Aim Funds Group N-CSR Certified 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: 12/31/10

Item 1. Reports to Stockholders.

Annual Report to Shareholders December 31, 2010

Invesco Basic Balanced Fund

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
16	Financial Statements
18	Notes to Financial Statements
27	Financial Highlights
28	Auditor's Report
29	Fund Expenses
30	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website — invesco.com/us — offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus — investment management — Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best — manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change — investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial adviser to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial adviser will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

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

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Basic Balanced Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds. As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisers with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Basic Balanced Fund

Management’s Discussion of Fund Performance

Performance summary

For the 12 months ended December 31, 2010, Invesco Basic Balanced Fund underperformed its broad market and style-specific indexes, the S&P 500 Index and the Custom Basic Balanced Index, respectively. Because the Fund uses a bottom-up stock selection approach, stock selection in various sectors was the primary driver of the Fund’s relative performance.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 12/31/09 to 12/31/10, 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	7.73	%
Class B Shares	6.96
Class C Shares	6.96
Class R Shares	7.47
Class Y Shares	8.00
Investor Class Shares	7.83
Institutional Class Shares	8.26
S&P 500 Index▼ (Broad Market Index)	15.08
Custom Basic Balanced Index■ (Style-Specific Index)	12.39
Lipper Mixed-Asset Target Allocation Moderate Funds Index▼ (Peer Group Index)	11.54

^▼ Lipper Inc.;^■Invesco, Lipper Inc.

How we invest

We call our investment philosophy “value with a catalyst.” We believe that undervalued companies which are experiencing positive changes (i.e., “catalysts”) have the potential to generate long-term stock price growth for shareholders. We generally seek to identify companies that are out of favor with investors, underearning relative to their potential and attractively valued. For these companies, we attempt to identify catalysts that may improve the financial results and/or correct the undervaluation. Examples of catalysts typically include improved operational efficiency, changing industry dynamics and/or a change in management.

     We initially identify potential investments through a series of quantitative screens including, but not limited to, return on capital and enterprise value to sales metrics. We then conduct fundamental research on the most attractive opportunities. The research process includes a thorough review of a company’s financial statements, an evalua-

tion of its competitive position and stability, and meetings with its executives. During the research process, we also value the company under various scenarios to determine if the investment is an attractive opportunity relative to its risks. This is also where we typically identify the positive catalyst, a pre-requisite for potential investment. Finally, we generally set a price target for a stock based on normalized earnings and historical valuation multiples.

     In short, our objective is to exploit negative sentiment toward a company’s stock by analyzing the company’s operations in the context of a cyclical environment and identifying one or more catalysts that may improve the company’s financial performance. Improved financial performance, in turn, has the potential to drive the company’s stock price higher.

     We typically sell an investment when it reaches our estimate of fair value or when we identify a more attractive investment opportunity.

     The Fund also invests in investment grade corporate bonds and U.S. government-issued bonds. The fixed income portion of the portfolio has the potential to reduce volatility compared to an equity-only portfolio and the potential to provide some downside protection during periods of stock market volatility.

Market conditions and your Fund

Equity markets were choppy during the fiscal year as investors weighed the competing issues of solid corporate profits and soft macroeconomic data. Corporate earnings were largely positive but were often overshadowed by concerns about high unemployment, weak consumer spending, soft housing data and the possibility of additional U.S. Federal Reserve accommodation. After rising through April, major equity indexes sold off precipitously in May as the sovereign debt crisis unfolded in the eurozone while U.S. economic indicators remained weak, prompting fears of a “double-dip” recession. Uncertainty created by the debt crisis — combined with subdued employment, consumer spending and housing data — added to concerns that the recovery was slowing. Just as abruptly, however, the markets reversed course starting in September and rallied through the end of the year on modestly better economic news.

     Major equity indexes produced positive returns for the fiscal year, and all 10 sectors of the S&P 500 Index posted gains. More economically sensitive sectors such as consumer discretionary and industrials had the highest returns, while less economically sensitive sectors such as health care had some of the lowest returns.

     The broad U.S. bond market, as measured by the Barclays Capital U.S. Aggregate Index, generated positive total returns for the 12 months ended December 31, 2010. At the beginning of the year, falling interest rates across maturities combined with tighter credit spreads (the difference between the yields of U.S. Treasuries and other types of fixed

Portfolio Composition

By security type
Common Stocks & Other Equity Interests	69.8	%
Bonds & Notes	12.6
U.S. Treasury Securities	6.1
U.S. Government Sponsored
Mortgage-Backed Securities	3.0
Asset-Backed Securities	0.2
Money Market Funds Plus Other Assets Less Liabilities	8.3

Top 10 Equity Holdings*

1. JPMorgan Chase & Co.	3.3	%
2. General Electric Co.	2.7
3. Marsh & McLennan Cos., Inc.	2.4
4. Viacom Inc.-Class B	2.0
5. Occidental Petroleum Corp.	1.8
6. Anadarko Petroleum Corp.	1.6
7. eBay Inc.	1.6
8. American Electric Power Co., Inc.	1.4
9. Tyco International Ltd.	1.4
10. Royal Dutch Shell PLC-ADR	1.4

Total Net Assets	$621.2 million
Total Number of Holdings*		431

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

* Excluding money market fund holdings.

4 Invesco Basic Balanced Fund

income securities that carry credit risk) caused bond prices to rise. Conversely, during the fourth quarter, a marked rise in interest rates negatively affected bond prices, particularly U.S. Treasuries.

     Stock selection in the health care sector contributed to the Fund’s relative performance. The Fund owned Genzyme, a biotechnology company that received a takeover offer from Sanofiaventis (not a Fund holding). As a result, Genzyme rose significantly on the news, and we sold our position.

     The utilities sector was also a contributor. The Fund was underweight in this sector versus the equity portion of its style-specific index, and we avoided many of deregulated utility companies, which performed poorly.

     Offsetting these positive results was the negative impact of the information technology and financials sectors.

     The Fund was overweight in technology stocks throughout the reporting period, and most of our exposure was to hardware and equipment and software services stocks. Stock selection in hardware and equipment detracted the most from relative performance. Fund holding Hewlett Packard sold off on the news its chief executive officer was leaving the company due to expense-related improprieties. At the end of the reporting period, the Fund continued to own the stock.

     Although the Fund was underweight in the financials sector relative to its equity style-specific index during the reporting period, we cautiously increased our exposure to some banks and capital markets companies that we believed had improved their balance sheets and were better capitalized. Also, real estate was a strong-performing asset class during the reporting period. The Fund had no exposure to this asset class, however, and therefore did not benefit from real estate’s strong performance.

     The Fund’s fixed income holdings produced positive returns for the reporting period, despite a marked rise in interest rates late in the year that caused bond prices to fall. Fixed income performance was mainly due to a sustained overweight position in investment grade corporate bonds. A consistent underweight position in U.S. government securities also aided both the Fund’s absolute and relative performance as investor preference for credit risk and rising interest rates late in the year dampened returns for U.S. government bonds.

     The Fund used active duration and yield curve positioning to manage risk and generate outperformance versus the

bond portion of its style-specific index. U.S. Treasury futures were the main tool used in managing the portfolio’s duration. The contribution to relative performance from both duration and yield curve positioning was, overall, negligible for the year.

     Equity markets experienced a strong recovery during the period covered by this report. We believe that the market volatility that occurred during 2010 will continue to create opportunities to invest in companies with attractive valuations and strong fundamentals. We believe that ultimately those valuations and fundamentals may be reflected in those companies’ stock prices.

     As always, we would like to caution investors against making investment decisions based on short-term performance. We recommend that you consult your financial adviser to discuss your individual financial program.

     Thank you for your investment in Invesco Basic Balanced Fund and for sharing our long-term investment horizon.

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Thomas Bastian
Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Basic Balanced Fund. He joined Invesco in 2010. Mr. Bastian earned a B.A. in accounting from St. John’s University and an M.B.A. in finance from the University of Michigan.

Cynthia Brien
Chartered Financial Analyst, portfolio manager, is manager of Invesco Basic Balanced Fund. She joined Invesco in 1996. Ms. Brien earned a B.B.A. from The University of Texas at Austin.

Chuck Burge
Portfolio manager, is manager of Invesco Basic Balanced Fund. He joined Invesco in 2002. Mr. Burge earned a B.S. in economics from Texas A&M University and an M.B.A. in finance and accounting from Rice University.

John Craddock
Chartered Financial Analyst, portfolio manager, is manager of Invesco Basic Balanced Fund. He joined Invesco in 1999. Mr. Craddock earned a B.S. with honors in mechanical engineering from Clemson University and an M.B.A. from Georgia Tech’s Dupree School of Management with a concentration in finance.

Mark Laskin
Chartered Financial Analyst, portfolio manager, is manager of Invesco Basic Balanced Fund. He joined Invesco in 2010. Mr. Laskin earned a B.A. in history from Swarthmore College and an M.B.A. and an M.A. from the Wharton School and the Lauder Institute, respectively, of the University of Pennsylvania.

Mary Jayne Maly
Chartered Financial Analyst, portfolio manager, is manager of Invesco Basic Balanced Fund. She joined Invesco in 2010. Ms. Maly earned a B.A. from the University of Pittsburgh and an M.B.A. from the American Graduate School of International Management.

Sergio Marcheli
Portfolio manager, is manager of Invesco Basic Balanced Fund. He joined Invesco in 2010. Mr. Marcheli earned a B.B.A. from the University of Houston and an M.B.A. from the University of St. Thomas.

James Roeder
Chartered Financial Analyst, portfolio manager, is manager of Invesco Basic Balanced Fund. He joined Invesco in 2010. Mr. Roeder earned a B.S. in accounting from Clemson University and an M.B.A. in economics and finance from the University of Chicago Graduate School of Business. He is also a Certified Public Accountant.

5 Invesco Basic Balanced Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Classes since Inception

Fund data from 9/28/01, index data from 9/30/01

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not. Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000.

6 Invesco Basic Balanced Fund

Average Annual Total Returns

As of 12/31/10, including maximum applicable sales charges

Class A Shares
Inception (9/28/01)	2.50	%
5 Years	-0.93
1 Year	1.82
Class B Shares
Inception (9/28/01)	2.50	%
5 Years	-0.93
1 Year	1.96
Class C Shares
Inception (9/28/01)	2.40	%
5 Years	-0.56
1 Year	5.96
Class R Shares
Inception	2.90	%
5 Years	-0.06
1 Year	7.47
Class Y Shares
Inception	3.18	%
5 Years	0.28
1 Year	8.00
Investor Class Shares
Inception	3.13	%
5 Years	0.19
1 Year	7.83
Institutional Class Shares
Inception	3.48	%
5 Years	0.66
1 Year	8.26

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. 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.

7 Invesco Basic Balanced Fund

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

n	Unless otherwise stated, information presented in this report is as of December 31, 2010, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class R shares are available only to certain retirement plans. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.
n	All Investor Class shares are closed to new investors. Contact your financial adviser about purchasing our other share classes.
n	Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Please see the prospectus for more information.

Principal risks of investing in the Fund

n	The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.
n	Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on their individual characteristics, including duration.
n	The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.

n	The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.
n	Value stocks may react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. Value stocks tend to be inexpensive relative to their earnings or assets compared to other types of stocks and may never realize their full value. Value stocks tend to be currently out-of-favor with many investors.

About indexes used in this report

n	The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
n	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.
n	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.
n	The Barclays Capital U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market.
n	The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.

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

Other information

n	The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
n	CPA® and Certified Public Accountant® are trademarks owned by the American Institute of Certified Public Accountants.
n	The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.
n	Industry 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.

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 Nasdaq Symbols

Class A Shares	BBLAX
Class B Shares	BBLBX
Class C Shares	BBLCX
Class R Shares	BBLRX
Class Y Shares	BBLYX
Investor Class Shares	BBLTX
Institutional Class Shares	BBLIX

8 Invesco Basic Balanced Fund

Schedule of Investments^(a)

December 31, 2010

	Shares		Value
Common Stocks & Other Equity Interests–69.80%
Air Freight & Logistics–0.37%
FedEx Corp.		24,823	$	2,308,787
Asset Management & Custody Banks–0.77%
State Street Corp.		103,140		4,779,508
Automobile Manufacturers–1.17%
Ford Motor Co.(b)		234,273		3,933,444
General Motors Co.(b)		89,862		3,312,313
				7,245,757
Cable & Satellite–2.24%
Comcast Corp.,–Class A		360,768		7,926,073
Time Warner Cable Inc.		90,975		6,007,079
				13,933,152
Communications Equipment–0.73%
Cisco Systems, Inc.(b)		224,883		4,549,383
Computer Hardware–1.95%
Dell Inc.(b)		396,627		5,374,296
Hewlett-Packard Co.		160,060		6,738,526
				12,112,822
Consumer Electronics–0.83%
Sony Corp.–ADR (Japan)		143,657		5,129,991
Data Processing & Outsourced Services–0.77%
Western Union Co. (The)		256,835		4,769,426
Diversified Banks–1.16%
US Bancorp		107,958		2,911,627
Wells Fargo & Co.		138,940		4,305,751
				7,217,378
Diversified Chemicals–1.34%
Dow Chemical Co. (The)		120,053		4,098,609
PPG Industries, Inc.		50,468		4,242,845
				8,341,454
Diversified Support Services–0.39%
Cintas Corp.		85,978		2,403,945
Drug Retail–1.05%
Walgreen Co.		167,348		6,519,878
Electric Utilities–2.83%
American Electric Power Co., Inc.		249,735		8,985,465
Edison International		72,082		2,782,365
Entergy Corp.		38,121		2,700,111
FirstEnergy Corp.		83,902		3,106,052
				17,573,993
Food Distributors–0.65%
Sysco Corp.		137,773		4,050,526
Health Care Distributors–0.48%
Cardinal Health, Inc.		78,206		2,996,072
Health Care Equipment–0.89%
Covidien PLC (Ireland)		121,248		5,536,184
Home Improvement Retail–1.00%
Home Depot, Inc. (The)		177,199		6,212,597
Household Products–1.33%
Procter & Gamble Co. (The)		128,573		8,271,101
Human Resource & Employment Services–0.86%
Manpower Inc.		48,329		3,033,128
Robert Half International, Inc.		74,890		2,291,634
				5,324,762
Hypermarkets & Super Centers–0.70%
Wal-Mart Stores, Inc.		80,367		4,334,192
Industrial Conglomerates–4.15%
General Electric Co.		919,765		16,822,502
Tyco International Ltd.		215,797		8,942,628
				25,765,130
Industrial Machinery–1.19%
Dover Corp.		39,684		2,319,530
Ingersoll-Rand PLC (Ireland)		107,863		5,079,269
				7,398,799
Insurance Brokers–2.37%
Marsh & McLennan Cos., Inc.		538,624		14,725,980
Integrated Oil & Gas–5.82%
ConocoPhillips(b)		51,124		3,481,544
��
Exxon Mobil Corp.		64,612		4,724,429
Hess Corp.		98,874		7,567,816
Occidental Petroleum Corp.		117,135		11,490,944
Royal Dutch Shell PLC–ADR (United Kingdom)		133,442		8,911,257
				36,175,990
Integrated Telecommunication Services–0.79%
Verizon Communications Inc.		137,799		4,930,448

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

9        Invesco Basic Balanced Fund

	Shares		Value
Internet Software & Services–2.42%
eBay Inc.(b)		359,008	$	9,991,193
Yahoo! Inc.(b)		303,104		5,040,619
				15,031,812
Investment Banking & Brokerage–2.07%
Charles Schwab Corp. (The)		376,360		6,439,520
LPL Investment Holdings, Inc.(b)		13,344		485,321
Morgan Stanley(b)		217,919		5,929,576
				12,854,417
IT Consulting & Other Services–0.63%
Amdocs Ltd.(b)		143,439		3,940,269
Life & Health Insurance–0.62%
Principal Financial Group, Inc.		117,603		3,829,154
Managed Health Care–1.30%
UnitedHealth Group Inc.		223,670		8,076,724
Movies & Entertainment–3.31%
Time Warner Inc.		244,947		7,879,945
Viacom Inc.–Class B		319,718		12,664,030
				20,543,975
Office Services & Supplies–0.47%
Avery Dennison Corp.		69,033		2,922,857
Oil & Gas Equipment & Services–1.47%
Cameron International Corp.(b)		35,082		1,779,710
Schlumberger Ltd.		87,665		7,320,027
				9,099,737
Oil & Gas Exploration & Production–2.78%
Anadarko Petroleum Corp.		133,121		10,138,495
Devon Energy Corp.		60,438		4,744,988
Noble Energy, Inc.		27,867		2,398,791
				17,282,274
Oil & Gas Storage & Transportation–0.22%
Williams Cos., Inc. (The)		56,064		1,385,902
Other Diversified Financial Services–5.66%
Bank of America Corp.(b)		637,432		8,503,343
Citigroup Inc.(b)		1,268,935		6,002,062
JPMorgan Chase & Co.		486,647		20,643,566
				35,148,971
Packaged Foods & Meats–1.90%
Kraft Foods Inc.–Class A		197,087		6,210,211
Unilever N.V. New York Shares (Netherlands)		178,081		5,591,744
				11,801,955
Personal Products–1.10%
Avon Products, Inc.(b)		235,469		6,842,729
Pharmaceuticals–4.16%
Abbott Laboratories		61,525		2,947,663
Bristol-Myers Squibb Co.		260,678		6,902,753
Merck & Co., Inc.		109,577		3,949,155
Pfizer Inc.(b)		447,298		7,832,188
Roche Holdings AG–ADR (Switzerland)		113,972		4,187,901
				25,819,660
Property & Casualty Insurance–0.53%
Chubb Corp.		55,477		3,308,648
Regional Banks–2.11%
BB&T Corp.		95,715		2,516,347
Fifth Third Bancorp		172,244		2,528,542
PNC Financial Services Group, Inc.		133,220		8,089,119
				13,134,008
Semiconductors–0.67%
Intel Corp.		199,268		4,190,606
Soft Drinks–0.89%
Coca-Cola Co. (The)		50,983		3,353,152
Coca-Cola Enterprises, Inc.		86,087		2,154,758
				5,507,910
Specialty Chemicals–0.29%
LyondellBasell Industries N.V.–Class A (Netherlands)(b)		52,349		1,800,806
Systems Software–0.18%
Microsoft Corp.(b)		39,900		1,114,008
Wireless Telecommunication Services–1.19%
Vodafone Group PLC–ADR (United Kingdom)		278,620		7,363,927
Total Common Stocks & Other Equity Interests (Cost $362,442,881)				433,607,604
	Principal
	Amount
Bonds & Notes–12.58%
Aerospace & Defense–0.04%
Raytheon Co., Sr. Unsec. Notes, 1.63%, 10/15/15	$	230,000		221,022
Agricultural Products–0.05%
Corn Products International Inc., Sr. Unsec. Notes, 6.63%, 04/15/37		315,000		329,465

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

10        Invesco Basic Balanced Fund

	Principal
	Amount		Value
Airlines–0.11%
Continental Airlines Inc., Series 2010-1, Class A, Sec. Pass Through Ctfs., 4.75%, 01/12/21	$	375,000	$	375,703
Delta Air Lines, Inc., Series 2001-1, Class A-2, Sr. Sec. Pass Through Ctfs., 7.11%, 09/18/11		300,000		311,625
				687,328
Automotive Retail–0.26%
Advance Auto Parts Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/20		450,000		467,437
AutoZone Inc., Sr. Unsec. Notes, 5.88%, 10/15/12		1,040,000		1,117,465
				1,584,902
Brewers–0.29%
Anheuser-Busch InBev Worldwide Inc., Sr. Unsec. Gtd. Global Notes, 2.50%, 03/26/13		260,000		265,684
3.63%, 04/15/15		490,000		507,305
5.38%, 01/15/20		950,000		1,036,180
				1,809,169
Broadcasting–0.37%
CBS Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 04/15/20		950,000		1,011,141
COX Communications Inc., Sr. Unsec. Bonds, 8.38%, 03/01/39(c)		640,000		827,051
Sr. Unsec. Global Notes, 5.45%, 12/15/14		400,000		440,083
				2,278,275
Cable & Satellite–0.20%
DIRECTV Holdings LLC/DIRECTV Financing Co. Inc., Sr. Unsec. Gtd. Global Notes, 7.63%, 05/15/16		605,000		673,062
Time Warner Cable Inc., Sr. Unsec. Gtd. Notes, 5.88%, 11/15/40		565,000		561,636
				1,234,698
Department Stores–0.15%
Macy’s Retail Holdings Inc., Sr. Unsec. Gtd. Notes, 5.35%, 03/15/12		917,000		951,387
Diversified Banks–1.73%
Barclays Bank PLC (United Kingdom), Sr. Unsec. Global Notes, 5.13%, 01/08/20		1,140,000		1,174,715
Unsec. Sub. Global Notes, 5.14%, 10/14/20		395,000		357,834
BPCE S.A. (France), Sr. Unsec. Bonds, 2.38%, 10/04/13(c)		565,000		563,600
HSBC Bank PLC (United Kingdom), Sr. Notes, 4.13%, 08/12/20(c)		1,745,000		1,709,279
Nordea Bank A.B. (Sweden), Series 2, Sr. Unsec. Notes, 3.70%, 11/13/14(c)		880,000		907,208
Royal Bank of Scotland PLC (The) (United Kingdom), Sr. Unsec. Gtd. Floating Rate Medium-Term Notes, 0.44%, 10/28/11(c)(d)		900,000		899,964
Sr. Unsec. Gtd. Global Notes, 4.88%, 03/16/15		555,000		565,382
Societe Generale (France), Sr. Unsec. Notes, 2.50%, 01/15/14(c)		955,000		955,149
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 5.50%, 11/18/14(c)		1,140,000		1,229,944
3.85%, 04/27/15(c)		260,000		265,767
US Bank N.A., Sub. Variable Rate Notes, 3.78%, 04/29/20(d)		750,000		764,395
Wells Fargo & Co., Sr. Unsec. Global Notes, 3.63%, 04/15/15		750,000		780,175
Westpac Banking Corp. (Australia), Sr. Unsec. Global Notes, 2.10%, 08/02/13		595,000		600,578
				10,773,990
Diversified Capital Markets–0.19%
Credit Suisse AG (Switzerland), Sr. Unsec. Medium-Term Notes, 4.38%, 08/05/20		595,000		583,457
UBS AG (Switzerland), Sr. Unsec. Medium-Term Notes, 5.75%, 04/25/18		520,000		566,848
				1,150,305
Diversified Metals & Mining–0.06%
Freeport-McMoRan Copper & Gold Inc., Sr. Unsec. Notes, 8.38%, 04/01/17		365,000		403,211
Diversified REIT’s–0.07%
Qatari Diar Finance QSC (Mult. Countries), Unsec. Gtd. Unsub. Notes, 5.00%, 07/21/20(c)		440,000		444,727
Electric Utilities–0.56%
Carolina Power & Light Co., Sec. First Mortgage Bonds, 5.30%, 01/15/19		330,000		367,240
Enel Finance International S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 3.88%, 10/07/14(c)		600,000		612,172
Ohio Power Co., Series M, Sr. Unsec. Notes, 5.38%, 10/01/21		950,000		1,013,922
PPL Electric Utilities Corp., Sec. First Mortgage Bonds, 6.25%, 05/15/39		355,000		400,112
Progress Energy Inc., Sr. Unsec. Notes, 6.85%, 04/15/12		1,000,000		1,073,485
				3,466,931
Environmental & Facilities Services–0.09%
Waste Management Inc., Sr. Unsec. Gtd. Notes, 5.00%, 03/15/14		500,000		540,745
Food Retail–0.12%
Safeway Inc., Sr. Unsec. Global Notes, 3.95%, 08/15/20		805,000		764,284

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

11        Invesco Basic Balanced Fund

	Principal
	Amount		Value
Gold–0.15%
Gold Fields Orogen Holding BVI Ltd. (Mali), Sr. Unsec. Gtd. Notes, 4.88%, 10/07/20	$	965,000	$	920,335
Health Care Equipment–0.09%
Boston Scientific Corp., Sr. Unsec. Notes, 6.00%, 01/15/20		540,000		565,433
Health Care Services–0.28%
Express Scripts Inc., Sr. Unsec. Gtd. Global Notes, 6.25%, 06/15/14		1,300,000		1,453,226
Medco Health Solutions Inc., Sr. Unsec. Notes, 2.75%, 09/15/15		280,000		278,451
				1,731,677
Hotels, Resorts & Cruise Lines–0.31%
Hyatt Hotels Corp., Sr. Unsec. Notes, 5.75%, 08/15/15(c)		1,400,000		1,472,348
Wyndham Worldwide Corp., Sr. Unsec. Notes, 7.38%, 03/01/20		430,000		473,538
				1,945,886
Industrial Conglomerates–0.09%
NBC Universal, Inc., Sr. Unsec. Notes, 2.10%, 04/01/14(c)		285,000		284,950
5.95%, 04/01/41(c)		270,000		271,199
				556,149
Integrated Telecommunication Services–0.38%
AT&T Inc., Sr. Unsec. Global Notes, 2.50%, 08/15/15		450,000		449,874
Cellco Partnership/Verizon Wireless Capital LLC, Sr. Unsec. Global Notes, 3.75%, 05/20/11		880,000		889,714
Windstream Georgia Communications Corp., Sr. Unsec. Notes, 6.50%, 11/15/13		1,007,000		1,016,545
				2,356,133
Internet Retail–0.10%
Expedia Inc., Sr. Unsec. Gtd. Global Notes, 5.95%, 08/15/20		645,000		649,374
Investment Banking & Brokerage–0.61%
Goldman Sachs Group Inc. (The), Sr. Global Notes, 3.70%, 08/01/15		1,350,000		1,377,580
Macquarie Group Ltd. (Australia), Sr. Unsec. Notes, 6.00%, 01/14/20(c)		950,000		958,335
Morgan Stanley, Sr. Unsec. Global Notes, 4.00%, 07/24/15		915,000		926,978
Sr. Unsec. Notes, 3.45%, 11/02/15		545,000		535,087
				3,797,980
Life & Health Insurance–0.60%
Aflac Inc., Sr. Unsec. Notes, 6.45%, 08/15/40		440,000		456,792
MetLife Inc., Sr. Unsec. Global Notes, 4.75%, 02/08/21		530,000		542,316
5.88%, 02/06/41		200,000		210,346
MetLife Inc., Sr. Unsec. Global Notes, 2.38%, 02/06/14		200,000		201,244
Monumental Global Funding II, Sr. Sec. Notes, 5.65%, 07/14/11(c)		565,000		575,466
Prudential Financial Inc., Series D, Sr. Unsec. Medium-Term Notes, 3.88%, 01/14/15		950,000		976,193
7.38%, 06/15/19		655,000		770,157
				3,732,514
Managed Health Care–0.36%
Aetna Inc, Sr. Unsec. Notes, 3.95%, 09/01/20		810,000		777,987
UnitedHealth Group Inc., Sr. Unsec. Notes, 5.25%, 03/15/11		925,000		933,589
WellPoint Inc, Sr. Unsec. Notes, 4.35%, 08/15/20		505,000		500,741
				2,212,317
Mortgage Backed Securities–0.22%
U.S. Bank N.A., Sr. Unsec. Medium-Term Global Notes, 5.92%, 05/25/12		1,320,768		1,373,956
Multi-Line Insurance–0.12%
Liberty Mutual Group Inc., Sr. Unsec. Notes, 5.75%, 03/15/14(c)		730,000		755,947
Office Electronics–0.27%
Xerox Corp., Sr. Unsec. Notes, 4.25%, 02/15/15		820,000		857,992
6.88%, 08/15/11		810,000		840,306
				1,698,298
Office REIT’s–0.14%
Digital Realty Trust L.P., Sr. Unsec. Gtd. Global Notes, 5.88%, 02/01/20		855,000		874,283
Oil & Gas Exploration & Production–0.18%
Petrobras International Finance Co. (Cayman Islands), Sr. Unsec. Gtd. Global Notes, 6.88%, 01/20/40		260,000		273,622
Petroleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 5.50%, 01/21/21		510,000		518,321
XTO Energy Inc., Sr. Unsec. Notes, 5.75%, 12/15/13		310,000		350,006
				1,141,949

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

12        Invesco Basic Balanced Fund

	Principal
	Amount		Value
Oil & Gas Storage & Transportation–0.52%
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Notes, 5.20%, 09/01/20	$	555,000	$	575,902
6.45%, 09/01/40		555,000		601,603
Spectra Energy Capital LLC, Sr. Unsec. Gtd. Notes, 5.65%, 03/01/20		1,100,000		1,175,430
Transcontinental Gas Pipe Line Co. LLC, Series B, Sr. Unsec. Global Notes, 7.00%, 08/15/11		820,000		850,711
				3,203,646
Other Diversified Financial Services–1.55%
Bank of America Corp.–Series L, Sr. Unsec. Medium-Term Notes, 7.38%, 05/15/14		315,000		352,193
Citigroup Inc., Sr. Unsec. Global Notes, 6.01%, 01/15/15		1,615,000		1,776,130
Sr. Unsec. Notes, 4.75%, 05/19/15		1,000,000		1,052,543
Countrywide Home Loans Inc., Series L, Sr. Unsec. Gtd. Medium-Term Global Notes, 4.00%, 03/22/11		395,000		397,948
ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, 2.75%, 07/01/13(c)		480,000		488,295
General Electric Capital Corp., Sr. Unsec. Global Notes, 5.90%, 05/13/14		1,465,000		1,619,572
JPMorgan Chase & Co., Sr. Unsec. Global Notes, 4.75%, 05/01/13		1,280,000		1,370,981
Unsec. Sub. Global Notes, 5.13%, 09/15/14		1,530,000		1,631,363
Merrill Lynch & Co., Inc., Sr. Unsec. Medium-Term Notes, 6.88%, 04/25/18		860,000		940,672
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		0
				9,629,697
Packaged Foods & Meats–0.09%
Grupo Bimbo SAB de CV (Mexico), Sr. Unsec. Gtd. Notes, 4.88%, 06/30/20(c)		500,000		504,700
Kraft Foods Inc., Sr. Unsec. Global Notes, 5.63%, 11/01/11		80,000		83,267
				587,967
Paper Packaging–0.14%
Bemis Co. Inc., Sr. Unsec. Notes, 5.65%, 08/01/14		800,000		872,787
Paper Products–0.09%
International Paper Co., Sr. Unsec. Global Bonds, 7.50%, 08/15/21		475,000		560,431
Property & Casualty Insurance–0.12%
CNA Financial Corp., Sr. Unsec. Notes, 7.35%, 11/15/19		425,000		466,588
Travelers Cos., Inc. (The), Sr. Unsec. Notes, 5.35%, 11/01/40		255,000		250,558
				717,146
Publishing–0.05%
Reed Elsevier Capital Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 08/01/11		313,000		324,193
Railroads–0.08%
CSX Corp., Sr. Unsec. Notes, 5.50%, 04/15/41		525,000		515,980
Regional Banks–0.15%
PNC Funding Corp., Sr. Unsec. Gtd. Global Notes, 3.63%, 02/08/15		890,000		918,827
Research & Consulting Services–0.08%
ERAC USA Finance LLC, Unsec. Gtd. Notes, 5.80%, 10/15/12(c)		490,000		524,962
Sovereign Debt–0.13%
Russian Foreign Bond (Russia), Sr. Unsec. Notes, 3.63%, 04/29/15(c)		800,000		801,500
Specialized Finance–0.23%
NASDAQ OMX Group Inc. (The), Sr. Unsec. Notes, 5.55%, 01/15/20		950,000		955,747
National Rural Utilities Cooperative Finance Corp., Sr. Sec. Notes, 2.63%, 09/16/12		440,000		452,344
				1,408,091
Specialized REIT’s–0.17%
Healthcare Realty Trust Inc., Sr. Unsec. Notes, 6.50%, 01/17/17		950,000		1,025,642
Specialty Properties–0.09%
Health Care REIT Inc., Sr. Unsec. Notes, 4.95%, 01/15/21		585,000		565,271
Steel–0.36%
ArcelorMittal (Luxembourg), Sr. Unsec. Global Bonds, 9.00%, 02/15/15		390,000		464,449
Sr. Unsec. Global Notes,
3.75%, 08/05/15		220,000		221,888
7.00%, 10/15/39		910,000		942,748
Vale Overseas Ltd., Sr. Unsec. Gtd. Global Notes, 4.63%, 09/15/20		320,000		318,777
6.88%, 11/10/39		260,000		283,628
				2,231,490
Technology Distributors–0.15%
Avnet Inc., Sr. Unsec. Notes, 5.88%, 06/15/20		950,000		954,748
Tobacco–0.12%
Altria Group Inc., Sr. Unsec. Gtd. Global Notes, 4.13%, 09/11/15		715,000		748,964
Trading Companies & Distributors–0.08%
GATX Corp., Sr. Unsec. Notes, 4.75%, 10/01/12		450,000		472,177

