UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-03826
AIM Sector Funds (Invesco Sector Funds)
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Address of principal executive offices) (Zip code)
Sheri Morris 11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Name and address of agent for service)
Registrant’s telephone number, including area code: (713)626-1919
Date of fiscal year end: 04/30
Date of reporting period: 04/30/19
Item 1. Report to Stockholders.
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco American Value Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco American Value Fund |
Class A Shares | –0.03% |
Class C Shares | –0.77 |
Class R Shares | –0.28 |
Class Y Shares | 0.21 |
Class R5 Shares | 0.27 |
Class R6 Shares | 0.37 |
S&P 500 Index▼ (Broad Market Index) | 13.49 |
Russell Midcap Value Index■ (Style-Specific Index) | 5.76 |
Lipper Mid-Cap Value Funds Index♦ (Peer Group Index) | 1.69 |
Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
Portfolio Composition | |
By sector | % of total net assets |
Financials | 25.54% |
Industrials | 11.85 |
Consumer Discretionary | 11.35 |
Information Technology | 10.42 |
Health Care | 9.72 |
Energy | 8.20 |
Real Estate | 6.40 |
Materials | 6.06 |
Utilities | 4.15 |
Consumer Staples | 2.85 |
Communication Services | 1.56 |
Money Market Funds Plus Other Assets Less Liabilities | 1.90 |
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | Royal Caribbean Cruises Ltd. | 3.37% |
2. | Centene Corp. | 2.87 |
3. | Willis Towers Watson PLC | 2.85 |
4. | Arthur J. Gallagher & Co. | 2.80 |
5. | Zions Bancorp. N.A. | 2.78 |
6. | Johnson Controls International PLC | 2.64 |
7. | FirstEnergy Corp. | 2.58 |
8. | Encompass Health Corp. | 2.56 |
9. | Teradata Corp. | 2.53 |
10. | Voya Financial, Inc. | 2.53 |
Total Net Assets | $1.2 billion |
Total Number of Holdings* | 46 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco American Value Fund |
5 | Invesco American Value Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: RIMES Technologies Corp. |
3 | Source: Lipper Inc. |
6 | Invesco American Value Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (10/18/93) | 8.93% |
10 Years | 12.28 |
5 Years | 4.03 |
1 Year | –5.53 |
Class C Shares | |
Inception (10/18/93) | 8.87% |
10 Years | 12.09 |
5 Years | 4.45 |
1 Year | –1.63 |
Class R Shares | |
Inception (3/20/07) | 6.37% |
10 Years | 12.63 |
5 Years | 4.95 |
1 Year | –0.28 |
Class Y Shares | |
Inception (2/7/06) | 7.78% |
10 Years | 13.19 |
5 Years | 5.47 |
1 Year | 0.21 |
Class R5 Shares | |
10 Years | 13.29% |
5 Years | 5.58 |
1 Year | 0.27 |
Class R6 Shares | |
10 Years | 13.24% |
5 Years | 5.67 |
1 Year | 0.37 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (10/18/93) | 8.77% |
10 Years | 13.32 |
5 Years | 2.89 |
1 Year | –7.58 |
Class C Shares | |
Inception (10/18/93) | 8.71% |
10 Years | 13.13 |
5 Years | 3.30 |
1 Year | –3.74 |
Class R Shares | |
Inception (3/20/07) | 6.03% |
10 Years | 13.68 |
5 Years | 3.80 |
1 Year | –2.42 |
Class Y Shares | |
Inception (2/7/06) | 7.46% |
10 Years | 14.24 |
5 Years | 4.31 |
1 Year | –1.95 |
Class R5 Shares | |
10 Years | 14.34% |
5 Years | 4.43 |
1 Year | –1.86 |
Class R6 Shares | |
10 Years | 14.29% |
5 Years | 4.52 |
1 Year | –1.77 |
7 | Invesco American Value Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class R sharesare generally available only to employer sponsored retirement and benefit plans. Please see the prospectus for more information. |
■ | Class Y shares are available only to certain investors. Please see the prospectus for more information. |
■ | Class R5 shares andClass R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Depositary receipts risk. Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer. |
■ | Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or |
otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. | |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, for- |
eign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. | |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | REIT risk/real estate risk. Investments in real estate related instruments may be affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies of real estate related to the Fund’s holdings. Shares of real estate related companies, |
8 | Invesco American Value Fund |
which tend to be small- and mid-cap companies, may be more volatile and less liquid. |
■ | Sector focus risk. The Fund may from time to time invest a significant amount of its assets (i.e. over 25%) in one market sector or group of related industries. In this event, the Fund’s performance will depend to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries. |
■ | Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | Value investing style risk. A value investing style subjects the Fund to the risk that the valuations never improve or that the returns on value equity securities are less than returns on other styles of investing or the overall stock market. |
■ | The S&P 500® Index is an unmanaged index considered representative of the US stock market. |
■ | TheRussell 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. |
■ | TheLipper Mid-Cap Value Funds Index is an unmanaged index considered representative of mid-cap value funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco American Value Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–98.10% | |||
Aerospace & Defense–2.23% | |||
Textron, Inc. | 492,408 | $26,097,624 | |
Apparel, Accessories & Luxury Goods–2.05% | |||
Tapestry, Inc. | 746,484 | 24,089,039 | |
Automotive Retail–1.40% | |||
Advance Auto Parts, Inc. | 98,679 | 16,412,291 | |
Biotechnology–1.02% | |||
Myriad Genetics, Inc.(b) | 380,551 | 11,979,746 | |
Building Products–2.64% | |||
Johnson Controls International PLC | 826,991 | 31,012,163 | |
Communications Equipment–1.46% | |||
Ciena Corp.(b) | 445,495 | 17,089,188 | |
Consumer Finance–1.90% | |||
Santander Consumer USA Holdings, Inc. | 1,043,934 | 22,287,991 | |
Copper–1.75% | |||
Freeport-McMoRan, Inc. | 1,664,353 | 20,488,185 | |
Distributors–2.18% | |||
LKQ Corp.(b) | 847,555 | 25,511,406 | |
Diversified Chemicals–1.98% | |||
Eastman Chemical Co. | 294,348 | 23,218,170 | |
Diversified REITs–2.46% | |||
Liberty Property Trust | 582,205 | 28,900,656 | |
Electric Utilities–4.15% | |||
Evergy, Inc. | 317,800 | 18,375,196 | |
FirstEnergy Corp. | 719,798 | 30,253,110 | |
48,628,306 | |||
Electronic Equipment & Instruments–2.42% | |||
Keysight Technologies, Inc.(b) | 325,643 | 28,340,710 | |
Food Distributors–0.88% | |||
Performance Food Group Co.(b) | 251,728 | 10,308,262 | |
Food Retail–1.97% | |||
Kroger Co. (The) | 895,627 | 23,089,264 | |
Health Care Facilities–2.56% | |||
Encompass Health Corp. | 465,658 | 30,011,658 | |
Health Care Services–2.13% | |||
DaVita, Inc.(b) | 451,210 | 24,924,840 | |
Hotels, Resorts & Cruise Lines–5.71% | |||
Norwegian Cruise Line Holdings Ltd.(b) | 486,165 | 27,414,845 |
Shares | Value | ||
Hotels, Resorts & Cruise Lines–(continued) | |||
Royal Caribbean Cruises Ltd. | 327,247 | $39,577,252 | |
66,992,097 | |||
Industrial Machinery–2.24% | |||
Kennametal, Inc. | 644,056 | 26,213,079 | |
Insurance Brokers–5.65% | |||
Arthur J. Gallagher & Co. | 391,817 | 32,763,738 | |
Willis Towers Watson PLC | 181,427 | 33,444,253 | |
66,207,991 | |||
Interactive Home Entertainment–1.56% | |||
Take-Two Interactive Software, Inc.(b) | 188,726 | 18,274,339 | |
Investment Banking & Brokerage–2.12% | |||
Stifel Financial Corp. | 417,540 | 24,914,612 | |
IT Consulting & Other Services–1.95% | |||
DXC Technology Co. | 347,524 | 22,846,228 | |
Life & Health Insurance–2.01% | |||
Athene Holding Ltd., Class A(b) | 523,059 | 23,621,344 | |
Managed Health Care–2.87% | |||
Centene Corp.(b) | 652,284 | 33,631,763 | |
Marine–2.32% | |||
Kirby Corp.(b) | 332,312 | 27,156,537 | |
Office REITs–2.32% | |||
Hudson Pacific Properties, Inc. | 781,687 | 27,249,609 | |
Oil & Gas Equipment & Services–1.90% | |||
TechnipFMC PLC (United Kingdom) | 903,894 | 22,226,753 | |
Oil & Gas Exploration & Production–6.31% | |||
Devon Energy Corp. | 744,760 | 23,936,586 | |
Marathon Oil Corp. | 1,397,099 | 23,806,567 | |
Noble Energy, Inc. | 967,400 | 26,177,844 | |
73,920,997 | |||
Other Diversified Financial Services–2.53% | |||
Voya Financial, Inc. | 539,388 | 29,607,007 | |
Pharmaceuticals–1.14% | |||
Mylan N.V.(b) | 497,456 | 13,426,337 | |
Regional Banks–11.33% | |||
Chemical Financial Corp. | 530,350 | 23,298,275 | |
Comerica, Inc. | 342,365 | 26,906,465 | |
KeyCorp | 1,497,376 | 26,278,949 | |
Wintrust Financial Corp. | 311,499 | 23,736,224 | |
Zions Bancorp. N.A. | 660,348 | 32,574,967 | |
132,794,880 |
10 | Invesco American Value Fund |
Shares | Value | ||
Semiconductor Equipment–2.07% | |||
KLA-Tencor Corp. | 190,156 | $24,241,087 | |
Specialized REITs–1.61% | |||
Life Storage, Inc. | 198,194 | 18,885,906 | |
Specialty Chemicals–2.33% | |||
W.R. Grace & Co. | 361,607 | 27,330,257 | |
Systems Software–2.53% | |||
Teradata Corp.(b) | 653,034 | 29,693,456 | |
Trucking–2.42% | |||
Knight-Swift Transportation Holdings, Inc. | 851,508 | 28,397,792 | |
Total Common Stocks & Other Equity Interests (Cost $961,004,994) | 1,150,021,570 |
Shares | Value | ||
Money Market Funds–2.15% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(c) | 8,828,959 | $8,828,959 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(c) | 6,304,722 | 6,306,613 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(c) | 10,090,239 | 10,090,239 | |
Total Money Market Funds (Cost $25,224,319) | 25,225,811 | ||
TOTAL INVESTMENTS IN SECURITIES–100.25% (Cost $986,229,313) | 1,175,247,381 | ||
OTHER ASSETS LESS LIABILITIES–(0.25)% | (2,947,351) | ||
NET ASSETS–100.00% | $1,172,300,030 |
REIT | – Real Estate Investment Trust |
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
11 | Invesco American Value Fund |
Assets: | |
Investments in securities, at value (Cost $961,004,994) | $1,150,021,570 |
Investments in affiliated money market funds, at value (Cost $25,224,319) | 25,225,811 |
Receivable for: | |
Investments sold | 2,839,493 |
Fund shares sold | 361,025 |
Dividends | 139,265 |
Investment for trustee deferred compensation and retirement plans | 184,992 |
Other assets | 50,861 |
Total assets | 1,178,823,017 |
Liabilities: | |
Payable for: | |
Investments purchased | 2,642,656 |
Fund shares reacquired | 2,145,504 |
Amount due custodian | 687,988 |
Accrued fees to affiliates | 652,262 |
Accrued trustees’ and officers’ fees and benefits | 2,783 |
Accrued other operating expenses | 188,157 |
Trustee deferred compensation and retirement plans | 203,637 |
Total liabilities | 6,522,987 |
Net assets applicable to shares outstanding | $1,172,300,030 |
Net assets consist of: | |
Shares of beneficial interest | $969,816,513 |
Distributable earnings | 202,483,517 |
$1,172,300,030 | |
Net Assets: | |
Class A | $871,219,903 |
Class C | $29,562,370 |
Class R | $19,979,389 |
Class Y | $155,238,209 |
Class R5 | $27,732,324 |
Class R6 | $68,567,835 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 25,612,118 |
Class C | 1,088,673 |
Class R | 590,080 |
Class Y | 4,528,674 |
Class R5 | 808,554 |
Class R6 | 1,998,724 |
Class A: | |
Net asset value per share | $34.02 |
Maximum offering price per share (Net asset value of $34.02 ÷ 94.50%) | $36.00 |
Class C: | |
Net asset value and offering price per share | $27.15 |
Class R: | |
Net asset value and offering price per share | $33.86 |
Class Y: | |
Net asset value and offering price per share | $34.28 |
Class R5: | |
Net asset value and offering price per share | $34.30 |
Class R6: | |
Net asset value and offering price per share | $34.31 |
12 | Invesco American Value Fund |
Investment income: | |
Dividends | $19,236,170 |
Dividends from affiliated money market funds | 573,922 |
Total investment income | 19,810,092 |
Expenses: | |
Advisory fees | 8,941,847 |
Administrative services fees | 275,307 |
Custodian fees | 20,773 |
Distribution fees: | |
Class A | 2,204,864 |
Class C | 610,013 |
Class R | 108,706 |
Transfer agent fees — A, C, R and Y | 2,070,775 |
Transfer agent fees — R5 | 35,697 |
Transfer agent fees — R6 | 19,039 |
Trustees’ and officers’ fees and benefits | 40,439 |
Registration and filing fees | 115,069 |
Reports to shareholders | 173,782 |
Professional services fees | 61,630 |
Other | 35,146 |
Total expenses | 14,713,087 |
Less: Fees waived and expense offset arrangement(s) | (40,221) |
Net expenses | 14,672,866 |
Net investment income | 5,137,226 |
Realized and unrealized gain (loss) from: | |
Net realized gain from Investment securities | 71,007,064 |
Change in net unrealized appreciation (depreciation) of Investment securities | (80,784,485) |
Net realized and unrealized gain (loss) | (9,777,421) |
Net increase (decrease) in net assets resulting from operations | $(4,640,195) |
13 | Invesco American Value Fund |
2019 | 2018 | |
Operations: | ||
Net investment income | $5,137,226 | $3,779,013 |
Net realized gain | 71,007,064 | 187,950,224 |
Change in net unrealized appreciation (depreciation) | (80,784,485) | (14,421,138) |
Net increase (decrease) in net assets resulting from operations | (4,640,195) | 177,308,099 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (89,083,319) | (104,909,344) |
Class B | — | (570,656) |
Class C | (8,383,288) | (10,422,833) |
Class R | (2,150,588) | (3,682,670) |
Class Y | (18,637,935) | (28,848,115) |
Class R5 | (3,019,574) | (7,376,840) |
Class R6 | (7,656,836) | (15,811,346) |
Total distributions to shareholders from distributable earnings | (128,931,540) | (171,621,804) |
Share transactions–net: | ||
Class A | 23,943,978 | (97,132,259) |
Class B | — | (7,372,637) |
Class C | (40,803,017) | (14,413,588) |
Class R | (3,016,181) | (21,759,552) |
Class Y | (31,945,480) | (168,629,296) |
Class R5 | (32,686,919) | (24,514,856) |
Class R6 | (66,839,564) | (26,519,014) |
Net increase (decrease) in net assets resulting from share transactions | (151,347,183) | (360,341,202) |
Net increase (decrease) in net assets | (284,918,918) | (354,654,907) |
Net assets: | ||
Beginning of year | 1,457,218,948 | 1,811,873,855 |
End of year | $1,172,300,030 | $1,457,218,948 |
(1) | For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income and distributions from net realized gains. The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions from net investment income were $5,663,325, $30,806, $68,686, $2,267,084, $661,230 and $1,560,385 for Class A, Class B, Class R, Class Y, Class R5 and Class R6, respectively and distributions from net realized gains were $99,246,019, $539,850, $10,422,833, $3,613,984, $26,581,031, $6,715,610 and $14,250,961 for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
14 | Invesco American Value Fund |
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||||
Year ended 04/30/19 | $38.47 | $0.13 | $(0.69) | $(0.56) | $(0.14) | $(3.75) | $(3.89) | $34.02 | (0.03)% | $871,220 | 1.19%(d) | 1.19%(d) | 0.37%(d) | 38% |
Year ended 04/30/18 | 38.52 | 0.07 | 4.37 | 4.44 | (0.24) | (4.25) | (4.49) | 38.47 | 12.11 | 938,346 | 1.19 | 1.19 | 0.19 | 44 |
Year ended 04/30/17 | 34.01 | 0.20 | 4.70 | 4.90 | (0.08) | (0.31) | (0.39) | 38.52 | 14.40 | 1,031,600 | 1.21 | 1.21 | 0.53 | 42 |
Year ended 04/30/16 | 40.44 | 0.09 | (4.06) | (3.97) | (0.01) | (2.45) | (2.46) | 34.01 | (9.62) | 1,122,286 | 1.19 | 1.20 | 0.26 | 28 |
Year ended 04/30/15 | 40.11 | 0.00 | 4.23 | 4.23 | (0.02) | (3.88) | (3.90) | 40.44 | 11.27 | 1,242,480 | 1.19 | 1.20 | 0.01 | 34 |
Class C | ||||||||||||||
Year ended 04/30/19 | 31.66 | (0.11) | (0.65) | (0.76) | — | (3.75) | (3.75) | 27.15 | (0.77)(e) | 29,562 | 1.91(d)(e) | 1.91(d)(e) | (0.35)(d)(e) | 38 |
Year ended 04/30/18 | 32.44 | (0.17) | 3.64 | 3.47 | — | (4.25) | (4.25) | 31.66 | 11.30(e) | 82,217 | 1.92(e) | 1.92(e) | (0.54)(e) | 44 |
Year ended 04/30/17 | 28.83 | (0.06) | 3.98 | 3.92 | — | (0.31) | (0.31) | 32.44 | 13.59(e) | 98,096 | 1.94(e) | 1.94(e) | (0.20)(e) | 42 |
Year ended 04/30/16 | 34.95 | (0.15) | (3.52) | (3.67) | — | (2.45) | (2.45) | 28.83 | (10.28)(e) | 103,706 | 1.93(e) | 1.94(e) | (0.48)(e) | 28 |
Year ended 04/30/15 | 35.41 | (0.26) | 3.68 | 3.42 | — | (3.88) | (3.88) | 34.95 | 10.44(e) | 125,201 | 1.92(e) | 1.93(e) | (0.72)(e) | 34 |
Class R | ||||||||||||||
Year ended 04/30/19 | 38.24 | 0.04 | (0.67) | (0.63) | — | (3.75) | (3.75) | 33.86 | (0.28) | 19,979 | 1.44(d) | 1.44(d) | 0.12(d) | 38 |
Year ended 04/30/18 | 38.26 | (0.02) | 4.33 | 4.31 | (0.08) | (4.25) | (4.33) | 38.24 | 11.81 | 25,189 | 1.44 | 1.44 | (0.06) | 44 |
Year ended 04/30/17 | 33.80 | 0.10 | 4.67 | 4.77 | — | (0.31) | (0.31) | 38.26 | 14.11 | 46,937 | 1.46 | 1.46 | 0.28 | 42 |
Year ended 04/30/16 | 40.29 | 0.00 | (4.04) | (4.04) | — | (2.45) | (2.45) | 33.80 | (9.82) | 66,207 | 1.44 | 1.45 | 0.01 | 28 |
Year ended 04/30/15 | 40.06 | (0.10) | 4.21 | 4.11 | — | (3.88) | (3.88) | 40.29 | 10.97 | 76,594 | 1.44 | 1.45 | (0.24) | 34 |
Class Y | ||||||||||||||
Year ended 04/30/19 | 38.76 | 0.23 | (0.71) | (0.48) | (0.25) | (3.75) | (4.00) | 34.28 | 0.21 | 155,238 | 0.94(d) | 0.94(d) | 0.62(d) | 38 |
Year ended 04/30/18 | 38.80 | 0.17 | 4.40 | 4.57 | (0.36) | (4.25) | (4.61) | 38.76 | 12.38 | 208,223 | 0.94 | 0.94 | 0.44 | 44 |
Year ended 04/30/17 | 34.25 | 0.29 | 4.73 | 5.02 | (0.16) | (0.31) | (0.47) | 38.80 | 14.66 | 375,626 | 0.96 | 0.96 | 0.78 | 42 |
Year ended 04/30/16 | 40.62 | 0.18 | (4.07) | (3.89) | (0.03) | (2.45) | (2.48) | 34.25 | (9.36) | 452,703 | 0.94 | 0.95 | 0.51 | 28 |
Year ended 04/30/15 | 40.26 | 0.11 | 4.24 | 4.35 | (0.11) | (3.88) | (3.99) | 40.62 | 11.55 | 545,456 | 0.94 | 0.95 | 0.26 | 34 |
Class R5 | ||||||||||||||
Year ended 04/30/19 | 38.80 | 0.26 | (0.73) | (0.47) | (0.28) | (3.75) | (4.03) | 34.30 | 0.27 | 27,732 | 0.86(d) | 0.86(d) | 0.70(d) | 38 |
Year ended 04/30/18 | 38.84 | 0.20 | 4.43 | 4.63 | (0.42) | (4.25) | (4.67) | 38.80 | 12.53 | 62,354 | 0.86 | 0.86 | 0.52 | 44 |
Year ended 04/30/17 | 34.29 | 0.33 | 4.74 | 5.07 | (0.21) | (0.31) | (0.52) | 38.84 | 14.77 | 86,569 | 0.85 | 0.85 | 0.89 | 42 |
Year ended 04/30/16 | 40.63 | 0.22 | (4.07) | (3.85) | (0.04) | (2.45) | (2.49) | 34.29 | (9.26) | 128,357 | 0.82 | 0.83 | 0.63 | 28 |
Year ended 04/30/15 | 40.28 | 0.15 | 4.24 | 4.39 | (0.16) | (3.88) | (4.04) | 40.63 | 11.66 | 95,082 | 0.82 | 0.83 | 0.38 | 34 |
Class R6 | ||||||||||||||
Year ended 04/30/19 | 38.82 | 0.29 | (0.73) | (0.44) | (0.32) | (3.75) | (4.07) | 34.31 | 0.37 | 68,568 | 0.78(d) | 0.78(d) | 0.78(d) | 38 |
Year ended 04/30/18 | 38.88 | 0.24 | 4.42 | 4.66 | (0.47) | (4.25) | (4.72) | 38.82 | 12.59 | 140,889 | 0.77 | 0.77 | 0.61 | 44 |
Year ended 04/30/17 | 34.32 | 0.37 | 4.74 | 5.11 | (0.24) | (0.31) | (0.55) | 38.88 | 14.88 | 165,781 | 0.76 | 0.76 | 0.98 | 42 |
Year ended 04/30/16 | 40.64 | 0.25 | (4.07) | (3.82) | (0.05) | (2.45) | (2.50) | 34.32 | (9.19) | 143,003 | 0.73 | 0.74 | 0.72 | 28 |
Year ended 04/30/15 | 40.28 | 0.19 | 4.25 | 4.44 | (0.20) | (3.88) | (4.08) | 40.64 | 11.77 | 143,793 | 0.73 | 0.74 | 0.47 | 34 |
(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 omitted) of $881,946, $62,601, $21,741, $181,438, $35,672 and $84,925 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.97%, 0.97%, 0.97%, 0.99% and 0.98% for the years ended April 30, 2019, 2018, 2017, 2016 and 2015, respectively. |
15 | Invesco American Value Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
16 | Invesco American Value Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
17 | Invesco American Value Fund |
Average Daily Net Assets | Rate |
First $500 million | 0.72% |
Next $535 million | 0.715% |
Next $31.965 billion | 0.65% |
Over $33 billion | 0.64% |
18 | Invesco American Value Fund |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $16,405,908 | $21,008,619 |
Long-term capital gain | 112,525,632 | 150,613,185 |
Total distributions | $128,931,540 | $171,621,804 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Undistributed ordinary income | $655,944 |
Undistributed long-term capital gain | 19,925,528 |
Net unrealized appreciation — investments | 182,074,861 |
Temporary book/tax differences | (172,816) |
Shares of beneficial interest | 969,816,513 |
Total net assets | $1,172,300,030 |
19 | Invesco American Value Fund |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $231,340,025 |
Aggregate unrealized (depreciation) of investments | (49,265,164) |
Net unrealized appreciation of investments | $182,074,861 |
20 | Invesco American Value Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 2,374,194 | $84,237,878 | 2,004,048 | $77,137,757 | |
Class B(b) | — | — | 506 | 17,460 | |
Class C | 143,531 | 4,246,582 | 233,383 | 7,489,760 | |
Class R | 146,104 | 5,203,373 | 159,352 | 6,084,636 | |
Class Y | 888,661 | 32,058,634 | 1,405,732 | 54,537,338 | |
Class R5 | 170,349 | 6,146,454 | 297,685 | 11,567,453 | |
Class R6 | 489,656 | 18,018,069 | 2,174,774 | 84,930,953 | |
Issued as reinvestment of dividends: | |||||
Class A | 2,825,470 | 84,340,635 | 2,733,728 | 100,273,142 | |
Class B(b) | — | — | 17,455 | 558,196 | |
Class C | 330,584 | 7,897,661 | 327,537 | 9,914,559 | |
Class R | 72,283 | 2,149,682 | 100,866 | 3,681,624 | |
Class Y | 488,901 | 14,691,467 | 614,701 | 22,700,901 | |
Class R5 | 99,659 | 2,995,763 | 198,624 | 7,337,161 | |
Class R6 | 248,801 | 7,478,944 | 423,926 | 15,668,308 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 115,057 | 4,583,874 | |
Class B | — | — | (132,629) | (4,583,874) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 1,046,064 | 33,068,721 | - | - | |
Class C | (1,308,333) | (33,068,721) | - | - | |
Reacquired: | |||||
Class A | (5,025,225) | (177,703,256) | (7,241,055) | (279,127,032) | |
Class B(b) | — | — | (98,282) | (3,364,419) | |
Class C | (674,289) | (19,878,539) | (987,732) | (31,817,907) | |
Class R | (287,002) | (10,369,236) | (828,391) | (31,525,812) | |
Class Y | (2,220,865) | (78,695,581) | (6,329,974) | (245,867,535) | |
Class R5 | (1,068,701) | (41,829,136) | (1,117,681) | (43,419,470) | |
Class R6 | (2,369,083) | (92,336,577) | (3,232,863) | (127,118,275) | |
Net increase (decrease) in share activity | (3,629,241) | $(151,347,183) | (9,161,233) | $(360,341,202) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 52% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
21 | Invesco American Value Fund |
22 | Invesco American Value Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,083.00 | $6.30 | $1,018.74 | $6.11 | 1.22% |
Class C | 1,000.00 | 1,079.20 | 10.05 | 1,015.12 | 9.74 | 1.95 |
Class R | 1,000.00 | 1,081.80 | 7.59 | 1,017.50 | 7.35 | 1.47 |
Class Y | 1,000.00 | 1,084.30 | 5.01 | 1,019.98 | 4.86 | 0.97 |
Class R5 | 1,000.00 | 1,084.90 | 4.50 | 1,020.48 | 4.36 | 0.87 |
Class R6 | 1,000.00 | 1,085.30 | 4.08 | 1,020.88 | 3.96 | 0.79 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
23 | Invesco American Value Fund |
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | $112,525,632 |
Qualified Dividend Income* | 77.88% |
Corporate Dividends Received Deduction* | 78.63% |
Qualified Business Income | 2.52% |
U.S. Treasury Obligations* | 0.00% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
Non-Resident Alien Shareholders | |
Qualified Short-Term Gains | $11,204,552 |
24 | Invesco American Value Fund |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco American Value Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco American Value Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco American Value Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco American Value Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco American Value Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | VK-AMVA-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Comstock Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Comstock Fund |
Class A Shares | 3.51% |
Class C Shares | 2.68 |
Class R Shares | 3.20 |
Class Y Shares | 3.73 |
Class R5 Shares | 3.80 |
Class R6 Shares | 3.94 |
S&P 500 Index▼ (Broad Market Index) | 13.49 |
Russell 1000 Value Index■ (Style-Specific Index) | 9.06 |
Lipper Large-Cap Value Funds Index♦ (Peer Group Index) | 9.17 |
Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
Portfolio Composition | |
By sector | % of total net assets |
Financials | 29.20% |
Energy | 16.94 |
Health Care | 11.75 |
Information Technology | 8.34 |
Consumer Staples | 7.29 |
Industrials | 6.70 |
Consumer Discretionary | 6.68 |
Communication Services | 4.17 |
Materials | 2.09 |
Other Sectors, Each Less than 2% of Net Assets | 0.33 |
Money Market Funds Plus Other Assets Less Liabilities | 6.51 |
Top 10 Equity Holdings* | % of total net assets | |
1. | Citigroup, Inc. | 5.20% |
2. | Bank of America Corp. | 4.58 |
3. | JPMorgan Chase & Co. | 3.73 |
4. | American International Group, Inc. | 2.34 |
5. | Royal Dutch Shell PLC, Class A, ADR | 2.16 |
6. | Cisco Systems, Inc. | 2.10 |
7. | Suncor Energy, Inc. | 2.03 |
8. | General Motors Co. | 1.99 |
9. | BP PLC, ADR | 1.96 |
10. | Chevron Corp. | 1.88 |
Total Net Assets | $12.1 billion |
Total Number of Holdings* | 94 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Comstock Fund |
5 | Invesco Comstock Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: RIMES Technologies Corp. |
3 | Source: Lipper Inc. |
6 | Invesco Comstock Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (10/7/68) | 10.69% |
10 Years | 12.93 |
5 Years | 6.26 |
1 Year | –2.18 |
Class C Shares | |
Inception (10/26/93) | 9.52% |
10 Years | 12.72 |
5 Years | 6.66 |
1 Year | 1.73 |
Class R Shares | |
Inception (10/1/02) | 9.07% |
10 Years | 13.28 |
5 Years | 7.18 |
1 Year | 3.20 |
Class Y Shares | |
Inception (10/29/04) | 7.77% |
10 Years | 13.85 |
5 Years | 7.73 |
1 Year | 3.73 |
Class R5 Shares | |
10 Years | 13.92% |
5 Years | 7.81 |
1 Year | 3.80 |
Class R6 Shares | |
10 Years | 13.89% |
5 Years | 7.92 |
1 Year | 3.94 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (10/7/68) | 10.60% |
10 Years | 13.55 |
5 Years | 5.37 |
1 Year | –4.81 |
Class C Shares | |
Inception (10/26/93) | 9.34% |
10 Years | 13.34 |
5 Years | 5.78 |
1 Year | –0.95 |
Class R Shares | |
Inception (10/1/02) | 8.80% |
10 Years | 13.92 |
5 Years | 6.31 |
1 Year | 0.51 |
Class Y Shares | |
Inception (10/29/04) | 7.45% |
10 Years | 14.48 |
5 Years | 6.83 |
1 Year | 0.98 |
Class R5 Shares | |
10 Years | 14.55% |
5 Years | 6.92 |
1 Year | 1.05 |
Class R6 Shares | |
10 Years | 14.52% |
5 Years | 7.02 |
1 Year | 1.18 |
7 | Invesco Comstock Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class R sharesare generally available only to employer sponsored retirement and benefit plans. Please see the prospectus for more information. |
■ | Class Y sharesare available only to certain investors. Please see the prospectus for more information. |
■ | Class R5 shares andClass R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Depositary receipts risk. Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer. |
■ | Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or |
otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. | |
■ | Emerging markets securities risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly |
and unpredictably. In addition, investments in emerging markets securities may also be subject to additional transaction costs, delays in settlement procedures, and lack of timely information. | |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up |
8 | Invesco Comstock Fund |
and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | REIT risk/real estate risk. Investments in real estate related instruments may be affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies of real estate related to the Fund’s holdings. Shares of real estate related companies, which tend to be small- and mid-cap companies, may be more volatile and less liquid. |
■ | Sector focus risk. The Fund may from time to time invest a significant amount of its assets (i.e. over 25%) in one market sector or group of related industries. In this event, the Fund’s performance will depend to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries. |
■ | Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | Value investing style risk. A value investing style subjects the Fund to the risk that the valuations never improve or that the returns on value equity securities are less than returns on other styles of investing or the overall stock market. |
■ | TheS&P 500® Index is an unmanaged index considered representative of the US stock market. |
■ | TheRussell 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. |
■ | TheLipper Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco Comstock Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–93.49% | |||
Aerospace & Defense–1.37% | |||
Arconic, Inc. | 3,413,139 | $73,314,226 | |
Textron, Inc. | 1,746,339 | 92,555,967 | |
165,870,193 | |||
Agricultural Products–1.19% | |||
Archer-Daniels-Midland Co. | 2,169,876 | 96,776,469 | |
Bunge Ltd. | 897,197 | 47,022,095 | |
143,798,564 | |||
Apparel Retail–0.60% | |||
Gap, Inc. (The) | 2,813,273 | 73,370,160 | |
Asset Management & Custody Banks–2.53% | |||
Bank of New York Mellon Corp. (The) | 2,861,231 | 142,088,732 | |
State Street Corp. | 2,430,020 | 164,415,153 | |
306,503,885 | |||
Automobile Manufacturers–1.99% | |||
General Motors Co. | 6,201,120 | 241,533,624 | |
Automotive Retail–0.30% | |||
Advance Auto Parts, Inc. | 219,005 | 36,424,912 | |
Biotechnology–1.08% | |||
Gilead Sciences, Inc. | 2,004,453 | 130,369,623 | |
Broadcasting–0.73% | |||
