7
Asset-Backed Securities	6.1
U.S. Treasury Securities	5.9
Municipal Obligations	0.1
Money Market Funds	2.9

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

11        Invesco Basic Balanced Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $586,191,828)	$	585,142,110
Investments in affiliated money market funds, at value and cost		17,356,168
Total investments, at value (Cost $603,547,996)		602,498,278
Foreign currencies, at value (Cost $235,519)		224,160
Receivables for:
Investments sold		279,134,347
Investments sold to affiliates		27,830,913
Variation margin		21,078
Fund shares sold		68,600
Dividends and interest		1,938,838
Investment for trustee deferred compensation and retirement plans		203,162
Other assets		38,852
Total assets		911,958,228
Liabilities:
Payables for:
Investments purchased		288,693,781
Investments purchased from affiliates		37,331,984
Fund shares reacquired		1,692,070
Amount due custodian		15,062
Accrued fees to affiliates		545,574
Accrued other operating expenses		155,469
Trustee deferred compensation and retirement plans		415,648
Total liabilities		328,849,588
Net assets applicable to shares outstanding	$	583,108,640
Net assets consist of:
Shares of beneficial interest	$	774,137,814
Undistributed net investment income		(63,386	)
Undistributed net realized gain (loss)		(189,844,733	)
Unrealized appreciation (depreciation)		(1,121,055	)
	$	583,108,640
Net Assets:
Class A	$	360,490,222
Class B	$	47,987,967
Class C	$	57,512,778
Class R	$	6,831,642
Class Y	$	1,731,220
Investor Class	$	108,155,949
Institutional Class	$	398,862
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		37,644,270
Class B		5,021,843
Class C		6,015,449
Class R		713,566
Class Y		180,801
Investor Class		11,296,248
Institutional Class		41,700
Class A:
Net asset value per share	$	9.58
Maximum offering price per share
(Net asset value of $9.58 divided by 94.50%)	$	10.14
Class B:
Net asset value and offering price per share	$	9.56
Class C:
Net asset value and offering price per share	$	9.56
Class R:
Net asset value and offering price per share	$	9.57
Class Y:
Net asset value and offering price per share	$	9.58
Investor Class:
Net asset value and offering price per share	$	9.57
Institutional Class:
Net asset value and offering price per share	$	9.57

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

12        Invesco Basic Balanced Fund

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Interest	$	3,903,954
Dividends (net of foreign withholding taxes of $102,175)		3,181,259
Dividends from affiliated money market funds		15,499
Total investment income		7,100,712
Expenses:
Advisory fees		1,745,224
Administrative services fees		104,901
Custodian fees		21,046
Distribution fees:
Class A		499,886
Class B		292,667
Class C		323,994
Class R		16,866
Investor Class		151,919
Transfer agent fees — A, B, C, R, Y and Investor		1,084,481
Transfer agent fees — Institutional		202
Trustees’ and officers’ fees and benefits		18,899
Other		163,185
Total expenses		4,423,270
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(26,372	)
Net expenses		4,396,898
Net investment income		2,703,814
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $5,647,990)		(6,753,802	)
Foreign currencies		(151,557	)
Futures contracts		275,615
		(6,629,744	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(39,485,905	)
Foreign currencies		(198,657	)
Futures contracts		(109,544	)
		(39,794,106	)
Net realized and unrealized gain (loss)		(46,423,850	)
Net increase (decrease) in net assets resulting from operations	$	(43,720,036	)

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

13        Invesco Basic Balanced Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	2,703,814		$	9,775,910
Net realized gain (loss)		(6,629,744	)		(92,663,771	)
Change in net unrealized appreciation (depreciation)		(39,794,106	)		265,675,051
Net increase (decrease) in net assets resulting from operations		(43,720,036	)		182,787,190
Distributions to shareholders from net investment income:
Class A		(1,964,631	)		(6,968,869	)
Class B		(71,350	)		(824,014	)
Class C		(81,421	)		(730,313	)
Class R		(26,021	)		(94,295	)
Class Y		(9,589	)		(19,477	)
Investor Class		(595,914	)		(2,217,592	)
Institutional Class		(3,053	)		(8,543	)
Total distributions from net investment income		(2,751,979	)		(10,863,103	)
Share transactions–net:
Class A		(21,465,257	)		(42,579,762	)
Class B		(12,792,210	)		(32,165,678	)
Class C		(4,742,844	)		(11,507,295	)
Class R		1,011,265			(354,372	)
Class Y		740,620			311,404
Investor Class		(10,400,232	)		(17,598,982	)
Institutional Class		55,415			(38,012	)
Net increase (decrease) in net assets resulting from share transactions		(47,593,243	)		(103,932,697	)
Net increase (decrease) in net assets		(94,065,258	)		67,991,390
Net assets:
Beginning of period		677,173,898			609,182,508
End of period (includes undistributed net investment income of $(63,386) and $(15,221), respectively)	$	583,108,640		$	677,173,898

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

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

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

  The Fund currently consists of seven different classes of shares: Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class. Investor Class shares of the Fund are offered only to certain grandfathered investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class R, Class Y, Investor Class and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

14        Invesco Basic Balanced Fund

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

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

15        Invesco Basic Balanced Fund

	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income are declared and paid quarterly and are recorded on ex-dividend date. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Dollar Roll and Forward Commitment Transactions — The Fund may engage in dollar roll and forward commitment transactions with respect to mortgage-backed securities issued by GNMA, FNMA and FHLMC. These transactions are often conducted on a to be announced (“TBA”) basis. In a TBA mortgage-backed transaction, the seller does not specify the particular securities to be delivered. Rather, a Fund agrees to accept any security that meets specified terms, such as an agreed upon issuer, coupon rate and terms of the underlying mortgages. TBA mortgage-backed transactions generally settle once a month on a specific date.
	In a dollar roll transaction, the Fund sells a mortgage-backed security held in the Fund to a financial institution such as a bank or broker-dealer, and simultaneously agrees to purchase a substantially similar security (same type, coupon and maturity) from the institution at an agreed upon price and future date. The mortgage-backed securities to be purchased will bear the same coupon as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. Based on the typical structure of dollar roll transactions by the Fund, the dollar roll transactions are accounted for as financing transactions in which the Fund receives compensation as either a “fee” or a “drop”. “Fee” income which is agreed upon amongst the parties at the commencement of the dollar roll and the “drop” which is the difference between the selling price and the repurchase price of the mortgage-backed securities are amortized to income. During the period between the sale and purchase settlement dates, the Fund will not be entitled to receive interest and principal payments on securities purchased and not yet settled. Proceeds of the sale may be invested in short-term instruments, and the income from these investments, together with any additional fee income received on the sale, could generate income for the Fund exceeding the yield on the security sold. Dollar roll transactions are considered borrowings under the 1940 Act.
	Forward commitment transactions involve commitments by the Fund to acquire or sell TBA mortgage-backed securities from/to a financial institution, such as a bank or broker-dealer at a specified future date and amount. The TBA mortgage-backed security is marked to market until settlement and the unrealized appreciation or depreciation is recorded in the statement of operations.
	At the time the Fund enters into the dollar roll or forward commitment transaction, mortgage-backed securities or other liquid assets held by the Fund having a dollar value equal to the purchase price or in an amount sufficient to honor the forward commitment will be segregated.
	Dollar roll transactions involve the risk that the market value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement. In the event that the buyer of securities in a dollar roll transaction files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds from the sale of the securities may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the securities. The return earned by the Fund with the proceeds of the dollar roll transaction may not exceed the return on the securities sold.
	Forward commitment transactions involve the risk that a counter-party to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Settlement dates of forward commitment transactions may be a month

16        Invesco Basic Balanced Fund

	or more after entering into these transactions and as a result the market values of the securities may vary from the purchase or sale prices. Therefore, forward commitment transactions may increase the Fund’s overall interest rate exposure.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
L.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
M.	Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $150 million		0	.65%
Next $1.85 billion		0	.50%
Next $2 billion		0	.45%
Next $2 billion		0	.40%
Next $2 billion		0	.375%
Over $8 billion		0	.35%

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

17        Invesco Basic Balanced Fund

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares to 2.00%, 2.75%, 2.75%, 2.25%, 1.75%, 2.00% and 1.75%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under the expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $22,481.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended June 30, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $1,028.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IADI”) to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C, Class R and Investor Class shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IDI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended June 30, 2010, IDI advised the Fund that IDI retained $19,553 in front-end sales commissions from the sale of Class A shares and $0, $38,037 and $597 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information

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

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

18        Invesco Basic Balanced Fund

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	395,677,312	$	8,250,483	$	—	$	403,927,795
U.S. Treasury Securities		—		35,878,282		—		35,878,282
U.S. Government Sponsored Agency Securities		—		52,758,727		—		52,758,727
Corporate Debt Securities		—		71,922,334		—		71,922,334
Asset-Backed Securities		—		36,714,240		—		36,714,240
Municipal Obligations		—		521,400		—		521,400
Foreign Government Debt Securities		—		775,500		—		775,500
	$	395,677,312	$	206,820,966	$	—	$	602,498,278
Futures*		130,105		—		—		130,105
Total Investments	$	395,807,417	$	206,820,966	$	—	$	602,628,383

*  Unrealized appreciation.

NOTE 4—Derivative Investments

The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	191,384	$	(61,279	)

^(a) Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain on
	Statement of Operations
	Futures*
Realized Gain
Interest rate risk	$	275,615
Change in Unrealized Appreciation (Depreciation)
Interest rate risk		(109,544	)
Total	$	166,071

*  The average value of futures outstanding during the period was $32,909,441.

Open Futures Contracts
								Unrealized
	Number of		Month/					Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)
Ultra U.S. Treasury Bonds		30		September-2010/Long	$	4,074,375		$	190,013
U.S. Treasury 2 Year Notes		2		September-2010/Long		437,656			1,371
Subtotal					$	4,512,031		$	191,384
U.S. Treasury 10 Year Notes		13		September-2010/Short		(1,593,109	)		(25,012	)
U.S. Treasury 30 Year Bonds		8		September-2010/Short		(1,020,000	)		(36,267	)
Subtotal					$	(2,613,109	)	$	(61,279	)
Total					$	1,898,922		$	130,105

19        Invesco Basic Balanced Fund

NOTE 5—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $46,368,155 and securities sales of $34,062,496, which resulted in net realized gains of $5,647,990.

NOTE 6—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended June 30, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,863.

NOTE 7—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $2,087 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 8—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 9—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	74,369,782
December 31, 2017		90,435,435
Total capital loss carryforward	$	164,805,217

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

20        Invesco Basic Balanced Fund

NOTE 10—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $440,440,640 and $500,388,989, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	15,781,720
Aggregate unrealized (depreciation) of investment securities		(32,157,445	)
Net unrealized appreciation (depreciation) of investment securities	$	(16,375,725	)
Cost of investments for tax purposes is $618,874,003.

NOTE 11—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		1,121,364		$	11,835,776			2,682,119		$	23,369,070
Class B		234,463			2,467,572			595,023			5,052,156
Class C		172,207			1,800,681			437,534			3,670,788
Class R		177,520			1,912,355			177,245			1,543,394
Class Y		77,128			832,452			68,661			587,535
Investor Class		321,399			3,375,634			915,160			7,823,072
Institutional Class		6,711			72,811			7,335			55,854
Issued as reinvestment of dividends:
Class A		175,642			1,839,732			788,628			6,538,844
Class B		6,609			68,776			101,123			790,840
Class C		7,200			74,927			83,670			662,681
Class R		2,489			26,012			11,439			94,175
Class Y		822			8,567			2,002			17,049
Investor Class		54,408			569,969			257,654			2,129,000
Institutional Class		292			3,053			1,017			8,543
Automatic conversion of Class B shares to Class A shares:
Class A		950,220			9,983,453			2,681,447			22,636,392
Class B		(952,683	)		(9,983,453	)		(2,685,001	)		(22,636,392	)
Reacquired:
Class A		(4,306,749	)		(45,124,218	)		(11,271,472	)		(95,124,068	)
Class B		(510,715	)		(5,345,105	)		(1,869,161	)		(15,372,282	)
Class C		(634,649	)		(6,618,452	)		(1,862,197	)		(15,840,764	)
Class R		(86,229	)		(927,102	)		(219,202	)		(1,991,941	)
Class Y		(9,654	)		(100,399	)		(33,085	)		(293,180	)
Investor Class		(1,384,424	)		(14,345,835	)		(3,181,406	)		(27,551,054	)
Institutional Class		(1,902	)		(20,449	)		(12,811	)		(102,409	)
Net increase (decrease) in share activity		(4,578,531	)	$	(47,593,243	)		(12,324,278	)	$	(103,932,697	)

^(a) There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 8% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by this entity are also owned beneficially.

21        Invesco Basic Balanced Fund

NOTE 12—Financial Highlights

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

																						Ratio of			Ratio of
																						expenses			expenses
						Net gains																to average			to average net			Ratio of net
	Net asset					(losses) on						Dividends										net assets			assets without			investment
	value,		Net			securities (both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment			realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income			unrealized)			operations			income			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Class A
Six months ended 06/30/10	$	10.34	$	0.05	(c)	$	(0.76	)	$	(0.71	)	$	(0.05	)	$	9.58		(6.89	)%	$	360,490		1.20	%(d)		1.21	%(d)		0.97	%(d)		75	%
Year ended 12/31/09		7.83		0.15	(c)		2.53	(e)		2.68			(0.17	)		10.34		34.88	(e)		410,690		1.31			1.32			1.74			54
Year ended 12/31/08		13.27		0.32	(c)		(5.38	)		(5.06	)		(0.38	)		7.83		(38.72	)		351,046		1.20			1.20			2.86			50
Year ended 12/31/07		13.26		0.29	(c)		0.04			0.33			(0.32	)		13.27		2.46			676,945		1.08			1.08			2.14			44
Year ended 12/31/06		12.25		0.24	(c)		1.05			1.29			(0.28	)		13.26		10.67			788,003		1.14			1.14			1.93			38
Year ended 12/31/05		11.86		0.16			0.41			0.57			(0.18	)		12.25		4.85			817,588		1.14			1.14			1.59			90
Class B
Six months ended 06/30/10		10.32		0.01	(c)		(0.76	)		(0.75	)		(0.01	)		9.56		(7.25	)		47,988		1.95	(d)		1.96	(d)		0.22	(d)		75
Year ended 12/31/09		7.82		0.09	(c)		2.51	(e)		2.60			(0.10	)		10.32		33.68	(e)		64,452		2.06			2.07			0.99			54
Year ended 12/31/08		13.24		0.24	(c)		(5.37	)		(5.13	)		(0.29	)		7.82		(39.14	)		78,959		1.95			1.95			2.11			50
Year ended 12/31/07		13.23		0.19	(c)		0.04			0.23			(0.22	)		13.24		1.69			241,041		1.83			1.83			1.39			44
Year ended 12/31/06		12.22		0.15	(c)		1.04			1.19			(0.18	)		13.23		9.86			358,655		1.89			1.89			1.18			38
Year ended 12/31/05		11.84		0.08			0.40			0.48			(0.10	)		12.22		4.04			517,032		1.88			1.88			0.85			90
Class C
Six months ended 06/30/10		10.33		0.01	(c)		(0.77	)		(0.76	)		(0.01	)		9.56		(7.34	)		57,513		1.95	(d)		1.96	(d)		0.22	(d)		75
Year ended 12/31/09		7.82		0.09	(c)		2.52	(e)		2.61			(0.10	)		10.33		33.81	(e)		66,828		2.06			2.07			0.99			54
Year ended 12/31/08		13.25		0.24	(c)		(5.38	)		(5.14	)		(0.29	)		7.82		(39.18	)		61,102		1.95			1.95			2.11			50
Year ended 12/31/07		13.24		0.19	(c)		0.04			0.23			(0.22	)		13.25		1.69			133,222		1.83			1.83			1.39			44
Year ended 12/31/06		12.23		0.15	(c)		1.04			1.19			(0.18	)		13.24		9.86			163,630		1.89			1.89			1.18			38
Year ended 12/31/05		11.85		0.08			0.40			0.48			(0.10	)		12.23		4.04			194,027		1.88			1.88			0.85			90
Class R
Six months ended 06/30/10		10.34		0.04	(c)		(0.77	)		(0.73	)		(0.04	)		9.57		(7.10	)		6,832		1.45	(d)		1.46	(d)		0.72	(d)		75
Year ended 12/31/09		7.83		0.13	(c)		2.53	(e)		2.66			(0.15	)		10.34		34.42	(e)		6,409		1.56			1.57			1.49			54
Year ended 12/31/08		13.26		0.29	(c)		(5.37	)		(5.08	)		(0.35	)		7.83		(38.83	)		5,090		1.45			1.45			2.61			50
Year ended 12/31/07		13.25		0.26	(c)		0.04			0.30			(0.29	)		13.26		2.20			10,959		1.33			1.33			1.89			44
Year ended 12/31/06		12.24		0.21	(c)		1.05			1.26			(0.25	)		13.25		10.40			7,293		1.39			1.39			1.68			38
Year ended 12/31/05		11.87		0.13			0.40			0.53			(0.16	)		12.24		4.47			6,684		1.38			1.38			1.35			90
Class Y
Six months ended 06/30/10		10.34		0.06	(c)		(0.76	)		(0.70	)		(0.06	)		9.58		(6.78	)		1,731		0.95	(d)		0.96	(d)		1.22	(d)		75
Year ended 12/31/09		7.83		0.18	(c)		2.52	(e)		2.70			(0.19	)		10.34		35.07	(e)		1,164		1.06			1.07			1.99			54
Year ended 12/31/08(f)		9.58		0.06	(c)		(1.69	)		(1.63	)		(0.12	)		7.83		(16.96	)		587		1.11	(g)		1.11	(g)		2.95	(g)		50
Investor Class
Six months ended 06/30/10		10.34		0.05	(c)		(0.77	)		(0.72	)		(0.05	)		9.57		(6.99	)		108,156		1.20	(d)		1.21	(d)		0.97	(d)		75
Year ended 12/31/09		7.83		0.15	((c)		2.53	(e)		2.68			(0.17	)		10.34		34.75	(e)		127,253		1.31			1.32			1.74			54
Year ended 12/31/08		13.27		0.32	(c)		(5.38	)		(5.06	)		(0.38	)		7.83		(38.72	)		112,077		1.20			1.20			2.86			50
Year ended 12/31/07		13.26		0.29	(c)		0.04			0.33			(0.32	)		13.27		2.46			226,893		1.08			1.08			2.14			44
Year ended 12/31/06		12.25		0.24	(c)		1.05			1.29			(0.28	)		13.26		10.67			288,522		1.14			1.14			1.93			38
Year ended 12/31/05(f)		11.97		0.09			0.30			0.39			(0.11	)		12.25		3.28			344,015		1.10	(g)		1.10	(g)		1.63	(g)		90
Institutional Class
Six months ended 06/30/10		10.33		0.08	(c)		(0.76	)		(0.68	)		(0.08	)		9.57		(6.68	)		399		0.72	(d)		0.73	(d)		1.45	(d)		75
Year ended 12/31/09		7.82		0.20	(c)		2.53	(e)		2.73			(0.22	)		10.33		35.52	(e)		378		0.76			0.77			2.29			54
Year ended 12/31/08		13.26		0.37	(c)		(5.38	)		(5.01	)		(0.43	)		7.82		(38.44	)		321		0.73			0.73			3.33			50
Year ended 12/31/07		13.25		0.34	(c)		0.04			0.38			(0.37	)		13.26		2.89			6,685		0.69			0.69			2.53			44
Year ended 12/31/06		12.24		0.30	(c)		1.05			1.35			(0.34	)		13.25		11.22			149		0.68			0.68			2.39			38
Year ended 12/31/05		11.86		0.22			0.40			0.62			(0.24	)		12.24		5.28			34		0.67			0.67			2.06			90

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $403,223, $59,018, $65,336, $6,802, $1,547, $122,542 and $407 for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares, respectively.
(e)	Includes litigation proceeds received during the period. Had the litigation proceeds not been received net gains on securities (both realized and unrealized) per share would have been $2.47, $2.44, $2.45, $2.46 $2.45 $2.46 and $2.46 for Class A, Class B, Class C, Class R, Class Y, Investor Class and Institutional Class shares, respectively and total return would have been lower.
(f)	Commencement date of October 3, 2008 and July 15, 2005 for Class Y and Investor Class shares, respectively.
(g)	Annualized.

22        Invesco Basic Balanced Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
A	$	1,000.00	$	930.20	$	5.74	$	1,018.84	$	6.01		1.20	%
B		1,000.00		927.50		9.32		1,015.12		9.74		1.95
C		1,000.00		926.60		9.31		1,015.12		9.74		1.95
R		1,000.00		929.00		6.94		1,017.60		7.25		1.45
Y		1,000.00		932.20		4.55		1,020.08		4.76		0.95
Investor		1,000.00		930.10		5.74		1,018.84		6.01		1.20
Institutional		1,000.00		933.20		3.45		1,021.22		3.61		0.72

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

23        Invesco Basic Balanced Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Funds Group (Invesco Funds Group) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Basic Balanced Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in

24        Invesco Basic Balanced Fund

considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Mixed-Asset Target Allocation Moderate Funds Index. The Board noted that the performance of Class A shares of the Fund was in the first quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A Shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board also noted that Invesco made manager and process changes related to the fixed income portion of the Fund’s portfolio assets in 2008 and early 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Class A shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

  The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including two mutual funds advised by Invesco Advisers. The Board noted that the Fund’s rate was: (i) below the effective fee rate for one mutual fund and (ii) above the effective fee rate for the other mutual fund, which is a fund of funds for which Invesco Advisers does not charge a separate advisory fee.

  Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive advisory fees of the Fund through December 31, 2012 and that this fee waiver includes breakpoints based on net asset levels. The Board considered the contractual nature of this fee waiver and noted that it remains in effect until December 31, 2012. The Board also considered the effect this fee waiver would have on the Fund’s total estimated expenses. The Board also noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above, the advisory fee after fee waivers and expense limitations and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes five breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for the research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

25        Invesco Basic Balanced Fund

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Invesco Privacy Policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important Notice Regarding Delivery of Security Holder Documents

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

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-01540 and 002-27334.

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

     Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

     If used after October 20, 2010, this report must be accompanied by a Quarterly Performance Review for the most recent quarter-end.

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

BBA-SAR-1      Invesco Distributors, Inc.

Invesco European Small Company Fund
Semiannual Report to Shareholders n June 30, 2010

2	Fund Performance
3	Letters to Shareholders
4	Schedule of Investments
6	Financial Statements
8	Notes to Financial Statements
14	Financial Highlights
15	Fund Expenses
16	Approval of Investment Advisory and Sub-Advisory Agreements

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data provided by Invesco.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	-9.11	%
Class B Shares	-9.52
Class C Shares	-9.51
Class Y Shares	-8.99
MSCI EAFE Index6 (Broad Market Index)	-13.23
MSCI Europe Small Cap Index6 (Style-Specific Index)	-10.97
Lipper European Funds Index6 (Peer Group Index)	-14.73

⁶ Lipper Inc.

The MSCI EAFE^® Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East.

     The MSCI Europe Small Cap Index is an unmanaged index considered representative of small-cap European stocks.

     The Lipper European Funds Index is an unmanaged index considered representative of European funds tracked by Lipper.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

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

Average Annual Total Returns

As of 6/30/10, including maximum applicable sales charges

Class A Shares
Inception (8/31/00)	9.26	%
5 Years	3.76
1 Year	5.71
Class B Shares
Inception (8/31/00)	9.26	%
5 Years	3.99
1 Year	5.88
Class C Shares
Inception (8/31/00)	9.10	%
5 Years	4.15
1 Year	9.86
Class Y Shares
Inception	9.94	%
5 Years	5.04
1 Year	12.06

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

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

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.82%, 2.57%, 2.57% and 1.57%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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

     A redemption fee of 2% will be imposed on certain redemptions or exchanges out of the Fund within 31 days of purchase. Exceptions to the redemption fee are listed in the Fund’s prospectus.