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

13        Invesco Basic Balanced Fund

	Principal
	Amount		Value
Wireless Telecommunication Services–0.19%
American Tower Corp., Sr. Unsec. Global Notes, 4.63%, 04/01/15	$	670,000	$	700,961
Vodafone Group PLC (United Kingdom), Sr. Unsec. Global Notes, 5.50%, 06/15/11		440,000		449,699
				1,150,660
Total Bonds & Notes (Cost $77,032,600)				78,166,849
U.S. Treasury Securities–6.06%
U.S. Treasury Bills–0.04%
0.19%, 01/20/11(g)(h)		100,000		99,990
0.14%, 05/19/11		125,000		124,934
				224,924
U.S. Treasury Notes–4.58%
0.75%, 05/31/12(h)		17,760,000		17,841,862
2.13%, 05/31/15		4,445,000		4,513,064
2.63%, 11/15/20		6,500,000		6,130,313
				28,485,239
U.S. Treasury Bonds–1.44%
5.38%, 02/15/31		5,205,000		6,072,771
4.50%, 08/15/39		1,060,000		1,088,156
4.38%, 05/15/40		1,280,000		1,286,000
4.25%, 11/15/40		500,000		491,797
				8,938,724
Total U.S. Treasury Securities (Cost $37,914,233)				37,648,887
U.S. Government Sponsored Mortgage-Backed Securities–2.98%
Federal Home Loan Mortgage Corp. (FHLMC)–1.19%
Pass Through Ctfs., 5.50%, 02/01/15 to 02/01/37		557,237		599,271
7.00%, 06/01/15 to 06/01/32		2,013,207		2,294,443
6.50%, 01/01/16 to 01/01/35		1,367,142		1,520,552
6.00%, 03/01/17 to 01/01/34		1,815,091		1,982,572
4.50%, 10/01/18		131,255		138,597
8.00%, 01/01/27		357,204		417,724
7.50%, 12/01/30 to 03/01/32		205,234		235,688
5.00%, 10/01/33		170,365		179,875
				7,368,722
Federal National Mortgage Association (FNMA)–0.95%
Pass Through Ctfs., 7.50%, 11/01/15 to 05/01/32		1,476,419		1,714,191
7.00%, 12/01/15 to 09/01/32		1,249,014		1,408,770
6.50%, 05/01/16 to 01/01/37		712,679		795,066
5.00%, 11/01/17 to 11/01/18		821,362		879,442
5.50%, 03/01/21 to 11/01/33		125,446		135,238
8.00%, 08/01/21 to 10/01/30		241,233		277,963
6.00%, 03/01/22 to 03/01/37		70,493		76,455
8.50%, 01/01/23 to 10/01/28		529,748		608,916
				5,896,041
Government National Mortgage Association (GNMA)–0.84%
Pass Through Ctfs., 5.00%, 03/15/18		693,720		743,798
8.00%, 08/15/22 to 01/20/31		267,488		314,137
7.50%, 06/15/23 to 05/15/32		589,031		680,825
8.50%, 11/15/24 to 02/15/25		31,038		34,025
6.00%, 03/15/29 to 11/15/32		263,316		291,139
7.00%, 02/15/31 to 05/15/32		395,392		453,894
6.50%, 03/15/31 to 02/15/37		2,234,028		2,550,897
5.50%, 09/15/33 to 05/15/35		138,144		149,936
				5,218,651
Total U.S. Government Sponsored Mortgage-Backed Securities (Cost $17,030,196)				18,483,414
Asset-Backed Securities–0.24%
Nomura Asset Acceptance Corp., Series 2005-AR1, Class 2A1, Floating Rate Pass Through Ctfs., 0.54%, 02/25/35(d)		30,792		26,919
Option One Mortgage Securities Corp., Series 2007-4A, Floating Rate Notes, 0.36%, 04/25/12 (Acquired 5/11/07; Cost $839,196)(c)(d)		839,196		607,662
Specialty Underwriting & Residential Finance, Series 2003-BC3, Class A, Floating Rate Pass Through Ctfs., 0.96%, 08/25/34(d)		8,370		7,371
Vanderbilt Mortgage Finance, Series 2002-B, Class A4, Pass Through Ctfs., 5.84%, 02/07/26		818,976		834,042
Total Asset-Backed Securities (Cost $1,700,305)				1,475,994
	Shares
Money Market Funds–8.25%
Liquid Assets Portfolio–Institutional Class(i)		25,638,769		25,638,769
Premier Portfolio–Institutional Class(i)		25,638,769		25,638,769
Total Money Market Funds (Cost $51,277,538)				51,277,538
TOTAL INVESTMENTS–99.91% (Cost $547,397,753)				620,660,286
OTHER ASSETS LESS LIABILITIES–0.09%				539,826
NET ASSETS–100.00%			$	621,200,112

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

14        Invesco Basic Balanced Fund

Investment Abbreviations:

ADR	– American Depositary Receipt
Ctfs.	– Certificates
Gtd.	– Guaranteed
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
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 December 31, 2010 was $14,705,076, which represented 2.37% of the Fund’s Net Assets.
(d)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on December 31, 2010.
(e)	Perpetual bond with no specified maturity date.
(f)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at December 31, 2010 represented 0.00% of the Fund’s Net Assets.
(g)	Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.
(h)	All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L and Note 4.
(i)	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.

15        Invesco Basic Balanced Fund

Statement of Assets and Liabilities

December 31, 2010

Assets:
Investments, at value (Cost $496,120,215)	$	569,382,748
Investments in affiliated money market funds, at value and cost		51,277,538
Total investments, at value (Cost $547,397,753)		620,660,286
Foreign currencies, at value (Cost $229,613)		245,053
Receivable for:
Variation margin		47,250
Fund shares sold		255,466
Dividends and interest		1,860,134
Investment for trustee deferred compensation and retirement plans		222,059
Other assets		41,036
Total assets		623,331,284
Liabilities:
Payable for:
Fund shares reacquired		1,088,005
Accrued fees to affiliates		454,466
Accrued other operating expenses		154,546
Trustee deferred compensation and retirement plans		434,155
Total liabilities		2,131,172
Net assets applicable to shares outstanding	$	621,200,112
Net assets consist of:
Shares of beneficial interest	$	728,085,708
Undistributed net investment income		(281,700	)
Undistributed net realized gain (loss)		(179,521,964	)
Unrealized appreciation		72,918,068
	$	621,200,112
Net Assets:
Class A	$	387,572,193
Class B	$	46,368,643
Class C	$	59,914,397
Class R	$	7,396,748
Class Y	$	1,932,153
Investor Class	$	117,563,233
Institutional Class	$	452,745
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		35,215,254
Class B		4,222,418
Class C		5,453,239
Class R		672,284
Class Y		175,578
Investor Class		10,682,461
Institutional Class		41,196
Class A:
Net asset value per share	$	11.01
Maximum offering price per share
(Net asset value of $11.01 divided by 94.50%)	$	11.65
Class B:
Net asset value and offering price per share	$	10.98
Class C:
Net asset value and offering price per share	$	10.99
Class R:
Net asset value and offering price per share	$	11.00
Class Y:
Net asset value and offering price per share	$	11.00
Investor Class:
Net asset value and offering price per share	$	11.01
Institutional Class:
Net asset value and offering price per share	$	10.99

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

16        Invesco Basic Balanced Fund

Statement of Operations

For the year ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $151,814)	$	7,312,533
Dividends from affiliated money market funds		43,641
Interest		7,211,435
Total investment income		14,567,609
Expenses:
Advisory fees		3,388,407
Administrative services fees		205,517
Custodian fees		53,373
Distribution fees:
Class A		974,035
Class B		533,277
Class C		623,309
Class R		34,552
Investor Class		280,063
Transfer agent fees — A, B, C, R, Y and Investor		1,988,992
Transfer agent fees — Institutional		420
Trustees’ and officers’ fees and benefits		33,893
Other		322,453
Total expenses		8,438,291
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(57,066	)
Net expenses		8,381,225
Net investment income		6,186,384
Realized and unrealized gain from:
Net realized gain from:
Investment securities (includes net gains from securities sold to affiliates of $5,855,341)		4,233,352
Foreign currencies		41,178
Futures contracts		14,900
		4,289,430
Change in net unrealized appreciation (depreciation) of:
Investment securities		34,826,346
Foreign currencies		18,225
Futures contracts		(599,554	)
		34,245,017
Net realized and unrealized gain		38,534,447
Net increase in net assets resulting from operations	$	44,720,831

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

17        Invesco Basic Balanced Fund

Statement of Changes in Net Assets

For the years ended December 31, 2010 and 2009

	2010			2009
Operations:
Net investment income	$	6,186,384		$	9,775,910
Net realized gain (loss)		4,289,430			(92,663,771	)
Change in net unrealized appreciation		34,245,017			265,675,051
Net increase in net assets resulting from operations		44,720,831			182,787,190
Distributions to shareholders from net investment income:
Class A		(4,879,891	)		(6,968,869	)
Class B		(259,955	)		(824,014	)
Class C		(322,660	)		(730,313	)
Class R		(71,640	)		(94,295	)
Class Y		(26,102	)		(19,477	)
Investor Class		(1,485,147	)		(2,217,592	)
Institutional Class		(7,566	)		(8,543	)
Total distributions from net investment income		(7,052,961	)		(10,863,103	)
Share transactions–net:
Class A		(46,529,002	)		(42,579,762	)
Class B		(21,032,608	)		(32,165,678	)
Class C		(10,564,343	)		(11,507,295	)
Class R		607,708			(354,372	)
Class Y		687,179			311,404
Investor Class		(16,860,248	)		(17,598,982	)
Institutional Class		49,658			(38,012	)
Net increase (decrease) in net assets resulting from share transactions		(93,641,656	)		(103,932,697	)
Net increase (decrease) in net assets		(55,973,786	)		67,991,390
Net assets:
Beginning of year		677,173,898			609,182,508
End of year (includes undistributed net investment income of $(281,700) and $(15,221), respectively)	$	621,200,112		$	677,173,898

Notes to Financial Statements

December 31, 2010

NOTE 1—Significant Accounting Policies

Invesco Basic Balanced Fund (the “Fund”) is a series portfolio of AIM Funds Group (Invesco 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 C shares are sold with a CDSC. Class R, Class Y, Investor Class and Institutional Class shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such

18        Invesco Basic Balanced Fund

shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. Redemption of Class B shares prior to conversion date will be subject to a CDSC.

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

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. 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 (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

19        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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	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

20        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).

21        Invesco Basic Balanced Fund

  The Adviser has contractually agreed, through at least April 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y, 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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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 year ended December 31, 2010, the Adviser waived advisory fees of $48,874.

  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 year ended December 31, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $2,284.

  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 year ended December 31, 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 year ended December 31, 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, 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 year ended December 31, 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 year ended December 31, 2010, IDI advised the Fund that IDI retained $33,676 in front-end sales commissions from the sale of Class A shares and $58, $81,516 and $2,232 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

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 December 31, 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.

22        Invesco Basic Balanced Fund

  During the year ended December 31, 2010, there were no significant transfers between investment levels.

	Level 1			Level 2		Level 3		Total
Equity Securities	$	480,697,241		$	4,187,901	$	—	$	484,885,142
U.S. Treasury Securities		—			37,648,887		—		37,648,887
U.S. Government Sponsored Securities		—			18,483,414		—		18,483,414
Corporate Debt Securities		—			78,166,849		—		78,166,849
Asset Backed Securities		—			868,332		607,662		1,475,994
	$	480,697,241		$	139,355,383	$	607,662	$	620,660,286
Futures*		(359,905	)		—		—		(359,905	)
Total Investments	$	480,337,336		$	139,355,383	$	607,662	$	620,300,381

*  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.

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 December 31, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Interest rate risk
Futures contracts(a)	$	129,720	$	(489,625	)

^(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 year ended December 31, 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
Interest rate risk	$	14,900
Change in Unrealized Appreciation (Depreciation)
Interest rate risk		(599,554	)
Total	$	(584,654	)

*  The average value of futures outstanding during the period was $31,285,706.

Open Futures Contracts at Period-End
								Unrealized
	Number of		Month/					Appreciation
Contract	Contracts		Commitment		Value			(Depreciation)
Ultra U.S. Treasury Bonds		29		March-2011/Long	$	3,685,719		$	(80,492	)
U.S. Treasury 5 Year Notes		78		March-2011/Long		9,182,062			(138,496	)
U.S. Treasury 10 Year Notes		64		March-2011/Long		7,708,000			(270,637	)
Subtotal					$	20,575,781		$	(489,625	)
U.S. Treasury 2 Year Notes		104		March-2011/Short		(22,766,250	)		40,401
U.S. Treasury 30 Year Bonds		26		March-2011/Short		(3,175,250	)		89,319
Subtotal					$	(25,941,500	)	$	129,720
Total								$	(359,905	)

23        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 year ended December 31, 2010, the Fund engaged in securities purchases of $46,368,155 and securities sales of $34,637,558, which resulted in net realized gains of $5,855,341.

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 year ended December 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $5,908.

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 year ended December 31, 2010, the Fund paid legal fees of $4,078 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—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended December 31, 2010 and 2009:

	2010		2009
Ordinary income	$	7,052,961	$	10,863,103

Tax Components of Net Assets at Period-End:

	2010
Undistributed ordinary income	$	441,762
Net unrealized appreciation — investments		68,185,473
Net unrealized appreciation — other investments		15,439
Temporary book/tax differences		(376,957	)
Post-October deferrals		(253,999	)
Capital loss carryforward		(174,897,314	)
Shares of beneficial interest		728,085,708
Total net assets	$	621,200,112

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation difference is attributable primarily to wash sales.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

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

24        Invesco Basic Balanced Fund

  The Fund has a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	74,369,782
December 31, 2017		90,435,435
December 31, 2018		10,092,097
Total capital loss carryforward	$	174,897,314

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

NOTE 10—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended December 31, 2010 was $527,673,766 and $666,212,282, 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	$	73,115,231
Aggregate unrealized (depreciation) of investment securities		(4,929,758	)
Net unrealized appreciation of investment securities	$	68,185,473
Cost of investments for tax purposes is $552,474,813.

NOTE 11—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of bond premiums and paydowns, on December 31, 2010, undistributed net investment income was increased by $600,098, undistributed net realized gain (loss) was decreased by $596,405 and shares of beneficial interest decreased by $3,693. This reclassification had no effect on the net assets of the Fund.

25        Invesco Basic Balanced Fund

NOTE 12—Share Information

	Summary of Share Activity
	Year ended December 31,
	2010(a)						2009
	Shares			Amount			Shares			Amount
Sold:
Class A		2,466,909		$	25,807,731			2,682,119		$	23,369,070
Class B		412,969			4,318,515			595,023			5,052,156
Class C		304,376			3,171,853			437,534			3,670,788
Class R		254,023			2,712,921			177,245			1,543,394
Class Y		103,675			1,103,927			68,661			587,535
Investor Class		619,016			6,442,515			915,160			7,823,072
Institutional Class		7,313			79,041			7,335			55,854
Issued as reinvestment of dividends:
Class A		435,199			4,579,535			788,628			6,538,844
Class B		23,843			251,507			101,123			790,840
Class C		28,415			300,172			83,670			662,681
Class R		6,801			71,589			11,439			94,175
Class Y		2,237			23,487			2,002			17,049
Investor Class		135,129			1,421,871			257,654			2,129,000
Institutional Class		716			7,510			1,017			8,543
Automatic conversion of Class B shares to Class A shares:
Class A		1,417,510			14,817,669			2,681,447			22,636,392
Class B		(1,421,298	)		(14,817,669	)		(2,685,001	)		(22,636,392	)
Reacquired:
Class A		(8,808,157	)		(91,733,937	)		(11,271,472	)		(95,124,068	)
Class B		(1,037,265	)		(10,784,961	)		(1,869,161	)		(15,372,282	)
Class C		(1,350,243	)		(14,036,368	)		(1,862,197	)		(15,840,764	)
Class R		(208,326	)		(2,176,802	)		(219,202	)		(1,991,941	)
Class Y		(42,839	)		(440,235	)		(33,085	)		(293,180	)
Investor Class		(2,376,549	)		(24,724,634	)		(3,181,406	)		(27,551,054	)
Institutional Class		(3,432	)		(36,893	)		(12,811	)		(102,409	)
Net increase (decrease) in share activity		(9,029,978	)	$	(93,641,656	)		(12,324,278	)	$	(103,932,697	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 13% 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.

26        Invesco Basic Balanced Fund

NOTE 13—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(a)		unrealized)			operations			income			of period		return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Class A
Year ended 12/31/10	$	10.34	$	0.11	$	0.69		$	0.80		$	(0.13	)	$	11.01		7.83	%	$	387,572		1.19	%(d)		1.20	%(d)		1.11	%(d)		95	%
Year ended 12/31/09		7.83		0.15		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		(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		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		1.05			1.29			(0.28	)		13.26		10.67			788,003		1.14			1.14			1.93			38
Class B
Year ended 12/31/10		10.32		0.04		0.68			0.72			(0.06	)		10.98		6.96			46,369		1.94	(d)		1.95	(d)		0.36	(d)		95
Year ended 12/31/09		7.82		0.09		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		(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		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		1.04			1.19			(0.18	)		13.23		9.86			358,655		1.89			1.89			1.18			38
Class C
Year ended 12/31/10		10.33		0.04		0.68			0.72			(0.06	)		10.99		6.96			59,914		1.94	(d)		1.95	(d)		0.36	(d)		95
Year ended 12/31/09		7.82		0.09		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		(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		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		1.04			1.19			(0.18	)		13.24		9.86			163,630		1.89			1.89			1.18			38
Class R
Year ended 12/31/10		10.34		0.09		0.68			0.77			(0.11	)		11.00		7.47			7,397		1.44	(d)		1.45	(d)		0.86	(d)		95
Year ended 12/31/09		7.83		0.13		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		(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		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		1.05			1.26			(0.25	)		13.25		10.40			7,293		1.39			1.39			1.68			38
Class Y
Year ended 12/31/10		10.34		0.14		0.68			0.82			(0.16	)		11.00		8.00			1,932		0.94	(d)		0.95	(d)		1.36	(d)		95
Year ended 12/31/09		7.83		0.18		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		(1.69	)		(1.63	)		(0.12	)		7.83		(16.96	)		587		1.11	(g)		1.11	(g)		2.95	(g)		50
Investor Class
Year ended 12/31/10		10.34		0.12		0.68			0.80			(0.13	)		11.01		7.83			117,563		1.17	(d)		1.18	(d)		1.13	(d)		95
Year ended 12/31/09		7.83		0.15		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		(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		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		1.05			1.29			(0.28	)		13.26		10.67			288,522		1.14			1.14			1.93			38
Institutional Class
Year ended 12/31/10		10.33		0.16		0.68			0.84			(0.18	)		10.99		8.26			453		0.72	(d)		0.73	(d)		1.58	(d)		95
Year ended 12/31/09		7.82		0.20		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		(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		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		1.05			1.35			(0.34	)		13.25		11.22			149		0.68			0.68			2.39			38

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(d)	Ratios are based on average daily net assets (000’s) of $389,614, $53,328, $62,331, $6,910, $1,680, $118,398 and $420 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 (losses) on securities (both realized and unrealized) per share would have been $2.46, $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.
(g)	Annualized.

NOTE 14—Significant Event

The Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would transfer all of its assets and liabilities to Invesco Van Kampen Equity and Income Fund (the “Acquiring Fund”) in exchange for shares of the Acquiring Fund. The Agreement requires approval of the Fund’s shareholders and will be submitted to the shareholders for their consideration at a meeting to be held in or around April 2011.

27        Invesco Basic Balanced Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Funds Group (Invesco Funds Group)

and Shareholders of Invesco Basic Balanced Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Basic Balanced Fund (formerly known as AIM Basic Balanced Fund; one of the funds constituting AIM Funds Group (Invesco Funds Group), hereafter referred to as the “Fund”) at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

February 22, 2011

Houston, Texas

28        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 July 1, 2010 through December 31, 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	(07/01/10)		(12/31/10)1		Period2		(12/31/10)		Period2		Ratio
A	$	1,000.00	$	1,158.10	$	6.36	$	1,019.31	$	5.96		1.17	%
B		1,000.00		1,153.20		10.42		1,015.53		9.75		1.92
C		1,000.00		1,154.20		10.43		1,015.53		9.75		1.92
R		1,000.00		1,156.90		7.72		1,018.05		7.22		1.42
Y		1,000.00		1,158.50		5.01		1,020.57		4.69		0.92
Investor		1,000.00		1,159.40		6.20		1,019.46		5.80		1.14
Institutional		1,000.00		1,160.20		3.97		1,021.53		3.72		0.73

1	The actual ending account value is based on the actual total return of the Fund for the period July 1, 2010 through December 31, 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 184/365 to reflect the most recent fiscal half year.

29        Invesco Basic Balanced Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended December 31, 2010:

Federal and State Income Tax
Qualified Dividend Income*	94.50%
Corporate Dividends Received Deduction*	78.00%
U.S. Treasury Obligations*	3.70%

*  The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

30        Invesco Basic Balanced Fund

Trustees and Officers

The address of each trustee and officer is AIM Funds Groups (Invesco Funds Group) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1987	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie		208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208		Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208		Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208		None
Lewis F. Pennock — 1942 Trustee	1992	Partner, law firm of Pennock & Cooper	208		None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208		None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226		Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208		None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1992	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Counsel to the Fund
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103

Investment Adviser
Invesco Advisers, Inc.
1555 Peachtree Street, N.E.
Atlanta, GA 30309

Counsel to the Independent Trustees
Kramer, Levin, Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036-2714

Distributor
Invesco Distributors, Inc.
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Transfer Agent
Invesco Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

Auditors
PricewaterhouseCoopers LLP
1201 Louisiana Street, Suite 2900
Houston, TX 77002-5678

Custodian
State Street Bank and Trust Company
225 Franklin
Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

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.
     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-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders December 31, 2010

Invesco European Small Company Fund

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
11	Financial Statements
13	Notes to Financial Statements
20	Financial Highlights
21	Auditor's Report
22	Fund Expenses
23	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial adviser to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial adviser will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

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

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco European Small Company Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds. As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisers with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco European Small Company Fund

Management’s Discussion of Fund Performance

Performance summary

For the 12 months ended December 31, 2010, all share classes of Invesco European Small Company Fund, at net asset value, delivered strong double-digit gains, but underperformed the Fund’s style-specific index, the MSCI Europe Small Cap Index. This underperformance largely was due to select holdings in the information technology (IT) and consumer discretionary sectors. As always, our stock selection process focused on investing with a long-term horizon and on identifying strong, high-quality companies. The Fund, at net asset value, did outperform its broad market index, the MSCI EAFE Index, as small-cap stocks continued to outperform larger cap stocks during the period.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 12/31/09 to 12/31/10, 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	18.55	%
Class B Shares	17.76
Class C Shares	17.74
Class Y Shares	18.89
MSCI EAFE Index▼ (Broad Market Index)	7.75
MSCI Europe Small Cap Index▼ (Style-Specific Index)	21.47
Lipper European Funds Index▼ (Peer Group Index)	10.37

^▼ Lipper Inc.

How we invest

When selecting stocks for your Fund, we employ a disciplined investment strategy that emphasizes fundamental research, supported by both quantitative analysis and portfolio construction techniques. Our EQV (earnings, quality, valuation) strategy primarily focuses on identifying quality companies that have experienced, or exhibit the potential for, accelerated or above-average earnings growth, but their stock prices have not fully reflected these attributes.

     We select investments for the Fund using a bottom-up investment approach, which means we construct the Fund primarily on a stock-by-stock basis. We focus on the strengths of individual companies rather than sectors, countries or market-cap trends.

     We believe disciplined sell decisions are key to successful investing. We consider selling a stock for one of the following reasons:

n	A company’s fundamentals deteriorate or it posts disappointing earnings.
n	A stock’s price seems overvalued.
n	A more attractive opportunity becomes available.

Market conditions and your Fund

After rallying for much of 2009 on prospects of improving global economic conditions, global equity markets faced headwinds in early 2010. Notably, several southern European economies, including Greece, Spain, Portugal and Italy, faced solvency concerns amid massive fiscal deficits. Although the U.S. economy returned to a positive growth

rate in 2009, investors continued to be concerned about high unemployment and a still-weak housing market. But, not all news was negative. Growth fundamentals in Asia remained quite strong, and overall, global equity markets appeared to shrug off some of the macroeconomic burdens that pulled them into double-digit losses in the first half of 2010. Indeed, equity markets ended the year on a positive note, enjoying a strong positive up-tick.

     Turning to Europe, the European Central Bank (ECB) remained an interesting foil to the U.S. Federal Reserve (the Fed), as ECB officials showed little sign they were willing to provide additional economic stimulus. Instead, they seemed to be leaving the heavy global economic lifting to the Fed. As a result, the euro rebounded sharply after sliding in value during the first half of 2010. Nevertheless, Europe’s solid performance during a period of marked volatility served as a useful reminder that, in general, when investors focus disproportionately on the macroeconomic or gross domestic product (GDP) trends in a market, equity markets can surprise investors when they move against common wisdom.

     Within this environment, Class A shares of the Fund, at net asset value, returned gains of 18.55% for the period, but lagged the MSCI Europe Small Cap Index, which returned 21.47%. Our strategy continued to focus on bottom-up analysis of the strengths of individual companies, rather than top-down attempts at forecasting global macroeconomic developments. Our belief remains unwavering that strong, quality businesses, with strong balance sheets that trade at attractive valuations, have the potential to do well over the long haul.

Portfolio Composition

By sector

Industrials	39.8	%
Consumer Discretionary	17.5
Information Technology	14.3
Financials	8.3
Energy	5.4
Consumer Staples	4.3
Health Care	2.4
Materials	1.6
Money Market Funds
Plus Other Assets Less Liabilities	6.4

Top 10 Equity Holdings*

1.	Ocean Wilsons Holdings Ltd.	4.7	%
2.	Wirecard AG	3.9
3.	DCC PLC	3.7
4.	Kier Group PLC	3.2
5.	Lancashire Holdings Ltd.	3.2
6.	Schweiter Technologies AG	2.7
7.	Mitie Group PLC	2.5
8.	CPP Group PLC	2.4
9.	Aryzta AG	2.2
10.	TGS Nopec Geophysical Co. A.S.A.	2.2

Top Five Countries*

1.	United Kingdom	36.4	%
2.	Ireland	9.5
3.	Germany	7.8
4.	Switzerland	6.2
5.	Norway	5.8

Total Net Assets	$149.2 million
Total Number of Holdings*	67

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.
*Excluding money market fund holdings.

4 Invesco European Small Company Fund

     In terms of performance during the year, some of the notable underperformers were found in the consumer discretionary sector, including Jumbo, the Greek hyper-market retailer, and Intralot, the Greek lottery operator.

     Jumbo, which focuses on toys, books, baby products and seasonal items, has a significant share of the European market. This company, which owns more than half of its stores, has a relatively low amount of debt and high return on equity (ROE) but trades at a deep discount to other retailers mainly because it’s a Greece-based stock.

     Intralot continues to win contracts around the world. Its new contracts, however, come with required capital investments, which obscure the underlying free cash flow generation. In addition, lottery sales have been the target of tax increases, and they have not bounced back as expected during the economic recovery. Its Greek association – although Greece accounts for less than 25% of profits – hurt as well. We maintained our positions in both these holdings due to their strong underlying fundamentals.

     In contrast, the Fund outperformed the index by the widest margin in the financials and industrials sectors. While stock selection was a key driver of relative results, an underweight in the financials sector and an overweight in the industrials sector contributed to relative outperformance as well.

     Leading stock-level contributors to overall Fund performance included Ocean Wilson and Homeserve. Ocean Wilson is an investment holding company whose assets largely consist of a stake in a Brazilian company, Wilson Sons, which is an infrastructure-oriented company whose activities span port terminals, logistics, towage and offshore activities. While Homeserve, the U.K.-based provider of home emergency repair insurance in the U.K., France, Spain, Belgium and the U.S., is a high-quality, non-capital intensive company whose founder is the largest shareholder. From a strong position in the U.K., the company successfully expanded to other large markets with a significant combined potential customer base.

     As mentioned previously, stock selection in the portfolio is driven by the underlying fundamentals of each individual company, not by any top-down macroeconomic views. This focus on bottom-up, stock selection is the key driver of the portfolio’s overall profile. As of the end of the period, the portfolio’s most meaningful overweight exposure

versus the index was in the industrials and IT sectors. The Fund’s largest underweight positions were in the financial services, materials and health care sectors. Geographically, the U.K. represents more than one-third of the Fund with the remainder consisting of a diverse exposure to smaller companies from more than a dozen countries.

     We primarily focus on companies that have well-capitalized balance sheets, with limited to no debt. Strong balance sheets give companies flexibility, which is always valuable but particularly so in today’s uncertain environment. As always, we have continued to emphasize strong cash flow generation and attractive valuations.

     Although the strong rally in the asset class no longer provides a valuation advantage over international large-cap stocks, international small-cap stocks remained at a significant discount to U.S. small-cap stocks, further supporting the case for small-cap diversification abroad.

     Following strong market performance in the second half of 2010, investor sentiment rose supported by low interest rates, ample liquidity and improving global GDP outlooks versus this time last year. At the same time, the risks of tighter monetary policy in robust emerging market economies and the lingering sovereign debt situation in Europe means investors should be prepared for volatility. At the close of the reporting period, we remained focused on investing according to our fundamentally driven investment process and maintaining our long-term investment view.

     We thank you for your continued investment in Invesco European Small Company Fund.

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Jason Holzer

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco European Small Company Fund. Mr. Holzer joined Invesco in 1996. He earned a B.A. in quantitative economics and an M.S. in engineering economic systems from Stanford University.

Borge Endresen

Chartered Financial Analyst, portfolio manager, is manager of Invesco European Small Company Fund. Mr. Endresen joined Invesco in 1999. He earned a B.S. in finance from the University of Oregon. He also earned an M.B.A. from The University of Texas at Austin.

Assisted by the Europe/Canada Team

5 Invesco European Small Company Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Classes since Inception

Fund and index data from 8/31/00

1 Lipper Inc.

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects Fund expenses and management fees; performance of a market index does not. Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000, and so on.

6 Invesco European Small Company Fund

Average Annual Total Returns

As of 12/31/10, including maximum applicable sales charges

Class A Shares
Inception (8/31/00)			11.62	%
	10	Years	12.95
	5	Years	5.51
	1	Year	11.97
Class B Shares
Inception (8/31/00)			11.62	%
	10	Years	12.95
	5	Years	5.77
	1	Year	12.76
Class C Shares
Inception (8/31/00)			11.44	%
	10	Years	12.78
	5	Years	5.93
	1	Year	16.74
Class Y Shares
	10	Years	13.66	%
	5	Years	6.84
	1	Year	18.89

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. 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.

continued from page 8

Other information

n	The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
n	The returns shown in management’s discussion of Fund performance are based on net asset values calculated for

shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.

n Industry classifications used in this report are generally classified 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.