CBS Corp. Class B | 1,728,852 | 88,638,242 | |
Building Products–1.75% | |||
Johnson Controls International PLC | 5,649,921 | 211,872,037 | |
Cable & Satellite–2.13% | |||
Charter Communications, Inc., Class A(b) | 345,990 | 128,428,028 | |
Comcast Corp., Class A | 2,973,066 | 129,417,563 | |
257,845,591 | |||
Communications Equipment–2.10% | |||
Cisco Systems, Inc. | 4,554,059 | 254,799,601 | |
Construction Machinery & Heavy Trucks–0.46% | |||
Caterpillar, Inc. | 396,307 | 55,253,122 | |
Consumer Finance–0.75% | |||
Ally Financial, Inc. | 3,064,938 | 91,059,308 | |
Diversified Banks–14.88% | |||
Bank of America Corp. | 18,143,551 | 554,829,789 | |
Citigroup, Inc. | 8,910,828 | 629,995,540 | |
JPMorgan Chase & Co. | 3,895,121 | 452,028,792 | |
Wells Fargo & Co. | 3,414,613 | 165,301,415 | |
1,802,155,536 |
Shares | Value | ||
Electric Utilities–0.33% | |||
PG&E Corp.(b) | 1,762,128 | $39,683,122 | |
Electrical Components & Equipment–1.99% | |||
Eaton Corp. PLC | 1,881,316 | 155,810,591 | |
Emerson Electric Co. | 1,208,439 | 85,787,085 | |
241,597,676 | |||
Fertilizers & Agricultural Chemicals–0.69% | |||
CF Industries Holdings, Inc. | 1,855,128 | 83,072,632 | |
Health Care Distributors–1.41% | |||
Cardinal Health, Inc. | 1,821,023 | 88,702,030 | |
McKesson Corp. | 694,365 | 82,803,026 | |
171,505,056 | |||
Health Care Equipment–0.96% | |||
Medtronic PLC | 1,307,241 | 116,096,073 | |
Health Care Services–0.68% | |||
CVS Health Corp. | 1,513,416 | 82,299,562 | |
Hotels, Resorts & Cruise Lines–1.88% | |||
Carnival Corp. | 4,143,792 | 227,328,429 | |
Household Products–2.52% | |||
Kimberly-Clark Corp. | 1,416,887 | 181,899,953 | |
Reckitt Benckiser Group PLC (United Kingdom) | 1,522,959 | 123,390,092 | |
305,290,045 | |||
Industrial Conglomerates–0.35% | |||
General Electric Co. | 4,205,739 | 42,772,366 | |
Industrial Machinery–0.78% | |||
Ingersoll-Rand PLC | 772,613 | 94,730,080 | |
Integrated Oil & Gas–8.91% | |||
BP PLC ADR (United Kingdom) | 5,423,289 | 237,160,428 | |
Chevron Corp. | 1,897,022 | 227,756,462 | |
Exxon Mobil Corp. | 389,226 | 31,247,063 | |
Occidental Petroleum Corp. | 1,282,915 | 75,538,035 | |
Royal Dutch Shell PLC Class A, ADR (United Kingdom) | 4,127,145 | 262,197,522 | |
Suncor Energy, Inc. (Canada) | 7,437,825 | 245,448,225 | |
1,079,347,735 | |||
Integrated Telecommunication Services–0.78% | |||
AT&T, Inc. | 3,056,846 | 94,639,953 | |
Internet & Direct Marketing Retail–1.91% | |||
Altaba, Inc.(b) | 647,331 | 48,802,284 | |
eBay, Inc. | 4,703,357 | 182,255,084 | |
231,057,368 |
10 | Invesco Comstock Fund |
Shares | Value | ||
Investment Banking & Brokerage–2.88% | |||
Goldman Sachs Group, Inc. (The) | 619,060 | $127,476,835 | |
Morgan Stanley | 4,580,393 | 221,003,962 | |
348,480,797 | |||
IT Consulting & Other Services–1.07% | |||
Cognizant Technology Solutions Corp., Class A | 1,774,134 | 129,440,817 | |
Life & Health Insurance–1.15% | |||
MetLife, Inc. | 3,016,752 | 139,162,770 | |
Managed Health Care–1.72% | |||
Anthem, Inc. | 792,685 | 208,499,935 | |
Multi-line Insurance–2.34% | |||
American International Group, Inc. | 5,953,560 | 283,210,849 | |
Oil & Gas Equipment & Services–0.55% | |||
Halliburton Co. | 2,335,340 | 66,160,182 | |
Oil & Gas Exploration & Production–7.48% | |||
Canadian Natural Resources Ltd. (Canada) | 4,039,146 | 121,261,814 | |
Devon Energy Corp. | 5,641,560 | 181,319,739 | |
Encana Corp. (Canada) | 14,269,255 | 98,885,937 | |
Hess Corp. | 2,828,306 | 181,350,981 | |
Marathon Oil Corp. | 12,400,156 | 211,298,658 | |
Noble Energy, Inc. | 4,150,253 | 112,305,846 | |
906,422,975 | |||
Packaged Foods & Meats–0.87% | |||
Danone S.A. (France) | 1,311,307 | 106,012,574 | |
Paper Packaging–1.41% | |||
International Paper Co. | 3,641,093 | 170,439,563 | |
Pharmaceuticals–5.90% | |||
Allergan PLC | 1,224,090 | 179,941,230 | |
Bristol-Myers Squibb Co. | 2,050,282 | 95,194,593 | |
Merck & Co., Inc. | 461,465 | 36,321,910 | |
Mylan N.V.(b) | 3,469,429 | 93,639,889 | |
Novartis AG (Switzerland) | 1,215,356 | 99,249,004 | |
Pfizer, Inc. | 1,169,454 | 47,491,527 | |
Sanofi ADR (France) | 3,740,491 | 163,571,672 | |
715,409,825 |
Shares | Value | ||
Property & Casualty Insurance–0.97% | |||
Allstate Corp. (The) | 1,187,344 | $117,618,297 | |
Regional Banks–3.71% | |||
Citizens Financial Group, Inc. | 3,824,825 | 138,458,665 | |
Fifth Third Bancorp | 5,927,100 | 170,819,022 | |
PNC Financial Services Group, Inc. (The) | 1,022,931 | 140,069,942 | |
449,347,629 | |||
Semiconductors–3.30% | |||
Intel Corp. | 3,587,007 | 183,080,837 | |
QUALCOMM, Inc. | 2,511,181 | 216,288,020 | |
399,368,857 | |||
Systems Software–1.66% | |||
Microsoft Corp. | 1,544,246 | 201,678,527 | |
Technology Hardware, Storage & Peripherals–0.20% | |||
NetApp, Inc. | 338,214 | 24,638,890 | |
Tobacco–2.71% | |||
Altria Group, Inc. | 2,701,655 | 146,780,916 | |
Philip Morris International, Inc. | 2,091,696 | 181,057,206 | |
327,838,122 | |||
Wireless Telecommunication Services–0.52% | |||
Vodafone Group PLC (United Kingdom) | 34,291,345 | 63,556,083 | |
Total Common Stocks & Other Equity Interests (Cost $8,547,258,872) | 11,326,201,187 | ||
Money Market Funds–6.38% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(c) | 270,614,086 | 270,614,086 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(c) | 193,266,003 | 193,323,983 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(c) | 309,273,240 | 309,273,240 | |
Total Money Market Funds (Cost $773,188,036) | 773,211,309 | ||
TOTAL INVESTMENTS IN SECURITIES–99.87% (Cost $9,320,446,908) | 12,099,412,496 | ||
OTHER ASSETS LESS LIABILITIES–0.13% | 15,370,594 | ||
NET ASSETS–100.00% | $12,114,783,090 |
ADR | – American Depositary Receipt |
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
11 | Invesco Comstock Fund |
Open Forward Foreign Currency Contracts | ||||||
Settlement Date | Counterparty | Contract to | Unrealized Appreciation (Depreciation) | |||
Deliver | Receive | |||||
Currency Risk | ||||||
05/10/2019 | Canadian Imperial Bank of Commerce | CAD | 116,898,324 | USD | 87,541,664 | $264,028 |
05/10/2019 | Canadian Imperial Bank of Commerce | GBP | 82,647,963 | USD | 107,993,862 | 174,685 |
05/10/2019 | Goldman Sachs International | EUR | 119,785,485 | USD | 135,325,694 | 891,574 |
05/10/2019 | Goldman Sachs International | GBP | 82,669,737 | USD | 108,033,473 | 185,892 |
05/10/2019 | Goldman Sachs International | CAD | 6,679,471 | USD | 4,991,071 | 4,101 |
05/10/2019 | Goldman Sachs International | CHF | 3,008,007 | USD | 2,954,146 | 52 |
05/10/2019 | Royal Bank of Canada | CAD | 126,140,543 | USD | 94,469,864 | 291,879 |
05/10/2019 | Royal Bank of Canada | CHF | 57,279,729 | USD | 57,476,240 | 1,223,130 |
05/10/2019 | Royal Bank of Canada | EUR | 116,613,134 | USD | 131,734,826 | 861,005 |
05/10/2019 | Royal Bank of Canada | USD | 1,020,091 | CHF | 1,039,130 | 415 |
05/10/2019 | Royal Bank of Canada | USD | 6,260,419 | CAD | 8,425,222 | 29,949 |
Subtotal—Appreciation | 3,926,710 | |||||
Currency Risk | ||||||
05/10/2019 | Goldman Sachs International | USD | 1,390,707 | CHF | 1,409,813 | (6,162) |
05/10/2019 | Royal Bank of Canada | USD | 8,014,154 | CHF | 8,021,350 | (136,571) |
05/10/2019 | Royal Bank of Canada | CAD | 6,704,876 | USD | 4,971,233 | (34,705) |
05/10/2019 | State Street Bank & Trust Co. | USD | 4,843,309 | GBP | 3,707,101 | (7,175) |
Subtotal—Depreciation | (184,613) | |||||
Total Forward Foreign Currency Contracts | $3,742,097 |
Abbreviations: | |
CAD | – Canadian Dollar |
CHF | – Swiss Franc |
EUR | – Euro |
GBP | – British Pound Sterling |
USD | – U.S. Dollar |
12 | Invesco Comstock Fund |
Assets: | |
Investments in securities, at value (Cost $8,547,258,872) | $11,326,201,187 |
Investments in affiliated money market funds, at value (Cost $773,188,036) | 773,211,309 |
Other investments: | |
Unrealized appreciation on forward foreign currency contracts outstanding | 3,926,710 |
Foreign currencies, at value (Cost $541) | 536 |
Receivable for: | |
Investments sold | 18,325,728 |
Fund shares sold | 7,481,315 |
Dividends | 14,135,152 |
Investment for trustee deferred compensation and retirement plans | 934,578 |
Other assets | 109,617 |
Total assets | 12,144,326,132 |
Liabilities: | |
Other investments: | |
Unrealized depreciation on forward foreign currency contracts outstanding | 184,613 |
Payable for: | |
Investments purchased | 28,599 |
Fund shares reacquired | 18,950,242 |
Amount due custodian | 3,603,882 |
Accrued fees to affiliates | 5,070,022 |
Accrued trustees’ and officers’ fees and benefits | 13,337 |
Accrued other operating expenses | 631,803 |
Trustee deferred compensation and retirement plans | 1,060,544 |
Total liabilities | 29,543,042 |
Net assets applicable to shares outstanding | $12,114,783,090 |
Net assets consist of: | |
Shares of beneficial interest | $8,943,856,502 |
Distributable earnings | 3,170,926,588 |
$12,114,783,090 |
Net Assets: | |
Class A | $6,350,025,293 |
Class C | $158,706,792 |
Class R | $212,842,858 |
Class Y | $1,765,455,732 |
Class R5 | $665,080,715 |
Class R6 | $2,962,671,700 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 252,230,650 |
Class C | 6,307,198 |
Class R | 8,454,870 |
Class Y | 70,112,896 |
Class R5 | 26,433,190 |
Class R6 | 117,775,415 |
Class A: | |
Net asset value per share | $25.18 |
Maximum offering price per share (Net asset value of $25.18 ÷ 94.50%) | $26.65 |
Class C: | |
Net asset value and offering price per share | $25.16 |
Class R: | |
Net asset value and offering price per share | $25.17 |
Class Y: | |
Net asset value and offering price per share | $25.18 |
Class R5: | |
Net asset value and offering price per share | $25.16 |
Class R6: | |
Net asset value and offering price per share | $25.16 |
13 | Invesco Comstock Fund |
Investment income: | |
Dividends (net of foreign withholding taxes of $6,543,789) | $302,871,854 |
Dividends from affiliated money market funds | 12,433,300 |
Total investment income | 315,305,154 |
Expenses: | |
Advisory fees | 45,635,904 |
Administrative services fees | 1,113,182 |
Custodian fees | 196,625 |
Distribution fees: | |
Class A | 15,540,589 |
Class C | 3,674,583 |
Class R | 1,156,467 |
Transfer agent fees — A, C, R and Y | 14,008,318 |
Transfer agent fees — R5 | 672,982 |
Transfer agent fees — R6 | 158,941 |
Trustees’ and officers’ fees and benefits | 203,102 |
Registration and filing fees | 277,958 |
Reports to shareholders | 683,100 |
Professional services fees | 151,040 |
Other | 163,931 |
Total expenses | 83,636,722 |
Less: Fees waived and expense offset arrangement(s) | (671,073) |
Net expenses | 82,965,649 |
Net investment income | 232,339,505 |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Investment securities | 635,865,046 |
Foreign currencies | (442,126) |
Forward foreign currency contracts | 85,228,210 |
720,651,130 | |
Change in net unrealized appreciation (depreciation) of: | |
Investment securities | (533,092,325) |
Foreign currencies | 15,114 |
Forward foreign currency contracts | (22,203,227) |
(555,280,438) | |
Net realized and unrealized gain | 165,370,692 |
Net increase in net assets resulting from operations | $397,710,197 |
14 | Invesco Comstock Fund |
2019 | 2018 | |
Operations: | ||
Net investment income | $232,339,505 | $182,378,967 |
Net realized gain | 720,651,130 | 790,828,764 |
Change in net unrealized appreciation (depreciation) | (555,280,438) | 775,489,924 |
Net increase in net assets resulting from operations | 397,710,197 | 1,748,697,655 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (506,804,150) | (235,835,039) |
Class B | — | (898,869) |
Class C | (31,812,508) | (13,735,893) |
Class R | (17,885,215) | (9,772,489) |
Class Y | (155,664,704) | (76,865,461) |
Class R5 | (59,044,636) | (30,608,345) |
Class R6 | (249,226,391) | (94,188,729) |
Total distributions to shareholders from distributable earnings | (1,020,437,604) | (461,904,825) |
Share transactions–net: | ||
Class A | 205,489,325 | (591,272,197) |
Class B | — | (44,867,507) |
Class C | (268,440,174) | (93,097,155) |
Class R | (41,047,725) | (90,963,809) |
Class Y | 3,974,276 | (1,683,728,344) |
Class R5 | (33,427,639) | (87,474,852) |
Class R6 | 518,847,087 | 1,651,310,027 |
Net increase (decrease) in net assets resulting from share transactions | 385,395,150 | (940,093,837) |
Net increase (decrease) in net assets | (237,332,257) | 346,698,993 |
Net assets: | ||
Beginning of year | 12,352,115,347 | 12,005,416,354 |
End of year | $12,114,783,090 | $12,352,115,347 |
(1) | For the year ended April 30, 2018 distributions to shareholders from distributable earnings consisted of distributions from net investment income and distributions from net realized gains. The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately. For the year ended April 30, 2018 distributions from net investment income were $91,742,237, $349,985, $3,276,558, $3,540,449, $37,308,063, $13,363,140, and $37,510,760 and distributions from net realized gains were $144,092,802, $548,884, $10,459,335, $6,232,040, $39,557,398, $17,245,205 and $56,677,969 for Class A, Class B, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
15 | Invesco Comstock Fund |
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||||
Year ended 04/30/19 | $26.67 | $0.46 | $0.23 | $0.69 | $(0.41) | $(1.77) | $(2.18) | $25.18 | 3.51% | $6,350,025 | 0.80%(d) | 0.81%(d) | 1.79%(d) | 23% |
Year ended 04/30/18 | 24.03 | 0.36 | 3.23 | 3.59 | (0.36) | (0.59) | (0.95) | 26.67 | 15.09 | 6,433,646 | 0.81 | 0.81 | 1.38 | 14 |
Year ended 04/30/17 | 21.86 | 0.40 | 3.61 | 4.01 | (0.49) | (1.35) | (1.84) | 24.03 | 18.56 | 6,350,463 | 0.84 | 0.84 | 1.75 | 18 |
Year ended 04/30/16 | 26.04 | 0.44 | (2.29) | (1.85) | (0.36) | (1.97) | (2.33) | 21.86 | (6.90) | 6,613,286 | 0.84 | 0.85 | 1.87 | 15 |
Year ended 04/30/15 | 24.29 | 0.32 | 1.84 | 2.16 | (0.41) | — | (0.41) | 26.04 | 8.98 | 7,698,790 | 0.82 | 0.83 | 1.30 | 17 |
Class C | ||||||||||||||
Year ended 04/30/19 | 26.66 | 0.27 | 0.21 | 0.48 | (0.21) | (1.77) | (1.98) | 25.16 | 2.68(e) | 158,707 | 1.54(d)(e) | 1.55(d)(e) | 1.05(d)(e) | 23 |
Year ended 04/30/18 | 24.02 | 0.16 | 3.24 | 3.40 | (0.17) | (0.59) | (0.76) | 26.66 | 14.24(e) | 468,225 | 1.55(e) | 1.55(e) | 0.64(e) | 14 |
Year ended 04/30/17 | 21.85 | 0.23 | 3.61 | 3.84 | (0.32) | (1.35) | (1.67) | 24.02 | 17.70 | 511,920 | 1.59 | 1.59 | 1.00 | 18 |
Year ended 04/30/16 | 26.03 | 0.27 | (2.29) | (2.02) | (0.19) | (1.97) | (2.16) | 21.85 | (7.59)(e) | 532,230 | 1.56(e) | 1.57(e) | 1.15(e) | 15 |
Year ended 04/30/15 | 24.28 | 0.13 | 1.84 | 1.97 | (0.22) | — | (0.22) | 26.03 | 8.17 | 637,579 | 1.57 | 1.58 | 0.55 | 17 |
Class R | ||||||||||||||
Year ended 04/30/19 | 26.67 | 0.40 | 0.21 | 0.61 | (0.34) | (1.77) | (2.11) | 25.17 | 3.20 | 212,843 | 1.05(d) | 1.06(d) | 1.54(d) | 23 |
Year ended 04/30/18 | 24.03 | 0.29 | 3.24 | 3.53 | (0.30) | (0.59) | (0.89) | 26.67 | 14.80 | 265,368 | 1.06 | 1.06 | 1.13 | 14 |
Year ended 04/30/17 | 21.86 | 0.35 | 3.61 | 3.96 | (0.44) | (1.35) | (1.79) | 24.03 | 18.27 | 324,055 | 1.09 | 1.09 | 1.50 | 18 |
Year ended 04/30/16 | 26.04 | 0.38 | (2.29) | (1.91) | (0.30) | (1.97) | (2.27) | 21.86 | (7.14) | 358,835 | 1.09 | 1.10 | 1.62 | 15 |
Year ended 04/30/15 | 24.29 | 0.26 | 1.84 | 2.10 | (0.35) | — | (0.35) | 26.04 | 8.71 | 486,154 | 1.07 | 1.08 | 1.05 | 17 |
Class Y | ||||||||||||||
Year ended 04/30/19 | 26.68 | 0.52 | 0.22 | 0.74 | (0.47) | (1.77) | (2.24) | 25.18 | 3.73 | 1,765,456 | 0.55(d) | 0.56(d) | 2.04(d) | 23 |
Year ended 04/30/18 | 24.03 | 0.41 | 3.25 | 3.66 | (0.42) | (0.59) | (1.01) | 26.68 | 15.41 | 1,861,752 | 0.56 | 0.56 | 1.63 | 14 |
Year ended 04/30/17 | 21.86 | 0.46 | 3.61 | 4.07 | (0.55) | (1.35) | (1.90) | 24.03 | 18.86 | 3,334,930 | 0.59 | 0.59 | 2.00 | 18 |
Year ended 04/30/16 | 26.04 | 0.49 | (2.28) | (1.79) | (0.42) | (1.97) | (2.39) | 21.86 | (6.67) | 3,034,620 | 0.59 | 0.60 | 2.12 | 15 |
Year ended 04/30/15 | 24.29 | 0.39 | 1.84 | 2.23 | (0.48) | — | (0.48) | 26.04 | 9.26 | 3,422,401 | 0.57 | 0.58 | 1.55 | 17 |
Class R5 | ||||||||||||||
Year ended 04/30/19 | 26.66 | 0.54 | 0.22 | 0.76 | (0.49) | (1.77) | (2.26) | 25.16 | 3.80 | 665,081 | 0.48(d) | 0.49(d) | 2.11(d) | 23 |
Year ended 04/30/18 | 24.02 | 0.44 | 3.23 | 3.67 | (0.44) | (0.59) | (1.03) | 26.66 | 15.46 | 735,462 | 0.50 | 0.50 | 1.69 | 14 |
Year ended 04/30/17 | 21.85 | 0.48 | 3.62 | 4.10 | (0.58) | (1.35) | (1.93) | 24.02 | 18.98 | 741,550 | 0.51 | 0.51 | 2.08 | 18 |
Year ended 04/30/16 | 26.04 | 0.51 | (2.29) | (1.78) | (0.44) | (1.97) | (2.41) | 21.85 | (6.61) | 824,228 | 0.49 | 0.50 | 2.22 | 15 |
Year ended 04/30/15 | 24.29 | 0.41 | 1.84 | 2.25 | (0.50) | — | (0.50) | 26.04 | 9.36 | 830,574 | 0.49 | 0.50 | 1.63 | 17 |
Class R6 | ||||||||||||||
Year ended 04/30/19 | 26.66 | 0.56 | 0.22 | 0.78 | (0.51) | (1.77) | (2.28) | 25.16 | 3.90 | 2,962,672 | 0.39(d) | 0.40(d) | 2.20(d) | 23 |
Year ended 04/30/18 | 24.01 | 0.47 | 3.24 | 3.71 | (0.47) | (0.59) | (1.06) | 26.66 | 15.61 | 2,587,663 | 0.41 | 0.41 | 1.78 | 14 |
Year ended 04/30/17 | 21.85 | 0.50 | 3.61 | 4.11 | (0.60) | (1.35) | (1.95) | 24.01 | 19.05 | 702,678 | 0.41 | 0.41 | 2.18 | 18 |
Year ended 04/30/16 | 26.03 | 0.54 | (2.29) | (1.75) | (0.46) | (1.97) | (2.43) | 21.85 | (6.48) | 624,206 | 0.39 | 0.40 | 2.32 | 15 |
Year ended 04/30/15 | 24.28 | 0.44 | 1.83 | 2.27 | (0.52) | — | (0.52) | 26.03 | 9.46 | 595,160 | 0.39 | 0.40 | 1.73 | 17 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are based on average daily net assets (000’s omitted) of $6,231,190, $371,729, $231,293, $1,819,420, $692,152 and $2,835,902 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.99%, 0.99% and 0.97% for the years ended April 30, 2019, 2018 and 2016, respectively. |
16 | Invesco Comstock Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
17 | Invesco Comstock Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions- Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for 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 |
18 | Invesco Comstock Fund |
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. |
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
Average Daily Net Assets | Rate |
First $1 billion | 0.50% |
Next $1 billion | 0.45% |
Next $1 billion | 0.40% |
Over $3 billion | 0.35% |
19 | Invesco Comstock Fund |
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
Common Stocks & Other Equity Interests | $11,139,255,012 | $186,946,175 | $— | $11,326,201,187 |
Money Market Funds | 773,211,309 | — | — | 773,211,309 |
Total Investments in Securities | 11,912,466,321 | 186,946,175 | — | 12,099,412,496 |
Other Investments - Assets* | ||||
Forward Foreign Currency Contracts | — | 3,926,710 | — | 3,926,710 |
Other Investments - Liabilities* | ||||
Forward Foreign Currency Contracts | — | (184,613) | — | (184,613) |
Total Other Investments | — | 3,742,097 | — | 3,742,097 |
Total Investments | $11,912,466,321 | $190,688,272 | $— | $12,103,154,593 |
* | Unrealized appreciation (depreciation). |
20 | Invesco Comstock Fund |
Value | |
Derivative Assets | Currency Risk |
Unrealized appreciation on forward foreign currency contracts outstanding | $3,926,710 |
Derivatives not subject to master netting agreements | - |
Total Derivative Assets subject to master netting agreements | $3,926,710 |
Value | |
Derivative Liabilities | Currency Risk |
Unrealized depreciation on forward foreign currency contracts outstanding | $(184,613) |
Derivatives not subject to master netting agreements | - |
Total Derivative Liabilities subject to master netting agreements | $(184,613) |
Financial Derivative Assets | Financial Derivative Liabilities | Net Value of Derivatives | Collateral (Received)/Pledged | |||
Counterparty | Forward Foreign Currency Contracts | Forward Foreign Currency Contracts | Non-Cash | Cash | Net Amount | |
Canadian Imperial Bank of Commerce | $438,713 | $– | $438,713 | $– | $– | $438,713 |
Goldman Sachs International | 1,081,619 | (6,162) | 1,075,457 | – | – | 1,075,457 |
Royal Bank of Canada | 2,406,378 | (171,276) | 2,235,102 | – | – | 2,235,102 |
State Street Bank & Trust Co. | – | (7,175) | (7,175) | – | – | (7,175) |
Total | $3,926,710 | $(184,613) | $3,742,097 | $– | $– | $3,742,097 |
Location of Gain (Loss) on Statement of Operations | |
Currency Risk | |
Realized Gain: | |
Forward foreign currency contracts | $85,228,210 |
Change in Net Unrealized Appreciation (Depreciation): | |
Forward foreign currency contracts | (22,203,227) |
Total | $63,024,983 |
Forward Foreign Currency Contracts | |
Average notional value | $784,014,399 |
21 | Invesco Comstock Fund |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $261,897,039 | $187,091,192 |
Long-term capital gain | 758,540,565 | 274,813,633 |
Total distributions | $1,020,437,604 | $461,904,825 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Undistributed ordinary income | $69,909,885 |
Undistributed long-term capital gain | 362,516,686 |
Net unrealized appreciation — investments | 2,739,484,962 |
Net unrealized appreciation (depreciation) — foreign currencies | (70,973) |
Temporary book/tax differences | (913,972) |
Shares of beneficial interest | 8,943,856,502 |
Total net assets | $12,114,783,090 |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $3,219,983,502 |
Aggregate unrealized (depreciation) of investments | (480,498,540) |
Net unrealized appreciation of investments | $2,739,484,962 |
22 | Invesco Comstock Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 19,235,509 | $491,515,179 | 17,881,424 | $457,556,965 | |
Class B(b) | — | — | 5,754 | 142,232 | |
Class C | 1,534,289 | 39,146,050 | 1,226,803 | 32,091,232 | |
Class R | 1,192,696 | 30,493,158 | 1,780,571 | 46,522,283 | |
Class Y | 17,771,878 | 453,272,484 | 17,799,853 | 455,900,712 | |
Class R5 | 4,438,371 | 113,906,701 | 4,772,356 | 122,684,025 | |
Class R6 | 38,439,425 | 1,012,581,472 | 83,015,877 | 2,050,932,804 | |
Issued as reinvestment of dividends: | |||||
Class A | 20,775,822 | 473,525,773 | 8,550,536 | 222,148,501 | |
Class B(b) | — | — | 33,805 | 872,904 | |
Class C | 1,301,913 | 29,369,529 | 488,807 | 12,782,318 | |
Class R | 786,138 | 17,883,529 | 376,218 | 9,772,489 | |
Class Y | 6,038,549 | 137,929,745 | 2,695,973 | 69,648,491 | |
Class R5 | 2,581,603 | 59,028,810 | 1,181,061 | 30,600,266 | |
Class R6 | 10,802,298 | 246,810,381 | 3,592,003 | 93,645,904 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 863,956 | 24,959,681 | |
Class B | — | — | (881,443) | (24,959,681) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 10,774,173 | 251,650,707 | - | - | |
Class C | (10,774,189) | (251,650,707) | - | - | |
Reacquired: | |||||
Class A | (39,747,406) | (1,011,202,334) | (50,399,699) | (1,295,937,344) | |
Class B(b) | — | — | (815,930) | (20,922,962) | |
Class C | (3,316,074) | (85,305,046) | (5,468,733) | (137,970,705) | |
Class R | (3,473,453) | (89,424,412) | (5,695,017) | (147,258,581) | |
Class Y | (23,480,250) | (587,227,953) | (89,514,093) | (2,209,277,547) | |
Class R5 | (8,171,985) | (206,363,150) | (9,242,431) | (240,759,143) | |
Class R6 | (28,542,079) | (740,544,766) | (18,795,017) | (493,268,681) | |
Net increase (decrease) in share activity | 18,167,228 | $385,395,150 | (36,547,366) | $(940,093,837) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 51% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
23 | Invesco Comstock Fund |
24 | Invesco Comstock Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,064.60 | $4.10 | $1,020.83 | $4.01 | 0.80% |
Class C | 1,000.00 | 1,060.10 | 7.92 | 1,017.11 | 7.75 | 1.55 |
Class R | 1,000.00 | 1,062.80 | 5.37 | 1,019.59 | 5.26 | 1.05 |
Class Y | 1,000.00 | 1,065.50 | 2.82 | 1,022.07 | 2.76 | 0.55 |
Class R5 | 1,000.00 | 1,065.90 | 2.51 | 1,022.36 | 2.46 | 0.49 |
Class R6 | 1,000.00 | 1,066.40 | 2.00 | 1,022.86 | 1.96 | 0.39 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
25 | Invesco Comstock Fund |
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | $758,540,565 |
Qualified Dividend Income* | 96.22% |
Corporate Dividends Received Deduction* | 70.56% |
U.S. Treasury Obligations* | 0.00% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Comstock Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Comstock Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Comstock Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Comstock Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Comstock Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | VK-COM-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Dividend Income Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Dividend Income Fund |
Class A Shares | 9.51% |
Class C Shares | 8.65 |
Class Y Shares | 9.76 |
Investor Class Shares | 9.49 |
Class R5 Shares | 9.82 |
Class R6 Shares | 9.96 |
S&P 500 Index▼ (Broad Market Index) | 13.49 |
Dow Jones U.S. Select Dividend Index▼ (Style-Specific Index) | 9.04 |
Russell 1000 Value Index■ (Style-Specific Index) | 9.06 |
Lipper Equity Income Funds Index♦ (Peer Group Index) | 9.96 |
Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
Portfolio Composition | |
By sector | % of total net assets |
Consumer Staples | 23.09% |
Utilities | 21.45 |
Financials | 11.24 |
Health Care | 7.56 |
Communication Services | 7.37 |
Industrials | 6.60 |
Energy | 5.92 |
Consumer Discretionary | 5.77 |
Materials | 3.66 |
Other Sectors, Each Less than 2% of Net Assets | 2.10 |
Money Market Funds Plus Other Assets Less Liabilities | 5.24 |
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | Dominion Energy, Inc. | 3.66% |
2. | M&T Bank Corp. | 3.36 |
3. | General Mills, Inc. | 3.24 |
4. | McDonald’s Corp. | 2.86 |
5. | Procter & Gamble Co. (The) | 2.82 |
6. | National Fuel Gas Co. | 2.79 |
7. | Coca-Cola Co. (The) | 2.79 |
8. | Verizon Communications, Inc. | 2.71 |
9. | Kimberly-Clark Corp. | 2.43 |
10. | Nestle S.A. | 2.36 |
Total Net Assets | $1.5 billion |
Total Number of Holdings* | 59 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Dividend Income Fund |
5 | Invesco Dividend Income Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: RIMES Technologies Corp. |
3 | Source: Lipper Inc. |
4 | It is Invesco’s policy to chart the Fund’s oldest share class(es). Because Investor Class shares do not have a sales charge, we also show the oldest share class with a sales charge, Class C shares. |
6 | Invesco Dividend Income Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (3/28/02) | 8.04% |
10 Years | 10.97 |
5 Years | 6.61 |
1 Year | 3.47 |
Class C Shares | |
Inception (2/14/00) | 4.01% |
10 Years | 10.77 |
5 Years | 7.03 |
1 Year | 7.66 |
Class Y Shares | |
Inception (10/3/08) | 9.41% |
10 Years | 11.88 |
5 Years | 8.10 |
1 Year | 9.76 |
Investor Class Shares | |
Inception (6/2/86) | 8.47% |
10 Years | 11.60 |
5 Years | 7.83 |
1 Year | 9.49 |
Class R5 Shares | |
Inception (10/25/05) | 8.45% |
10 Years | 12.01 |
5 Years | 8.16 |
1 Year | 9.82 |
Class R6 Shares | |
10 Years | 11.86% |
5 Years | 8.24 |
1 Year | 9.96 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (3/28/02) | 7.98% |
10 Years | 11.09 |
5 Years | 6.90 |
1 Year | 2.15 |
Class C Shares | |
Inception (2/14/00) | 3.94% |
10 Years | 10.89 |
5 Years | 7.31 |
1 Year | 6.31 |
Class Y Shares | |
Inception (10/3/08) | 9.31% |
10 Years | 12.00 |
5 Years | 8.38 |
1 Year | 8.37 |
Investor Class Shares | |
Inception (6/2/86) | 8.44% |
10 Years | 11.72 |
5 Years | 8.11 |
1 Year | 8.06 |
Class R5 Shares | |
Inception (10/25/05) | 8.37% |
10 Years | 12.13 |
5 Years | 8.42 |
1 Year | 8.38 |
Class R6 Shares | |
10 Years | 11.98% |
5 Years | 8.51 |
1 Year | 8.51 |
1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
7 | Invesco Dividend Income Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class Y sharesand Investor Class shares are available only to certain investors. Please see the prospectus for more information. |
■ | Class R5 shares andClass R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential |
appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. | |
■ | Market risk.The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | The S&P 500® Indexis an unmanaged index considered representative of the US stock market. |
■ | TheDow Jones U.S. Select DividendTM Index represents the country’s leading stocks by dividend yield. |
■ | TheRussell 1000® Value Index is an unmanaged index considered repre- |
sentative 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. | |
■ | TheLipper Equity Income Funds Index is an unmanaged Index considered representative of equity income funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
8 | Invesco Dividend Income Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–94.77% | |||
Aerospace & Defense–2.28% | |||
General Dynamics Corp. | 72,170 | $12,898,223 | |
Lockheed Martin Corp. | 63,789 | 21,262,787 | |
34,161,010 | |||
Air Freight & Logistics–1.10% | |||
United Parcel Service, Inc. Class B | 155,068 | 16,471,323 | |
Asset Management & Custody Banks–3.11% | |||
Federated Investors, Inc. Class B | 391,363 | 12,026,585 | |
Waddell & Reed Financial, Inc., Class A | 1,839,951 | 34,462,282 | |
46,488,867 | |||
Brewers–1.62% | |||
Molson Coors Brewing Co. Class B | 378,004 | 24,264,077 | |
Electric Utilities–7.75% | |||
American Electric Power Co., Inc. | 235,996 | 20,189,458 | |
Duke Energy Corp. | 166,610 | 15,181,503 | |
Exelon Corp. | 514,197 | 26,198,337 | |
Pinnacle West Capital Corp. | 252,925 | 24,096,165 | |
Portland General Electric Co. | 580,188 | 30,349,634 | |
116,015,097 | |||
Electrical Components & Equipment–1.88% | |||