     Had the adviser not waived fees and/ or reimbursed expenses in the past, performance would have been lower.

2     Invesco European Small Company Fund

Letters to Shareholders

   Bruce Crockett

Dear Fellow Shareholders:

Although the global markets have improved since their lows of 2009, they remain challenging as governments around the world work to ensure the recovery remains on track. In this volatile environment, it’s comforting to know that your Board is committed to putting your interests first. We realize you have many choices when selecting a money manager, and your Board is working hard to ensure you feel you’ve made the right choice.

     To that end, I’m pleased to share the news that Invesco has completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments. This acquisition greatly expands the breadth and depth of investment strategies we can offer you. As a result of this combination, Invesco gained investment talent for a number of investment strategies, including U.S. value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key advantage of this combination is the highly complementary nature of our cultures. This is making it much easier to bring our organizations together while ensuring that our investment teams remain focused on managing your money.

     We view this addition as an excellent opportunity for you, our shareholders, to have access to an even broader range of well-diversified mutual funds. Now that the acquisition has closed, Invesco is working to bring the full value of the combined organization to shareholders. The key goals of this effort are to ensure that we have deeply resourced and focused investment teams, a compelling line of products and enhanced efficiency, which will benefit our shareholders now and over the long term.

     It might interest you to know that the mutual funds of the combined organization are overseen by a single fund Board composed of 17 current members, including four new members who joined us from Van Kampen/Morgan Stanley. This expanded Board will continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we have always maintained.

     As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair, Invesco Funds Board of Trustees

   Philip Taylor

Dear Shareholders:

I’m pleased to present this report on your Fund’s performance for the six months ended June 30, 2010. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, I’m glad you’re part of the Invesco family.

     At Invesco, we’re committed to providing you with timely information about market conditions, answering questions you may have about your investments and offering outstanding customer service. At our website, invesco.com/us, you can obtain unique market perspectives, useful investor education information and your Fund’s most recent quarterly commentary.

     I believe Invesco, as a leading global investment manager, is uniquely positioned to serve your needs.

     First, we are committed to investment excellence. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, each operating under a disciplined philosophy and process with strong risk oversight and quality controls.

     Second, we offer you a broad range of investment products that can be tailored to your needs and goals. These products include single-country, regional and global investment options spanning major equity, fixed income and alternative asset classes.

     And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do.

     If you have questions about your account, please contact one of our client services representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, please email me directly at phil@invesco.com.

     Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

3     Invesco European Small Company Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–91.96%
Austria–3.48%
Andritz AG		38,788	$	2,170,881
Semperit AG Holding		57,142		1,954,181
				4,125,062
Brazil–3.68%
Ocean Wilsons Holdings Ltd.		325,000		4,369,365
France–4.29%
Maisons France Confort		18,900		670,381
Sopra Group S.A.		9,300		597,350
Sword Group		78,300		2,361,206
Tessi S.A.		12,470		819,306
Trigano S.A.(a)		33,700		639,536
				5,087,779
Germany–5.94%
CTS Eventim AG		20,000		961,494
MorphoSys AG(a)		66,454		1,172,892
Takkt AG		129,903		1,339,946
Wirecard AG		419,819		3,571,695
				7,046,027
Greece–3.84%
Intralot S.A.		667,692		2,120,424
Jumbo S.A.		401,894		2,435,670
				4,556,094
Ireland–8.29%
CPL Resources PLC		582,792		1,817,673
DCC PLC		176,220		3,981,654
IFG Group PLC		742,000		1,034,953
Paddy Power PLC		96,665		3,005,431
				9,839,711
Israel–1.12%
VIZRT Ltd.(a)		438,105		1,333,079
Netherlands–3.09%
Mediq N.V.		104,860		1,916,703
Sligro Food Group N.V.		60,585		1,749,871
				3,666,574
Norway–3.54%
Prosafe S.E.		380,600		1,515,500
Q-Free A.S.A.(a)		372,000		1,029,030
TGS Nopec Geophysical Co. A.S.A.		145,526		1,664,145
				4,208,675
Singapore–0.84%
XP Power Ltd.		117,520		1,003,108
Spain–2.08%
Construcciones y Auxiliar de Ferrocarriles S.A.		1,907		771,372
Miquel y Costas & Miquel, S.A.		55,000		1,033,275
Prosegur, Compania de Seguridad S.A.		15,501		659,783
				2,464,430
Sweden–1.13%
Acando A.B.		392,522		648,486
Oriflame Cosmetics S.A.–SDR		13,341		692,824
				1,341,310
Switzerland–7.87%
Aryzta AG		71,194		2,686,863
Mobilezone Holding AG		414,689		3,514,692
Schweiter Technologies AG		6,227		3,136,328
				9,337,883
Turkey–1.47%
Yazicilar Holding A.S.–Class A		296,321		1,741,943
United Kingdom–41.30%
Alterian PLC(a)		454,593		1,048,890
Amlin PLC		362,057		2,081,476
Chemring Group PLC		61,727		2,708,840
CPP Group PLC(a)		304,500		1,124,050
Diploma PLC		508,327		1,718,661
Education Development International PLC		610,200		1,023,848
Game Group PLC		799,628		760,934
Halma PLC		531,497		2,159,583
Hargreaves Services PLC		51,288		429,038
Hill & Smith Holdings PLC		181,730		807,618
Homeserve PLC		124,452		3,689,662
IG Group Holdings PLC		327,151		2,040,966
Informa PLC		309,868		1,630,457
Intec Telecom Systems PLC		773,000		599,238
Kier Group PLC		263,548		3,783,236
Lancashire Holdings Ltd.		702,432		5,197,386
Mears Group PLC		612,962		2,206,904

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

4        Invesco European Small Company Fund

	Shares		Value
United Kingdom–(continued)
Mitie Group PLC		1,142,034	$	3,612,120
Morgan Sindall Group PLC		135,526		1,031,409
N Brown Group PLC		188,724		701,785
Playtech Ltd.		197,400		1,327,871
RSM Tenon Group PLC		1,574,000		1,008,101
Tribal Group PLC		750,000		666,114
Tullett Prebon PLC		233,200		1,094,279
Ultra Electronics Holdings PLC		162,818		3,712,276
VT Group PLC		248,053		2,856,911
				49,021,653
Total Common Stocks & Other Equity Interests (Cost $109,477,004)				109,142,693
Preferred Stocks–0.97%
Germany–0.97%
Fuchs Petrolub AG–Pfd. (Cost $452,140)		13,012		1,155,154
Money Market Funds–5.32%
Liquid Assets Portfolio–Institutional Class(b)		3,156,234		3,156,234
Premier Portfolio–Institutional Class(b)		3,156,234		3,156,234
Total Money Market Funds (Cost $6,312,468)				6,312,468
TOTAL INVESTMENTS–98.25% (Cost $116,241,612)				116,610,315
OTHER ASSETS LESS LIABILITIES–1.75%				2,071,472
NET ASSETS–100.00%			$	118,681,787

Investment Abbreviations:

Pfd.	– Preferred
SDR	– Swedish Depositary Receipt

Notes to Schedule of Investments:

(a)	Non-income producing security.
(b)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Industrials	39.2	%
Consumer Discretionary	17.5
Information Technology	14.5
Financials	9.6
Consumer Staples	4.3
Energy	2.7
Health Care	2.6
Materials	2.5
Money Market Funds Plus Other Assets Less Liabilities	7.1

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

5        Invesco European Small Company Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $109,929,144)	$	110,297,847
Investments in affiliated money market funds, at value and cost		6,312,468
Total investments, at value (Cost $116,241,612)		116,610,315
Foreign currencies, at value (Cost $1,891,541)		1,872,752
Receivables for:
Fund shares sold		39,990
Dividends		606,851
Investment for trustee deferred compensation and retirement plans		21,033
Other assets		42,904
Total assets		119,193,845
Liabilities:
Payables for:
Fund shares reacquired		293,399
Accrued fees to affiliates		99,169
Accrued other operating expenses		69,937
Trustee deferred compensation and retirement plans		49,553
Total liabilities		512,058
Net assets applicable to shares outstanding	$	118,681,787
Net assets consist of:
Shares of beneficial interest	$	123,570,036
Undistributed net investment income (loss)		(109,225	)
Undistributed net realized gain (loss)		(5,130,068	)
Unrealized appreciation		351,044
	$	118,681,787
Net Assets:
Class A	$	78,469,691
Class B	$	11,934,126
Class C	$	15,547,893
Class Y	$	12,730,077
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		8,736,395
Class B		1,408,856
Class C		1,833,378
Class Y		1,412,204
Class A:
Net asset value per share	$	8.98
Maximum offering price per share (Net asset value of $8.98 divided by 94.50%)	$	9.50
Class B:
Net asset value and offering price per share	$	8.47
Class C:
Net asset value and offering price per share	$	8.48
Class Y:
Net asset value and offering price per share	$	9.01

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

6        Invesco European Small Company Fund

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $200,733)	$	2,328,330
Dividends from affiliated money market funds		3,847
Total investment income		2,332,177
Expenses:
Advisory fees		640,480
Administrative services fees		24,795
Custodian fees		50,480
Distribution fees:
Class A		114,761
Class B		72,025
Class C		90,166
Transfer agent fees		221,282
Trustees’ and officers’ fees and benefits		11,218
Other		77,330
Total expenses		1,302,537
Less: Fees waived and expenses reimbursed		(6,311	)
Net expenses		1,296,226
Net investment income		1,035,951
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		12,545,837
Foreign currencies		(16,459	)
		12,529,378
Change in net unrealized appreciation (depreciation) of:
Investment securities		(26,115,500	)
Foreign currencies		(52,316	)
		(26,167,816	)
Net realized and unrealized gain (loss)		(13,638,438	)
Net increase (decrease) in net assets resulting from operations	$	(12,602,487	)

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

7        Invesco European Small Company Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	1,035,951		$	2,066,547
Net realized gain (loss)		12,529,378			(8,460,886	)
Change in net unrealized appreciation (depreciation)		(26,167,816	)		62,029,992
Net increase (decrease) in net assets resulting from operations		(12,602,487	)		55,635,653
Distributions to shareholders from net investment income:
Class A		—			(2,689,435	)
Class B		—			(230,553	)
Class C		—			(288,301	)
Class Y		—			(277,261	)
Total distributions from net investment income		—			(3,485,550	)
Share transactions–net:
Class A		(23,230,224	)		1,113,375
Class B		(2,876,908	)		(1,865,346	)
Class C		(3,288,374	)		(1,603,115	)
Class Y		1,469,233			2,435,580
Net increase (decrease) in net assets resulting from share transactions		(27,926,273	)		80,494
Net increase (decrease) in net assets		(40,528,760	)		52,230,597
Net assets:
Beginning of period		159,210,547			106,979,950
End of period (includes undistributed net investment income (loss) of $(109,225) and $(1,145,176), respectively)	$	118,681,787		$	159,210,547

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

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

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

  The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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

A.

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

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an

8        Invesco European Small Company Fund

	independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to

9        Invesco European Small Company Fund

	federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.935%
Next $250 million		0	.91%
Next $500 million		0	.885%
Next $1.5 billion		0	.86%
Next $2.5 billion		0	.835%
Next $2.5 billion		0	.81%
Next $2.5 billion		0	.785%
Over $10 billion		0	.76%

10        Invesco European Small Company Fund

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 2.25%, 3.00%, 3.00% and 2.00%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $6,109.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended June 30, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $202.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2010, the expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C and Class Y shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B and Class C shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of each class of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended June 30, 2010, IDI advised the Fund that IDI retained $10,980 in front-end sales commissions from the sale of Class A shares and $0, $10,677 and $2,454 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information

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

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

11        Invesco European Small Company Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1*		Level 2*		Level 3		Total
Austria	$	—	$	4,125,062	$	—	$	4,125,062
Brazil		4,369,365		—		—		4,369,365
France		670,381		4,417,398		—		5,087,779
Germany		—		8,201,181		—		8,201,181
Greece		—		4,556,094		—		4,556,094
Ireland		4,823,104		5,016,607		—		9,839,711
Israel		1,333,079		—		—		1,333,079
Netherlands		—		3,666,574		—		3,666,574
Norway		1,029,030		3,179,645		—		4,208,675
Singapore		—		1,003,108		—		1,003,108
Spain		1,693,058		771,372		—		2,464,430
Sweden		—		1,341,310		—		1,341,310
Switzerland		—		9,337,883		—		9,337,883
Turkey		—		1,741,943		—		1,741,943
United Kingdom		1,236,656		47,784,997		—		49,021,653
United States		6,312,468		—		—		6,312,468
Total Investments	$	21,467,141	$	95,143,174	$	—	$	116,610,315

*  Transfers occurred between Level 1 and Level 2 due to foreign fair value adjustments.

NOTE 4—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,458 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	17,626,909

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

12        Invesco European Small Company Fund

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $10,798,222 and $37,070,157, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	15,576,945
Aggregate unrealized (depreciation) of investment securities		(16,425,057	)
Net unrealized appreciation (depreciation) of investment securities	$	(848,112	)
Cost of investments for tax purposes is $117,458,427.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		749,476		$	7,299,306			6,829,118		$	61,823,438
Class B		70,258			645,548			371,242			2,947,316
Class C		87,089			807,198			553,893			4,760,636
Class Y		248,746			2,441,258			320,199			2,779,763
Issued as reinvestment of dividends:
Class A		—			—			263,280			2,551,375
Class B		—			—			23,805			218,527
Class C		—			—			29,723			273,154
Class Y		—			—			28,388			275,649
Automatic conversion of Class B shares to Class A shares:
Class A		80,153			767,264			209,797			1,602,675
Class B		(84,863	)		(767,264	)		(222,045	)		(1,602,675	)
Reacquired:(b)
Class A		(3,228,014	)		(31,296,794	)		(7,288,720	)		(64,864,113	)
Class B		(307,073	)		(2,755,192	)		(472,565	)		(3,428,514	)
Class C		(450,187	)		(4,095,572	)		(886,053	)		(6,636,905	)
Class Y		(100,745	)		(972,025	)		(70,092	)		(619,832	)
Net increase (decrease) in share activity		(2,935,160	)	$	(27,926,273	)		(310,030	)	$	80,494

(a)

There are entities that are a record owner of more than 5% of the outstanding shares of the Fund and own 18% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

(b)

Net of redemption fees of $4,425 and $8,489 allocated among the classes based on relative net assets of each class for the six months ended June 30, 2010 and the year ended December 31, 2009, respectively.

13        Invesco European Small Company Fund

NOTE 9—Financial Highlights

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

																												Ratio of			Ratio of
																												expenses			expenses
						Net gains																						to average			to average net			Ratio of net
	Net asset		Net			(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		investment			securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			income			gains			Distributions			of period(a)		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Class A
Six months ended 06/30/10	$	9.88	$	0.08	(d)	$	(0.98	)	$	(0.90	)	$	—		$	—		$	—		$	8.98		(9.11	)%	$	78,470		1.74	%(e)		1.75	%(e)		1.67	%(e)		8	%
Year ended 12/31/09		6.51		0.14	(d)		3.44			3.58			(0.21	)		—			(0.21	)		9.88		55.07			109,963		1.80			1.81			1.68			43
Year ended 12/31/08		22.87		0.35	(d)		(12.60	)		(12.25	)		(0.47	)		(3.63	)		(4.10	)		6.52		(52.80	)		72,544		1.63			1.64			1.92			18
Year ended 12/31/07		27.72		0.30	(d)		1.88			2.18			(0.43	)		(6.60	)		(7.03	)		22.87		7.88			281,248		1.43			1.45			0.97			20
Year ended 12/31/06		21.68		0.21			10.08			10.29			(0.27	)		(3.98	)		(4.25	)		27.72		48.07			360,688		1.54			1.57			0.67			35
Year ended 12/31/05		16.94		0.11	(d)		6.03			6.14			(0.07	)		(1.33	)		(1.40	)		21.68		36.48			286,882		1.63			1.68			0.57			72
Class B
Six months ended 06/30/10		9.35		0.04	(d)		(0.92	)		(0.88	)		—			—			—			8.47		(9.41	)		11,934		2.49	(e)		2.50	(e)		0.92	(e)		8
Year ended 12/31/09		6.17		0.07	(d)		3.24			3.31			(0.13	)		—			(0.13	)		9.35		53.73			16,178		2.55			2.56			0.93			43
Year ended 12/31/08		21.87		0.20	(d)		(11.98	)		(11.78	)		(0.28	)		(3.63	)		(3.91	)		6.18		(53.09	)		12,541		2.38			2.39			1.17			18
Year ended 12/31/07		26.73		0.06	(d)		1.83			1.89			(0.15	)		(6.60	)		(6.75	)		21.87		7.06			50,639		2.18			2.20			0.22			20
Year ended 12/31/06		21.02		(0.01	)		9.76			9.75			(0.06	)		(3.98	)		(4.04	)		26.73		46.98			64,827		2.29			2.32			(0.08	)		35
Year ended 12/31/05		16.52		(0.03	)(d)		5.86			5.83			—			(1.33	)		(1.33	)		21.02		35.51			51,108		2.35			2.38			(0.15	)		72
Class C
Six months ended 06/30/10		9.36		0.04	(d)		(0.92	)		(0.88	)		—			—			—			8.48		(9.40	)		15,548		2.49	(e)		2.50	(e)		0.92	(e)		8
Year ended 12/31/09		6.17		0.07	(d)		3.25			3.32			(0.13	)		—			(0.13	)		9.36		53.89			20,556		2.55			2.56			0.93			43
Year ended 12/31/08		21.88		0.20	(d)		(11.99	)		(11.79	)		(0.28	)		(3.63	)		(3.91	)		6.18		(53.15	)		15,453		2.38			2.39			1.17			18
Year ended 12/31/07		26.73		0.06	(d)		1.84			1.90			(0.15	)		(6.60	)		(6.75	)		21.88		7.10			58,252		2.18			2.20			0.22			20
Year ended 12/31/06		21.03		(0.01	)		9.75			9.74			(0.06	)		(3.98	)		(4.04	)		26.73		46.90			77,576		2.29			2.32			(0.08	)		35
Year ended 12/31/05		16.53		(0.03	)(d)		5.86			5.83			—			(1.33	)		(1.33	)		21.03		35.49			59,930		2.35			2.38			(0.15	)		72
Class Y
Six months ended 06/30/10		9.90		0.09	(d)		(0.98	)		(0.89	)		—			—			—			9.01		(8.99	)		12,730		1.49	(e)		1.50	(e)		1.92	(e)		8
Year ended 12/31/09		6.53		0.16	(d)		3.44			3.60			(0.23	)		—			(0.23	)		9.90		55.19			12,514		1.55			1.56			1.93			43
Year ended 12/31/08(f)		14.54		0.04	(d)		(3.95	)		(3.91	)		(0.47	)		(3.63	)		(4.10	)		6.53		(25.69	)		6,441		1.67	(g)		1.67	(g)		1.90	(g)		18

(a)	Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Calculated using average shares outstanding.
(e)	Ratios are annualized and based on average daily net assets (000’s omitted) of $92,569, $14,524, $18,183 and $12,860 for Class A, Class B, Class C and Class Y shares, respectively.
(f)	Commencement date of October 3, 2008
(g)	Annualized.

14        Invesco European Small Company Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Class A	$	1,000.00	$	908.90	$	8.24	$	1,016.17	$	8.70		1.74	%
Class B		1,000.00		904.80		11.76		1,012.45		12.42		2.49
Class C		1,000.00		904.90		11.76		1,012.45		12.42		2.49
Class Y		1,000.00		910.10		7.06		1,017.41		7.45		1.49

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

15        Invesco European Small Company Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Funds Group (Invesco Funds Group) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco European Small Company Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

  The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

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

16        Invesco European Small Company Fund

B.  Fund Performance

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

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper European Region Funds Index. The Board noted that the performance of Class A shares of the Fund was in the first quintile of its performance universe for the one and five year periods and the third quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was above the performance of the Index for the one and five year periods and below the performance of the Index for the three year period. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

  The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Class A shares of the Fund was above the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

  The Board noted that Affiliated Sub-Advisers and other Invesco Advisers’ affiliated investment advisers advise funds with comparable investment strategies in other jurisdictions; however, the Board did not consider comparisons of fees charged to those funds to be apt, as those fees may include more than investment management services.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

  The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

  The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

  The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

17        Invesco European Small Company Fund

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Important Notice Regarding Delivery of Security Holder Documents

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

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-01540 and 002-27334.

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

     Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

     If used after October 20, 2010, this report must be accompanied by a Quarterly Performance Review for the most recent quarter-end.

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

ESC-SAR-1          Invesco Distributors, Inc.

Invesco Global Core Equity Fund
Semiannual Report to Shareholders ■ June 30, 2010

2	Fund Performance
3	Letters to Shareholders
4	Schedule of Investments
7	Financial Statements
9	Notes to Financial Statements
16	Financial Highlights
17	Fund Expenses
18	Approval of Investment Advisory and Sub-Advisory Agreements

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data provided by Invesco.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	-12.62	%
Class B Shares	-12.89
Class C Shares	-12.96
Class Y Shares	-12.46
Institutional Class Shares	-12.29
MSCI World Index ▼ (Broad Market/Style-Specific Index)	-9.84
Lipper Global Large-Cap Core Funds Index ▼ (Peer Group Index)	-10.11

^▼    Lipper Inc.

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries.

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

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

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

Average Annual Total Returns

As of 6/30/10, including maximum applicable sales charges

Class A Shares
Inception (12/29/00)	2.56	%
5 Years	-2.71
1 Year	0.06

Class B Shares
Inception (12/29/00)	2.57	%
5 Years	-2.67
1 Year	0.15

Class C Shares
Inception (12/29/00)	2.45	%
5 Years	-2.35
1 Year	4.05

Class Y Shares
Inception	3.21	%
5 Years	-1.52
1 Year	6.15

Institutional Class Shares
Inception	3.46	%
5 Years	-1.06
1 Year	6.52

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Institutional Class shares incepted on October 25, 2005. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

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

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Institutional Class shares was 1.93%, 2.68%, 2.68%, 1.68% and 1.24%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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

     A redemption fee of 2% will be imposed on certain redemptions or exchanges out of the Fund within 31 days of purchase. Exceptions to the redemption fee are listed in the Fund’s prospectus.

     Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower.

2             Invesco Global Core Equity Fund

Letters to Shareholders

  Bruce Crockett

Dear Fellow Shareholders:

Although the global markets have improved since their lows of 2009, they remain challenging as governments around the world work to ensure the recovery remains on track. In this volatile environment, it’s comforting to know that your Board is committed to putting your interests first. We realize you have many choices when selecting a money manager, and your Board is working hard to ensure you feel you’ve made the right choice.

     To that end, I’m pleased to share the news that Invesco has completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments. This acquisition greatly expands the breadth and depth of investment strategies we can offer you. As a result of this combination, Invesco gained investment talent for a number of investment strategies, including U.S. value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key advantage of this combination is the highly complementary nature of our cultures. This is making it much easier to bring our organizations together while ensuring that our investment teams remain focused on managing your money.

     We view this addition as an excellent opportunity for you, our shareholders, to have access to an even broader range of well-diversified mutual funds. Now that the acquisition has closed, Invesco is working to bring the full value of the combined organization to shareholders. The key goals of this effort are to ensure that we have deeply resourced and focused investment teams, a compelling line of products and enhanced efficiency, which will benefit our shareholders now and over the long term.