7 Invesco European Small Company Fund

Invesco European Small Company Fund’s investment objective is long-term growth of capital.

n	Unless otherwise stated, information presented in this report is as of December 31, 2010, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class Y shares are available only to certain investors. Please see the prospectus for more information.

Principal risks of investing in the Fund

n

Securities issued by foreign companies and governments located in developing countries may be affected more negatively by inflation, devaluation of their currencies, higher transaction costs, delays in settlement, adverse political developments, the introduction of capital controls, withholding taxes, nationalization of private assets, expropriation, social unrest, war or lack of timely information, than those in developed countries.

n

An investment by an underlying fund in exchange-traded funds (ETFs) generally presents the same primary risks as an investment in a mutual fund. In addition, ETFs may be subject to the following: (1) a discount of the ETF’s shares to its net asset value; (2) failure to develop an active trading market for the ETF’s shares; (3) the listing exchange halting trading of the ETF’s shares; (4) failure of the ETF’s shares to track the referenced index; and (5) holding troubled securities in the referenced index. ETFs may involve duplication of management fees and certain other expenses, as the Fund indirectly bears its proportionate share of any expenses paid by the ETFs in which it invests. Further, certain of the ETFs in which the Fund may invest are leveraged. The more a fund invests in such leveraged ETFs, the more this leverage will magnify any losses on those investments.

n	The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.
n	The Fund may invest a large percentage of its assets in a limited number of securities or other instruments, which could negatively affect the value of the Fund.
n	The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.
n	The Fund is non-diversified and can invest a greater portion of its assets in a single issuer. A change in the value of the issuer could affect the value of the Fund more than if it was a diversified fund.
n	Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments in the above factors and may have little or no operating history or track record of success, and limited product lines, markets, management and financial resources. The securities of small and mid-sized companies may be more volatile due to less market interest and less publicly available information about the issuer. They also may be illiquid or restricted as to resale, or may trade less frequently and in smaller volumes, all of which may cause difficulty when establishing or closing a position at a desirable price.

n	Value stocks may react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. Value stocks tend to be inexpensive relative to their earnings or assets compared to other types of stocks and may never realize their full value. Value stocks tend to be currently out-of-favor with many investors.
n	The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.

About indexes used in this report

n	The MSCI EAFE® Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East.
n	The MSCI Europe Small Cap Index is an unmanaged index considered representative of small-cap European stocks.
n	The Lipper European Funds Index is an unmanaged index considered representative of European funds tracked by Lipper.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

continued on page 7

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 Nasdaq Symbols

Class A Shares	ESMAX
Class B Shares	ESMBX
Class C Shares	ESMCX
Class Y Shares	ESMYX

8 Invesco European Small Company Fund

Schedule of Investments

December 31, 2010

	Shares		Value
Common Stocks & Other Equity Interests–93.60%
Austria–3.84%
Andritz AG		29,382	$	2,702,530
Semperit AG Holding		57,142		3,024,857
				5,727,387
Belgium–0.53%
Van De Velde N.V.		15,000		794,237
Brazil–4.69%
Ocean Wilsons Holdings Ltd.		325,000		6,995,703
France–5.88%
Maisons France Confort		18,900		783,407
Plastic Omnium SA		25,000		1,771,657
Sopra Group S.A.		13,600		1,051,068
Sword Group		78,300		2,389,138
Tessi S.A.		17,370		1,428,364
Trigano S.A.(a)		42,800		1,344,855
				8,768,489
Germany–7.79%
CTS Eventim AG		20,000		1,235,882
MorphoSys AG(a)		66,454		1,646,495
SMT Scharf AG		44,800		1,105,193
Takkt AG		129,903		1,875,888
Wirecard AG		419,819		5,753,735
				11,617,193
Greece–2.79%
Intralot S.A.		667,692		2,223,000
Jumbo S.A.		293,214		1,936,759
				4,159,759
Ireland–9.48%
Abbey PLC		50,000		340,961
CPL Resources PLC		582,792		1,971,505
DCC PLC		176,220		5,560,721
IFG Group PLC		742,000		1,289,767
Origin Enterprises PLC		407,757		1,744,678
Paddy Power PLC		78,872		3,237,614
				14,145,246
Israel–1.21%
VIZRT Ltd.(a)		438,105		1,805,037
Italy–0.74%
Danieli S.p.A.–Officine Meccaniche Danieli & C.		64,000		1,105,621
Netherlands–2.21%
Mediq N.V.		104,860		1,965,056
Sligro Food Group N.V.		42,985		1,333,713
				3,298,769
Norway–5.82%
Bonheur ASA		27,350		835,745
Ganger Rolf ASA		31,000		872,775
Prosafe S.E.		380,600		3,031,680
Q-Free A.S.A.(a)		222,675		661,324
TGS Nopec Geophysical Co. A.S.A.		145,526		3,285,209
				8,686,733
Singapore–1.28%
XP Power Ltd.		117,520		1,910,066
Spain–2.36%
Construcciones y Auxiliar de Ferrocarriles S.A.		1,907		994,441
Miquel y Costas & Miquel, S.A.		55,000		1,656,132
Prosegur, Compania de Seguridad S.A.		15,501		873,203
				3,523,776
Sweden–0.64%
Fenix Outdoor AB		33,500		947,666
Switzerland–6.23%
Aryzta AG		71,194		3,330,820
Mobilezone Holding AG		167,589		1,887,767
Schweiter Technologies AG		5,070		4,071,635
				9,290,222
Turkey–1.73%
Yazicilar Holding A.S.–Class A		296,321		2,584,642
United Kingdom–36.38%
Alterian PLC(a)		260,693		853,921
Amlin PLC		362,057		2,309,208
Chemring Group PLC		64,717		2,931,460
Clarkson PLC		114,500		2,019,933
CPP Group PLC		776,577		3,658,141
Diploma PLC		508,327		2,200,265
Education Development International PLC		610,200		970,826
Game Group PLC		799,628		873,082
Halma PLC		481,797		2,697,910
Hargreaves Services PLC		51,288		653,992
Hill & Smith Holdings PLC		181,730		786,608
Homeserve PLC		389,783		2,695,191
IG Group Holdings PLC		327,151		2,602,480
Informa PLC		309,868		1,969,578

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

9        Invesco European Small Company Fund

	Shares		Value
United Kingdom–(continued)
Kier Group PLC		223,548	$	4,784,029
Lancashire Holdings Ltd.		549,432		4,739,232
Mears Group PLC		612,962		2,896,977
Micro Focus International PLC		206,171		1,250,003
Mitie Group PLC		1,008,034		3,682,400
Morgan Sindall Group PLC		135,526		1,490,324
N Brown Group PLC		188,724		877,816
Playtech Ltd.		197,400		1,305,515
RSM Tenon Group PLC		1,574,000		1,423,973
Tribal Group PLC		750,000		546,905
Tullett Prebon PLC		233,200		1,392,417
Ultra Electronics Holdings PLC		100,370		2,655,209
				54,267,395
Total Common Stocks & Other Equity Interests (Cost $112,048,211)				139,627,941
Money Market Funds–6.29%
Liquid Assets Portfolio–Institutional Class(b)		4,689,601		4,689,601
Premier Portfolio–Institutional Class(b)		4,689,601		4,689,601
Total Money Market Funds (Cost $9,379,202)				9,379,202
TOTAL INVESTMENTS–99.89% (Cost $121,427,413)				149,007,143
OTHER ASSETS LESS LIABILITIES–0.11%				166,449
NET ASSETS–100.00%			$	149,173,592

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.

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

10        Invesco European Small Company Fund

Statement of Assets and Liabilities

December 31, 2010

Assets:
Investments, at value (Cost $112,048,211)	$	139,627,941
Investments in affiliated money market funds, at value and cost		9,379,202
Total investments, at value (Cost $121,427,413)		149,007,143
Receivables for:
Fund shares sold		174,729
Dividends		1,315,593
Investment for trustee deferred compensation and retirement plans		26,823
Other assets		23,686
Total assets		150,547,974
Liabilities:
Payable for:
Fund shares reacquired		1,119,422
Accrued fees to affiliates		132,648
Accrued other operating expenses		66,382
Trustee deferred compensation and retirement plans		55,930
Total liabilities		1,374,382
Net assets applicable to shares outstanding	$	149,173,592
Net assets consist of:
Shares of beneficial interest	$	121,236,374
Undistributed net investment income (loss)		(471,096	)
Undistributed net realized gain		805,847
Unrealized appreciation		27,602,467
	$	149,173,592
Net Assets:
Class A	$	100,141,933
Class B	$	13,621,305
Class C	$	18,801,410
Class Y	$	16,608,944
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		8,697,055
Class B		1,255,599
Class C		1,731,085
Class Y		1,438,687
Class A:
Net asset value per share	$	11.51
Maximum offering price per share (Net asset value of $11.51 divided by 94.50%)	$	12.18
Class B:
Net asset value and offering price per share	$	10.85
Class C:
Net asset value and offering price per share	$	10.86
Class Y:
Net asset value and offering price per share	$	11.54

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

11        Invesco European Small Company Fund

Statement of Operations

For the year ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $223,197)	$	4,304,812
Dividends from affiliated money market funds		13,485
Total investment income		4,318,297
Expenses:
Advisory fees		1,293,789
Administrative services fees		50,000
Custodian fees		76,013
Distribution fees:
Class A		230,579
Class B		139,507
Class C		180,109
Transfer agent fees		423,180
Trustees’ and officers’ fees and benefits		19,920
Other		155,218
Total expenses		2,568,315
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(17,105	)
Net expenses		2,551,210
Net investment income		1,767,087
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		19,798,267
Foreign currencies		63,390
		19,861,657
Change in net unrealized appreciation (depreciation) of:
Investment securities		1,095,527
Foreign currencies		(11,920	)
		1,083,607
Net realized and unrealized gain		20,945,264
Net increase in net assets resulting from operations	$	22,712,351

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

12        Invesco European Small Company Fund

Statement of Changes in Net Assets

For the years ended December 31, 2010 and 2009

	2010			2009
Operations:
Net investment income	$	1,767,087		$	2,066,547
Net realized gain (loss)		19,861,657			(8,460,886	)
Change in net unrealized appreciation		1,083,607			62,029,992
Net increase in net assets resulting from operations		22,712,351			55,635,653
Distributions to shareholders from net investment income:
Class A		(1,696,124	)		(2,689,435	)
Class B		(195,982	)		(230,553	)
Class C		(268,735	)		(288,301	)
Class Y		(328,530	)		(277,261	)
Total distributions from net investment income		(2,489,371	)		(3,485,550	)
Share transactions–net:
Class A		(23,233,259	)		1,113,375
Class B		(4,420,096	)		(1,865,346	)
Class C		(4,325,243	)		(1,603,115	)
Class Y		1,718,663			2,435,580
Net increase (decrease) in net assets resulting from share transactions		(30,259,935	)		80,494
Net increase (decrease) in net assets		(10,036,955	)		52,230,597
Net assets:
Beginning of year		159,210,547			106,979,950
End of year (includes undistributed net investment income (loss) of $(471,096) and $(1,145,176), respectively)	$	149,173,592		$	159,210,547

Notes to Financial Statements

December 31, 2010

NOTE 1—Significant Accounting Policies

Invesco European Small Company Fund (the “Fund”) is a series portfolio of AIM Funds Group (Invesco 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 C shares are sold with a CDSC. Class Y shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

  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

13        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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
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

14        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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
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%

15        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, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 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 and non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 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 year ended December 31, 2010, the Adviser waived advisory fees of $15,463.

  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 year ended December 31, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $433.

  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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 2010, IDI advised the Fund that IDI retained $16,358 in front-end sales commissions from the sale of Class A shares and $0, $20,554 and $3,405 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

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.

16        Invesco European Small Company Fund

  The following is a summary of the tiered valuation input levels, as of December 31, 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	$	5,727,387	$	—	$	—	$	5,727,387
Belgium		794,237		—		—		794,237
Brazil		6,995,703		—		—		6,995,703
France		8,768,489		—		—		8,768,489
Germany		11,617,193		—		—		11,617,193
Greece		4,159,759		—		—		4,159,759
Ireland		14,145,246		—		—		14,145,246
Israel		1,805,037		—		—		1,805,037
Italy		1,105,621		—		—		1,105,621
Netherlands		1,333,713		1,965,056		—		3,298,769
Norway		8,686,733		—		—		8,686,733
Singapore		1,910,066		—		—		1,910,066
Spain		3,523,776		—		—		3,523,776
Sweden		947,666		—		—		947,666
Switzerland		7,402,455		1,887,767		—		9,290,222
Turkey		2,584,642		—		—		2,584,642
United Kingdom		54,267,395		—		—		54,267,395
United States		9,379,202		—		—		9,379,202
Total Investments	$	145,154,320	$	3,852,823	$	—	$	149,007,143

*  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 year ended December 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,209.

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 year ended December 31, 2010, the Fund paid legal fees of $2,810 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.

17        Invesco European Small Company Fund

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended December 31, 2010 and 2009:

	2010		2009
Ordinary income	$	2,489,371	$	3,485,550

Tax Components of Net Assets at Period-End:

	2010
Undistributed ordinary income	$	3,346,018
Undistributed long-term gain		837,470
Net unrealized appreciation — investments		23,784,505
Net unrealized appreciation (depreciation) — other investments		22,736
Temporary book and tax differences		(53,511	)
Shares of beneficial interest		121,236,374
Total net assets	$	149,173,592

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and passive foreign investment companies.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

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

  The Fund utilized $17,770,806 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has $0 of capital loss carryforward as of December 31, 2010.

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 year ended December 31, 2010 was $26,801,870 and $58,207,167, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	31,410,378
Aggregate unrealized (depreciation) of investment securities		(7,625,873	)
Net unrealized appreciation of investment securities	$	23,784,505
Cost of investments for tax purposes is $125,222,638.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of passive foreign investment company transactions on December 31, 2010, undistributed net investment income (loss) was increased by $1,396,364 and undistributed net realized gain was decreased by $1,396,364. This reclassification had no effect on the net assets of the Fund.

18        Invesco European Small Company Fund

NOTE 10—Share Information

	Summary of Share Activity
	Years ended December 31,
	2010(a)						2009
	Shares			Amount			Shares			Amount
Sold:
Class A		2,148,234		$	22,478,162			6,829,118		$	61,823,438
Class B		118,205			1,138,170			371,242			2,947,316
Class C		189,252			1,852,058			553,893			4,760,636
Class Y		496,619			5,084,696			320,199			2,779,763
Issued as reinvestment of dividends:
Class A		146,802			1,642,711			263,280			2,551,375
Class B		17,935			189,217			23,805			218,527
Class C		24,557			259,322			29,723			273,154
Class Y		28,698			321,997			28,388			275,649
Automatic conversion of Class B shares to Class A shares:
Class A		142,899			1,449,536			209,797			1,602,675
Class B		(151,509	)		(1,449,536	)		(222,045	)		(1,602,675	)
Reacquired:(b)
Class A		(4,875,660	)		(48,803,668	)		(7,288,720	)		(64,864,113	)
Class B		(459,566	)		(4,297,947	)		(472,565	)		(3,428,514	)
Class C		(679,200	)		(6,436,623	)		(886,053	)		(6,636,905	)
Class Y		(350,833	)		(3,688,030	)		(70,092	)		(619,832	)
Net increase (decrease) in share activity		(3,203,567	)	$	(30,259,935	)		(310,030	)	$	80,494

(a)

There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 17% 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 $6,694 and $8,489 allocated among the classes based on relative net assets of each class for the years ended December 31, 2010 and 2009, respectively.

19        Invesco European Small Company 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			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
Year ended 12/31/10	$	9.88	$	0.15	(d)	$	1.68		$	1.83		$	(0.20	)	$	—		$	(0.20	)	$	11.51		18.55	%	$	100,142		1.70	%(e)		1.71	%(e)		1.42	%(e)		21	%
Year ended 12/31/09		6.52		0.14	(d)		3.43			3.57			(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
Class B
Year ended 12/31/10		9.35		0.07	(d)		1.59			1.66			(0.16	)		—			(0.16	)		10.85		17.76			13,621		2.45	(e)		2.46	(e)		0.67	(e)		21
Year ended 12/31/09		6.18		0.07	(d)		3.23			3.30			(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
Class C
Year ended 12/31/10		9.36		0.07	(d)		1.59			1.66			(0.16	)		—			(0.16	)		10.86		17.74			18,801		2.45	(e)		2.46	(e)		0.67	(e)		21
Year ended 12/31/09		6.18		0.07	(d)		3.24			3.31			(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
Class Y
Year ended 12/31/10		9.90		0.17	(d)		1.69			1.86			(0.22	)		—			(0.22	)		11.54		18.89			16,609		1.45	(e)		1.46	(e)		1.67	(e)		21
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 $92,232, $13,951, $18,011 and $14,180 for Class A, Class B, Class C and Class Y shares, respectively.
(f)	Commencement date of October 3, 2008.
(g)	Annualized.

20        Invesco European Small Company Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Funds Group (Invesco Funds Group)

and Shareholders of Invesco European Small Company Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco European Small Company Fund (formerly known as AIM European Small Company Fund; one of the funds constituting AIM Funds Group (Invesco Funds Group), hereafter referred to as the “Fund”) at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

February 22, 2011

Houston, Texas

21        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 July 1, 2010 through December 31, 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	(07/01/10)		(12/31/10)1		Period2		(12/31/10)		Period2		Ratio
A	$	1,000.00	$	1,304.30	$	9.64	$	1,016.84	$	8.44		1.66	%
B		1,000.00		1,301.50		13.98		1,013.06		12.23		2.41
C		1,000.00		1,301.10		13.98		1,013.06		12.23		2.41
Y		1,000.00		1,306.30		8.20		1,018.10		7.17		1.41

1	The actual ending account value is based on the actual total return of the Fund for the period July 1, 2010 through December 31, 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 184/365 to reflect the most recent fiscal half year.

22        Invesco European Small Company Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended December 31, 2010:

Federal and State Income Tax
Qualified Dividend Income*	76%
Corporate Dividends Received Deduction*	0%

*  The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

23        Invesco European Small Company Fund

Trustees and Officers

The address of each trustee and officer is AIM Funds Groups (Invesco Funds Group) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1987	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie		208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208		Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208		Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208		None
Lewis F. Pennock — 1942 Trustee	1992	Partner, law firm of Pennock & Cooper	208		None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208		None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226		Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208		None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1992	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Counsel to the Fund
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103

Investment Adviser
Invesco Advisers, Inc.
1555 Peachtree Street, N.E.
Atlanta, GA 30309

Counsel to the Independent Trustees
Kramer, Levin, Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036-2714

Distributor
Invesco Distributors, Inc.
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Transfer Agent
Invesco Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

Auditors
PricewaterhouseCoopers LLP
1201 Louisiana Street, Suite 2900
Houston, TX 77002-5678

Custodian
State Street Bank and Trust Company
225 Franklin
Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

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.
     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-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders	December 31, 2010
Invesco Global Core Equity Fund

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
12	Financial Statements
14	Notes to Financial Statements
21	Financial Highlights
22	Auditor’s Report
23	Fund Expenses
24	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial adviser to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial adviser will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

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

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Global Core Equity Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds. As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisers with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Global Core Equity Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended December 31, 2010, Invesco Global Core Equity Fund, at net asset value, underperformed its benchmark indexes, the MSCI World Index and the Lipper Global Large-Cap Core Funds Index. Our focus on investing in what we believe are well established large-capitalization companies with superior financial attributes contributed to the Fund’s positive absolute performance. Stock selection within the telecommunication services and information technology (IT) sectors contributed positively to performance, while holdings in the financials, industrials, materials and consumer discretionary sectors detracted from performance during the reporting period.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 12/31/09 to 12/31/10, 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	6.77	%
Class B Shares	5.96
Class C Shares	5.95
Class Y Shares	7.05
Institutional Class Shares	7.45
MSCI World Index▼(Broad Market/Style-Specific Index)	11.76
Lipper Global Large-Cap Core Funds Index▼(Peer Group Index)	11.00

^▼ Lipper Inc.

How we invest

The Fund invests primarily in stocks of mid- and large-cap global companies with a record of stable earnings and strong balance sheets that are offering attractive valuations relative to the broad market and peers. We take a bottom-up, research driven approach. We begin with a universe of global equity securities with greater than $1 billion in market capitalization and up to 10 years of financial statement information from both developed and emerging markets. We make adjustments to each company’s financial history for inflation rates and select accounting conventions to create a comparable basis for analysis. We then rank the universe

Portfolio Composition

By sector

Financials	19.0	%
Energy	14.9
Health Care	11.1
Consumer Discretionary	10.2
Information Technology	10.0
Industrials	9.0
Materials	8.4
Consumer Staples	7.9
Telecommunication Services	5.4
Utilities	3.8
Money Market Funds Plus Other Assets
Less Liabilities	0.3

Total Net Assets	$77.0 million
Total Number of Holdings*		114

using a proprietary three-factor valuation ranking model that combines a company’s implied return, price/book ratio and price/earnings ratio. Attractively ranked companies are then subjected to rigorous fundamental research focused on evaluating the sustainability of company profitability. The most attractive stocks from the valuation screen which have also successfully passed rigorous fundamental research are candidates for inclusion in the portfolio. At the portfolio level, we seek to achieve appropriate diversification relative to the index and take a long-term investment horizon in evaluating companies, which results in relatively low rates of portfolio turnover.

Top 10 Equity Holdings*

1.	Royal Dutch Shell PLC-Class B	2.4	%
2.	ACE Ltd.	2.3
3.	Chevron Corp.	2.2
4.	BHP Billiton Ltd.	2.1
5.	General Dynamics Corp.	2.1
6.	Archer-Daniels-Midland Co.	2.0
7.	Oracle Corp.	1.9
8.	Coach, Inc.	1.9
9.	Nissan Motor Co., Ltd.	1.9
10.	ConocoPhillips	1.8

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*Excluding money market fund holdings.

     We strive to maintain a consistent investment discipline through varying market conditions and an appropriate level of overall portfolio diversification. Individual holdings are selected based on their own merits, however, and not on projections of country or sector performance.

     Our sell discipline is a replication of the security selection process in that we look to trim or liquidate positions in the portfolio based on valuation, fundamentals or portfolio design considerations.

Market conditions and your Fund

After rallying for much of 2009 on prospects of improving global economic conditions, global equity markets faced headwinds in 2010. Notably, several southern European economies, including Greece, Spain, Portugal and Italy, faced solvency concerns amid massive fiscal deficits. Although the U.S. economy continued with a positive growth rate in 2010, investors continued to be concerned about high unemployment and a still-weak housing market. The reporting period ended with a market upswing as a flurry of private sector merger and acquisition activity began – a sign of cash-rich corporations and strong balance sheets.

     In contrast, China enacted credit-tightening measures in early 2010 in an attempt to slow its economy. The combination of robust domestic economic developments and largely upbeat corporate earnings supported Asian equity markets during the reporting period. However, concerns about potential overheating in emerging market economies, coupled with concerns of a potential double-dip recession in developed economies, continued to foster uncertainty about the pace and vigor of a global economic recovery.

     At the beginning of the year, riskier assets, like stocks, were outperforming securities considered safe havens, such as U.S. Treasuries. This trend continued through the middle of April 2010. Renewed credit problems overseas and the market correction that occurred in May, June and August, however, created a more uncertain environment, which prompted many investors to favor safety over risk. Although the path to economic recovery remained uncertain, several positive trends fueled a resurgence in global equity markets during the last few months of the reporting period. As bottom-up investors, we believe the number of potential investment opportunities in attractive companies has increased materially in recent months.

4 Invesco Global Core Equity Fund

Because above-average market volatility may persist for some time, we believe our investment approach is well suited for the current climate.

     The Fund stayed true to its process and benefited from its quality orientation in stock selection. Our stock selection in the telecommunication services and IT sectors made the largest contribution to the Fund’s relative performance. Outside of these sectors, several holdings in the consumer discretionary sector contributed positively to the Fund, including U.S. retailer Coach and German automobile maker BMW. BMW’s exports benefited from growing demand in China as well as a weak euro. Additionally, luxury car makers as a group saw share prices rise after an extended period of underperformance. The Fund liquidated its BMW position in the fourth quarter of 2010 following strong outperformance.

     Stock selection in the energy sector as well as an underweight position in financials detracted from relative performance, failing to keep pace with the MSCI World Index gains. The Fund’s negative performance in the energy sector was due largely to our allocation to energy corporation BP, which faced a difficult environment in the wake of the well disaster in the Gulf of Mexico. We no longer held BP at the end of the reporting period. On an absolute basis, all sectors in the Fund posted positive returns during the year.

     From a geographic perspective, all global regions in the Fund generated positive absolute performance during the year, with the exception of Europe. Asia/Pacific contributed the most to absolute returns, while North America contributed the least on a relative basis. The Fund’s exposure to Greece, the U.K., Canada and the U.S. detracted from performance during the year. Conversely, our stock selection in Germany and Australia helped Fund performance versus the broad market/style-specific benchmark. The Fund also benefited from favorable Japanese stock selection throughout the reporting period, leading to profits from individual holdings being invested back into the portfolio. Our allocation to Japan remained slightly larger than the benchmark during the year. Additionally, exposure to non-benchmark areas such as emerging markets were positive contributors during the reporting period.

     From a positioning perspective, the Fund increased its allocation to the financials sector during the year, although it remained underweight relative to the benchmark. The Fund also increased weightings in the materials and telecommunication services sectors while

lowering its weightings in energy and IT. From a geographic perspective, the Fund maintained a healthy weighting in emerging markets, Japan and Canada, while being modestly underweight in the U.S., relative to the benchmark. Fund holdings are determined based on the merits of individual securities and not on a country or sector basis.

     Market participants are vacillating between inconsistent economic data and strong momentum in earnings from the corporate sector. At the same time, consumers, financial institutions and select governments are working to repair balance sheets. While these ultimately healthy initiatives may temper the pace of economic recovery in the near term, falling government bond yields lowered mortgage rates to even more affordable levels, thus providing some level of support for the housing market. In the face of these conflicting signals, we believe above-average equity market and foreign exchange volatility may persist. We believe our emphasis on profitability and attractive valuations has the potential to serve clients well over the long-term.

     We caution investors against making investment decisions based on short-term performance. As always, we recommend that you consult your financial adviser to discuss your individual financial program.

     We welcome any new investors who joined the Fund during the year, and to all of our shareholders we say thank you for your continued investment in Invesco Global Core Equity Fund.

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Ingrid Baker
Chartered Financial Analyst, portfolio manager, is manager of Invesco Global Core Equity Fund. She joined Invesco in 1999. Ms. Baker earned a B.A. in international politics from Oberlin College and an M.B.A. in finance from the University of Navarra.

W. Lindsay Davidson
Portfolio manager, is manager of Invesco Global Core Equity Fund. He joined Invesco in 1984. Mr. Davidson earned a degree in economics from Edinburgh University.

Sargeant McGowan
Chartered Financial Analyst, portfolio manager and Head of Developed Markets Equities, is manager of Invesco Global Core Equity Fund. He joined Invesco in 2002. Mr. McGowan earned a B.S. in commerce from the University of Virginia and an M.B.A. in investment management from the University of North Carolina.

Anuja Singha
Chartered Financial Analyst, portfolio manager, is manager of Invesco Global Core Equity Fund. She joined Invesco in 1998. Ms. Singha earned a B.A. and a Ph.D. in economics from Emory University.

Stephen Thomas
Chartered Financial Analyst, portfolio manager, is manager of Invesco Global Core Equity Fund. He joined Invesco in 2000. Mr. Thomas earned a B.B.A. in banking/finance and an M.B.A. from the University of Mississippi.

5 Invesco Global Core Equity Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Classes

Fund data from 12/29/00, index data from 12/31/00

1 Lipper Inc.

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not. Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating changes in value

during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000.

6 Invesco Global Core Equity Fund

Average Annual Total Returns

As of 12/31/10, including maximum applicable sales charges

Class A Shares
Inception (12/29/00)			4.50	%
	10	Years	4.50
	5	Years	-0.17
	1	Year	0.89
Class B Shares
Inception (12/29/00)			4.51	%
	10	Years	4.52
	5	Years	-0.17
	1	Year	0.96
Class C Shares
Inception (12/29/00)			4.36	%
	10	Years	4.36
	5	Years	0.20
	1	Year	4.95
Class Y Shares
	10	Years	5.14	%
	5	Years	1.06
	1	Year	7.05
Institutional Class Shares
	10	Years	5.41	%
	5	Years	1.55
	1	Year	7.45

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

     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 share performance reflects any applicable fee waivers or expense reimbursements.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. 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.

7 Invesco Global Core Equity Fund

Invesco Global Core Equity Fund’s investment objective is long-term growth of capital.

n	Unless otherwise stated, information presented in this report is as of December 31, 2010, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.
n	Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Please see the prospectus for more information.

Principal risks of investing in the Fund

n	Securities issued by foreign companies and governments located in developing countries may be affected more negatively by inflation, devaluation of their currencies, higher transaction costs, delays in settlement, adverse political developments, the introduction of capital controls, withholding taxes, nationalization of private assets, expropriation, social unrest, war or lack of timely information than those in developed countries.
n	The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.
n	The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.
n	The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.

About indexes used in this report

n	The MSCI World Index is an unmanaged index considered representative of stocks of developed countries.
n	The Lipper Global Large-Cap Core Funds Index is an unmanaged index considered representative of global large-cap core funds tracked by Lipper.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n	The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
n	The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.
n	Industry 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.