ABB Ltd. (Switzerland) | 833,669 | 17,156,915 | |
Emerson Electric Co. | 155,241 | 11,020,559 | |
28,177,474 | |||
Fertilizers & Agricultural Chemicals–0.76% | |||
Nutrien Ltd. (Canada) | 210,565 | 11,420,208 | |
Food Distributors–1.26% | |||
Sysco Corp. | 267,816 | 18,846,212 | |
Gas Utilities–4.28% | |||
National Fuel Gas Co. | 705,878 | 41,795,036 | |
Southwest Gas Holdings, Inc. | 267,036 | 22,214,725 | |
64,009,761 | |||
General Merchandise Stores–1.18% | |||
Target Corp. | 226,965 | 17,571,630 | |
Household Products–5.25% | |||
Kimberly-Clark Corp. | 282,758 | 36,300,472 | |
Procter & Gamble Co. (The) | 397,043 | 42,277,139 | |
78,577,611 | |||
Industrial Machinery–1.33% | |||
Kennametal, Inc. | 489,747 | 19,932,703 | |
Integrated Oil & Gas–5.92% | |||
Exxon Mobil Corp. | 363,629 | 29,192,136 |
Shares | Value | ||
Integrated Oil & Gas–(continued) | |||
Royal Dutch Shell PLC Class B (United Kingdom) | 276,250 | $8,856,519 | |
Suncor Energy, Inc. (Canada) | 648,673 | 21,391,635 | |
TOTAL S.A. (France) | 522,713 | 29,170,396 | |
88,610,686 | |||
Integrated Telecommunication Services–7.37% | |||
AT&T, Inc. | 1,023,936 | 31,701,060 | |
BT Group PLC (United Kingdom) | 6,434,989 | 19,220,106 | |
Deutsche Telekom AG (Germany) | 1,119,108 | 18,719,936 | |
Verizon Communications, Inc. | 710,130 | 40,612,335 | |
110,253,437 | |||
Motorcycle Manufacturers–1.22% | |||
Harley-Davidson, Inc. | 489,516 | 18,224,681 | |
Multi-Utilities–9.42% | |||
CMS Energy Corp. | 367,874 | 20,435,401 | |
Dominion Energy, Inc. | 702,791 | 54,726,335 | |
National Grid PLC (United Kingdom) | 2,503,220 | 27,344,699 | |
Public Service Enterprise Group, Inc. | 201,717 | 12,032,419 | |
Sempra Energy | 206,323 | 26,399,028 | |
140,937,882 | |||
Packaged Foods & Meats–8.98% | |||
Campbell Soup Co. | 612,726 | 23,706,369 | |
Danone S.A. (France) | 195,055 | 15,769,215 | |
General Mills, Inc. | 941,995 | 48,484,483 | |
Kraft Heinz Co. (The) | 335,438 | 11,149,959 | |
Nestle S.A. (Switzerland) | 366,061 | 35,263,307 | |
134,373,333 | |||
Paper Packaging–2.89% | |||
International Paper Co. | 387,053 | 18,117,951 | |
Sonoco Products Co. | 398,590 | 25,135,085 | |
43,253,036 | |||
Pharmaceuticals–7.56% | |||
Bayer AG (Germany) | 270,522 | 18,004,802 | |
Bristol-Myers Squibb Co. | 388,123 | 18,020,551 | |
Eli Lilly and Co. | 210,103 | 24,590,455 | |
Johnson & Johnson | 147,063 | 20,765,296 | |
Merck & Co., Inc. | 403,635 | 31,770,111 | |
113,151,215 | |||
Property & Casualty Insurance–3.71% | |||
Chubb Ltd. | 166,081 | 24,114,961 | |
Travelers Cos., Inc. (The) | 217,830 | 31,313,063 | |
55,428,024 | |||
Regional Banks–4.43% | |||
Cullen/Frost Bankers, Inc. | 158,042 | 16,071,291 |
9 | Invesco Dividend Income Fund |
Shares | Value | ||
Regional Banks–(continued) | |||
M&T Bank Corp. | 295,193 | $50,203,473 | |
66,274,764 | |||
Restaurants–3.38% | |||
Darden Restaurants, Inc. | 66,278 | 7,794,293 | |
McDonald’s Corp. | 216,412 | 42,756,519 | |
50,550,812 | |||
Semiconductors–0.70% | |||
Microchip Technology, Inc. | 104,279 | 10,416,429 | |
Soft Drinks–2.79% | |||
Coca-Cola Co. (The) | 851,073 | 41,753,641 | |
Specialized REITs–1.41% | |||
Weyerhaeuser Co. | 786,717 | 21,084,016 | |
Tobacco–3.19% | |||
Altria Group, Inc. | 205,801 | 11,181,168 | |
Imperial Brands PLC (United Kingdom) | 761,556 | 24,247,314 |
Shares | Value | ||
Tobacco–(continued) | |||
Philip Morris International, Inc. | 141,543 | $12,251,962 | |
47,680,444 | |||
Total Common Stocks & Other Equity Interests (Cost $1,165,620,115) | 1,417,928,373 | ||
Money Market Funds–5.83% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(b) | 30,534,078 | 30,534,078 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(b) | 21,814,667 | 21,821,211 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(b) | 34,896,089 | 34,896,089 | |
Total Money Market Funds (Cost $87,248,123) | 87,251,378 | ||
TOTAL INVESTMENTS IN SECURITIES–100.60% (Cost $1,252,868,238) | 1,505,179,751 | ||
OTHER ASSETS LESS LIABILITIES–(0.60)% | (9,037,704) | ||
NET ASSETS–100.00% | $1,496,142,047 |
REIT | – Real Estate Investment Trust |
(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) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
Open Forward Foreign Currency Contracts | ||||||
Settlement Date | Counterparty | Contract to | Unrealized Appreciation | |||
Deliver | Receive | |||||
Currency Risk | ||||||
05/24/2019 | Citibank, N.A. | EUR | 10,407,605 | USD | 11,700,240 | $5,810 |
05/24/2019 | JP Morgan Chase Bank, N.A. | EUR | 10,361,714 | USD | 11,649,551 | 6,686 |
05/24/2019 | State Street Bank and Trust Co. | EUR | 10,361,714 | USD | 11,650,348 | 7,484 |
Total Forward Foreign Currency Contracts | $19,980 |
Abbreviations: | |
EUR | – Euro |
USD | – U.S. Dollar |
10 | Invesco Dividend Income Fund |
Assets: | |
Investments in securities, at value (Cost $1,165,620,115) | $1,417,928,373 |
Investments in affiliated money market funds, at value (Cost $87,248,123) | 87,251,378 |
Other investments: | |
Unrealized appreciation on forward foreign currency contracts outstanding | 19,980 |
Foreign currencies, at value (Cost $978,301) | 976,965 |
Receivable for: | |
Investments sold | 2,440,517 |
Fund shares sold | 654,444 |
Dividends | 4,475,359 |
Investment for trustee deferred compensation and retirement plans | 136,750 |
Other assets | 44,567 |
Total assets | 1,513,928,333 |
Liabilities: | |
Payable for: | |
Investments purchased | 302,702 |
Fund shares reacquired | 15,770,325 |
Amount due custodian | 762,915 |
Accrued fees to affiliates | 623,771 |
Accrued trustees’ and officers’ fees and benefits | 7,732 |
Accrued other operating expenses | 167,214 |
Trustee deferred compensation and retirement plans | 151,627 |
Total liabilities | 17,786,286 |
Net assets applicable to shares outstanding | $1,496,142,047 |
Net assets consist of: | |
Shares of beneficial interest | $1,226,206,412 |
Distributable earnings | 269,935,635 |
$1,496,142,047 |
Net Assets: | |
Class A | $764,036,969 |
Class C | $152,988,265 |
Class Y | $248,641,482 |
Investor Class | $76,436,174 |
Class R5 | $1,863,290 |
Class R6 | $252,175,867 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 33,654,580 |
Class C | 6,647,651 |
Class Y | 10,837,784 |
Investor Class | 3,333,090 |
Class R5 | 82,048 |
Class R6 | 11,095,727 |
Class A: | |
Net asset value per share | $22.70 |
Maximum offering price per share (Net asset value of $22.70 ÷ 94.50%) | $24.02 |
Class C: | |
Net asset value and offering price per share | $23.01 |
Class Y: | |
Net asset value and offering price per share | $22.94 |
Investor Class: | |
Net asset value and offering price per share | $22.93 |
Class R5: | |
Net asset value and offering price per share | $22.71 |
Class R6: | |
Net asset value and offering price per share | $22.73 |
11 | Invesco Dividend Income Fund |
Investment income: | |
Dividends (net of foreign withholding taxes of $945,571) | $58,193,758 |
Dividends from affiliated money market funds | 1,295,420 |
Total investment income | 59,489,178 |
Expenses: | |
Advisory fees | 10,132,921 |
Administrative services fees | 338,189 |
Custodian fees | 83,187 |
Distribution fees: | |
Class A | 1,955,004 |
Class C | 1,931,482 |
Investor Class | 191,927 |
Transfer agent fees — A, C, Y and Investor Class | 1,883,702 |
Transfer agent fees — R5 | 2,133 |
Transfer agent fees — R6 | 41,074 |
Trustees’ and officers’ fees and benefits | 50,573 |
Registration and filing fees | 142,903 |
Reports to shareholders | 198,181 |
Professional services fees | 85,050 |
Other | 47,881 |
Total expenses | 17,084,207 |
Less: Fees waived and expense offset arrangement(s) | (78,689) |
Net expenses | 17,005,518 |
Net investment income | 42,483,660 |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Investment securities | 75,264,592 |
Foreign currencies | (199,455) |
Forward foreign currency contracts | 6,565,920 |
81,631,057 | |
Change in net unrealized appreciation (depreciation) of: | |
Investment securities | 25,701,677 |
Foreign currencies | (12,068) |
Forward foreign currency contracts | (1,696,301) |
23,993,308 | |
Net realized and unrealized gain | 105,624,365 |
Net increase in net assets resulting from operations | $148,108,025 |
12 | Invesco Dividend Income Fund |
2019 | 2018 | |
Operations: | ||
Net investment income | $42,483,660 | $50,192,464 |
Net realized gain | 81,631,057 | 77,972,138 |
Change in net unrealized appreciation (depreciation) | 23,993,308 | (109,928,798) |
Net increase in net assets resulting from operations | 148,108,025 | 18,235,804 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (74,789,875) | (44,409,856) |
Class B | — | (95,827) |
Class C | (17,234,355) | (10,216,069) |
Class Y | (29,436,119) | (29,021,377) |
Investor Class | (7,473,172) | (3,798,356) |
Class R5 | (221,095) | (104,464) |
Class R6 | (27,738,032) | (15,308,141) |
Total distributions to shareholders from distributable earnings | (156,892,648) | (102,954,090) |
Share transactions–net: | ||
Class A | (96,000,409) | (245,373,749) |
Class B | — | (4,357,345) |
Class C | (80,484,324) | (64,867,734) |
Class Y | (194,241,151) | (395,325,950) |
Investor Class | (2,168,933) | (14,984,629) |
Class R5 | (17,802) | (372,337) |
Class R6 | (69,423,267) | 254,846,222 |
Net increase (decrease) in net assets resulting from share transactions | (442,335,886) | (470,435,522) |
Net increase (decrease) in net assets | (451,120,509) | (555,153,808) |
Net assets: | ||
Beginning of year | 1,947,262,556 | 2,502,416,364 |
End of year | $1,496,142,047 | $1,947,262,556 |
(1) | For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income and distributions from net realized gains. The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions from net investment income were $19,890,762, $28,588, $3,367,622, $14,173,207, $1,692,169, $51,057 and $6,632,381 and distributions from net realized gains were $24,519,094, $67,239, $6,848,447,$14,848,170, $2,106,187, $53,407 and $8,675,760 for Class A, Class B, Class C, Class Y, Investor Class, Class R5 and Class R6 shares, respectively. |
13 | Invesco Dividend Income Fund |
Net asset value, beginning of period | Net investment income(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||||
Year ended 04/30/19 | $22.98 | $0.58 | $1.45 | $2.03 | $(0.60) | $(1.71) | $(2.31) | $22.70 | 9.51% | $764,037 | 1.06%(d) | 1.06%(d) | 2.54%(d) | 4% |
Year ended 04/30/18 | 23.96 | 0.51 | (0.42) | 0.09 | (0.47) | (0.60) | (1.07) | 22.98 | 0.21 | 862,915 | 1.01 | 1.02 | 2.12 | 11 |
Year ended 04/30/17 | 22.32 | 0.41 | 1.80 | 2.21 | (0.41) | (0.16) | (0.57) | 23.96 | 10.00 | 1,143,946 | 1.03 | 1.05 | 1.74 | 6 |
Year ended 04/30/16 | 21.03 | 0.40 | 1.77 | 2.17 | (0.41) | (0.47) | (0.88) | 22.32 | 10.72 | 867,596 | 1.13 | 1.17 | 1.91 | 9 |
Year ended 04/30/15 | 19.88 | 0.41 | 1.37 | 1.78 | (0.42) | (0.21) | (0.63) | 21.03 | 9.07 | 413,896 | 1.12 | 1.22 | 1.99 | 4 |
Class C | ||||||||||||||
Year ended 04/30/19 | 23.28 | 0.42 | 1.46 | 1.88 | (0.44) | (1.71) | (2.15) | 23.01 | 8.65 | 152,988 | 1.81(d) | 1.81(d) | 1.79(d) | 4 |
Year ended 04/30/18 | 24.26 | 0.33 | (0.42) | (0.09) | (0.29) | (0.60) | (0.89) | 23.28 | (0.52) | 236,168 | 1.76 | 1.77 | 1.37 | 11 |
Year ended 04/30/17 | 22.60 | 0.24 | 1.82 | 2.06 | (0.24) | (0.16) | (0.40) | 24.26 | 9.16 | 311,194 | 1.78 | 1.80 | 0.99 | 6 |
Year ended 04/30/16 | 21.28 | 0.25 | 1.80 | 2.05 | (0.26) | (0.47) | (0.73) | 22.60 | 9.94 | 154,584 | 1.88 | 1.92 | 1.16 | 9 |
Year ended 04/30/15 | 20.11 | 0.26 | 1.39 | 1.65 | (0.27) | (0.21) | (0.48) | 21.28 | 8.29 | 61,818 | 1.87 | 1.97 | 1.24 | 4 |
Class Y | ||||||||||||||
Year ended 04/30/19 | 23.21 | 0.65 | 1.46 | 2.11 | (0.67) | (1.71) | (2.38) | 22.94 | 9.76 | 248,641 | 0.81(d) | 0.81(d) | 2.79(d) | 4 |
Year ended 04/30/18 | 24.19 | 0.58 | (0.43) | 0.15 | (0.53) | (0.60) | (1.13) | 23.21 | 0.48 | 444,633 | 0.76 | 0.77 | 2.37 | 11 |
Year ended 04/30/17 | 22.53 | 0.47 | 1.82 | 2.29 | (0.47) | (0.16) | (0.63) | 24.19 | 10.28 | 860,105 | 0.78 | 0.80 | 1.99 | 6 |
Year ended 04/30/16 | 21.22 | 0.47 | 1.78 | 2.25 | (0.47) | (0.47) | (0.94) | 22.53 | 11.01 | 249,625 | 0.88 | 0.92 | 2.16 | 9 |
Year ended 04/30/15 | 20.06 | 0.47 | 1.37 | 1.84 | (0.47) | (0.21) | (0.68) | 21.22 | 9.34 | 53,878 | 0.87 | 0.97 | 2.24 | 4 |
Investor Class | ||||||||||||||
Year ended 04/30/19 | 23.20 | 0.59 | 1.46 | 2.05 | (0.61) | (1.71) | (2.32) | 22.93 | 9.49 | 76,436 | 1.06 | 1.06 | 2.54 | 4 |
Year ended 04/30/18 | 24.18 | 0.51 | (0.42) | 0.09 | (0.47) | (0.60) | (1.07) | 23.20 | 0.23 | 79,103 | 1.01 | 1.02 | 2.12 | 11 |
Year ended 04/30/17 | 22.52 | 0.41 | 1.82 | 2.23 | (0.41) | (0.16) | (0.57) | 24.18 | 10.01 | 97,228 | 1.03 | 1.05 | 1.74 | 6 |
Year ended 04/30/16 | 21.22 | 0.41 | 1.78 | 2.19 | (0.42) | (0.47) | (0.89) | 22.52 | 10.69 | 88,691 | 1.13 | 1.17 | 1.91 | 9 |
Year ended 04/30/15 | 20.05 | 0.41 | 1.39 | 1.80 | (0.42) | (0.21) | (0.63) | 21.22 | 9.11 | 74,957 | 1.12 | 1.22 | 1.99 | 4 |
Class R5 | ||||||||||||||
Year ended 04/30/19 | 22.99 | 0.65 | 1.45 | 2.10 | (0.67) | (1.71) | (2.38) | 22.71 | 9.82 | 1,863 | 0.77(d) | 0.77(d) | 2.83(d) | 4 |
Year ended 04/30/18 | 23.97 | 0.58 | (0.42) | 0.16 | (0.54) | (0.60) | (1.14) | 22.99 | 0.51 | 1,914 | 0.72 | 0.73 | 2.41 | 11 |
Year ended 04/30/17 | 22.32 | 0.48 | 1.81 | 2.29 | (0.48) | (0.16) | (0.64) | 23.97 | 10.38 | 2,376 | 0.72 | 0.74 | 2.05 | 6 |
Year ended 04/30/16 | 21.04 | 0.47 | 1.75 | 2.22 | (0.47) | (0.47) | (0.94) | 22.32 | 10.98 | 551 | 0.84 | 0.85 | 2.20 | 9 |
Year ended 04/30/15 | 19.88 | 0.46 | 1.39 | 1.85 | (0.48) | (0.21) | (0.69) | 21.04 | 9.44 | 21 | 0.82 | 0.83 | 2.29 | 4 |
Class R6 | ||||||||||||||
Year ended 04/30/19 | 23.00 | 0.67 | 1.46 | 2.13 | (0.69) | (1.71) | (2.40) | 22.73 | 9.96 | 252,176 | 0.69(d) | 0.69(d) | 2.91(d) | 4 |
Year ended 04/30/18 | 23.98 | 0.60 | (0.42) | 0.18 | (0.56) | (0.60) | (1.16) | 23.00 | 0.59 | 322,530 | 0.64 | 0.65 | 2.49 | 11 |
Year ended 04/30/17 | 22.34 | 0.50 | 1.80 | 2.30 | (0.50) | (0.16) | (0.66) | 23.98 | 10.42 | 83,352 | 0.64 | 0.66 | 2.13 | 6 |
Year ended 04/30/16 | 21.05 | 0.49 | 1.77 | 2.26 | (0.50) | (0.47) | (0.97) | 22.34 | 11.13 | 63,000 | 0.74 | 0.75 | 2.30 | 9 |
Year ended 04/30/15 | 19.89 | 0.48 | 1.38 | 1.86 | (0.49) | (0.21) | (0.70) | 21.05 | 9.49 | 51,080 | 0.78 | 0.79 | 2.33 | 4 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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 omitted) of $782,002, $193,148, $316,423, $76,771 , $2,144 and $280,952 for Class A, Class C, Class Y, Investor Class, Class R5 and Class R6 shares, respectively. |
14 | Invesco Dividend Income Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
15 | Invesco Dividend Income Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for 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 |
16 | Invesco Dividend Income Fund |
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. |
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
Average Daily Net Assets | Rate |
First $350 million | 0.75% |
Next $350 million | 0.65% |
Next $1.3 billion | 0.55% |
Next $2 billion | 0.45% |
Next $2 billion | 0.40% |
Next $2 billion | 0.375% |
Over $8 billion | 0.35% |
17 | Invesco Dividend Income Fund |
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
Common Stocks & Other Equity Interests | $1,293,046,138 | $124,882,235 | $— | $1,417,928,373 |
Money Market Funds | 87,251,378 | — | — | 87,251,378 |
Total Investments in Securities | 1,380,297,516 | 124,882,235 | — | 1,505,179,751 |
Other Investments - Assets* | ||||
Forward Foreign Currency Contracts | — | 19,980 | — | 19,980 |
Total Investments | $1,380,297,516 | $124,902,215 | $— | $1,505,199,731 |
* | Unrealized appreciation (depreciation). |
18 | Invesco Dividend Income Fund |
Value | |
Derivative Assets | Currency Risk |
Unrealized appreciation on forward foreign currency contracts outstanding | $19,980 |
Derivatives not subject to master netting agreements | - |
Total Derivative Assets subject to master netting agreements | $19,980 |
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||
Counterparty | Forward Foreign Currency Contracts | Forward Foreign Currency Contracts | Net Value of Derivatives | Non-Cash | Cash | Net Amount |
Citibank, N.A. | $5,810 | $– | $5,810 | $– | $– | $5,810 |
JPMorgan Chase Bank, N.A. | 6,686 | – | 6,686 | – | – | 6,686 |
State Street Bank and Trust Co. | 7,484 | – | 7,484 | – | – | 7,484 |
Total | $19,980 | $– | $19,980 | $– | $– | $19,980 |
Location of Gain (Loss) on Statement of Operations | |
Currency Risk | |
Realized Gain: | |
Forward foreign currency contracts | $6,565,920 |
Change in Net Unrealized Appreciation (Depreciation): | |
Forward foreign currency contracts | (1,696,301) |
Total | $4,869,619 |
Forward Foreign Currency Contracts | |
Average notional value | $45,290,442 |
19 | Invesco Dividend Income Fund |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $45,333,541 | $54,747,522 |
Long-term capital gain | 111,559,107 | 48,206,568 |
Total distributions | $156,892,648 | $102,954,090 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Undistributed ordinary income | $1,532,330 |
Undistributed long-term capital gain | 16,278,741 |
Net unrealized appreciation — investments | 252,283,270 |
Net unrealized appreciation (depreciation) — foreign currencies | (30,961) |
Temporary book/tax differences | (127,745) |
Shares of beneficial interest | 1,226,206,412 |
Total net assets | $1,496,142,047 |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $322,350,298 |
Aggregate unrealized (depreciation) of investments | (70,067,028) |
Net unrealized appreciation of investments | $252,283,270 |
20 | Invesco Dividend Income Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 3,006,748 | $67,390,608 | 5,557,845 | $133,936,507 | |
Class B(b) | — | — | 3,094 | 75,111 | |
Class C | 595,243 | 13,241,679 | 1,313,101 | 32,069,130 | |
Class Y | 2,611,346 | 60,093,396 | 9,063,741 | 221,205,219 | |
Investor Class | 83,246 | 1,921,271 | 134,779 | 3,281,647 | |
Class R5 | 35,747 | 823,196 | 23,003 | 548,665 | |
Class R6 | 1,842,834 | 41,639,938 | 13,276,828 | 319,690,551 | |
Issued as reinvestment of dividends: | |||||
Class A | 3,138,017 | 68,181,648 | 1,697,639 | 41,200,887 | |
Class B(b) | — | — | 3,641 | 89,218 | |
Class C | 698,345 | 15,319,004 | 372,895 | 9,188,155 | |
Class Y | 1,140,934 | 25,088,792 | 1,017,708 | 24,935,624 | |
Investor Class | 319,556 | 7,008,383 | 146,539 | 3,588,837 | |
Class R5 | 10,141 | 220,586 | 4,307 | 104,387 | |
Class R6 | 1,252,991 | 27,304,918 | 622,824 | 15,117,359 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 117,928 | 2,962,339 | |
Class B | — | — | (118,411) | (2,962,339) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 1,243,209 | 26,467,883 | - | - | |
Class C | (1,226,483) | (26,467,883) | - | - | |
Reacquired: | |||||
Class A | (11,281,409) | (258,040,548) | (17,570,287) | (423,473,482) | |
Class B(b) | — | — | (63,765) | (1,559,335) | |
Class C | (3,566,288) | (82,577,124) | (4,367,841) | (106,125,019) | |
Class Y | (12,074,171) | (279,423,339) | (26,482,455) | (641,466,793) | |
Investor Class | (479,561) | (11,098,587) | (892,407) | (21,855,113) | |
Class R5 | (47,112) | (1,061,584) | (43,162) | (1,025,389) | |
Class R6 | (6,020,160) | (138,368,123) | (3,354,816) | (79,961,688) | |
Net increase (decrease) in share activity | (18,716,827) | $(442,335,886) | (19,537,272) | $(470,435,522) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 38% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
21 | Invesco Dividend Income Fund |
22 | Invesco Dividend Income Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,066.60 | $5.43 | $1,019.54 | $5.31 | 1.06% |
Class C | 1,000.00 | 1,062.90 | 9.26 | 1,015.82 | 9.05 | 1.81 |
Class Y | 1,000.00 | 1,067.90 | 4.15 | 1,020.78 | 4.06 | 0.81 |
Investor Class | 1,000.00 | 1,066.60 | 5.43 | 1,019.54 | 5.31 | 1.06 |
Class R5 | 1,000.00 | 1,068.10 | 3.95 | 1,020.98 | 3.86 | 0.77 |
Class R6 | 1,000.00 | 1,069.00 | 3.54 | 1,021.37 | 3.46 | 0.69 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
23 | Invesco Dividend Income Fund |
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | $111,559,107 |
Qualified Dividend Income* | 100.00% |
Corporate Dividends Received Deduction* | 99.27% |
U.S. Treasury Obligations* | 0.00% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
Non-Resident Alien Shareholders | |
Qualified Short-Term Gains | 1,807,498 |
24 | Invesco Dividend Income Fund |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Dividend Income Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Dividend Income Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Dividend Income Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Dividend Income Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Dividend Income Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | I-DIVI-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Energy Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Energy Fund |
Class A Shares | –16.48% |
Class C Shares | –17.14 |
Class Y Shares | –16.29 |
Investor Class Shares | –16.47 |
Class R5 Shares | –16.12 |
Class R6 Shares | –16.15 |
S&P 500 Index▼ (Broad Market Index) | 13.49 |
MSCI World Energy Index■ (Style-Specific Index) | –6.57 |
Lipper Natural Resource Funds Index♦ (Peer Group Index) | –16.16 |
Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
Portfolio Composition | |
By industry % of total net assets | |
Oil & Gas Exploration & Production | 39.35% |
Integrated Oil & Gas | 34.67 |
Oil & Gas Equipment & Services | 11.87 |
Oil & Gas Drilling | 3.87 |
Oil & Gas Refining & Marketing | 3.31 |
Diversified Metals & Mining | 2.71 |
Other Sectors, Each Less than 2% of Net Assets | 3.54 |
Money Market Funds Plus Other Assets Less Liabilities | 0.68 |
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | Noble Energy, Inc. | 6.31% |
2. | BP PLC, ADR | 6.19 |
3. | Royal Dutch Shell PLC, Class A, ADR | 6.13 |
4. | Chevron Corp. | 6.01 |
5. | Suncor Energy, Inc. | 5.84 |
6. | Canadian Natural Resources Ltd. | 5.83 |
7. | Hess Corp. | 4.98 |
8. | Exxon Mobil Corp. | 4.73 |
9. | PrairieSky Royalty Ltd. | 4.10 |
10. | Devon Energy Corp. | 3.95 |
Total Net Assets | $ 424.2 million |
Total Number of Holdings* | 38 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Energy Fund |
5 | Invesco Energy Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: RIMES Technologies Corp. |
3 | Source: Lipper Inc. |
4 | It is Invesco’s policy to chart the Fund’s oldest share class(es). Because Investor Class shares do not have a sales charge, we also show the oldest share class with a sales charge, Class C shares. |
6 | Invesco Energy Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (3/28/02) | 4.16% |
10 Years | –0.61 |
5 Years | –13.16 |
1 Year | –21.08 |
Class C Shares | |
Inception (2/14/00) | 5.66% |
10 Years | –0.80 |
5 Years | –12.83 |
1 Year | –17.95 |
Class Y Shares | |
Inception (10/3/08) | –1.20% |
10 Years | 0.20 |
5 Years | –11.95 |
1 Year | –16.29 |
Investor Class Shares | |
Inception (1/19/84) | 6.59% |
10 Years | –0.05 |
5 Years | –12.17 |
1 Year | –16.47 |
Class R5 Shares | |
Inception (1/31/06) | –0.97% |
10 Years | 0.35 |
5 Years | –11.80 |
1 Year | –16.12 |
Class R6 Shares | |
10 Years | 0.04% |
5 Years | –12.01 |
1 Year | –16.15 |
Performance includes litigation proceeds. Had these proceeds not been received, total returns would have been lower. |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (3/28/02) | 4.16% |
10 Years | 0.38 |
5 Years | –12.25 |
1 Year | –13.16 |
Class C Shares | |
Inception (2/14/00) | 5.66% |
10 Years | 0.19 |
5 Years | –11.92 |
1 Year | –9.70 |
Class Y Shares | |
Inception (10/3/08) | –1.23% |
10 Years | 1.20 |
5 Years | –11.02 |
1 Year | –7.85 |
Investor Class Shares | |
Inception (1/19/84) | 6.59% |
10 Years | 0.95 |
5 Years | –11.24 |
1 Year | –8.08 |
Class R5 Shares | |
Inception (1/31/06) | –1.00% |
10 Years | 1.35 |
5 Years | –10.88 |
1 Year | –7.73 |
Class R6 Shares | |
10 Years | 1.04% |
5 Years | –11.08 |
1 Year | –7.67 |
Performance includes litigation proceeds. Had these proceeds not been received, total returns would have been lower. |
7 | Invesco Energy Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class Y sharesand Investor Class sharesare available only to certain investors. Please see the prospectus for more information. |
■ | Class R5 shares andClass R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its deriva- |
tive positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. | |
■ | Emerging markets securities risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably. In addition, investments in emerging markets securities may also be subject to additional transaction costs, delays in settlement procedures, and lack of timely information. |
■ | Energy sector risk. The Fund will concentrate its investments in the securities of issuers engaged primarily in energy-related industries. Changes in worldwide energy prices, exploration and production spending, government regulation, world events, economic conditions, exchange rates, transportation and storage costs and labor relations can affect companies in the energy sector. In addition, these companies are at an increased risk of civil liability and environmental damage |
claims, and are also subject to the risk of loss from terrorism and natural disasters. | |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk.The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock |
8 | Invesco Energy Fund |
prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | TheS&P 500® Index is an unmanaged index considered representative of the US stock market. |
■ | TheMSCI World Energy Index is designed to capture the performance of energy stocks across developed market countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. |
■ | TheLipper Natural Resource Funds Index is an unmanaged index considered representative of natural resource funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco Energy Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–99.33% | |||
Commodity Chemicals–1.24% | |||
LG Chem Ltd. (South Korea) | 17,017 | $5,271,996 | |
Diversified Metals & Mining–2.71% | |||
Glencore PLC (Switzerland)(b) | 1,707,362 | 6,815,201 | |
Turquoise Hill Resources Ltd. (Mongolia)(b) | 3,113,789 | 4,670,684 | |
11,485,885 | |||
Integrated Oil & Gas–34.67% | |||
BP PLC ADR (United Kingdom) | 600,082 | 26,241,586 | |
Chevron Corp. | 212,420 | 25,503,145 | |
Exxon Mobil Corp. | 249,934 | 20,064,702 | |
Occidental Petroleum Corp. | 216,968 | 12,775,076 | |
Royal Dutch Shell PLC Class A, ADR (United Kingdom) | 409,640 | 26,024,429 | |
Suncor Energy, Inc. (Canada) | 751,604 | 24,786,045 | |
TOTAL S.A. (France) | 209,736 | 11,704,477 | |
147,099,460 | |||
Oil & Gas Drilling–3.87% | |||
Ensco Rowan PLC, Class A | 274,214 | 3,830,770 | |
Helmerich & Payne, Inc. | 214,752 | 12,567,287 | |
16,398,057 | |||
Oil & Gas Equipment & Services–11.88% | |||
Baker Hughes, a GE Co., Class A | 385,288 | 9,254,618 | |
Core Laboratories N.V. | 74,433 | 4,718,308 | |
Halliburton Co. | 518,447 | 14,687,603 | |
Oceaneering International, Inc.(b) | 245,543 | 4,714,425 | |
Schlumberger Ltd. | 137,003 | 5,847,288 | |
Superior Energy Services, Inc.(b) | 1,132,898 | 4,067,104 | |
Tenaris S.A. ADR (Luxembourg) | 249,119 | 6,910,561 | |
Tidewater, Inc. Series A, Wts. expiring 07/31/2023(b) | 24,724 | 87,770 | |
Tidewater, Inc. Series B, Wts. expiring 07/31/2023(b) | 26,728 | 90,341 | |
50,378,018 | |||
Oil & Gas Exploration & Production–39.35% | |||
Anadarko Petroleum Corp. | 104,733 | 7,629,799 |
Shares | Value | ||
Oil & Gas Exploration & Production–(continued) | |||
Cabot Oil & Gas Corp. | 518,084 | $13,413,195 | |
Canadian Natural Resources Ltd. (Canada) | 823,339 | 24,717,993 | |
Cobalt International Energy, Inc.(b)(c) | 526,022 | 0 | |
Concho Resources, Inc. | 40,632 | 4,688,120 | |
Devon Energy Corp. | 521,574 | 16,763,388 | |
EOG Resources, Inc. | 88,894 | 8,538,269 | |
Hess Corp. | 329,758 | 21,144,083 | |
Laredo Petroleum, Inc.(b) | 814,859 | 2,460,874 | |
Matador Resources Co.(b) | 201,935 | 3,976,100 | |
Noble Energy, Inc. | 989,373 | 26,772,433 | |
PrairieSky Royalty Ltd. (Canada) | 1,205,162 | 17,370,813 | |
Range Resources Corp. | 1,677,502 | 15,164,618 | |
Tullow Oil PLC (Ghana) | 1,465,897 | 4,292,903 | |
166,932,588 | |||
Oil & Gas Refining & Marketing–3.31% | |||
Phillips 66 | 149,017 | 14,047,833 | |
Oil & Gas Storage & Transportation–1.00% | |||
Plains All American Pipeline, L.P. | 183,991 | 4,259,392 | |
Specialty Chemicals–1.30% | |||
Albemarle Corp. | 73,222 | 5,496,043 | |
Total Common Stocks & Other Equity Interests (Cost $595,275,860) | 421,369,272 | ||
Money Market Funds–1.28% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d) | 1,909,297 | 1,909,297 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d) | 1,363,371 | 1,363,780 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(d) | 2,182,054 | 2,182,054 | |
Total Money Market Funds (Cost $5,455,131) | 5,455,131 | ||
TOTAL INVESTMENTS IN SECURITIES–100.61% (Cost $600,730,991) | 426,824,403 | ||
OTHER ASSETS LESS LIABILITIES–(0.61)% | (2,600,865) | ||
NET ASSETS–100.00% | $424,223,538 |
ADR | – American Depositary Receipt |
Wts. | – Warrants |
(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 valued using significant unobservable inputs (Level 3). See Note 3. |
(d) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
10 | Invesco Energy Fund |
Assets: | |
Investments in securities, at value (Cost $595,275,860) | $421,369,272 |