     It might interest you to know that the mutual funds of the combined organization are overseen by a single fund Board composed of 17 current members, including four new members who joined us from Van Kampen/Morgan Stanley. This expanded Board will continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we have always maintained.

     As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair, Invesco Funds Board of Trustees

    Philip Taylor

Dear Shareholders:

I’m pleased to present this report on your Fund’s performance for the six months ended June 30, 2010. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, I’m glad you’re part of the Invesco family.

     At Invesco, we’re committed to providing you with timely information about market conditions, answering questions you may have about your investments and offering outstanding customer service. At our website, invesco.com/us, you can obtain unique market perspectives, useful investor education information and your Fund’s most recent quarterly commentary.

     I believe Invesco, as a leading global investment manager, is uniquely positioned to serve your needs.

     First, we are committed to investment excellence. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, each operating under a disciplined philosophy and process with strong risk oversight and quality controls.

     Second, we offer you a broad range of investment products that can be tailored to your needs and goals. These products include single-country, regional and global investment options spanning major equity, fixed income and alternative asset classes.

     And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do.

     If you have questions about your account, please contact one of our client services representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, please email me directly at phil@invesco.com.

     Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

3             Invesco Global Core Equity Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.70%
Australia–4.48%
Australia and New Zealand Banking Group Ltd.		34,753	$	623,557
BHP Billiton Ltd.		41,326		1,284,545
Macquarie Group Ltd.		18,586		571,659
Telstra Corp. Ltd.		277,871		755,681
				3,235,442
Bermuda–0.95%
PartnerRe Ltd.		9,743		683,374
Brazil–0.92%
Banco Santander Brasil S.A.(a)(b)		7,900		81,398
Banco Santander Brasil S.A.(a)		5,100		52,548
Companhia Energetica de Minas Gerais S.A.–ADR		7,719		113,238
PDG Realty S.A. Empreendimentos e Participacoes		15,700		131,500
Petroleo Brasileiro S.A.–ADR		4,662		160,000
Vale S.A.–ADR		5,210		126,864
				665,548
Canada–5.22%
Agrium Inc.		16,279		795,291
EnCana Corp.		21,275		645,606
Intact Financial Corp.		19,910		839,871
Nexen Inc.		31,629		622,239
Toronto-Dominion Bank (The)		13,324		865,860
				3,768,867
China–0.58%
China Construction Bank Corp.–Class H		107,000		86,105
CNOOC Ltd.		82,575		140,762
Renhe Commercial Holdings Co. Ltd.		322,000		66,734
Soho China Ltd.		219,500		127,022
				420,623
Finland–0.83%
Nokia Corp.–ADR		74,037		603,402
France–4.20%
BNP Paribas		11,152		595,576
Bouygues S.A.		23,217		889,464
Sanofi-Aventis S.A.		15,367		926,864
Total S.A.		14,066		626,128
				3,038,032
Germany–1.90%
Bayerische Motoren Werke AG		17,984		870,032
Salzgitter AG		8,485		505,791
				1,375,823
Greece–0.50%
National Bank of Greece S.A.(c)		32,837		357,852
Hong Kong–2.50%
Chaoda Modern Agriculture (Holdings) Ltd.		110,000		107,489
Cheung Kong (Holdings) Ltd.		60,000		689,447
China Unicom (Hong Kong) Ltd.		86,000		114,968
Esprit Holdings Ltd.		146,641		790,778
Sinofert Holdings Ltd.(c)		260,000		101,999
				1,804,681
India–0.32%
Grasim Industries Ltd.		5		197
Oil and Natural Gas Corp. Ltd.		3,101		87,600
State Bank of India–GDR		1,429		142,757
				230,554
Indonesia–0.13%
PT Telekomunikasi Indonesia Tbk		113,500		95,582
Ireland–0.13%
Dragon Oil PLC(c)		15,841		95,367
Italy–1.10%
Eni S.p.A.		43,299		795,008
Japan–12.62%
Canon Inc.		17,665		658,792
FUJIFILM Holdings Corp.		25,640		737,770
Mitsubishi Corp.		29,200		608,636
Mitsubishi UFJ Financial Group, Inc.		257,930		1,169,569
Murata Manufacturing Co., Ltd.		12,800		609,809
Nippon Telegraph & Telephone Corp.		14,100		575,852
Nippon Yusen Kabushiki Kaisha		275,000		998,946
Nissan Motor Co., Ltd.		110,600		766,920
NTT DoCoMo, Inc.		443		670,107
Seven & I Holdings Co., Ltd.		31,100		713,769
Sumitomo Chemical Co., Ltd.		234,000		903,721
Takeda Pharmaceutical Co., Ltd.		16,600		710,632
				9,124,523

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

4        Invesco Global Core Equity Fund

	Shares		Value
Mexico–0.42%
America Movil S.A.B de C.V.–Series L		64,800	$	153,334
Desarrolladora Homex S.A. de C.V.–ADR		4,280		108,027
Grupo Financiero Banorte S.A.B. de C.V.–Class O		11,100		42,059
				303,420
Netherlands–2.03%
TNT N.V.		32,766		826,011
Unilever N.V.		23,475		640,184
				1,466,195
Norway–0.90%
Statoil A.S.A.		33,750		650,998
Russia–0.24%
Gazprom–ADR		5,214		98,067
Rosneft Oil Co.–GDR		12,101		73,659
				171,726
South Africa–0.76%
Barloworld Ltd.		18,402		96,484
Sasol Ltd.		2,731		96,927
Standard Bank Group Ltd.		11,421		151,052
Steinhoff International Holdings Ltd.(c)		47,078		108,435
Tiger Brands Ltd.		4,421		97,495
				550,393
South Korea–1.24%
Hyundai Mipo Dockyard Co., Ltd.		1,215		127,635
Hyundai Mobis		999		167,332
LG Electronics Inc.		800		61,099
Lotte Shopping Co., Ltd.		222		63,588
POSCO		348		132,097
Samsung Electronics Co., Ltd.		280		175,832
Shinhan Financial Group Co., Ltd.		2,850		104,976
SK Telecom Co., Ltd.		502		65,757
				898,316
Spain–2.95%
Banco Santander S.A.		93,327		980,879
Iberdrola S.A.		78,935		442,736
Telefonica S.A.		38,255		706,581
				2,130,196
Switzerland–5.08%
ACE Ltd.		19,194		988,107
Holcim Ltd.		13,937		932,773
Swisscom AG		2,646		896,300
Zurich Financial Services AG		3,892		854,218
				3,671,398
Taiwan–0.61%
AU Optronics Corp.–ADR		11,016		97,822
HTC Corp.		12,650		167,822
Powertech Technology Inc.		48,200		133,585
U-Ming Marine Transport Corp.		22,000		41,950
				441,179
Thailand–0.23%
Bangkok Bank PCL–NVDR		26,500		101,355
PTT PCL		8,500		63,933
				165,288
Turkey–0.15%
Asya Katilim Bankasi AS		47,554		108,676
Turkiye Is Bankasi–Class C		1		2
				108,678
United Kingdom–8.22%
BP PLC		118,921		571,030
GlaxoSmithKline PLC–ADR		20,661		702,681
Imperial Tobacco Group PLC		52,203		1,455,246
National Grid PLC		87,237		642,500
Royal Dutch Shell PLC–Class B		66,404		1,607,406
Vodafone Group PLC		465,366		964,147
				5,943,010
United States–38.49%
3M Co.		17,528		1,384,537
Aflac, Inc.		18,822		803,135
Apache Corp.		8,869		746,681
Apollo Group, Inc.–Class A(c)		12,946		549,817
Archer-Daniels-Midland Co.		28,645		739,614
Avon Products, Inc.		25,381		672,596
Bank of America Corp.		57,802		830,615
Bank of New York Mellon Corp.		33,561		828,621
Best Buy Co., Inc.		18,770		635,552
Chevron Corp.		22,532		1,529,021
Coach, Inc.		31,667		1,157,429
ConocoPhillips		24,863		1,220,525
DaVita, Inc.(c)		14,670		915,995
DTE Energy Co.		22,647		1,032,930
Energen Corp.		19,788		877,202
GameStop Corp.–Class A(c)		44,953		844,667
International Business Machines Corp.		5,537		683,709
Johnson & Johnson		26,750		1,579,855
Kroger Co. (The)		57,742		1,136,940
Merck & Co., Inc.		46,481		1,625,440
Microsoft Corp.		34,803		800,817
Morgan Stanley		40,276		934,806

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

5        Invesco Global Core Equity Fund

	Shares		Value
United States–(continued)
Oracle Corp.		57,054	$	1,224,379
Pfizer, Inc.		47,526		677,721
Philip Morris International, Inc.		14,121		647,307
Stryker Corp.		15,860		793,951
Valero Energy Corp.		46,751		840,583
W. R. Berkley Corp.		26,356		697,380
WellPoint Inc.(c)		28,807		1,409,526
				27,821,351
Total Common Stocks & Other Equity Interests (Cost $77,925,372)				70,616,826
Preferred Stocks–1.14%
Brazil–0.16%
Usinas Siderurgicas de Minas Gerais S.A.–Class A–Pfd.		4,300		115,051
Germany–0.98%
Porsche Automobil Holding SE–Pfd. (Germany)		16,621		709,189
Total Preferred Stocks (Cost $1,235,945)				824,240
Money Market Funds–0.80%
Liquid Assets Portfolio–Institutional Class(d)		287,710		287,710
Premier Portfolio–Institutional Class(d)		287,710		287,710
Total Money Market Funds (Cost $575,420)				575,420
TOTAL INVESTMENTS–99.64% (Cost $79,736,737)				72,016,486
OTHER ASSETS LESS LIABILITIES–0.36%				258,618
NET ASSETS–100.00%			$	72,275,104

Investment Abbreviations:

ADR	– American Depositary Receipt
GDR	– Global Depositary Receipt
NVDR	– Non-Voting Depositary Receipt
Pfd.	– Preferred

Notes to Schedule of Investments:

(a)	Each unit represents 55 common shares and 50 preference shares.
(b)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at June 30, 2010 represented 0.11% of the Fund’s Net Assets.
(c)	Non-income producing security.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Financials	20.1	%
Energy	14.8
Health Care	12.9
Consumer Discretionary	9.4
Consumer Staples	8.6
Information Technology	8.2
Industrials	6.9
Telecommunication Services	6.9
Materials	6.8
Utilities	4.3
Money Market Funds Plus Other Assets Less Liabilities	1.1

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

6        Invesco Global Core Equity Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $79,161,317)	$	71,441,066
Investments in affiliated money market funds, at value and cost		575,420
Total investments, at value (Cost $79,736,737)		72,016,486
Foreign currencies, at value (Cost $311,407)		311,407
Receivables for:
Fund shares sold		6,526
Dividends		248,788
Investment for trustee deferred compensation and retirement plans		18,226
Other assets		21,951
Total assets		72,623,384
Liabilities:
Payables for:
Investments purchased		16,062
Fund shares reacquired		161,036
Accrued fees to affiliates		72,222
Accrued other operating expenses		65,309
Trustee deferred compensation and retirement plans		33,651
Total liabilities		348,280
Net assets applicable to shares outstanding	$	72,275,104
Net assets consist of:
Shares of beneficial interest	$	116,414,840
Undistributed net investment income		683,072
Undistributed net realized gain (loss)		(37,103,269	)
Unrealized appreciation (depreciation)		(7,719,539	)
	$	72,275,104
Net Assets:
Class A	$	51,848,638
Class B	$	9,502,717
Class C	$	10,262,489
Class Y	$	636,923
Institutional Class	$	24,337
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		4,798,898
Class B		913,158
Class C		985,467
Class Y		58,874
Institutional Class		2,229
Class A:
Net asset value per share	$	10.80
Maximum offering price per share (Net asset value of $10.80 divided by 94.50%)	$	11.43
Class B:
Net asset value and offering price per share	$	10.41
Class C:
Net asset value and offering price per share	$	10.41
Class Y:
Net asset value and offering price per share	$	10.82
Institutional Class:
Net asset value and offering price per share	$	10.92

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

7        Invesco Global Core Equity Fund

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $91,273)	$	1,301,692
Dividends from affiliated money market funds		372
Total investment income		1,302,064
Expenses:
Advisory fees		341,518
Administrative services fees		24,794
Custodian fees		27,787
Distribution fees:
Class A		75,923
Class B		59,258
Class C		60,281
Transfer agent fees — A, B, C, and Y		161,394
Transfer agent fees — Institutional		13
Trustees’ and officers’ fees and benefits		10,314
Other		64,135
Total expenses		825,417
Less: Fees waived and expenses reimbursed		(870	)
Net expenses		824,547
Net investment income		477,517
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (Net of foreign taxes of $3,109)		468,765
Foreign currencies		(68,516	)
		400,249
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes on holdings of $41,646)		(11,672,486	)
Foreign currencies		(1,743	)
		(11,674,229	)
Net realized and unrealized gain (loss)		(11,273,980	)
Net increase (decrease) in net assets resulting from operations	$	(10,796,463	)

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

8        Invesco Global Core Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	477,517		$	763,168
Net realized gain (loss)		400,249			(11,578,725	)
Change in net unrealized appreciation (depreciation)		(11,674,229	)		32,714,108
Net increase (decrease) in net assets resulting from operations		(10,796,463	)		21,898,551
Distributions to shareholders from net investment income:
Class A		—			(396,226	)
Class Y		—			(5,551	)
Institutional Class		—			(132	)
Total distributions from net investment income		—			(401,909	)
Share transactions–net:
Class A		(5,826,573	)		(10,655,352	)
Class B		(2,378,885	)		(5,438,131	)
Class C		(1,074,476	)		(2,717,377	)
Class Y		65,677			158,712
Institutional Class		18,320			(86,314	)
Net increase (decrease) in net assets resulting from share transactions		(9,195,937	)		(18,738,462	)
Net increase (decrease) in net assets		(19,992,400	)		2,758,180
Net assets:
Beginning of period		92,267,504			89,509,324
End of period (includes undistributed net investment income of $683,072 and $205,555, respectively)	$	72,275,104		$	92,267,504

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

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

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

  The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class Y and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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

A.

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

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an

9        Invesco Global Core Equity Fund

	independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to

10        Invesco Global Core Equity Fund

	federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.80%
Next $250 million		0	.78%
Next $500 million		0	.76%
Next $1.5 billion		0	.74%
Next $2.5 billion		0	.72%
Next $2.5 billion		0	.70%
Next $2.5 billion		0	.68%
Over $10 billion		0	.66%

11        Invesco Global Core Equity Fund

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class Y and Institutional Class shares to 2.25%, 3.00%, 3.00%, 2.00% and 2.00%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $698.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended June 30, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $172.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B and Class C shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended June 30, 2010, IDI advised the Fund that IDI retained $6,900 in front-end sales commissions from the sale of Class A shares and $0, $8,755 and $385 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information

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

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

12        Invesco Global Core Equity Fund

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1*		Level 2*		Level 3		Total
Australia	$	—	$	3,235,442	$	—	$	3,235,442
Bermuda		683,374		—		—		683,374
Brazil		780,599		—		—		780,599
Canada		3,768,867		—		—		3,768,867
China		—		420,623		—		420,623
Finland		603,402		—		—		603,402
France		—		3,038,032		—		3,038,032
Germany		—		2,085,012		—		2,085,012
Greece		357,852		—		—		357,852
Hong Kong		—		1,804,681		—		1,804,681
India		142,954		87,600		—		230,554
Indonesia		—		95,582		—		95,582
Ireland		—		95,367		—		95,367
Italy		—		795,008		—		795,008
Japan		—		9,124,523		—		9,124,523
Mexico		303,420		—		—		303,420
Netherlands		—		1,466,195		—		1,466,195
Norway		—		650,998		—		650,998
Russia		—		171,726		—		171,726
South Africa		—		550,393		—		550,393
South Korea		—		898,316		—		898,316
Spain		—		2,130,196		—		2,130,196
Switzerland		988,107		2,683,291		—		3,671,398
Taiwan		97,822		343,357		—		441,179
Thailand		—		165,288		—		165,288
Turkey		—		108,678		—		108,678
United Kingdom		702,681		5,240,329		—		5,943,010
United States		28,396,771		—		—		28,396,771
Total Investments	$	36,825,849	$	35,190,637	$	—	$	72,016,486

*  Transfers occurred between Level 1 and Level 2 due to foreign fair value adjustments.

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangements are comprised of (1) transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions and (2) custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended June 30, 2010, the Fund received credits from these arrangements, which resulted in the reduction of the Fund’s total expenses of $0.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,396 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

13        Invesco Global Core Equity Fund

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	21,962,315
December 31, 2017		14,435,805
Total capital loss carryforward	$	36,398,120

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $13,051,609 and $21,902,337, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	5,838,567
Aggregate unrealized (depreciation) of investment securities		(14,431,273	)
Net unrealized appreciation (depreciation) of investment securities	$	(8,592,706	)
Cost of investments for tax purposes is $80,609,192.

14        Invesco Global Core Equity Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		149,868		$	1,817,785			439,799		$	4,499,734
Class B		32,907			387,147			62,995			621,870
Class C		38,625			454,457			114,824			1,132,748
Class Y		7,826			97,216			30,514			295,810
Institutional Class		2,037			25,984			—			—
Issued as reinvestment of dividends:
Class A		—			—			30,532			374,941
Class B		—			—			—			—
Class C		—			—			—			—
Class Y		—			—			431			5,297
Institutional Class		—			—			11			132
Automatic conversion of Class B shares to Class A shares:
Class A		109,270			1,322,017			265,744			2,651,642
Class B		(113,209	)		(1,322,017	)		(274,570	)		(2,651,642	)
Reacquired:(b)
Class A		(746,952	)		(8,966,375	)		(1,805,231	)		(18,181,669	)
Class B		(124,774	)		(1,444,015	)		(363,580	)		(3,408,359	)
Class C		(132,180	)		(1,528,933	)		(396,616	)		(3,850,125	)
Class Y		(2,616	)		(31,539	)		(13,329	)		(142,395	)
Institutional Class		(670	)		(7,664	)		(11,381	)		(86,446	)
Net increase (decrease) in share activity		(779,868	)	$	(9,195,937	)		(1,919,857	)	$	(18,738,462	)

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 27% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

(b)

Net of redemption fees of $680 and $770 allocated among the classes based on relative net assets of each class for the six months ended June 30, 2010 and the year ended December 31, 2009, respectively.

15        Invesco Global Core Equity Fund

NOTE 10—Financial Highlights

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

																											Ratio of			Ratio of
																											expenses			expenses
					Net gains																						to average			to average net			Ratio of net
	Net asset				(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net		securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period(b)		Return(c)			(000s omitted)		absorbed			absorbed			net assets			turnover(d)
Class A
Six months ended 06/30/10	$	12.36	$	0.10	$	(1.66	)	$	(1.56	)	$	—		$	—		$	—		$	10.80		(12.62	)%	$	51,849		1.73	%(e)		1.73	%(e)		1.33	%(e)		16	%
Year ended 12/31/09		9.56		0.12		2.76			2.88			(0.08	)		—			(0.08	)		12.36		30.08			65,333		1.93			1.93			1.10			43
Year ended 12/31/08		15.75		0.12		(6.27	)		(6.15	)		(0.04	)		—			(0.04	)		9.56		(39.03	)		60,767		1.58			1.59			0.96			146
Year ended 12/31/07		16.14		0.18		0.19			0.37			(0.22	)		(0.54	)		(0.76	)		15.75		2.31			139,688		1.44			1.47			1.08			35
Year ended 12/31/06		13.97		0.14		2.82			2.96			(0.17	)		(0.62	)		(0.79	)		16.14		21.16			149,283		1.53			1.58			0.88			24
Year ended 12/31/05		13.28		0.13		1.38			1.51			(0.16	)		(0.66	)		(0.82	)		13.97		11.35			93,363		1.62			1.67			0.91			51
Class B
Six months ended 06/30/10		11.95		0.06		(1.60	)		(1.54	)		—			—			—			10.41		(12.89	)		9,503		2.48	(e)		2.48	(e)		0.58	(e)		16
Year ended 12/31/09		9.26		0.04		2.65			2.69			—			—			—			11.95		29.05			13,360		2.68			2.68			0.35			43
Year ended 12/31/08		15.37		0.03		(6.10	)		(6.07	)		(0.04	)		—			(0.04	)		9.26		(39.48	)		15,675		2.33			2.34			0.21			146
Year ended 12/31/07		15.73		0.05		0.20			0.25			(0.07	)		(0.54	)		(0.61	)		15.37		1.62			50,018		2.19			2.22			0.33			35
Year ended 12/31/06		13.65		0.02		2.75			2.77			(0.07	)		(0.62	)		(0.69	)		15.73		20.27			65,013		2.28			2.33			0.13			24
Year ended 12/31/05		13.02		0.03		1.34			1.37			(0.08	)		(0.66	)		(0.74	)		13.65		10.51			49,827		2.33			2.38			0.20			51
Class C
Six months ended 06/30/10		11.96		0.06		(1.61	)		(1.55	)		—			—			—			10.41		(12.96	)		10,262		2.48	(e)		2.48	(e)		0.58	(e)		16
Year ended 12/31/09		9.26		0.04		2.66			2.70			—			—			—			11.96		29.16			12,900		2.68			2.68			0.35			43
Year ended 12/31/08		15.38		0.03		(6.11	)		(6.08	)		(0.04	)		—			(0.04	)		9.26		(39.52	)		12,604		2.33			2.34			0.21			146
Year ended 12/31/07		15.74		0.05		0.20			0.25			(0.07	)		(0.54	)		(0.61	)		15.38		1.62			34,626		2.19			2.22			0.33			35
Year ended 12/31/06		13.66		0.02		2.75			2.77			(0.07	)		(0.62	)		(0.69	)		15.74		20.26			44,587		2.28			2.33			0.13			24
Year ended 12/31/05		13.03		0.03		1.34			1.37			(0.08	)		(0.66	)		(0.74	)		13.66		10.50			24,316		2.33			2.38			0.20			51
Class Y
Six months ended 06/30/10		12.36		0.12		(1.66	)		(1.54	)		—			—			—			10.82		(12.46	)		637		1.48	(e)		1.48	(e)		1.58	(e)		16
Year ended 12/31/09		9.56		0.14		2.76			2.90			(0.10	)		—			(0.10	)		12.36		30.39			663		1.68			1.68			1.35			43
Year ended 12/31/08(f)		11.29		0.02		(1.71	)		(1.69	)		(0.04	)		—			(0.04	)		9.56		(14.95	)		345		1.67	(g)		1.67	(g)		0.87	(g)		146
Institutional Class
Six months ended 06/30/10		12.45		0.12		(1.65	)		(1.53	)		—			—			—			10.92		(12.29	)		24		1.19	(e)		1.19	(e)		1.87	(e)		16
Year ended 12/31/09		9.61		0.17		2.82			2.99			(0.15	)		—			(0.15	)		12.45		31.17			11		1.24			1.24			1.79			43
Year ended 12/31/08		15.77		0.22		(6.34	)		(6.12	)		(0.04	)		—			(0.04	)		9.61		(38.79	)		118		0.97			0.98			1.57			146
Year ended 12/31/07		16.17		0.26		0.19			0.45			(0.31	)		(0.54	)		(0.85	)		15.77		2.84			111,805		0.93			0.96			1.59			35
Year ended 12/31/06		13.98		0.22		2.83			3.05			(0.24	)		(0.62	)		(0.86	)		16.17		21.81			51,005		0.98			1.03			1.43			24
Year ended 12/31/05(f)		13.90		0.04		0.86			0.90			(0.16	)		(0.66	)		(0.82	)		13.98		6.48			2,542		1.09	(g)		1.14	(g)		1.44	(g)		51

(a)	Calculated using average shares outstanding.
(b)	Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share.
(c)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(e)	Ratios are based on average daily net assets (000’s omitted) of $61,242, $11,950, $12,156, $28,147 and $711,245 for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively.
(f)	Commencement date of October 3, 2008 and October 25, 2005 for Class Y and Institutional Class shares, respectively.
(g)	Annualized.