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 Nasdaq Symbols

Class A Shares	AWSAX
Class B Shares	AWSBX
Class C Shares	AWSCX
Class Y Shares	AWSYX
Institutional Class Shares	AWSIX

8 Invesco Global Core Equity Fund

Schedule of Investments^(a)

December 31, 2010

	Shares		Value
Common Stocks & Other Equity Interests–98.03%
Australia–4.77%
Australia & New Zealand Banking Group Ltd.		29,937	$	714,338
BHP Billiton Ltd.		35,599		1,653,361
Macquarie Group Ltd.		16,495		623,849
Telstra Corp. Ltd.		239,377		682,488
				3,674,036
Bermuda–0.88%
PartnerRe Ltd.		8,389		674,056
Brazil–1.52%
Banco Santander Brasil S.A.(b)		17,600		239,257
Companhia Energetica de Minas Gerais–ADR		12,293		203,941
PDG Realty S.A. Empreendimentos e Participacoes		41,300		252,578
Petroleo Brasileiro S.A.–ADR		6,274		237,408
Vale S.A.–ADR		6,848		236,735
				1,169,919
Canada–2.33%
Nexen Inc.		42,033		960,947
Toronto-Dominion Bank (The)		11,187		832,884
				1,793,831
China–1.00%
China Construction Bank Corp.–Class H		147,000		131,606
China Dongxiang Group Co.		277,000		119,741
China Minsheng Banking Corp., Ltd.–Class H		169,500		145,015
CNOOC Ltd.		72,575		172,683
Renhe Commercial Holdings Co., Ltd.		1,156,000		202,265
				771,310
Finland–0.88%
Nokia Oyj–ADR		65,703		678,055
France–4.59%
BNP Paribas		14,493		925,790
Bouygues S.A.		19,488		842,042
Sanofi-Aventis S.A.		12,898		828,732
Total S.A.		17,619		936,182
				3,532,746
Germany–1.30%
Salzgitter AG		12,890		995,679
Hong Kong–2.84%
Chaoda Modern Agriculture Holdings Ltd.		146,000		109,508
Cheung Kong Holdings Ltd.		52,000		800,359
China Unicom (Hong Kong) Ltd.		116,000		165,427
Esprit Holdings Ltd.		232,941		1,108,842
				2,184,136
India–0.11%
Grasim Industries Ltd.(c)		5		262
Oil and Natural Gas Corp. Ltd.(c)		3,101		80,395
				80,657
Indonesia–0.17%
PT Telekomunikasi Indonesia Tbk		149,000		132,029
Ireland–0.22%
Dragon Oil PLC(d)		20,289		170,260
Italy–1.03%
Eni S.p.A.		36,352		794,226
Japan–13.91%
Canon Inc.		15,165		777,046
FUJIFILM Holdings Corp.		21,940		793,006
Mitsubishi Corp.		43,800		1,185,183
Mitsubishi UFJ Financial Group, Inc.		216,530		1,170,216
Murata Manufacturing Co., Ltd.		11,000		770,528
Nippon Telegraph & Telephone Corp.		25,800		1,179,775
Nippon Yusen Kabushiki Kaisha		231,000		1,023,760
Nissan Motor Co., Ltd.		151,500		1,441,703
Seven & I Holdings Co., Ltd.		26,200		699,914
Sumitomo Chemical Co., Ltd.		193,000		950,387
Takeda Pharmaceutical Co., Ltd.		14,700		722,965
				10,714,483
Mexico–0.49%
America Movil S.A.B. de C.V.–Series L		66,200		189,911
Desarrolladora Homex S.A.B. de C.V.–ADR(d)		5,625		190,181
				380,092
Netherlands–1.76%
TNT N.V.		27,506		727,551
Unilever N.V.		20,221		629,973
				1,357,524
Norway–2.10%
Statoil A.S.A.		29,072		691,727
Yara International A.S.A.		15,977		925,690
				1,617,417

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

9        Invesco Global Core Equity Fund

	Shares		Value
Poland–0.32%
KGHM Polska Miedz S.A.		4,182	$	244,683
Russia–0.67%
Gazprom OAO–ADR		7,282		183,871
Magnitogorsk Iron & Steel Works–GDR		12,249		178,223
Rosneft Oil Co.–GDR		21,924		156,975
				519,069
South Africa–1.35%
Barloworld Ltd.		24,188		244,596
Sasol Ltd.		3,589		187,575
Standard Bank Group Ltd.		12,760		207,127
Steinhoff International Holdings Ltd.(d)		61,879		228,815
Tiger Brands Ltd.(d)		5,811		169,824
				1,037,937
South Korea–2.26%
Dongbu Insurance Co., Ltd.		3,300		131,883
Hyundai Mipo Dockyard Co., Ltd.		1,331		264,782
Hyundai Mobis		1,312		331,496
LG Electronics Inc.		1,061		112,305
Lotte Shopping Co., Ltd.		205		86,115
POSCO		524		226,187
Samsung Electronics Co., Ltd.		367		309,310
Shinhan Financial Group Co., Ltd.		3,720		174,767
SK Telecom Co., Ltd.		687		105,856
				1,742,701
Spain–3.16%
Banco Santander S.A.		78,351		833,002
Iberdrola S.A.		112,564		868,138
Telefonica S.A.		32,114		729,778
				2,430,918
Switzerland–5.77%
ACE Ltd.		27,899		1,736,713
Holcim Ltd.		11,699		885,035
Swisscom AG		2,222		978,598
Zurich Financial Services AG		3,263		846,235
				4,446,581
Taiwan–0.94%
AU Optronics Corp.–ADR(d)		14,478		150,860
HTC Corp.		9,283		285,138
Powertech Technology Inc.		63,200		208,634
U-Ming Marine Transport Corp.		36,000		78,023
				722,655
Thailand–0.37%
Bangkok Bank PCL–NVDR		34,800		170,180
PTT PCL		10,800		114,970
				285,150
Turkey–0.20%
Asya Katilim Bankasi A.S.		82,373		151,932
	Shares
United Kingdom–6.60%
Barclays PLC		133,336		548,797
GlaxoSmithKline PLC–ADR		18,043		707,646
Imperial Tobacco Group PLC		43,819		1,345,106
National Grid PLC		75,122		655,263
Royal Dutch Shell PLC–Class B		55,174		1,826,289
				5,083,101
United States–36.49%
3M Co.		10,972		946,884
Apache Corp.		7,447		887,906
Archer-Daniels-Midland Co.		50,261		1,511,851
Avon Products, Inc.		21,862		635,310
Bank of America Corp.		74,469		993,416
Bank of New York Mellon Corp. (The)		28,175		850,885
Best Buy Co., Inc.		16,166		554,332
Chevron Corp.		18,918		1,726,268
Coach, Inc.		26,585		1,470,416
ConocoPhillips		20,874		1,421,519
CVS Caremark Corp.		28,467		989,798
Energen Corp.		24,945		1,203,846
GameStop Corp.–Class A(d)		37,741		863,514
General Dynamics Corp.		22,319		1,583,756
Gilead Sciences, Inc.(d)		19,524		707,550
Johnson & Johnson		22,459		1,389,089
Merck & Co., Inc.		39,023		1,406,389
Microsoft Corp.		29,216		815,711
Morgan Stanley		33,813		920,052
Oracle Corp.		47,898		1,499,207
Pfizer, Inc.		39,896		698,579
Stryker Corp.		13,661		733,596
Valero Energy Corp.		40,267		930,973
W. R. Berkley Corp.		22,699		621,499
WellPoint Inc.(d)		24,184		1,375,102
Western Digital Corp.(d)		40,166		1,361,626
				28,099,074
Total Common Stocks & Other Equity Interests (Cost $69,184,264)				75,484,257

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

10        Invesco Global Core Equity Fund

	Shares		Value
Preferred Stocks–1.63%
Brazil–0.18%
Usinas Siderurgicas de Minas Gerais S.A.–Class A–Pfd.		11,900	$	137,244
Germany–1.45%
Porsche Automobil Holding SE–Pfd.		13,954		1,113,130
Total Preferred Stocks (Cost $1,094,868)				1,250,374
Money Market Funds–0.54%
Liquid Assets Portfolio–Institutional Class(e)		206,984		206,984
Premier Portfolio–Institutional Class(e)		206,984		206,984
Total Money Market Funds (Cost $413,968)				413,968
TOTAL INVESTMENTS–100.19% (Cost $70,693,100)				77,148,599
OTHER ASSETS LESS LIABILITIES–(0.19)%				(148,815	)
NET ASSETS–100.00%			$	76,999,784

Investment Abbreviations:

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

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)	Each unit represents two Series A shares and one Series B share.
(c)	Security considered to be illiquid. The aggregate value of these securities considered illiquid at December 31, 2010 was $89,619, which represented 0.12% of the Fund’s Net Assets.
(d)	Non-income producing security.
(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.

11        Invesco Global Core Equity Fund

Statement of Assets and Liabilities

December 31, 2010

Assets:
Investments, at value (Cost $70,279,132)	$	76,734,631
Investments in affiliated money market funds, at value and cost		413,968
Total investments, at value (Cost $70,693,100)		77,148,599
Foreign currencies, at value (Cost $26,273)		26,625
Receivables for:
Fund shares sold		13,868
Dividends		162,774
Investment for trustee deferred compensation and retirement plans		23,279
Other assets		34,227
Total assets		77,409,372
Liabilities:
Payable for:
Fund shares reacquired		203,904
Accrued fees to affiliates		85,670
Accrued other operating expenses		80,955
Trustee deferred compensation and retirement plans		39,059
Total liabilities		409,588
Net assets applicable to shares outstanding	$	76,999,784
Net assets consist of:
Shares of beneficial interest	$	106,389,880
Undistributed net investment income		219,234
Undistributed net realized gain (loss)		(36,075,628	)
Unrealized appreciation		6,466,298
	$	76,999,784
Net assets:
Class A	$	55,729,812
Class B	$	9,509,366
Class C	$	11,042,206
Class Y	$	688,573
Institutional Class	$	29,827
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		4,249,181
Class B		753,137
Class C		874,042
Class Y		52,517
Institutional Class		2,258
Class A:
Net asset value per share	$	13.12
Maximum offering price per share (Net asset value of $13.12 divided by 94.50%)	$	13.88
Class B:
Net asset value and offering price per share	$	12.63
Class C:
Net asset value and offering price per share	$	12.63
Class Y:
Net asset value and offering price per share	$	13.11
Institutional Class:
Net asset value and offering price per share	$	13.21

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

12        Invesco Global Core Equity Fund

Statement of Operations

For the year ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $130,058)	$	2,123,148
Dividends from affiliated money market funds		1,064
Total investment income		2,124,212
Expenses:
Advisory fees		650,960
Administrative services fees		50,000
Custodian fees		60,885
Distribution fees:
Class A		145,504
Class B		109,017
Class C		115,401
Transfer agent fees — A, B, C and Y		315,916
Transfer agent fees — Institutional		27
Trustees’ and officers’ fees and benefits		18,287
Other		146,685
Total expenses		1,612,682
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(2,567	)
Net expenses		1,610,115
Net investment income		514,097
Realized and unrealized gain from:
Net realized gain (loss) from:
Investment securities (net of foreign taxes of $13,706)		1,414,182
Foreign currencies (net of foreign taxes of $3,536)		(49,800	)
		1,364,382
Change in net unrealized appreciation of:
Investment securities (net of foreign taxes on holdings of $19,901)		2,503,265
Foreign currencies		8,343
		2,511,608
Net realized and unrealized gain		3,875,990
Net increase in net assets resulting from operations	$	4,390,087

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

13        Invesco Global Core Equity Fund

Statement of Changes in Net Assets

For the years ended December 31, 2010 and 2009

	December 31,			December 31,
	2010			2009
Operations:
Net investment income	$	514,097		$	763,168
Net realized gain (loss)		1,364,382			(11,578,725	)
Change in net unrealized appreciation		2,511,608			32,714,108
Net increase in net assets resulting from operations		4,390,087			21,898,551
Distributions to shareholders from net investment income:
Class A		(361,718	)		(396,226	)
Class B		(31,857	)		—
Class C		(36,303	)		—
Class Y		(7,114	)		(5,551	)
Institutional Class		(368	)		(132	)
Total distributions from net investment income		(437,360	)		(401,909	)
Share transactions–net:
Class A		(12,568,445	)		(10,655,352	)
Class B		(4,271,634	)		(5,438,131	)
Class C		(2,389,057	)		(2,717,377	)
Class Y		(9,992	)		158,712
Institutional Class		18,681			(86,314	)
Net increase (decrease) in net assets resulting from share transactions		(19,220,447	)		(18,738,462	)
Net increase (decrease) in net assets		(15,267,720	)		2,758,180
Net assets:
Beginning of year		92,267,504			89,509,324
End of year (includes undistributed net investment income of $219,234 and $205,555, respectively)	$	76,999,784		$	92,267,504

Notes to Financial Statements

December 31, 2010

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), (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 C shares are sold with a CDSC. Class Y and Institutional Class shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

  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

14        Invesco Global Core Equity Fund

	security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

15        Invesco Global Core Equity Fund

D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
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.

16        Invesco Global Core Equity 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	.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%

  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 and/or expense reimbursement (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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2011. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 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 year ended December 31, 2010, the Adviser waived advisory fees of $1,305.

  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 year ended December 31, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $366.

  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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 2010, IDI advised the Fund that IDI retained $9,623 in front-end sales commissions from the sale of Class A shares and $0, $16,073 and $618 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.

17        Invesco Global Core Equity Fund

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of December 31, 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	$	2,020,675	$	1,653,361	$	—	$	3,674,036
Bermuda		674,056		—		—		674,056
Brazil		1,067,906		239,257		—		1,307,163
Canada		1,793,831		—		—		1,793,831
China		467,021		304,289		—		771,310
Finland		678,055		—		—		678,055
France		—		3,532,746		—		3,532,746
Germany		2,108,809		—		—		2,108,809
Hong Kong		1,218,351		965,785		—		2,184,136
India		—		—		80,657		80,657
Indonesia		—		132,029		—		132,029
Ireland		170,260		—		—		170,260
Italy		794,226		—		—		794,226
Japan		8,757,662		1,956,821		—		10,714,483
Mexico		380,092		—		—		380,092
Netherlands		629,973		727,551		—		1,357,524
Norway		1,617,417		—		—		1,617,417
Poland		—		244,683		—		244,683
Russia		519,069		—		—		519,069
South Africa		1,037,937		—		—		1,037,937
South Korea		1,404,209		338,492		—		1,742,701
Spain		868,138		1,562,780		—		2,430,918
Switzerland		4,446,581		—		—		4,446,581
Taiwan		514,021		208,634		—		722,655
Thailand		285,150		—		—		285,150
Turkey		—		151,932		—		151,932
United Kingdom		2,052,752		3,030,349		—		5,083,101
United States		28,513,042		—		—		28,513,042
Total investments	$	62,019,233	$	15,048,709	$	80,657	$	77,148,599

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

18        Invesco Global Core Equity Fund

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 year ended December 31, 2010, the Fund received credits from these arrangements, which resulted in the reduction of the Fund’s total expenses of $896.

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 year ended December 31, 2010, the Fund paid legal fees of $2,680 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—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended December 31, 2010 and 2009:

	2010		2009
Ordinary income	$	437,360	$	401,909

Tax Components of Net Assets at Period-End:

	2010
Undistributed ordinary income	$	256,192
Net unrealized appreciation — investments		5,736,154
Net unrealized appreciation — other investments		10,799
Temporary book/tax differences		(36,960	)
Capital loss carryforward		(35,356,281	)
Shares of beneficial interest		106,389,880
Total net assets	$	76,999,784

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

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

  The Fund utilized $1,041,838 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	20,920,477
December 31, 2017		14,435,804
Total capital loss carryforward	$	35,356,281

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

19        Invesco Global Core Equity Fund

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended December 31, 2010 was $28,262,398 and $46,935,931, 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	$	10,288,418
Aggregate unrealized (depreciation) of investment securities		(4,552,264	)
Net unrealized appreciation of investment securities	$	5,736,154
Cost of investments for tax purposes is $71,412,445.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on December 31, 2010, undistributed net investment income was decreased by $63,058, undistributed net realized gain (loss) was increased by $63,508 and shares of beneficial interest decreased by $450. This reclassification had no effect on the net assets of the Fund.

NOTE 10—Share Information

	Summary of Share Activity
	Year ended December 31,
	2010(a)						2009
	Shares			Amount			Shares			Amount
Sold:
Class A		243,231		$	2,969,293			439,799		$	4,499,734
Class B		47,566			559,690			62,995			621,870
Class C		62,068			733,655			114,824			1,132,748
Class Y		15,143			190,907			30,514			295,810
Institutional Class		2,085			26,554			—			—
Issued as reinvestment of dividends:
Class A		26,185			337,525			30,532			374,941
Class B		2,399			29,773			—			—
Class C		2,721			33,793			—			—
Class Y		522			6,717			431			5,297
Institutional Class		17			226			11			132
Automatic conversion of Class B shares to Class A shares:
Class A		177,051			2,154,048			265,744			2,651,642
Class B		(183,698	)		(2,154,048	)		(274,570	)		(2,651,642	)
Reacquired:(b)
Class A		(1,483,998	)		(18,029,311	)		(1,805,231	)		(18,181,669	)
Class B		(231,364	)		(2,707,049	)		(363,580	)		(3,408,359	)
Class C		(269,769	)		(3,156,505	)		(396,616	)		(3,850,125	)
Class Y		(16,812	)		(207,616	)		(13,329	)		(142,395	)
Institutional Class		(706	)		(8,099	)		(11,381	)		(86,446	)
Net increase (decrease) in share activity		(1,607,359	)	$	(19,220,447	)		(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 28% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. In addition, less than 1% of the outstanding shares of the Fund are owned by Invesco or an investment adviser under common control with Invesco.

(b)

Net of redemption fees of $756 and $770 allocated among the classes based on relative net assets of each class for the years ended December 31, 2010 and 2009, respectively.

20        Invesco Global Core Equity Fund

NOTE 11—Significant Event

Following a number of meetings in September and October, 2010, the Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would acquire all of the assets and liabilities of Invesco Global Dividend Growth Securities Fund (the “Target Fund”) in exchange for shares of the Fund. The Agreement requires approval of the Target Fund’s shareholders and will be submitted to the shareholders for their consideration at a meeting to be held in or around April 2011.

NOTE 12—Financial Highlights

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

																											Ratio of			Ratio of
					Net gains																						expenses			expenses
					(losses)																						to average			to average net			Ratio of net
	Net asset				on securities						Dividends			Distributions													net assets			assets without			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period(b)		return(c)			(000s omitted)		absorbed			absorbed			net assets			turnover(d)
Class A
Year ended 12/31/10	$	12.36	$	0.10	$	0.74		$	0.84		$	(0.08	)	$	—		$	(0.08	)	$	13.12		6.85	%	$	55,730		1.78	%(e)		1.78	%(e)		0.84	%(e)		35	%
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
Class B
Year ended 12/31/10		11.95		0.01		0.71			0.72			(0.04	)		—			(0.04	)		12.63		6.03			9,509		2.53	(e)		2.53	(e)		0.09	(e)		35
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
Class C
Year ended 12/31/10		11.96		0.01		0.70			0.71			(0.04	)		—			(0.04	)		12.63		5.95			11,042		2.53	(e)		2.53	(e)		0.09	(e)		35
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
Class Y
Year ended 12/31/10		12.36		0.13		0.74			0.87			(0.12	)		—			(0.12	)		13.11		7.05			689		1.53	(e)		1.53	(e)		1.09	(e)		35
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
Year ended 12/31/10		12.45		0.17		0.75			0.92			(0.16	)		—			(0.16	)		13.21		7.45			30		1.23	(e)		1.23	(e)		1.38	(e)		35
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

(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) of $58,201, $10,902, $11,540, $699 and $28 for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively.
(f)	Commencement date of October 3, 2008.
(g)	Annualized.

21        Invesco Global Core Equity Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Funds Group (Invesco Funds Group)

and Shareholders of Invesco Global Core Equity Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Global Core Equity Fund (formerly known as AIM Global Core Equity Fund; one of the funds constituting AIM Funds Group (Invesco Funds Group), hereafter referred to as the “Fund”) at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

February 22, 2011

Houston, Texas

22        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 July 1, 2010 through December 31, 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	(07/01/10)		(12/31/10)1		Period2		(12/31/10)		Period2		Ratio
A	$	1,000.00	$	1,221.90	$	10.25	$	1,015.98	$	9.30		1.83	%
B		1,000.00		1,216.30		14.41		1,012.20		13.09		2.58
C		1,000.00		1,217.30		14.42		1,012.20		13.09		2.58
Y		1,000.00		1,222.80		8.85		1,017.24		8.03		1.58
Institutional		1,000.00		1,225.00		7.18		1,018.75		6.51		1.28

1	The actual ending account value is based on the actual total return of the Fund for the period July 1, 2010 through December 31, 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 184/365 to reflect the most recent fiscal half year.

23        Invesco Global Core Equity Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended December 31, 2010:

Federal and State Income Tax
Qualified Dividend Income*	100.00%
Corporate Dividends Received Deduction*	100.00%

*  The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

24        Invesco Global Core Equity Fund

Trustees and Officers

The address of each trustee and officer is AIM Funds Groups (Invesco Funds Group) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1987	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie		208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208		Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208		Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208		None
Lewis F. Pennock — 1942 Trustee	1992	Partner, law firm of Pennock & Cooper	208		None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208		None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226		Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208		None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1992	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Counsel to the Fund
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103

Investment Adviser
Invesco Advisers, Inc.
1555 Peachtree Street, N.E.
Atlanta, GA 30309

Counsel to the Independent Trustees
Kramer, Levin, Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036-2714

Distributor
Invesco Distributors, Inc.
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Transfer Agent
Invesco Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

Auditors
PricewaterhouseCoopers LLP
1201 Louisiana Street, Suite 2900
Houston, TX 77002-5678

Custodian
State Street Bank and Trust Company
225 Franklin
Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

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.
     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-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders	December 31, 2010
Invesco International Small Company Fund

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
11	Financial Statements
13	Notes to Financial Statements
20	Financial Highlights
21	Auditor’s Report
22	Fund Expenses
23	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial adviser to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial adviser will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

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

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco International Small Company Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds. As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisers with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco International Small Company Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended December 31, 2010, all share classes of Invesco International Small Company Fund, at net asset value (NAV), delivered double-digit gains, outperforming the Fund’s style-specific index, the MSCI World Ex-US Small Cap Index, and meaningfully outperforming the broad market MSCI EAFE Index. The overall quality of the portfolio, the attractiveness of individual securities and our ability to identify under-followed, high-quality small-cap investments in both developed and emerging markets largely explained the Fund’s absolute and relative outperformance.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 12/31/09 to 12/31/10, 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	25.60	%
Class B Shares	24.65
Class C Shares	24.65
Class Y Shares	25.89
Institutional Class Shares	26.20
MSCI EAFE Index▼ (Broad Market Index)	7.75
MSCI World Ex-US Small Cap Index▼ (Style-Specific Index)	24.51
Lipper International Small/Mid-Cap Growth Funds Index▼ (Peer Group Index)	23.77
▼Lipper Inc.

How we invest

When selecting stocks for your Fund, we employ a disciplined investment strategy that emphasizes fundamental research, supported by both quantitative analysis and portfolio construction techniques. Our EQV (earnings, quality and valuation) strategy focuses primarily on identifying quality companies that have experienced, or exhibit the potential for, accelerated or above-average earnings growth, but their stock prices have not fully reflected these attributes.

     While research responsibilities within the portfolio management team are focused by geographic region, we select

investments for the Fund by using a bottom-up investment approach, which means that we construct the Fund primarily on a stock-by-stock basis. We focus on the strengths of individual companies rather than sectors, countries or market-cap trends.

     We believe disciplined sell decisions are the key to successful investing. We consider selling a stock for one of the following reasons:

n	A company’s fundamentals deteriorate, or it posts disappointing earnings.
n	A stock’s price seems overvalued.
n	A more attractive opportunity becomes available.

Portfolio Composition
By sector
Industrials	20.4	%
Consumer Discretionary	19.4
Financials	11.8
Energy	10.5
Information Technology	10.4
Consumer Staples	7.2
Utilities	5.9
Materials	2.7
Health Care	1.8
Money Market Funds Plus Other Assets Less Liabilities	9.9

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*Excluding money market fund holdings.

Top 10 Equity Holdings*
1.	IGB Corp. Berhad	3.4	%
2.	Total Energy Services Inc.	2.6
3.	First Pacific Co. Ltd.	2.2
4.	EXEDY Corp.	2.2
5.	TGS Nopec Geophysical Co. A.S.A.	2.2
6.	First Gen Corp.	2.2
7.	Parkson Holdings Berhad	2.2
8.	Paddy Power PLC	2.0
9.	Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao S.A.	2.0
10.	Mitie Group PLC	1.9

Total Net Assets	$550.7 million
Total Number of Holdings*		79

Market conditions and your Fund

After rallying for much of 2009 on prospects of improving global economic conditions, global equity markets faced headwinds in 2010. Notably, several southern European economies, including Greece, Spain, Portugal and Italy faced solvency concerns amid massive fiscal deficits. Although the U.S. economy continued with a positive growth rate in 2010, investors remained concerned about high unemployment and a still-weak housing market. The period ended with a market upswing as a flurry of private sector merger and acquisition activity began – a sign of cash-rich corporations and strong balance sheets.

     In contrast, China enacted credit-tightening measures in early 2010 in an attempt to slow its economy. The combination of robust domestic economic developments and largely upbeat corporate earnings supported Asian equity markets during the period. However, concerns about potential overheating in emerging market economies, coupled with concerns of a potential “double dip” recession in developed economies, continued to foster uncertainty about the pace and vigor of a global economic recovery.

     At the beginning of the year, riskier assets, like stocks, were outperforming securities considered safe havens, such as U.S. Treasuries. This trend continued through the middle of April 2010. Renewed credit problems overseas and the market correction that occurred in May, June and August, however, created a more uncertain environment, which prompted many investors to favor safety over risk. Although the path to economic recovery remained uncertain, several positive trends fueled a resurgence in global equity markets during the last few months of the reporting period.

     The performance of large-cap stocks, as represented by the MSCI EAFE Index, though positive, meaningfully lagged small cap stocks, as represented by the MSCI World Ex-US Small Cap Index, over the year, returning 7.75% versus 24.51%, respectively.¹

     In this environment, the Fund’s Class A shares at NAV returned 25.60% for the reporting period, outperforming both its style-specific and broad market benchmarks. The Fund’s emerging market exposure and its focus on small- and micro-cap stocks, were key drivers of absolute and relative results. Generally,

4 Invesco International Small Company Fund

an increased risk appetite led to investors favoring more cyclical and small-cap equities over defensive stocks. Although valuations in this space rose, we believe high quality growth opportunities in smaller, less followed companies may be available.

     The Fund delivered positive and in some cases double-digit returns across all sectors and regions in which it invests. Meaningful outperformance versus the style-specific index was seen across the financials, energy and consumer staples sectors. Solid stock selection was the key driver of this relative and absolute success. Top stock contributors included diversified energy products and service company Total Energy, Hong Kong-based investment and management company 1^st Pacific and Thailand-based convenience store operator, C. P. All Public Company. In each case, the index had very limited exposure to these stocks, demonstrating the potential benefit of the Fund’s bottom-up, actively managed investment approach.

     In contrast, despite delivering strong double-digit gains in the materials sector, the Fund’s underweight exposure detracted from relative results. We remain hesitant to invest in companies in this sector due to their heavy dependence on underlying commodity prices, an element driven by macroeconomic factors which we have no ability to predict. Additionally, we believe that a vast majority of companies in this sector lack pricing power.

     From a country perspective, the biggest successes came from Canada, China and Japan, as well as smaller markets such as Thailand and the Philippines. The latter markets offered a combination of solid fundamentals, attractive valuations and a strong consumer base. Select holdings in Greece detracted marginally from Fund performance. Notable underperformers included Jumbo, the Greek hypermarket retailer and Intralot, the Greek lottery operator.

     We primarily focus on companies that have well-capitalized balance sheets, with limited to no debt. This focus remained unchanged in 2010. Strong balance sheets give companies flexibility, which is always valuable but particularly so in today’s highly uncertain environment. As always, we continued to emphasize strong cash flow generation and attractive valuations.

     Although the continued rally in non-U.S. small-cap stocks no longer provides a valuation advantage over international large-cap stocks, international small-cap stocks remained at a

significant discount to U.S. small-cap stocks, further supporting the case for small-cap diversification abroad.

     Over the past 12 months, the Fund delivered double-digit returns. While we are pleased to provide shareholders with this strong performance, it would be imprudent for us to suggest that such a level of performance is sustainable over the long term. We recommend that you consult your financial adviser to discuss your individual financial program.

     At the close of the reporting period, we remained focused on investing according to our fundamentally driven investment process and maintaining our long-term investment view. We thank you for your continued investment in Invesco International Small Company Fund.

1 Lipper Inc.

The views and opinions expressed in management’s
discussion of Fund performance are those of Invesco
Advisers, Inc. These views and opinions are subject
to change at any time based on factors such as market
and economic conditions. These views and opinions may
not be relied upon as investment advice or
recommendations, or as an offer for a particular
security. The information is not a complete analysis
of every aspect of any market, country, industry,
security or the Fund. Statements of fact are from
sources considered reliable, but Invesco Advisers,
Inc. makes no representation or warranty as to their
completeness or accuracy. Although historical
performance is no guarantee of future results, these
insights may help you understand our investment
management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Jason Holzer

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco International Small Company Fund with respect to the Fund’s European and Canadian investments. Mr. Holzer joined Invesco in 1996. He earned a B.A. in quantitative economics and an M.S. in engineering economic systems from Stanford University.

Shuxin Cao

Chartered Financial Analyst, portfolio manager, is lead manager of Invesco International Small Company Fund with respect to the Fund’s Asia Pacific and Latin America investments. He joined Invesco in 1997. Mr. Cao graduated from Tianjin Foreign Language Institute with a B.A. in English and also earned an M.B.A. from Texas A&M University. He is a Certified Public Accountant.

Borge Endresen

Chartered Financial Analyst, portfolio manger, is manager of Invesco International Small Company Fund.

Mr. Endresen joined Invesco in 1999. He graduated summa cum laude from the University of Oregon with a B.S. in finance. Mr. Endresen also earned an M.B.A. from The University of Texas at Austin.

Assisted by the Asia Pacific/Latin
America Team and Europe/Canada Team

5 Invesco International Small Company Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Classes since Inception

Fund and index data from 8/31/00

1 Lipper Inc.

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not. Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $2,500 and $5,000 is the same size as the space between $5,000 and $10,000, and so on.

6 Invesco International Small Company Fund

Average Annual Total Returns

As of 12/31/10, including maximum applicable sales charges

Class A Shares
Inception (8/31/00)	11.87	%
10 Years	14.87
5 Years	7.86
1 Year	18.66
Class B Shares
Inception (8/31/00)	11.87	%
10 Years	14.87
5 Years	8.01
1 Year	19.65
Class C Shares
Inception (8/31/00)	11.69	%
10 Years	14.70
5 Years	8.28
1 Year	23.65
Class Y Shares
10 Years	15.59	%
5 Years	9.21
1 Year	25.89
Institutional Class Shares
10 Years	15.79	%
5 Years	9.58
1 Year	26.20

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. 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.

7 Invesco International Small Company Fund

Invesco International Small Company Fund’s investment objective is long-term growth of capital.

n	Unless otherwise stated, information presented in this report is as of December 31, 2010, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.
n	Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Please see the prospectus for more information.

Principal risks of investing in the Fund

n

Securities issued by foreign companies and governments located in developing countries may be affected more negatively by inflation, devaluation of their currencies, higher transaction costs, delays in settlement, adverse political developments, the introduction of capital controls, withholding taxes, nationalization of private assets, expropriation, social unrest, war or lack of timely information than those in developed countries.

n

An investment by an underlying fund in ETFs generally presents the same primary risks as an investment in a mutual fund. In addition, ETFs may be subject to the following: (1) a discount of the ETF’s shares to its net asset value; (2) failure to develop an active trading market for the ETF’s shares; (3) the listing exchange halting trading of the ETF’s shares; (4) failure of the ETF’s shares to track the referenced index; and (5) holding troubled securities in the referenced index. ETFs may involve duplication of management fees and certain other expenses, as the Fund indirectly bears its proportionate share of any expenses paid by the ETFs in which it invests. Further, certain of the ETFs in which the Fund may invest are leveraged. The more a Fund invests in such leveraged ETFs, the more this leverage will magnify any losses on those investments.

n	The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.
n	The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.
n	The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.
n	The Fund is non-diversified and can invest a greater portion of its assets in a single issuer. A change in the value of the issuer could affect the value of the Fund more than if it was a diversified fund.
n	Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments in the above factors and may have little or no operating history or track record of success, and limited product lines, markets, management and financial resources. The securities of small and mid-sized companies may be more volatile due to less market interest and less publicly available information about the issuer. They also may be illiquid or restricted as to resale, or may trade less frequently and in smaller volumes, all of which may cause difficulty when establishing or closing a position at a desirable price.

About indexes used in this report

n	The MSCI EAFE® Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East.
n	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.
n	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.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n	The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
n	CPA® and Certified Public Accountant® are trademarks owned by the American Institute of Certified Public Accountants.
n	The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.
n	Industry 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.