Investments in affiliated money market funds, at value (Cost $5,455,131) | 5,455,131 |
Foreign currencies, at value (Cost $269,523) | 267,435 |
Receivable for: | |
Investments sold | 916,341 |
Fund shares sold | 103,194 |
Dividends | 403,962 |
Investment for trustee deferred compensation and retirement plans | 254,573 |
Other assets | 36,131 |
Total assets | 428,806,039 |
Liabilities: | |
Payable for: | |
Investments purchased | 2,841,627 |
Fund shares reacquired | 704,057 |
Amount due custodian | 262,419 |
Accrued fees to affiliates | 388,834 |
Accrued trustees’ and officers’ fees and benefits | 1,935 |
Accrued other operating expenses | 104,529 |
Trustee deferred compensation and retirement plans | 279,100 |
Total liabilities | 4,582,501 |
Net assets applicable to shares outstanding | $424,223,538 |
Net assets consist of: | |
Shares of beneficial interest | $771,717,737 |
Distributable earnings | (347,494,199) |
$424,223,538 | |
Net Assets: | |
Class A | $248,396,429 |
Class C | $33,036,486 |
Class Y | $38,550,321 |
Investor Class | $97,716,076 |
Class R5 | $6,051,565 |
Class R6 | $472,661 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 11,799,952 |
Class C | 1,836,086 |
Class Y | 1,832,162 |
Investor Class | 4,662,675 |
Class R5 | 280,910 |
Class R6 | 21,957 |
Class A: | |
Net asset value per share | $21.05 |
Maximum offering price per share (Net asset value of $21.05 ÷ 94.50%) | $22.28 |
Class C: | |
Net asset value and offering price per share | $17.99 |
Class Y: | |
Net asset value and offering price per share | $21.04 |
Investor Class: | |
Net asset value and offering price per share | $20.96 |
Class R5: | |
Net asset value and offering price per share | $21.54 |
Class R6: | |
Net asset value and offering price per share | $21.53 |
11 | Invesco Energy Fund |
Investment income: | |
Dividends (net of foreign withholding taxes of $724,340) | $13,138,089 |
Dividends from affiliated money market funds | 154,917 |
Total investment income | 13,293,006 |
Expenses: | |
Advisory fees | 3,716,016 |
Administrative services fees | 123,546 |
Custodian fees | 17,560 |
Distribution fees: | |
Class A | 694,197 |
Class C | 678,528 |
Investor Class | 289,125 |
Transfer agent fees — A, C, Y and Investor Class | 1,427,152 |
Transfer agent fees — R5 | 7,045 |
Transfer agent fees — R6 | 243 |
Trustees’ and officers’ fees and benefits | 27,578 |
Registration and filing fees | 95,331 |
Reports to shareholders | 78,911 |
Professional services fees | 52,040 |
Other | 19,368 |
Total expenses | 7,226,640 |
Less: Fees waived and expense offset arrangement(s) | (20,865) |
Net expenses | 7,205,775 |
Net investment income | 6,087,231 |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Investment securities | (33,171,568) |
Foreign currencies | (58,259) |
(33,229,827) | |
Change in net unrealized appreciation (depreciation) of: | |
Investment securities | (68,987,079) |
Foreign currencies | 2,706 |
(68,984,373) | |
Net realized and unrealized gain (loss) | (102,214,200) |
Net increase (decrease) in net assets resulting from operations | $(96,126,969) |
12 | Invesco Energy Fund |
2019 | 2018 | |
Operations: | ||
Net investment income | $6,087,231 | $12,582,605 |
Net realized gain (loss) | (33,229,827) | 3,307,126 |
Change in net unrealized appreciation (depreciation) | (68,984,373) | 25,678,865 |
Net increase (decrease) in net assets resulting from operations | (96,126,969) | 41,568,596 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (6,036,516) | (7,518,092) |
Class B | — | (16,198) |
Class C | (1,224,241) | (999,111) |
Class Y | (1,152,559) | (1,605,135) |
Investor Class | (2,607,774) | (3,120,324) |
Class R5 | (184,086) | (243,236) |
Class R6 | (11,017) | (3,052) |
Total distributions to shareholders from distributable earnings | (11,216,193) | (13,505,148) |
Share transactions–net: | ||
Class A | (20,349,179) | (85,285,570) |
Class B | — | (3,366,435) |
Class C | (42,670,624) | (32,746,572) |
Class Y | (6,390,142) | (10,045,256) |
Investor Class | (14,783,040) | (29,674,044) |
Class R5 | (665,191) | (1,125,861) |
Class R6 | 350,070 | 169,682 |
Net increase (decrease) in net assets resulting from share transactions | (84,508,106) | (162,074,056) |
Net increase (decrease) in net assets | (191,851,268) | (134,010,608) |
Net assets: | ||
Beginning of year | 616,074,806 | 750,085,414 |
End of year | $424,223,538 | $616,074,806 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
13 | Invesco Energy Fund |
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||||
Year ended 04/30/19 | $25.91 | $0.29 | $(4.61) | $(4.32) | $(0.54) | $— | $(0.54) | $21.05 | (16.48)% | $248,396 | 1.32%(d) | 1.32%(d) | 1.25%(d) | 17% |
Year ended 04/30/18 | 24.54 | 0.49(e) | 1.44 | 1.93 | (0.56) | — | (0.56) | 25.91 | 8.08 | 323,247 | 1.33 | 1.33 | 2.07(e) | 9 |
Year ended 04/30/17 | 27.04 | 0.22 | (2.41) | (2.19) | (0.31) | — | (0.31) | 24.54 | (8.29) | 393,998 | 1.27 | 1.27 | 0.84 | 22 |
Year ended 04/30/16 | 35.41 | 0.27 | (8.28)(f) | (8.01) | (0.15) | (0.21) | (0.36) | 27.04 | (22.45)(f) | 521,910 | 1.26 | 1.27 | 1.05 | 22 |
Year ended 04/30/15 | 49.87 | 0.29 | (10.33) | (10.04) | (0.13) | (4.29) | (4.42) | 35.41 | (18.60) | 628,443 | 1.16 | 1.17 | 0.69 | 27 |
Class C | ||||||||||||||
Year ended 04/30/19 | 22.17 | 0.10 | (3.93) | (3.83) | (0.35) | — | (0.35) | 17.99 | (17.14) | 33,036 | 2.07(d) | 2.07(d) | 0.50(d) | 17 |
Year ended 04/30/18 | 20.88 | 0.26(e) | 1.24 | 1.50 | (0.21) | — | (0.21) | 22.17 | 7.29 | 92,349 | 2.08 | 2.08 | 1.32(e) | 9 |
Year ended 04/30/17 | 23.05 | 0.02 | (2.07) | (2.05) | (0.12) | — | (0.12) | 20.88 | (8.97) | 120,722 | 2.02 | 2.02 | 0.09 | 22 |
Year ended 04/30/16 | 30.39 | 0.06 | (7.11)(f) | (7.05) | (0.08) | (0.21) | (0.29) | 23.05 | (23.03)(f) | 156,964 | 2.01 | 2.02 | 0.30 | 22 |
Year ended 04/30/15 | 43.83 | (0.02) | (9.13) | (9.15) | — | (4.29) | (4.29) | 30.39 | (19.21) | 194,893 | 1.91 | 1.92 | (0.06) | 27 |
Class Y | ||||||||||||||
Year ended 04/30/19 | 25.93 | 0.35 | (4.63) | (4.28) | (0.61) | — | (0.61) | 21.04 | (16.29) | 38,550 | 1.07(d) | 1.07(d) | 1.50(d) | 17 |
Year ended 04/30/18 | 24.63 | 0.55(e) | 1.43 | 1.98 | (0.68) | — | (0.68) | 25.93 | 8.34 | 56,061 | 1.08 | 1.08 | 2.32(e) | 9 |
Year ended 04/30/17 | 27.12 | 0.29 | (2.41) | (2.12) | (0.37) | — | (0.37) | 24.63 | (8.03) | 63,783 | 1.02 | 1.02 | 1.09 | 22 |
Year ended 04/30/16 | 35.47 | 0.34 | (8.31)(f) | (7.97) | (0.17) | (0.21) | (0.38) | 27.12 | (22.28)(f) | 50,706 | 1.01 | 1.02 | 1.30 | 22 |
Year ended 04/30/15 | 50.00 | 0.38 | (10.37) | (9.99) | (0.25) | (4.29) | (4.54) | 35.47 | (18.38) | 78,476 | 0.91 | 0.92 | 0.94 | 27 |
Investor Class | ||||||||||||||
Year ended 04/30/19 | 25.80 | 0.29 | (4.59) | (4.30) | (0.54) | — | (0.54) | 20.96 | (16.47) | 97,716 | 1.32(d) | 1.32(d) | 1.25(d) | 17 |
Year ended 04/30/18 | 24.44 | 0.49(e) | 1.43 | 1.92 | (0.56) | — | (0.56) | 25.80 | 8.07 | 136,141 | 1.33 | 1.33 | 2.07(e) | 9 |
Year ended 04/30/17 | 26.93 | 0.22 | (2.40) | (2.18) | (0.31) | — | (0.31) | 24.44 | (8.29) | 159,402 | 1.27 | 1.27 | 0.84 | 22 |
Year ended 04/30/16 | 35.27 | 0.27 | (8.25)(f) | (7.98) | (0.15) | (0.21) | (0.36) | 26.93 | (22.45)(f) | 210,374 | 1.26 | 1.27 | 1.05 | 22 |
Year ended 04/30/15 | 49.69 | 0.29 | (10.29) | (10.00) | (0.13) | (4.29) | (4.42) | 35.27 | (18.59) | 295,318 | 1.16 | 1.17 | 0.69 | 27 |
Class R5 | ||||||||||||||
Year ended 04/30/19 | 26.53 | 0.40 | (4.73) | (4.33) | (0.66) | — | (0.66) | 21.54 | (16.12) | 6,052 | 0.90(d) | 0.90(d) | 1.67(d) | 17 |
Year ended 04/30/18 | 25.23 | 0.61(e) | 1.46 | 2.07 | (0.77) | — | (0.77) | 26.53 | 8.51 | 8,092 | 0.91 | 0.91 | 2.49(e) | 9 |
Year ended 04/30/17 | 27.77 | 0.34 | (2.46) | (2.12) | (0.42) | — | (0.42) | 25.23 | (7.88) | 8,871 | 0.86 | 0.86 | 1.25 | 22 |
Year ended 04/30/16 | 36.24 | 0.40 | (8.48)(f) | (8.08) | (0.18) | (0.21) | (0.39) | 27.77 | (22.10)(f) | 22,298 | 0.84 | 0.85 | 1.47 | 22 |
Year ended 04/30/15 | 50.97 | 0.44 | (10.57) | (10.13) | (0.31) | (4.29) | (4.60) | 36.24 | (18.30) | 32,046 | 0.79 | 0.80 | 1.06 | 27 |
Class R6 | ||||||||||||||
Year ended 04/30/19 | 26.52 | 0.39 | (4.72) | (4.33) | (0.66) | — | (0.66) | 21.53 | (16.11) | 473 | 0.89(d) | 0.89(d) | 1.68(d) | 17 |
Year ended 04/30/18 | 25.23 | 0.62(e) | 1.46 | 2.08 | (0.79) | — | (0.79) | 26.52 | 8.55 | 185 | 0.90 | 0.90 | 2.50(e) | 9 |
Year ended 04/30/17(g) | 26.31 | 0.03 | (1.11) | (1.08) | — | — | — | 25.23 | (4.11) | 10 | 0.81(h) | 0.81(h) | 1.30(h) | 22 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(d) | Ratios are based on average daily net assets (000’s omitted) of $277,679, $67,853, $49,388, $115,650 , $7,002 and $277 for Class A, Class C, Class Y, Investor Class, Class R5 and Class R6 shares, respectively. |
(e) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the period. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.32 and 0.87%, $0.09 and 0.12%, $0.38 and 1.12%, $0.32 and 0.87%, $0.44 and 1.29% and $0.45 and 1.30% for Class A, Class C, Class Y, Investor Class, Class R5 and Class R6 shares, respectively. |
(f) | Includes litigation proceeds received during the period. Had these litigation proceeds not been received, Net gains (losses) on securities (both realized and unrealized) per share would have been $(8.35), $(7.18), $(8.38), $(8.32) and $(8.55) for Class A, Class C, Class Y, Investor Class and Class R5 shares, respectively. Total returns would have been lower. |
(g) | Commencement date of April 4, 2017. |
(h) | Annualized. |
14 | Invesco Energy Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
15 | Invesco Energy Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for 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 |
16 | Invesco Energy Fund |
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. |
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
K. | Other Risks- The Fund’s investments are concentrated in a comparatively narrow segment of the economy, which may make the Fund more volatile. |
Average Daily Net Assets | Rate |
First $350 million | 0.75% |
Next $350 million | 0.65% |
Next $1.3 billion | 0.55% |
Next $2 billion | 0.45% |
Next $2 billion | 0.40% |
Next $2 billion | 0.375% |
Over $8 billion | 0.35% |
17 | Invesco Energy Fund |
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
Common Stocks & Other Equity Interests | $393,284,695 | $28,084,577 | $0 | $421,369,272 |
Money Market Funds | 5,455,131 | — | — | 5,455,131 |
Total Investments | $398,739,826 | $28,084,577 | $0 | $426,824,403 |
18 | Invesco Energy Fund |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $11,216,193 | $13,505,148 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Undistributed ordinary income | $1,014,031 |
Net unrealized appreciation (depreciation) — investments | (179,062,458) |
Net unrealized appreciation (depreciation) — foreign currencies | (3,386) |
Temporary book/tax differences | (238,955) |
Capital loss carryforward | (169,203,431) |
Shares of beneficial interest | 771,717,737 |
Total net assets | $424,223,538 |
Capital Loss Carryforward* | |||
Expiration | Short-Term | Long-Term | Total |
Not subject to expiration | $12,291,622 | $156,911,809 | $169,203,431 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $31,402,324 |
Aggregate unrealized (depreciation) of investments | (210,464,782) |
Net unrealized appreciation (depreciation) of investments | $(179,062,458) |
19 | Invesco Energy Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 1,464,416 | $34,132,389 | 1,931,192 | $45,912,812 | |
Class B(b) | — | — | 1,343 | 27,448 | |
Class C | 236,293 | 4,670,105 | 423,390 | 8,613,865 | |
Class Y | 1,091,434 | 26,784,693 | 847,479 | 20,399,788 | |
Investor Class | 565,514 | 13,139,156 | 788,760 | 18,695,135 | |
Class R5 | 100,263 | 2,443,016 | 134,215 | 3,318,171 | |
Class R6 | 26,104 | 585,421 | 8,439 | 213,623 | |
Issued as reinvestment of dividends: | |||||
Class A | 291,586 | 5,645,072 | 302,405 | 7,124,658 | |
Class B(b) | — | — | 736 | 15,321 | |
Class C | 65,943 | 1,094,000 | 45,140 | 912,278 | |
Class Y | 47,535 | 918,856 | 54,393 | 1,280,949 | |
Investor Class | 129,930 | 2,503,751 | 127,951 | 3,001,725 | |
Class R5 | 9,257 | 183,021 | 10,033 | 241,599 | |
Class R6 | 545 | 10,764 | 114 | 2,750 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 71,192 | 1,909,364 | |
Class B | — | — | (83,394) | (1,909,364) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 1,275,937 | 25,590,990 | - | - | |
Class C | (1,489,808) | (25,590,990) | - | - | |
Reacquired: | |||||
Class A | (3,705,917) | (85,717,630) | (5,885,253) | (140,232,404) | |
Class B(b) | — | — | (72,139) | (1,499,840) | |
Class C | (1,142,265) | (22,843,739) | (2,083,877) | (42,272,715) | |
Class Y | (1,468,924) | (34,093,691) | (1,329,890) | (31,725,993) | |
Investor Class | (1,309,220) | (30,425,947) | (2,162,883) | (51,370,904) | |
Class R5 | (133,548) | (3,291,228) | (190,990) | (4,685,631) | |
Class R6 | (11,686) | (246,115) | (1,943) | (46,691) | |
Net increase (decrease) in share activity | (3,956,611) | $(84,508,106) | (7,063,587) | $(162,074,056) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 23% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
20 | Invesco Energy Fund |
21 | Invesco Energy Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $952.90 | $6.68 | $1,017.95 | $6.90 | 1.38% |
Class C | 1,000.00 | 949.40 | 10.30 | 1,014.23 | 10.64 | 2.13 |
Class Y | 1,000.00 | 954.20 | 5.48 | 1,019.19 | 5.66 | 1.13 |
Investor Class | 1,000.00 | 953.20 | 6.68 | 1,017.95 | 6.90 | 1.38 |
Class R5 | 1,000.00 | 955.10 | 4.41 | 1,020.28 | 4.56 | 0.91 |
Class R6 | 1,000.00 | 954.90 | 4.36 | 1,020.33 | 4.51 | 0.90 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
22 | Invesco Energy Fund |
Federal and State Income Tax | |
Qualified Dividend Income* | 93.70% |
Corporate Dividends Received Deduction* | 100.00% |
U.S. Treasury Obligations* | 0.00% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
23 | Invesco Energy Fund |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Energy Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Energy Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Energy Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Energy Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Energy Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | I-ENE-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Gold & Precious Metals Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Gold & Precious Metals Fund |
Class A Shares | –11.90% |
Class C Shares | –12.40 |
Class Y Shares | –11.66 |
Investor Class Shares | –11.84 |
Class R6 Shares | –11.40 |
S&P 500 Index▼ (Broad Market Index) | 13.49 |
Philadelphia Gold & Silver Index (price only)▼ (Style-Specific Index) | –12.31 |
Lipper Precious Metals Equity Funds Index■ (Peer Group Index) | –8.03 |
Source(s):▼FactSet Research Systems Inc.;■ Lipper Inc. |
Portfolio Composition | |
By sector | % of total net assets |
Gold | 69.58% |
Diversified Metals & Mining | 11.40 |
Investment Companies - Exchange-Traded Funds | 7.65 |
Silver | 5.57 |
Precious Metals & Minerals | 4.59 |
Other Sectors, Each Less than 2% of Net Assets | 0.60 |
Money Market Funds Plus Other Assets Less Liabilities | 0.61 |
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | Torex Gold Resources, Inc. | 5.50% |
2. | Newmont Goldcorp Corp. | 5.18 |
3. | Sandstorm Gold Ltd. | 5.17 |
4. | Agnico Eagle Mines Ltd. | 5.16 |
5. | Franco-Nevada Corp. | 4.71 |
6. | Continental Gold, Inc. | 4.53 |
7. | Wheaton Precious Metals Corp. | 4.53 |
8. | Kinross Gold Corp. | 4.43 |
9. | Turquoise Hill Resources Ltd. | 4.39 |
10. | Barrick Gold Corp. | 4.37 |
Total Net Assets | $ 186.7 million |
Total Number of Holdings* | 42 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Gold & Precious Metals Fund |
5 | Invesco Gold & Precious Metals Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: Lipper Inc. |
3 | It is Invesco’s policy to chart the Fund’s oldest share class(es). Because Investor Class shares do not have a sales charge, we also show the oldest share class with a sales charge, Class C shares. |
6 | Invesco Gold & Precious Metals Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (3/28/02) | 3.86% |
10 Years | –3.26 |
5 Years | –5.93 |
1 Year | –16.75 |
Class C Shares | |
Inception (2/14/00) | 5.36% |
10 Years | –3.44 |
5 Years | –5.56 |
1 Year | –13.28 |
Class Y Shares | |
Inception (10/3/08) | –1.31% |
10 Years | –2.49 |
5 Years | –4.61 |
1 Year | –11.66 |
Investor Class Shares | |
Inception (1/19/84) | –0.21% |
10 Years | –2.73 |
5 Years | –4.82 |
1 Year | –11.84 |
Class R6 Shares | |
10 Years | –2.62% |
5 Years | –4.69 |
1 Year | –11.40 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (3/28/02) | 4.34% |
10 Years | –3.00 |
5 Years | –3.80 |
1 Year | –9.57 |
Class C Shares | |
Inception (2/14/00) | 5.80% |
10 Years | –3.20 |
5 Years | –3.44 |
1 Year | –5.99 |
Class Y Shares | |
Inception (10/3/08) | –0.62% |
10 Years | –2.25 |
5 Years | –2.50 |
1 Year | –4.18 |
Investor Class Shares | |
Inception (1/19/84) | 0.00% |
10 Years | –2.47 |
5 Years | –2.69 |
1 Year | –4.24 |
Class R6 Shares | |
10 Years | –2.40% |
5 Years | –2.57 |
1 Year | –4.17 |
7 | Invesco Gold & Precious Metals Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class Y sharesand Investor Class shares are available only to certain investors. Please see the prospectus for more information. |
■ | Class R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Canada risk. Due to the Fund’s potentially significant exposure to companies that are domiciled in Canada, the Fund is particularly sensitive to political, economic and social conditions in that country. Canada is a major producer of metals. The Canadian economy is especially dependent on the demand for, and supply of, natural resources, and the Canadian market is relatively concentrated in issuers involved in the production and distribution of natural resources. Any adverse events that affect Canada’s major industries may have a negative impact on the overall Canadian economy and the shares of the Fund. |
■ | Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create lever- |
age risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. | |
■ | Emerging markets securities risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably. In addition, investments in emerging markets securities may also be subject to additional |
transaction costs, delays in settlement procedures, and lack of timely information. | |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. |
■ | Gold bullion risk. To the extent the Fund invests in gold bullion, it will earn no income from such investment. Appreciation in the market price of gold is the sole manner in which the Fund can realize gains on gold bullion, and such investments may incur higher storage and custody costs as compared to purchasing, holding and selling more traditional investments. |
■ | Gold and precious metals sector risk. The Fund will concentrate its investments in the securities of issuers primarily engaged in gold and precious metals-related industries. Fluctuations in the price of gold and precious metals resulting from supply and demand imbalances, increased mining, transportation or storage costs or other market forces will have a significant impact on the profitability of companies in the gold and precious metals |
8 | Invesco Gold & Precious Metals Fund |
sector. The price of gold and precious metals may also be affected by changes in political or economic conditions of countries where gold and precious metals companies are located. |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk.The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | TheS&P 500®Index is an un managed index considered representative of the US stock market. |
■ | ThePhiladelphia Gold & Silver Index (price only) is a capitalization-weighted, price only index on the Philadelphia Stock Exchange that includes the leading companies involved in mining gold and silver. |
■ | TheLipper Precious Metals Equity Funds Index is an un managed index considered representative of precious metals funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco Gold & Precious Metals Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–99.39% | |||
Australia–2.74% | |||
Cardinal Resources Ltd.(a) | 4,955,462 | $1,331,616 | |
Gold Road Resources Ltd.(a) | 2,961,739 | 1,952,167 | |
New Century Resources Ltd.(a) | 3,492,501 | 1,834,219 | |
5,118,002 | |||
Brazil–1.01% | |||
Yamana Gold, Inc. | 858,917 | 1,881,028 | |
Canada–70.25% | |||
Agnico Eagle Mines Ltd. | 232,587 | 9,631,428 | |
Alamos Gold, Inc., Class A | 1,310,008 | 6,082,145 | |
B2Gold Corp.(a) | 2,314,676 | 6,289,035 | |
Barrick Gold Corp. | 641,180 | 8,155,810 | |
Belo Sun Mining Corp.(a) | 8,558,904 | 1,565,225 | |
Chesapeake Gold Corp.(a) | 638,403 | 819,626 | |
Continental Gold, Inc.(a) | 4,169,682 | 8,465,727 | |
Detour Gold Corp.(a) | 554,035 | 4,921,263 | |
Franco-Nevada Corp. | 122,645 | 8,787,560 | |
Guyana Goldfields, Inc.(a) | 2,016,693 | 1,399,959 | |
INV Metals, Inc.(a) | 2,646,266 | 780,231 | |
Ivanhoe Mines Ltd., Class A(a) | 2,633,254 | 6,407,709 | |
Kinross Gold Corp.(a) | 2,600,711 | 8,269,783 | |
Lundin Gold, Inc.(a) | 1,826,317 | 7,156,949 | |
North American Palladium Ltd. | 104,337 | 992,981 | |
Osisko Mining, Inc.(a) | 1,115,908 | 2,315,611 | |
Premier Gold Mines Ltd.(a) | 2,563,570 | 3,214,748 | |
Pretium Resources, Inc.(a) | 800,586 | 6,077,450 | |
Progress Minerals, Inc., (Acquired 06/26/2018; Cost $1,215,733)(a)(b)(c)(d) | 6,474,020 | 1,208,110 | |
Reunion Gold Corp.(a) | 5,100,767 | 723,405 | |
Roxgold, Inc.(a) | 1,974,887 | 1,282,490 | |
Sandstorm Gold Ltd.(a) | 1,793,751 | 9,653,612 | |
SEMAFO, Inc.(a) | 2,228,422 | 5,921,611 | |
TMAC Resources, Inc.(a) | 786,657 | 2,278,293 | |
Torex Gold Resources, Inc.(a) | 1,074,819 | 10,277,250 | |
Wheaton Precious Metals Corp. | 389,971 | 8,454,571 | |
131,132,582 |
Shares | Value | ||
Ivory Coast–2.19% | |||
Endeavour Mining Corp.(a) | 287,362 | $4,079,738 | |
Mexico–2.37% | |||
Fresnillo PLC | 452,371 | 4,429,205 | |
Mongolia–4.39% | |||
Turquoise Hill Resources Ltd.(a) | 5,489,455 | 8,195,051 | |
Switzerland–1.14% | |||
Glencore PLC(a) | 535,634 | 2,138,066 | |
Tanzania–0.83% | |||
Acacia Mining PLC(a) | 803,070 | 1,541,930 | |
United States–13.89% | |||
Boart Longyear Ltd.(a) | 8,083,336 | 22,793 | |
Boart Longyear Ltd., Wts. expiring 09/13/2024(a) | 11,188,146 | 7,887 | |
Coeur Mining, Inc.(a) | 538,541 | 1,944,133 | |
iShares® Gold Trust - ETF(a) | 590,000 | 7,251,100 | |
Newmont Goldcorp Corp. | 311,581 | 9,677,706 | |
SPDR ® Gold Trust–ETF(a) | 58,000 | 7,029,600 | |
25,933,219 | |||
Zambia–0.58% | |||
First Quantum Minerals Ltd. | 102,904 | 1,086,879 | |
Total Common Stocks & Other Equity Interests (Cost $239,912,426) | 185,535,700 | ||
Money Market Funds–0.70% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(e) | 456,375 | 456,375 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(e) | 326,028 | 326,126 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(e) | 521,572 | 521,572 | |
Total Money Market Funds (Cost $1,304,073) | 1,304,073 | ||
TOTAL INVESTMENTS IN SECURITIES—100.09% (Cost $241,216,499) | 186,839,773 | ||
OTHER ASSETS LESS LIABILITIES–(0.09)% | (166,010) | ||
NET ASSETS–100.00% | $186,673,763 |
ETF | – Exchange-Traded Fund |
SPDR | – Standard & Poor’s Depositary Receipt |
Wts. | – Warrants |
10 | Invesco Gold & Precious Metals Fund |
(a) | Non-income producing security. |
(b) | Affiliated company during the period. The Investment Company Act of 1940 defines an “affiliated person” as an issuance in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The value of this security as of April 30, 2019 represented less than 1% of the Fund’s Net Assets. See Note 4. |
(c) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at April 30, 2019 represented less than 1% of the Fund’s Net Assets. |
(d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(e) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
11 | Invesco Gold & Precious Metals Fund |
Assets: | |
Investments in securities, at value (Cost $238,696,693) | $184,327,590 |
Investments in affiliates, at value (Cost $2,519,806) | 2,512,183 |
Foreign currencies, at value (Cost $295) | 295 |
Receivable for: | |
Fund shares sold | 66,107 |
Dividends | 407,582 |
Investment for trustee deferred compensation and retirement plans | 101,706 |
Other assets | 28,952 |
Total assets | 187,444,415 |
Liabilities: | |
Payable for: | |
Fund shares reacquired | 251,274 |
Amount due custodian | 118,780 |
Accrued fees to affiliates | 184,645 |
Accrued trustees’ and officers’ fees and benefits | 1,702 |
Accrued other operating expenses | 103,207 |
Trustee deferred compensation and retirement plans | 111,044 |
Total liabilities | 770,652 |
Net assets applicable to shares outstanding | $186,673,763 |
Net assets consist of: | |
Shares of beneficial interest | $457,570,254 |
Distributable earnings | (270,896,491) |
$186,673,763 |
Net Assets: | |
Class A | $91,265,557 |
Class C | $14,345,060 |
Class Y | $30,122,048 |
Investor Class | $50,814,613 |
Class R6 | $126,485 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 27,411,280 |
Class C | 4,321,571 |
Class Y | 8,830,736 |
Investor Class | 15,169,666 |
Class R6 | 36,975 |
Class A: | |
Net asset value per share | $3.33 |
Maximum offering price per share (Net asset value of $3.33 ÷ 94.50%) | $3.52 |
Class C: | |
Net asset value and offering price per share | $3.32 |
Class Y: | |
Net asset value and offering price per share | $3.41 |
Investor Class: | |
Net asset value and offering price per share | $3.35 |
Class R6: | |
Net asset value and offering price per share | $3.42 |
12 | Invesco Gold & Precious Metals Fund |
Investment income: | |
Dividends (net of foreign withholding taxes of $78,081) | $1,287,060 |
Dividends from affiliated money market funds | 45,939 |
Total investment income | 1,332,999 |
Expenses: | |
Advisory fees | 1,537,116 |
Administrative services fees | 42,842 |
Custodian fees | 19,574 |
Distribution fees: | |
Class A | 241,625 |
Class C | 193,852 |
Investor Class | 142,679 |
Transfer agent fees — A, C, Y and Investor | 687,707 |
Transfer agent fees — R6 | 235 |
Trustees’ and officers’ fees and benefits | 23,905 |
Registration and filing fees | 76,558 |
Reports to shareholders | 53,389 |
Professional services fees | 50,378 |
Other | 14,524 |
Total expenses | 3,084,384 |
Less: Fees waived and expense offset arrangement(s) | (9,799) |
Net expenses | 3,074,585 |
Net investment income (loss) | (1,741,586) |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Investment securities | (11,109,071) |
Foreign currencies | (3,546) |
(11,112,617) | |
Change in net unrealized appreciation (depreciation) of: | |
Investment securities | (14,842,509) |
Foreign currencies | (877) |
(14,843,386) | |
Net realized and unrealized gain (loss) | (25,956,003) |
Net increase (decrease) in net assets resulting from operations | $(27,697,589) |
13 | Invesco Gold & Precious Metals Fund |
2019 | 2018 | |
Operations: | ||
Net investment income (loss) | $(1,741,586) | $(2,989,931) |
Net realized gain (loss) | (11,112,617) | 9,523,216 |
Change in net unrealized appreciation (depreciation) | (14,843,386) | (28,190,429) |
Net increase (decrease) in net assets resulting from operations | (27,697,589) | (21,657,144) |
Distributions to shareholders from distributable earnings(1): | ||
Class A | — | (2,176,312) |
Class B | — | (15,662) |
Class C | — | (370,585) |
Class Y | — | (822,520) |
Investor Class | — | (1,210,692) |
Class R6 | — | (10,479) |
Total distributions to shareholders from distributable earnings | — | (4,606,250) |
Share transactions–net: | ||
Class A | (9,719,980) | (19,718,763) |
Class B | — | (1,958,163) |
Class C | (7,585,965) | (4,025,675) |
Class Y | (3,145,358) | (3,488,354) |
Investor Class | (8,693,917) | (4,499,995) |
Class R6 | (388,489) | 591,998 |
Net increase (decrease) in net assets resulting from share transactions | (29,533,709) | (33,098,952) |
Net increase (decrease) in net assets | (57,231,298) | (59,362,346) |
Net assets: | ||
Beginning of year | 243,905,061 | 303,267,407 |
End of year | $186,673,763 | $243,905,061 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net investment income. |
14 | Invesco Gold & Precious Metals Fund |
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||
Year ended 04/30/19 | $3.78 | $(0.03) | $(0.42) | $(0.45) | $— | $3.33 | (11.90)% | $91,266 | 1.47%(d) | 1.47%(d) | (0.82)%(d) | 16% |
Year ended 04/30/18 | 4.16 | (0.04) | (0.27) | (0.31) | (0.07) | 3.78 | (7.55) | 113,737 | 1.43 | 1.43 | (1.00) | 20 |
Year ended 04/30/17 | 5.05 | (0.05) | (0.46) | (0.51) | (0.38) | 4.16 | (9.90) | 145,269 | 1.41 | 1.42 | (1.00) | 28 |
Year ended 04/30/16 | 4.00 | (0.03) | 1.08 | 1.05 | — | 5.05 | 26.25 | 160,494 | 1.54 | 1.54 | (0.90) | 23 |
Year ended 04/30/15 | 4.75 | (0.04) | (0.71) | (0.75) | — | 4.00 | (15.79) | 113,862 | 1.45 | 1.46 | (0.89) | 35 |
Class C | ||||||||||||
Year ended 04/30/19 | 3.79 | (0.05) | (0.42) | (0.47) | — | 3.32 | (12.40) | 14,345 | 2.22(d) | 2.22(d) | (1.57)(d) | 16 |
Year ended 04/30/18 | 4.20 | (0.07) | (0.29) | (0.36) | (0.05) | 3.79 | (8.51) | 24,859 | 2.18 | 2.18 | (1.75) | 20 |
Year ended 04/30/17 | 5.07 | (0.09) | (0.45) | (0.54) | (0.33) | 4.20 | (10.53) | 31,563 | 2.16 | 2.17 | (1.75) | 28 |
Year ended 04/30/16 | 4.05 | (0.06) | 1.08 | 1.02 | — | 5.07 | 25.19 | 36,157 | 2.29 | 2.29 | (1.65) | 23 |