16        Invesco Global Core Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
A	$	1,000.00	$	873.80	$	8.04	$	1,016.22	$	8.65		1.73	%
B		1,000.00		871.10		11.51		1,012.50		12.37		2.48
C		1,000.00		870.40		11.50		1,012.50		12.37		2.48
Y		1,000.00		875.40		6.88		1,017.46		7.40		1.48
Institutional		1,000.00		877.10		5.54		1,018.89		5.96		1.19

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

17        Invesco Global Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Funds Group (Invesco Funds Group) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Global Core Equity Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers were appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

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

B.  Fund Performance

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

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Global Large-Cap Core Funds Index. The Board noted that the performance of Class A shares of the Fund was in the third quintile of its performance universe for the one and five year periods and the

18        Invesco Global Core Equity Fund

fourth quintile of its performance universe for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Class A shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

  The Board noted that Invesco Advisers does not serve as an adviser to other domestic mutual funds with investment strategies comparable to those of the Fund. Affiliated Sub-Advisers and other Invesco Advisers’ affiliated investment advisers do advise funds with comparable investment strategies in other jurisdictions; however, the Board did not consider comparisons of fees charged to those funds to be apt, as those fees may include more than investment management services.

  The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients based upon policies reviewed with the Board. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to other client accounts, including provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended. Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets managed for other client accounts and noted that advance notice of redemptions affecting management assets is often provided to Invesco Advisers by institutional clients. Although the Board noted that the fees charged to other client accounts were often lower than the advisory fee charged by Invesco Advisers to the Fund and other Invesco Funds, the Board did note that sub-advisory fees charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts were more comparable. In light of this information, the Board concluded that the aggregate services provided to the Invesco Funds were sufficiently different from services provided to other client accounts and accordingly, the Board did not place significant weight on these fee comparisons.

  The Board also noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for the research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

19        Invesco Global Core Equity Fund

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Invesco Privacy Policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important Notice Regarding Delivery of Security Holder Documents

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

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-01540 and 002-27334.

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

     Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

     If used after October 20, 2010, this report must be accompanied by a Quarterly Performance Review for the most recent quarter-end.

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

GCE-SAR-1                      Invesco Distributors, Inc.

Invesco International Small Company Fund
Semiannual Report to Shareholders • June 30, 2010

2	Fund Performance
3	Letters to Shareholders
4	Schedule of Investments
7	Financial Statements
9	Notes to Financial Statements
16	Financial Highlights
17	Fund Expenses
18	Approval of Investment Advisory and Sub-Advisory Agreements

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data provided by Invesco.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	–7.11	%
Class B Shares	–7.41
Class C Shares	–7.41
Class Y Shares	–6.96
Institutional Class Shares	–6.88
MSCI EAFE Index6 (Broad Market Index)	–13.23
MSCI World Ex-US Small Cap Index6 (Style-Specific Index)	–6.31
Lipper International Small/Mid-Cap Growth Funds Index6 (Peer Group Index)	–6.75

⁶ Lipper Inc.

The MSCI EAFE^® Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East.

     The MSCI World Ex-US Small Cap Index is an unmanaged index considered representative of small-cap stocks of global developed markets, excluding those of the U.S.

     The Lipper International Small/Mid-Cap Growth Funds Index is an unmanaged index considered representative of international small/mid-cap growth funds tracked by Lipper.

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

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

Average Annual Total Returns

As of 6/30/10, including maximum applicable sales charges

Class A Shares
Inception (8/31/00)	9.11	%
5 Years	5.87
1 Year	9.78
Class B Shares
Inception (8/31/00)	9.11	%
5 Years	6.03
1 Year	10.38
Class C Shares
Inception (8/31/00)	8.98	%
5 Years	6.29
1 Year	14.38
Class Y Shares
Inception	9.80	%
5 Years	7.19
1 Year	16.52
Institutional Class Shares
Inception	9.98	%
5 Years	7.54
1 Year	16.75

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Institutional Class shares incepted on October 25, 2005. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

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

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Institutional shares was 1.62%, 2.37%, 2.37%, 1.37% and 1.12%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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

     A redemption fee of 2% will be imposed on certain redemptions or exchanges out of the Fund within 31 days of purchase. Exceptions to the redemption fee are listed in the Fund’s prospectus.

     Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower.

2     Invesco International Small Company Fund

Letters to Shareholders

Dear Fellow Shareholders:

Although the global markets have improved since their lows of 2009, they remain challenging as governments around the world work to ensure the recovery remains on track. In this volatile environment, it’s comforting to know that your Board is committed to putting your interests first. We realize you have many choices when selecting a money manager, and your Board is working hard to ensure you feel you’ve made the right choice.

     To that end, I’m pleased to share the news that Invesco has completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments. This acquisition greatly expands the breadth and depth of investment strategies we can offer you. As a result of this combination, Invesco gained investment talent for a number of investment strategies, including U.S. value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key advantage of this combination is the highly complementary nature of our cultures. This is making it much easier to bring our organizations together while ensuring that our investment teams remain focused on managing your money.

     We view this addition as an excellent opportunity for you, our shareholders, to have access to an even broader range of well-diversified mutual funds. Now that the acquisition has closed, Invesco is working to bring the full value of the combined organization to shareholders. The key goals of this effort are to ensure that we have deeply resourced and focused investment teams, a compelling line of products and enhanced efficiency, which will benefit our shareholders now and over the long term.

     It might interest you to know that the mutual funds of the combined organization are overseen by a single fund Board composed of 17 current members, including four new members who joined us from Van Kampen/Morgan Stanley. This expanded Board will continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we have always maintained.

     As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair, Invesco Funds Board of Trustees

Dear Shareholders:

I’m pleased to present this report on your Fund’s performance for the six months ended June 30, 2010. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, I’m glad you’re part of the Invesco family.

     At Invesco, we’re committed to providing you with timely information about market conditions, answering questions you may have about your investments and offering outstanding customer service. At our website, invesco.com/us, you can obtain unique market perspectives, useful investor education information and your Fund’s most recent quarterly commentary.

     I believe Invesco, as a leading global investment manager, is uniquely positioned to serve your needs.

     First, we are committed to investment excellence. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, each operating under a disciplined philosophy and process with strong risk oversight and quality controls.

     Second, we offer you a broad range of investment products that can be tailored to your needs and goals. These products include single-country, regional and global investment options spanning major equity, fixed income and alternative asset classes.

     And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do.

     If you have questions about your account, please contact one of our client services representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, please email me directly at phil@invesco.com.

     Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

3     Invesco International Small Company Fund

Schedule of Investments

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–94.30%
Austria–1.23%
Andritz AG		90,437	$	5,061,564
Brazil–4.61%
American Banknote S.A.(a)		325,900		2,689,957
American Banknote S.A.		1,121,300		9,255,135
Diagnosticos da America S.A.(b)		382,100		3,594,094
Equatorial Energia S.A.		377,600		3,378,152
				18,917,338
Canada–18.93%
Aastra Technologies Ltd.		166,100		3,589,158
AG Growth International, Inc.		102,890		3,392,934
Bird Construction Income Fund		120,000		3,472,379
Breakwater Resources, Ltd.(b)		859,369		1,994,214
Calian Technologies Ltd.		142,000		2,318,640
Calvalley Petroleum Inc.–Class A(b)		952,024		3,049,983
Canyon Services Group, Inc.(b)		653,000		2,576,663
Churchill Corp. (The)–Class A(b)		164,400		2,769,346
Computer Modelling Group Ltd.		135,000		2,128,241
CYBERplex Inc.(b)		2,521,400		1,516,062
Daylight Energy Ltd.		319,500		2,674,507
Descartes Systems Group Inc. (The)(b)		500,000		2,682,262
Glentel Inc.		302,900		4,470,649
Grande Cache Coal Corp.(b)		505,000		2,585,729
Hammond Power Solutions Inc.(b)		212,100		2,207,880
Le Chateau Inc.		291,000		3,469,363
MI Developments, Inc.–Class A		237,000		2,898,510
MOSAID Technologies Inc.		208,500		3,868,729
Onex Corp.		264,704		6,344,043
Paramount Resources Ltd.–Class A(b)		257,246		4,485,612
Reitmans (Canada) Ltd.–Class A		291,700		5,160,382
Sierra Wireless Inc.(b)		320,000		2,119,504
Total Energy Services Inc.		1,014,790		7,855,947
				77,630,737
China–2.84%
Vinda International Holdings Ltd.		7,078,000		5,971,104
Xinyi Glass Holdings Co. Ltd.		15,096,000		5,656,269
				11,627,373
Germany–2.84%
CTS Eventim AG		46,000		2,211,437
MorphoSys AG(b)		161,823		2,856,124
Wirecard AG		773,129		6,577,551
				11,645,112
Greece–2.27%
Intralot S.A.		1,172,600		3,723,886
Jumbo S.A.		918,000		5,563,520
				9,287,406
Hong Kong–5.22%
First Pacific Co. Ltd.		13,492,000		9,128,440
Paliburg Holdings Ltd.		22,942,170		8,240,156
Regal Hotels International Holdings Ltd.		10,367,400		4,052,415
				21,421,011
Ireland–4.37%
DCC PLC		318,895		7,205,366
Paddy Power PLC		344,171		10,700,690
				17,906,056
Italy–0.68%
Ansaldo STS S.p.A.		175,693		2,805,875
Japan–5.49%
EXEDY Corp.		347,000		8,927,658
Nippon Ceramic Co., Ltd.		508,700		7,114,049
Noritsu Koki Co., Ltd.		296,800		2,246,018
PIGEON Corp.		47,200		1,742,091
THK Co., Ltd.		120,200		2,485,709
				22,515,525
Malaysia–6.28%
IGB Corp. Berhad		27,777,100		14,949,854
Parkson Holdings Berhad		6,439,931		10,803,442
				25,753,296
Netherlands–1.19%
Aalberts Industries N.V.		378,030		4,874,319
New Zealand–1.21%
Freightways Ltd.		2,607,981		4,978,415
Norway–2.38%
Prosafe S.E.		922,400		3,672,878
TGS Nopec Geophysical Co. A.S.A.		532,258		6,086,571
				9,759,449

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

4        Invesco International Small Company Fund

	Shares		Value
Philippines–5.67%
Energy Development Corp.(a)		5,506,250	$	527,249
Energy Development Corp.		55,352,500		5,300,259
First Gen Corp.(b)		43,145,141		9,545,608
Manila Water Co.		22,517,600		7,878,316
				23,251,432
South Korea–3.63%
CJ Corp.		63,059		3,075,918
Lotte Confectionery Co., Ltd.		5,291		5,521,382
MegaStudy Co., Ltd.		25,204		3,325,837
S1 Corp.		69,300		2,946,302
				14,869,439
Sweden–0.59%
Oriflame Cosmetics S.A.–SDR		46,653		2,422,781
Switzerland–1.70%
Aryzta AG		185,041		6,983,451
Thailand–5.04%
BEC World PCL		6,634,400		5,593,562
CP ALL PCL		7,484,000		6,694,854
Major Cineplex Group PCL		17,615,000		5,082,703
Siam Commercial Bank PCL		1,318,100		3,283,155
				20,654,274
United Kingdom–18.13%
Amlin PLC		693,960		3,989,596
Chemring Group PLC		108,326		4,753,799
Game Group PLC		1,976,931		1,881,267
Halma PLC		882,852		3,587,211
Homeserve PLC		338,968		10,049,476
IG Group Holdings PLC		901,373		5,623,311
Informa PLC		1,166,809		6,139,491
Kier Group PLC		452,426		6,494,583
Lancashire Holdings Ltd.		934,000		6,910,787
Mitie Group PLC		2,967,423		9,385,611
Playtech Ltd.		454,000		3,053,968
Tullett Prebon PLC		585,000		2,745,084
Ultra Electronics Holdings PLC		193,400		4,409,551
VT Group PLC		460,595		5,304,829
				74,328,564
Total Common Stocks & Other Equity Interests (Cost $367,882,407)				386,693,417
Preferred Stocks–1.33%
Canada–0.21%
FirstService Corp.–Series 1, 7% Pfd.(b)		36,320		855,336
Germany–1.12%
Fuchs Petrolub AG–Pfd.		51,694		4,589,191
Total Preferred Stocks (Cost $4,460,276)				5,444,527
Money Market Funds–4.33%
Liquid Assets Portfolio–Institutional Class(c)		8,873,588		8,873,588
Premier Portfolio–Institutional Class(c)		8,873,588		8,873,588
Total Money Market Funds (Cost $17,747,176)				17,747,176
TOTAL INVESTMENTS–99.96% (Cost $390,089,859)				409,885,120
OTHER ASSETS LESS LIABILITIES–0.04%				172,460
NET ASSETS–100.00%			$	410,057,580

Investment Abbreviations:

Pfd.	– Preferred
SDR	– Swedish Depositary Receipt

Notes to Schedule of Investments:

(a)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The 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 June 30, 2010 was $3,217,206, which represented 0.78% of the Fund’s Net Assets.
(b)	Non-income producing security.
(c)	The money market fund and the Fund are affiliated by having the same investment adviser.

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

5        Invesco International Small Company Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Industrials	23.8	%
Consumer Discretionary	23.7
Financials	11.6
Consumer Staples	9.4
Information Technology	9.4
Energy	7.4
Utilities	6.5
Materials	2.2
Health Care	1.6
Money Market Funds Plus Other Assets Less Liabilities	4.4

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

6        Invesco International Small Company Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $372,342,683)	$	392,137,944
Investments in affiliated money market funds, at value and cost		17,747,176
Total investments, at value (Cost $390,089,859)		409,885,120
Foreign currencies, at value (Cost $2,625,249)		2,598,024
Receivables for:
Investments sold		291,835
Fund shares sold		315,560
Dividends		668,301
Investment for trustee deferred compensation and retirement plans		22,569
Other assets		47,052
Total assets		413,828,461
Liabilities:
Payables for:
Investments purchased		1,446,249
Fund shares reacquired		655,908
Accrued fees to affiliates		299,376
Accrued other operating expenses		1,297,714
Trustee deferred compensation and retirement plans		71,634
Total liabilities		3,770,881
Net assets applicable to shares outstanding	$	410,057,580
Net assets consist of:
Shares of beneficial interest	$	466,857,946
Undistributed net investment income		2,609,745
Undistributed net realized gain (loss)		(79,158,550	)
Unrealized appreciation		19,748,439
	$	410,057,580
Net Assets:
Class A	$	294,242,411
Class B	$	21,227,778
Class C	$	39,928,066
Class Y	$	21,125,385
Institutional Class	$	33,533,940
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		21,039,939
Class B		1,574,075
Class C		2,960,265
Class Y		1,505,790
Institutional Class		2,403,631
Class A:
Net asset value per share	$	13.98
Maximum offering price per share
(Net asset value of $13.98 divided by 94.50%)	$	14.79
Class B:
Net asset value and offering price per share	$	13.49
Class C:
Net asset value and offering price per share	$	13.49
Class Y:
Net asset value and offering price per share	$	14.03
Institutional Class:
Net asset value and offering price per share	$	13.95

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

7        Invesco International Small Company Fund

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $694,806)	$	6,489,221
Dividends from affiliated money market funds		12,980
Total investment income		6,502,201
Expenses:
Advisory fees		2,141,340
Administrative services fees		73,174
Custodian fees		187,231
Distribution fees:
Class A		419,057
Class B		123,189
Class C		225,212
Transfer agent fees — A, B, C and Y		506,842
Transfer agent fees — Institutional		4,901
Trustees’ and officers’ fees and benefits		16,033
Other		104,623
Total expenses		3,801,602
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(24,203	)
Net expenses		3,777,399
Net investment income		2,724,802
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities (net of foreign taxes of $64,088)		4,098,833
Foreign currencies		30,235
		4,129,068
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes on holdings of $(201,580))		(40,096,791	)
Foreign currencies		(364,652	)
		(40,461,443	)
Net realized and unrealized gain (loss)		(36,332,375	)
Net increase (decrease) in net assets resulting from operations	$	(33,607,573	)

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

8        Invesco International Small Company Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	2,724,802		$	5,807,730
Net realized gain (loss)		4,129,068			(61,939,610	)
Change in net unrealized appreciation (depreciation)		(40,461,443	)		222,683,275
Net increase (decrease) in net assets resulting from operations		(33,607,573	)		166,551,395
Distributions to shareholders from net investment income:
Class A		—			(3,890,264	)
Class B		—			(153,738	)
Class C		—			(262,066	)
Class Y		—			(252,032	)
Institutional Class		—			(496,714	)
Total distributions from net investment income		—			(5,054,814	)
Share transactions–net:
Class A		(36,762,429	)		46,215,049
Class B		(3,899,942	)		(3,071,958	)
Class C		(3,303,276	)		1,614,818
Class Y		2,772,234			8,965,362
Institutional Class		2,157,346			8,177,196
Net increase (decrease) in net assets resulting from share transactions		(39,036,067	)		61,900,467
Net increase (decrease) in net assets		(72,643,640	)		223,397,048
Net assets:
Beginning of period		482,701,220			259,304,172
End of period (includes undistributed net investment income of $2,609,745 and $(115,057), respectively)	$	410,057,580		$	482,701,220

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

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

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

  The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class Y and Institutional Class shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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

A.

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

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by

9        Invesco International Small Company Fund

	independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

10        Invesco International Small Company Fund

E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

11        Invesco International Small Company Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.935%
Next $250 million		0	.91%
Next $500 million		0	.885%
Next $1.5 billion		0	.86%
Next $2.5 billion		0	.835%
Next $2.5 billion		0	.81%
Next $2.5 billion		0	.785%
Over $10 billion		0	.76%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class Y and Institutional Class shares to 2.25%, 3.00%, 3.00%, 2.00% and 2.00% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under the expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $23,022.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended June 30, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $297.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B and Class C shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended June 30, 2010, IDI advised the Fund that IDI retained $13,375 in front-end sales commissions from the sale of Class A shares and $1,673, $18,794 and $5,171 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

12        Invesco International Small Company Fund

NOTE 3—Additional Valuation Information

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

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1*		Level 2*		Level 3		Total
Austria	$	—	$	5,061,564	$	—	$	5,061,564
Brazil		18,917,338		—		—		18,917,338
Canada		78,486,073		—		—		78,486,073
China		—		11,627,373		—		11,627,373
Germany		—		16,234,303		—		16,234,303
Greece		—		9,287,406		—		9,287,406
Hong Kong		—		21,421,011		—		21,421,011
Ireland		10,700,690		7,205,366		—		17,906,056
Italy		—		2,805,875		—		2,805,875
Japan		—		22,515,525		—		22,515,525
Malaysia		—		25,753,296		—		25,753,296
Netherlands		—		4,874,319		—		4,874,319
New Zealand		—		4,978,415		—		4,978,415
Norway		—		9,759,449		—		9,759,449
Philippines		—		23,251,432		—		23,251,432
South Korea		5,521,382		9,348,057		—		14,869,439
Sweden		—		2,422,781		—		2,422,781
Switzerland		—		6,983,451		—		6,983,451
Thailand		6,694,854		13,959,420		—		20,654,274
United Kingdom		—		74,328,564		—		74,328,564
United States		17,747,176		—		—		17,747,176
Total Investments	$	138,067,513	$	271,817,607	$	—	$	409,885,120

*  Transfers occurred between Level 1 and Level 2 due to foreign fair value adjustments.

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended June 30, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $884.

NOTE 5—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall

13        Invesco International Small Company Fund

be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,864 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	81,914,993

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $52,978,422 and $61,301,301, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	69,239,367
Aggregate unrealized (depreciation) of investment securities		(49,664,909	)
Net unrealized appreciation of investment securities	$	19,574,458
Cost of investments for tax purposes is $390,310,662.

14        Invesco International Small Company Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		3,031,064		$	45,303,709			10,425,876		$	132,847,068
Class B		60,201			874,602			299,020			3,703,193
Class C		227,742			3,325,834			846,821			10,619,335
Class Y		664,622			9,985,684			1,103,910			13,592,509
Institutional Class		638,834			9,661,620			927,050			12,222,989
Issued as reinvestment of dividends:
Class A		—			—			241,061			3,536,095
Class B		—			—			8,551			130,118
Class C		—			—			15,640			231,365
Class Y		—			—			14,056			206,629
Institutional Class		—			—			34,021			496,707
Automatic conversion of Class B shares to Class A shares:
Class A		89,018			1,321,548			178,580			2,065,078
Class B		(92,135	)		(1,321,548	)		(184,503	)		(2,065,078	)
Reacquired:(b)
Class A		(5,638,891	)		(83,387,686	)		(7,882,798	)		(92,233,192	)
Class B		(243,411	)		(3,452,995	)		(442,625	)		(4,840,191	)
Class C		(468,585	)		(6,629,111	)		(848,098	)		(9,235,882	)
Class Y		(499,228	)		(7,213,450	)		(499,369	)		(4,833,776	)
Institutional Class		(522,387	)		(7,504,274	)		(400,456	)		(4,542,500	)
Net increase (decrease) in share activity		(2,753,156	)	$	(39,036,067	)		3,836,737		$	61,900,467

(a)

There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 18% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by this entity are also owned beneficially.

(b)

Net of redemption fees of $16,996 and $34,884 allocated among the classes based on relative net assets of each class for the six months ended June 30, 2010 and the year ended December 31, 2009, respectively.