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 Nasdaq Symbols
Class A Shares	IEGAX
Class B Shares	IEGBX
Class C Shares	IEGCX
Class Y Shares	IEGYX
Institutional Class Shares	IEGIX

8 Invesco International Small Company Fund

Schedule of Investments

December 31, 2010

	Shares		Value
Common Stocks–89.92%
Austria–1.14%
Andritz AG		68,372	$	6,288,796
Brazil–3.51%
Diagnosticos da America S.A.(a)		431,900		5,849,485
Equatorial Energia S.A.		377,600		2,591,127
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao S.A.		892,000		10,872,811
				19,313,423
Canada–22.12%
Aastra Technologies Ltd.		166,100		3,860,622
AG Growth International, Inc.		62,890		3,157,427
Bird Construction Income Fund		90,000		3,343,528
Breakwater Resources, Ltd.(a)		859,368		5,583,781
Calian Technologies Ltd.		142,000		2,632,688
Calvalley Petroleum Inc.–Class A(a)		952,024		4,773,007
Canyon Services Group, Inc.		553,000		6,010,749
Churchill Corp. (The)–Class A(a)		243,500		4,465,672
Computer Modelling Group Ltd.		75,000		1,943,999
CYBERplex Inc.(a)		2,521,400		1,289,395
Descartes Systems Group Inc. (The)(a)		500,000		3,519,503
Glentel Inc.		302,900		7,532,257
Grande Cache Coal Corp.(a)		505,000		5,301,664
Hammond Power Solutions Inc.		248,700		2,561,064
Le Chateau Inc.–Class A		291,000		3,355,560
MI Developments, Inc.–Class A		237,000		6,422,700
MOSAID Technologies Inc.		208,500		6,215,487
Northern Dynasty Minerals Ltd.(a)		279,177		4,003,039
Onex Corp.		264,704		8,023,666
Paramount Resources Ltd.–Class A(a)		257,246		8,171,617
Reitmans (Canada) Ltd.–Class A		291,700		5,457,858
Sierra Wireless Inc.(a)		320,000		4,768,074
Total Energy Services Inc.		1,014,790		14,387,978
TransGlobe Energy Corp.(a)		315,480		5,026,549
				121,807,884
China–2.31%
Vinda International Holdings Ltd.		3,641,000		4,018,054
Xinyi Glass Holdings Co. Ltd.		10,600,000		8,695,194
				12,713,248
Germany–3.17%
CTS Eventim AG		46,000		2,842,527
MorphoSys AG(a)		161,823		4,009,402
Wirecard AG		773,129		10,595,946
				17,447,875
Greece–1.63%
Intralot S.A.		1,172,600		3,904,030
Jumbo S.A.		771,940		5,098,875
				9,002,905
Hong Kong–4.45%
First Pacific Co. Ltd.		13,492,000		12,150,576
Franshion Properties China Ltd.		11,152,000		3,357,308
Paliburg Holdings Ltd.		22,942,170		8,972,854
				24,480,738
Ireland–3.85%
DCC PLC		318,895		10,062,910
Paddy Power PLC		271,681		11,152,225
				21,215,135
Italy–1.12%
Ansaldo STS S.p.A.		145,055		2,079,177
Danieli S.p.A.–Officine Meccaniche Danieli & C.		236,000		4,076,978
				6,156,155
Japan–5.27%
EXEDY Corp.		373,900		12,133,453
Nippon Ceramic Co., Ltd.		572,000		10,168,263
PIGEON Corp.		82,400		2,799,754
THK Co., Ltd.		171,000		3,930,284
				29,031,754
Malaysia–5.60%
IGB Corp. Berhad		27,777,100		18,859,595
Parkson Holdings Berhad		6,803,330		11,969,952
				30,829,547
Netherlands–1.45%
Aalberts Industries N.V.		378,030		7,985,646
New Zealand–1.17%
Freightways Ltd.		2,607,981		6,437,746
Norway–3.52%
Prosafe S.E.		922,400		7,347,404
TGS Nopec Geophysical Co. A.S.A.		532,258		12,015,575
				19,362,979

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

9        Invesco International Small Company Fund

	Shares		Value
Philippines–5.45%
Energy Development Corp.		60,858,750	$	8,156,184
First Gen Corp.(a)		43,145,141		11,997,895
Manila Water Co.		22,517,600		9,860,447
				30,014,526
South Korea–2.33%
Lotte Confectionery Co., Ltd.		5,291		7,085,993
MegaStudy Co., Ltd.		25,204		3,944,000
S1 Corp.		36,150		1,815,299
				12,845,292
Switzerland–1.57%
Aryzta AG		185,041		8,657,167
Thailand–3.85%
BEC World PCL		5,194,300		5,486,328
CP ALL PCL		3,581,800		4,676,835
Major Cineplex Group PCL		15,024,100		6,497,449
Siam Commercial Bank PCL		1,318,100		4,553,715
				21,214,327
United Kingdom–16.41%
Amlin PLC		693,960		4,426,092
Chemring Group PLC		138,915		6,292,376
CPP Group PLC		1,240,239		5,842,265
Game Group PLC		1,976,931		2,158,532
Halma PLC		882,852		4,943,690
Homeserve PLC		1,096,501		7,581,859
IG Group Holdings PLC		901,373		7,170,404
Informa PLC		1,166,809		7,416,454
Kier Group PLC		452,426		9,682,123
Lancashire Holdings Ltd.		934,000		8,056,398
Micro Focus International PLC		717,655		4,351,101
Mitie Group PLC		2,967,423		10,840,149
Playtech Ltd.		454,000		3,002,553
Tullett Prebon PLC		585,000		3,492,985
Ultra Electronics Holdings PLC		193,400		5,116,244
				90,373,225
Total Common Stocks (Cost $353,752,811)				495,178,368
Preferred Stocks–0.16%
Canada–0.16%
FirstService Corp.–Series 1, 7.00% Pfd		36,320		893,472
Total Preferred Stocks (Cost $908,000)				893,472
Money Market Funds–9.48%
Liquid Assets Portfolio–Institutional Class(b)		26,111,481		26,111,481
Premier Portfolio–Institutional Class(b)		26,111,481		26,111,481
Total Money Market Funds (Cost $52,222,962)				52,222,962
TOTAL INVESTMENTS–99.56% (Cost $406,883,773)				548,294,802
OTHER ASSETS LESS LIABILITIES–0.44%				2,411,347
NET ASSETS–100.00%			$	550,706,149

Investment Abbreviation:

Pfd. – Preferred

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.

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

10        Invesco International Small Company Fund

Statement of Assets and Liabilities

December 31, 2010

Assets:
Investments, at value (Cost $354,660,811)	$	496,071,840
Investments in affiliated money market funds, at value and cost		52,222,962
Total investments, at value (Cost $406,883,773)		548,294,802
Foreign currencies, at value (Cost $78,460)		78,259
Receivables for:
Investments sold		734,104
Fund shares sold		2,348,064
Dividends		2,069,768
Investment for trustee deferred compensation and retirement plans		28,408
Other assets		31,099
Total assets		553,584,504
Liabilities:
Payable for:
Fund shares reacquired		640,185
Accrued fees to affiliates		409,318
Accrued other operating expenses		1,749,712
Trustee deferred compensation and retirement plans		79,140
Total liabilities		2,878,355
Net assets applicable to shares outstanding	$	550,706,149
Net assets consist of:
Shares of beneficial interest	$	469,965,014
Undistributed net investment income (loss)		(325,318	)
Undistributed net realized gain (loss)		(60,351,571	)
Unrealized appreciation		141,418,024
	$	550,706,149
Net assets:
Class A	$	382,960,312
Class B	$	25,086,248
Class C	$	49,483,603
Class Y	$	31,780,222
Institutional class	$	61,395,764
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		20,424,497
Class B		1,383,164
Class C		2,727,930
Class Y		1,691,273
Institutional class		3,288,952
Class A:
Net asset value per share	$	18.75
Maximum offering price per share
(Net asset value of $18.75 divided by 94.50%)	$	19.84
Class B:
Net asset value and offering price per share	$	18.14
Class C:
Net asset value and offering price per share	$	18.14
Class Y:
Net asset value and offering price per share	$	18.79
Institutional class:
Net asset value and offering price per share	$	18.67

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

11        Invesco International Small Company Fund

Statement of Operations

For the year ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $1,020,905)	$	12,238,298
Dividends from affiliated money market funds		39,662
Total investment income		12,277,960
Expenses:
Advisory fees		4,387,499
Administrative services fees		149,313
Custodian fees		373,498
Distribution fees:
Class A		851,412
Class B		242,854
Class C		454,728
Transfer Agent Fees — A, B, C and Y		1,060,404
Transfer agent fees — Institutional		11,060
Trustees’ and officers’ fees and benefits		28,943
Other		213,814
Total expenses		7,773,525
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(49,301	)
Net expenses		7,724,224
Net investment income		4,553,736
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities (net of foreign taxes of $856,615)		22,079,432
Foreign currencies		148,013
		22,227,445
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes on holdings of $(607,035))		81,518,977
Foreign currencies (net of foreign taxes of $56,932)		(310,835	)
		81,208,142
Net realized and unrealized gain		103,435,587
Net increase in net assets resulting from operations	$	107,989,323

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

12        Invesco International Small Company Fund

Statement of Changes in Net Assets

For the years ended December 31, 2010 and 2009

	2010			2009
Operations:
Net investment income	$	4,553,736		$	5,807,730
Net realized gain (loss)		22,227,445			(61,939,610	)
Change in net unrealized appreciation		81,208,142			222,683,275
Net increase in net assets resulting from operations		107,989,323			166,551,395
Distributions to shareholders from net investment income:
Class A		(2,976,716	)		(3,890,264	)
Class B		(30,466	)		(153,738	)
Class C		(59,060	)		(262,066	)
Class Y		(301,557	)		(252,032	)
Institutional class		(687,596	)		(496,714	)
Total distributions from net investment income		(4,055,395	)		(5,054,814	)
Share transactions–net:
Class A		(46,422,532	)		46,215,049
Class B		(6,951,829	)		(3,071,958	)
Class C		(6,960,460	)		1,614,818
Class Y		6,397,500			8,965,362
Institutional class		18,008,322			8,177,196
Net increase (decrease) in net assets resulting from share transactions		(35,928,999	)		61,900,467
Net increase in net assets		68,004,929	��		223,397,048
Net assets:
Beginning of year		482,701,220			259,304,172
End of year (includes undistributed net investment income (loss) of $(325,318) and $(115,057), respectively)	$	550,706,149		$	482,701,220

Notes to Financial Statements

December 31, 2010

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 C shares are sold with a CDSC. Class Y and Institutional Class shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

  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

13        Invesco International Small Company Fund

	security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
	Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
	Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. 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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

14        Invesco International Small Company Fund

D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
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.

15        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	.910%
Next $500 million		0	.885%
Next $1.5 billion		0	.860%
Next $2.5 billion		0	.835%
Next $2.5 billion		0	.810%
Next $2.5 billion		0	.785%
Over $10 billion		0	.760%

  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, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C, Class 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. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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 year ended December 31, 2010, the Adviser waived advisory fees of $47,011.

  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 year ended December 31, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $622.

  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 year ended December 31, 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 year ended December 31, 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 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 year ended December 31, 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 year ended December 31, 2010, IDI advised the Fund that IDI retained $21,173 in front-end sales commissions from the sale of Class A shares and $2,110, $32,222 and $7,294 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.

16        Invesco International Small Company Fund

NOTE 3—Additional Valuation Information

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

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

  The following is a summary of the tiered valuation input levels, as of December 31, 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	$	6,288,796	$	—	$	—	$	6,288,796
Brazil		19,313,423		—		—		19,313,423
Canada		122,701,356		—		—		122,701,356
China		—		12,713,248		—		12,713,248
Germany		17,447,875		—		—		17,447,875
Greece		9,002,905		—		—		9,002,905
Hong Kong		24,480,738		—		—		24,480,738
Ireland		21,215,135		—		—		21,215,135
Italy		6,156,155		—		—		6,156,155
Japan		29,031,754		—		—		29,031,754
Malaysia		30,829,547		—		—		30,829,547
Netherlands		—		7,985,646		—		7,985,646
New Zealand		6,437,746		—		—		6,437,746
Norway		19,362,979		—		—		19,362,979
Philippines		30,014,526		—		—		30,014,526
South Korea		11,029,993		1,815,299		—		12,845,292
Switzerland		8,657,167		—		—		8,657,167
Thailand		21,214,327		—		—		21,214,327
United Kingdom		90,373,225		—		—		90,373,225
United States		52,222,962		—		—		52,222,962
Total Investments	$	525,780,609	$	22,514,193	$	—	$	548,294,802

*  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 year ended December 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,668.

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

17        Invesco International Small Company Fund

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 year ended December 31, 2010, the Fund paid legal fees of $3,635 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—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended December 31, 2010 and 2009:

	2010		2009
Ordinary income	$	4,055,395	$	5,054,814

Tax Components of Net Assets at Period-End:

	2010
Undistributed ordinary income	$	2,004,814
Net unrealized appreciation — investments		138,142,250
Net unrealized appreciation — other investments		6,998
Temporary book/tax differences		(76,578	)
Capital loss carryforward		(59,336,349	)
Shares of beneficial interest		469,965,014
Total net assets	$	550,706,149

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and passive investment company (PFIC) investments.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

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

  The Fund utilized $22,578,645 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2017	$	59,336,349

*  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 year ended December 31, 2010 was $88,213,596 and $133,396,928, 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	$	159,360,725
Aggregate unrealized (depreciation) of investment securities		(21,218,475	)
Net unrealized appreciation of investment securities	$	138,142,250
Cost of investments for tax purposes is $410,152,552.

18        Invesco International Small Company Fund

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and foreign capital gains taxes, on December 31, 2010, undistributed net investment income (loss) was decreased by $708,602, undistributed net realized gain (loss) was increased by $708,602. This reclassification had no effect on the net assets of the Fund.

NOTE 10—Share Information

	Summary of Share Activity
	Years ended December 31,
	2010(a)						2009
	Shares			Amount			Shares			Amount
Sold:
Class A		5,261,862		$	83,146,168			10,425,876		$	132,847,068
Class B		96,225			1,474,659			299,020			3,703,193
Class C		358,202			5,493,955			846,821			10,619,335
Class Y		1,149,865			18,511,814			1,103,910			13,592,509
Institutional class		1,730,413			28,915,669			927,050			12,222,989
Issued as reinvestment of dividends:
Class A		154,712			2,808,033			241,061			3,536,095
Class B		1,678			29,487			8,551			130,118
Class C		3,232			56,793			15,640			231,365
Class Y		15,712			285,801			14,056			206,629
Institutional class		38,052			687,596			34,021			496,707
Automatic conversion of class b shares to class a shares:
Class A		141,047			2,193,832			178,580			2,065,078
Class B		(146,156	)		(2,193,832	)		(184,503	)		(2,065,078	)
Reacquired:(b)
Class A		(8,691,872	)		(134,570,565	)		(7,882,798	)		(92,233,192	)
Class B		(418,003	)		(6,262,143	)		(442,625	)		(4,840,191	)
Class C		(834,612	)		(12,511,208	)		(848,098	)		(9,235,882	)
Class Y		(814,700	)		(12,400,115	)		(499,369	)		(4,833,776	)
Institutional class		(766,697	)		(11,594,943	)		(400,456	)		(4,542,500	)
Net increase (decrease) in share activity		(2,721,040	)	$	(35,928,999	)		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 15% 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. In addition, 4% of the outstanding shares of the fund are owned by affiliated mutual funds. Affiliated mutual funds are mutual funds that are advised by Invesco.

(b)

Net of redemption fees of $22,084 and $34,884 allocated among the classes based on relative net assets of each class for the years ended December 31, 2010 and 2009, respectively.

19        Invesco International Small Company 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				on securities						Dividends			Distributions													net assets			assets without			investment
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income (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(a)		unrealized)			operations			income			gains			Distributions			of period(b)		return(c)			(000s omitted)		absorbed			absorbed			net assets			turnover(d)
Class A
Year ended 12/31/10	$	15.05	$	0.16	$	3.69		$	3.85		$	(0.15	)	$	—		$	(0.15	)	$	18.75		25.60	%	$	382,960		1.57	%(e)		1.58	%(e)		1.01	%(e)		20	%
Year ended 12/31/09		9.19		0.21		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		(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		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		7.54			7.77			(0.23	)		(3.93	)		(4.16	)		24.13		38.18			635,318		1.54			1.58			0.93			69
Class B
Year ended 12/31/10		14.57		0.04		3.55			3.59			(0.02	)		—			(0.02	)		18.14		24.65			25,086		2.32	(e)		2.33	(e)		0.26	(e)		20
Year ended 12/31/09		8.91		0.12		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		(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		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		7.32			7.36			(0.01	)		(3.93	)		(3.94	)		23.37		37.20			86,236		2.29			2.33			0.18			69
Class C
Year ended 12/31/10		14.57		0.04		3.55			3.59			(0.02	)		—			(0.02	)		18.14		24.65			49,484		2.32	(e)		2.33	(e)		0.26	(e)		20
Year ended 12/31/09		8.91		0.12		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		(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		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		7.32			7.36			(0.01	)		(3.93	)		(3.94	)		23.36		37.21			124,161		2.29			2.33			0.18			69
Class Y
Year ended 12/31/10		15.08		0.20		3.70			3.90			(0.19	)		—			(0.19	)		18.79		25.89			31,780		1.32	(e)		1.33	(e)		1.26	(e)		20
Year ended 12/31/09		9.20		0.26		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		(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
Year ended 12/31/10		14.98		0.24		3.68			3.92			(0.23	)		—			(0.23	)		18.67		26.20			61,396		1.10	(e)		1.11	(e)		1.48	(e)		20
Year ended 12/31/09		9.13		0.28		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		(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		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		7.55			7.88			(0.33	)		(3.93	)		(4.26	)		24.14		38.73			19,384		1.14			1.18			1.33			69

(a)	Calculated using average shares outstanding.
(b)	Includes redemption fees added to shares of beneficial interest which were less than $0.005 per share.
(c)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(e)	Ratios are annualized and based on average daily net assets (000’s omitted) of $340,565, $24,285, $45,473, $23,988 and $40,964 for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively.
(f)	Commencement date of October 3, 2008.
(g)	Annualized.

20        Invesco International Small Company Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Funds Group (Invesco Funds Group)

and Shareholders of Invesco International Small Company Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco International Small Company Fund (formerly known as AIM International Small Company Fund; one of the funds constituting AIM Funds Group (Invesco Funds Group), hereafter referred to as the “Fund”) at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

February 22, 2011

Houston, Texas

21        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 July 1, 2010 through December 31, 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	(07/01/10)		(12/31/10)1		Period2		(12/31/10)		Period2		Ratio
A	$	1,000.00	$	1,352.10	$	9.31	$	1,017.29	$	7.98		1.57	%
B		1,000.00		1,346.40		13.72		1,013.51		11.77		2.32
C		1,000.00		1,346.40		13.72		1,013.51		11.77		2.32
Y		1,000.00		1,353.10		7.83		1,018.55		6.72		1.32
Institutional		1,000.00		1,355.20		6.47		1,019.71		5.55		1.09

1	The actual ending account value is based on the actual total return of the Fund for the period July 1, 2010 through December 31, 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 184/365 to reflect the most recent fiscal half year.

22        Invesco International Small Company Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended December 31, 2010:

Federal and State Income Tax
Qualified Dividend Income*	100%
Corporate Dividends Received Deduction*	0%
Foreign Taxes	0.0317 per Share
Foreign Source Income	0.3859 per Share

*  The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

23        Invesco International Small Company Fund

Trustees and Officers

The address of each trustee and officer is AIM Funds Groups (Invesco Funds Group) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1987	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie		208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208		Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208		Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208		None
Lewis F. Pennock — 1942 Trustee	1992	Partner, law firm of Pennock & Cooper	208		None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208		None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226		Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208		None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1992	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Counsel to the Fund
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103

Investment Adviser
Invesco Advisers, Inc.
1555 Peachtree Street, N.E.
Atlanta, GA 30309

Counsel to the Independent Trustees
Kramer, Levin, Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036-2714

Distributor
Invesco Distributors, Inc.
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Transfer Agent
Invesco Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

Auditors
PricewaterhouseCoopers LLP
1201 Louisiana Street, Suite 2900
Houston, TX 77002-5678

Custodian
State Street Bank and Trust Company
225 Franklin
Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

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.

     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-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders December 31, 2010

Invesco Mid Cap Basic Value Fund

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
11	Financial Statements
13	Notes to Financial Statements
21	Financial Highlights
22	Auditor’s Report
23	Fund Expenses
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website — invesco.com/us — offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus — investment management — Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best — manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change — investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial adviser to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial adviser will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

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

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor

Senior Managing Director, Invesco Ltd.

2Invesco Mid Cap Basic Value Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds. As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisers with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3Invesco Mid Cap Basic Value Fund

Management’s Discussion of Fund Performance

Performance summary

For the 12 months ended December 31, 2010, Invesco Mid Cap Basic Value Fund underperformed its style-specific index, the Russell Midcap Value Index. Stock selection in the health care and industrials sectors and underweight exposure to the utilities and materials sectors contributed to the Fund’s performance versus the index. Alternatively, stock selection in the financials and consumer discretionary sectors hampered the Fund’s relative performance.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 12/31/09 to 12/31/10, 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	19.25	%
Class B Shares	18.34
Class C Shares	18.34
Class R Shares	18.98
Class Y Shares	19.59
Institutional Class Shares	19.63
S&P 500 Index▼ (Broad Market Index)	15.08
Russell Midcap Value Index▼ (Style-Specific Index)	24.75
Lipper Mid-Cap Value Funds Index▼ (Peer Group Index)	21.64

^▼ Lipper Inc.

How we invest

We call our investment philosophy “value with a catalyst.” We believe that undervalued companies which are experiencing positive changes (i.e., “catalysts”) have the potential to generate long-term stock price growth for shareholders. We generally seek to identify companies that are out of favor with investors, underearning relative to their potential and attractively valued. For these companies, we attempt to identify catalysts that may improve the financial results and/or correct the undervaluation. Examples of catalysts typically include improved operational efficiency, changing industry dynamics and/or a change in management.

     We initially identify potential investments through a series of quantitative screens including, but not limited to, return on capital and enterprise value to sales metrics. We then conduct fundamental research on the most attractive opportunities. The research process includes a thorough review of a company’s financial statements, an evaluation of its competitive position and stability and meetings with its executives. During the research process, we also value the company under various scenarios to determine if the investment is an attractive opportunity relative to its risks. Also, this is where we typically identify the positive catalyst, a prerequisite for

Portfolio Composition

By sector

Financials	20.8	%
Industrials	14.0
Consumer Discretionary	12.1
Health Care	10.3
Information Technology	8.4
Utilities	8.1
Energy	7.7
Consumer Staples	7.6
Materials	7.6
Money Market Funds Plus Other Assets
Less Liabilities	3.4

Total Net Assets	$193.3 million
Total Number of Holdings*		47

Top 10 Equity Holdings*

1.	Brookdale Senior Living, Inc.	3.7	%
2.	Snap-on, Inc.	3.7
3.	Avery Dennison Corp.	3.5
4.	El Paso Corp.	3.2
5.	Zebra Technologies Corp.–Class A	3.1
6.	Newell Rubbermaid, Inc.	3.1
7.	Edison International	3.0
8.	Willis Group Holdings PLC	3.0
9.	Goodrich Corp.	3.0
10.	Harley-Davidson, Inc.	2.7

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.
*Excluding money market fund holdings.

potential investment. Finally, we generally set a price target for a stock based on normalized earnings and historical valuation multiples.

     In short, our goal is to exploit negative sentiment toward a company’s stock by analyzing the company’s operations in the context of a cyclical environment and identifying one or more catalysts that may improve the company’s financial performance. Improved financial performance, in turn, has the potential to drive the company’s stock price higher.

     We typically sell an investment when it reaches our estimate of fair value or when we identify a more attractive investment opportunity.

Market conditions and your Fund

Equity markets were choppy during the year as investors weighed the competing issues of solid corporate profits and soft macroeconomic data. Corporate earnings were largely positive but were often overshadowed by concerns about high unemployment, weak consumer spending, soft housing data and the possibility of additional U.S. Federal Reserve accommodation. After rising through April, major equity indexes sold off precipitously in May as the sovereign debt crisis unfolded in the eurozone while U.S. economic indicators remained weak, prompting fears of a “double-dip” recession. Uncertainty created by the debt crisis — combined with subdued employment, consumer spending and housing data — added to concerns that the recovery was slowing. Just as abruptly, however, the markets reversed course starting in September and rallied through the end of the year on modestly better economic news.

     Major equity indexes produced positive returns for the year, and all 10 sectors of the S&P 500 Index posted gains. More economically sensitive sectors such as consumer discretionary and industrials had the highest returns, while less economically sensitive sectors such as health care had some of the lowest returns.

     All sectors of the Fund posted positive performance for the year, as equity markets climbed throughout 2010. Nonetheless, the Fund underperformed the Russell Midcap Value Index.

     Stock selection in the health care sector was one of the largest contributors to the Fund’s relative performance. Brookdale Senior Living, an assisted living provider, was a large contributor to the Fund’s absolute performance for the year.

4Invesco Mid Cap Basic Value Fund

     Materials stocks also aided relative performance. The Fund was slightly underweight in this sector, which helped drive returns. Cyclical stocks in the sector performed well due to continuing signs that the U.S. economy is strengthening.

     In the utilities sector, stock selection helped performance. The Fund was underweight in this sector versus the benchmark, and we avoided many of the deregulated utility companies which performed poorly.

     The largest detractor from the Fund’s relative performance was the financials sector. In general, financial stocks performed strongly over the reporting period. However, the Fund was underweight in the financials sector relative to its benchmark, and our financial stocks did not appreciate as much as those of the index. In general, we focused on what we believed were lower risk financial companies with stronger balance sheets and less credit risk given the systemic risk in most financial stocks.

     Weak stock selection and underweight exposure to the energy sector also detracted from the Fund’s performance versus the benchmark. Weatherford International, an oil field equipment manufacturer, was a poor performing holding during the reporting period.

     Stock selection in the consumer discretionary sector and overweight exposure to the information technology sector also detracted from relative performance.

     During the fourth quarter of 2010, we utilized an options strategy called an options collar, which is created by purchasing an out of the money put option while simultaneously writing an out of the money call option. The options collar is employed as a protective strategy that is implemented after a long position in a stock has experienced gains and to protect against any resulting downward movement in price. The use of the options collar had a slight negative effect on absolute performance of the Fund for the reporting period.

     Equity markets experienced a strong recovery during the period covered by this report. We believe that the market volatility that occurred during 2010 may continue to create opportunities to invest in companies with attractive valuations and strong fundamentals. We believe that ultimately those valuations and fundamentals may be reflected in those companies’ stock prices.

     As always, we would like to caution investors against making investment decisions based on short-term performance. We recommend that you consult a financial adviser to discuss your individual financial program.

     Thank you for your investment in Invesco Mid Cap Basic Value Fund and for sharing our long-term investment horizon.

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Thomas Copper
Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Mid Cap Basic Value Fund. Mr. Copper joined Invesco in 2010. He earned a B.A. in economics and political science from Tulane University and an M.B.A. from Baylor University.

Sergio Marcheli
Portfolio manager, is manager of Invesco Mid Cap Basic Value Fund. Mr. Marcheli joined Invesco in 2010. He earned a B.B.A. from the University of Houston and an M.B.A. from the University of St. Thomas.

John Mazanec
Portfolio manager, is manager of Invesco Mid Cap Basic Value Fund. Mr. Mazanec joined Invesco in 2010. He earned a B.S. from DePauw University and an M.B.A. from Harvard University.

5Invesco Mid Cap Basic Value Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Classes since Inception

Fund and index data from 12/31/01

1 Lipper Inc.

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not. Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000, and so on.

6Invesco Mid Cap Basic Value Fund

Average Annual Total Returns

As of 12/31/10, including maximum applicable sales charges

Class A Shares
Inception (12/31/01)			6.24	%
	5	Years	3.54
	1	Year	12.71
Class B Shares
Inception (12/31/01)			6.25	%
	5	Years	3.68
	1	Year	13.34
Class C Shares
Inception (12/31/01)			6.16	%
	5	Years	3.97
	1	Year	17.34
Class R Shares
Inception			6.70	%
	5	Years	4.49
	1	Year	18.98
Class Y Shares
Inception			6.97	%
	5	Years	4.83
	1	Year	19.59
Institutional Class Shares
Inception			7.37	%
	5	Years	5.35
	1	Year	19.63

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. 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 shares 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.

7Invesco Mid Cap Basic Value Fund

Invesco Mid Cap Basic Value Fund’s investment objective is long-term growth of capital.

n	Unless otherwise stated, information presented in this report is as of December 31, 2010, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class R shares are available only to certain retirement plans. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.
n	Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Please see the prospectus for more information

Principal risks of investing in the Fund

n

An investment by an underlying fund in exchange-traded funds (ETFs) generally presents the same primary risks as an investment in a mutual fund. In addition, ETFs may be subject to the following: (1) a discount of the ETF’s shares to its net asset value; (2) failure to develop an active trading market for the ETF’s shares; (3) the listing exchange halting trading of the ETF’s shares; (4) failure of the ETF’s shares to track the referenced index; and (5) holding troubled securities in the referenced index. ETFs may involve duplication of management fees and certain other expenses, as the Fund indirectly bears its proportionate share of any expenses paid by the ETFs in which it invests. Further, certain of the ETFs in which the Fund may invest are leveraged. The more a Fund invests in such leveraged ETFs, the more this leverage will magnify any losses on those investments.

n

The Fund’s foreign investments be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to

	less regulation resulting in less publicly available information about the companies.
n	The Fund may invest a large percentage of its assets in a limited number of securities, which could negatively affect the value of the Fund.
n	The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.
n	The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.
n	Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments and may have little or no operating history or track record of success, and limited product lines, markets, management and financial resources. The securities of small and mid-sized companies may be more volatile due to less market interest and less publicly available information about the issuer. They also may be illiquid or restricted as to resale, or may trade less frequently and in smaller volumes, all of which may cause difficulty when establishing or closing a position at a desirable price.
n	Value stocks may react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. Value stocks tend to be inexpensive relative to their earnings or assets compared to other types of stocks and may never realize their full value. Value stocks tend to be currently out-of-favor with many investors.

About indexes used in this report

n	The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
n	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.
n	The Lipper Mid-Cap Value Funds Index is an unmanaged index considered representative of mid-cap value funds tracked by Lipper.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n	The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
n	The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.
n	Industry 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.