Year ended 04/30/15 | 4.84 | (0.07) | (0.72) | (0.79) | — | 4.05 | (16.32) | 27,351 | 2.20 | 2.21 | (1.64) | 35 |
Class Y | ||||||||||||
Year ended 04/30/19 | 3.86 | (0.02) | (0.43) | (0.45) | — | 3.41 | (11.66) | 30,122 | 1.22(d) | 1.22(d) | (0.57)(d) | 16 |
Year ended 04/30/18 | 4.24 | (0.03) | (0.28) | (0.31) | (0.07) | 3.86 | (7.30) | 37,373 | 1.18 | 1.18 | (0.75) | 20 |
Year ended 04/30/17 | 5.15 | (0.04) | (0.47) | (0.51) | (0.40) | 4.24 | (9.75) | 45,797 | 1.16 | 1.17 | (0.75) | 28 |
Year ended 04/30/16 | 4.07 | (0.02) | 1.10 | 1.08 | — | 5.15 | 26.54 | 42,446 | 1.29 | 1.29 | (0.65) | 23 |
Year ended 04/30/15 | 4.82 | (0.03) | (0.72) | (0.75) | — | 4.07 | (15.56) | 19,530 | 1.20 | 1.21 | (0.64) | 35 |
Investor Class | ||||||||||||
Year ended 04/30/19 | 3.80 | (0.03) | (0.42) | (0.45) | — | 3.35 | (11.84) | 50,815 | 1.47(d) | 1.47(d) | (0.82)(d) | 16 |
Year ended 04/30/18 | 4.19 | (0.04) | (0.28) | (0.32) | (0.07) | 3.80 | (7.73) | 67,393 | 1.43 | 1.43 | (1.00) | 20 |
Year ended 04/30/17 | 5.08 | (0.05) | (0.46) | (0.51) | (0.38) | 4.19 | (9.84) | 78,703 | 1.41 | 1.42 | (1.00) | 28 |
Year ended 04/30/16 | 4.02 | (0.03) | 1.09 | 1.06 | — | 5.08 | 26.37 | 97,678 | 1.54 | 1.54 | (0.90) | 23 |
Year ended 04/30/15 | 4.77 | (0.04) | (0.71) | (0.75) | — | 4.02 | (15.72) | 82,486 | 1.45 | 1.46 | (0.89) | 35 |
Class R6 | ||||||||||||
Year ended 04/30/19 | 3.86 | (0.01) | (0.43) | (0.44) | — | 3.42 | (11.40) | 126 | 0.98(d) | 0.98(d) | (0.33)(d) | 16 |
Year ended 04/30/18 | 4.25 | (0.02) | (0.29) | (0.31) | (0.08) | 3.86 | (7.45) | 543 | 0.99 | 0.99 | (0.56) | 20 |
Year ended 04/30/17(e) | 4.57 | (0.00) | (0.32) | (0.32) | — | 4.25 | (7.00) | 9 | 0.97(f) | 0.97(f) | (0.56)(f) | 28 |
(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 omitted) of $96,650, $19,385, $31,612, $57,072 and $230 for Class A, Class C, Class Y, Investor Class and Class R6 shares, respectively. |
(e) | Commencement date of April 4, 2017. |
(f) | Annualized. |
15 | Invesco Gold & Precious Metals Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
16 | Invesco Gold & Precious Metals Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for 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 |
17 | Invesco Gold & Precious Metals Fund |
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. |
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
K. | Other Risks - The Fund’s investments are concentrated in a comparatively narrow segment of the economy, which may make the Fund more volatile. |
Average Daily Net Assets | Rate |
First $350 million | 0.75% |
Next $350 million | 0.65% |
Next $1.3 billion | 0.55% |
Next $2 billion | 0.45% |
Next $2 billion | 0.40% |
Next $2 billion | 0.375% |
Over $8 billion | 0.35% |
18 | Invesco Gold & Precious Metals Fund |
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
Australia | $5,118,002 | $— | $— | $5,118,002 |
Brazil | 1,881,028 | — | — | 1,881,028 |
Canada | 129,924,472 | — | 1,208,110 | 131,132,582 |
Ivory Coast | 4,079,738 | — | — | 4,079,738 |
Mexico | — | 4,429,205 | — | 4,429,205 |
Mongolia | 8,195,051 | — | — | 8,195,051 |
Switzerland | — | 2,138,066 | — | 2,138,066 |
Tanzania | — | 1,541,930 | — | 1,541,930 |
United States | 25,933,219 | — | — | 25,933,219 |
Zambia | 1,086,879 | — | — | 1,086,879 |
Money Market Funds | 1,304,073 | — | — | 1,304,073 |
Total Investments | $177,522,462 | $8,109,201 | $1,208,110 | $186,839,773 |
19 | Invesco Gold & Precious Metals Fund |
Value 04/30/18 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value 04/30/19 | Dividend Income | |
Progress Minerals, Inc. | $– | $ 1,215,733 | $– | $(7,623) | $– | $1,208,110 | $– |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $— | $4,606,250 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Net unrealized appreciation (depreciation) — investments | (73,713,286) |
Temporary book/tax differences | (93,953) |
Capital loss carryforward | (197,089,252) |
Shares of beneficial interest | 457,570,254 |
Total net assets | $186,673,763 |
20 | Invesco Gold & Precious Metals Fund |
Capital Loss Carryforward* | |||
Expiration | Short-Term | Long-Term | Total |
Not subject to expiration | $2,429,863 | $194,659,389 | $197,089,252 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $15,724,652 |
Aggregate unrealized (depreciation) of investments | (89,437,938) |
Net unrealized appreciation (depreciation) of investments | $(73,713,286) |
21 | Invesco Gold & Precious Metals Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 5,324,677 | $18,031,730 | 7,906,830 | $32,609,648 | |
Class B(b) | — | — | 3,076 | 12,190 | |
Class C | 611,475 | 2,096,303 | 926,703 | 3,815,907 | |
Class Y | 3,860,343 | 13,317,900 | 9,198,979 | 39,349,877 | |
Investor Class | 1,434,168 | 4,820,782 | 1,485,878 | 6,106,179 | |
Class R6 | 40,702 | 150,620 | 142,331 | 609,241 | |
Issued as reinvestment of dividends: | |||||
Class A | — | — | 535,889 | 2,084,604 | |
Class B(b) | — | — | 4,123 | 15,007 | |
Class C | — | — | 86,204 | 337,919 | |
Class Y | — | — | 177,930 | 706,382 | |
Investor Class | — | — | 296,051 | 1,157,558 | |
Class R6 | — | — | 2,597 | 10,312 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 279,159 | 1,194,802 | |
Class B | — | — | (298,919) | (1,194,802) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 1,024,704 | 3,456,388 | - | - | |
Class C | (1,024,817) | (3,456,388) | - | - | |
Reacquired: | |||||
Class A | (9,062,490) | (31,208,098) | (13,502,707) | (55,607,817) | |
Class B(b) | — | — | (201,481) | (790,558) | |
Class C | (1,817,475) | (6,225,880) | (1,978,139) | (8,179,501) | |
Class Y | (4,714,293) | (16,463,258) | (10,482,120) | (43,544,613) | |
Investor Class | (4,005,931) | (13,514,699) | (2,837,498) | (11,763,732) | |
Class R6 | (144,275) | (539,109) | (6,583) | (27,555) | |
Net increase (decrease) in share activity | (8,473,212) | $(29,533,709) | (8,261,697) | $(33,098,952) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 26% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
22 | Invesco Gold & Precious Metals Fund |
23 | Invesco Gold & Precious Metals Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,084.70 | $7.60 | $1,017.50 | $7.35 | 1.47% |
Class C | 1,000.00 | 1,077.90 | 11.44 | 1,013.79 | 11.08 | 2.22 |
Class Y | 1,000.00 | 1,086.00 | 6.31 | 1,018.74 | 6.11 | 1.22 |
Investor Class | 1,000.00 | 1,084.10 | 7.60 | 1,017.50 | 7.35 | 1.47 |
Class R6 | 1,000.00 | 1,085.70 | 5.07 | 1,019.93 | 4.91 | 0.98 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Gold & Precious Metals Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Gold & Precious Metals Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Gold & Precious Metals Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Gold & Precious Metals Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Gold & Precious Metals Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | I-GPM-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Mid Cap Growth Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Mid Cap Growth Fund |
Class A Shares | 11.83% |
Class C Shares | 11.00 |
Class R Shares | 11.53 |
Class Y Shares | 12.09 |
Class R5 Shares | 12.21 |
Class R6 Shares | 12.33 |
S&P 500 Index▼ (Broad Market Index) | 13.49 |
Russell Midcap Growth Index■ (Style-Specific Index) | 17.64 |
Lipper Mid-Cap Growth Funds Index♦ (Peer Group Index) | 16.56 |
Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
and improving global economic growth. Several US equity indexes reached new highs despite potential headwinds, including trade tensions, tariff announcements and contagion concerns over a Turkish currency crisis. After a relatively quiet summer, market volatility noticeably rose in October 2018, as US equity markets suffered a sharp sell-off through year-end 2018, amid ongoing trade concerns between the US and China, fears of a global economic slowdown and lower oil prices from a supply glut, with oil prices plum-
Portfolio Composition | |
By sector | % of total net assets |
Information Technology | 31.64% |
Industrials | 18.11 |
Consumer Discretionary | 16.32 |
Health Care | 13.47 |
Financials | 7.10 |
Energy | 3.53 |
Communication Services | 3.40 |
Materials | 2.16 |
Other Sectors, Each Less than 2% of Net Assets | 2.30 |
Money Market Funds Plus Other Assets Less Liabilities | 1.97 |
meting from near $75 per barrel in early October 2018 to around $45 per barrel in late December 2018.1 In this environment, there was a flight to safety, as investors fled to defensive areas of the market, such as health care, utilities and US Treasuries.
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | ServiceNow, Inc. | 2.71% |
2. | CoStar Group, Inc. | 2.45 |
3. | Roper Technologies, Inc. | 1.92 |
4. | Cheniere Energy, Inc. | 1.88 |
5. | SS&C Technologies Holdings, Inc. | 1.87 |
6. | Live Nation Entertainment, Inc. | 1.83 |
7. | Burlington Stores, Inc. | 1.82 |
8. | Guidewire Software, Inc. | 1.76 |
9. | Black Knight, Inc. | 1.68 |
10. | GoDaddy, Inc., Class A | 1.65 |
Total Net Assets | $3.0 billion |
Total Number of Holdings* | 86 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Mid Cap Growth Fund |
5 | Invesco Mid Cap Growth Fund |
1 | Source: RIMES Technologies Corp. |
2 | Source: FactSet Research Systems Inc. |
3 | Source: Lipper Inc. |
6 | Invesco Mid Cap Growth Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (12/27/95) | 11.34% |
10 Years | 13.58 |
5 Years | 7.96 |
1 Year | 5.67 |
Class C Shares | |
Inception (12/27/95) | 11.28% |
10 Years | 13.39 |
5 Years | 8.41 |
1 Year | 10.07 |
Class R Shares | |
Inception (7/11/08) | 9.30% |
10 Years | 13.94 |
5 Years | 8.92 |
1 Year | 11.53 |
Class Y Shares | |
Inception (8/12/05) | 9.19% |
10 Years | 14.51 |
5 Years | 9.47 |
1 Year | 12.09 |
Class R5 Shares | |
10 Years | 14.59% |
5 Years | 9.59 |
1 Year | 12.21 |
Class R6 Shares | |
10 Years | 14.52% |
5 Years | 9.68 |
1 Year | 12.33 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end,including maximum applicable sales charges | |
Class A Shares | |
Inception (12/27/95) | 11.20% |
10 Years | 15.02 |
5 Years | 6.70 |
1 Year | 1.10 |
Class C Shares | |
Inception (12/27/95) | 11.13% |
10 Years | 14.84 |
5 Years | 7.15 |
1 Year | 5.39 |
Class R Shares | |
Inception (7/11/08) | 8.98% |
10 Years | 15.38 |
5 Years | 7.64 |
1 Year | 6.73 |
Class Y Shares | |
Inception (8/12/05) | 8.94% |
10 Years | 15.96 |
5 Years | 8.18 |
1 Year | 7.26 |
Class R5 Shares | |
10 Years | 16.04% |
5 Years | 8.30 |
1 Year | 7.39 |
Class R6 Shares | |
10 Years | 15.96% |
5 Years | 8.40 |
1 Year | 7.47 |
7 | Invesco Mid Cap Growth Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class R sharesare generally available only to employer sponsored retirement and benefit plans. Please see the prospectus for more information. |
■ | Class Y shares are available only to certain investors. Please see the prospectus for more information. |
■ | Class R5 shares andClass R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. |
■ | Growth investing risk. Growth stocks tend to be more expensive relative to |
the issuing company’s earnings or assets compared with other types of stock. As a result, they tend to be more sensitive to changes in, or investors’ expectations of, the issuing company’s earnings and can be more volatile. | |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk.The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | Mid-capitalization companies risk. Mid-capitalization companies tend to be more vulnerable to changing market conditions and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | Sector focus risk. The Fund may from time to time invest a significant |
■ | TheS&P 500®Index is an un managed index considered representative of the US stock market. |
■ | TheRussell Midcap®Growth Index is an unmanaged index considered representative of mid-cap growth stocks. The Russell Midcap Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. |
■ | TheLipper Mid-Cap Growth Funds Index is an unmanaged index considered representative of mid-cap growth funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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, |
8 | Invesco Mid Cap Growth Fund |
and as such, the NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco Mid Cap Growth Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–98.03% | |||
Aerospace & Defense–2.91% | |||
Harris Corp. | 232,405 | $39,160,242 | |
TransDigm Group, Inc.(b) | 97,359 | 46,977,665 | |
86,137,907 | |||
Apparel Retail–1.82% | |||
Burlington Stores, Inc.(b) | 318,622 | 53,818,442 | |
Apparel, Accessories & Luxury Goods–0.63% | |||
lululemon athletica, Inc.(b) | 105,638 | 18,629,261 | |
Application Software–9.36% | |||
Autodesk, Inc.(b) | 170,826 | 30,442,901 | |
Guidewire Software, Inc.(b) | 488,653 | 52,041,545 | |
New Relic, Inc.(b) | 380,200 | 40,012,248 | |
SS&C Technologies Holdings, Inc. | 818,040 | 55,348,586 | |
Synopsys, Inc.(b) | 293,085 | 35,486,732 | |
Tyler Technologies, Inc.(b) | 142,650 | 33,081,962 | |
Zendesk, Inc.(b) | 349,292 | 30,660,852 | |
277,074,826 | |||
Auto Parts & Equipment–0.79% | |||
Aptiv PLC | 271,220 | 23,243,554 | |
Biotechnology–3.20% | |||
BioMarin Pharmaceutical, Inc.(b) | 371,471 | 31,771,914 | |
Neurocrine Biosciences, Inc.(b) | 262,245 | 18,944,579 | |
Sage Therapeutics, Inc.(b) | 123,369 | 20,754,367 | |
Sarepta Therapeutics, Inc.(b) | 198,087 | 23,164,294 | |
94,635,154 | |||
Building Products–0.79% | |||
Trex Co., Inc.(b) | 336,729 | 23,325,218 | |
Communications Equipment–0.66% | |||
Arista Networks, Inc.(b) | 62,441 | 19,499,700 | |
Data Processing & Outsourced Services–4.25% | |||
Black Knight, Inc.(b) | 882,895 | 49,812,936 | |
Fidelity National Information Services, Inc. | 325,499 | 37,735,099 | |
FleetCor Technologies, Inc.(b) | 145,958 | 38,087,740 | |
125,635,775 | |||
Department Stores–0.61% | |||
Kohl’s Corp. | 253,381 | 18,015,389 | |
Diversified Support Services–1.24% | |||
KAR Auction Services, Inc. | 650,653 | 36,748,882 | |
Education Services–2.19% | |||
Bright Horizons Family Solutions, Inc.(b) | 307,914 | 39,459,179 |
Shares | Value | ||
Education Services–(continued) | |||
Grand Canyon Education, Inc.(b) | 219,369 | $25,422,674 | |
64,881,853 | |||
Electronic Components–1.24% | |||
Amphenol Corp., Class A | 367,666 | 36,604,827 | |
Electronic Equipment & Instruments–0.60% | |||
FLIR Systems, Inc. | 335,400 | 17,756,076 | |
Environmental & Facilities Services–1.16% | |||
Republic Services, Inc. | 414,968 | 34,367,650 | |
Financial Exchanges & Data–2.42% | |||
London Stock Exchange Group PLC (United Kingdom) | 568,065 | 37,246,068 | |
Nasdaq, Inc. | 371,650 | 34,266,130 | |
71,512,198 | |||
General Merchandise Stores–1.41% | |||
Dollar General Corp. | 331,218 | 41,763,278 | |
Health Care Equipment–5.02% | |||
Boston Scientific Corp.(b) | 565,808 | 21,002,793 | |
DexCom, Inc.(b) | 234,471 | 28,387,404 | |
Edwards Lifesciences Corp.(b) | 134,059 | 23,603,768 | |
Insulet Corp.(b) | 188,700 | 16,275,375 | |
LivaNova PLC(b) | 258,955 | 17,839,410 | |
Penumbra, Inc.(b) | 307,800 | 41,399,100 | |
148,507,850 | |||
Hotels, Resorts & Cruise Lines–1.84% | |||
Hilton Worldwide Holdings, Inc. | 272,670 | 23,719,563 | |
Royal Caribbean Cruises Ltd. | 253,194 | 30,621,283 | |
54,340,846 | |||
Household Products–0.87% | |||
Church & Dwight Co., Inc. | 344,437 | 25,815,553 | |
Industrial Conglomerates–1.92% | |||
Roper Technologies, Inc. | 158,087 | 56,863,894 | |
Industrial Machinery–4.15% | |||
Fortive Corp. | 515,997 | 44,551,181 | |
Graco, Inc. | 739,814 | 37,915,468 | |
Ingersoll-Rand PLC | 327,835 | 40,195,849 | |
122,662,498 | |||
Interactive Home Entertainment–1.57% | |||
Nintendo Co., Ltd. (Japan) | 73,900 | 25,341,537 | |
Take-Two Interactive Software, Inc.(b) | 217,055 | 21,017,436 | |
46,358,973 | |||
Internet & Direct Marketing Retail–1.25% | |||
Etsy, Inc.(b) | 546,043 | 36,879,744 |
10 | Invesco Mid Cap Growth Fund |
Shares | Value | ||
Internet Services & Infrastructure–2.63% | |||
GoDaddy, Inc., Class A(b) | 598,836 | $48,805,134 | |
Twilio, Inc., Class A(b) | 212,364 | 29,123,599 | |
77,928,733 | |||
Investment Banking & Brokerage–2.62% | |||
E*TRADE Financial Corp. | 812,403 | 41,156,336 | |
TD Ameritrade Holding Corp. | 693,330 | 36,455,291 | |
77,611,627 | |||
IT Consulting & Other Services–1.08% | |||
Gartner, Inc.(b) | 201,826 | 32,084,279 | |
Leisure Facilities–0.64% | |||
Vail Resorts, Inc. | 83,102 | 19,017,893 | |
Life Sciences Tools & Services–2.15% | |||
Mettler-Toledo International, Inc.(b) | 62,975 | 46,932,748 | |
Syneos Health, Inc.(b) | 357,204 | 16,763,584 | |
63,696,332 | |||
Managed Health Care–1.10% | |||
Centene Corp.(b) | 460,202 | 23,728,015 | |
Humana, Inc. | 34,582 | 8,832,589 | |
32,560,604 | |||
Movies & Entertainment–1.83% | |||
Live Nation Entertainment, Inc.(b) | 828,654 | 54,144,252 | |
Multi-line Insurance–0.97% | |||
Assurant, Inc. | 302,006 | 28,690,570 | |
Oil & Gas Exploration & Production–1.65% | |||
Diamondback Energy, Inc. | 458,072 | 48,734,280 | |
Oil & Gas Storage & Transportation–1.88% | |||
Cheniere Energy, Inc.(b) | 864,121 | 55,606,186 | |
Pharmaceuticals–2.00% | |||
Aerie Pharmaceuticals, Inc.(b) | 309,955 | 11,824,783 | |
Zoetis, Inc. | 463,815 | 47,234,920 | |
59,059,703 | |||
Regional Banks–1.09% | |||
SVB Financial Group(b) | 128,099 | 32,245,080 | |
Research & Consulting Services–3.59% | |||
CoStar Group, Inc.(b) | 145,761 | 72,333,896 | |
IHS Markit Ltd.(b) | 590,592 | 33,817,298 | |
106,151,194 | |||
Restaurants–2.50% | |||
Domino’s Pizza, Inc. | 168,250 | 45,525,085 | |
Papa John’s International, Inc.(c) | 556,696 | 28,480,567 | |
74,005,652 | |||
Semiconductor Equipment–1.64% | |||
KLA-Tencor Corp. | 191,184 | 24,372,136 |
Shares | Value | ||
Semiconductor Equipment–(continued) | |||
Lam Research Corp. | 116,093 | $24,081,171 | |
48,453,307 | |||
Semiconductors–5.07% | |||
Advanced Micro Devices, Inc.(b) | 965,363 | 26,672,980 | |
Analog Devices, Inc. | 226,861 | 26,370,323 | |
Marvell Technology Group Ltd. | 1,067,062 | 26,697,891 | |
Microchip Technology, Inc. | 406,806 | 40,635,851 | |
Universal Display Corp. | 185,284 | 29,571,326 | |
149,948,371 | |||
Specialized Consumer Services–1.51% | |||
ServiceMaster Global Holdings, Inc.(b) | 914,307 | 44,828,472 | |
Specialized REITs–1.43% | |||
SBA Communications Corp., Class A(b) | 207,378 | 42,249,120 | |
Specialty Chemicals–2.16% | |||
Celanese Corp. Series A | 247,660 | 26,720,037 | |
Sherwin-Williams Co. (The) | 81,812 | 37,210,552 | |
63,930,589 | |||
Specialty Stores–1.13% | |||
Ulta Beauty, Inc.(b) | 95,959 | 33,487,772 | |
Systems Software–5.11% | |||
Palo Alto Networks, Inc.(b) | 97,227 | 24,192,994 | |
ServiceNow, Inc.(b) | 295,693 | 80,283,607 | |
Tableau Software, Inc., Class A(b) | 201,847 | 24,586,983 | |
Varonis Systems, Inc.(b) | 312,574 | 22,239,640 | |
151,303,224 | |||
Trading Companies & Distributors–2.35% | |||
HD Supply Holdings, Inc.(b) | 776,514 | 35,478,925 | |
United Rentals, Inc.(b) | 242,608 | 34,188,319 | |
69,667,244 | |||
Total Common Stocks & Other Equity Interests (Cost $2,173,834,334) | 2,900,483,832 | ||
Money Market Funds–1.37% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d) | 14,246,299 | 14,246,300 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d) | 10,172,701 | 10,175,752 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(d) | 16,281,485 | 16,281,485 | |
Total Money Market Funds (Cost $40,702,230) | 40,703,537 | ||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.40% (Cost $2,214,536,564) | 2,941,187,369 | ||
Investments Purchased with Cash Collateral from Securities on Loan | |||
Money Market Funds–0.90% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d)(e) | 19,904,479 | 19,904,479 |
11 | Invesco Mid Cap Growth Fund |
Shares | Value | ||
Money Market Funds–(continued) | |||
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d)(e) | 6,632,837 | $6,634,826 | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $26,539,305) | 26,539,305 | ||
TOTAL INVESTMENTS IN SECURITIES–100.30% (Cost $2,241,075,869) | 2,967,726,674 | ||
OTHER ASSETS LESS LIABILITIES–(0.30)% | (8,964,372) | ||
NET ASSETS–100.00% | $2,958,762,302 |
REIT | – Real Estate Investment Trust |
(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 April 30, 2019. |
(d) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
(e) | 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. |
12 | Invesco Mid Cap Growth Fund |
Assets: | |
Investments in securities, at value (Cost $2,173,834,334)1 | $2,900,483,832 |
Investments in affiliated money market funds, at value (Cost $67,241,535) | 67,242,842 |
Foreign currencies, at value (Cost $302) | 303 |
Receivable for: | |
Investments sold | 20,972,307 |
Fund shares sold | 1,267,137 |
Dividends | 788,060 |
Investment for trustee deferred compensation and retirement plans | 615,853 |
Other assets | 137,827 |
Total assets | 2,991,508,161 |
Liabilities: | |
Payable for: | |
Fund shares reacquired | 1,968,135 |
Amount due custodian | 1,615,401 |
Collateral upon return of securities loaned | 26,539,305 |
Accrued fees to affiliates | 1,698,993 |
Accrued trustees’ and officers’ fees and benefits | 4,248 |
Accrued other operating expenses | 240,453 |
Trustee deferred compensation and retirement plans | 679,324 |
Total liabilities | 32,745,859 |
Net assets applicable to shares outstanding | $2,958,762,302 |
Net assets consist of: | |
Shares of beneficial interest | $2,160,522,470 |
Distributable earnings | 798,239,832 |
$2,958,762,302 | |
Net Assets: | |
Class A | $2,509,975,344 |
Class C | $54,608,683 |
Class R | $27,457,578 |
Class Y | $147,816,055 |
Class R5 | $118,048,260 |
Class R6 | $100,856,382 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 65,541,082 |
Class C | 2,016,690 |
Class R | 745,265 |
Class Y | 3,660,452 |
Class R5 | 2,885,439 |
Class R6 | 2,449,487 |
Class A: | |
Net asset value per share | $38.30 |
Maximum offering price per share (Net asset value of $38.30 ÷ 94.50%) | $40.53 |
Class C: | |
Net asset value and offering price per share | $27.08 |
Class R: | |
Net asset value and offering price per share | $36.84 |
Class Y: | |
Net asset value and offering price per share | $40.38 |
Class R5: | |
Net asset value and offering price per share | $40.91 |
Class R6: | |
Net asset value and offering price per share | $41.17 |
1 | At April 30, 2019, securities with an aggregate value of $25,988,219 were on loan to brokers. |
13 | Invesco Mid Cap Growth Fund |
Investment income: | |
Dividends (net of foreign withholding taxes of $54,507) | $17,729,727 |
Dividends from affiliated money market funds (includes securities lending income of $115,512) | 889,158 |
Total investment income | 18,618,885 |
Expenses: | |
Advisory fees | 19,344,232 |
Administrative services fees | 500,362 |
Custodian fees | 40,183 |
Distribution fees: | |
Class A | 5,927,294 |
Class C | 1,074,337 |
Class R | 140,375 |
Transfer agent fees — A, C, R and Y | 5,204,166 |
Transfer agent fees — R5 | 111,658 |
Transfer agent fees — R6 | 10,941 |
Trustees’ and officers’ fees and benefits | 65,128 |
Registration and filing fees | 146,278 |
Reports to shareholders | 244,636 |
Professional services fees | 74,192 |
Other | 50,870 |
Total expenses | 32,934,652 |
Less: Fees waived and expense offset arrangement(s) | (81,274) |
Net expenses | 32,853,378 |
Net investment income (loss) | (14,234,493) |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Investment securities (includes net gains from securities sold to affiliates of $113,802) | 234,805,757 |
Foreign currencies | (9,379) |
234,796,378 | |
Change in net unrealized appreciation of: | |
Investment securities | 93,691,494 |
Foreign currencies | 3,626 |
93,695,120 | |
Net realized and unrealized gain | 328,491,498 |
Net increase in net assets resulting from operations | $314,257,005 |
14 | Invesco Mid Cap Growth Fund |
2019 | 2018 | |
Operations: | ||
Net investment income (loss) | $(14,234,493) | $(15,236,593) |
Net realized gain | 234,796,378 | 263,618,537 |
Change in net unrealized appreciation | 93,695,120 | 119,279,927 |
Net increase in net assets resulting from operations | 314,257,005 | 367,661,871 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (254,259,756) | (186,533,891) |
Class B | — | (1,443,484) |
Class C | (18,703,991) | (14,133,949) |
Class R | (3,128,673) | (2,399,573) |
Class Y | (15,190,359) | (10,446,300) |
Class R5 | (11,426,078) | (8,139,975) |
Class R6 | (9,896,881) | (6,509,149) |
Total distributions to shareholders from distributable earnings | (312,605,738) | (229,606,321) |
Share transactions–net: | ||
Class A | 167,289,296 | (7,540,152) |
Class B | — | (25,718,606) |
Class C | (63,321,086) | (10,930,116) |
Class R | (639,069) | (988,247) |
Class Y | 13,990,046 | (5,818,701) |
Class R5 | 7,183,187 | (3,227,347) |
Class R6 | 10,495,555 | 30,490,841 |
Net increase (decrease) in net assets resulting from share transactions | 134,997,929 | (23,732,328) |
Net increase in net assets | 136,649,196 | 114,323,222 |
Net assets: | ||
Beginning of year | 2,822,113,106 | 2,707,789,884 |
End of year | $2,958,762,302 | $2,822,113,106 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net realized gains. |
15 | Invesco Mid Cap Growth Fund |
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Distributions from net realized gains | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||
Year ended 04/30/19 | $38.92 | $(0.20) | $3.97 | $3.77 | $(4.39) | $38.30 | 11.83% | $2,509,975 | 1.16%(d) | 1.16%(d) | (0.51)%(d) | 53% |
Year ended 04/30/18 | 37.12 | (0.21) | 5.29 | 5.08 | (3.28) | 38.92 | 14.06 | 2,329,236 | 1.17 | 1.17 | (0.54) | 51 |
Year ended 04/30/17 | 33.16 | (0.20) | 5.08 | 4.88 | (0.92) | 37.12 | 14.94 | 2,221,949 | 1.21 | 1.21 | (0.57) | 53 |
Year ended 04/30/16 | 38.74 | (0.18) | (2.66) | (2.84) | (2.74) | 33.16 | (7.43) | 2,177,520 | 1.20 | 1.21 | (0.49) | 60 |
Year ended 04/30/15 | 37.30 | (0.15) | 5.18 | 5.03 | (3.59) | 38.74 | 14.39 | 2,482,328 | 1.14 | 1.19 | (0.38) | 61 |
Class C | ||||||||||||
Year ended 04/30/19 | 29.09 | (0.35) | 2.73 | 2.38 | (4.39) | 27.08 | 11.00(e) | 54,609 | 1.87(d)(e) | 1.87(d)(e) | (1.22)(d)(e) | 53 |
Year ended 04/30/18 | 28.69 | (0.37) | 4.05 | 3.68 | (3.28) | 29.09 | 13.27(e) | 131,905 | 1.88(e) | 1.88(e) | (1.25)(e) | 51 |
Year ended 04/30/17 | 26.01 | (0.35) | 3.95 | 3.60 | (0.92) | 28.69 | 14.11(e) | 139,950 | 1.93(e) | 1.93(e) | (1.29)(e) | 53 |
Year ended 04/30/16 | 31.24 | (0.35) | (2.14) | (2.49) | (2.74) | 26.01 | (8.12)(e) | 148,892 | 1.92(e) | 1.93(e) | (1.21)(e) | 60 |
Year ended 04/30/15 | 30.95 | (0.35) | 4.23 | 3.88 | (3.59) | 31.24 | 13.59(e) | 176,447 | 1.86(e) | 1.91(e) | (1.10)(e) | 61 |
Class R | ||||||||||||
Year ended 04/30/19 | 37.71 | (0.28) | 3.80 | 3.52 | (4.39) | 36.84 | 11.53 | 27,458 | 1.41(d) | 1.41(d) | (0.76)(d) | 53 |
Year ended 04/30/18 | 36.15 | (0.30) | 5.14 | 4.84 | (3.28) | 37.71 | 13.76 | 28,265 | 1.42 | 1.42 | (0.79) | 51 |
Year ended 04/30/17 | 32.39 | (0.28) | 4.96 | 4.68 | (0.92) | 36.15 | 14.67 | 27,975 | 1.46 | 1.46 | (0.82) | 53 |
Year ended 04/30/16 | 38.01 | (0.26) | (2.62) | (2.88) | (2.74) | 32.39 | (7.69) | 29,547 | 1.45 | 1.46 | (0.74) | 60 |
Year ended 04/30/15 | 36.74 | (0.24) | 5.10 | 4.86 | (3.59) | 38.01 | 14.14 | 34,942 | 1.39 | 1.44 | (0.63) | 61 |
Class Y | ||||||||||||
Year ended 04/30/19 | 40.69 | (0.10) | 4.18 | 4.08 | (4.39) | 40.38 | 12.09 | 147,816 | 0.91(d) | 0.91(d) | (0.26)(d) | 53 |
Year ended 04/30/18 | 38.58 | (0.12) | 5.51 | 5.39 | (3.28) | 40.69 | 14.33 | 134,312 | 0.92 | 0.92 | (0.29) | 51 |
Year ended 04/30/17 | 34.34 | (0.12) | 5.28 | 5.16 | (0.92) | 38.58 | 15.24 | 132,925 | 0.96 | 0.96 | (0.32) | 53 |
Year ended 04/30/16 | 39.92 | (0.09) | (2.75) | (2.84) | (2.74) | 34.34 | (7.21) | 76,291 | 0.95 | 0.96 | (0.24) | 60 |
Year ended 04/30/15 | 38.23 | (0.05) | 5.33 | 5.28 | (3.59) | 39.92 | 14.70 | 80,736 | 0.89 | 0.94 | (0.13) | 61 |
Class R5 | ||||||||||||
Year ended 04/30/19 | 41.13 | (0.07) | 4.24 | 4.17 | (4.39) | 40.91 | 12.18 | 118,048 | 0.82(d) | 0.82(d) | (0.17)(d) | 53 |
Year ended 04/30/18 | 38.92 | (0.08) | 5.57 | 5.49 | (3.28) | 41.13 | 14.47 | 109,122 | 0.82 | 0.82 | (0.19) | 51 |
Year ended 04/30/17 | 34.59 | (0.07) | 5.32 | 5.25 | (0.92) | 38.92 | 15.39 | 106,223 | 0.83 | 0.83 | (0.19) | 53 |
Year ended 04/30/16 | 40.14 | (0.04) | (2.77) | (2.81) | (2.74) | 34.59 | (7.08) | 91,700 | 0.82 | 0.82 | (0.11) | 60 |
Year ended 04/30/15 | 38.39 | (0.02) | 5.36 | 5.34 | (3.59) | 40.14 | 14.80 | 86,090 | 0.81 | 0.81 | (0.05) | 61 |
Class R6 | ||||||||||||
Year ended 04/30/19 | 41.33 | (0.03) | 4.26 | 4.23 | (4.39) | 41.17 | 12.27 | 100,856 | 0.73(d) | 0.73(d) | (0.08)(d) | 53 |
Year ended 04/30/18 | 39.06 | (0.04) | 5.59 | 5.55 | (3.28) | 41.33 | 14.58 | 89,273 | 0.73 | 0.73 | (0.10) | 51 |
Year ended 04/30/17 | 34.68 | (0.04) | 5.34 | 5.30 | (0.92) | 39.06 | 15.50 | 54,568 | 0.75 | 0.75 | (0.11) | 53 |
Year ended 04/30/16 | 40.21 | (0.01) | (2.78) | (2.79) | (2.74) | 34.68 | (7.02) | 49,485 | 0.73 | 0.73 | (0.02) | 60 |
Year ended 04/30/15 | 38.41 | 0.02 | 5.37 | 5.39 | (3.59) | 40.21 | 14.93 | 61,029 | 0.72 | 0.72 | 0.04 | 61 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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 omitted) of $2,370,918, $111,591, $28,075, $143,103, $111,738 and $95,227 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.96%, 0.96%, 0.97%, 0.98% and 0.97% for the years ended April 30, 2019, 2018, 2017, 2016 and 2015, respectively. |