15        Invesco International Small Company Fund

NOTE 10—Financial Highlights

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

																												Ratio of			Ratio of
						Net gains																						expenses			expenses
						(losses)																						to average			to average net			Ratio of net
	Net asset		Net			on securities						Dividends			Distributions													net assets			assets without			investment
	value,		investment			(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			income			gains			Distributions			of period(a)		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Class A
Six months ended 06/30/10	$	15.05	$	0.09	(d)	$	(1.16	)	$	(1.07	)	$	—		$	—		$	—		$	13.98		(7.11	)%	$	294,242		1.56	%(e)		1.57	%(e)		1.24	%(e)		12	%
Year ended 12/31/09		9.19		0.21	(d)		5.82			6.03			(0.17	)		—			(0.17	)		15.05		65.63			354,624		1.60			1.61			1.76			26
Year ended 12/31/08		22.45		0.24	(d)		(12.47	)		(12.23	)		(0.34	)		(0.69	)		(1.03	)		9.19		(54.24	)		189,189		1.57			1.58			1.38			19
Year ended 12/31/07		24.13		0.32	(d)		3.79			4.11			(0.38	)		(5.41	)		(5.79	)		22.45		17.39			694,568		1.47			1.50			1.16			40
Year ended 12/31/06		20.52		0.23	(d)		7.54			7.77			(0.23	)		(3.93	)		(4.16	)		24.13		38.18			635,318		1.54			1.58			0.93			69
Year ended 12/31/05		16.17		0.07			5.12			5.19			(0.05	)		(0.79	)		(0.84	)		20.52		32.21			451,630		1.61			1.64			0.42			60
Class B
Six months ended 06/30/10		14.57		0.04	(d)		(1.12	)		(1.08	)		—			—			—			13.49		(7.41	)		21,228		2.31	(e)		2.32	(e)		0.49	(e)		12
Year ended 12/31/09		8.91		0.12	(d)		5.62			5.74			(0.08	)		—			(0.08	)		14.57		64.48			26,946		2.35			2.36			1.01			26
Year ended 12/31/08		21.58		0.11	(d)		(11.94	)		(11.83	)		(0.15	)		(0.69	)		(0.84	)		8.91		(54.61	)		19,323		2.32			2.33			0.63			19
Year ended 12/31/07		23.37		0.11	(d)		3.67			3.78			(0.16	)		(5.41	)		(5.57	)		21.58		16.54			77,598		2.22			2.25			0.41			40
Year ended 12/31/06		19.95		0.04	(d)		7.32			7.36			(0.01	)		(3.93	)		(3.94	)		23.37		37.20			86,236		2.29			2.33			0.18			69
Year ended 12/31/05		15.81		(0.05	)		4.98			4.93			—			(0.79	)		(0.79	)		19.95		31.28			76,626		2.35			2.38			(0.32	)		60
Class C
Six months ended 06/30/10		14.57		0.04	(d)		(1.12	)		(1.08	)		—			—			—			13.49		(7.41	)		39,928		2.31	(e)		2.32	(e)		0.49	(e)		12
Year ended 12/31/09		8.91		0.12	(d)		5.62			5.74			(0.08	)		—			(0.08	)		14.57		64.48			46,646		2.35			2.36			1.01			26
Year ended 12/31/08		21.57		0.11	(d)		(11.93	)		(11.82	)		(0.15	)		(0.69	)		(0.84	)		8.91		(54.58	)		28,391		2.32			2.33			0.63			19
Year ended 12/31/07		23.36		0.11	(d)		3.67			3.78			(0.16	)		(5.41	)		(5.57	)		21.57		16.53			124,359		2.22			2.25			0.41			40
Year ended 12/31/06		19.94		0.04	(d)		7.32			7.36			(0.01	)		(3.93	)		(3.94	)		23.36		37.21			124,161		2.29			2.33			0.18			69
Year ended 12/31/05		15.81		(0.05	)		4.97			4.92			—			(0.79	)		(0.79	)		19.94		31.22			102,861		2.35			2.38			(0.32	)		60
Class Y
Six months ended 06/30/10		15.08		0.11	(d)		(1.16	)		(1.05	)		—			—			—			14.03		(6.96	)		21,125		1.31	(e)		1.32	(e)		1.49	(e)		12
Year ended 12/31/09		9.20		0.26	(d)		5.81			6.07			(0.19	)		—			(0.19	)		15.08		66.09			20,216		1.35			1.36			2.01			26
Year ended 12/31/08(f)		13.37		0.03	(d)		(3.17	)		(3.14	)		(0.34	)		(0.69	)		(1.03	)		9.20		(23.08	)		6,638		1.63	(g)		1.63	(g)		1.32	(g)		19
Institutional Class
Six months ended 06/30/10		14.98		0.13	(d)		(1.16	)		(1.03	)		—			—			—			13.95		(6.88	)		33,534		1.10	(e)		1.11	(e)		1.70	(e)		12
Year ended 12/31/09		9.13		0.28	(d)		5.79			6.07			(0.22	)		—			(0.22	)		14.98		66.56			34,269		1.10			1.11			2.26			26
Year ended 12/31/08		22.47		0.32	(d)		(12.52	)		(12.20	)		(0.45	)		(0.69	)		(1.14	)		9.13		(54.02	)		15,762		1.13			1.14			1.82			19
Year ended 12/31/07		24.14		0.43	(d)		3.80			4.23			(0.49	)		(5.41	)		(5.90	)		22.47		17.90			42,253		1.08			1.11			1.55			40
Year ended 12/31/06		20.52		0.33	(d)		7.55			7.88			(0.33	)		(3.93	)		(4.26	)		24.14		38.73			19,384		1.14			1.18			1.33			69
Year ended 12/31/05(f)		18.73		0.03			2.61			2.64			(0.06	)		(0.79	)		(0.85	)		20.52		14.19			972		1.18	(g)		1.21	(g)		0.85	(g)		60

(a)	Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Calculated using average shares outstanding.
(e)	Ratios are annualized and based on average daily net assets (000’s omitted) of $338,024, $24,842, $45,416, $22,788 and $36,586 for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively.
(f)	Commencement date of October 3, 2008 and October 25, 2005 for Class Y and Institutional Class shares, respectively.
(g)	Annualized.

16        Invesco International Small Company Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
A	$	1,000.00	$	928.90	$	7.46	$	1,017.06	$	7.80		1.56	%
B		1,000.00		925.90		11.03		1,013.34		11.53		2.31
C		1,000.00		925.90		11.03		1,013.34		11.53		2.31
Y		1,000.00		930.40		6.27		1,018.30		6.56		1.31
Institutional		1,000.00		931.20		5.27		1,019.34		5.51		1.10

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

17        Invesco International Small Company Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Funds Group (Invesco Funds Group) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco International Small Company Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

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

18        Invesco International Small Company Fund

B.  Fund Performance

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

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper International Small/Mid-Cap Growth Funds Index. The Board noted that the performance of Class A shares of the Fund was in the first quintile of its performance universe for the one and five year periods and the second quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds.). The Board noted that the performance of Class A shares of the Fund was above the performance of the Index for the one, three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Class A shares of the Fund was above the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

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

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

19        Invesco International Small Company Fund

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– easy. Download, save and print files using your home computer with a few clicks of your mouse.

This service is provided by Invesco Investment Services, Inc.

Invesco Privacy Policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important Notice Regarding Delivery of Security Holder Documents

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

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-01540 and 002-27334.

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

     Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

     If used after October 20, 2010, this report must be accompanied by a Quarterly Performance Review for the most recent quarter-end.

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

ISC-SAR-1      Invesco Distributors, Inc.

Invesco Mid Cap Basic Value Fund
Semiannual Report to Shareholders § June 30, 2010

2	Fund Performance
3	Letters to Shareholders
4	Schedule of Investments
6	Financial Statements
8	Notes to Financial Statements
14	Financial Highlights
15	Fund Expenses
16	Approval of Investment Advisory and Sub-Advisory Agreements

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data provided by Invesco.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, 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	-2.71	%
Class B Shares	-3.11
Class C Shares	-3.11
Class R Shares	-2.84
Class Y Shares	-2.51
Institutional Class Shares	-2.43
S&P 500 Index▼ (Broad Market Index)	-6.64
Russell Midcap Value Index▼ (Style-Specific Index)	-0.88
Lipper Mid-Cap Value Funds Index▼ (Peer Group Index)	-3.20

^▼ Lipper Inc.

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

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

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

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

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

Average Annual Total Returns
As of 6/30/10, including maximum applicable sales charges

Class A Shares
Inception (12/31/01)	4.09	%
5 Years	0.97
1 Year	25.43
Class B Shares
Inception (12/31/01)	4.10	%
5 Years	1.07
1 Year	26.88
Class C Shares
Inception (12/31/01)	4.06	%
5 Years	1.36
1 Year	30.69
Class R Shares
Inception	4.59	%
5 Years	1.87
1 Year	32.40
Class Y Shares
Inception	4.84	%
5 Years	2.20
1 Year	33.12
Institutional Class Shares
Inception	5.27	%
5 Years	2.77
1 Year	33.61

Class R shares incepted on April 30, 2004. Performance shown prior to that date is that of Class A shares, restated to reflect the higher 12b-1 fees applicable to Class R shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Institutional Class shares incepted on April 30, 2004. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

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

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares was 1.66%, 2.41%, 2.41%, 1.91%, 1.41% and 0.96%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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

2              Invesco Mid Cap Basic Value Fund

Letters to Shareholders

   Bruce Crockett

Dear Fellow Shareholders:

Although the global markets have improved since their lows of 2009, they remain challenging as governments around the world work to ensure the recovery remains on track. In this volatile environment, it’s comforting to know that your Board is committed to putting your interests first. We realize you have many choices when selecting a money manager, and your Board is working hard to ensure you feel you’ve made the right choice.

     To that end, I’m pleased to share the news that Invesco has completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments. This acquisition greatly expands the breadth and depth of investment strategies we can offer you. As a result of this combination, Invesco gained investment talent for a number of investment strategies, including U.S. value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key advantage of this combination is the highly complementary nature of our cultures. This is making it much easier to bring our organizations together while ensuring that our investment teams remain focused on managing your money.

     We view this addition as an excellent opportunity for you, our shareholders, to have access to an even broader range of well-diversified mutual funds. Now that the acquisition has closed, Invesco is working to bring the full value of the combined organization to shareholders. The key goals of this effort are to ensure that we have deeply resourced and focused investment teams, a compelling line of products and enhanced efficiency, which will benefit our shareholders now and over the long term.

     It might interest you to know that the mutual funds of the combined organization are overseen by a single fund Board composed of 17 current members, including four new members who joined us from Van Kampen/Morgan Stanley. This expanded Board will continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we have always maintained.

     As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair, Invesco Funds Board of Trustees

     Philip Taylor

Dear Shareholders:

I’m pleased to present this report on your Fund’s performance for the six months ended June 30, 2010. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, I’m glad you’re part of the Invesco family.

     At Invesco, we’re committed to providing you with timely information about market conditions, answering questions you may have about your investments and offering outstanding customer service. At our website, invesco.com/us, you can obtain unique market perspectives, useful investor education information and your Fund’s most recent quarterly commentary.

     I believe Invesco, as a leading global investment manager, is uniquely positioned to serve your needs.

     First, we are committed to investment excellence. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, each operating under a disciplined philosophy and process with strong risk oversight and quality controls.

     Second, we offer you a broad range of investment products that can be tailored to your needs and goals. These products include single-country, regional and global investment options spanning major equity, fixed income and alternative asset classes.

     And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do.

     If you have questions about your account, please contact one of our client services representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, please email me directly at phil@invesco.com.

     Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

3              Invesco Mid Cap Basic Value Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–101.75%
Advertising–0.86%
Interpublic Group of Cos., Inc. (The)(b)		267,725	$	1,908,879
Aerospace & Defense–3.06%
Goodrich Corp.		102,395		6,783,669
Asset Management & Custody Banks–2.73%
Northern Trust Corp.		129,822		6,062,687
Auto Parts & Equipment–1.08%
Lear Corp.(b)		36,162		2,393,924
Building Products–2.70%
Lennox International Inc.		144,026		5,987,161
Computer Hardware–1.99%
Diebold, Inc.		162,199		4,419,923
Data Processing & Outsourced Services–3.12%
Fidelity National Information Services, Inc.		258,289		6,927,311
Diversified Banks–2.19%
Comerica Inc.		131,900		4,857,877
Diversified Chemicals–2.22%
PPG Industries, Inc.		81,763		4,939,303
Electric Utilities–4.45%
Edison International		165,611		5,253,181
Great Plains Energy Inc.		271,237		4,616,454
				9,869,635
Electronic Manufacturing Services–1.98%
Flextronics International Ltd. (Singapore)(b)		784,359		4,392,410
Food Distributors–2.58%
Sysco Corp.		200,180		5,719,143
Health Care Distributors–2.62%
Henry Schein, Inc.(b)		105,800		5,808,420
Health Care Equipment–2.57%
Beckman Coulter, Inc.		94,585		5,702,530
Health Care Facilities–5.19%
Brookdale Senior Living Inc.(b)		422,123		6,331,845
Healthsouth Corp.(b)		277,112		5,184,765
				11,516,610
Housewares & Specialties–2.81%
Newell Rubbermaid Inc.		426,629		6,245,848
	Shares
Industrial Machinery–5.51%
Pentair, Inc.		196,219		6,318,252
Snap-on Inc.		144,317		5,904,008
				12,222,260
Insurance Brokers–5.32%
Marsh & McLennan Cos., Inc.		225,414		5,083,086
Willis Group Holdings PLC (Ireland)		223,961		6,730,028
				11,813,114
Investment Banking & Brokerage–2.95%
Charles Schwab Corp. (The)		324,316		4,598,801
FBR Capital Markets Corp.(b)		584,539		1,946,515
				6,545,316
Motorcycle Manufacturers–1.99%
Harley-Davidson, Inc.		198,734		4,417,857
Multi-Utilities–2.31%
Wisconsin Energy Corp.		101,066		5,128,089
Office Electronics–5.05%
Xerox Corp.		552,064		4,438,595
Zebra Technologies Corp.–Class A(b)		267,095		6,776,200
				11,214,795
Office Services & Supplies–3.36%
Avery Dennison Corp.		231,901		7,450,979
Oil & Gas Equipment & Services–0.54%
Halliburton Co.		48,918		1,200,937
Oil & Gas Exploration & Production–2.33%
Pioneer Natural Resources Co.		87,160		5,181,662
Oil & Gas Storage & Transportation–4.78%
El Paso Corp.		583,994		6,488,173
Williams Cos., Inc. (The)		225,841		4,128,374
				10,616,547
Packaged Foods & Meats–2.56%
ConAgra Foods, Inc.		243,650		5,681,918
Paper Packaging–2.49%
Sonoco Products Co.		181,588		5,534,802
Personal Products–1.26%
Avon Products, Inc.		105,904		2,806,456
Property & Casualty Insurance–3.08%
ACE Ltd. (Switzerland)		132,790		6,836,029

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

4        Invesco Mid Cap Basic Value Fund

	Shares		Value
Regional Banks–5.42%
BB&T Corp.		193,927	$	5,102,219
Wintrust Financial Corp.		84,422		2,814,629
Zions Bancorp.		190,559		4,110,358
				12,027,206
Restaurants–2.01%
Darden Restaurants, Inc.		114,902		4,463,943
Retail REIT’s–1.39%
Weingarten Realty Investors		161,700		3,080,385
Soft Drinks–2.30%
Coca-Cola Enterprises Inc.		197,033		5,095,273
Specialty Chemicals–4.95%
Valspar Corp. (The)		226,713		6,828,596
W.R. Grace & Co.(b)		197,931		4,164,468
				10,993,064
Total Common Stocks & Other Equity Interests (Cost $234,020,779)				225,845,962
Money Market Funds–5.77%
Liquid Assets Portfolio–Institutional Class(c)		6,404,433		6,404,433
Premier Portfolio–Institutional Class(c)		6,404,433		6,404,433
Total Money Market Funds (Cost $12,808,866)				12,808,866
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–107.52% (Cost $246,829,645)				238,654,828
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.54%
Liquid Assets Portfolio–Institutional Class (Cost $3,416,784)(c)(d)		3,416,784		3,416,784
TOTAL INVESTMENTS–109.06% (Cost $250,246,429)				242,071,612
OTHER ASSETS LESS LIABILITIES–(9.06)%				(20,112,795	)
NET ASSETS–100.00%				221,958,817

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	The money market fund and the Fund are affiliated by having the same investment adviser.
(d)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Financials	23.1	%
Industrials	14.6
Information Technology	12.1
Health Care	10.4
Materials	9.7
Consumer Discretionary	8.7
Consumer Staples	8.7
Energy	7.7
Utilities	6.8
Money Market Funds Plus Other Assets Less Liabilities	(1.8	)

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

5        Invesco Mid Cap Basic Value Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $234,020,779)*	$	225,845,962
Investments in affiliated money market funds, at value and cost		16,225,650
Total investments, at value (Cost $250,246,429)		242,071,612
Receivables for:
Investments sold		151,685,887
Investments sold to affiliates		17,632,490
Fund shares sold		278,242
Dividends		202,293
Investment for trustee deferred compensation and retirement plans		14,804
Other assets		41,619
Total assets		411,926,947
Liabilities:
Payables for:
Investments purchased		177,186,014
Investments purchased from affiliates		8,079,504
Fund shares reacquired		289,528
Amount due custodian		769,880
Collateral upon return of securities loaned		3,416,784
Accrued fees to affiliates		153,710
Accrued other operating expenses		38,402
Trustee deferred compensation and retirement plans		34,308
Total liabilities		189,968,130
Net assets applicable to shares outstanding	$	221,958,817
Net assets consist of:
Shares of beneficial interest	$	240,572,433
Undistributed net investment income (loss)		(566,362	)
Undistributed net realized gain (loss)		(9,816,635	)
Unrealized appreciation (depreciation)		(8,230,619	)
	$	221,958,817
Net Assets:
Class A	$	136,624,559
Class B	$	17,122,534
Class C	$	25,003,369
Class R	$	4,202,582
Class Y	$	13,027,084
Institutional Class	$	25,978,689
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		13,575,574
Class B		1,831,348
Class C		2,674,224
Class R		423,086
Class Y		1,290,244
Institutional Class		2,489,114
Class A:
Net asset value per share	$	10.06
Maximum offering price per share
(Net asset value of $10.06 divided by 94.50%)	$	10.65
Class B:
Net asset value and offering price per share	$	9.35
Class C:
Net asset value and offering price per share	$	9.35
Class R:
Net asset value and offering price per share	$	9.93
Class Y:
Net asset value and offering price per share	$	10.10
Institutional Class:
Net asset value and offering price per share	$	10.44

*  At June 30, 2010, securities with an aggregate value of $3,237,377 were on loan to brokers.

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

6        Invesco Mid Cap Basic Value Fund

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $20,041)	$	1,131,748
Dividends from affiliated money market funds (includes securities lending income of $23,718)		28,059
Total investment income		1,159,807
Expenses:
Advisory fees		869,937
Administrative services fees		51,652
Custodian fees		5,199
Distribution fees:
Class A		174,985
Class B		101,693
Class C		122,555
Class R		10,027
Transfer agent fees — A, B, C, R and Y		278,418
Transfer agent fees — Institutional		510
Trustees’ and officers’ fees and benefits		12,153
Other		73,431
Total expenses		1,700,560
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(8,215	)
Net expenses		1,692,345
Net investment income (loss)		(532,538	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $2,071,127)		7,100,948
Foreign currencies		(33,971	)
		7,066,977
Change in net unrealized appreciation (depreciation) of:
Investment securities		(18,003,906	)
Foreign currencies		(55,802	)
		(18,059,708	)
Net realized and unrealized gain (loss)		(10,992,731	)
Net increase (decrease) in net assets resulting from operations	$	(11,525,269	)

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

7        Invesco Mid Cap Basic Value Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income (loss)	$	(532,538	)	$	(805,750	)
Net realized gain		7,066,977			4,116,900
Change in net unrealized appreciation (depreciation)		(18,059,708	)		77,751,376
Net increase (decrease) in net assets resulting from operations		(11,525,269	)		81,062,526
Distributions to shareholders from net investment income:
Class A		—			(136,563	)
Class Y		—			(14,577	)
Institutional Class		—			(177,150	)
Total distributions from net investment income		—			(328,290	)
Share transactions–net:
Class A		27,785,166			28,492,718
Class B		(1,961,559	)		(1,284,398	)
Class C		8,149,910			3,730,425
Class R		1,806,760			524,257
Class Y		4,885,985			3,222,585
Institutional Class		(4,842,547	)		(15,769,500	)
Net increase in net assets resulting from share transactions		35,823,715			18,916,087
Net increase in net assets		24,298,446			99,650,323
Net assets:
Beginning of period		197,660,371			98,010,048
End of period (includes undistributed net investment income (loss) of $(566,362) and $(33,824), respectively)	$	221,958,817		$	197,660,371

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

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

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

  The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class R, Class Y and Institutional Class shares are sold at net asset value. Under certain circumstances, Class R shares are subject to a CDSC. Effective April 1, 2010, Class R shares are no longer subject to a CDSC. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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

A.

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

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued.

8        Invesco Mid Cap Basic Value Fund

	Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

9        Invesco Mid Cap Basic Value Fund

E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.
J.	Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
	The Fund may invest in foreign securities which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable.
K.	Foreign Currency Contracts — The Fund may enter into foreign currency contracts to manage or minimize currency or exchange rate risk. The Fund may also enter into foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security. A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

10        Invesco Mid Cap Basic Value Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.745%
Next $250 million		0	.73%
Next $500 million		0	.715%
Next $1.5 billion		0	.70%
Next $2.5 billion		0	.685%
Next $2.5 billion		0	.67%
Next $2.5 billion		0	.655%
Over $10 billion		0	.64%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 2.00%, 2.75%, 2.75%, 2.25%, 1.75% and 1.75%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $6,731.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended June 30, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $271.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C and Class R shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended June 30, 2010, IDI advised the Fund that IDI retained $27,859 in front-end sales commissions from the sale of Class A shares and $0, $13,946 and $3,936 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

11        Invesco Mid Cap Basic Value Fund

NOTE 3—Additional Valuation Information

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

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	242,071,612	$	—	$	—	$	242,071,612

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco Funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2010, the Fund engaged in securities purchases of $10,464,300 and securities sales of $21,404,554, which resulted in net realized gains of $2,071,127.

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended June 30, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,213.

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,518 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available

12        Invesco Mid Cap Basic Value Fund

capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	10,235,890
December 31, 2017		5,529,556
Total capital loss carryforward	$	15,765,446

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $300,412,976 and $258,581,827, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	3,103,065
Aggregate unrealized (depreciation) of investment securities		(12,396,048	)
Net unrealized appreciation (depreciation) of investment securities	$	(9,292,983	)
Cost of investments for tax purposes is $251,364,595.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		5,507,554		$	63,239,299			6,342,670		$	54,328,103
Class B		350,129			3,690,450			505,591			4,017,786
Class C		1,358,202			14,265,800			1,048,554			8,023,927
Class R		267,310			2,917,775			129,487			1,029,333
Class Y		655,066			7,470,809			383,742			3,564,850
Institutional Class		482,869			5,593,690			798,247			7,228,968
Issued as reinvestment of dividends:
Class A		—			—			12,706			128,953
Class Y		—			—			1,434			14,441
Institutional Class		—			—			16,985			176,472
Automatic conversion of Class B shares to Class A shares:
Class A		224,676			2,509,781			245,016			1,764,050
Class B		(241,473	)		(2,509,781	)		(261,878	)		(1,764,050	)
Reacquired:
Class A		(3,443,123	)		(37,963,914	)		(3,467,720	)		(27,728,388	)
Class B		(309,916	)		(3,142,228	)		(506,091	)		(3,538,134	)
Class C		(603,397	)		(6,115,890	)		(595,157	)		(4,293,502	)
Class R		(97,778	)		(1,111,015	)		(60,548	)		(505,076	)
Class Y		(235,150	)		(2,584,824	)		(46,821	)		(356,706	)
Institutional Class		(908,432	)		(10,436,237	)		(2,696,139	)		(23,174,940	)
Net increase in share activity		3,006,537		$	35,823,715			1,850,078		$	18,916,087

^(a) There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund that owns 10% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is considered to be related to the Fund,

13        Invesco Mid Cap Basic Value Fund

for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by this entity is owned beneficially.

  In addition, 9% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are other mutual funds that are also advised by Invesco.