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 Nasdaq Symbols

Class A Shares	MDCAX
Class B Shares	MDCBX
Class C Shares	MDCVX
Class R Shares	MDCRX
Class Y Shares	MDCYX
Institutional Class Shares	MDICX

8Invesco Mid Cap Basic Value Fund

Schedule of Investments

December 31, 2010

	Shares		Value
Common Stocks & Other Equity Interests–96.57%(a)
Aerospace & Defense–3.00%
Goodrich Corp.		65,843	$	5,798,793
Asset Management & Custody Banks–2.00%
Northern Trust Corp.		69,703		3,862,243
Auto Parts & Equipment–1.95%
Lear Corp.(b)		38,297		3,780,297
Building Products–1.97%
Lennox International, Inc.		80,738		3,818,100
Computer Hardware–2.03%
Diebold, Inc.		122,425		3,923,721
Data Processing & Outsourced Services–2.21%
Fidelity National Information Services, Inc.		155,990		4,272,566
Diversified Banks–1.81%
Comerica, Inc.		83,072		3,508,961
Diversified Chemicals–1.02%
PPG Industries, Inc.		23,355		1,963,455
Electric Utilities–5.10%
Edison International		151,676		5,854,694
Great Plains Energy, Inc.		206,492		4,003,880
				9,858,574
Electronic Manufacturing Services–1.04%
Flextronics International Ltd. (Singapore)(b)		257,330		2,020,041
Food Distributors–1.94%
Sysco Corp.		127,546		3,749,852
Health Care Distributors–2.47%
Henry Schein, Inc.(b)(c)		77,826		4,777,738
Health Care Equipment–1.49%
Beckman Coulter, Inc.(d)		26,605		2,001,494
Teleflex, Inc.		16,346		879,578
				2,881,072
Health Care Facilities–6.31%
Brookdale Senior Living, Inc.(b)		336,880		7,212,601
Healthsouth Corp.(b)		241,279		4,996,888
				12,209,489
Heavy Electrical Equipment–1.33%
Babcock & Wilcox Co.(b)		100,202		2,564,169
Home Furnishings–1.97%
Mohawk Industries, Inc.(b)		67,006		3,803,261
Housewares & Specialties–3.05%
Newell Rubbermaid, Inc.		324,480		5,899,046
Industrial Machinery–3.66%
Snap-on, Inc.		125,249		7,086,589
Insurance Brokers–5.58%
Marsh & McLennan Cos., Inc.		182,480		4,989,003
Willis Group Holdings PLC (Ireland)(c)		167,457		5,799,036
				10,788,039
Investment Banking & Brokerage–2.29%
Charles Schwab Corp. (The)		258,246		4,418,589
Motorcycle Manufacturers–2.73%
Harley-Davidson, Inc.		152,115		5,273,827
Multi-Utilities–2.97%
CenterPoint Energy, Inc.		120,250		1,890,330
Wisconsin Energy Corp.		65,415		3,850,327
				5,740,657
Office Electronics–3.14%
Zebra Technologies Corp., Class A(b)		159,764		6,069,434
Office Services & Supplies–3.51%
Avery Dennison Corp.		160,166		6,781,429
Oil & Gas Exploration & Production–1.99%
Pioneer Natural Resources Co.		44,228		3,839,875
Oil & Gas Storage & Transportation–5.68%
El Paso Corp.		444,614		6,117,888
Williams Cos., Inc. (The)		197,183		4,874,364
				10,992,252
Packaged Foods & Meats–2.27%
ConAgra Foods, Inc.		194,014		4,380,836
Paper Packaging–2.05%
Sonoco Products Co.		117,599		3,959,558
Personal Products–2.13%
Avon Products, Inc.		141,982		4,125,997
Property & Casualty Insurance–2.10%
ACE Ltd. (Switzerland)		65,149		4,055,525
Regional Banks–5.45%
BB&T Corp.		128,517		3,378,712
First Horizon National Corp.(b)		170,556		2,009,147

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

9        Invesco Mid Cap Basic Value Fund

	Shares		Value
Regional Banks–(continued)
Wintrust Financial Corp.		95,918	$	3,168,172
Zions Bancorp.(c)		81,449		1,973,509
				10,529,540
Restaurants–2.41%
Darden Restaurants, Inc.		100,305		4,658,164
Retail REIT’s–1.58%
Weingarten Realty Investors		128,800		3,060,288
Soft Drinks–1.23%
Coca-Cola Enterprises, Inc.		95,098		2,380,303
Specialty Chemicals–4.55%
Valspar Corp. (The)		111,958		3,860,312
W.R. Grace & Co.(b)		140,428		4,933,236
				8,793,548
Trucking–0.56%
Swift Transportation Co.(b)		87,070		1,089,246
Total Common Stocks & Other Equity Interests (Cost $156,058,537)				186,715,074

	Number of		Exercise		Expiration
	Contracts		Price		Date		Value
Put Options Purchased–0.01%
Health Care Equipment–0.01%
Beckman Coulter, Inc. Cost $(28,684)(b)		130	$	65		Feb-11	$	13,650

	Shares		Value
Money Market Funds–3.45%
Liquid Assets Portfolio–Institutional Class(e)		3,330,050	$	3,330,050
Premier Portfolio–Institutional Class(e)		3,330,050		3,330,050
Total Money Market Funds (Cost $6,660,100)				6,660,100
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–100.03% (Cost $162,747,321)				193,388,824
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–0.22%
Liquid Assets Portfolio–Institutional Class (Cost $431,475)(e)(f)		431,475		431,475
TOTAL INVESTMENTS–100.25% (Cost $163,178,796)				193,820,299
OTHER ASSETS LESS LIABILITIES–(0.25)%				(479,218	)
NET ASSETS–100.00%			$	193,341,081

Investment Abbreviations:

REIT – Real Estate Investments Trust

Notes to Schedule of Investments:

(a)	Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)	Non-income producing security.
(c)	All or a portion of this security was out on loan at December 31, 2010.
(d)	A portion of this security is subject to call options written. See Note 1L and Note 4.
(e)	The money market fund and the Fund are affiliated by having the same investment adviser.
(f)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

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

10        Invesco Mid Cap Basic Value Fund

Statement of Assets and Liabilities

December 31, 2010

Assets:
Investments, at value (Cost $156,087,221)*	$	186,728,724
Investments in affiliated money market funds, at value and cost		7,091,575
Total investments, at value (Cost $163,178,796)		193,820,299
Receivables for:
Fund shares sold		196,442
Dividends		172,631
Investment for trustee deferred compensation and retirement plans		18,925
Other assets		46,671
Total assets		194,254,968
Liabilities:
Payable for:
Fund shares reacquired		166,373
Options written, at value (premiums received $40,587)		55,250
Collateral upon return of securities loaned		431,475
Accrued fees to affiliates		172,221
Accrued other operating expenses		49,079
Trustee deferred compensation and retirement plans		39,489
Total liabilities		913,887
Net assets applicable to shares outstanding	$	193,341,081
Net assets consist of:
Shares of beneficial interest	$	171,639,844
Unrealized appreciation		30,626,840
Undistributed net investment income (loss)		(37,782	)
Undistributed net realized gain (loss)		(8,887,821	)
	$	193,341,081
Net Assets:
Class A	$	130,382,793
Class B	$	17,606,515
Class C	$	27,615,581
Class R	$	7,086,899
Class Y	$	10,484,566
Institutional Class	$	164,727
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		10,570,729
Class B		1,542,259
Class C		2,419,168
Class R		582,917
Class Y		846,191
Institutional Class		12,868
Class A:
Net asset value per share	$	12.33
Maximum offering price per share (Net asset value of $12.33 divided by 94.50%)	$	13.05
Class B:
Net asset value and offering price per share	$	11.42
Class C:
Net asset value and offering price per share	$	11.42
Class R:
Net asset value and offering price per share	$	12.16
Class Y:
Net asset value and offering price per share	$	12.39
Institutional Class:
Net asset value and offering price per share	$	12.80

*  At December 31, 2010, securities with an aggregate value of $417,199 were on loan to brokers.

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

11        Invesco Mid Cap Basic Value Fund

Statement of Operations

For the year ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $27,566)	$	2,898,454
Dividends from affiliated money market funds (includes securities lending income of $31,322)		38,884
Total investment income		2,937,338
Expenses:
Advisory fees		1,626,204
Administrative services fees		100,205
Custodian fees		16,355
Distribution fees:
Class A		338,194
Class B		188,883
Class C		251,665
Class R		23,805
Transfer agent fees — A, B, C, R and Y		547,944
Transfer agent fees — Institutional		1,271
Trustees’ and officers’ fees and benefits		21,876
Other		156,179
Total expenses		3,272,581
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(12,603	)
Net expenses		3,259,978
Net investment income (loss)		(322,640	)
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		7,995,791
Foreign currencies		42,515
		8,038,306
Change in net unrealized appreciation (depreciation) of:
Investment securities		20,812,414
Option contracts written		(14,663	)
		20,797,751
Net realized and unrealized gain		28,836,057
Net increase in net assets resulting from operations	$	28,513,417

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

12        Invesco Mid Cap Basic Value Fund

Statement of Changes in Net Assets

For the years ended December 31, 2010 and 2009

	2010			2009
Operations:
Net investment income (loss)	$	(322,640	)	$	(805,750	)
Net realized gain		8,038,306			4,116,900
Change in net unrealized appreciation		20,797,751			77,751,376
Net increase in net assets resulting from operations		28,513,417			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		(4,524,037	)		28,492,718
Class B		(4,921,310	)		(1,284,398	)
Class C		5,655,758			3,730,425
Class R		3,568,533			524,257
Class Y		(142,277	)		3,222,585
Institutional Class		(32,469,374	)		(15,769,500	)
Net increase (decrease) in net assets resulting from share transactions		(32,832,707	)		18,916,087
Net increase (decrease) in net assets		(4,319,290	)		99,650,323
Net assets:
Beginning of year		197,660,371			98,010,048
End of year (includes undistributed net investment income (loss) of $(37,782) and $(33,824), respectively)	$	193,341,081		$	197,660,371

Notes to Financial Statements

December 31, 2010

NOTE 1—Significant Accounting Policies

Invesco 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 C shares are sold with a CDSC. Class R, Class Y and Institutional Class shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

  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.

13        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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.

14        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 (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	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.
L.	Call Options Written and Purchased — The Fund may write and buy call options. A call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written. When the Fund writes a call option, an amount equal to the

15        Invesco Mid Cap Basic Value Fund

	premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on these contracts are included in the Statement of Operation. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
	When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
M.	Put Options Purchased — The Fund may purchase put options including options on securities indexes and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on these contracts are included in the Statement of Operations. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
N.	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. This practice does not apply to securities pledged as collateral for securities lending transactions.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund 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, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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 year ended December 31, 2010, the Adviser waived advisory fees of $10,017.

  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 year ended December 31, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $587.

16        Invesco Mid Cap Basic Value Fund

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended December 31, 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 year ended December 31, 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 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 year ended December 31, 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 year ended December 31, 2010, IDI advised the Fund that IDI retained $38,933 in front-end sales commissions from the sale of Class A shares and $363, $25,140 and $7,144 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

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 December 31, 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 year ended December 31, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	193,806,649	$	—	$	—	$	193,806,649
Options*		13,650		—		—		13,650
Total Investments	$	193,820,299	$	—	$	—	$	193,820,299

*  Unrealized appreciation (depreciation).

17        Invesco Mid Cap Basic Value Fund

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 December 31, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Equity risk	$	0	$	(55,250	)

Call Option Contracts
	Number of		Premiums
	Contracts		Received
Beginning of period		0	$	0
Written		130		40,587
End of period		130	$	40,587

Open Options Written

Unrealized

Contract

Strike

Number of

Premiums

Appreciation

Calls

Month

Price

Contracts

Received

Value

(Depreciation)

Beckman Coulter, Inc.

Feb-11

$

75

130

$

40,587

$

55,250

$

14,663

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 year ended December 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,999.

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 year ended December 31, 2010, the Fund paid legal fees of $3,003 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.

18        Invesco Mid Cap Basic Value Fund

NOTE 8—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended December 31, 2010 and 2009:

	2010		2009
Ordinary income	$	—	$	328,290
Long-term capital gain		—		—
Total distributions	$	—	$	328,290

Tax Components of Net Assets at Period-End:

	2010
Net unrealized appreciation — investments	$	30,504,941
Net unrealized appreciation (depreciation) — other investments		(14,662	)
Temporary book/tax differences		(37,782	)
Capital loss carryforward		(8,751,260	)
Shares of beneficial interest		171,639,844
Total net assets	$	193,341,081

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

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

  The Fund utilized $7,014,186 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	3,221,704
December 31, 2017		5,529,556
Total capital loss carryforward	$	8,751,260

*  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 year ended December 31, 2010 was $327,776,803 and $364,799,742, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	31,093,368
Aggregate unrealized (depreciation) of investment securities		(588,427	)
Net unrealized appreciation of investment securities	$	30,504,941
Cost of investments for tax purposes is $163,315,358.

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on December 31, 2010, accumulated undistributed net investment income (loss) was increased by $318,682, accumulated net realized gain (loss) was decreased by $42,515 and shares of beneficial interest decreased by $276,167. This reclassification had no effect on the net assets of the Fund.

19        Invesco Mid Cap Basic Value Fund

NOTE 11—Share Information

	Summary of Share Activity
	Years ended December 31,
	2010(a)						2009
	Shares			Amount			Shares			Amount
Sold:
Class A		6,373,858		$	72,794,928			6,342,670		$	54,328,103
Class B		432,187			4,520,514			505,591			4,017,786
Class C		1,567,659			16,442,188			1,048,554			8,023,927
Class R		532,712			5,829,281			129,487			1,029,333
Class Y		731,274			8,314,782			383,742			3,564,850
Institutional Class		680,926			7,715,607			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		345,627			3,849,450			245,016			1,764,050
Class B		(371,924	)		(3,849,450	)		(261,878	)		(1,764,050	)
Reacquired:
Class A		(7,435,223	)		(81,168,415	)		(3,467,720	)		(27,728,388	)
Class B		(550,612	)		(5,592,374	)		(506,091	)		(3,538,134	)
Class C		(1,067,910	)		(10,786,430	)		(595,157	)		(4,293,502	)
Class R		(203,349	)		(2,260,748	)		(60,548	)		(505,076	)
Class Y		(755,411	)		(8,457,059	)		(46,821	)		(356,706	)
Institutional Class		(3,582,735	)		(40,184,981	)		(2,696,139	)		(23,174,940	)
Net increase (decrease) in share activity		(3,302,921	)	$	(32,832,707	)		1,850,078		$	18,916,087

^(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.

NOTE 12—Significant Event

The Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would transfer all of its assets and liabilities to Invesco Van Kampen American Value Fund (the “Acquiring Fund”) in exchange for shares of the Acquiring Fund. The Agreement requires approval of the Fund’s shareholders and will be submitted to the shareholders for their consideration at a meeting to be held in or around April 2011.

20        Invesco Mid Cap Basic Value Fund

NOTE 13—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		return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Class A
Year ended 12/31/10	$	10.34	$	(0.01	)(c)	$	2.00		$	1.99		$	—		$	—		$	—		$	12.33		19.25	%	$	130,383		1.40	%(d)		1.41	%(d)		(0.06	%)(d)		156	%
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
Class B
Year ended 12/31/10		9.65		(0.08	)(c)		1.85			1.77			—			—			—			11.42		18.34			17,607		2.15	(d)		2.16	(d)		(0.81	)(d)		156
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
Class C
Year ended 12/31/10		9.65		(0.08	)(c)		1.85			1.77			—			—			—			11.42		18.34			27,616		2.15	(d)		2.16	(d)		(0.81	)(d)		156
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
Class R
Year ended 12/31/10		10.22		(0.03	)(c)		1.97			1.94			—			—			—			12.16		18.98			7,087		1.65	(d)		1.66	(d)		(0.31	)(d)		156
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
Class Y
Year ended 12/31/10		10.36		0.02	(c)		2.01			2.03			—			—			—			12.39		19.59			10,485		1.15	(d)		1.16	(d)		0.19	(d)		156
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
Year ended 12/31/10		10.70		0.05	(c)		2.05			2.10			—			—			—			12.80		19.63			165		0.88	(d)		0.89	(d)		0.46	(d)		156
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

(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 $135,278, $18,888, $25,166, $4,761, $12,660 and $21,529 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.

21        Invesco Mid Cap Basic Value Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Funds Group (Invesco Funds Group)

and Shareholders of Invesco Mid Cap Basic Value Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Mid Cap Basic Value Fund (formerly known as AIM Mid Cap Basic Value Fund; one of the funds constituting AIM Funds Group (Invesco Funds Group), hereafter referred to as the “Fund”) at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

February 22, 2011

Houston, Texas

22        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 July 1, 2010 through December 31, 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	(07/01/10)		(12/31/10)1		Period2		(12/31/10)		Period2		Ratio
A	$	1,000.00	$	1,225.70	$	8.02	$	1,018.00	$	7.27		1.43	%
B		1,000.00		1,221.40		12.21		1,014.22		11.07		2.18
C		1,000.00		1,221.40		12.21		1,014.22		11.07		2.18
R		1,000.00		1,224.60		9.42		1,016.74		8.54		1.68
Y		1,000.00		1,226.70		6.62		1,019.26		6.01		1.18
Institutional		1,000.00		1,226.00		5.11		1,020.62		4.63		0.91

1	The actual ending account value is based on the actual total return of the Fund for the period July 1, 2010 through December 31, 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 184/365 to reflect the most recent fiscal half year.

23        Invesco Mid Cap Basic Value Fund

Trustees and Officers

The address of each trustee and officer is AIM Funds Groups (Invesco Funds Group) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1987	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie		208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208		Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208		Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208		None
Lewis F. Pennock — 1942 Trustee	1992	Partner, law firm of Pennock & Cooper	208		None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208		None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226		Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208		None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1992	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Counsel to the Fund
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103

Investment Adviser
Invesco Advisers, Inc.
1555 Peachtree Street, N.E.
Atlanta, GA 30309

Counsel to the Independent Trustees
Kramer, Levin, Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036-2714

Distributor
Invesco Distributors, Inc.
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Transfer Agent
Invesco Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

Auditors
PricewaterhouseCoopers LLP
1201 Louisiana Street, Suite 2900
Houston, TX 77002-5678

Custodian
State Street Bank and Trust Company
225 Franklin
Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

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.
     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-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders	December 31, 2010
Invesco Select Equity Fund

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
12	Financial Statements
14	Notes to Financial Statements
21	Financial Highlights
22	Auditor’s Report
23	Fund Expenses
24	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website — invesco.com/us — offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus — investment management — Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best — manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change — investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial adviser to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial adviser will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

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

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Select Equity Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds. As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisers with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Select Equity Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended December 31, 2010, Class A shares of Invesco Select Equity Fund, at net asset value (NAV), underperformed the Fund’s style-specific benchmark, the Russell 3000 Index. This was due largely to the Fund’s stock selection in the information technology and industrials sectors. The Fund benefited from holdings in the health care sector, as well as its overweight in the consumer discretionary sector. Much of the Fund’s relative underperformance occurred in the first half of 2010 as a result of 2009’s economic downturn. As the year progressed, however, the stock selection model utilized for this Fund generated improved results.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 12/31/09 to 12/31/10, 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*	10.51	%
Class B Shares*	9.68
Class C Shares*	9.70
Class Y Shares*	10.79
S&P 500 Index▼ (Broad Market Index)	15.08
Russell 3000 Index▼ (Style-Specific Index)	16.93
Lipper Multi-Cap Core Funds Index▼ (Peer Group Index)	16.63

▼	Lipper Inc.
*	Performance includes litigation proceeds. Had these proceeds not been received, total return would have been lower.

How we invest

We manage your Fund to provide exposure to large-, mid- and small-capitalization stocks. The portfolio is designed to outperform the Russell 3000 Index, while minimizing the amount of additional risk relative to the benchmark. The Fund can be used as a long-term allocation to stocks across the capitalization spectrum that complements other style-specific strategies within a diversified asset allocation strategy.

     The investment process integrates the following key steps:

n	Universe development
n	Stock rankings
n	Risk assessment
n	Portfolio construction
n	Trading

     While the companies included in the Russell 3000 Index are used as a general guide for developing the Fund’s investable universe, non-benchmark stocks may also be considered. Each stock in the universe is evaluated on four factors: company earnings momentum, price trend, management action and relative valuation. The scores from these factors are combined to arrive at an overall alpha score (excess return forecast) for each stock. Each alpha score is relative to the other securities within the same industry. Stocks also are evaluated on a multitude of other factors to develop a stock-specific risk forecast and transaction cost forecast.

     We then incorporate the alpha forecast, risk forecast and transaction cost

forecast using an optimizer (a software tool) to build a portfolio that we believe is an optimal balance of the stocks’ potential risk and return. This portfolio is constructed according to certain constraints to increase the probability that the Fund’s relative performance and volatility remain within its strategy guidelines. We continually monitor the portfolio, while the overall investment process is repeated on a monthly basis to determine which company holdings should be bought or sold.

     In terms of risk management, we seek to minimize any style biases in the portfolio. Active managers typically add value in one of, or a combination of, four areas: beta bias (relative volatility), style bias, stock selection and sector/industry over- and underweight. We attempt to add value through our stock selection decisions. Consequently, our risk management process seeks to neutralize the Fund’s exposure relative to the benchmark with regard to beta, style and sector/industry exposures.

Market conditions and your Fund

Equity markets were choppy during the fiscal year as investors weighed the competing issues of solid corporate profits and soft macroeconomic data. Corporate earnings were largely positive but often were overshadowed by concerns of high unemployment, lack of consumer spending and soft housing data. After rising through April, major equity indexes sold off precipitously in May, as the sovereign debt crisis unfolded in the eurozone. Meanwhile, U.S. economic indicators remained weak, prompting fears of a double dip recession. Uncertainty created by the debt crisis, combined with subdued employment, consumer spending and housing

Portfolio Composition

By sector

Consumer Discretionary	19.2	%
Information Technology	18.8
Health Care	15.5
Energy	10.4
Financials	8.7
Industrials	8.2
Telecommunication Services	6.4
Materials	5.7
Consumer Staples	3.9
Utilities	2.0
U.S. Treasury Bills, Money Market Funds
Plus Other Assets Less Liabilities	1.2

Top 10 Equity Holdings*

1.	Exxon Mobil Corp.	3.7	%
2.	Apple, Inc.	3.6
3.	Microsoft Corp.	3.3
4.	Chevron Corp.	3.3
5.	International Business Machines Corp.	3.0
6.	AT&T, Inc.	3.0
7.	ConocoPhillips	2.3
8.	Intel Corp.	2.3
9.	Ford Motor Co.	2.3
10.	Verizon Communications, Inc.	2.3

Top 10 Industries*

1.	Integrated Oil & Gas	9.5	%
2.	Managed Health Care	5.7
3.	Pharmaceuticals	5.6
4.	Integrated Telecommunication Services	5.3
5.	Computer Hardware	3.8
6.	Consumer Finance	3.5
7.	Systems Software	3.3
8.	Construction, Farm Machinery & Heavy Trucks	3.2
9.	IT Consulting & Other Services	3.0
10.	Semiconductors	2.6

Total Net Assets	$202.2 million
Total Number of Holdings*		87

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*Excluding money market fund holdings.

4 Invesco Select Equity Fund

data, added to concerns that the recovery was slowing to a sub-normal growth rate. Just as abruptly, however, the markets reversed course during the last quarter of the fiscal year and rallied on modestly better economic news: inflation was tame, industrial production climbed and third quarter gross domestic product (GDP) was revised upward. Retail sales — arguably the most influential data point for the end of the calendar year — climbed 5.5% higher this holiday season.¹ The rising equity markets ended the year with double-digit gains.

     The major equity indexes garnered positive returns for the fiscal year, and all 10 sectors within the S&P 500 Index (S&P) posted gains. All investment styles posted positive returns, with small-cap stocks outperforming large-cap stocks and growth stocks slightly edging value stocks for the period.

     Regarding the results of the Fund, it’s important to understand our investment process to better evaluate the drivers of our relative performance versus the benchmark. We generally evaluate performance based on the effectiveness of our stock selection and risk management.

     Our stock selection model — based on the four factors that make up our alpha forecast for stocks in our investment universe — was a detractor from Fund performance. When selecting Fund holdings, however, we also took into account our risk and transaction cost forecasts. We used our optimization software to assist in making investment decisions based on risk and transaction cost forecasts, as well as our alpha forecast. Consequently, while our stock selection model may identify a stock with an attractive alpha forecast, the optimizer may indicate that its transaction costs are too high and/or its risk level is unacceptable. Placing more of an emphasis on transaction costs and potential risk in making stock selections, may benefit or detract from Fund performance.

     The largest contributor to Fund performance was the consumer discretionary sector. This sector held four out of five of the Fund’s top contributors for the year. Within this sector, two companies within the auto parts and manufacturing industries contributed to results: TRW Automotive Holdings and Ford Motor Company. Ford concluded a strong 2010 with total sales rising 19.4% in 2010.² In addition, the company’s market share in the U.S. increased to 16.7%.² Other contributors to Fund performance were Williams-Sonoma

and Sotheby’s. These companies played a role in the positive stock selection that helped performance in the consumer discretionary sector over the past 12 months. In addition, the Fund has exposure to index future contracts. These future contracts are used for hedging small amounts of cash. During the fiscal year, the exposure to index futures was a slight contributor to the overall performance.

     The primary detractor from returns was stock selection within the information technology (IT) sector. During the fiscal year, Seagate Technologies was involved in a possible takeover. When the bid fell apart in late 2010, the hard drive disk maker chose, instead, to pursue a share buyback plan. The deal’s collapse showed it remained difficult to execute large buyouts, despite an improvement in the credit markets. Before the end of the fiscal year, we sold our holdings in Seagate Technologies. Also within the IT sector, Hewlett-Packard was busy in 2010 with acquisitions. In April, the company completed its purchase of 3Com Corporation. Then, in July, Hewlett-Packard acquired Palm. During the months of September and October, the company acquired Fortify Software; 3PAR, a global provider of utility storage; and ArcSight, a security and compliance management company. Before the end of the fiscal year, we sold our holdings in Hewlett-Packard.

     Other detractors within the IT sector included computer storage maker Western Digital and manufacturer and marketer of semiconductor devices Micron Technology. Before the end of the fiscal year, we sold our holdings in both of these companies.

     We welcome any new investors who joined the Fund during the fiscal year, and to all of our shareholders, we would like to say thank you for your continued investment in Invesco Select Equity Fund.

1 Bloomberg L.P.
2 Reuters

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Ralph Coutant

Chartered Financial Analyst, portfolio manager, is manager of Invesco Select Equity Fund. He joined Invesco in 1999. Mr. Coutant earned a B.S. in business administration from the University of New Hampshire.

Anthony Munchak

Chartered Financial Analyst, portfolio manager, is manager of Invesco Select Equity Fund. He joined Invesco in 2000. Mr. Munchak earned both a B.S. and an M.S. in finance from Boston College. He also earned an M.B.A. from Bentley College.

Glen Murphy

Chartered Financial Analyst, portfolio manager, is manager of Invesco Select Equity Fund. He joined Invesco in 1995. Mr. Murphy earned a B.A. in business administration from the University of Massachusetts. He also earned an M.S. in finance from Boston College.

Francis Orlando

Chartered Financial Analyst, portfolio manager, is manager of Invesco Select Equity Fund. He joined Invesco in 1987. Mr. Orlando earned a B.A. in business administration from Merrimack College. He also earned an M.B.A. from Boston University.

Anthony Shufflebotham

Chartered Financial Analyst, head of research for the Global Quantitative Equity team, is manager of Invesco Select Equity Fund. He joined Invesco in 1998. Mr. Shufflebotham earned a B.S. in economics, accounting and finance from Oxford Brookes University. He also earned an M.S. in finance from Boston College.

5 Invesco Select Equity Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Class since Inception

Index data from 11/30/67, Fund data from 12/4/67

1 Lipper Inc.

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects Fund expenses and management fees; performance of a market index does not.

Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating changes in value during the early years shown in the chart. The vertical axis, the

one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000, and so on.

6 Invesco Select Equity Fund

Average Annual Total Returns

As of 12/31/10, including maximum applicable sales charges

Class A Shares
Inception (12/04/67)			7.30	%
	10	Years	-3.05
	5	Years	-1.99
	1	Year	4.43
Class B Shares
Inception (9/1/93)			4.93	%
	10	Years	-3.08
	5	Years	-2.00
	1	Year	4.68
Class C Shares
Inception (8/4/97)			1.33	%
	10	Years	-3.23
	5	Years	-1.61
	1	Year	8.70
Class Y Shares
	10	Years	-2.44	%
	5	Years	-0.76
	1	Year	10.79

Performance includes litigation proceeds. Had these proceeds not been received, total return 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. 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.

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

7 Invesco Select Equity Fund

Invesco Select Equity Fund’s investment objective is long-term growth of capital.

n	Unless otherwise stated, information presented in this report is as of December 31, 2010, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class Y shares are available only to certain investors. Please see the prospectus for more information.

Principal risks of investing in the Fund

n	The Fund may engage in frequent trading of portfolio securities, which may result in added expenses, lower return and increased tax liability.
n	The issuer of instruments in which the Fund invests may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
n	An investment by an underlying fund in exchange-traded funds (ETFs) generally presents the same primary risks as an investment in a mutual fund. In addition, ETFs may be subject to the following: (1) a discount of the ETF’s shares to its net asset value; (2) failure to develop an active trading market for the ETF’s shares; (3) the listing exchange halting trading of the ETF’s shares; (4) failure of the ETF’s shares to track the referenced index; and (5) holding troubled securities in the referenced index. ETFs may involve duplication of management fees and certain other expenses, as the Fund indirectly bears its proportionate share of any expenses paid by the ETFs in which it invests. Further, certain of the ETFs in which the Fund may invest are leveraged. The more a fund invests in such leveraged ETFs, the more this leverage will magnify any losses on those investments.
n	The Fund’s foreign investments may be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic

	or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. Foreign companies may be subject to less regulation resulting in less publicly available information about the companies.
n	Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.
n	The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.
n	The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.

About indexes used in this report

n	The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
n	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.
n	The Lipper Multi-Cap Core Funds Index is an unmanaged index considered representative of the multi-cap core funds tracked by Lipper.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n	The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
n	The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.
n	Industry classifications used in this report are generally organized 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.