16 | Invesco Mid Cap Growth Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
17 | Invesco Mid Cap Growth Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund |
18 | Invesco Mid Cap Growth Fund |
will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included inDividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
Average Daily Net Assets | Rate |
First $500 million | 0.75% |
Next $500 million | 0.70% |
Over $1 billion | 0.65% |
19 | Invesco Mid Cap Growth Fund |
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
Common Stocks & Other Equity Interests | $2,837,896,227 | $62,587,605 | $— | $2,900,483,832 |
Money Market Funds | 67,242,842 | — | — | 67,242,842 |
Total Investments | $2,905,139,069 | $62,587,605 | $— | $2,967,726,674 |
20 | Invesco Mid Cap Growth Fund |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Long-term capital gain | $312,605,738 | $229,606,321 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Undistributed long-term capital gain | $80,936,996 |
Net unrealized appreciation — investments | 722,962,720 |
Net unrealized appreciation (depreciation) - foreign currencies | (3,007) |
Temporary book/tax differences | (581,865) |
Late-Year ordinary loss deferral | (5,075,012) |
Shares of beneficial interest | 2,160,522,470 |
Total net assets | $2,958,762,302 |
21 | Invesco Mid Cap Growth Fund |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $763,501,916 |
Aggregate unrealized (depreciation) of investments | (40,539,196) |
Net unrealized appreciation of investments | $722,962,720 |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 5,293,960 | $202,811,605 | 3,899,411 | $151,352,310 | |
Class B(b) | — | — | 4,220 | 135,650 | |
Class C | 549,888 | 15,462,432 | 349,725 | 10,325,834 | |
Class R | 140,001 | 5,253,940 | 138,324 | 5,218,379 | |
Class Y | 1,110,051 | 45,092,144 | 1,151,161 | 46,472,987 | |
Class R5 | 583,744 | 23,421,457 | 393,133 | 16,091,654 | |
Class R6 | 462,424 | 19,096,267 | 930,463 | 37,712,818 | |
Issued as reinvestment of dividends: | |||||
Class A | 7,549,869 | 242,879,270 | 4,806,247 | 179,321,059 | |
Class B(b) | — | — | 46,109 | 1,414,158 | |
Class C | 780,942 | 17,813,390 | 483,978 | 13,532,038 | |
Class R | 100,990 | 3,127,656 | 66,284 | 2,398,814 | |
Class Y | 372,715 | 12,631,297 | 217,920 | 8,492,346 | |
Class R5 | 332,018 | 11,394,869 | 206,243 | 8,121,852 | |
Class R6 | 283,765 | 9,798,392 | 163,188 | 6,454,078 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 429,037 | 17,384,572 | |
Class B | — | — | (524,767) | (17,384,572) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 1,966,180 | 67,063,265 | - | - | |
Class C | (2,775,239) | (67,063,265) | - | - |
22 | Invesco Mid Cap Growth Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Reacquired: | |||||
Class A | (9,109,199) | $(345,464,844) | (9,150,784) | $(355,598,093) | |
Class B(b) | — | — | (305,001) | (9,883,842) | |
Class C | (1,073,590) | (29,533,643) | (1,176,787) | (34,787,988) | |
Class R | (245,158) | (9,020,665) | (229,065) | (8,605,440) | |
Class Y | (1,123,010) | (43,733,395) | (1,514,023) | (60,784,034) | |
Class R5 | (683,592) | (27,633,139) | (675,432) | (27,440,853) | |
Class R6 | (456,886) | (18,399,104) | (330,531) | (13,676,055) | |
Net increase (decrease) in share activity | 4,059,873 | $134,997,929 | (620,947) | $(23,732,328) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 31% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
23 | Invesco Mid Cap Growth Fund |
24 | Invesco Mid Cap Growth Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,111.40 | $6.13 | $1,018.99 | $5.86 | 1.17% |
Class C | 1,000.00 | 1,107.30 | 9.88 | 1,015.42 | 9.44 | 1.89 |
Class R | 1,000.00 | 1,109.80 | 7.43 | 1,017.75 | 7.10 | 1.42 |
Class Y | 1,000.00 | 1,112.70 | 4.82 | 1,020.23 | 4.61 | 0.92 |
Class R5 | 1,000.00 | 1,113.20 | 4.30 | 1,020.73 | 4.11 | 0.82 |
Class R6 | 1,000.00 | 1,113.80 | 3.83 | 1,021.17 | 3.66 | 0.73 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
25 | Invesco Mid Cap Growth Fund |
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | $312,605,738 |
Qualified Dividend Income* | 0% |
Corporate Dividends Received Deduction* | 0% |
U.S. Treasury Obligations* | 0% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
26 | Invesco Mid Cap Growth Fund |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Mid Cap Growth Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Mid Cap Growth Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Mid Cap Growth Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Mid Cap Growth Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Mid Cap Growth Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | VK-MCG-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Small Cap Value Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Small Cap Value Fund |
Class A Shares | –3.16% |
Class C Shares | –3.98 |
Class Y Shares | –2.97 |
Class R6 Shares | –2.80 |
S&P 500 Index▼ (Broad Market Index) | 13.49 |
Russell 2000 Value Index■ (Style-Specific Index) | 2.19 |
Lipper Small-Cap Value Funds Index♦ (Peer Group Index) | 0.43 |
Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
Portfolio Composition | |
By sector | % of total net assets |
Industrials | 30.09% |
Financials | 17.71 |
Materials | 14.60 |
Consumer Discretionary | 10.91 |
Energy | 7.03 |
Health Care | 6.46 |
Information Technology | 5.70 |
Consumer Staples | 3.33 |
Money Market Funds Plus Other Assets Less Liabilities | 4.17 |
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | AECOM | 4.13% |
2. | Carpenter Technology Corp. | 3.07 |
3. | Delphi Technologies PLC | 3.06 |
4. | Owens Corning | 3.00 |
5. | Crown Holdings, Inc. | 2.81 |
6. | Sealed Air Corp. | 2.71 |
7. | Builders FirstSource, Inc. | 2.68 |
8. | MGIC Investment Corp. | 2.65 |
9. | Carlisle Cos., Inc. | 2.55 |
10. | Flex Ltd. | 2.53 |
Total Net Assets | $1.6 billion |
Total Number of Holdings* | 66 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Small Cap Value Fund |
5 | Invesco Small Cap Value Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: RIMES Technologies Corp. |
3 | Source: Lipper Inc. |
6 | Invesco Small Cap Value Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (6/21/99) | 9.72% |
10 Years | 13.01 |
5 Years | 3.08 |
1 Year | –8.49 |
Class C Shares | |
Inception (6/21/99) | 9.61% |
10 Years | 12.80 |
5 Years | 3.45 |
1 Year | –4.65 |
Class Y Shares | |
Inception (8/12/05) | 9.23% |
10 Years | 13.93 |
5 Years | 4.49 |
1 Year | –2.97 |
Class R6 Shares | |
10 Years | 13.74% |
5 Years | 4.42 |
1 Year | –2.80 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (6/21/99) | 9.44% |
10 Years | 13.81 |
5 Years | 2.03 |
1 Year | –13.33 |
Class C Shares | |
Inception (6/21/99) | 9.33% |
10 Years | 13.62 |
5 Years | 2.42 |
1 Year | –9.61 |
Class Y Shares | |
Inception (8/12/05) | 8.83% |
10 Years | 14.75 |
5 Years | 3.44 |
1 Year | –8.04 |
Class R6 Shares | |
10 Years | 14.56% |
5 Years | 3.36 |
1 Year | –7.92 |
7 | Invesco Small Cap Value Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class Y shares are available to only certain investors. Please see the prospectus for more information. |
■ | Class R6 sharesare available for use by for retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Depositary receipts risk. Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer. |
■ | Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, |
an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. | |
■ | Emerging markets securities risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably. In addition, investments in emerging markets securities may also be subject to additional transaction costs, delays in settlement procedures, and lack of timely information. |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely |
affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. | |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset |
8 | Invesco Small Cap Value Fund |
classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | REIT risk/real estate risk. Investments in real estate related instruments may be affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies of real estate related to the Fund’s holdings. Shares of real estate related companies, which tend to be small- and mid-cap companies, may be more volatile and less liquid. |
■ | Sector focus risk. The Fund may from time to time invest a significant amount of its assets (i.e. over 25%) in one market sector or group of related industries. In this event, the Fund’s performance will depend to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries. |
■ | Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | Value investing style risk. A value investing style subjects the Fund to the risk that the valuations never improve or that the returns on value equity securities are less than returns on other styles of investing or the overall stock market |
■ | TheS&P 500® Index is an unmanaged index considered representative of the US stock market. |
■ | TheRussell 2000® Value Index is an unmanaged index considered representative of small-cap value stocks. The Russell 2000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. |
■ | The Lipper Small-Cap Value Funds Index is an unmanaged index considered representative of small-cap value funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
■ | CPA® and Certified Public Accountant®are trademarks owned by the American Institute of Certified Public Accountants. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco Small Cap Value Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–95.83% | |||
Agricultural & Farm Machinery–1.91% | |||
AGCO Corp. | 437,594 | $30,972,903 | |
Asset Management & Custody Banks–2.47% | |||
Affiliated Managers Group, Inc. | 361,700 | 40,119,764 | |
Auto Parts & Equipment–7.00% | |||
Dana, Inc. | 2,006,240 | 39,121,680 | |
Delphi Technologies PLC | 2,248,559 | 49,760,611 | |
Motorcar Parts of America, Inc.(b) | 788,109 | 16,282,332 | |
Visteon Corp. | 130,400 | 8,609,008 | |
113,773,631 | |||
Building Products–8.17% | |||
Builders FirstSource, Inc.(b) | 3,164,812 | 43,611,109 | |
JELD-WEN Holding, Inc.(b) | 1,090,600 | 21,539,350 | |
Masco Corp. | 21,351 | 833,970 | |
Masonite International Corp.(b) | 349,900 | 18,016,351 | |
Owens Corning | 951,500 | 48,783,405 | |
132,784,185 | |||
Construction & Engineering–6.16% | |||
AECOM(b) | 1,981,799 | 67,182,986 | |
Fluor Corp. | 831,200 | 33,023,576 | |
100,206,562 | |||
Construction Machinery & Heavy Trucks–1.23% | |||
REV Group, Inc. | 1,577,769 | 20,021,889 | |
Consumer Finance–1.01% | |||
SLM Corp. | 1,619,400 | 16,453,104 | |
Distributors–2.22% | |||
LKQ Corp.(b) | 1,199,500 | 36,104,950 | |
Diversified Chemicals–2.59% | |||
Chemours Co. (The) | 521,600 | 18,782,816 | |
Huntsman Corp. | 1,047,600 | 23,298,624 | |
42,081,440 | |||
Diversified Metals & Mining–0.00% | |||
Ferroglobe Representation & Warranty Insurance Trust(b)(c) | 1,203,948 | 0 | |
Electronic Components–1.36% | |||
Belden, Inc. | 398,068 | 22,112,677 | |
Electronic Manufacturing Services–2.53% | |||
Flex Ltd.(b) | 3,730,939 | 41,189,567 | |
Environmental & Facilities Services–3.41% | |||
Stericycle, Inc.(b) | 679,940 | 39,701,697 | |
Team, Inc.(b) | 931,007 | 15,734,018 | |
55,435,715 |
Shares | Value | ||
Health Care Distributors–1.76% | |||
Cardinal Health, Inc. | 253,200 | $12,333,372 | |
McKesson Corp. | 136,400 | 16,265,700 | |
28,599,072 | |||
Health Care Equipment–0.07% | |||
Invacare Corp. | 152,300 | 1,127,020 | |
Health Care Facilities–2.36% | |||
Brookdale Senior Living, Inc.(b) | 4,426,803 | 27,357,643 | |
Capital Senior Living Corp.(b) | 993,100 | 4,171,020 | |
Hanger, Inc.(b) | 343,900 | 6,833,293 | |
38,361,956 | |||
Home Furnishings–0.53% | |||
Ethan Allen Interiors, Inc. | 392,900 | 8,683,090 | |
Homebuilding–1.16% | |||
TopBuild Corp.(b) | 263,600 | 18,776,228 | |
Household Products–3.33% | |||
Energizer Holdings, Inc. | 674,100 | 32,282,649 | |
Spectrum Brands Holdings, Inc. | 355,835 | 21,908,761 | |
54,191,410 | |||
Human Resource & Employment Services–0.32% | |||
ManpowerGroup, Inc. | 46,033 | 4,421,009 | |
TrueBlue, Inc.(b) | 31,554 | 762,345 | |
5,183,354 | |||
Industrial Conglomerates–2.55% | |||
Carlisle Cos., Inc. | 292,600 | 41,379,492 | |
Industrial Machinery–0.52% | |||
Timken Co. (The) | 174,900 | 8,386,455 | |
Investment Banking & Brokerage–3.27% | |||
Greenhill & Co., Inc. | 30,222 | 625,897 | |
LPL Financial Holdings, Inc. | 551,719 | 40,876,861 | |
Stifel Financial Corp. | 195,100 | 11,641,617 | |
53,144,375 | |||
Life & Health Insurance–2.28% | |||
CNO Financial Group, Inc. | 2,241,318 | 37,093,813 | |
Metal & Glass Containers–2.81% | |||
Crown Holdings, Inc.(b) | 784,700 | 45,614,611 | |
Oil & Gas Equipment & Services–2.11% | |||
C&J Energy Services, Inc.(b) | 731,300 | 10,274,765 | |
Forum Energy Technologies, Inc.(b) | 1,553,300 | 9,288,734 | |
Helix Energy Solutions Group, Inc.(b) | 1,880,500 | 14,705,510 | |
34,269,009 |
10 | Invesco Small Cap Value Fund |
Shares | Value | ||
Oil & Gas Exploration & Production–4.92% | |||
Noble Energy, Inc. | 732,800 | $19,829,568 | |
Northern Oil and Gas, Inc.(b) | 3,648,498 | 9,668,520 | |
Parsley Energy, Inc., Class A(b) | 1,827,900 | 36,484,884 | |
QEP Resources, Inc.(b) | 1,860,700 | 13,992,464 | |
79,975,436 | |||
Paper Packaging–2.71% | |||
Sealed Air Corp. | 944,600 | 44,037,252 | |
Pharmaceuticals–2.27% | |||
Mylan N.V.(b) | 1,369,200 | 36,954,708 | |
Regional Banks–2.04% | |||
First Horizon National Corp. | 2,198,867 | 33,180,903 | |
Research & Consulting Services–0.73% | |||
Huron Consulting Group, Inc.(b) | 13,481 | 651,537 | |
Resources Connection, Inc. | 696,897 | 11,192,166 | |
11,843,703 | |||
Semiconductor Equipment–1.80% | |||
Kulicke & Soffa Industries, Inc. (Singapore) | 1,260,200 | 29,324,854 | |
Specialty Chemicals–1.41% | |||
Flotek Industries, Inc.(b) | 2,176,500 | 7,770,105 | |
Kraton Corp.(b) | 462,107 | 15,166,352 | |
22,936,457 | |||
Steel–5.08% | |||
Allegheny Technologies, Inc.(b) | 1,313,516 | 32,732,819 | |
Carpenter Technology Corp. | 1,003,904 | 49,863,911 | |
82,596,730 |
Shares | Value | ||
Thrifts & Mortgage Finance–6.64% | |||
Axos Financial, Inc.(b) | 907,312 | $29,687,249 | |
MGIC Investment Corp.(b) | 2,937,413 | 43,003,726 | |
Radian Group, Inc. | 1,501,386 | 35,162,460 | |
107,853,435 | |||
Trading Companies & Distributors–5.10% | |||
Beacon Roofing Supply, Inc.(b) | 658,137 | 24,785,439 | |
BMC Stock Holdings, Inc.(b) | 979,095 | 20,149,775 | |
DXP Enterprises, Inc.(b) | 203,400 | 8,723,826 | |
WESCO International, Inc.(b) | 509,700 | 29,175,228 | |
82,834,268 | |||
Total Common Stocks & Other Equity Interests (Cost $1,467,557,529) | 1,557,604,018 | ||
Money Market Funds–1.67% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d) | 9,518,896 | 9,518,896 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d) | 6,798,535 | 6,800,574 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(d) | 10,878,738 | 10,878,738 | |
Total Money Market Funds (Cost $27,196,257) | 27,198,208 | ||
TOTAL INVESTMENTS IN SECURITIES–97.50% (Cost $1,494,753,786) | 1,584,802,226 | ||
OTHER ASSETS LESS LIABILITIES–2.50% | 40,656,557 | ||
NET ASSETS–100.00% | $1,625,458,783 |
(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 valued using significant unobservable inputs (Level 3). See Note 3. |
(d) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
11 | Invesco Small Cap Value Fund |
Assets: | |
Investments in securities, at value (Cost $1,467,557,529) | $1,557,604,018 |
Investments in affiliated money market funds, at value (Cost $27,196,257) | 27,198,208 |
Receivable for: | |
Investments sold | 16,547,594 |
Fund shares sold | 30,018,218 |
Dividends | 371,043 |
Investment for trustee deferred compensation and retirement plans | 261,684 |
Other assets | 40,658 |
Total assets | 1,632,041,423 |
Liabilities: | |
Payable for: | |
Fund shares reacquired | 4,125,712 |
Amount due custodian | 853,508 |
Accrued fees to affiliates | 1,156,749 |
Accrued trustees’ and officers’ fees and benefits | 3,220 |
Accrued other operating expenses | 151,831 |
Trustee deferred compensation and retirement plans | 291,620 |
Total liabilities | 6,582,640 |
Net assets applicable to shares outstanding | $1,625,458,783 |
Net assets consist of: | |
Shares of beneficial interest | $1,543,344,971 |
Distributable earnings | 82,113,812 |
$1,625,458,783 |
Net Assets: | |
Class A | $662,115,222 |
Class C | $22,059,394 |
Class Y | $875,875,215 |
Class R6 | $65,408,952 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 46,972,380 |
Class C | 2,469,453 |
Class Y | 58,568,421 |
Class R6 | 4,354,280 |
Class A: | |
Net asset value per share | $14.10 |
Maximum offering price per share (Net asset value of $14.10 ÷ 94.50%) | $14.92 |
Class C: | |
Net asset value and offering price per share | $8.93 |
Class Y: | |
Net asset value and offering price per share | $14.95 |
Class R6: | |
Net asset value and offering price per share | $15.02 |
12 | Invesco Small Cap Value Fund |
Investment income: | |
Dividends | $16,956,959 |
Dividends from affiliated money market funds | 1,090,272 |
Total investment income | 18,047,231 |
Expenses: | |
Advisory fees | 12,780,143 |
Administrative services fees | 377,242 |
Custodian fees | 35,632 |
Distribution fees: | |
Class A | 1,923,374 |
Class C | 544,225 |
Transfer agent fees — A, C and Y | 3,687,132 |
Transfer agent fees — R6 | 8,297 |
Trustees’ and officers’ fees and benefits | 51,347 |
Registration and filing fees | 136,642 |
Reports to shareholders | 205,941 |
Professional services fees | 87,715 |
Other | 50,609 |
Total expenses | 19,888,299 |
Less: Fees waived and expense offset arrangement(s) | (61,310) |
Net expenses | 19,826,989 |
Net investment income (loss) | (1,779,758) |
Realized and unrealized gain (loss) from: | |
Net realized gain from Investment securities | 85,150,289 |
Change in net unrealized appreciation (depreciation) of Investment securities | (198,347,184) |
Net realized and unrealized gain (loss) | (113,196,895) |
Net increase (decrease) in net assets resulting from operations | $(114,976,653) |
13 | Invesco Small Cap Value Fund |
2019 | 2018 | |
Operations: | ||
Net investment income (loss) | $(1,779,758) | $(5,068,830) |
Net realized gain | 85,150,289 | 415,963,865 |
Change in net unrealized appreciation (depreciation) | (198,347,184) | (128,313,041) |
Net increase (decrease) in net assets resulting from operations | (114,976,653) | 282,581,994 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (132,802,646) | (151,563,858) |
Class B | — | (1,022,675) |
Class C | (14,194,064) | (16,734,389) |
Class Y | (177,702,688) | (208,778,203) |
Class R6 | (7,472,773) | (2,519,491) |
Total distributions to shareholders from distributable earnings | (332,172,171) | (380,618,616) |
Share transactions–net: | ||
Class A | (101,574,893) | (122,639,885) |
Class B | — | (8,240,481) |
Class C | (34,019,574) | (11,666,219) |
Class Y | (276,425,272) | 3,493,471 |
Class R6 | 49,772,898 | 28,296,553 |
Net increase (decrease) in net assets resulting from share transactions | (362,246,841) | (110,756,561) |
Net increase (decrease) in net assets | (809,395,665) | (208,793,183) |
Net assets: | ||
Beginning of year | 2,434,854,448 | 2,643,647,631 |
End of year | $1,625,458,783 | $2,434,854,448 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net realized gains. |
14 | Invesco Small Cap Value Fund |
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||||
Year ended 04/30/19 | $18.53 | $(0.04) | $(1.22) | $(1.26) | $— | $(3.17) | $(3.17) | $14.10 | (3.16)% | $662,115 | 1.12%(d) | 1.12%(d) | (0.22)%(d) | 43% |
Year ended 04/30/18 | 19.44 | (0.06) | 2.31 | 2.25 | — | (3.16) | (3.16) | 18.53 | 11.32 | 933,986 | 1.12 | 1.12 | (0.31) | 28 |
Year ended 04/30/17 | 16.21 | (0.02) | 3.60 | 3.58 | (0.03) | (0.32) | (0.35) | 19.44 | 22.14 | 1,094,070 | 1.10 | 1.11 | (0.12) | 32 |
Year ended 04/30/16 | 20.33 | 0.04 | (2.37) | (2.33) | (0.01) | (1.78) | (1.79) | 16.21 | (11.43) | 1,320,826 | 1.11 | 1.11 | 0.24 | 45 |
Year ended 04/30/15 | 22.75 | (0.00) | 0.95 | 0.95 | — | (3.37) | (3.37) | 20.33 | 5.59 | 1,751,109 | 1.13 | 1.13 | (0.02) | 44 |
Class C | ||||||||||||||
Year ended 04/30/19 | 13.29 | (0.11) | (1.08) | (1.19) | — | (3.17) | (3.17) | 8.93 | (3.98) | 22,059 | 1.87(d) | 1.87(d) | (0.97)(d) | 43 |
Year ended 04/30/18 | 14.83 | (0.15) | 1.77 | 1.62 | — | (3.16) | (3.16) | 13.29 | 10.53(e) | 76,302 | 1.86(e) | 1.86(e) | (1.05)(e) | 28 |
Year ended 04/30/17 | 12.50 | (0.12) | 2.76 | 2.65 | — | (0.32) | (0.32) | 14.83 | 21.23(e) | 95,892 | 1.84(e) | 1.85(e) | (0.86)(e) | 32 |
Year ended 04/30/16 | 16.25 | (0.07) | (1.90) | (1.97) | — | (1.78) | (1.78) | 12.50 | (12.11) | 107,647 | 1.86 | 1.86 | (0.51) | 45 |
Year ended 04/30/15 | 19.02 | (0.13) | 0.73 | 0.60 | — | (3.37) | (3.37) | 16.25 | 4.80(e) | 151,196 | 1.86(e) | 1.86(e) | (0.75)(e) | 44 |
Class Y | ||||||||||||||
Year ended 04/30/19 | 19.37 | 0.01 | (1.26) | (1.25) | — | (3.17) | (3.17) | 14.95 | (2.97) | 875,875 | 0.87(d) | 0.87(d) | 0.03(d) | 43 |
Year ended 04/30/18 | 20.15 | (0.01) | 2.39 | 2.38 | — | (3.16) | (3.16) | 19.37 | 11.58 | 1,397,754 | 0.87 | 0.87 | (0.06) | 28 |
Year ended 04/30/17 | 16.79 | 0.02 | 3.74 | 3.76 | (0.08) | (0.32) | (0.40) | 20.15 | 22.45 | 1,445,051 | 0.85 | 0.86 | 0.13 | 32 |
Year ended 04/30/16 | 20.97 | 0.09 | (2.45) | (2.36) | (0.04) | (1.78) | (1.82) | 16.79 | (11.19) | 1,329,637 | 0.86 | 0.86 | 0.49 | 45 |
Year ended 04/30/15 | 23.31 | 0.05 | 0.98 | 1.03 | — | (3.37) | (3.37) | 20.97 | 5.81 | 1,614,118 | 0.88 | 0.88 | 0.23 | 44 |
Class R6 | ||||||||||||||
Year ended 04/30/19 | 19.41 | 0.03 | (1.25) | (1.22) | — | (3.17) | (3.17) | 15.02 | (2.80) | 65,409 | 0.71(d) | 0.71(d) | 0.19(d) | 43 |
Year ended 04/30/18 | 20.16 | 0.02 | 2.39 | 2.41 | — | (3.16) | (3.16) | 19.41 | 11.73 | 26,813 | 0.69 | 0.69 | 0.12 | 28 |
Year ended 04/30/17(f) | 20.29 | 0.01 | (0.14) | (0.13) | — | — | — | 20.16 | (0.64) | 469 | 0.72(g) | 0.72(g) | 0.26(g) | 32 |
(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 omitted) of $769,350, $54,489, $1,136,967 and $40,023 for Class A, Class C, Class Y and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.99% for the years ended April 30, 2018, 2017 and 2015, respectively. |
(f) | Commencement date of February 7, 2017. |
(g) | Annualized. |
15 | Invesco Small Cap Value Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
16 | Invesco Small Cap Value Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
17 | Invesco Small Cap Value Fund |
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
Average Daily Net Assets | Rate |
First $500 million | 0.67% |
Next $500 million | 0.645% |
Over $1 billion | 0.62% |
18 | Invesco Small Cap Value Fund |
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
Common Stocks & Other Equity Interests | $1,557,604,018 | $— | $0 | $1,557,604,018 |
Money Market Funds | 27,198,208 | — | — | 27,198,208 |
Total Investments | $1,584,802,226 | $— | $0 | $1,584,802,226 |
Value 04/30/18 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value 04/30/19 | Dividend Income | |
American Outdoor Brands Corp.(a) | $50,368,989 | $— | $(52,106,249) | $28,875,335 | $(27,138,075) | $— | $— |
Hanger, Inc.(a) | 86,435,164 | — | (84,640,824) | 14,271,766 | (9,232,813) | 6,833,293 | — |
Kforce Inc.(a) | 40,313,255 | — | (53,452,828) | (10,710,294) | 23,849,867 | — | 94,019 |
MDC Partners Inc.– Class A(a) | 34,336,486 | — | (12,945,904) | 54,212,360 | (75,602,942) | — | — |
Total | $211,453,894 | $— | $(203,145,805) | $86,649,167 | $(88,123,963) | $6,833,293 | $94,019 |
(a)As of April 30, 2019, this security is no longer considered as an affiliate of the Fund. |
19 | Invesco Small Cap Value Fund |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $22,332,893 | $17,009,297 |
Long-term capital gain | 309,839,278 | 363,609,319 |
Total distributions | $332,172,171 | $380,618,616 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Net unrealized appreciation — investments | 86,228,879 |
Temporary book/tax differences | (249,596) |
Late-Year ordinary loss deferral | (422,312) |
Post-October capital loss deferral | (3,443,159) |
Shares of beneficial interest | 1,543,344,971 |
Total net assets | $1,625,458,783 |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $243,694,381 |
Aggregate unrealized (depreciation) of investments | (157,465,502) |
Net unrealized appreciation of investments | $86,228,879 |
20 | Invesco Small Cap Value Fund |
21 | Invesco Small Cap Value Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 6,438,723 | $99,781,448 | 5,655,726 | $111,022,084 | |
Class B(b) | — | — | 1,336 | 21,013 | |
Class C | 291,115 | 2,707,631 | 128,619 | 1,889,774 | |
Class Y | 12,975,591 | 209,325,329 | 14,502,085 | 296,417,165 | |
Class R6 | 4,523,594 | 75,108,753 | 1,394,417 | 29,058,635 | |
Issued as reinvestment of dividends: | |||||
Class A | 10,919,128 | 126,771,080 | 7,772,737 | 146,205,191 | |
Class B(b) | — | — | 69,697 | 988,298 | |
Class C | 1,808,563 | 13,347,193 | 1,170,766 | 15,840,462 | |
Class Y | 12,834,262 | 157,989,771 | 9,501,911 | 186,712,559 | |
Class R6 | 601,408 | 7,433,399 | 127,944 | 2,517,937 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 247,221 | 5,018,579 | |
Class B | — | — | (327,676) | (5,018,579) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 2,045,445 | 26,511,273 | - | - | |
Class C | (3,220,634) | (26,511,273) | - | - | |
Reacquired: | |||||
Class A | (22,831,931) | (354,638,694) | (19,555,087) | (384,885,739) | |
Class B(b) | — | — | (272,949) | (4,231,213) | |
Class C | (2,151,563) | (23,563,125) | (2,021,757) | (29,396,455) | |
Class Y | (39,393,058) | (643,740,372) | (23,562,698) | (479,636,253) | |
Class R6 | (2,151,890) | (32,769,254) | (164,477) | (3,280,019) | |
Net increase (decrease) in share activity | (17,311,247) | $(362,246,841) | (5,332,185) | $(110,756,561) |
(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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
22 | Invesco Small Cap Value Fund |
23 | Invesco Small Cap Value Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,090.90 | $5.91 | $1,019.14 | $5.71 | 1.14% |
Class C | 1,000.00 | 1,086.00 | 9.88 | 1,015.32 | 9.54 | 1.91 |
Class Y | 1,000.00 | 1,091.50 | 4.62 | 1,020.38 | 4.46 | 0.89 |
Class R6 | 1,000.00 | 1,092.50 | 3.63 | 1,021.32 | 3.51 | 0.70 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
24 | Invesco Small Cap Value Fund |
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | $309,839,278 |
Qualified Dividend Income* | 67.83% |
Corporate Dividends Received Deduction* | 67.84% |
U.S. Treasury Obligations* | 0.00% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
Non-Resident Alien Shareholders | |
Qualified Short-Term Gains | $22,332,893 |
25 | Invesco Small Cap Value Fund |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Small Cap Value Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Small Cap Value Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Small Cap Value Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Small Cap Value Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Small Cap Value Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | VK-SCV-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Technology Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Technology Fund |
Class A Shares | 14.85% |
Class C Shares | 13.98 |
Class Y Shares | 15.16 |
Investor Class Shares | 15.00 |
Class R5 Shares | 15.34 |
Class R6 Shares | 15.34 |
NASDAQ Composite Index▼ (Broad Market/Style-Specific Index) | 15.82 |
Lipper Science & Technology Funds Index■ (Peer Group Index) | 17.83 |
Source(s):▼FactSet Research Systems Inc.;■ Lipper Inc. |
Portfolio Composition | |
By sector | % of total net assets |
Information Technology | 39.73% |
Communication Services | 28.84 |
Consumer Discretionary | 16.07 |
Health Care | 12.49 |
Industrials | 0.41 |
Money Market Funds Plus Other Assets Less Liabilities | 2.46 |
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | Amazon.com, Inc. | 9.61% |
2. | Facebook, Inc., Class A | 5.52 |
3. | Microsoft Corp. | 5.38 |
4. | Alphabet, Inc., Class A | 5.25 |
5. | Apple, Inc. | 4.94 |
6. | Alibaba Group Holding Ltd., ADR | 4.44 |
7. | Nintendo Co., Ltd. | 3.24 |
8. | Illumina, Inc. | 3.01 |
9. | PayPal Holdings, Inc. | 2.74 |
10. | salesforce.com, inc. | 2.56 |
Total Net Assets | $980.5 million |
Total Number of Holdings* | 50 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Technology Fund |
5 | Invesco Technology Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: Lipper Inc. |
3 | It is Invesco’s policy to chart the Fund’s oldest share class(es). Because Investor Class shares do not have a sales charge, we also show the oldest share class with a sales charge, Class C shares. |
6 | Invesco Technology Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (3/28/02) | 5.74% |
10 Years | 14.79 |
5 Years | 13.04 |
1 Year | 8.54 |
Class C Shares | |
Inception (2/14/00) | –0.92% |
10 Years | 14.59 |
5 Years | 13.47 |
1 Year | 12.98 |
Class Y Shares | |
Inception (10/3/08) | 14.17% |
10 Years | 15.73 |
5 Years | 14.62 |
1 Year | 15.16 |
Investor Class Shares | |
Inception (1/19/84) | 10.38% |
10 Years | 15.53 |
5 Years | 14.44 |
1 Year | 15.00 |
Class R5 Shares | |
Inception (12/21/98) | 5.69% |
10 Years | 16.11 |
5 Years | 14.87 |
1 Year | 15.34 |
Class R6 Shares | |
10 Years | 15.55% |
5 Years | 14.53 |
1 Year | 15.34 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (3/28/02) | 5.43% |