NOTE 11—Financial Highlights

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

																												Ratio of			Ratio of
																												expenses			expenses
						Net gains																						to average			to average net			Ratio of net
	Net asset					(losses) on						Dividends			Distributions													net assets			assets without			investment
	value,		Net			securities (both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		investment			realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income (loss)			unrealized)			operations			income			gains			Distributions			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Class A
Six months ended 06/30/10	$	10.34	$	(0.02	)(c)	$	(0.26	)	$	(0.28	)	$	—		$	—		$	—		$	10.06		(2.71	)%	$	136,625		1.38	%(d)		1.39	%(d)		(0.39	)%(d)		115	%
Year ended 12/31/09		5.65		(0.05	)(c)		4.75			4.70			(0.01	)		—			(0.01	)		10.34		83.23			116,745		1.64			1.65			(0.58	)		57
Year ended 12/31/08		13.67		0.01	(c)		(7.09	)		(7.08	)		—			(0.94	)		(0.94	)		5.65		(51.38	)		46,085		1.56			1.57			0.13			78
Year ended 12/31/07		13.83		0.09			1.19			1.28			(0.06	)		(1.38	)		(1.44	)		13.67		9.30			115,198		1.43			1.46			0.55			44
Year ended 12/31/06		14.48		(0.04	)(c)		1.25			1.21			—			(1.86	)		(1.86	)		13.83		8.47			113,672		1.52			1.58			(0.30	)		46
Year ended 12/31/05		13.12		(0.07	)		1.43			1.36			—			—			—			14.48		10.37			127,775		1.51			1.57			(0.51	)		29
Class B
Six months ended 06/30/10		9.65		(0.06	)(c)		(0.24	)		(0.30	)		—			—			—			9.35		(3.11	)		17,123		2.13	(d)		2.14	(d)		(1.14	)(d)		115
Year ended 12/31/09		5.30		(0.10	)(c)		4.45			4.35			—			—			—			9.65		82.08			19,606		2.39			2.40			(1.33	)		57
Year ended 12/31/08		13.05		(0.06	)(c)		(6.75	)		(6.81	)		—			(0.94	)		(0.94	)		5.30		(51.76	)		12,168		2.31			2.32			(0.62	)		78
Year ended 12/31/07		13.30		(0.03	)		1.16			1.13			—			(1.38	)		(1.38	)		13.05		8.53			42,012		2.18			2.21			(0.20	)		44
Year ended 12/31/06		14.10		(0.15	)(c)		1.21			1.06			—			(1.86	)		(1.86	)		13.30		7.63			51,970		2.27			2.33			(1.05	)		46
Year ended 12/31/05		12.87		(0.16	)		1.39			1.23			—			—			—			14.10		9.56			69,594		2.21			2.27			(1.21	)		29
Class C
Six months ended 06/30/10		9.65		(0.06	)(c)		(0.24	)		(0.30	)		—			—			—			9.35		(3.11	)		25,003		2.13	(d)		2.14	(d)		(1.14	)(d)		115
Year ended 12/31/09		5.30		(0.10	)(c)		4.45			4.35			—			—			—			9.65		82.08			18,514		2.39			2.40			(1.33	)		57
Year ended 12/31/08		13.04		(0.06	)(c)		(6.74	)		(6.80	)		—			(0.94	)		(0.94	)		5.30		(51.72	)		7,773		2.31			2.32			(0.62	)		78
Year ended 12/31/07		13.30		(0.03	)		1.15			1.12			—			(1.38	)		(1.38	)		13.04		8.45			24,950		2.18			2.21			(0.20	)		44
Year ended 12/31/06		14.09		(0.15	)(c)		1.22			1.07			—			(1.86	)		(1.86	)		13.30		7.70			26,435		2.27			2.33			(1.05	)		46
Year ended 12/31/05		12.86		(0.16	)		1.39			1.23			—			—			—			14.09		9.56			29,946		2.21			2.27			(1.21	)		29
Class R
Six months ended 06/30/10		10.22		(0.03	)(c)		(0.26	)		(0.29	)		—			—			—			9.93		(2.84	)		4,203		1.63	(d)		1.64	(d)		(0.64	)(d)		115
Year ended 12/31/09		5.59		(0.07	)(c)		4.70			4.63			—			—			—			10.22		82.83			2,592		1.89			1.90			(0.83	)		57
Year ended 12/31/08		13.57		(0.01	)(c)		(7.03	)		(7.04	)		—			(0.94	)		(0.94	)		5.59		(51.46	)		1,032		1.81			1.82			(0.12	)		78
Year ended 12/31/07		13.75		0.03			1.20			1.23			(0.03	)		(1.38	)		(1.41	)		13.57		9.01			1,035		1.68			1.71			0.30			44
Year ended 12/31/06		14.44		(0.08	)(c)		1.25			1.17			—			(1.86	)		(1.86	)		13.75		8.22			449		1.77			1.83			(0.55	)		46
Year ended 12/31/05		13.11		(0.05	)		1.38			1.33			—			—			—			14.44		10.15			175		1.71			1.77			(0.71	)		29
Class Y
Six months ended 06/30/10		10.36		(0.01	)(c)		(0.25	)		(0.26	)		—			—			—			10.10		(2.51	)		13,027		1.13	(d)		1.14	(d)		(0.14	)(d)		115
Year ended 12/31/09		5.65		(0.03	)(c)		4.76			4.73			(0.02	)		—			(0.02	)		10.36		83.67			9,021		1.39			1.40			(0.33	)		57
Year ended 12/31/08(e)		9.54		0.00	(c)		(2.95	)		(2.95	)		—			(0.94	)		(0.94	)		5.65		(30.34	)		3,006		1.50	(f)		1.51	(f)		0.19	(f)		78
Institutional Class
Six months ended 06/30/10		10.70		0.01	(c)		(0.27	)		(0.26	)		—			—			—			10.44		(2.43	)		25,979		0.86	(d)		0.87	(d)		0.13	(d)		115
Year ended 12/31/09		5.83		0.01	(c)		4.92			4.93			(0.06	)		—			(0.06	)		10.70		84.61			31,183		0.94			0.95			0.12			57
Year ended 12/31/08		13.94		0.09	(c)		(7.26	)		(7.17	)		—			(0.94	)		(0.94	)		5.83		(51.02	)		27,946		0.91			0.92			0.78			78
Year ended 12/31/07		14.08		0.16			1.23			1.39			(0.15	)		(1.38	)		(1.53	)		13.94		9.91			66,109		0.87			0.90			1.11			44
Year ended 12/31/06		14.62		0.05	(c)		1.27			1.32			—			(1.86	)		(1.86	)		14.08		9.15			44,013		0.92			0.98			0.30			46
Year ended 12/31/05		13.17		0.01			1.44			1.45			—			—			—			14.62		11.01			25,174		0.92			0.98			(0.08	)		29

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $141,148, $20,507, $24,714, $4,044, $13,123 and $31,939 for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares, respectively.
(e)	Commencement date of October 3, 2008.
(f)	Annualized.

14        Invesco Mid Cap Basic Value Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
Class A	$	1,000.00	$	972.90	$	6.75	$	1,017.95	$	6.90		1.38	%
Class B		1,000.00		968.90		10.40		1,014.23		10.64		2.13
Class C		1,000.00		968.90		10.40		1,014.23		10.64		2.13
Class R		1,000.00		971.60		7.97		1,016.71		8.15		1.63
Class Y		1,000.00		974.90		5.53		1,019.19		5.66		1.13
Institutional		1,000.00		975.70		4.21		1,020.53		4.31		0.86

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

15        Invesco Mid Cap Basic Value Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Funds Group (Invesco Funds Group) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Mid Cap Basic Value Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

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

16        Invesco Mid Cap Basic Value Fund

B.  Fund Performance

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

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Mid-Cap Value Funds Index. The Board noted that the performance of Class A shares of the Fund was in the first quintile of its performance universe for the one and three year periods and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A share of the Fund was above the performance of the Index for the one, three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Class A shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

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

  The Board also noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts and the services provided by Invesco Advisers pursuant to the Fund’s advisory agreement, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers, and that Invesco Advisers and the Affiliated Sub-Advisers are affiliates.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for the research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

17        Invesco Mid Cap Basic Value Fund

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This service is provided by Invesco Investment Services, Inc.

Invesco Privacy Policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important Notice Regarding Delivery of Security Holder Documents

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

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-01540 and 002-27334.

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

     Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

     If used after October 20, 2010, this report must be accompanied by a Quarterly Performance Review for the most recent quarter-end.

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

MCBV-SAR-1     Invesco Distributors, Inc.

Invesco Select Equity Fund
Semiannual Report to Shareholders n June 30, 2010

2	Fund Performance
3	Letters to Shareholders
4	Schedule of Investments
8	Financial Statements
10	Notes to Financial Statements
16	Financial Highlights
17	Fund Expenses
18	Approval of Investment Advisory and Sub-Advisory Agreements

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data provided by Invesco.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares*	-9.94	%
Class B Shares*	-10.33
Class C Shares*	-10.28
Class Y Shares*	-9.86
S&P 500 Index6 (Broad Market Index)	-6.64
Russell 3000 Index6 (Style-Specific Index)	-6.05
Lipper Multi-Cap Core Funds Index6 (Peer Group Index)	-5.68

6	Lipper Inc.
*	Performance includes litigation proceeds. Had these proceeds not been included, returns would have been lower.

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

     The Russell 3000^® Index is an unmanaged index considered representative of the U.S. stock market. The Russell 3000 Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

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

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

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

Average Annual Total Returns

As of 6/30/10, including maximum applicable sales charges

Class A Shares
Inception (12/4/67)	6.87	%
10 Years	-6.59
5 Years	-4.87
1 Year	4.24

Class B Shares
Inception (9/1/93)	3.81	%
10 Years	-6.62
5 Years	-4.88
1 Year	4.44

Class C Shares
Inception (8/4/97)	-0.18	%
10 Years	-6.76
5 Years	-4.50
1 Year	8.45

Class Y Shares
10 Years	-6.02	%
5 Years	3.71
1 Year	10.49

Performance includes litigation proceeds. Had these proceeds not been included, returns would have been lower.

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

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

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 1.64%, 2.39%, 2.39% and 1.39%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

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

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

2     Invesco Select Equity Fund

Letters to Shareholders

  Bruce Crockett

Dear Fellow Shareholders:

Although the global markets have improved since their lows of 2009, they remain challenging as governments around the world work to ensure the recovery remains on track. In this volatile environment, it’s comforting to know that your Board is committed to putting your interests first. We realize you have many choices when selecting a money manager, and your Board is working hard to ensure you feel you’ve made the right choice.

     To that end, I’m pleased to share the news that Invesco has completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments. This acquisition greatly expands the breadth and depth of investment strategies we can offer you. As a result of this combination, Invesco gained investment talent for a number of investment strategies, including U.S. value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key advantage of this combination is the highly complementary nature of our cultures. This is making it much easier to bring our organizations together while ensuring that our investment teams remain focused on managing your money.

     We view this addition as an excellent opportunity for you, our shareholders, to have access to an even broader range of well-diversified mutual funds. Now that the acquisition has closed, Invesco is working to bring the full value of the combined organization to shareholders. The key goals of this effort are to ensure that we have deeply resourced and focused investment teams, a compelling line of products and enhanced efficiency, which will benefit our shareholders now and over the long term.

     It might interest you to know that the mutual funds of the combined organization are overseen by a single fund Board composed of 17 current members, including four new members who joined us from Van Kampen/Morgan Stanley. This expanded Board will continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we have always maintained.

     As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,

Bruce L. Crockett
Independent Chair, Invesco Funds Board of Trustees

    Philip Taylor

Dear Shareholders:

I’m pleased to present this report on your Fund’s performance for the six months ended June 30, 2010. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, I’m glad you’re part of the Invesco family.

     At Invesco, we’re committed to providing you with timely information about market conditions, answering questions you may have about your investments and offering outstanding customer service. At our website, invesco.com/us, you can obtain unique market perspectives, useful investor education information and your Fund’s most recent quarterly commentary.

     I believe Invesco, as a leading global investment manager, is uniquely positioned to serve your needs.

     First, we are committed to investment excellence. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, each operating under a disciplined philosophy and process with strong risk oversight and quality controls.

     Second, we offer you a broad range of investment products that can be tailored to your needs and goals. These products include single-country, regional and global investment options spanning major equity, fixed income and alternative asset classes.

     And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do.

     If you have questions about your account, please contact one of our client services representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, please email me directly at phil@invesco.com.

Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco

3     Invesco Select Equity Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.45%
Airlines–0.86%
Alaska Air Group, Inc.(b)		4,400	$	197,780
Delta Air Lines, Inc.(b)		117,600		1,381,800
				1,579,580
Apparel Retail–3.46%
Aeropostale, Inc.(b)		82,700		2,368,528
Collective Brands, Inc.(b)		28,400		448,720
Gap, Inc. (The)		182,100		3,543,666
				6,360,914
Apparel, Accessories & Luxury Goods–1.04%
Jones Apparel Group, Inc.		121,000		1,917,850
Auto Parts & Equipment–1.87%
TRW Automotive Holdings Corp.(b)		124,500		3,432,465
Automobile Manufacturers–1.99%
Ford Motor Co.(b)		362,800		3,657,024
Biotechnology–2.93%
Amgen Inc.(b)		78,000		4,102,800
PDL BioPharma Inc.		228,000		1,281,360
				5,384,160
Building Products–0.07%
A.O. Smith Corp.		2,600		125,294
Communications Equipment–0.44%
InterDigital, Inc.(b)		33,100		817,239
Computer & Electronics Retail–0.83%
Rent-A-Center, Inc.(b)		75,700		1,533,682
Computer Hardware–2.93%
Apple Inc.(b)		3,700		930,661
Hewlett-Packard Co.		103,200		4,466,496
				5,397,157
Computer Storage & Peripherals–4.58%
Lexmark International, Inc.–Class A(b)		55,000		1,816,650
SanDisk Corp.(b)		51,700		2,175,019
Seagate Technology(b)		210,700		2,747,528
Western Digital Corp.(b)		56,000		1,688,960
				8,428,157
Construction & Engineering–0.50%
Chicago Bridge & Iron Co. N.V.–New York Shares(b)		27,500		517,275
Shaw Group Inc. (The)(b)		11,700		400,374
				917,649
Construction, Farm Machinery & Heavy Trucks–1.67%
Oshkosh Corp.(b)		98,400		3,066,144
Consumer Electronics–1.68%
Garmin Ltd.		105,900		3,090,162
Consumer Finance–1.97%
American Express Co.		91,200		3,620,640
Diversified Banks–0.40%
U.S. Bancorp		12,800		286,080
Wells Fargo & Co.		17,500		448,000
				734,080
Diversified Metals & Mining–1.29%
Freeport-McMoRan Copper & Gold Inc.		27,800		1,643,814
Titanium Metals Corp.(b)		41,700		733,503
				2,377,317
Education Services–0.45%
Career Education Corp.(b)		30,400		699,808
Corinthian Colleges, Inc.(b)		13,000		128,050
				827,858
Electric Utilities–1.82%
Edison International		20,300		643,916
Exelon Corp.		71,300		2,707,261
				3,351,177
Electrical Components & Equipment–0.24%
General Cable Corp.(b)		16,500		439,725
Electronic Components–0.24%
Vishay Intertechnology, Inc.(b)		57,800		447,372
Forest Products–0.10%
Louisiana-Pacific Corp.(b)		27,100		181,299
Health Care Distributors–0.50%
Cardinal Health, Inc.		27,300		917,553
Homebuilding–2.21%
D.R. Horton, Inc.		279,800		2,750,434
Lennar Corp.–Class A		94,500		1,314,495
				4,064,929

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

4        Invesco Select Equity Fund

	Shares		Value
Homefurnishing Retail–1.16%
Williams-Sonoma, Inc.		86,100	$	2,137,002
Household Products–3.34%
Procter & Gamble Co. (The)		102,400		6,141,952
Housewares & Specialties–0.33%
American Greetings Corp.–Class A		32,200		604,072
Hypermarkets & Super Centers–0.86%
Wal-Mart Stores, Inc.		32,900		1,581,503
Independent Power Producers & Energy Traders–1.72%
Constellation Energy Group Inc.		97,900		3,157,275
Industrial Conglomerates–0.53%
Carlisle Cos. Inc.		24,700		892,411
General Electric Co.		5,600		80,752
				973,163
Integrated Oil & Gas–8.12%
Chevron Corp.		80,400		5,455,944
ConocoPhillips		33,500		1,644,515
Exxon Mobil Corp.		137,300		7,835,711
				14,936,170
Integrated Telecommunication Services–4.30%
AT&T Inc.		227,900		5,512,901
Verizon Communications Inc.		85,600		2,398,512
				7,911,413
Internet Software & Services–0.16%
AOL Inc.(b)		14,000		291,060
Investment Banking & Brokerage–1.34%
BGC Partners, Inc.–Class A		121,300		619,843
Goldman Sachs Group, Inc. (The)		14,000		1,837,780
				2,457,623
IT Consulting & Other Services–3.20%
International Business Machines Corp.		47,700		5,889,996
Life & Health Insurance–1.58%
Aflac, Inc.		13,000		554,710
Prudential Financial, Inc.		43,900		2,355,674
				2,910,384
Managed Health Care–4.53%
Health Net Inc.(b)		71,300		1,737,581
Humana Inc.(b)		67,600		3,087,292
UnitedHealth Group Inc.		123,300		3,501,720
				8,326,593
Movies & Entertainment–1.39%
Madison Square Garden, Inc.–Class A(b)		16,100		316,687
Time Warner Inc.		77,400		2,237,634
				2,554,321
Multi-Line Insurance–0.41%
Assurant, Inc.		18,500		641,950
Genworth Financial Inc.–Class A(b)		9,100		118,937
				760,887
Oil & Gas Drilling–0.06%
Seahawk Drilling Inc.(b)		11,800		114,696
Oil & Gas Equipment & Services–1.57%
National-Oilwell Varco Inc.		87,400		2,890,318
Paper Packaging–0.97%
Temple-Inland Inc.		86,600		1,790,022
Paper Products–2.21%
Clearwater Paper Corp.(b)		10,100		553,076
Domtar Corp.		55,400		2,722,910
International Paper Co.		34,900		789,787
				4,065,773
Pharmaceuticals–7.46%
Abbott Laboratories		44,900		2,100,422
Bristol-Myers Squibb Co.		19,600		488,824
Eli Lilly and Co.		112,600		3,772,100
Forest Laboratories, Inc.(b)		37,300		1,023,139
Johnson & Johnson		14,000		826,840
Par Pharmaceutical Cos Inc.(b)		11,500		298,540
Pfizer Inc.		332,800		4,745,728
ViroPharma Inc.(b)		42,100		471,941
				13,727,534
Property & Casualty Insurance–5.45%
Aspen Insurance Holdings Ltd.		46,100		1,140,514
Berkshire Hathaway Inc.–Class B(b)		27,300		2,175,537
Chubb Corp. (The)		34,900		1,745,349
Travelers Cos., Inc. (The)		73,400		3,614,950
XL Group PLC		84,600		1,354,446
				10,030,796
Publishing–2.31%
Gannett Co., Inc.		225,300		3,032,538
McGraw-Hill Cos., Inc. (The)		43,000		1,210,020
				4,242,558
Semiconductor Equipment–0.37%
Amkor Technology, Inc.(b)		124,400		685,444

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

5        Invesco Select Equity Fund

	Shares		Value
Semiconductors–1.21%
Micron Technology, Inc.(b)		262,300	$	2,226,927
Soft Drinks–1.35%
Coca-Cola Co. (The)		49,500		2,480,940
Specialized Consumer Services–0.94%
Sotheby’s		75,700		1,731,259
Specialized Finance–0.14%
IntercontinentalExchange Inc.(b)		1,300		146,939
Marlin Business Services Corp.(b)		8,700		105,183
				252,122
Specialized REIT’s–0.49%
National Health Investors, Inc.		23,600		910,016
Specialty Chemicals–0.53%
W.R. Grace & Co.(b)		46,400		976,256
Steel–0.74%
Reliance Steel & Aluminum Co.		20,600		744,690
Worthington Industries, Inc.		47,800		614,708
				1,359,398
Systems Software–3.29%
Microsoft Corp.		262,800		6,047,028
Tobacco–1.28%
Altria Group, Inc.		28,500		571,140
Philip Morris International Inc.		39,000		1,787,760
				2,358,900
Trucking–0.96%
AMERCO(b)		6,500		357,825
Avis Budget Group, Inc.(b)		143,400		1,408,188
				1,766,013
Wireless Telecommunication Services–0.08%
USA Mobility, Inc.		11,000		142,120
Total Common Stocks & Other Equity Interests (Cost $184,568,090)				181,100,961
	Principal
	Amount
U.S. Treasury Bills–0.48%
0.08%, 09/16/10(c)(d)(Cost $869,851)	$	870,000		869,720
	Shares
Money Market Funds–1.25%
Liquid Assets Portfolio–Institutional Class(e)		1,151,819		1,151,819
Premier Portfolio–Institutional Class(e)		1,151,819		1,151,819
Total Money Market Funds (Cost $2,303,638)				2,303,638
TOTAL INVESTMENTS–100.18% (Cost $187,741,579)				184,274,319
OTHER ASSETS LESS LIABILITIES–(0.18)%				(322,089	)
NET ASSETS–100.00%			$	183,952,230

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(d)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 4.
(e)	The money market fund and the Fund are affiliated by having the same investment adviser.

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

6        Invesco Select Equity Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Consumer Discretionary	19.7	%
Information Technology	16.4
Health Care	15.4
Financials	11.8
Energy	9.8
Consumer Staples	6.8
Materials	5.8
Industrials	4.8
Telecommunication Services	4.4
Utilities	3.5
U.S. Treasury Bills, Money Market Funds Plus Other Assets Less Liabilities	1.6

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

7        Invesco Select Equity Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $185,437,941)	$	181,970,681
Investments in affiliated money market funds, at value and cost		2,303,638
Total investments, at value (Cost $187,741,579)		184,274,319
Receivables for:
Fund shares sold		9,327
Dividends		184,789
Investment for trustee deferred compensation and retirement plans		86,425
Other assets		30,127
Total assets		184,584,987
Liabilities:
Payables for:
Fund shares reacquired		215,823
Variation margin		23,300
Accrued fees to affiliates		180,323
Accrued other operating expenses		55,472
Trustee deferred compensation and retirement plans		157,839
Total liabilities		632,757
Net assets applicable to shares outstanding	$	183,952,230
Net assets consist of:
Shares of beneficial interest	$	292,510,401
Undistributed net investment income		895,787
Undistributed net realized gain (loss)		(105,849,022	)
Unrealized appreciation (depreciation)		(3,604,936	)
	$	183,952,230
Net Assets:
Class A	$	157,389,921
Class B	$	13,704,193
Class C	$	11,248,483
Class Y	$	1,609,633
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		10,930,897
Class B		1,103,909
Class C		907,988
Class Y		111,370
Class A:
Net asset value per share	$	14.40
Maximum offering price per share
(Net asset value of $14.40 divided by 94.50%)	$	15.24
Class B:
Net asset value and offering price per share	$	12.41
Class C:
Net asset value and offering price per share	$	12.39
Class Y:
Net asset value and offering price per share	$	14.45

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

8        Invesco Select Equity Fund

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends	$	2,040,284
Dividends from affiliated money market funds		1,178
Total investment income		2,041,462
Expenses:
Advisory fees		769,252
Administrative services fees		24,795
Custodian fees		7,789
Distribution fees:
Class A		216,351
Class B		84,228
Class C		64,177
Transfer agent fees		416,562
Trustees’ and officers’ fees and benefits		11,976
Other		89,494
Total expenses		1,684,624
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(3,455	)
Net expenses		1,681,169
Net investment income		360,293
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		11,225,867
Futures contracts		(70,233	)
		11,155,634
Change in net unrealized appreciation (depreciation) of:
Investment securities		(32,368,371	)
Futures contracts		(148,856	)
		(32,517,227	)
Net realized and unrealized gain (loss)		(21,361,593	)
Net increase (decrease) in net assets resulting from operations	$	(21,001,300	)

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

9        Invesco Select Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income	$	360,293		$	724,987
Net realized gain (loss)		11,155,634			(38,419,004	)
Change in net unrealized appreciation (depreciation)		(32,517,227	)		80,090,191
Net increase (decrease) in net assets resulting from operations		(21,001,300	)		42,396,174
Distributions to shareholders from net investment income:
Class A		—			(803,875	)
Class Y		—			(9,089	)
Total distributions from net investment income		—			(812,964	)
Share transactions–net:
Class A		3,424,165			(15,797,722	)
Class B		(2,990,848	)		(8,444,441	)
Class C		(716,540	)		(1,818,089	)
Class Y		67,535			428,519
Net increase (decrease) in net assets resulting from share transactions		(215,688	)		(25,631,733	)
Net increase (decrease) in net assets		(21,216,988	)		15,951,477
Net assets:
Beginning of period		205,169,218			189,217,741
End of period (includes undistributed net investment income of $895,787 and $535,494, respectively)	$	183,952,230		$	205,169,218

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

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

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

  The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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

A.