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 Nasdaq Symbols

Class A Shares	AGWFX
Class B Shares	AGWBX
Class C Shares	AGWCX
Class Y Shares	AGWYX

8 Invesco Select Equity Fund

Schedule of Investments^(a)

December 31, 2010

	Shares		Value
Common Stocks & Other Equity Interests–98.78%
Airlines–1.17%
Alaska Air Group, Inc.(b)		41,800	$	2,369,642
Apparel Retail–0.22%
Limited Brands, Inc.		14,300		439,439
Auto Parts & Equipment–1.98%
TRW Automotive Holdings Corp.(b)		76,000		4,005,200
Automobile Manufacturers–2.29%
Ford Motor Co.(b)		275,200		4,620,608
Biotechnology–2.52%
Amgen Inc.(b)		71,800		3,941,820
PDL BioPharma Inc.		186,200		1,160,026
				5,101,846
Cable & Satellite–0.44%
Comcast Corp.–Class A		40,600		891,982
Communications Equipment–1.50%
InterDigital, Inc.		33,100		1,378,284
Riverbed Technology, Inc.(b)		2,800		98,476
Tellabs, Inc.		228,500		1,549,230
				3,025,990
Computer & Electronics Retail–0.83%
Rent-A-Center, Inc.		52,000		1,678,560
Computer Hardware–3.79%
Apple Inc.(b)		22,240		7,173,734
Dell, Inc.(b)		35,500		481,025
				7,654,759
Computer Storage & Peripherals–1.46%
Lexmark International, Inc.–Class A(b)		85,000		2,959,700
Construction & Engineering–1.73%
Chicago Bridge & Iron Co. N.V.–New York Shares(b)		66,200		2,177,980
KBR, Inc.		43,200		1,316,304
				3,494,284
Construction, Farm Machinery & Heavy Trucks–3.21%
Joy Global Inc.		5,800		503,150
Navistar International Corp.(b)		43,700		2,530,667
Oshkosh Corp.(b)		98,100		3,457,044
				6,490,861
Consumer Electronics–1.49%
Garmin Ltd.		97,400		3,018,426
Consumer Finance–3.49%
American Express Co.		85,800		3,682,536
Capital One Financial Corp.		79,500		3,383,520
				7,066,056
Data Processing & Outsourced Services–2.41%
VeriFone Systems, Inc.(b)		50,200		1,935,712
Visa Inc., Class A		41,700		2,934,846
				4,870,558
Department Stores–2.46%
Dillard’s, Inc.–Class A		45,200		1,714,888
Macy’s, Inc.		129,200		3,268,760
				4,983,648
Diversified Banks–0.35%
Wells Fargo & Co.		23,000		712,770
Diversified Metals & Mining–1.49%
Titanium Metals Corp.(b)		175,600		3,016,808
Electric Utilities–0.62%
Exelon Corp.		30,000		1,249,200
Electronic Components–0.58%
Vishay Intertechnology, Inc.(b)		80,100		1,175,868
Electronic Equipment Manufacturers–0.12%
Vishay Precision Group Inc.(b)		12,900		243,036
Footwear–1.70%
Deckers Outdoor Corp.(b)		43,200		3,444,768
Gold–1.66%
Newmont Mining Corp.		54,500		3,347,935
Health Care Distributors–1.71%
Cardinal Health, Inc.		90,200		3,455,562
Homefurnishing Retail–1.77%
Williams-Sonoma, Inc.		100,000		3,569,000
Household Products–2.17%
Procter & Gamble Co. (The)		68,200		4,387,306
Housewares & Specialties–0.30%
American Greetings Corp.–Class A		27,700		613,832
Hypermarkets & Super Centers–0.85%
Wal-Mart Stores, Inc.		31,700		1,709,581
Independent Power Producers & Energy Traders–1.36%
Constellation Energy Group Inc.		90,000		2,756,700

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

9        Invesco Select Equity Fund

	Shares		Value
Industrial Conglomerates–1.34%
General Electric Co.		147,800	$	2,703,262
Integrated Oil & Gas–9.46%
Chevron Corp.		72,900		6,652,125
ConocoPhillips		68,800		4,685,280
Exxon Mobil Corp.		103,400		7,560,608
Occidental Petroleum Corp.		2,400		235,440
				19,133,453
Integrated Telecommunication Services–5.30%
AT&T Inc.		208,800		6,134,544
Verizon Communications, Inc.		128,300		4,590,574
				10,725,118
Internet Software & Services–0.05%
AOL Inc.(b)		4,000		94,840
IT Consulting & Other Services–3.03%
International Business Machines Corp.		41,800		6,134,568
Life & Health Insurance–0.36%
Aflac, Inc.		13,000		733,590
Managed Health Care–5.73%
AMERIGROUP Corp.(b)		26,900		1,181,448
CIGNA Corp.		18,700		685,542
Health Net, Inc.(b)		81,100		2,213,219
Humana Inc.(b)		62,200		3,404,828
UnitedHealth Group, Inc.		113,400		4,094,874
				11,579,911
Movies & Entertainment–1.34%
Madison Square Garden, Inc.–Class A(b)		16,100		415,058
Time Warner, Inc.		71,200		2,290,504
				2,705,562
Multi-Line Insurance–1.19%
Assurant, Inc.		62,400		2,403,648
Oil & Gas Refining & Marketing–0.98%
Sunoco, Inc.		49,400		1,991,314
Packaged Foods & Meats–0.62%
Tyson Foods, Inc.–Class A		72,400		1,246,728
Paper Products–1.99%
Domtar Corp.		40,400		3,067,168
International Paper Co.		34,900		950,676
				4,017,844
Pharmaceuticals–5.55%
Bristol-Myers Squibb Co.		102,400		2,711,552
Eli Lilly and Co.		103,600		3,630,144
Forest Laboratories, Inc.(b)		41,000		1,311,180
Johnson & Johnson		7,700		476,245
Par Pharmaceutical Cos Inc.(b)		11,500		442,865
Pfizer, Inc.		98,200		1,719,482
ViroPharma Inc.(b)		54,200		938,744
				11,230,212
Property & Casualty Insurance–1.39%
Berkshire Hathaway Inc.–Class B(b)		24,700		1,978,717
Chubb Corp. (The)		11,000		656,040
XL Group PLC (Ireland)		8,000		174,560
				2,809,317
Publishing–2.42%
Gannett Co., Inc.		233,200		3,518,988
McGraw-Hill Cos., Inc. (The)		37,700		1,372,657
				4,891,645
Real Estate Development–0.16%
Howard Hughes Corp.(b)		5,800		315,636
Regional Banks–1.27%
Fifth Third Bancorp		97,900		1,437,172
KeyCorp		128,000		1,132,800
				2,569,972
Residential REIT’s–0.26%
Equity Residential		10,300		535,085
Semiconductors–2.58%
Intel Corp.		220,400		4,635,012
RF Micro Devices, Inc.(b)		79,800		586,530
				5,221,542
Specialized Consumer Services–1.91%
Sotheby’s		85,800		3,861,000
Specialized REIT’s–0.19%
Public Storage		3,800		385,396
Specialty Chemicals–0.56%
W.R. Grace & Co.(b)		32,100		1,127,673
Systems Software–3.32%
Microsoft Corp.		240,800		6,723,136
Tobacco–0.23%
Philip Morris International Inc.		8,000		468,240
Trucking–0.76%
AMERCO(b)		16,100		1,546,244

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

10        Invesco Select Equity Fund

	Shares		Value
Wireless Telecommunication Services–1.12%
Sprint Nextel Corp.(b)		532,900	$	2,254,167
Total Common Stocks & Other Equity Interests (Cost $165,813,000)				199,763,028
	Principal
	Amount
U.S. Treasury Bill–0.39%
0.14% 03/17/11(c)(d) (Cost $794,768)	$	795,000		794,831
	Shares
Money Market Funds–1.03%
Liquid Assets Portfolio–Institutional Class(e)		1,041,875		1,041,875
Premier Portfolio–Institutional Class(e)		1,041,875		1,041,875
Total Money Market Funds (Cost $2,083,750)				2,083,750
TOTAL INVESTMENTS–100.20% (Cost $168,691,518)				202,641,609
OTHER ASSETS LESS LIABILITIES–(0.20)%				(410,924	)
NET ASSETS–100.00%			$	202,230,685

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.

11        Invesco Select Equity Fund

Statement of Assets and Liabilities

December 31, 2010

Assets:
Investments, at value (Cost $166,607,768)	$	200,557,859
Investments in affiliated money market funds, at value and cost		2,083,750
Total investments, at value (Cost $168,691,518)		202,641,609
Cash		26,450
Receivables for:
Fund shares sold		22,376
Dividends		115,769
Investment for trustee deferred compensation and retirement plans		101,556
Other assets		27,234
Total assets		202,934,994
Liabilities:
Payable for:
Fund shares reacquired		269,995
Variation margin		3,030
Accrued fees to affiliates		196,704
Accrued other operating expenses		61,664
Trustee deferred compensation and retirement plans		172,916
Total liabilities		704,309
Net assets applicable to shares outstanding	$	202,230,685
Net assets consist of:
Shares of beneficial interest	$	272,088,316
Undistributed net investment income		458,796
Undistributed net realized gain (loss)		(104,305,703	)
Unrealized appreciation		33,989,276
	$	202,230,685
Net assets:
Class A	$	173,982,799
Class B	$	14,147,296
Class C	$	12,305,505
Class Y	$	1,795,085
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		9,883,875
Class B		932,002
Class C		812,334
Class Y		101,689
Class A:
Net asset value per share	$	17.60
Maximum offering price per share (Net asset value of $17.60 divided by 94.50%)	$	18.62
Class B:
Net asset value and offering price per share	$	15.18
Class C:
Net asset value and offering price per share	$	15.15
Class Y:
Net asset value and offering price per share	$	17.65

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

12        Invesco Select Equity Fund

Statement of Operations

For the year ended December 31, 2010

Investment income:
Dividends	$	3,870,553
Dividends from affiliated money market funds		2,467
Total investment income		3,873,020
Expenses:
Advisory fees		1,511,592
Administrative services fees		50,000
Custodian fees		14,981
Distribution fees:
Class A		425,392
Class B		155,946
Class C		123,645
Transfer agent fees		780,836
Trustees’ and officers’ fees and benefits		21,430
Other		165,047
Total expenses		3,248,869
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(6,468	)
Net expenses		3,242,401
Net investment income		630,619
Realized and unrealized gain from:
Net realized gain from:
Investment securities		12,453,772
Futures contracts		244,866
		12,698,638
Change in net unrealized appreciation of:
Investment securities		5,048,980
Futures contracts		28,005
		5,076,985
Net realized and unrealized gain		17,775,623
Net increase in net assets resulting from operations	$	18,406,242

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

13        Invesco Select Equity Fund

Statement of Changes in Net Assets

For the years ended December 31, 2010 and 2009

	2010			2009
Operations:
Net investment income	$	630,619		$	724,987
Net realized gain (loss)		12,698,638			(38,419,004	)
Change in net unrealized appreciation		5,076,985			80,090,191
Net increase in net assets resulting from operations		18,406,242			42,396,174
Distributions to shareholders from net investment income:
Class A		(695,498	)		(803,875	)
Class Y		(11,504	)		(9,089	)
Total distributions from net investment income		(707,002	)		(812,964	)
Share transactions–net:
Class A		(13,131,788	)		(15,797,722	)
Class B		(5,392,686	)		(8,444,441	)
Class C		(2,024,626	)		(1,818,089	)
Class Y		(88,673	)		428,519
Net increase (decrease) in net assets resulting from share transactions		(20,637,773	)		(25,631,733	)
Net increase (decrease) in net assets		(2,938,533	)		15,951,477
Net assets:
Beginning of year		205,169,218			189,217,741
End of year (includes undistributed net investment income of $458,796 and $535,494, respectively)	$	202,230,685		$	205,169,218

Notes to Financial Statements

December 31, 2010

NOTE 1—Significant Accounting Policies

Invesco Select Equity Fund (the “Fund”) is a series portfolio of AIM Funds Group (Invesco 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 C shares are sold with a CDSC. Class Y shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

  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”).

14        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 (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
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.

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average 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, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver (excluding certain items discussed below) of Class A, Class B, Class C 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. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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 year ended December 31, 2010, the Adviser waived advisory fees of $3,204.

  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

16        Invesco Select Equity Fund

reimbursement are included in the Statement of Operations. For the year ended December 31, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $947.

  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 year ended December 31, 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 year ended December 31, 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 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 year ended December 31, 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 year ended December 31, 2010, IDI advised the Fund that IDI retained $11,276 in front-end sales commissions from the sale of Class A shares and $136, $33,525 and $420 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

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 December 31, 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 year ended December 31, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	201,846,778	$	—	$	—	$	201,846,778
U.S. Treasury Securities		—		794,831		—		794,831
Subtotal	$	201,846,778	$	794,831	$	—	$	202,641,609
Futures*		39,185				—		39,185
Total Investments	$	201,885,963	$	794,831	$	—	$	202,680,794

*  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.

17        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 December 31, 2010:

	Value
Risk Exposure/ Derivative Type	Assets		Liabilities
Index risk
Futures contracts(a)	$	39,185	$	—

^(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 year ended December 31, 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	$	244,866
Change in Unrealized Appreciation (Depreciation)
Index risk		28,005
Total	$	272,871

*  The average value of futures outstanding during the period was $2,818,668.

Open Futures Contracts
							Unrealized
	Number of		Month/				Appreciation
Contract	Contracts		Commitment		Value		(Depreciation)
S&P 500 E-Mini Futures		41		March-2011/Long	$	2,568,650	$	39,185

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 year ended December 31, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,317.

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 year ended December 31, 2010, the Fund paid legal fees of $2,953 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—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Years Ended December 31, 2010 and 2009:

	2010		2009
Ordinary income	$	707,002	$	812,964

18        Invesco Select Equity Fund

Tax Components of Net Assets at Period-End:

	2010
Undistributed ordinary income	$	622,135
Net unrealized appreciation — investments		32,632,495
Temporary book/tax differences		(163,341	)
Capital loss carryforward		(102,948,920	)
Shares of beneficial interest		272,088,316
Total net assets	$	202,230,685

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

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

  The Fund utilized $10,406,077 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	48,744,705
December 31, 2017		54,204,215
Total capital loss carryforward	$	102,948,920

*  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 year ended December 31, 2010 was $180,456,467 and $201,896,116, 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	$	33,943,401
Aggregate unrealized (depreciation) of investment securities		(1,310,906	)
Net unrealized appreciation of investment securities	$	32,632,495
Cost of investments for tax purposes is $170,009,114.

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of an adjustment for prior year dividend received from real estate investment trusts, on December 31, 2010, undistributed net investment income was decreased by $315 and undistributed net realized gain (loss) was increased by $315. This reclassification had no effect on the net assets of the Fund.

19        Invesco Select Equity Fund

NOTE 11—Share Information

	Summary of Share Activity
	Years ended December 31,
	2010(a)						2009
	Shares			Amount			Shares			Amount
Sold:
Class A		1,061,758		$	17,630,298			2,049,347		$	26,747,341
Class B		126,603			1,787,755			193,368			2,208,110
Class C		59,820			841,780			101,957			1,164,256
Class Y		21,890			368,786			622,364			8,263,920
Issued as reinvestment of dividends:
Class A		38,506			675,392			48,303			757,871
Class Y		702			11,504			549			8,641
Automatic conversion of Class B shares to Class A shares:
Class A		240,597			3,870,444			504,345			6,543,145
Class B		(278,887	)		(3,870,444	)		(581,922	)		(6,543,145	)
Reacquired:
Class A		(2,207,337	)		(35,307,922	)		(3,679,059	)		(49,846,079	)
Class B		(237,161	)		(3,309,997	)		(360,252	)		(4,109,406	)
Class C		(208,131	)		(2,866,406	)		(259,733	)		(2,982,345	)
Class Y		(28,530	)		(468,963	)		(600,389	)		(7,844,042	)
Net increase (decrease) in share activity		(1,410,170	)	$	(20,637,773	)		(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 11% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

NOTE 12—Significant Event

Following a number of meetings in September and October, 2010, the Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would transfer all of its assets and liabilities to Invesco Structure Core Fund (the “Acquiring Fund”) in exchange for shares of the Acquiring Fund. The Agreement requires approval of the Fund’s shareholders and will be submitted to the shareholders for their consideration at a meeting to be held in or around April 2011.

20        Invesco Select Equity Fund

NOTE 13—Financial Highlights

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

																						Ratio of			Ratio of
						Net gains																expenses			expenses
						(losses) on																to average			to average net			Ratio of net
	Net asset		Net			securities						Dividends										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			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
Year ended 12/31/10	$	15.99	$	0.07		$	1.61	(e)	$	1.68		$	(0.07	)	$	17.60		10.51	%(e)	$	173,983		1.52	%(d)		1.52	%(d)		0.42	%(d)		92	%
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
Class B
Year ended 12/31/10		13.84		(0.05	)		1.39	(e)		1.34			—			15.18		9.68	(e)		14,147		2.27	(d)		2.27	(d)		(0.33	)(d)		92
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
Class C
Year ended 12/31/10		13.81		(0.05	)		1.39	(e)		1.34			—			15.15		9.70	(e)		12,306		2.27	(d)		2.27	(d)		(0.33	)(d)		92
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
Class Y
Year ended 12/31/10		16.03		0.11			1.62	(e)		1.73			(0.11	)		17.65		10.79	(e)		1,795		1.27	(d)		1.27	(d)		0.67	(d)		92
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 $170,157, $15,595, $12,364, and $1,739 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 for the year ended December 31, 2010 would have been $1.57, $1.35, $1.35 and $1.58 for Class A, Class B, Class C, and Class Y shares, respectively and total return would have been lower. Net gains (losses) on securities (both realized and unrealized) per share for the year ended December 31, 2009 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.

21        Invesco Select Equity Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Funds Group (Invesco Funds Group)

and Shareholders of Invesco Select Equity Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Select Equity Fund (formerly known as AIM Select Equity Fund; one of the funds constituting AIM Funds Group (Invesco Funds Group), hereafter referred to as the “Fund”) at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

February 22, 2011

Houston, Texas

22        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 July 1, 2010 through December 31, 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	(07/01/10)		(12/31/10)1		Period2		(12/31/10)		Period2		Ratio
A	$	1,000.00	$	1,227.10	$	8.42	$	1,017.64	$	7.63		1.50	%
B		1,000.00		1,223.20		12.61		1,013.86		11.42		2.25
C		1,000.00		1,222.80		12.61		1,013.86		11.42		2.25
Y		1,000.00		1,229.10		7.02		1,018.90		6.36		1.25

1	The actual ending account value is based on the actual total return of the Fund for the period July 1, 2010 through December 31, 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 184/365 to reflect the most recent fiscal half year.

23        Invesco Select Equity Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended December 31, 2010:

Federal and State Income Tax
Qualified Dividend Income*	100%
Corporate Dividends Received Deduction*	100%
U.S. Treasury Obligations*	0.02%

*  The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

24        Invesco Select Equity Fund

Trustees and Officers

The address of each trustee and officer is AIM Funds Groups (Invesco Funds Group) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1987	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie		208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208		Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208		Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208		None
Lewis F. Pennock — 1942 Trustee	1992	Partner, law firm of Pennock & Cooper	208		None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208		None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226		Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208		None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1992	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Counsel to the Fund
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103

Investment Adviser
Invesco Advisers, Inc.
1555 Peachtree Street, N.E.
Atlanta, GA 30309

Counsel to the Independent Trustees
Kramer, Levin, Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036-2714

Distributor
Invesco Distributors, Inc.
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Transfer Agent
Invesco Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

Auditors
PricewaterhouseCoopers LLP
1201 Louisiana Street, Suite 2900
Houston, TX 77002-5678

Custodian
State Street Bank and Trust Company
225 Franklin
Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

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.

     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-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders	December 31, 2010
Invesco Small Cap Equity Fund

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
12	Financial Statements
14	Notes to Financial Statements
20	Financial Highlights
21	Auditor’s Report
22	Fund Expenses
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website — invesco.com/us — offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus — investment management — Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best — manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change — investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial adviser to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial adviser will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

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

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2     Invesco Small Cap Equity Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds. As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisers with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3     Invesco Small Cap Equity Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended December 31, 2010, all share classes of Invesco Small Cap Equity Fund, at net asset value (NAV), posted double-digit returns, outperforming the Fund’s style-specific index, the Russell 2000 Index. This outperformance was driven primarily by stock selection across a number of sectors.

     All share classes of the Fund, at NAV, also outperformed the Fund’s broad market index, the S&P 500 Index, as small-cap stocks generally outperformed large-cap stocks during the period.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 12/31/09 to 12/31/10, 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	28.57	%
Class B Shares	27.61
Class C Shares	27.75
Class R Shares	28.39
Class Y Shares	28.87
Institutional Class Shares	29.30
S&P 500 Index▼ (Broad Market Index)	15.08
Russell 2000 Index▼ (Style-Specific Index)	26.85
Lipper Small-Cap Core Funds Index▼ (Peer Group Index)	25.71

^▼ Lipper Inc.

How we invest

Our investment process seeks to identify attractively valued small-cap companies with high-growth potential, demonstrated by consistent and accelerating revenue and earnings growth.

We begin with a quantitative model that ranks companies based on a set of fundamental, valuation and timeliness factors. This proprietary model provides an objective approach to identifying new investment opportunities, as the highest ranked stocks become the primary focus of our research efforts.

     Our stock selection process is based on a rigorous three-step process.

1. Fundamental analysis: Building financial models and conducting in-depth interviews with company management.

2.	Valuation analysis: Identifying attractively valued stocks given their growth potential over a one- to two-year horizon.
3.	Timeliness analysis: Identifying the “timeliness” of a stock purchase. We review trading volume characteristics and trend analysis to make sure there are no signs of stock deterioration. This also serves as a risk management measure that helps us confirm our high conviction candidates.

     Portfolio construction plays an important role in risk management. We align the Fund with the S&P
Small Cap 600 Index, the benchmark we believe represents the small-cap growth asset class. We seek
to manage risk by keeping the Fund’s sector weightings in line with the benchmark by staying fully
diversified in

all those sectors. We also seek to limit stock-specific risk by investing in typically 120 to 130 holdings.

     We consider selling a stock when it no longer meets our investment criteria for the following reasons:

n	Our original investment thesis is not valid because the fundamentals are no longer intact.
n	The price target set at purchase is exceeded.
n	The company’s timeliness profile deteriorates.

Market conditions and your Fund

During the Fund’s fiscal year, the U.S. economy showed signs of improvement, indicating that potentially it has transitioned from a contraction phase economy to an expansionary one. Nevertheless, the pace of recovery remained modest, and the transition from government stimulus-induced growth to private economic recovery was uncertain.

     The U.S. Federal Reserve’s (the Fed) federal funds target rate remained low, ranging from zero to 0.25%.¹ Real gross domestic product (GDP) registered positive growth during the reporting period, with quarterly increases of 3.7%, 1.7% and 2.6% for the first, second and third quarters of 2010, respectively.² Inflation, measured by the seasonally-adjusted Consumer Price Index, remained relatively benign. Labor markets improved as layoffs moderated; however, new hiring remained quite weak. Unemployment, after climbing steadily throughout 2009, fell slightly during 2010 to a rate of 9.4% nationwide as of December 2010.³

     While stock market volatility increased significantly during the fiscal year, indexes measuring the performance of large-, mid- and small-cap stocks finished

Portfolio Composition

By sector

Information Technology	18.1	%
Consumer Discretionary	17.1
Industrials	17.0
Financials	15.8
Health Care	10.0
Energy	8.8
Materials	6.0
Consumer Staples	2.1
Utilities	1.3
Telecommunications	0.9
Money Market Funds Plus
Other Assets Less Liabilities	2.9

Top 10 Equity Holdings*

1.	Ariba, Inc.	1.9	%
2.	Titan International, Inc.	1.8
3.	TRW Automotive Holdings Corp.	1.6
4.	TIBCO Software, Inc.	1.6
5.	JDS Uniphase Corp.	1.4
6.	Phillips-Van Heusen Corp.	1.3
7.	Dillard’s, Inc.-Class A	1.3
8.	Gardner Denver, Inc.	1.2
9.	Dionex Corp.	1.2
10.	OSI Systems, Inc.	1.2

Top Five Industries*

1.	Regional Banks	6.5	%
2.	Restaurants	4.5
3.	Application Software	3.8
4.	Oil & Gas Equipment & Services	3.7
5.	Environmental & Facilities Services	3.1

Total Net Assets	$666.6 million
Total Number of Holdings*		105

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*Excluding money market fund holdings.

4     Invesco Small Cap Equity Fund

the period with positive, double-digit returns. In terms of investment style, growth stocks generally outperformed value stocks. The sectors with the highest returns in the Russell 2000 Index included more economically sensitive sectors such as information technology (IT), consumer discretionary and industrials, as well as the energy and materials sectors. Conversely, more defensive sectors, such as utilities, health care and telecommunication services, had the lowest returns but still were in positive territory.

     All share classes of the Fund, at NAV, had double-digit absolute returns and outperformed the Russell 2000 Index, primarily due to stock selection in the health care and industrials sectors. The Fund also outperformed in other sectors, including consumer discretionary, utilities and consumer staples.

     The Fund outperformed by the widest margin in the health care sector, driven by stock selection in the pharmaceutical/ biotechnology/life sciences industry group. Two pharmaceutical development holdings, Biovail and ViroPharma, made strong contributions to performance, while endovascular device maker ev3, was also a key contributor to performance. The stock price of ev3 appreciated following the announcement that the company would be acquired by a competitor. We sold the Fund’s position in this holding after the positive news, thereby locking in gains for shareholders. Before the end of the period, we also sold our holdings in Biovail.

     The Fund also outperformed in the industrials sector due to stock selection. One area of strength was in capital goods. Two of the leading contributors to overall Fund performance were industrial wheel and tire maker Titan International and electrical products maker Baldor Electric. Titan International benefited from significantly improved demand for its products during the fiscal year, while the stock price of Baldor Electric appreciated following the announcement that the company was being acquired at a premium by a competitor. We subsequently sold the Fund’s position in Baldor Electric, thereby locking in gains for shareholders.

     Outperformance in the consumer discretionary sector was driven by stock selection. One of the leading contributors to performance was automotive components supplier TRW Automotive Holdings, which benefited from strong growth in revenue and earnings during the period.

     Some of this outperformance was offset by underperformance in other sectors including IT, financials and energy. The Fund underperformed by the widest margin in the IT sector, driven by stock selection. Two holdings in the technology hardware and equipment industry group, Comtech Telecommunications, a communication products and services provider, and Arris Group, a broadband products and services provider, were among the leading detractors of performance during the period. We sold the Fund’s position in both holdings due to deteriorating fundamentals.

     Underperformance in the financials sector was also due to stock selection. One holding that detracted from performance was investment management firm GAMCO Investors. This holding was sold due to deteriorating fundamentals.

     The Fund also underperformed in the energy sector due to stock selection. Two of the leading detractors to performance were exploration and production holdings Comstock Resources and Arena Resources. Both companies have high natural gas exposure, and therefore, generally had weak performance as natural gas prices continued to fall during much of the period. While we continue to own a small position in Comstock Resources, we sold the Fund’s position in Arena Resources.

     During the year, the most significant positioning changes included additions in the consumer discretionary and materials sectors. Purchases in these sectors were funded by reducing exposure to the health care, IT, industrials and telecommunication services sectors. All changes to the Fund were based on our bottom-up stock selection process of identifying high-quality growth companies trading at what we believe are attractive valuations.

     The stock market experienced significant volatility during the fiscal year. We would like to caution investors against making investment decisions based on short-term performance. As always, we recommend that you consult your financial adviser to discuss your individual financial program. We thank you for your commitment to Invesco Small Cap Equity Fund.

1	U.S. Federal Reserve
2	Bureau of Economic Analysis
3	Bureau of Labor Statistics

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Juliet Ellis
Chartered Financial Analyst, portfolio manager, is lead manager of Invesco Small Cap Equity Fund. Ms. Ellis joined Invesco in 2004. She earned a B.A. in economics and political science from Indiana University.

Juan Hartsfield
Chartered Financial Analyst, portfolio manager, is manager of Invesco Small Cap Equity Fund. Mr. Hartsfield joined Invesco in 2004. He earned a B.S. in petroleum engineering from The University of Texas. He also earned an M.B.A. from the University of Michigan.

5     Invesco Small Cap Equity Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment — Oldest Share Classes since Inception

Fund and index data from 8/31/00

1 Lipper Inc.

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects Fund expenses and management fees; performance of a market index does not. Performance shown in the chart and table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000.

6     Invesco Small Cap Equity Fund

Average Annual Total Returns

As of 12/31/10, including maximum applicable sales charges

Class A Shares
Inception (8/31/00)	5.42	%
10 Years	6.31
5 Years	4.21
1 Year	21.55
Class B Shares
Inception (8/31/00)	5.42	%
10 Years	6.29
5 Years	4.29
1 Year	22.61
Class C Shares
Inception (8/31/00)	5.25	%
10 Years	6.15
5 Years	4.62
1 Year	26.75
Class R Shares
10 Years	6.67	%
5 Years	5.14
1 Year	28.39
Class Y Shares
10 Years	6.98	%
5 Years	5.53
1 Year	28.87
Institutional Class Shares
10 Years	7.27	%
5 Years	5.98
1 Year	29.30

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. 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.

7     Invesco Small Cap Equity Fund

Invesco Small Cap Equity Fund’s investment objective is long-term growth of capital.

n	Unless otherwise stated, information presented in this report is as of December 31, 2010, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class R shares are available only to certain retirement plans. Please see the prospectus for more information.
n	Class Y shares are available only to certain investors. Please see the prospectus for more information.
n	Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Please see the prospectus for more information.

Principal risks of investing in the Fund

n

Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments in the above factors and may have little or no operating history or track record of success, and limited product lines, markets, management and financial resources. The securities of small and mid-sized companies may be more volatile due to less market interest and less publicly available information about the issuer. They also may be illiquid or restricted as to resale, or may trade less frequently and in smaller volumes, all of which may cause difficulty when establishing or closing a position at a desirable price.

n

An investment by an underlying fund in exchange-traded funds (ETFs) generally presents the same primary risks as an investment in a mutual fund. In addition, ETFs may be subject to the following: (1) a discount of the ETF’s shares to its net asset value; (2) failure to develop an active trading market for the ETF’s shares; (3) the listing exchange halting trading of the ETF’s shares; (4) failure of the ETF’s shares to track the referenced index; and (5) holding troubled securities in the referenced index. ETFs may involve duplication of management fees and certain other expenses, as the Fund

	indirectly bears its proportionate share of any expenses paid by the ETFs in which it invests. Further, certain shares of the ETFs in which the Fund may invest are leveraged. The more a fund invests in such leveraged ETFs, the more this leverage will magnify any losses on those investments.
n	The dollar value of the Fund’s foreign investments will be affected by changes in the exchange rates between the dollar and the currencies in which those investments are traded. The value of the Fund’s foreign investments may be adversely affected by political and social instability in their home countries, by changes in economic or taxation policies in those countries, or by the difficulty in enforcing obligations in those countries. Foreign companies generally may be subject to less stringent regulations than U.S. companies, including financial reporting requirements and auditing and accounting controls. As a result, there generally is less publicly available information about foreign companies than about U.S. companies. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market or other factors.
n	The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.
n	The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.

About indexes used in this report

n	The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
n	The S&P Small Cap 600 Index is a market-value weighted index that consists of 600 small-cap U.S. stocks chosen for market size, liquidity and industry group representation.

n	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.
n	The Lipper Small-Cap Core Funds Index is an unmanaged index considered representative of small-cap core funds tracked by Lipper.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n	The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
n	The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.
n	Industry classifications used in this report are generally organized 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.