10 Years | 15.46 |
5 Years | 11.05 |
1 Year | 3.63 |
Class C Shares | |
Inception (2/14/00) | –1.20% |
10 Years | 15.25 |
5 Years | 11.47 |
1 Year | 7.83 |
Class Y Shares | |
Inception (10/3/08) | 13.70% |
10 Years | 16.40 |
5 Years | 12.60 |
1 Year | 9.93 |
Investor Class Shares | |
Inception (1/19/84) | 10.23% |
10 Years | 16.20 |
5 Years | 12.42 |
1 Year | 9.77 |
Class R5 Shares | |
Inception (12/21/98) | 5.43% |
10 Years | 16.78 |
5 Years | 12.86 |
1 Year | 10.10 |
Class R6 Shares | |
10 Years | 16.21% |
5 Years | 12.51 |
1 Year | 10.10 |
7 | Invesco Technology Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class Y sharesand Investor Class shares are available only to certain investors. Please see the prospectus for more information. |
■ | Class R5 shares andClass R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Depositary receipts risk.Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer. |
■ | Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the eco- |
nomic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. | |
■ | Emerging markets securities risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably. In addition, investments in emerging markets securities may also be subject to additional transaction costs, delays in settlement procedures, and lack of timely information. |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. |
■ | Growth investing risk. Growth stocks tend to be more expensive relative to the issuing company’s earnings or assets compared with other types of stock. As a result, they tend to be more sensitive to changes in, or investors’ expectations of, the issuing company’s earnings and can be more volatile. |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk. The market values of the Fund’s investments, and therefore the |
8 | Invesco Technology Fund |
value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | Mid-capitalization companies risk. Mid-capitalization companies tend to be more vulnerable to changing market conditions and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | Technology sector risk. The Fund will concentrate its investments in the securities of issuers engaged primarily in technology-related industries. Technology companies are subject to intense competition, rapid obsolescence of their products, issues with obtaining financing or regulatory approvals, product incompatibility, changing consumer preferences, high required corporate capital expenditure for research and development or infrastructure and development of new products, each of which make the prices of securities issued by these companies more volatile. |
■ | TheNASDAQ Composite Index is a broad-based market index of the common stocks and similar securities listed on the Nasdaq stock market. |
■ | TheLipper Science & Technology Funds Index is an unmanaged index considered representative of science and technology funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indi- |
■ | CPA® and Certified Public Accountant® are trademarks owned by the American Institute of Certified Public Accountants. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco Technology Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–97.54% | |||
Alternative Carriers–2.04% | |||
Intelsat S.A.(b) | 987,254 | $19,982,021 | |
Application Software–5.19% | |||
Adobe, Inc.(b) | 74,007 | 21,406,525 | |
salesforce.com, inc.(b) | 151,697 | 25,083,099 | |
Splunk, Inc.(b) | 31,576 | 4,358,751 | |
50,848,375 | |||
Biotechnology–1.02% | |||
Alexion Pharmaceuticals, Inc.(b) | 73,464 | 10,000,654 | |
Consumer Electronics–1.52% | |||
Sony Corp. (Japan) | 294,600 | 14,923,117 | |
Data Processing & Outsourced Services–7.49% | |||
First Data Corp., Class A(b) | 166,491 | 4,305,457 | |
Mastercard, Inc., Class A | 68,668 | 17,458,152 | |
PayPal Holdings, Inc.(b) | 238,128 | 26,853,695 | |
Visa, Inc., Class A | 151,095 | 24,844,551 | |
73,461,855 | |||
Health Care Equipment–5.08% | |||
Abbott Laboratories | 167,767 | 13,347,543 | |
Boston Scientific Corp.(b) | 201,120 | 7,465,574 | |
Intuitive Surgical, Inc.(b) | 19,300 | 9,855,159 | |
Stryker Corp. | 26,295 | 4,967,389 | |
Teleflex, Inc. | 49,591 | 14,191,952 | |
49,827,617 | |||
Interactive Home Entertainment–11.27% | |||
Activision Blizzard, Inc. | 383,304 | 18,479,086 | |
Electronic Arts, Inc.(b) | 171,661 | 16,247,714 | |
Nintendo Co., Ltd. (Japan) | 92,700 | 31,788,370 | |
Sea Ltd. ADR (Thailand)(b) | 640,099 | 15,932,064 | |
Take-Two Interactive Software, Inc.(b) | 58,989 | 5,711,905 | |
Ubisoft Entertainment S.A. (France)(b) | 234,181 | 22,336,397 | |
110,495,536 | |||
Interactive Media & Services–13.58% | |||
Alphabet, Inc., Class A(b) | 42,982 | 51,533,699 | |
Alphabet, Inc. Class C(b) | 14,985 | 17,809,373 | |
Facebook, Inc., Class A(b) | 280,034 | 54,158,575 | |
Match Group, Inc. | 160,285 | 9,681,214 | |
133,182,861 | |||
Internet & Direct Marketing Retail–14.55% | |||
Alibaba Group Holding Ltd. ADR (China)(b) | 234,645 | 43,543,072 | |
Amazon.com, Inc.(b) | 48,919 | 94,243,432 | |
Booking Holdings, Inc.(b) | 2,619 | 4,858,219 | |
142,644,723 |
Shares | Value | ||
Life Sciences Tools & Services–5.89% | |||
Illumina, Inc.(b) | 94,695 | $29,544,840 | |
IQVIA Holdings, Inc.(b) | 113,754 | 15,800,431 | |
Thermo Fisher Scientific, Inc. | 44,649 | 12,387,865 | |
57,733,136 | |||
Managed Health Care–0.50% | |||
UnitedHealth Group, Inc. | 21,229 | 4,947,843 | |
Movies & Entertainment–1.95% | |||
Netflix, Inc.(b) | 51,604 | 19,121,346 | |
Semiconductor Equipment–4.63% | |||
Applied Materials, Inc. | 535,288 | 23,590,142 | |
ASML Holding N.V. New York Shares (Netherlands) | 104,413 | 21,803,523 | |
45,393,665 | |||
Semiconductors–8.55% | |||
Broadcom, Inc. | 67,929 | 21,628,594 | |
NVIDIA Corp. | 63,661 | 11,522,641 | |
QUALCOMM, Inc. | 222,575 | 19,170,385 | |
Semtech Corp.(b) | 211,574 | 11,397,491 | |
Silicon Motion Technology Corp. ADR (Taiwan) | 525,168 | 20,082,424 | |
83,801,535 | |||
Systems Software–8.93% | |||
Microsoft Corp. | 404,114 | 52,777,288 | |
Palo Alto Networks, Inc.(b) | 65,354 | 16,262,036 | |
ServiceNow, Inc.(b) | 68,368 | 18,562,596 | |
87,601,920 | |||
Technology Hardware, Storage & Peripherals–4.94% | |||
Apple, Inc. | 241,353 | 48,432,306 | |
Trucking–0.41% | |||
Lyft, Inc., Class A(b)(c) | 66,878 | 3,999,304 | |
Total Common Stocks & Other Equity Interests (Cost $499,420,076) | 956,397,814 | ||
Money Market Funds–0.59% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d) | 2,054,969 | 2,054,969 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d) | 1,466,587 | 1,467,027 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(d) | 2,314,434 | 2,314,434 | |
Total Money Market Funds (Cost $5,836,421) | 5,836,430 | ||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-98.13% (Cost $505,256,497) | 962,234,244 |
10 | Invesco Technology Fund |
Shares | Value | ||
Investments Purchased with Cash Collateral from Securities on Loan | |||
Money Market Funds–0.38% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d)(e) | 2,798,835 | $2,798,835 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d)(e) | 932,665 | 932,945 | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $3,731,780) | 3,731,780 | ||
TOTAL INVESTMENTS IN SECURITIES–98.51% (Cost $508,988,277) | 965,966,024 | ||
OTHER ASSETS LESS LIABILITIES–1.49% | 14,560,905 | ||
NET ASSETS–100.00% | $980,526,929 |
ADR | – American Depositary Receipt |
(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 April 30, 2019. |
(d) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
(e) | 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. |
11 | Invesco Technology Fund |
Assets: | |
Investments in securities, at value (Cost $499,420,076)1 | $956,397,814 |
Investments in affiliated money market funds, at value (Cost $9,568,201) | 9,568,210 |
Cash | 2,750,546 |
Foreign currencies, at value (Cost $296) | 297 |
Receivable for: | |
Investments sold | 23,299,575 |
Fund shares sold | 164,791 |
Dividends | 1,023,664 |
Investment for trustee deferred compensation and retirement plans | 193,960 |
Other assets | 37,416 |
Total assets | 993,436,273 |
Liabilities: | |
Payable for: | |
Investments purchased | 7,545,502 |
Fund shares reacquired | 648,798 |
Collateral upon return of securities loaned | 3,731,780 |
Accrued fees to affiliates | 630,454 |
Accrued trustees’ and officers’ fees and benefits | 2,789 |
Accrued other operating expenses | 135,917 |
Trustee deferred compensation and retirement plans | 214,104 |
Total liabilities | 12,909,344 |
Net assets applicable to shares outstanding | $980,526,929 |
Net assets consist of: | |
Shares of beneficial interest | $474,792,296 |
Distributable earnings | 505,734,633 |
$980,526,929 | |
Net Assets: | |
Class A | $443,049,700 |
Class C | $28,216,961 |
Class Y | $32,657,897 |
Investor Class | $475,856,981 |
Class R5 | $262,773 |
Class R6 | $482,617 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 8,918,868 |
Class C | 719,575 |
Class Y | 646,079 |
Investor Class | 9,625,842 |
Class R5 | 4,440 |
Class R6 | 8,153 |
Class A: | |
Net asset value per share | $49.68 |
Maximum offering price per share (Net asset value of $49.68 ÷ 94.50%) | $52.57 |
Class C: | |
Net asset value and offering price per share | $39.21 |
Class Y: | |
Net asset value and offering price per share | $50.55 |
Investor Class: | |
Net asset value and offering price per share | $49.44 |
Class R5: | |
Net asset value and offering price per share | $59.18 |
Class R6: | |
Net asset value and offering price per share | $59.20 |
1 | At April 30, 2019, securities with an aggregate value of $3,646,912 were on loan to brokers. |
12 | Invesco Technology Fund |
Investment income: | |
Dividends (net of foreign withholding taxes of $130,376) | $4,528,326 |
Dividends from affiliated money market funds (includes securities lending income of $7,906) | 366,224 |
Total investment income | 4,894,550 |
Expenses: | |
Advisory fees | 6,197,316 |
Administrative services fees | 205,687 |
Custodian fees | 67,121 |
Distribution fees: | |
Class A | 1,012,906 |
Class C | 398,898 |
Investor Class | 586,962 |
Transfer agent fees— A, C, Y and Investor | 2,457,000 |
Transfer agent fees — R5 | 182 |
Transfer agent fees — R6 | 127 |
Trustees’ and officers’ fees and benefits | 36,145 |
Registration and filing fees | 101,750 |
Reports to shareholders | 96,038 |
Professional services fees | 48,060 |
Other | 20,408 |
Total expenses | 11,228,600 |
Less: Fees waived and expense offset arrangement(s) | (51,901) |
Net expenses | 11,176,699 |
Net investment income (loss) | (6,282,149) |
Realized and unrealized gain from: | |
Net realized gain from: | |
Investment securities | 81,191,809 |
Foreign currencies | 1,788 |
81,193,597 | |
Change in net unrealized appreciation of: | |
Investment securities | 51,277,694 |
Foreign currencies | 33,222 |
51,310,916 | |
Net realized and unrealized gain | 132,504,513 |
Net increase in net assets resulting from operations | $126,222,364 |
13 | Invesco Technology Fund |
2019 | 2018 | |
Operations: | ||
Net investment income (loss) | $(6,282,149) | $(5,235,823) |
Net realized gain | 81,193,597 | 67,117,063 |
Change in net unrealized appreciation | 51,310,916 | 107,343,428 |
Net increase in net assets resulting from operations | 126,222,364 | 169,224,668 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (29,341,022) | (13,941,905) |
Class B | — | (102,497) |
Class C | (4,044,783) | (1,700,242) |
Class Y | (2,636,792) | (994,138) |
Investor Class | (33,562,031) | (17,229,581) |
Class R5 | (14,556) | (8,304) |
Class R6 | (2,866) | (681) |
Total distributions to shareholders from distributable earnings | (69,602,050) | (33,977,348) |
Share transactions–net: | ||
Class A | 38,822,626 | 10,590,273 |
Class B | — | (3,903,177) |
Class C | (10,928,886) | 5,092,812 |
Class Y | 4,471,260 | 6,525,350 |
Investor Class | (1,318,955) | (6,546,005) |
Class R5 | 79,006 | (12,533) |
Class R6 | 357,314 | 28,877 |
Net increase in net assets resulting from share transactions | 31,482,365 | 11,775,597 |
Net increase in net assets | 88,102,679 | 147,022,917 |
Net assets: | ||
Beginning of year | 892,424,250 | 745,401,333 |
End of year | $980,526,929 | $892,424,250 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net realized gains. |
14 | Invesco Technology Fund |
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Distributions from net realized gains | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||
Year ended 04/30/19 | $46.98 | $(0.34) | $6.66 | $6.32 | $(3.62) | $49.68 | 14.87% | $443,050 | 1.23%(d) | 1.23%(d) | (0.71)%(d) | 48% |
Year ended 04/30/18 | 39.78 | (0.29) | 9.31 | 9.02 | (1.82) | 46.98 | 22.94 | 377,444 | 1.27 | 1.28 | (0.63) | 47 |
Year ended 04/30/17 | 32.99 | (0.23) | 9.39 | 9.16 | (2.37) | 39.78 | 28.80 | 310,505 | 1.43 | 1.43 | (0.65) | 49 |
Year ended 04/30/16 | 37.86 | (0.26) | (2.09) | (2.35) | (2.52) | 32.99 | (6.83) | 279,234 | 1.39 | 1.39 | (0.70) | 46 |
Year ended 04/30/15 | 37.61 | (0.35) | 5.88 | 5.53 | (5.28) | 37.86 | 15.27 | 311,682 | 1.40 | 1.40 | (0.89) | 67 |
Class C | ||||||||||||
Year ended 04/30/19 | 38.15 | (0.57) | 5.25 | 4.68 | (3.62) | 39.21 | 13.98 | 28,217 | 1.98(d) | 1.98(d) | (1.46)(d) | 48 |
Year ended 04/30/18 | 32.84 | (0.51) | 7.64 | 7.13 | (1.82) | 38.15 | 22.02 | 39,954 | 2.02 | 2.03 | (1.38) | 47 |
Year ended 04/30/17 | 27.80 | (0.42) | 7.83 | 7.41 | (2.37) | 32.84 | 27.85 | 29,930 | 2.18 | 2.18 | (1.40) | 49 |
Year ended 04/30/16 | 32.53 | (0.45) | (1.76) | (2.21) | (2.52) | 27.80 | (7.53) | 27,898 | 2.14 | 2.14 | (1.45) | 46 |
Year ended 04/30/15 | 33.22 | (0.56) | 5.15 | 4.59 | (5.28) | 32.53 | 14.40 | 30,645 | 2.15 | 2.15 | (1.64) | 67 |
Class Y | ||||||||||||
Year ended 04/30/19 | 47.62 | (0.22) | 6.77 | 6.55 | (3.62) | 50.55 | 15.16 | 32,658 | 0.98(d) | 0.98(d) | (0.46)(d) | 48 |
Year ended 04/30/18 | 40.21 | (0.18) | 9.41 | 9.23 | (1.82) | 47.62 | 23.22 | 27,364 | 1.02 | 1.03 | (0.38) | 47 |
Year ended 04/30/17 | 33.24 | (0.14) | 9.48 | 9.34 | (2.37) | 40.21 | 29.13 | 17,205 | 1.18 | 1.18 | (0.40) | 49 |
Year ended 04/30/16 | 38.04 | (0.17) | (2.11) | (2.28) | (2.52) | 33.24 | (6.61) | 9,256 | 1.14 | 1.14 | (0.45) | 46 |
Year ended 04/30/15 | 37.67 | (0.25) | 5.90 | 5.65 | (5.28) | 38.04 | 15.58 | 9,013 | 1.15 | 1.15 | (0.64) | 67 |
Investor Class | ||||||||||||
Year ended 04/30/19 | 46.71 | (0.28) | 6.63 | 6.35 | (3.62) | 49.44 | 15.02(e) | 475,857 | 1.11(d)(e) | 1.11(d)(e) | (0.59)(d)(e) | 48 |
Year ended 04/30/18 | 39.53 | (0.25) | 9.25 | 9.00 | (1.82) | 46.71 | 23.03(e) | 447,456 | 1.19(e) | 1.20(e) | (0.55)(e) | 47 |
Year ended 04/30/17 | 32.78 | (0.21) | 9.33 | 9.12 | (2.37) | 39.53 | 28.86(e) | 384,283 | 1.35(e) | 1.35(e) | (0.57)(e) | 49 |
Year ended 04/30/16 | 37.60 | (0.22) | (2.08) | (2.30) | (2.52) | 32.78 | (6.73)(e) | 330,298 | 1.30(e) | 1.30(e) | (0.61)(e) | 46 |
Year ended 04/30/15 | 37.34 | (0.31) | 5.85 | 5.54 | (5.28) | 37.60 | 15.41(e) | 383,681 | 1.30(e) | 1.30(e) | (0.78)(e) | 67 |
Class R5 | ||||||||||||
Year ended 04/30/19 | 55.03 | (0.16) | 7.93 | 7.77 | (3.62) | 59.18 | 15.34 | 263 | 0.81(d) | 0.81(d) | (0.29)(d) | 48 |
Year ended 04/30/18 | 46.14 | (0.11) | 10.82 | 10.71 | (1.82) | 55.03 | 23.44 | 163 | 0.85 | 0.85 | (0.21) | 47 |
Year ended 04/30/17 | 37.74 | (0.05) | 10.82 | 10.77 | (2.37) | 46.14 | 29.45 | 132 | 0.92 | 0.92 | (0.14) | 49 |
Year ended 04/30/16 | 42.75 | (0.08) | (2.41) | (2.49) | (2.52) | 37.74 | (6.36) | 465 | 0.87 | 0.87 | (0.18) | 46 |
Year ended 04/30/15 | 41.63 | (0.16) | 6.56 | 6.40 | (5.28) | 42.75 | 15.91 | 965 | 0.87 | 0.87 | (0.36) | 67 |
Class R6 | ||||||||||||
Year ended 04/30/19 | 55.04 | (0.15) | 7.93 | 7.78 | (3.62) | 59.20 | 15.36 | 483 | 0.80(d) | 0.80(d) | (0.28)(d) | 48 |
Year ended 04/30/18 | 46.14 | (0.11) | 10.83 | 10.72 | (1.82) | 55.04 | 23.47 | 42 | 0.85 | 0.85 | (0.21) | 47 |
Year ended 04/30/17(f) | 44.75 | (0.00) | 1.39 | 1.39 | — | 46.14 | 3.10 | 10 | 0.89(g) | 0.89(g) | (0.11)(g) | 49 |
(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 omitted) of $405,162, $39,890, $31,642, $458,806 , $201 and $175 for Class A, Class C, Class Y, Investor Class, Class R5 and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.13%, 0.17%, 0.17% 0.16% and 0.15% for the years ended April 30, 2019, 2018, 2017, 2016 and 2015, respectively. |
(f) | Commencement date of April 4, 2017. |
(g) | Annualized. |
15 | Invesco Technology Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
16 | Invesco Technology Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | 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. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund |
17 | Invesco Technology Fund |
will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included inDividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
L. | Other Risks - The Fund’s investments are concentrated in a comparatively narrow segment of the economy, which may make the Fund more volatile. |
Average Daily Net Assets | Rate |
First $350 million | 0.75% |
Next $350 million | 0.65% |
Next $1.3 billion | 0.55% |
Next $2 billion | 0.45% |
Next $2 billion | 0.40% |
Next $2 billion | 0.375% |
Over $8 billion | 0.35% |
18 | Invesco Technology Fund |
19 | Invesco Technology Fund |
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
Common Stocks & Other Equity Interests | $909,686,327 | $46,711,487 | $— | $956,397,814 |
Money Market Funds | 9,568,210 | — | — | 9,568,210 |
Total Investments | $919,254,537 | $46,711,487 | $— | $965,966,024 |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $— | $3,077,054 |
Long-term capital gain | 69,602,050 | 30,900,294 |
Total distributions | $69,602,050 | $33,977,348 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Undistributed long-term capital gain | $61,521,107 |
Net unrealized appreciation — investments | 452,683,083 |
Net unrealized appreciation — foreign currencies | 20,599 |
Temporary book/tax differences | (182,526) |
Late-Year ordinary loss deferral | (2,278,120) |
Post-October capital loss deferral | (6,029,510) |
Shares of beneficial interest | 474,792,296 |
Total net assets | $980,526,929 |
20 | Invesco Technology Fund |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $455,651,956 |
Aggregate unrealized (depreciation) of investments | (2,968,873) |
Net unrealized appreciation of investments | $452,683,083 |
21 | Invesco Technology Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 1,165,594 | $57,202,175 | 1,080,192 | $48,966,844 | |
Class B(b) | — | — | 1,468 | 55,911 | |
Class C | 304,477 | 12,186,625 | 321,979 | 12,008,651 | |
Class Y | 345,911 | 17,105,926 | 322,754 | 14,664,978 | |
Investor Class | 352,388 | 17,112,863 | 586,193 | 26,339,535 | |
Class R5 | 1,638 | 92,014 | 27,714 | 1,348,572 | |
Class R6 | 7,888 | 384,606 | 644 | 34,337 | |
Issued as reinvestment of dividends: | |||||
Class A | 669,047 | 28,086,552 | 301,902 | 13,410,507 | |
Class B(b) | — | — | 2,680 | 101,364 | |
Class C | 115,840 | 3,849,363 | 45,149 | 1,633,499 | |
Class Y | 57,091 | 2,436,631 | 19,973 | 898,580 | |
Investor Class | 774,274 | 32,333,688 | 376,477 | 16,625,230 | |
Class R5 | 268 | 13,395 | 149 | 7,721 | |
Class R6 | 41 | 2,057 | 5 | 275 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 59,723 | 2,940,746 | |
Class B | — | — | (72,038) | (2,940,746) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 374,011 | 16,430,312 | - | - | |
Class C | (472,845) | (16,430,312) | - | - | |
Reacquired: | |||||
Class A | (1,324,107) | (62,896,413) | (1,212,452) | (54,727,824) | |
Class B(b) | — | — | (29,459) | (1,119,706) | |
Class C | (275,231) | (10,534,562) | (231,123) | (8,549,338) | |
Class Y | (331,510) | (15,071,297) | (196,048) | (9,038,208) | |
Investor Class | (1,079,268) | (50,765,506) | (1,104,288) | (49,510,770) | |
Class R5 | (436) | (26,403) | (27,762) | (1,368,826) | |
Class R6 | (544) | (29,349) | (104) | (5,735) | |
Net increase in share activity | 684,527 | $31,482,365 | 273,728 | $11,775,597 |
(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 Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
22 | Invesco Technology Fund |
23 | Invesco Technology Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,122.20 | $6.58 | $1,018.60 | $6.26 | 1.25% |
Class C | 1,000.00 | 1,118.10 | 10.50 | 1,014.88 | 9.99 | 2.00 |
Class Y | 1,000.00 | 1,123.70 | 5.27 | 1,019.84 | 5.01 | 1.00 |
Investor Class | 1,000.00 | 1,122.80 | 5.95 | 1,019.19 | 5.66 | 1.13 |
Class R5 | 1,000.00 | 1,124.60 | 4.32 | 1,020.73 | 4.11 | 0.82 |
Class R6 | 1,000.00 | 1,124.80 | 4.16 | 1,020.88 | 3.96 | 0.79 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
24 | Invesco Technology Fund |
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | $69,602,050 |
Qualified Dividend Income* | 0% |
Corporate Dividends Received Deduction* | 0% |
U.S. Treasury Obligations* | 0% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
25 | Invesco Technology Fund |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Technology Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Technology Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Technology Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Technology Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Technology Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | I-TEC-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Technology Sector Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Technology Sector Fund |
Class A Shares | 14.65% |
Class C Shares | 13.79 |
Class Y Shares | 14.91 |
NASDAQ Composite Index▼ (Broad Market/Style-Specific Index) | 15.82 |
Lipper Science & Technology Funds Index■ (Peer Group Index) | 17.83 |
Source(s):▼FactSet Research Systems Inc.;■ Lipper Inc. |
Portfolio Composition | |
By sector % of total net assets | |
Information Technology | 39.70% |
Communication Services | 28.89 |
Consumer Discretionary | 16.20 |
Health Care | 12.48 |
Industrials | 0.41 |
Money Market Funds Plus Other Assets Less Liabilities | 2.32 |
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | Amazon.com, Inc. | 9.75% |
2. | Facebook, Inc., Class A | 5.52 |
3. | Microsoft Corp. | 5.37 |
4. | Alphabet, Inc., Class A | 5.25 |
5. | Apple, Inc. | 4.93 |
6. | Alibaba Group Holding Ltd., ADR | 4.44 |
7. | Nintendo Co., Ltd. | 3.28 |
8. | Illumina, Inc. | 3.01 |
9. | PayPal Holdings, Inc. | 2.73 |
10. | salesforce.com, inc. | 2.57 |
Total Net Assets | $101.6 million |
Total Number of Holdings* | 45 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Technology Sector Fund |
5 | Invesco Technology Sector Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: Lipper Inc. |
6 | Invesco Technology Sector Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (7/28/97) | 6.11% |
10 Years | 12.89 |
5 Years | 12.99 |
1 Year | 8.34 |
Class C Shares | |
Inception (7/28/97) | 6.01% |
10 Years | 12.69 |
5 Years | 13.42 |
1 Year | 12.79 |
Class Y Shares | |
Inception (7/28/97) | 6.63% |
10 Years | 13.80 |
5 Years | 14.54 |
1 Year | 14.91 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (7/28/97) | 5.87% |
10 Years | 13.51 |
5 Years | 11.00 |
1 Year | 3.59 |
Class C Shares | |
Inception (7/28/97) | 5.77% |
10 Years | 13.31 |
5 Years | 11.41 |
1 Year | 7.72 |
Class Y Shares | |
Inception (7/28/97) | 6.39% |
10 Years | 14.42 |
5 Years | 12.53 |
1 Year | 9.84 |
7 | Invesco Technology Sector Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class Y shares are available only to certain investors. Please see the prospectus for more information. |
■ | Depositary receipts risk. Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund may therefore receive less timely information or have less control than if it invested directly in the foreign issuer. |
■ | Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional |
investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. | |
■ | Emerging markets securities risk.Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably. In addition, investments in emerging markets securities may also be subject to additional transaction costs, delays in settlement procedures, and lack of timely information. |
■ | Foreign securities risk.The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and |
the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. Currency hedging strategies, if used, are not always successful. | |
■ | Growth investing risk.Growth stocks tend to be more expensive relative to the issuing company’s earnings or assets compared with other types of stock. As a result, they tend to be more sensitive to changes in, or investors’ expectations of, the issuing company’s earnings and can be more volatile. |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When |
8 | Invesco Technology Sector Fund |
markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | Mid-capitalization companies risk. Mid-capitalization companies tend to be more vulnerable to changing market conditions and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | Technology sector risk. The Fund will concentrate its investments in the securities of issuers engaged primarily in the communications and information industry. Technology companies are subject to intense competition, rapid obsolescence of their products, issues with obtaining financing or regulatory approvals, product incompatibility, changing consumer preferences, high required corporate capital expenditure for research and development or infrastructure and development of new products, each of which make the prices of securities issued by these companies more volatile. |
■ | TheNASDAQ Composite Index is a broad-based market index of the common stocks and similar securities listed on the Nasdaq stock market. |
■ | TheLipper Science & Technology Funds Index is an unmanaged index considered representative of science and technology funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
■ | CPA® and Certified Public Accountant® are trademarks owned by the American Institute of Certified Public Accountants. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco Technology Sector Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–97.68% | |||
Alternative Carriers–2.04% | |||
Intelsat S.A.(b) | 102,288 | $2,070,309 | |
Application Software–5.20% | |||
Adobe, Inc.(b) | 7,672 | 2,219,126 | |
salesforce.com, inc.(b) | 15,785 | 2,610,050 | |
Splunk, Inc.(b) | 3,267 | 450,977 | |
5,280,153 | |||
Biotechnology–1.02% | |||
Alexion Pharmaceuticals, Inc.(b) | 7,587 | 1,032,818 | |
Consumer Electronics–1.53% | |||
Sony Corp. (Japan) | 30,600 | 1,550,059 | |
Data Processing & Outsourced Services–7.48% | |||
First Data Corp., Class A(b) | 17,227 | 445,490 | |
Mastercard, Inc., Class A | 7,100 | 1,805,104 | |
PayPal Holdings, Inc.(b) | 24,640 | 2,778,653 | |
Visa, Inc., Class A | 15,633 | 2,570,534 | |
7,599,781 | |||
Health Care Equipment–5.08% | |||
Abbott Laboratories | 17,397 | 1,384,105 | |
Boston Scientific Corp.(b) | 20,850 | 773,952 | |
Intuitive Surgical, Inc.(b) | 2,001 | 1,021,770 | |
Stryker Corp. | 2,726 | 514,969 | |
Teleflex, Inc. | 5,132 | 1,468,676 | |
5,163,472 | |||
Interactive Home Entertainment–11.30% | |||
Activision Blizzard, Inc. | 39,846 | 1,920,976 | |
Electronic Arts, Inc.(b) | 17,747 | 1,679,754 | |
Nintendo Co., Ltd. (Japan) | 9,700 | 3,326,291 | |
Sea Ltd. ADR (Thailand)(b) | 66,225 | 1,648,340 | |
Take-Two Interactive Software, Inc.(b) | 6,105 | 591,147 | |
Ubisoft Entertainment S.A. (France)(b) | 24,312 | 2,318,901 | |
11,485,409 | |||
Interactive Media & Services–13.61% | |||
Alphabet, Inc., Class A(b) | 4,447 | 5,331,775 | |
Alphabet, Inc. Class C(b) | 1,586 | 1,884,929 | |
Facebook, Inc., Class A(b) | 28,975 | 5,603,765 | |
Match Group, Inc. | 16,617 | 1,003,667 | |
13,824,136 | |||
Internet & Direct Marketing Retail–14.68% | |||
Alibaba Group Holding Ltd. ADR (China)(b) | 24,285 | 4,506,568 | |
Amazon.com, Inc.(b) | 5,140 | 9,902,313 | |
Booking Holdings, Inc.(b) | 271 | 502,702 | |
14,911,583 |
Shares | Value | ||
Life Sciences Tools & Services–5.87% | |||
Illumina, Inc.(b) | 9,817 | $3,062,904 | |
IQVIA Holdings, Inc.(b) | 11,749 | 1,631,936 | |
Thermo Fisher Scientific, Inc. | 4,591 | 1,273,773 | |
5,968,613 | |||
Managed Health Care–0.50% | |||
UnitedHealth Group, Inc. | 2,197 | 512,055 | |
Movies & Entertainment–1.95% | |||
Netflix, Inc.(b) | 5,336 | 1,977,202 | |
Semiconductor Equipment–4.65% | |||
Applied Materials, Inc. | 55,743 | 2,456,594 | |
ASML Holding N.V. New York Shares (Netherlands) | 10,873 | 2,270,500 | |
4,727,094 | |||
Semiconductors–8.52% | |||
Broadcom, Inc. | 7,074 | 2,252,362 | |
NVIDIA Corp. | 6,332 | 1,146,092 | |
QUALCOMM, Inc. | 23,151 | 1,993,996 | |
Semtech Corp.(b) | 21,974 | 1,183,739 | |
Silicon Motion Technology Corp. ADR (Taiwan) | 54,444 | 2,081,938 | |
8,658,127 | |||
Systems Software–8.91% | |||
Microsoft Corp. | 41,780 | 5,456,468 | |
Palo Alto Networks, Inc.(b) | 6,758 | 1,681,593 | |
ServiceNow, Inc.(b) | 7,073 | 1,920,390 | |
9,058,451 | |||
Technology Hardware, Storage & Peripherals–4.93% | |||
Apple, Inc. | 24,972 | 5,011,131 | |
Trucking–0.41% | |||
Lyft, Inc., Class A(b)(c) | 6,963 | 416,387 | |
Total Common Stocks & Other Equity Interests (Cost $56,165,871) | 99,246,780 | ||
Money Market Funds–0.52% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d) | 186,334 | 186,334 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d) | 132,976 | 133,016 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(d) | 212,952 | 212,952 | |