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

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

10        Invesco Select Equity Fund

	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE.
	Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

11        Invesco Select Equity Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
J.	Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $150 million		0	.80%
Over $150 million		0	.625%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 2.00%, 2.75%, 2.75% and 1.75%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under the expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $1,958.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense

12        Invesco Select Equity Fund

reimbursement are included in the Statement of Operations. For the six months ended June 30, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $431.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2010, the expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C and Class Y shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B and Class C shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of each class of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended June 30, 2010, IDI advised the Fund that IDI retained $6,379 in front-end sales commissions from the sale of Class A shares and $0, $20,892 and $241 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information

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

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended June 30, 2010, there were no significant transfers between investment levels.

	Level 1			Level 2		Level 3		Total
Equity Securities	$	183,404,599		$	—	$	—	$	183,404,599
U.S. Treasury Securities		—			869,720		—		869,720
	$	183,404,599		$	869,720	$	—	$	184,274,319
Futures*		(137,676	)		—		—		(137,676	)
Total Investments	$	183,266,923		$	869,720	$	—	$	184,136,643

*  Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund has implemented the required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

13        Invesco Select Equity Fund

Value of Derivative Instruments at Period-End

The Table below summarizes the value of the Fund’s derivative instruments, detailed by primary risk exposure, held as of June 30, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	—	$	(137,676	)

^(a) Includes cumulative appreciation (depreciation) of futures contracts. Only current day’s variation margin receivable (payable) is reported within the Statement of Assets & Liabilities.

Effect of Derivative Instruments for the six months ended June 30, 2010

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

	Location of Gain
	(Loss) on Statement
	of Operations
	Futures*
Realized Gain (Loss)
Index risk	$	(70,233	)
Change in Unrealized Appreciation (Depreciation)
Index risk		(148,856	)
Total	$	(219,089	)

*  The average value of futures outstanding during the period was $3,201,467.

Open Futures Contracts
							Unrealized
	Number of		Month/				Appreciation
Contract	Contracts		Commitment		Value		(Depreciation)
S&P 500 E-Mini Futures		54		September-2010/Long	$	2,771,820	$	(137,676	)

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the six months ended June 30, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,066.

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,513 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 8—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

14        Invesco Select Equity Fund

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions. Under these limitation rules, the Fund is limited to utilizing $113,354,997 of capital loss carryforward in the fiscal year ending December 31, 2010.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2010	$	7,313,689
December 31, 2011		210,540
December 31, 2016		51,626,553
December 31, 2017		54,204,215
Total capital loss carryforward	$	113,354,997

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $95,313,161 and $96,948,491, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	10,430,085
Aggregate unrealized (depreciation) of investment securities		(15,999,854	)
Net unrealized appreciation (depreciation) of investment securities	$	(5,569,769	)
Cost of investments for tax purposes is $189,844,088.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		931,112		$	15,514,331			2,049,347		$	26,747,341
Class B		77,871			1,098,068			193,368			2,208,110
Class C		43,684			619,758			101,957			1,164,256
Class Y		15,438			259,147			622,364			8,263,920
Issued as reinvestment of dividends:
Class A		—			—			48,303			757,871
Class Y		—			—			549			8,641
Automatic conversion of Class B shares to Class A shares:
Class A		147,339			2,366,565			504,345			6,543,145
Class B		(170,567	)		(2,366,565	)		(581,922	)		(6,543,145	)
Reacquired:
Class A		(897,905	)		(14,456,731	)		(3,679,059	)		(49,846,079	)
Class B		(124,842	)		(1,722,351	)		(360,252	)		(4,109,406	)
Class C		(96,341	)		(1,336,298	)		(259,733	)		(2,982,345	)
Class Y		(11,695	)		(191,612	)		(600,389	)		(7,844,042	)
Net increase (decrease) in share activity		(85,906	)	$	(215,688	)		(1,961,122	)	$	(25,631,733	)

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

15        Invesco Select Equity Fund

NOTE 11—Financial Highlights

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

																						Ratio of			Ratio of
																						expenses			expenses
						Net gains																to average			to average net			Ratio of net
	Net asset		Net			(losses) on						Dividends										net assets			assets without			investment
	value,		investment			securities (both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)(a)			unrealized)			operations			income			of period		Return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Class A
Six months ended 06/30/10	$	15.99	$	0.04		$	(1.63	)	$	(1.59	)	$	—		$	14.40		(9.94	)%	$	157,390		1.54	%(d)		1.54	%(d)		0.46	%(d)		48	%
Year ended 12/31/09		12.89		0.07			3.10	(e)		3.17			(0.07	)		15.99		24.64	(e)		171,894		1.64			1.64			0.50			101
Year ended 12/31/08		21.02		0.08			(8.21	)		(8.13	)		—			12.89		(38.68	)		152,478		1.52			1.52			0.44			158
Year ended 12/31/07		21.10		0.04			(0.12	)		(0.08	)		—			21.02		(0.38	)		271,828		1.33			1.34			0.19			129
Year ended 12/31/06		18.55		0.03			2.52			2.55			—			21.10		13.75			259,817		1.40			1.41			0.14			72
Year ended 12/31/05		17.65		(0.04	)		0.94			0.90			—			18.55		5.10			259,946		1.39			1.39			(0.21	)		91
Class B
Six months ended 06/30/10		13.84		(0.02	)		(1.41	)		(1.43	)		—			12.41		(10.33	)		13,704		2.29	(d)		2.29	(d)		(0.29	)(d)		48
Year ended 12/31/09		11.19		(0.03	)		2.68	(e)		2.65			—			13.84		23.68	(e)		18,285		2.39			2.39			(0.25	)		101
Year ended 12/31/08		18.37		(0.05	)		(7.13	)		(7.18	)		—			11.19		(39.08	)		23,159		2.27			2.27			(0.31	)		158
Year ended 12/31/07		18.58		(0.11	)		(0.10	)		(0.21	)		—			18.37		(1.13	)		89,372		2.08			2.09			(0.56	)		129
Year ended 12/31/06		16.46		(0.11	)		2.23			2.12			—			18.58		12.88			85,521		2.15			2.16			(0.61	)		72
Year ended 12/31/05		15.78		(0.15	)		0.83			0.68			—			16.46		4.31			106,097		2.14			2.14			(0.96	)		91
��
Class C
Six months ended 06/30/10		13.81		(0.02	)		(1.40	)		(1.42	)		—			12.39		(10.28	)		11,248		2.29	(d)		2.29	(d)		(0.29	)(d)		48
Year ended 12/31/09		11.16		(0.03	)		2.68	(e)		2.65			—			13.81		23.75	(e)		13,265		2.39			2.39			(0.25	)		101
Year ended 12/31/08		18.33		(0.05	)		(7.12	)		(7.17	)		—			11.16		(39.12	)		12,483		2.27			2.27			(0.31	)		158
Year ended 12/31/07		18.55		(0.11	)		(0.11	)		(0.22	)		—			18.33		(1.19	)		27,396		2.08			2.09			(0.56	)		129
Year ended 12/31/06		16.43		(0.11	)		2.23			2.12			—			18.55		12.90			19,966		2.15			2.16			(0.61	)		72
Year ended 12/31/05		15.75		(0.15	)		0.83			0.68			—			16.43		4.32			22,860		2.14			2.14			(0.96	)		91
Class Y
Six months ended 06/30/10		16.03		0.06			(1.64	)		(1.58	)		—			14.45		(9.86	)		1,610		1.29	(d)		1.29	(d)		0.71	(d)		48
Year ended 12/31/09		12.90		0.10			3.12	(e)		3.22			(0.09	)		16.03		24.94	(e)		1,725		1.39			1.39			0.75			101
Year ended 12/31/08(f)		15.00		0.01			(2.11	)		(2.10	)		—			12.90		(14.00	)		1,098		1.50	(g)		1.50	(g)		0.46	(g)		158

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year. For the period ending December 31, 2007, the portfolio turnover calculation excludes the value of securities purchased of $116,070,354 and sold of $105,558,150 in the effort to realign the Fund’s portfolio holdings after the reorganization of AIM Opportunities II Fund and AIM Opportunities III Fund into the Fund.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $174,515, $16,985, $12,942 and $1,758 for Class A, Class B, Class C, and Class Y shares, respectively.
(e)	Includes litigation proceeds received during the period. Had the litigation proceeds not been received net gains (losses) on securities (both realized and unrealized) per share would have been $2.95, $2.53, $2.53, and $2.97 for Class A, Class B, Class C, and Class Y shares, respectively and total returns would have been lower.
(f)	Commencement date of October 3, 2008.
(g)	Annualized.

16        Invesco Select Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
A	$	1,000.00	$	900.60	$	7.26	$	1,017.16	$	7.70		1.54	%
B		1,000.00		896.70		10.77		1,013.44		11.43		2.29
C		1,000.00		897.20		10.77		1,013.44		11.43		2.29
Y		1,000.00		901.40		6.08		1,018.40		6.46		1.29

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

17        Invesco Select Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Funds Group (Invesco Funds Group) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Select Equity Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses, and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investment Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the quality and efficiency of the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

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

18        Invesco Select Equity Fund

B.  Fund Performance

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

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Multi-Cap Core Funds Index. The Board noted that the performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. Invesco Advisers advised the Board that the Fund was managed consistently with its mandate and that quantitative processes, such as those followed by the Fund, are typically challenged at market inflection points. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Class A shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including two mutual funds advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was above the effective fee rates for both of the mutual funds, one being an asset allocation fund which is not charged any advisory fees by Invesco Advisers pursuant to that fund’s advisory agreement.

  Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts with investment strategies comparable to those of the Fund.

  The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes one breakpoint, and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoint. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

19        Invesco Select Equity Fund

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– environmentally friendly. Go green by reducing the number of trees used to produce paper.

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– efficient. Stop waiting for regular mail. Your documents will be sent via email as soon as they’re available.

– easy. Download, save and print files using your home computer with a few clicks of your mouse.

This service is provided by Invesco Investment Services, Inc.

Invesco Privacy Policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important Notice Regarding Delivery of Security Holder Documents

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

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-01540 and 002-27334.

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

     Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

     If used after October 20, 2010, this report must be accompanied by a Quarterly Performance Review for the most recent quarter-end.

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

SEQ-SAR-1    Invesco Distributors, Inc.

Invesco Small Cap Equity Fund

Semiannual Report to Shareholders § June 30, 2010

2	Fund Performance
3	Letters to Shareholders
4	Schedule of Investments
7	Financial Statements
9	Notes to Financial Statements
15	Financial Highlights
16	Fund Expenses
17	Approval of Investment Advisory and Sub-Advisory Agreements

For the most current month-end Fund performance and commentary, please visit invesco.com/performance.

Unless otherwise noted, all data provided by Invesco.

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

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/09 to 6/30/10, 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	-0.84	%
Class B Shares	-1.26
Class C Shares	-1.15
Class R Shares	-0.86
Class Y Shares	-0.73
Institutional Class Shares	-0.51
S&P 500 Index▼ (Broad Market Index)	-6.64
Russell 2000 Index▼ (Style-Specific Index)	-1.95
Lipper Small-Cap Core Funds Index▼ (Peer Group Index)	-2.09

^▼Lipper Inc.

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

     The Russell 2000^® Index is an unmanaged index considered representative of small-cap stocks. The Russell 2000 Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

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

     The Fund is not managed to track the performance of any particular index, including the indexes defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.

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

Average Annual Total Returns

As of 6/30/10, including maximum applicable sales charges

Class A Shares
Inception (8/31/00)	2.95	%
5 Years	0.32
1 Year	8.88
Class B Shares
Inception (8/31/00)	2.95	%
5 Years	0.43
1 Year	9.32
Class C Shares
Inception (8/31/00)	2.80	%
5 Years	0.72
1 Year	13.32
Class R Shares
Inception	3.32	%
5 Years	1.23
1 Year	14.96
Class Y Shares
Inception	3.60	%
5 Years	1.57
1 Year	15.59
Institutional Class Shares
Inception	3.87	%
5 Years	2.04
1 Year	15.88

Class R shares incepted on June 3, 2002. Performance shown prior to that date is that of Class A shares, restated to reflect the higher 12b-1 fees applicable to Class R shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     Institutional Class shares incepted on April 29, 2005. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     The performance data quoted represent past performance and cannot guarantee comparable future

results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares was 1.52%, 2.27%, 2.27%, 1.77%, 1.27% and 0.90%, respectively. The expense ratios presented above may vary from the expense ratios presented in other

sections of this report that are based on expenses incurred during the period covered by this report.

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

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

2 Invesco Small Cap Equity Fund

Letters to Shareholders

Bruce Crockett

Dear Fellow Shareholders:
Although the global markets have improved since their lows of 2009, they remain challenging as governments around the world work to ensure the recovery remains on track. In this volatile environment, it’s comforting to know that your Board is committed to putting your interests first. We realize you have many choices when selecting a money manager, and your Board is working hard to ensure you feel you’ve made the right choice.
      To that end, I’m pleased to share the news that Invesco has completed its acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments. This acquisition greatly expands the breadth and depth of investment strategies we can offer you. As a result of this combination, Invesco gained investment talent for a number of investment strategies, including U.S. value equity, U.S. small cap growth equity, tax-free municipals, bank loans and others. Another key advantage of this combination is the highly complementary nature of our cultures. This is making it much easier to bring our organizations together while ensuring that our investment teams remain focused on managing your money.
      We view this addition as an excellent opportunity for you, our shareholders, to have access to an even broader range of well-diversified mutual funds. Now that the acquisition has closed, Invesco is working to bring the full value of the combined organization to shareholders. The key goals of this effort are to ensure that we have deeply resourced and focused investment teams, a compelling line of products and enhanced efficiency, which will benefit our shareholders now and over the long term.
      It might interest you to know that the mutual funds of the combined organization are overseen by a single fund Board composed of 17 current members, including four new members who joined us from Van Kampen/Morgan Stanley. This expanded Board will continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we have always maintained.
      As always, you are welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to representing you and serving your interests.

Sincerely,


Bruce L. Crockett
Independent Chair, Invesco Funds Board of Trustees

Philip Taylor

Dear Shareholders:
I’m pleased to present this report on your Fund’s performance for the six months ended June 30, 2010. Whether you’re a long-time Invesco client or a shareholder who joined us as a result of our June 1 acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, I’m glad you’re part of the Invesco family.
      At Invesco, we’re committed to providing you with timely information about market conditions, answering questions you may have about your investments and offering outstanding customer service. At our website, invesco.com/us, you can obtain unique market perspectives, useful investor education information and your Fund’s most recent quarterly commentary.
      I believe Invesco, as a leading global investment manager, is uniquely positioned to serve your needs.
      First, we are committed to investment excellence. We believe the best investment insights come from specialized investment teams with discrete investment perspectives, each operating under a disciplined philosophy and process with strong risk oversight and quality controls.
      Second, we offer you a broad range of investment products that can be tailored to your needs and goals. These products include single-country, regional and global investment options spanning major equity, fixed income and alternative asset classes.
      And third, we have just one focus: investment management. At Invesco, we believe that focus brings success, and that’s why investment management is all we do.
      If you have questions about your account, please contact one of our client services representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, please email me directly at phil@invesco.com.
      Thank you for investing with us.

Sincerely,


Philip Taylor
Senior Managing Director, Invesco

3 Invesco Small Cap Equity Fund

Schedule of Investments^(a)

June 30, 2010

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.07%
Advertising–1.05%
Interpublic Group of Cos., Inc. (The)(b)		666,689	$	4,753,493
Aerospace & Defense–1.91%
AAR Corp.(b)		210,396		3,522,029
Aerovironment Inc.(b)		100,754		2,189,384
Curtiss-Wright Corp.		102,262		2,969,689
				8,681,102
Agricultural Products–0.98%
Corn Products International, Inc.		146,506		4,439,132
Air Freight & Logistics–0.88%
UTI Worldwide, Inc.		321,390		3,978,808
Airlines–1.13%
Allegiant Travel Co.		84,321		3,599,664
Continental Airlines, Inc.–Class B(b)		69,261		1,523,742
				5,123,406
Apparel Retail–2.74%
Citi Trends Inc.(b)		138,095		4,548,849
Genesco Inc.(b)		161,450		4,247,750
J. Crew Group, Inc.(b)		99,616		3,666,865
				12,463,464
Apparel, Accessories & Luxury Goods–3.34%
Carter’s, Inc.(b)		169,228		4,442,235
Hanesbrands, Inc.(b)		198,947		4,786,665
Phillips-Van Heusen Corp.		127,908		5,918,303
				15,147,203
Application Software–3.19%
Parametric Technology Corp.(b)		265,798		4,165,055
Quest Software, Inc.(b)		254,629		4,593,507
TIBCO Software Inc.(b)		476,776		5,749,918
				14,508,480
Asset Management & Custody Banks–1.72%
Affiliated Managers Group, Inc.(b)		51,923		3,155,361
SEI Investments Co.		229,489		4,672,396
				7,827,757
Auto Parts & Equipment–1.09%
TRW Automotive Holdings Corp.(b)		179,198		4,940,489
Automotive Retail–0.73%
Penske Automotive Group, Inc.(b)		292,057		3,317,768
Biotechnology–0.25%
InterMune, Inc.(b)		122,805		1,148,227
Casinos & Gaming–0.82%
Bally Technologies Inc.(b)		114,983		3,724,299
Communications Equipment–2.86%
Comtech Telecommunications Corp.(b)		110,472		3,306,427
JDS Uniphase Corp.(b)		555,317		5,464,319
Lantronix Inc.–Wts., expiring 02/09/11(c)		2,606		0
Tellabs, Inc.		662,553		4,233,714
				13,004,460
Construction, Farm Machinery & Heavy Trucks–1.90%
Titan International, Inc.		532,941		5,313,422
Trinity Industries, Inc.		187,514		3,322,748
				8,636,170
Data Processing & Outsourced Services–0.94%
Wright Express Corp.(b)		143,738		4,269,019
Diversified Chemicals–0.91%
FMC Corp.		71,820		4,124,623
Diversified Metals & Mining–1.04%
Compass Minerals International, Inc.		67,374		4,735,045
Electrical Components & Equipment–3.14%
Baldor Electric Co.		134,758		4,862,069
Belden Inc.		193,534		4,257,748
GrafTech International Ltd.(b)		350,297		5,121,342
				14,241,159
Electronic Equipment & Instruments–1.67%
OSI Systems, Inc.(b)		196,126		5,446,419
Rofin-Sinar Technologies, Inc.(b)		102,821		2,140,733
				7,587,152
Environmental & Facilities Services–2.91%
ABM Industries Inc.		257,980		5,404,681
Team, Inc.(b)		269,884		3,521,986
Waste Connections, Inc.(b)		122,328		4,268,024
				13,194,691
Gas Utilities–1.49%
Energen Corp.		71,892		3,186,972
UGI Corp.		141,097		3,589,508
				6,776,480
Health Care Distributors–0.84%
Owens & Minor, Inc.		135,298		3,839,757

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

4        Invesco Small Cap Equity Fund

	Shares		Value
Health Care Equipment–0.84%
Invacare Corp.		183,533	$	3,806,474
Health Care Facilities–1.46%
Hanger Orthopedic Group, Inc.(b)		27,884		500,797
Universal Health Services, Inc.–Class B		160,302		6,115,521
				6,616,318
Health Care Services–1.69%
Emdeon, Inc.–Class A(b)		269,062		3,371,347
Gentiva Health Services, Inc.(b)		159,936		4,319,871
				7,691,218
Health Care Supplies–1.30%
Cooper Cos., Inc. (The)		148,648		5,914,704
Health Care Technology–0.70%
Omnicell, Inc.(b)		272,392		3,184,262
Home Furnishings–0.83%
Ethan Allen Interiors Inc.		268,114		3,750,915
Industrial Machinery–2.88%
Gardner Denver Inc.		106,527		4,750,039
IDEX Corp.		150,905		4,311,356
Valmont Industries, Inc.		55,197		4,010,614
				13,072,009
Insurance Brokers–0.87%
Arthur J. Gallagher & Co.		163,075		3,975,769
Integrated Telecommunication Services–1.76%
Alaska Communications Systems Group Inc.		454,481		3,858,544
Cincinnati Bell Inc.(b)		1,369,164		4,121,183
				7,979,727
Internet Software & Services–2.10%
GSI Commerce, Inc.(b)		177,988		5,126,054
Open Text Corp. (Canada)(b)		117,159		4,398,149
				9,524,203
Investment Banking & Brokerage–0.81%
KBW Inc.(b)		171,967		3,686,972
IT Consulting & Other Services–0.86%
CACI International Inc.–Class A(b)		92,467		3,927,998
Life Sciences Tools & Services–1.63%
Dionex Corp.(b)		61,157		4,553,750
eResearch Technology, Inc.(b)		360,144		2,837,935
				7,391,685
Metal & Glass Containers–0.91%
AptarGroup, Inc.		109,534		4,142,576
Movies & Entertainment–0.96%
World Wrestling Entertainment, Inc.–Class A		279,681		4,351,836
Office REIT’s–1.98%
Alexandria Real Estate Equities, Inc.		60,468		3,831,857
Digital Realty Trust, Inc.		89,700		5,173,896
				9,005,753
Oil & Gas Equipment & Services–2.82%
Complete Production Services, Inc.(b)		328,089		4,691,673
Dresser-Rand Group, Inc.(b)		142,841		4,506,634
Oceaneering International, Inc.(b)		80,246		3,603,045
				12,801,352
Oil & Gas Exploration & Production–3.63%
Arena Resources, Inc.(b)		109,491		3,492,763
Comstock Resources, Inc.(b)		149,173		4,135,076
Forest Oil Corp.(b)		173,266		4,740,558
Penn Virginia Corp.		204,349		4,109,458
				16,477,855
Packaged Foods & Meats–2.13%
Flowers Foods, Inc.		179,090		4,375,169
TreeHouse Foods, Inc.(b)		115,598		5,278,204
				9,653,373
Pharmaceuticals–3.16%
Biovail Corp. (Canada)		303,941		5,847,825
ViroPharma Inc.(b)		395,399		4,432,423
VIVUS, Inc.(b)		423,351		4,064,169
				14,344,417
Property & Casualty Insurance–1.46%
FPIC Insurance Group, Inc.(b)		118,343		3,035,498
Hanover Insurance Group Inc. (The)		82,328		3,581,268
				6,616,766
Regional Banks–7.08%
BancFirst Corp.		117,926		4,303,120
Columbia Banking System, Inc.		241,443		4,408,749
Commerce Bancshares, Inc.		113,399		4,081,230
Community Trust Bancorp, Inc.		125,824		3,158,182
First Financial Bankshares, Inc.		62,713		3,015,868
First Midwest Bancorp, Inc.		365,142		4,440,127
FirstMerit Corp.		224,241		3,841,248
Zions Bancorp.		226,877		4,893,737
				32,142,261
Restaurants–3.87%
Brinker International, Inc.		267,944		3,874,470
DineEquity, Inc.(b)		121,436		3,390,493
Papa John’s International, Inc.(b)		125,291		2,896,728