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 GURANTEE

Fund Nasdaq Symbols

Class A Shares	SMEAX
Class B Shares	SMEBX
Class C Shares	SMECX
Class R Shares	SMERX
Class Y Shares	SMEYX
Institutional Class Shares	SMEIX

8     Invesco Small Cap Equity Fund

Schedule of Investments^(a)

December 31, 2010

	Shares		Value
Common Stocks & Other Equity Interests–97.12%
Advertising–1.20%
Interpublic Group of Cos., Inc. (The)(b)		751,407	$	7,979,942
Aerospace & Defense–2.01%
AAR Corp.(b)		237,131		6,513,989
Aerovironment, Inc.(b)		113,558		3,046,761
Curtiss-Wright Corp.		115,257		3,826,532
				13,387,282
Agricultural Products–1.14%
Corn Products International, Inc.		165,123		7,595,658
Air Freight & Logistics–1.15%
UTI Worldwide, Inc.		362,230		7,679,276
Apparel Retail–1.92%
Genesco Inc.(b)		181,967		6,821,943
The Finish Line, Inc.–Class A		348,542		5,991,437
				12,813,380
Apparel, Accessories & Luxury Goods–2.19%
Hanesbrands, Inc.(b)		224,228		5,695,391
Phillips-Van Heusen Corp.		141,045		8,887,246
				14,582,637
Application Software–3.80%
Parametric Technology Corp.(b)		299,573		6,749,380
Quest Software, Inc.(b)		286,986		7,960,992
TIBCO Software Inc.(b)		537,361		10,591,385
				25,301,757
Asset Management & Custody Banks–1.79%
Affiliated Managers Group, Inc.(b)		58,522		5,806,553
SEI Investments Co.		258,651		6,153,307
				11,959,860
Auto Parts & Equipment–2.74%
Dana Holding Corp.(b)		443,993		7,641,120
TRW Automotive Holdings Corp.(b)		201,970		10,643,819
				18,284,939
Automotive Retail–0.86%
Penske Automotive Group, Inc.(b)		329,170		5,734,141
Casinos & Gaming–0.82%
Bally Technologies Inc.(b)		129,595		5,467,613
Coal & Consumable Fuels–1.04%
James River Coal Co.(b)		274,426		6,951,211
Communications Equipment–2.12%
JDS Uniphase Corp.(b)		625,883		9,062,786
Lantronix Inc.–Wts., expiring 02/09/11(c)		2,606		0
Tellabs, Inc.		746,745		5,062,931
				14,125,717
Construction, Farm Machinery & Heavy Trucks–2.59%
Titan International, Inc.(d)		600,663		11,736,955
Trinity Industries, Inc.		206,773		5,502,230
				17,239,185
Data Processing & Outsourced Services–1.12%
Wright Express Corp.(b)		162,003		7,452,138
Department Stores–1.30%
Dillard’s, Inc.–Class A(d)		229,246		8,697,593
Diversified Chemicals–0.97%
FMC Corp.		80,947		6,466,856
Diversified Metals & Mining–1.02%
Compass Minerals International, Inc.		75,936		6,778,807
Electrical Components & Equipment–2.38%
Belden Inc.		218,126		8,031,399
GrafTech International Ltd.(b)		394,810		7,833,031
				15,864,430
Electronic Equipment & Instruments–1.82%
OSI Systems, Inc.(b)		221,049		8,037,342
Rofin-Sinar Technologies, Inc.(b)		115,887		4,107,035
				12,144,377
Environmental & Facilities Services–3.11%
ABM Industries Inc.		290,763		7,647,067
Team, Inc.(b)		304,179		7,361,132
Waste Connections, Inc.		206,809		5,693,451
				20,701,650
Gas Utilities–1.34%
Energen Corp.		81,028		3,910,411
UGI Corp.		159,027		5,022,073
				8,932,484
Health Care Distributors–0.66%
Owens & Minor, Inc.		149,194		4,390,779
Health Care Equipment–0.74%
Teleflex Inc.		91,845		4,942,179

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

9        Invesco Small Cap Equity Fund

	Shares		Value
Health Care Facilities–2.17%
Hanger Orthopedic Group, Inc.(b)		313,807	$	6,649,571
Universal Health Services, Inc.–Class B(b)		180,672		7,844,778
				14,494,349
Health Care Services–0.72%
Gentiva Health Services, Inc.(b)		180,260		4,794,916
Health Care Supplies–1.08%
Cooper Cos., Inc.		127,368		7,175,913
Health Care Technology–0.67%
Omnicell, Inc.(b)		307,006		4,436,237
Home Furnishings–0.91%
Ethan Allen Interiors Inc.		302,184		6,046,702
Industrial Machinery–3.07%
Gardner Denver Inc.		120,064		8,262,804
IDEX Corp.		170,082		6,653,608
Valmont Industries, Inc.		62,212		5,520,071
				20,436,483
Insurance Brokers–0.80%
Arthur J. Gallagher & Co.		183,798		5,344,846
Integrated Telecommunication Services–0.85%
Alaska Communications Systems Group Inc.(d)		512,233		5,685,786
Internet Software & Services–1.97%
GSI Commerce, Inc.(b)		200,606		4,654,059
Open Text Corp. (Canada)(b)		132,047		6,082,085
ValueClick, Inc.(b)		151,044		2,421,235
				13,157,379
Investment Banking & Brokerage–0.81%
KBW Inc.		193,819		5,411,426
IT Consulting & Other Services–0.83%
CACI International Inc.–Class A(b)		104,217		5,565,188
Life Sciences Tools & Services–1.22%
Dionex Corp.(b)		68,929		8,134,311
Metal & Glass Containers–0.88%
AptarGroup, Inc.		123,454		5,872,707
Movies & Entertainment–0.67%
World Wrestling Entertainment, Inc.–Class A(d)		315,221		4,488,747
Office REIT’s–1.53%
Alexandria Real Estate Equities, Inc.		68,068		4,986,662
Digital Realty Trust, Inc.(d)		101,100		5,210,694
				10,197,356
Oil & Gas Drilling–1.01%
Patterson-UTI Energy, Inc.		311,767		6,718,579
Oil & Gas Equipment & Services–3.72%
Complete Production Services, Inc.(b)		226,598		6,695,971
Dresser-Rand Group, Inc.(b)		160,992		6,856,649
Lufkin Industries, Inc.		73,257		4,570,504
Oceaneering International, Inc.(b)		90,443		6,659,318
				24,782,442
Oil & Gas Exploration & Production–1.91%
Comstock Resources, Inc.(b)		40,576		996,547
Forest Oil Corp.(b)		195,284		7,414,933
SandRidge Energy Inc.(b)		589,517		4,315,264
				12,726,744
Oil & Gas Refining & Marketing–1.08%
Frontier Oil Corp.(b)		399,584		7,196,508
Packaged Foods & Meats–1.00%
TreeHouse Foods, Inc.(b)		130,288		6,656,414
Paper Products–1.04%
Schweitzer-Mauduit International, Inc.		110,488		6,951,905
Pharmaceuticals–2.75%
Valeant Pharmaceuticals International, Inc.		216,908		6,136,327
ViroPharma Inc.(b)		445,644		7,718,554
VIVUS, Inc.(b)(d)		477,147		4,470,868
				18,325,749
Property & Casualty Insurance–1.64%
FPIC Insurance Group, Inc.(b)		127,387		4,708,223
Hanover Insurance Group Inc.		92,790		4,335,149
Safety Insurance Group, Inc.		39,709		1,888,957
				10,932,329
Regional Banks–6.53%
Associated Banc-Corp		391,409		5,929,846
BancFirst Corp.		117,628		4,845,097
Columbia Banking System, Inc.		272,124		5,730,931
Commerce Bancshares, Inc.		134,199		5,331,744
Community Trust Bancorp, Inc.		141,813		4,106,905
East West Bancorp, Inc.		328,474		6,421,667
FirstMerit Corp.		252,736		5,001,645
Zions Bancorp		255,707		6,195,781
				43,563,616
Restaurants–4.50%
Brinker International, Inc.		301,993		6,305,614
DineEquity, Inc.(b)		136,868		6,758,542
P.F. Chang’s China Bistro, Inc.(d)		117,431		5,690,706

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

10        Invesco Small Cap Equity Fund

	Shares		Value
Restaurants–(continued)
Papa John’s International, Inc.(b)		141,213	$	3,911,600
Texas Roadhouse, Inc.(b)		428,905		7,364,299
				30,030,761
Retail REIT’s–1.02%
Tanger Factory Outlet Centers, Inc.		132,300		6,772,437
Semiconductor Equipment–2.63%
Advanced Energy Industries, Inc.(b)		343,475		4,684,999
Cymer, Inc.(b)		143,685		6,475,883
MKS Instruments, Inc.(b)		261,092		6,394,143
				17,555,025
Semiconductors–1.06%
Semtech Corp.(b)		312,107		7,066,102
Specialized REIT’s–1.72%
LaSalle Hotel Properties		288,796		7,624,214
Senior Housing Properties Trust		174,040		3,818,438
				11,442,652
Specialty Chemicals–2.08%
Innophos Holdings, Inc.		176,600		6,371,728
PolyOne Corp.(b)		599,546		7,488,330
				13,860,058
Systems Software–1.88%
Ariba Inc.(b)		533,082		12,522,096
Technology Distributors–0.84%
Ingram Micro Inc.–Class A(b)		293,235		5,597,856
Trading Companies & Distributors–0.79%
Beacon Roofing Supply, Inc.(b)		295,272		5,276,511
Trucking–1.91%
Landstar System, Inc.		123,578		5,059,284
Old Dominion Freight Line, Inc.(b)		240,074		7,679,967
				12,739,251
Total Common Stocks & Other Equity Interests (Cost $473,882,151)				647,433,272
Money Market Funds–1.74%
Liquid Assets Portfolio–Institutional Class(e)		5,815,331		5,815,331
Premier Portfolio–Institutional Class(e)		5,815,331		5,815,331
Total Money Market Funds (Cost $11,630,662)				11,630,662
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–98.86% (Cost $485,512,813)				659,063,934
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–4.22%
Liquid Assets Portfolio–Institutional Class (Cost $28,107,156)(e)(f)		28,107,156		28,107,156
TOTAL INVESTMENTS–103.08% (Cost $513,619,969)				687,171,090
OTHER ASSETS LESS LIABILITIES–(3.08)%				(20,563,014	)
NET ASSETS–100.00%			$	666,608,076

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)	All or a portion of this security was out on loan at December 31, 2010.
(e)	The money market fund and the Fund are affiliated by having the same investment adviser.
(f)	The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

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

11        Invesco Small Cap Equity Fund

Statement of Assets and Liabilities

December 31, 2010

Assets:
Investments, at value (Cost $473,882,151)*	$	647,433,272
Investments in affiliated money market funds, at value and cost		39,737,818
Total investments, at value (Cost $513,619,969)		687,171,090
Receivable for:
Investments sold		11,318,963
Fund shares sold		1,775,393
Dividends		464,606
Investment for trustee deferred compensation and retirement plans		56,569
Other assets		32,588
Total assets		700,819,209
Liabilities:
Payable for:
Investments purchased		842,625
Fund shares reacquired		4,584,792
Collateral upon return of securities loaned		28,107,156
Accrued fees to affiliates		463,046
Accrued other operating expenses		87,805
Trustee deferred compensation and retirement plans		125,709
Total liabilities		34,211,133
Net assets applicable to shares outstanding	$	666,608,076
Net assets consist of:
Shares of beneficial interest	$	544,121,769
Undistributed net investment income (loss)		(120,606	)
Undistributed net realized gain (loss)		(50,944,208	)
Unrealized appreciation		173,551,121
	$	666,608,076
Net Assets:
Class A	$	364,209,513
Class B	$	31,908,458
Class C	$	46,837,866
Class R	$	76,136,284
Class Y	$	25,875,124
Institutional Class	$	121,640,831
Shares outstanding, $0.01 par value per share, unlimited number of shares authorized:
Class A		29,752,703
Class B		2,863,728
Class C		4,205,305
Class R		6,378,064
Class Y		2,100,080
Institutional Class		9,568,993
Class A:
Net asset value per share	$	12.24
Maximum offering price per share (Net asset value of $12.24 divided by 94.50%)	$	12.95
Class B:
Net asset value and offering price per share	$	11.14
Class C:
Net asset value and offering price per share	$	11.14
Class R:
Net asset value and offering price per share	$	11.94
Class Y:
Net asset value and offering price per share	$	12.32
Institutional Class:
Net asset value and offering price per share	$	12.71

*  At December 31, 2010, securities with an aggregate value of $27,328,825 were on loan to brokers.

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

12        Invesco Small Cap Equity Fund

Statement of Operations

For the year ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $45,397)	$	4,862,303
Dividends from affiliated money market funds (includes securities lending income of $77,403)		90,851
Total investment income		4,953,154
Expenses:
Advisory fees		3,827,190
Administrative services fees		169,494
Custodian fees		19,230
Distribution fees:
Class A		752,288
Class B		346,101
Class C		413,646
Class R		311,532
Transfer agent fees — A, B, C, R and Y		1,429,828
Transfer agent fees — Institutional		47,758
Trustees’ and officers’ fees and benefits		29,465
Other		198,436
Total expenses		7,544,968
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(19,410	)
Net expenses		7,525,558
Net investment income (loss)		(2,572,404	)
Net realized gain from investment securities		10,050,440
Change in net unrealized appreciation of investment securities		135,750,121
Net realized and unrealized gain		145,800,561
Net increase in net assets resulting from operations	$	143,228,157

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

13        Invesco Small Cap Equity Fund

Statement of Changes in Net Assets

For the years ended December 31, 2010 and 2009

	2010			2009
Operations:
Net investment income (loss)	$	(2,572,404	)	$	(2,063,774	)
Net realized gain (loss)		10,050,440			(33,735,518	)
Change in net unrealized appreciation		135,750,121			112,307,706
Net increase in net assets resulting from operations		143,228,157			76,508,414
Share transactions–net:
Class A		11,775,442			(39,847	)
Class B		(17,415,559	)		(15,759,627	)
Class C		(4,057,434	)		(2,262,893	)
Class R		5,128,668			21,956,253
Class Y		9,298,963			6,638,350
Institutional Class		57,624,819			8,039,870
Net increase in net assets resulting from share transactions		62,354,899			18,572,106
Net increase in net assets		205,583,056			95,080,520
Net assets:
Beginning of year		461,025,020			365,944,500
End of year (includes undistributed net investment income (loss) of $(120,606) and $(117,297), respectively)	$	666,608,076		$	461,025,020

Notes to Financial Statements

December 31, 2010

NOTE 1—Significant Accounting Policies

Invesco Small Cap Equity Fund (the “Fund”) is a series portfolio of AIM Funds Group (Invesco 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 C shares are sold with a CDSC. Class R, Class Y and Institutional Class shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase.

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

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

14        Invesco Small Cap Equity Fund

	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 (net of withholding tax, if any) is recorded on the ex-dividend date.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
	The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — Distributions from income and net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
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

15        Invesco Small Cap Equity Fund

	fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	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, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C, Class R, Class Y and Institutional Class shares to 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 and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of the Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on April 30, 2012. 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 year ended December 31, 2010, the Adviser waived advisory fees of $14,979.

16        Invesco Small Cap Equity Fund

  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 year ended December 31, 2010, Invesco Ltd. reimbursed expenses of the Fund in the amount of $1,203.

  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 year ended December 31, 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 year ended December 31, 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 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 year ended December 31, 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 year ended December 31, 2010, IDI advised the Fund that IDI retained $40,845 in front-end sales commissions from the sale of Class A shares and $3, $35,407, and $3,018 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

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 December 31, 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 year ended December 31, 2010, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Equity Securities	$	687,171,090	$	—	$	—	$	687,171,090

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 year ended December 31, 2010, the Fund engaged in securities purchases of $2,210,363 and securities sales of $0, which resulted in net realized gains (losses) of $0.

17        Invesco Small Cap Equity Fund

NOTE 5—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 year ended December 31, 2010, the Fund received credits from these arrangements, which resulted in the reduction of the Fund’s total expenses of $3,228.

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 year ended December 31, 2010, the Fund paid legal fees of $3,683 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—Distributions to Shareholders and Tax Components of Net Assets

There were no ordinary or long-term capital gain distributions paid during the years ended December 31, 2010 and 2009.

Tax Components of Net Assets at Period-End:

	2010
Net unrealized appreciation — investments	$	171,899,365
Temporary book/tax differences		(120,606	)
Capital loss carryforward		(49,292,452	)
Shares of beneficial interest		544,121,769
Total net assets	$	666,608,076

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

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

  The Fund utilized $7,455,911 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of December 31, 2010 which expires as follows:

	Capital Loss
Expiration	Carryforward*
December 31, 2016	$	4,064,773
December 31, 2017		45,227,679
Total capital loss carryforward	$	49,292,452

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

18        Invesco Small Cap Equity Fund

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended December 31, 2010 was $230,503,589 and $183,713,791, 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	$	176,204,823
Aggregate unrealized (depreciation) of investment securities		(4,305,458	)
Net unrealized appreciation of investment securities	$	171,899,365
Cost of investments for tax purposes is $515,271,725.

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of foreign currency transactions and net operating losses, on December 31, 2010, undistributed net investment income (loss) was increased by $2,569,095, undistributed net realized gain (loss) was decreased by $2 and shares of beneficial interest decreased by $2,569,093. This reclassification had no effect on the net assets of the Fund.

NOTE 11—Share Information

	Summary of Share Activity
	Years ended December 31,
	2010(a)						2009
	Shares			Amount			Shares			Amount
Sold:
Class A		8,015,615		$	84,518,116			10,516,085		$	84,180,627
Class B		449,091			4,322,050			424,027			3,093,656
Class C		947,168			8,971,288			1,216,922			9,086,035
Class R		2,498,360			25,499,574			4,498,423			35,597,879
Class Y		1,280,430			13,792,688			3,722,554			29,567,670
Institutional Class		7,947,286			83,435,944			3,015,379			25,600,533
Automatic conversion of Class B shares to Class A shares:
Class A		1,244,059			12,966,027			1,118,101			8,882,239
Class B		(1,361,391	)		(12,966,027	)		(1,214,236	)		(8,882,239	)
Reacquired:
Class A		(8,271,486	)		(85,708,701	)		(11,689,879	)		(93,102,713	)
Class B		(932,530	)		(8,771,582	)		(1,376,744	)		(9,971,044	)
Class C		(1,380,569	)		(13,028,722	)		(1,573,176	)		(11,348,928	)
Class R		(2,010,282	)		(20,370,906	)		(1,690,444	)		(13,641,626	)
Class Y		(431,601	)		(4,493,725	)		(2,917,925	)		(22,929,320	)
Institutional Class		(2,340,969	)		(25,811,125	)		(2,003,335	)		(17,560,663	)
Net increase in share activity		5,653,181		$	62,354,899			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 17% 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. In addition, 9% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are mutual funds that are advised by Invesco.

19        Invesco Small Cap Equity Fund

NOTE 12—Financial Highlights

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

																						Ratio of			Ratio of
						Net gains																expenses			expenses
						(losses)																to average			to average net			Ratio of net
	Net asset		Net			on securities																net assets			assets without			investment
	value,		investment			(both			Total from			Distributions			Net asset					Net assets,		with fee waivers			fee waivers			income (loss)
	beginning		income			realized and			investment			from net			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		(loss)(a)			unrealized)			operations			realized gains			of period		return(b)			(000s omitted)		absorbed			absorbed			net assets			turnover(c)
Class A
Year ended 12/31/10	$	9.52	$	(0.04	)	$	2.76		$	2.72		$	—		$	12.24		28.57	%	$	364,210		1.38	%(d)		1.38	%(d)		(0.41	)%(d)		36	%
Year ended 12/31/09		7.91		(0.03	)		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	)		(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	)		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	)		2.16			2.09			(2.11	)		12.24		16.83			245,868		1.49			1.60			(0.55	)		56
Class B
Year ended 12/31/10		8.73		(0.11	)		2.52			2.41			—			11.14		27.61			31,908		2.13	(d)		2.13	(d)		(1.16	)(d)		36
Year ended 12/31/09		7.30		(0.09	)		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	)		(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	)		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	)		2.07			1.90			(2.11	)		11.56		15.90			126,111		2.24			2.35			(1.30	)		56
Class C
Year ended 12/31/10		8.72		(0.11	)		2.53			2.42			—			11.14		27.75			46,838		2.13	(d)		2.13	(d)		(1.16	)(d)		36
Year ended 12/31/09		7.30		(0.09	)		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	)		(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	)		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	)		2.08			1.91			(2.11	)		11.56		16.00			57,221		2.24			2.35			(1.30	)		56
Class R
Year ended 12/31/10		9.30		(0.07	)		2.71			2.64			—			11.94		28.39			76,136		1.63	(d)		1.63	(d)		(0.66	)(d)		36
Year ended 12/31/09		7.75		(0.05	)		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	)		(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	)		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	)		2.14			2.03			(2.11	)		12.07		16.47			27,946		1.74			1.85			(0.80	)		56
Class Y
Year ended 12/31/10		9.56		(0.02	)		2.78			2.76			—			12.32		28.87			25,875		1.13	(d)		1.13	(d)		(0.16	)(d)		36
Year ended 12/31/09		7.91		(0.01	)		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
Year ended 12/31/10		9.83		0.01			2.87			2.88			—			12.71		29.30			121,641		0.89	(d)		0.89	(d)		0.08	(d)		36
Year ended 12/31/09		8.12		0.02			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			(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			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			2.17			2.18			(2.11	)		12.40		17.45			17,122		0.90			1.01			0.04			56

(a)	Calculated using average shares outstanding.
(b)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(c)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ending 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 holdings after the reorganization of AIM Opportunities I Fund into the Fund.
(d)	Ratios are based on average daily net assets (000’s) of $300,915, $34,610, $41,365, $62,306, $14,772 and $65,569 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.

20        Invesco Small Cap Equity Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Funds Group (Invesco Funds Group)

and Shareholders of Invesco Small Cap Equity Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Small Cap Equity Fund (formerly known as AIM Small Cap Equity Fund; one of the funds constituting AIM Funds Group (Invesco Funds Group), hereafter referred to as the “Fund”) at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

February 22, 2011

Houston, Texas

21        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 July 1, 2010 through December 31, 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	(07/01/10)		(12/31/10)1		Period2		(12/31/10)		Period2		Ratio
A	$	1,000.00	$	1,296.60	$	7.93	$	1,018.30	$	6.97		1.37	%
B		1,000.00		1,292.30		12.25		1,014.52		10.76		2.12
C		1,000.00		1,292.30		12.25		1,014.52		10.76		2.12
R		1,000.00		1,295.00		9.37		1,017.04		8.24		1.62
Y		1,000.00		1,298.20		6.49		1,019.56		5.70		1.12
Institutional		1,000.00		1,299.60		5.16		1,020.72		4.53		0.89

1	The actual ending account value is based on the actual total return of the Fund for the period July 1, 2010 through December 31, 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 184/365 to reflect the most recent fiscal half year.

22        Invesco Small Cap Equity Fund

Trustees and Officers

The address of each trustee and officer is AIM Funds Groups (Invesco Funds Group) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1987	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by		Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee		Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie		208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208		Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208		Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208		None
Lewis F. Pennock — 1942 Trustee	1992	Partner, law firm of Pennock & Cooper	208		None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208		None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226		Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208		None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1992	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Counsel to the Fund
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103

Investment Adviser
Invesco Advisers, Inc.
1555 Peachtree Street, N.E.
Atlanta, GA 30309

Counsel to the Independent Trustees
Kramer, Levin, Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036-2714

Distributor
Invesco Distributors, Inc.
11 Greenway Plaza, Suite 2500
Houston, TX 77046-1173

Transfer Agent
Invesco Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739

Auditors
PricewaterhouseCoopers LLP
1201 Louisiana Street, Suite 2900
Houston, TX 77002-5678

Custodian
State Street Bank and Trust Company
225 Franklin
Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco, P.O. Box 4739, Houston, TX 77210-4739.

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.

     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-AR-1 Invesco Distributors, Inc.

ITEM 2. CODE OF ETHICS.

As of the end of the period covered by this report, the Registrant had adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer (“PEO”) and principal financial officer (“PFO”). The Code was amended in June, 2010, to (i) add an individual to Exhibit A and (ii) update the names of certain legal entities. 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.

The Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit Committee. The Audit Committee financial expert is Raymond Stickel, Jr. Mr. Stickel is “independent” within the meaning of that term as used in Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Fees Billed by PWC Related to the Registrant

     PWC billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as follows:

			Percentage of Fees					Percentage of Fees
			Billed Applicable to					Billed Applicable to
			Non-Audit Services					Non-Audit Services
			Provided for fiscal					Provided for fiscal
	Fees Billed for		year end 2010			Fees Billed for		year end 2009
	Services Rendered		Pursuant to Waiver of			Services Rendered to		Pursuant to Waiver of
	to the Registrant for		Pre-Approval			the Registrant for		Pre-Approval
	fiscal year end 2010		Requirement(1)			fiscal year end 2009		Requirement(1)
Audit Fees	$	218,800		N/A		$	253,157		N/A
Audit-Related Fees	$	0		0	%	$	0		0	%
Tax Fees(2)	$	44,800		0	%	$	53,926		0	%
All Other Fees	$	0		0	%	$	0		0	%
Total Fees	$	263,600		0	%	$	307,083		0	%

PWC billed the Registrant aggregate non-audit fees of $44,800 for the fiscal year ended 2010, and $53,926 for the fiscal year ended 2009, for non-audit services rendered to the Registrant.

(1)

With respect to the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant to PWC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.

(2)

Tax fees for the fiscal year end December 31, 2010 includes fees billed for reviewing tax returns. Tax fees for fiscal year end December 31, 2009 includes fees billed for reviewing tax returns and consultation services.

Fees Billed by PWC Related to Invesco and Invesco Affiliates

     PWC billed Invesco Advisers, Inc. (“Invesco”), the Registrant’s adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to the Registrant (“Invesco Affiliates”) aggregate fees for pre-approved non-audit services rendered to Invesco and Invesco Affiliates for the last two fiscal years as follows:

						Fees Billed for Non-
	Fees Billed for Non-					Audit Services
	Audit Services					Rendered to Invesco
	Rendered to Invesco		Percentage of Fees			and Invesco		Percentage of Fees
	and Invesco Affiliates		Billed Applicable to			Affiliates		Billed Applicable to
	for fiscal year end		Non-Audit Services			for fiscal year end		Non-Audit Services
	2010 That Were		Provided for fiscal year			2009 That Were		Provided for fiscal year
	Required		end 2010 Pursuant to			Required		end 2009 Pursuant to
	to be Pre-Approved		Waiver of Pre-			to be Pre-Approved		Waiver of Pre-
	by the Registrant’s		Approval			by the Registrant’s		Approval
	Audit Committee		Requirement(1)			Audit Committee		Requirement(1)
Audit-Related Fees	$	0		0	%	$	0		0	%
Tax Fees	$	0		0	%	$	0		0	%
All Other Fees	$	0		0	%	$	0		0	%
Total Fees(2)	$	0		0	%	$	0		0	%

(1)

With respect to the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant, Invesco and Invesco Affiliates to PWC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.

(2)

Including the fees for services not required to be pre-approved by the registrant’s audit committee, PWC billed Invesco and Invesco Affiliates aggregate non-audit fees of $0 for the fiscal year ended 2010, and $0 for the fiscal year ended 2009, for non-audit services rendered to Invesco and Invesco Affiliates.

The Audit Committee also has considered whether the provision of non-audit services that were rendered to Invesco and Invesco Affiliates that were not required to be pre-approved pursuant to SEC regulations, if any, is compatible with maintaining PWC’s independence.

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees of
the Invesco Funds (the “Funds”)
Last Amended May 4, 2010

Statement of Principles

Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”), the Audit Committees of the Funds’ (the “Audit Committees”) Board of Trustees (the “Board”) are responsible for the appointment, compensation and oversight of the work of independent accountants (an “Auditor”). As part of this responsibility and to assure that the Auditor’s independence is not impaired, the Audit Committees pre-approve the audit and non-audit services provided to the Funds by each Auditor, as well as all non-audit services provided by the Auditor to the Funds’ investment adviser and to affiliates of the adviser that provide ongoing services to the Funds (“Service Affiliates”) if the services directly impact the Funds’ operations or financial reporting. The SEC Rules also specify the types of services that an Auditor may not provide to its audit client. The following policies and procedures comply with the requirements for pre-approval and provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.

Proposed services either may be pre-approved without consideration of specific case-by-case services by the Audit Committees (“general pre-approval”) or require the specific pre-approval of the Audit Committees (“specific pre-approval”). As set forth in these policies and procedures, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committees. Additionally, any fees exceeding 110% of estimated pre-approved fee levels provided at the time the service was pre-approved will also require specific approval by the Audit Committees before payment is made. The Audit Committees will also consider the impact of additional fees on the Auditor’s independence when determining whether to approve any additional fees for previously pre-approved services.

The Audit Committees will annually review and generally pre-approve the services that may be provided by each Auditor without obtaining specific pre-approval from the Audit Committee generally on an annual basis. The term of any general pre-approval runs from the date of such pre-approval through September 30^th of the following year, unless the Audit Committees consider a different period and state otherwise. The Audit Committees will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.

The purpose of these policies and procedures is to set forth the guidelines to assist the Audit Committees in fulfilling their responsibilities.

Delegation

The Audit Committees may from time to time delegate pre-approval authority to one or more of its members who are Independent Trustees. All decisions to pre-approve a service by a delegated member shall be reported to the Audit Committees at the next quarterly meeting.

Audit Services

The annual audit services engagement terms will be subject to specific pre-approval of the Audit Committees. Audit services include the annual financial statement audit and other procedures such as tax provision work that is required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committees will obtain, review and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation of the Auditor’s qualifications and independence.

In addition to the annual Audit services engagement, the Audit Committees may grant either general or specific pre-approval of other audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services such as issuing consents for the

inclusion of audited financial statements with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

Non-Audit Services

The Audit Committees may provide either general or specific pre-approval of any non-audit services to the Funds and its Service Affiliates if the Audit Committees believe that the provision of the service will not impair the independence of the Auditor, is consistent with the SEC’s Rules on auditor independence, and otherwise conforms to the Audit Committees’ general principles and policies as set forth herein.

Audit-Related Services

“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements or that are traditionally performed by the independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; and agreed-upon procedures related to mergers, compliance with ratings agency requirements and interfund lending activities.

Tax Services

“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committees will scrutinize carefully the retention of the Auditor in connection with a transaction initially recommended by the Auditor, the major business purpose of which may be tax avoidance or the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committees will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax services rendered by the Auditor with the foregoing policy.

No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.

Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in connection with seeking Audit Committees’ pre-approval of permissible Tax services, the Auditor shall:

1. Describe in writing to the Audit Committees, which writing may be in the form of the proposed engagement letter:

a.	The scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the Fund, relating to the service; and
b.	Any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor and any person (other than the Fund) with respect to the promoting, marketing, or recommending of a transaction covered by the service;

2.	Discuss with the Audit Committees the potential effects of the services on the independence of the Auditor; and
3.	Document the substance of its discussion with the Audit Committees.

All Other Auditor Services

The Audit Committees may pre-approve non-audit services classified as “All other services” that are not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.

Pre-Approval Fee Levels or Established Amounts

Pre-approval of estimated fees or established amounts for services to be provided by the Auditor under general or specific pre-approval policies will be set periodically by the Audit Committees. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or established amounts for pre-approved audit and non-audit services will be reported to the Audit Committees at the quarterly Audit Committees meeting and will require specific approval by the Audit Committees before payment is made. The Audit Committees will always factor in the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximum pre-approved fees or established amounts for previously pre-approved services.

Procedures

Generally on an annual basis, Invesco Advisers, Inc. (“Invesco”) will submit to the Audit Committees for general pre-approval, a list of non-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe the non-audit services in reasonable detail and will include an estimated range of fees and such other information as the Audit Committee may request.

Each request for services to be provided by the Auditor under the general pre-approval of the Audit Committees will be submitted to the Funds’ Treasurer (or his or her designee) and must include a detailed description of the services to be rendered. The Treasurer or his or her designee will ensure that such services are included within the list of services that have received the general pre-approval of the Audit Committees. The Audit Committees will be informed at the next quarterly scheduled Audit Committees meeting of any such services for which the Auditor rendered an invoice and whether such services and fees had been pre-approved and if so, by what means.

Each request to provide services that require specific approval by the Audit Committees shall be submitted to the Audit Committees jointly by the Fund’s Treasurer or his or her designee and the Auditor, and must include a joint statement that, in their view, such request is consistent with the policies and procedures and the SEC Rules.

Each request to provide tax services under either the general or specific pre-approval of the Audit Committees will describe in writing: (i) the scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the audit client, relating to the service; and (ii) any compensation arrangement or other agreement between the Auditor and any person (other than the audit client) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will discuss with the Audit Committees the potential effects of the services on the Auditor’s independence and will document the substance of the discussion.

Non-audit services pursuant to the de minimis exception provided by the SEC Rules will be promptly brought to the attention of the Audit Committees for approval, including documentation that each of the conditions for this exception, as set forth in the SEC Rules, has been satisfied.

On at least an annual basis, the Auditor will prepare a summary of all the services provided to any entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of the engagement and the fees associated with those services.

The Audit Committees have designated the Funds’ Treasurer to monitor the performance of all services provided by the Auditor and to ensure such services are in compliance with these policies and procedures. The Funds’ Treasurer will report to the Audit Committees on a periodic basis as to the results of such monitoring. Both the Funds’ Treasurer and management of Invesco will immediately report to the chairman of the Audit Committees any breach of these policies and procedures that comes to the attention of the Funds’ Treasurer or senior management of Invesco.

Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures

Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably conclude that the results of the service would not be subject to audit procedures in connection with the audit of the Fund’s financial statements)

• Bookkeeping or other services related to the accounting records or financial statements of the audit client

• Financial information systems design and implementation

• Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

• Actuarial services

• Internal audit outsourcing services

Categorically Prohibited Non-Audit Services

• Management functions

• Human resources

• Broker-dealer, investment adviser, or investment banking services

• Legal services

• Expert services unrelated to the audit

• Any service or product provided for a contingent fee or a commission

• Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance

• Tax services for persons in financial reporting oversight roles at the Fund

• Any other service that the Public Company Oversight Board determines by regulation is impermissible.

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 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 December 14, 2010, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of December 14, 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 this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

12(a) (1)	Code of Ethics.
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. TAYLOR
	Philip A. Taylor
	Principal Executive Officer

Date: March 11, 2011

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ PHILIP A. TAYLOR
	Philip A. Taylor
	Principal Executive Officer

Date: March 11, 2011

By:	/s/ Sheri Morris
	Sheri Morris
	Principal Financial Officer

Date: March 11, 2011

EXHIBIT INDEX

12(a) (1)	Code of Ethics.
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.