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

5        Invesco Small Cap Equity Fund

	Shares		Value
Restaurants–(continued)
Sonic Corp.(b)		334,808	$	2,594,762
Texas Roadhouse, Inc.(b)		380,548		4,802,516
				17,558,969
Semiconductor Equipment–1.93%
ATMI, Inc.(b)		41,570		608,585
Cymer, Inc.(b)		127,485		3,829,649
MKS Instruments, Inc.(b)		231,655		4,336,582
				8,774,816
Semiconductors–1.00%
Semtech Corp.(b)		276,918		4,533,148
Specialized REIT’s–2.62%
LaSalle Hotel Properties		256,196		5,269,952
Senior Housing Properties Trust		170,240		3,423,526
Universal Health Realty Income Trust		99,175		3,186,493
				11,879,971
Specialty Chemicals–1.33%
PolyOne Corp.(b)		531,950		4,479,019
Zep, Inc.		90,269		1,574,291
				6,053,310
Systems Software–1.66%
Ariba Inc.(b)		472,979		7,534,555
Technology Distributors–0.87%
Ingram Micro Inc.–Class A(b)		260,174		3,952,043
Trading Companies & Distributors–1.04%
Beacon Roofing Supply, Inc.(b)		261,981		4,720,898
Trucking–2.04%
Landstar System, Inc.		109,645		4,275,058
Old Dominion Freight Line, Inc.(b)		142,004		4,990,021
				9,265,079
Water Utilities–0.32%
Cascal N.V. (United Kingdom)		220,239		1,475,601
Total Common Stocks & Other Equity Interests (Cost $402,663,438)				436,269,017
Money Market Funds–3.78%
Liquid Assets Portfolio–Institutional Class(d)		8,570,263		8,570,263
Premier Portfolio–Institutional Class(d)		8,570,263		8,570,263
Total Money Market Funds (Cost $17,140,526)				17,140,526
TOTAL INVESTMENTS–99.85% (Cost $419,803,964)				453,409,543
OTHER ASSETS LESS LIABILITIES–0.15%				685,221
NET ASSETS–100.00%			$	454,094,764

Investment Abbreviations:

REIT	– Real Estate Investment Trust
Wts.	– Warrants

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	Non-income producing security acquired through a corporate action.
(d)	The money market fund and the Fund are affiliated by having the same investment adviser.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2010

Industrials	17.8	%
Information Technology	17.1
Financials	16.5
Consumer Discretionary	15.4
Health Care	11.9
Energy	6.5
Materials	4.2
Consumer Staples	3.1
Telecommunication Services	1.8
Utilities	1.8
Money Market Funds Plus Other Assets Less Liabilities	3.9

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

6        Invesco Small Cap Equity Fund

Statement of Assets and Liabilities

June 30, 2010

(Unaudited)

Assets:
Investments, at value (Cost $402,663,438)	$	436,269,017
Investments in affiliated money market funds, at value and cost		17,140,526
Total investments, at value (Cost $419,803,964)		453,409,543
Receivables for:
Investments sold		1,205,266
Fund shares sold		1,097,964
Dividends		565,417
Investment for trustee deferred compensation and retirement plans		46,948
Other assets		52,961
Total assets		456,378,099
Liabilities:
Payables for:
Investments purchased		325,983
Fund shares reacquired		1,339,260
Accrued fees to affiliates		409,852
Accrued other operating expenses		93,734
Trustee deferred compensation and retirement plans		114,506
Total liabilities		2,283,335
Net assets applicable to shares outstanding	$	454,094,764
Net assets consist of:
Shares of beneficial interest	$	481,672,802
Undistributed net investment income (loss)		(1,458,773	)
Undistributed net realized gain (loss)		(59,724,844	)
Unrealized appreciation		33,605,579
	$	454,094,764
Net Assets:
Class A	$	276,249,582
Class B	$	29,989,528
Class C	$	37,751,368
Class R	$	57,976,114
Class Y	$	11,400,533
Institutional Class	$	40,727,639
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		29,269,404
Class B		3,477,977
Class C		4,379,737
Class R		6,291,342
Class Y		1,201,422
Institutional Class		4,165,595
Class A:
Net asset value per share	$	9.44
Maximum offering price per share
(Net asset value of $9.44 divided by 94.50%)	$	9.99
Class B:
Net asset value and offering price per share	$	8.62
Class C:
Net asset value and offering price per share	$	8.62
Class R:
Net asset value and offering price per share	$	9.22
Class Y:
Net asset value and offering price per share	$	9.49
Institutional Class:
Net asset value and offering price per share	$	9.78

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

7        Invesco Small Cap Equity Fund

Statement of Operations

For the six months ended June 30, 2010

(Unaudited)

Investment income:
Dividends (net of foreign withholding taxes of $8,434)	$	2,233,517
Dividends from affiliated money market funds (includes securities lending income of $30,798)		36,353
Total investment income		2,269,870
Expenses:
Advisory fees		1,782,719
Administrative services fees		80,377
Custodian fees		5,595
Distribution fees:
Class A		361,374
Class B		192,001
Class C		205,499
Class R		147,757
Transfer agent fees — A, B, C, R and Y		713,442
Transfer agent fees — Institutional		16,237
Trustees’ and officers’ fees and benefits		15,969
Other		98,388
Total expenses		3,619,358
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(8,012	)
Net expenses		3,611,346
Net investment income (loss)		(1,341,476	)
Net realized gain from investment securities		1,269,802
Change in net unrealized appreciation (depreciation) of investment securities		(4,195,421	)
Net realized and unrealized gain (loss)		(2,925,619	)
Net increase (decrease) in net assets resulting from operations	$	(4,267,095	)

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

8        Invesco Small Cap Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2010 and the year ended December 31, 2009

(Unaudited)

	June 30,			December 31,
	2010			2009
Operations:
Net investment income (loss)	$	(1,341,476	)	$	(2,063,774	)
Net realized gain (loss)		1,269,802			(33,735,518	)
Change in net unrealized appreciation (depreciation)		(4,195,421	)		112,307,706
Net increase (decrease) in net assets resulting from operations		(4,267,095	)		76,508,414
Share transactions–net:
Class A		5,653,311			(39,847	)
Class B		(11,476,608	)		(15,759,627	)
Class C		(2,431,623	)		(2,262,893	)
Class R		4,053,737			21,956,253
Class Y		(535,617	)		6,638,350
Institutional Class		2,073,639			8,039,870
Net increase (decrease) in net assets resulting from share transactions		(2,663,161	)		18,572,106
Net increase (decrease) in net assets		(6,930,256	)		95,080,520
Net assets:
Beginning of period		461,025,020			365,944,500
End of period (includes undistributed net investment income (loss) of $(1,458,773) and $(117,297), respectively)	$	454,094,764		$	461,025,020

Notes to Financial Statements

June 30, 2010

(Unaudited)

NOTE 1—Significant Accounting Policies

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

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

The Fund currently consists of six different classes of shares: Class A, Class B, Class C, Class R, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class B shares and Class C shares are sold with a CDSC. Class R, Class Y and Institutional Class shares are sold at net asset value. Under certain circumstances, Class R shares are subject to a CDSC. Effective April 1, 2010, Class R shares are no longer subject to a CDSC. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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

A.

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

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

9        Invesco Small Cap Equity Fund

	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
	Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
	Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including Corporate Loans.
	Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain/loss for investments no longer held and as unrealized gain/loss for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the realized and unrealized net gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

10        Invesco Small Cap Equity Fund

	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan is shown as a footnote on the Statement of Assets and Liabilities, if any.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $250 million		0	.745%
Next $250 million		0	.73%
Next $500 million		0	.715%
Next $1.5 billion		0	.70%
Next $2.5 billion		0	.685%
Next $2.5 billion		0	.67%
Next $2.5 billion		0	.655%
Over $10 billion		0	.64%

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

  The Adviser has contractually agreed, through at least April 30, 2011, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 2.00%, 2.75%, 2.75%, 2.25%, 1.75% and 1.75%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

11        Invesco Small Cap Equity Fund

  Further, the Adviser has contractually agreed, through at least June 30, 2011, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

  For the six months ended June 30, 2010, the Adviser waived advisory fees of $5,833.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the six months ended June 30, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $545.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended June 30, 2010, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class R, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B, Class C and Class R shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class B and Class C shares and 0.50% of the average daily net assets of Class R shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the six months ended June 30, 2010, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended June 30, 2010, IDI advised the Fund that IDI retained $18,655 in front-end sales commissions from the sale of Class A shares and $0, $21,583, $1,373 and $0 from Class A, Class B, Class C and Class R shares, respectively, for CDSC imposed on redemptions by shareholders.

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

NOTE 3—Additional Valuation Information

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

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of June 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	453,409,543	$	—	$	—	$	453,409,543

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangements are comprised of (1) transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions and (2) custodian credits which result from periodic overnight cash balances at the custodian. For the six months ended June 30, 2010, the Fund received credits from these arrangements, which resulted in the reduction of the Fund’s total expenses of $1,634.

12        Invesco Small Cap Equity Fund

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

  During the six months ended June 30, 2010, the Fund paid legal fees of $1,848 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund had a capital loss carryforward as of December 31, 2009 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	11,520,684
December 31, 2017		45,227,679
Total capital loss carryforward	$	56,748,363

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2010 was $78,411,841 and $94,171,046, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	71,763,382
Aggregate unrealized (depreciation) of investment securities		(40,631,223	)
Net unrealized appreciation of investment securities	$	31,132,159
Cost of investments for tax purposes is $422,277,384.

13        Invesco Small Cap Equity Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended						Year ended
	June 30, 2010(a)						December 31, 2009
	Shares			Amount			Shares			Amount
Sold:
Class A		3,727,562		$	37,971,149			10,516,085		$	84,180,627
Class B		181,446			1,701,959			424,027			3,093,656
Class C		632,700			5,871,261			1,216,922			9,086,035
Class R		1,405,608			13,916,831			4,498,423			35,597,879
Class Y		209,372			2,124,022			3,722,554			29,567,670
Institutional Class		808,169			8,426,866			3,015,379			25,600,533
Automatic conversion of Class B shares to Class A shares:
Class A		785,577			8,092,155			1,118,101			8,882,239
Class B		(858,526	)		(8,092,155	)		(1,214,236	)		(8,882,239	)
Reacquired:
Class A		(4,008,250	)		(40,409,993	)		(11,689,879	)		(93,102,713	)
Class B		(553,501	)		(5,086,412	)		(1,376,744	)		(9,971,044	)
Class C		(891,669	)		(8,302,884	)		(1,573,176	)		(11,348,928	)
Class R		(1,004,252	)		(9,863,094	)		(1,690,444	)		(13,641,626	)
Class Y		(259,201	)		(2,659,639	)		(2,917,925	)		(22,929,320	)
Institutional Class		(605,250	)		(6,353,227	)		(2,003,335	)		(17,560,663	)
Net increase (decrease) in share activity		(430,215	)	$	(2,663,161	)		2,045,752		$	18,572,106

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 19% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

14        Invesco Small Cap Equity Fund

NOTE 10—Financial Highlights

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

																						Ratio of			Ratio of
						Net gains																expenses			expenses
						(losses)																to average			to average net			Ratio of net
	Net asset		Net			on securities						Distributions										net assets			assets without			investment
	value,		investment			(both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			realized			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)			unrealized)			operations			gains			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Class A
Six months ended 06/30/10	$	9.52	$	(0.02	)(c)	$	(0.06	)	$	(0.08	)	$	—		$	9.44		(0.84	)%	$	276,250		1.39	%(d)		1.39	%(d)		(0.45	)%(d)		17	%
Year ended 12/31/09		7.91		(0.03	)(c)		1.64			1.61			—			9.52		20.35			273,744		1.52			1.52			(0.41	)		40
Year ended 12/31/08		11.72		(0.02	)(c)		(3.67	)		(3.69	)		(0.12	)		7.91		(31.45	)		227,885		1.41			1.41			(0.19	)		51
Year ended 12/31/07		12.24		(0.05	)(c)		0.64			0.59			(1.11	)		11.72		4.92			343,993		1.37			1.43			(0.42	)		49
Year ended 12/31/06		12.26		(0.07	)(c)		2.16			2.09			(2.11	)		12.24		16.83			245,868		1.49			1.60			(0.55	)		56
Year ended 12/31/05		12.80		(0.10	)		0.96			0.86			(1.40	)		12.26		6.58			218,915		1.51			1.62			(0.84	)		52
Class B
Six months ended 06/30/10		8.73		(0.05	)(c)		(0.06	)		(0.11	)		—			8.62		(1.26	)		29,990		2.14	(d)		2.14	(d)		(1.20	)(d)		17
Year ended 12/31/09		7.30		(0.09	)(c)		1.52			1.43			—			8.73		19.59			41,092		2.27			2.27			(1.16	)		40
Year ended 12/31/08		10.92		(0.09	)(c)		(3.41	)		(3.50	)		(0.12	)		7.30		(32.01	)		50,220		2.16			2.16			(0.94	)		51
Year ended 12/31/07		11.56		(0.14	)(c)		0.61			0.47			(1.11	)		10.92		4.16			107,417		2.12			2.18			(1.17	)		49
Year ended 12/31/06		11.77		(0.17	)(c)		2.07			1.90			(2.11	)		11.56		15.90			126,111		2.24			2.35			(1.30	)		56
Year ended 12/31/05		12.42		(0.19	)		0.94			0.75			(1.40	)		11.77		5.89			131,547		2.21			2.32			(1.54	)		52
Class C																								��
Six months ended 06/30/10		8.72		(0.05	)(c)		(0.05	)		(0.10	)		—			8.62		(1.15	)		37,751		2.14	(d)		2.14	(d)		(1.20	)(d)		17
Year ended 12/31/09		7.30		(0.09	)(c)		1.51			1.42			—			8.72		19.45			40,466		2.27			2.27			(1.16	)		40
Year ended 12/31/08		10.92		(0.09	)(c)		(3.41	)		(3.50	)		(0.12	)		7.30		(32.01	)		36,470		2.16			2.16			(0.94	)		51
Year ended 12/31/07		11.56		(0.14	)(c)		0.61			0.47			(1.11	)		10.92		4.16			53,684		2.12			2.18			(1.17	)		49
Year ended 12/31/06		11.76		(0.17	)(c)		2.08			1.91			(2.11	)		11.56		16.00			57,221		2.24			2.35			(1.30	)		56
Year ended 12/31/05		12.42		(0.19	)		0.93			0.74			(1.40	)		11.76		5.81			55,009		2.21			2.32			(1.54	)		52
Class R
Six months ended 06/30/10		9.30		(0.03	)(c)		(0.05	)		(0.08	)		—			9.22		(0.86	)		57,976		1.64	(d)		1.64	(d)		(0.70	)(d)		17
Year ended 12/31/09		7.75		(0.05	)(c)		1.60			1.55			—			9.30		20.00			54,795		1.77			1.77			(0.66	)		40
Year ended 12/31/08		11.51		(0.04	)(c)		(3.60	)		(3.64	)		(0.12	)		7.75		(31.59	)		23,879		1.66			1.66			(0.44	)		51
Year ended 12/31/07		12.07		(0.09	)(c)		0.64			0.55			(1.11	)		11.51		4.65			26,251		1.62			1.68			(0.67	)		49
Year ended 12/31/06		12.15		(0.11	)(c)		2.14			2.03			(2.11	)		12.07		16.47			27,946		1.74			1.85			(0.80	)		56
Year ended 12/31/05		12.71		(0.13	)		0.97			0.84			(1.40	)		12.15		6.48			17,862		1.71			1.82			(1.04	)		52
Class Y
Six months ended 06/30/10		9.56		(0.01	)(c)		(0.06	)		(0.07	)		—			9.49		(0.73	)		11,401		1.14	(d)		1.14	(d)		(0.20	)(d)		17
Year ended 12/31/09		7.91		(0.01	)(c)		1.66			1.65			—			9.56		20.86			11,957		1.27			1.27			(0.16	)		40
Year ended 12/31/08(e)		9.62		0.00			(1.59	)		(1.59	)		(0.12	)		7.91		(16.48	)		3,534		1.29	(f)		1.30	(f)		(0.07	)(f)		51
Institutional Class
Six months ended 06/30/10		9.83		0.00	(c)		(0.05	)		(0.05	)		—			9.78		(0.51	)		40,728		0.90	(d)		0.90	(d)		0.04	(d)		17
Year ended 12/31/09		8.12		0.02	(c)		1.69			1.71			—			9.83		21.06			38,971		0.90			0.90			0.21			40
Year ended 12/31/08		11.96		0.04	(c)		(3.76	)		(3.72	)		(0.12	)		8.12		(31.07	)		23,957		0.84			0.84			0.37			51
Year ended 12/31/07		12.40		0.01	(c)		0.66			0.67			(1.11	)		11.96		5.50			38,463		0.84			0.89			0.11			49
Year ended 12/31/06		12.33		0.01	(c)		2.17			2.18			(2.11	)		12.40		17.45			17,122		0.90			1.01			0.04			56
Year ended 12/31/05(e)		11.69		(0.01	)		2.05			2.04			(1.40	)		12.33		17.31			4,712		0.87	(f)		0.98	(f)		(0.20	)(f)		52

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns do not include sales charges and are not annualized for periods less than one year, if applicable.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period December 31, 2007, the portfolio turnover calculation excludes the value of securities purchased of $128,317,933 and sold of $144,885,693 in the effort to realign the Fund’s portfolio holding after the reorganization of AIM Opportunities I Fund into the Fund.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $291,495, $38,718, $41,440, $59,593, $12,773 and $43,307 for Class A, Class B, Class C, Class R, Class Y and Institutional Class shares, respectively.
(e)	Commencement date of October 3, 2008 and April 29, 2008 for Class Y and Institutional Class shares, respectively.
(f)	Annualized.

15        Invesco Small Cap Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2010 through June 30, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

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

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(01/01/10)		(06/30/10)1		Period2		(06/30/10)		Period2		Ratio
A	$	1,000.00	$	991.60	$	6.86	$	1,017.90	$	6.95		1.39	%
B		1,000.00		987.40		10.55		1,014.18		10.69		2.14
C		1,000.00		988.50		10.55		1,014.18		10.69		2.14
R		1,000.00		991.40		8.10		1,016.66		8.20		1.64
Y		1,000.00		992.70		5.63		1,019.14		5.71		1.14
Institutional		1,000.00		994.90		4.45		1,020.33		4.51		0.90

1	The actual ending account value is based on the actual total return of the Fund for the period January 1, 2010 through June 30, 2010, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

16        Invesco Small Cap Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Funds Group (Invesco Funds Group) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Small Cap Equity Fund (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 15-16, 2010, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 85% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2010. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided and determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and that the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the Fund’s investment advisory agreement and sub-advisory contracts is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the series portfolios of the funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risk of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to all their assigned funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer, which is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure that they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board considered the information provided to them as part of the contract renewal process as well as information provided at their meetings throughout the year as part of their ongoing oversight of the Fund, and did not identify any information that was controlling. One Trustee may weigh a particular piece of information differently than another Trustee. The Trustees recognized that the advisory arrangements and resulting advisory fees for the Fund and the other Invesco Funds are the result of years of review and negotiation between the Trustees and Invesco Advisers, that the Trustees may focus to a greater extent on certain aspects of these arrangements in some years than in others, and that the Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 16, 2010, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

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

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services. The Board’s review of the qualifications of Invesco Advisers to provide these services included the Board’s consideration of Invesco Advisers’ portfolio and product review process, various back office support functions provided by Invesco Advisers and its affiliates, and Invesco Advisers’ equity and fixed income trading operations. The Board concluded that the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers are appropriate and that Invesco Advisers currently is providing satisfactory advisory services in accordance with the terms of the Fund’s investment advisory agreement. In addition, based on their ongoing meetings throughout the year with the Fund’s portfolio manager or managers, the Board concluded that these individuals are competent and able to continue to carry out their responsibilities under the Fund’s investment advisory agreement or sub-advisory contracts, as applicable.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered the steps that Invesco Advisers and its affiliates continue to take to improve the services they provide to the Invesco Funds in the areas of investment performance, product line diversification, distribution, fund operations, shareholder services and compliance. The Board considered Invesco Advisers’ independent credit analysis and investment risk management procedures as they apply to the Fund and the other Invesco Funds. The Board also considered the acquisition by Invesco Ltd. of the retail mutual fund business of Morgan Stanley and how that is expected to affect product line diversification. The Board also considered assurances from Invesco Advisers that it does not expect the acquisition to diminish the quality of services provided to the Invesco Funds and that it plans to increase staffing. The Board concluded that the quality and efficiency of the services Invesco Advisers and its affiliates provide to the Invesco Funds support the Board’s approval of the continuance of the Fund’s investment advisory agreement.

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

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund performance as a relevant factor in

17        Invesco Small Cap Equity Fund

considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of all funds in the Lipper performance universe that are not managed by Invesco Advisers or an Affiliated Sub-Adviser and against the Lipper Small-Cap Core Funds Index. The Board noted that the performance of Class A shares of the Fund was in the fifth quintile of its performance universe for the one year period, the third quintile for the three year period and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board noted that the investment management team has a conservative, quality bias that underperformed during the low-quality rally in 2009. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group that are not managed by Invesco Advisers or an Affiliated Sub-Adviser, at a common asset level. The Board noted that the contractual advisory fee rate for Class A shares of the Fund was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in determining contractual fee rates, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

  The Board also compared the Fund’s effective fee rate (the advisory fee after any advisory fee waivers and before any expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, including one mutual fund advised by Invesco Advisers. The Board noted that the Fund’s effective fee rate was below the effective fee rate for the other mutual fund. The Board also noted that Invesco Advisers serves as a sub-adviser to two mutual funds and that the effective fee sub-advisory rate is below the effective fee advisory rate for the Fund.

  Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts in a manner substantially similar to the management of the Fund.

  The Board also noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2011 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers. After taking account of the Fund’s contractual advisory and sub-advisory fee rates, the comparative advisory fee information discussed above and other relevant factors, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered whether the Fund benefits from such economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund’s contractual advisory fee schedule includes seven breakpoints and that the Fund would share in economies of scale as the Fund’s net assets exceeded the breakpoints. The Board also noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of all of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit with respect to the services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board also noted that Invesco Advisers continues to support the Invesco Funds with spending on regulatory compliance, attribution systems, global trading initiatives and a focus on building out the product line-up for the benefit of all shareholders of the Invesco Funds. The Board concluded that the Fund’s fees are fair and reasonable, and that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive in light of the nature, quality and extent of the services provided and the support provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts and concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates resulting from the relationship with the Fund, including the fees received by Invesco Advisers and its affiliates for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed by Invesco Advisers and its affiliates to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board. The Board concluded that Invesco Advisers and its affiliates are providing these services in accordance with the terms of their contracts, and are qualified to continue to provide these services to the Fund.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers will receive advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through at least June 30, 2011, the advisory fees payable by the Fund in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

18        Invesco Small Cap Equity Fund

Invesco Privacy Policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

      Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important Notice Regarding Delivery of Security Holder Documents

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

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-01540 and 002-27334.

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

     Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2010, is available at our website, invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

If used after October 20, 2010, this report must be accompanied by a Quarterly Performance Review for the most recent quarter-end.

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

SCE-SAR-1 Invesco Distributors, Inc.

ITEM 2. CODE OF ETHICS.

The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 11. CONTROLS AND PROCEDURES.

(a) As of June 16, 2010, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of June 16, 2010, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that

	material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.
(b)	There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

12(a) (1)	Not applicable.
12(a) (2)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
12(a) (3)	Not applicable.
12(b)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: AIM Funds Group (Invesco Funds Group)

By:	/s/ Philip A. TaylorPhilip A. Taylor
	Principal Executive Officer
Date:	September 3, 2010

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Philip A. TaylorPhilip A. Taylor
	Principal Executive Officer
Date:	September 3, 2010
By:	/s/ Sheri MorrisSheri Morris
	Principal Financial Officer
Date:	September 3, 2010

EXHIBIT INDEX

12(a) (1)	Not applicable.
12(a) (2)	Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
12(a) (3)	Not applicable.
12(b)	Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.