Total Money Market Funds (Cost $532,302) | 532,302 | ||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-98.20% (Cost $56,698,173) | 99,779,082 |
10 | Invesco Technology Sector Fund |
Shares | Value | ||
Investments Purchased with Cash Collateral from Securities on Loan | |||
Money Market Funds–0.38% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d)(e) | 290,664 | $290,664 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d)(e) | 96,859 | 96,888 | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $387,552) | 387,552 | ||
TOTAL INVESTMENTS IN SECURITIES–98.58% (Cost $57,085,725) | 100,166,634 | ||
OTHER ASSETS LESS LIABILITIES–1.42% | 1,439,169 | ||
NET ASSETS–100.00% | $101,605,803 |
ADR | – American Depositary Receipt |
(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 April 30, 2019. |
(d) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
(e) | 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. |
11 | Invesco Technology Sector Fund |
Assets: | |
Investments in securities, at value (Cost $56,165,871)1 | $99,246,780 |
Investments in affiliated money market funds, at value (Cost $919,854) | 919,854 |
Foreign currencies, at value (Cost $152) | 152 |
Receivable for: | |
Investments sold | 2,389,119 |
Fund shares sold | 26,981 |
Dividends | 106,471 |
Investment for trustee deferred compensation and retirement plans | 35,975 |
Other assets | 12,327 |
Total assets | 102,737,659 |
Liabilities: | |
Payable for: | |
Investments purchased | 443,725 |
Fund shares reacquired | 87,649 |
Amount due custodian | 54,766 |
Collateral upon return of securities loaned | 387,552 |
Accrued fees to affiliates | 52,342 |
Accrued trustees’ and officers’ fees and benefits | 1,633 |
Accrued other operating expenses | 65,522 |
Trustee deferred compensation and retirement plans | 38,667 |
Total liabilities | 1,131,856 |
Net assets applicable to shares outstanding | $101,605,803 |
Net assets consist of: | |
Shares of beneficial interest | $53,372,855 |
Distributable earnings | 48,232,948 |
$101,605,803 | |
Net Assets: | |
Class A | $95,986,273 |
Class C | $1,309,205 |
Class Y | $4,310,325 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 3,859,761 |
Class C | 64,057 |
Class Y | 163,241 |
Class A: | |
Net asset value per share | $24.87 |
Maximum offering price per share (Net asset value of $24.87 ÷ 94.50%) | $26.32 |
Class C: | |
Net asset value and offering price per share | $20.44 |
Class Y: | |
Net asset value and offering price per share | $26.40 |
1 | At April 30, 2019, securities with an aggregate value of $379,657 were on loan to brokers. |
12 | Invesco Technology Sector Fund |
Investment income: | |
Dividends (net of foreign withholding taxes of $13,473) | $478,405 |
Dividends from affiliated money market funds (includes securities lending income of $438) | 28,142 |
Interest | 1,323 |
Total investment income | 507,870 |
Expenses: | |
Advisory fees | 661,701 |
Administrative services fees | 37,982 |
Custodian fees | 8,128 |
Distribution fees: | |
Class A | 217,008 |
Class C | 64,400 |
Transfer agent fees— A, C and Y | 145,094 |
Trustees’ and officers’ fees and benefits | 22,267 |
Registration and filing fees | 47,421 |
Reports to shareholders | 38,162 |
Professional services fees | 51,270 |
Other | 10,016 |
Total expenses | 1,303,449 |
Less: Fees waived and expense offset arrangement(s) | (2,156) |
Net expenses | 1,301,293 |
Net investment income (loss) | (793,423) |
Realized and unrealized gain from: | |
Net realized gain from: | |
Investment securities | 9,342,550 |
Foreign currencies | 329 |
9,342,879 | |
Change in net unrealized appreciation of: | |
Investment securities | 4,827,241 |
Foreign currencies | 3,543 |
4,830,784 | |
Net realized and unrealized gain | 14,173,663 |
Net increase in net assets resulting from operations | $13,380,240 |
13 | Invesco Technology Sector Fund |
2019 | 2018 | |
Operations: | ||
Net investment income (loss) | $(793,423) | $(719,701) |
Net realized gain | 9,342,879 | 6,381,987 |
Change in net unrealized appreciation | 4,830,784 | 13,879,162 |
Net increase in net assets resulting from operations | 13,380,240 | 19,541,448 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (6,004,053) | (1,875,164) |
Class B | — | (4,057) |
Class C | (675,683) | (209,764) |
Class Y | (300,931) | (72,200) |
Total distributions to shareholders from distributable earnings | (6,980,667) | (2,161,185) |
Share transactions–net: | ||
Class A | 3,403,836 | (7,493,232) |
Class B | — | (389,282) |
Class C | (6,301,314) | (939,539) |
Class Y | 388,433 | 836,007 |
Net increase (decrease) in net assets resulting from share transactions | (2,509,045) | (7,986,046) |
Net increase in net assets | 3,890,528 | 9,394,217 |
Net assets: | ||
Beginning of year | 97,715,275 | 88,321,058 |
End of year | $101,605,803 | $97,715,275 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net realized gains. |
14 | Invesco Technology Sector Fund |
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Distributions from net realized gains | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||
Year ended 04/30/19 | $23.49 | $(0.18) | $3.30 | $3.12 | $(1.74) | $24.87 | 14.65% | $95,986 | 1.28%(d) | 1.28%(d) | (0.77)%(d) | 44% |
Year ended 04/30/18 | 19.53 | (0.15) | 4.61 | 4.46 | (0.50) | 23.49 | 22.99 | 85,929 | 1.33 | 1.33 | (0.69) | 46 |
Year ended 04/30/17 | 15.58 | (0.16) | 4.54 | 4.38 | (0.43) | 19.53 | 28.52 | 78,058 | 1.67 | 1.67 | (0.90) | 49 |
Year ended 04/30/16 | 16.73 | (0.15) | (1.00) | (1.15) | — | 15.58 | (6.87) | 70,256 | 1.58 | 1.58 | (0.89) | 44 |
Year ended 04/30/15 | 14.49 | (0.17) | 2.41 | 2.24 | — | 16.73 | 15.46 | 86,451 | 1.58 | 1.58 | (1.07) | 66 |
Class C | ||||||||||||
Year ended 04/30/19 | 19.77 | (0.31) | 2.72 | 2.41 | (1.74) | 20.44 | 13.79 | 1,309 | 2.03(d) | 2.03(d) | (1.52)(d) | 44 |
Year ended 04/30/18 | 16.64 | (0.27) | 3.90 | 3.63 | (0.50) | 19.77 | 21.98(e) | 8,087 | 2.07(e) | 2.07(e) | (1.43)(e) | 46 |
Year ended 04/30/17 | 13.42 | (0.24) | 3.89 | 3.65 | (0.43) | 16.64 | 27.66(e) | 7,635 | 2.39(e) | 2.39(e) | (1.62)(e) | 49 |
Year ended 04/30/16 | 14.52 | (0.24) | (0.86) | (1.10) | — | 13.42 | (7.58) | 6,759 | 2.33 | 2.33 | (1.64) | 44 |
Year ended 04/30/15 | 12.67 | (0.25) | 2.10 | 1.85 | — | 14.52 | 14.60(e) | 8,087 | 2.32(e) | 2.32(e) | (1.81)(e) | 66 |
Class Y | ||||||||||||
Year ended 04/30/19 | 24.77 | (0.13) | 3.50 | 3.37 | (1.74) | 26.40 | 14.91 | 4,310 | 1.03(d) | 1.03(d) | (0.52)(d) | 44 |
Year ended 04/30/18 | 20.53 | (0.10) | 4.84 | 4.74 | (0.50) | 24.77 | 23.23 | 3,699 | 1.08 | 1.08 | (0.44) | 46 |
Year ended 04/30/17 | 16.32 | (0.12) | 4.76 | 4.64 | (0.43) | 20.53 | 28.82 | 2,291 | 1.42 | 1.42 | (0.65) | 49 |
Year ended 04/30/16 | 17.49 | (0.11) | (1.06) | (1.17) | — | 16.32 | (6.69) | 1,299 | 1.33 | 1.33 | (0.64) | 44 |
Year ended 04/30/15 | 15.10 | (0.14) | 2.53 | 2.39 | — | 17.49 | 15.83 | 909 | 1.33 | 1.33 | (0.82) | 66 |
(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 omitted) of $88,263, $6,446 and$4,052 for Class A, Class C and Class Y shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.99%, 0.97% and 0.99% for the years ended April 30, 2018, 2017 and 2015, respectively. |
15 | Invesco Technology Sector Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
16 | Invesco Technology Sector Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending– The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the |
17 | Invesco Technology Sector Fund |
lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included inDividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
L. | Other Risks - The Fund’s investments are concentrated in a comparatively narrow segment of the economy, which may make the Fund more volatile. |
Average Daily Net Assets | Rate |
First $500 million | 0.67% |
Next $2.5 billion | 0.645% |
Over $3 billion | 0.62% |
18 | Invesco Technology Sector Fund |
Level 1 | Level 2 | Level 3 | Total | |
Investments in Securities | ||||
Common Stocks & Other Equity Interests | $94,370,430 | $4,876,350 | $— | $99,246,780 |
Money Market Funds | 919,854 | — | — | 919,854 |
Total Investments | $95,290,284 | $4,876,350 | $— | $100,166,634 |
19 | Invesco Technology Sector Fund |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $20,985 | $160,599 |
Long-term capital gain | 6,959,682 | 2,000,586 |
Total distributions | $6,980,667 | $2,161,185 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Undistributed long-term capital gain | $6,367,439 |
Net unrealized appreciation — investments | 42,739,763 |
Net unrealized appreciation — foreign currencies | 2,136 |
Temporary book/tax differences | (31,908) |
Late-Year ordinary loss deferral | (213,209) |
Post-October capital loss deferral | (631,273) |
Shares of beneficial interest | 53,372,855 |
Total net assets | $101,605,803 |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $43,041,640 |
Aggregate unrealized (depreciation) of investments | (301,877) |
Net unrealized appreciation of investments | $42,739,763 |
20 | Invesco Technology Sector Fund |
21 | Invesco Technology Sector Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 181,758 | $4,345,007 | 79,249 | $1,748,165 | |
Class C | 14,852 | 291,493 | 5,744 | 106,300 | |
Class Y | 61,164 | 1,592,764 | 79,087 | 1,827,377 | |
Issued as reinvestment of dividends: | |||||
Class A | 251,334 | 5,288,077 | 76,522 | 1,698,024 | |
Class B(b) | — | — | 199 | 3,721 | |
Class C | 35,448 | 615,010 | 10,042 | 188,082 | |
Class Y | 10,134 | 226,194 | 2,385 | 55,788 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 6,984 | 171,744 | |
Class B | — | — | (8,371) | (171,744) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 286,777 | 6,295,142 | - | - | |
Class C | (348,198) | (6,295,142) | - | - | |
Reacquired: | |||||
Class A | (518,544) | (12,524,390) | (500,170) | (11,111,165) | |
Class B(b) | — | — | (12,065) | (221,259) | |
Class C | (47,017) | (912,675) | (65,744) | (1,233,921) | |
Class Y | (57,370) | (1,430,525) | (43,740) | (1,047,158) | |
Net increase (decrease) in share activity | (129,662) | $(2,509,045) | (369,878) | $(7,986,046) |
(a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 69% 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 Fund has no knowledge as to whether all or any portion of the shares owned of record by this entity are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
22 | Invesco Technology Sector Fund |
23 | Invesco Technology Sector Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,120.80 | $6.68 | $1,018.50 | $6.36 | 1.27% |
Class C | 1,000.00 | 1,116.40 | 10.76 | 1,014.63 | 10.24 | 2.05 |
Class Y | 1,000.00 | 1,121.90 | 5.42 | 1,019.69 | 5.16 | 1.03 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
24 | Invesco Technology Sector Fund |
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | $6,959,682 |
Qualified Dividend Income* | 100.00% |
Corporate Dividends Received Deduction* | 100.00% |
U.S. Treasury Obligations* | 0.00% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
25 | Invesco Technology Sector Fund |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Technology Sector Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Technology Sector Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Technology Sector Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Technology Sector Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Technology Sector Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | MS-TECH-AR-1 |
Annual Report to Shareholders | April 30, 2019 |
Andrew Schlossberg |
2 | Invesco Value Opportunities Fund |
Bruce Crockett |
■ | Ensuring that Invesco offers a diverse lineup of mutual funds that your financial adviser can use to strive to meet your financial needs as your investment goals change over time. |
■ | Monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions. |
■ | Assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus. |
■ | Monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. |
3 | Invesco Value Opportunities Fund |
Class A Shares | 3.58% |
Class C Shares | 2.83 |
Class R Shares | 3.32 |
Class Y Shares | 3.80 |
Class R5 Shares | 3.94 |
Class R6 Shares | 4.00 |
S&P 500 Index▼ (Broad Market Index) | 13.49 |
S&P 1500 Value Index▼ (Style-Specific Index) | 9.34 |
Lipper Multi-Cap Value Funds Index■ (Peer Group Index) | 4.50 |
Source(s):▼FactSet Research Systems Inc.;■ Lipper Inc. |
Portfolio Composition | |
By sector | % of total net assets |
Financials | 23.36% |
Industrials | 21.02 |
Materials | 13.21 |
Health Care | 10.27 |
Consumer Discretionary | 9.81 |
Energy | 9.60 |
Information Technology | 6.87 |
Other Sectors, Each Less than 2% of Net Assets | 2.01 |
Money Market Funds Plus Other Assets Less Liabilities | 3.85 |
Top 10 Equity Holdings* | ||
% of total net assets | ||
1. | Crown Holdings, Inc. | 4.03% |
2. | AECOM | 3.88 |
3. | MGIC Investment Corp. | 3.71 |
4. | Owens Corning | 3.63 |
5. | Sealed Air Corp. | 3.54 |
6. | Delphi Technologies PLC | 3.47 |
7. | Carlisle Cos., Inc. | 3.45 |
8. | Citigroup, Inc. | 3.37 |
9. | LKQ Corp. | 3.20 |
10. | LPL Financial Holdings, Inc. | 3.10 |
Total Net Assets | $759.0 million |
Total Number of Holdings* | 47 |
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. |
Data presented here are as of April 30, 2019. |
4 | Invesco Value Opportunities Fund |
5 | Invesco Value Opportunities Fund |
1 | Source: FactSet Research Systems Inc. |
2 | Source: Lipper Inc. |
6 | Invesco Value Opportunities Fund |
Average Annual Total Returns | |
As of 4/30/19, including maximum applicable sales charges | |
Class A Shares | |
Inception (6/25/01) | 5.19% |
10 Years | 10.78 |
5 Years | 4.21 |
1 Year | –2.13 |
Class C Shares | |
Inception (6/25/01) | 5.10% |
10 Years | 10.61 |
5 Years | 4.65 |
1 Year | 1.95 |
Class R Shares | |
10 Years | 11.14% |
5 Years | 5.14 |
1 Year | 3.32 |
Class Y Shares | |
Inception (3/23/05) | 5.60% |
10 Years | 11.68 |
5 Years | 5.66 |
1 Year | 3.80 |
Class R5 Shares | |
10 Years | 11.81% |
5 Years | 5.82 |
1 Year | 3.94 |
Class R6 Shares | |
10 Years | 11.51% |
5 Years | 5.58 |
1 Year | 4.00 |
Average Annual Total Returns | |
As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges | |
Class A Shares | |
Inception (6/25/01) | 4.90% |
10 Years | 11.43 |
5 Years | 3.15 |
1 Year | –7.74 |
Class C Shares | |
Inception (6/25/01) | 4.80% |
10 Years | 11.28 |
5 Years | 3.59 |
1 Year | –3.96 |
Class R Shares | |
10 Years | 11.79% |
5 Years | 4.07 |
1 Year | –2.62 |
Class Y Shares | |
Inception (3/23/05) | 5.22% |
10 Years | 12.34 |
5 Years | 4.59 |
1 Year | –2.17 |
Class R5 Shares | |
10 Years | 12.46% |
5 Years | 4.74 |
1 Year | –2.01 |
Class R6 Shares | |
10 Years | 12.16% |
5 Years | 4.51 |
1 Year | –2.01 |
7 | Invesco Value Opportunities Fund |
■ | Unless otherwise stated, information presented in this report is as of April 30, 2019, and is based on total net assets. |
■ | Unless otherwise noted, all data provided by Invesco. |
■ | To access your Fund’s reports/prospectus, visit invesco.com/fundreports. |
■ | Class R sharesare generally available only to employer sponsored retirement and benefit plans. Please see the prospectus for more information. |
■ | Class Y sharesare available only to certain investors. Please see the prospectus for more information. |
■ | Class R5 shares andClass R6 shares are available for use by retirement plans that meet certain standards and for institutional investors. Class R6 shares are also available through intermediaries that have established an agreement with Invesco Distributors, Inc. to make such shares available for use in retail omnibus accounts. Please see the prospectus for more information. |
■ | Convertible securities risk. The market values of convertible securities are affected by market interest rates, the risk of actual issuer default on interest or principal payments and the value of the underlying common stock into which the convertible security may be converted. Additionally, a convertible security is subject to the same types of market and issuer risks as apply to the underlying common stock. In addition, certain convertible securities are subject to involuntary conversions and may undergo principal write-downs upon the occurrence of certain triggering events, and, as a result, are subject to an increased risk of loss. Convertible securities may be rated below investment grade. |
■ | Depositary receipts risk. Investing in depositary receipts involves the same risks as direct investments in foreign securities. In addition, the underlying issuers of certain depositary receipts are under no obligation to distribute shareholder communications or pass through any voting rights with respect to the deposited securities to the holders of such receipts. The Fund |
may therefore receive less timely information or have less control than if it invested directly in the foreign issuer. | |
■ | Derivatives risk. The value of a derivative instrument depends largely on (and is derived from) the value of an underlying security, currency, commodity, interest rate, index or other asset (each referred to as an underlying asset). In addition to risks relating to the underlying assets, the use of derivatives may include other, possibly greater, risks, including counterparty, leverage and liquidity risks. Counterparty risk is the risk that the counterparty to the derivative contract will default on its obligation to pay the Fund the amount owed or otherwise perform under the derivative contract. Derivatives create leverage risk because they do not require payment up front equal to the economic exposure created by holding a position in the derivative. As a result, an adverse change in the value of the underlying asset could result in the Fund sustaining a loss that is substantially greater than the amount invested in the derivative or the anticipated value of the underlying asset, which may make the Fund’s returns more volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Fund may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Fund may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Fund’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market |
segment may not provide the expected benefits, particularly during adverse market conditions. | |
■ | Emerging markets securities risk. Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably. In addition, investments in emerging markets securities may also be subject to additional transaction costs, delays in settlement procedures, and lack of timely information. |
■ | Foreign securities risk. The Fund’s foreign investments may be adversely affected by political and social instability, changes in economic or taxation policies, difficulty in enforcing obligations, decreased liquidity or increased volatility. Foreign investments also involve the risk of the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its entire investments in a certain market) and the possible adoption of foreign governmental restrictions such as exchange controls. Unless the Fund has hedged its foreign securities risk, foreign securities risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over |
8 | Invesco Value Opportunities Fund |
short periods of time. Currency hedging strategies, if used, are not always successful. |
■ | Initial public offerings (IPO) risk. The prices of IPO securities often fluctuate more than prices of securities of companies with longer trading histories and sometimes experience significant price drops shortly after their initial issuance. In addition, companies offering securities in IPOs may have less experienced management or limited operating histories. |
■ | Management risk. The Fund is actively managed and depends heavily on the Adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the Fund’s portfolio. The Fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the Fund and, therefore, the ability of the Fund to achieve its investment objective. |
■ | Market risk. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Market risk may affect a single issuer, industry or section of the economy, or it may affect the market as a whole. Individual stock prices tend to go up and down more dramatically than those of certain other types of investments, such as bonds. During a general downturn in the financial markets, multiple asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Fund will rise in value. |
■ | Preferred securities risk. Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. Preferred securities also may be subordinated to bonds or other debt instruments, subjecting them to a greater risk of non-payment, may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer. |
■ | REIT risk/real estate risk. Investments in real estate related instruments may be affected by economic, legal, cultural, environmental or technological factors that affect property values, rents or occupancies of real estate related to the Fund’s holdings. Shares of real estate related companies, |
which tend to be small- and mid-cap companies, may be more volatile and less liquid. |
■ | Sector focus risk. The Fund may from time to time invest a significant amount of its assets (i.e. over 25%) in one market sector or group of related industries. In this event, the Fund’s performance will depend to a greater extent on the overall condition of the sector or group of industries and there is increased risk that the Fund will lose significant value if conditions adversely affect that sector or group of industries. |
■ | Small- and mid-capitalization companies risks. Small- and mid-capitalization companies tend to be more vulnerable to changing market conditions, may have little or no operating history or track record of success, and may have more limited product lines and markets, less experienced management and fewer financial resources than larger companies. These companies’ securities may be more volatile and less liquid than those of more established companies, and their returns may vary, sometimes significantly, from the overall securities market. |
■ | Unseasoned issuer risk. Investments in unseasoned companies or companies with special circumstances often involve much greater risks than are inherent in other types of investments and securities of such companies may be more likely to experience fluctuations in price. In addition, investments made in anticipation of future events may, if the events are delayed or never achieved, cause stock prices to fall. |
■ | Value investing style risk. A value investing style subjects the Fund to the risk that the valuations never improve or that the returns on value equity securities are less than returns on other styles of investing or the overall stock market. |
■ | TheS&P 500® Index is an unmanaged index considered representative of the US stock market. |
■ | TheS&P 1500® Value Index tracks the performance of US large-, mid- and small-cap value stocks. |
■ | TheLipper Multi-Cap Value Funds Index is an unmanaged index considered representative of multicap value funds tracked by Lipper. |
■ | The Fund is not managed to track the performance of any particular index, |
including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). |
■ | A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not. |
■ | CPA®and Certified Public Accountant® are trademarks owned by the American Institute of Certified Public Accountants. |
■ | The returns shown in management’s discussion of Fund performance are based on net asset values (NAVs) 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 NAVs for shareholder transactions and the returns based on those NAVs may differ from the NAVs and returns reported in the Financial Highlights. |
■ | 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. |
9 | Invesco Value Opportunities Fund |
Shares | Value | ||
Common Stocks & Other Equity Interests–96.15% | |||
Advertising–0.18% | |||
Interpublic Group of Cos., Inc. (The) | 31,000 | $713,000 | |
Omnicom Group, Inc. | 8,655 | 692,660 | |
1,405,660 | |||
Agricultural & Farm Machinery–2.02% | |||
AGCO Corp. | 216,904 | 15,352,465 | |
Asset Management & Custody Banks–2.37% | |||
Affiliated Managers Group, Inc. | 162,100 | 17,980,132 | |
Auto Parts & Equipment–6.09% | |||
Dana, Inc. | 1,017,368 | 19,838,676 | |
Delphi Technologies PLC(b) | 1,190,635 | 26,348,753 | |
46,187,429 | |||
Building Products–6.68% | |||
Masco Corp. | 591,536 | 23,105,396 | |
Owens Corning | 537,900 | 27,578,133 | |
50,683,529 | |||
Construction & Engineering–5.89% | |||
AECOM(b) | 867,890 | 29,421,471 | |
Fluor Corp. | 383,800 | 15,248,374 | |
44,669,845 | |||
Consumer Finance–1.53% | |||
SLM Corp. | 1,139,800 | 11,580,368 | |
Distributors–3.20% | |||
LKQ Corp.(b) | 808,000 | 24,320,800 | |
Diversified Banks–6.40% | |||
Bank of America Corp. | 690,294 | 21,109,190 | |
Citigroup, Inc. | 361,721 | 25,573,675 | |
JPMorgan Chase & Co. | 16,105 | 1,868,985 | |
48,551,850 | |||
Diversified Chemicals–3.58% | |||
Chemours Co. (The) | 345,900 | 12,455,859 | |
Huntsman Corp. | 661,500 | 14,711,760 | |
27,167,619 | |||
Electronic Components–1.34% | |||
Belden, Inc. | 182,492 | 10,137,431 | |
Electronic Manufacturing Services–2.54% | |||
Flex Ltd.(b) | 1,745,180 | 19,266,787 | |
Environmental & Facilities Services–2.98% | |||
Stericycle, Inc.(b) | 386,768 | 22,583,384 | |
Health Care Distributors–3.07% | |||
Cardinal Health, Inc. | 205,200 | 9,995,292 |
Shares | Value | ||
Health Care Distributors–(continued) | |||
McKesson Corp. | 111,700 | $13,320,225 | |
23,315,517 | |||
Health Care Facilities–1.56% | |||
Brookdale Senior Living, Inc.(b) | 1,918,485 | 11,856,237 | |
Health Care Services–1.19% | |||
Cigna Corp. | 56,800 | 9,022,112 | |
Homebuilding–0.18% | |||
D.R. Horton, Inc. | 31,600 | 1,400,196 | |
Hotels, Resorts & Cruise Lines–0.33% | |||
Norwegian Cruise Line Holdings Ltd.(b) | 44,500 | 2,509,355 | |
Household Products–1.83% | |||
Spectrum Brands Holdings, Inc. | 225,195 | 13,865,256 | |
Industrial Conglomerates–3.45% | |||
Carlisle Cos., Inc. | 185,400 | 26,219,268 | |
Investment Banking & Brokerage–5.23% | |||
Goldman Sachs Group, Inc. (The) | 75,400 | 15,526,368 | |
LPL Financial Holdings, Inc. | 317,366 | 23,513,647 | |
TD Ameritrade Holding Corp. | 12,900 | 678,282 | |
39,718,297 | |||
Life & Health Insurance–0.05% | |||
MetLife, Inc. | 8,000 | 369,040 | |
Managed Health Care–1.09% | |||
Anthem, Inc. | 31,500 | 8,285,445 | |
Metal & Glass Containers–4.03% | |||
Crown Holdings, Inc.(b) | 526,300 | 30,593,819 | |
Oil & Gas Exploration & Production–9.60% | |||
Apache Corp. | 220,200 | 7,246,782 | |
Diamondback Energy, Inc. | 142,700 | 15,181,853 | |
Noble Energy, Inc. | 661,600 | 17,902,896 | |
Parsley Energy, Inc., Class A(b) | 778,800 | 15,544,848 | |
Pioneer Natural Resources Co. | 102,100 | 16,995,566 | |
72,871,945 | |||
Other Diversified Financial Services–1.85% | |||
AXA Equitable Holdings, Inc. | 620,200 | 14,072,338 | |
Paper Packaging–3.54% | |||
Sealed Air Corp. | 576,700 | 26,885,754 | |
Pharmaceuticals–3.36% | |||
Mylan N.V.(b) | 724,000 | 19,540,760 | |
Novartis AG (Switzerland) | 72,900 | 5,953,196 | |
25,493,956 |
10 | Invesco Value Opportunities Fund |
Shares | Value | ||
Steel–2.05% | |||
Allegheny Technologies, Inc.(b) | 625,221 | $15,580,507 | |
Systems Software–3.00% | |||
Oracle Corp. | 411,200 | 22,751,696 | |
Thrifts & Mortgage Finance–5.94% | |||
MGIC Investment Corp.(b) | 1,921,316 | 28,128,066 | |
Radian Group, Inc. | 722,449 | 16,919,756 | |
45,047,822 | |||
Total Common Stocks & Other Equity Interests (Cost $678,614,979) | 729,745,859 |
Shares | Value | ||
Money Market Funds–3.87% | |||
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(c) | 10,283,176 | $10,283,176 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(c) | 7,343,016 | 7,345,219 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(c) | 11,752,201 | 11,752,201 | |
Total Money Market Funds (Cost $29,379,421) | 29,380,596 | ||
TOTAL INVESTMENTS IN SECURITIES–100.02% (Cost $707,994,400) | 759,126,455 | ||
OTHER ASSETS LESS LIABILITIES–(0.02)% | (168,487) | ||
NET ASSETS–100.00% | $758,957,968 |
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
11 | Invesco Value Opportunities Fund |
Assets: | |
Investments in securities, at value (Cost $678,614,979) | $729,745,859 |
Investments in affiliated money market funds, at value (Cost $29,379,421) | 29,380,596 |
Foreign currencies, at value (Cost $648) | 675 |
Receivable for: | |
Investments sold | 2,369,563 |
Fund shares sold | 222,665 |
Dividends | 470,104 |
Investment for trustee deferred compensation and retirement plans | 496,759 |
Other assets | 58,294 |
Total assets | 762,744,515 |
Liabilities: | |
Payable for: | |
Investments purchased | 1,737,382 |
Fund shares reacquired | 510,812 |
Amount due custodian | 416,815 |
Accrued fees to affiliates | 435,934 |
Accrued trustees’ and officers’ fees and benefits | 2,240 |
Accrued other operating expenses | 143,297 |
Trustee deferred compensation and retirement plans | 540,067 |
Total liabilities | 3,786,547 |
Net assets applicable to shares outstanding | $758,957,968 |
Net assets consist of: | |
Shares of beneficial interest | $698,810,150 |
Distributable earnings | 60,147,818 |
$758,957,968 | |
Net Assets: | |
Class A | $658,684,998 |
Class C | $17,027,251 |
Class R | $10,898,476 |
Class Y | $37,468,827 |
Class R5 | $2,212,177 |
Class R6 | $32,666,239 |
Shares outstanding, no par value, with an unlimited number of shares authorized: | |
Class A | 51,304,387 |
Class C | 1,416,038 |
Class R | 858,946 |
Class Y | 2,912,746 |
Class R5 | 170,829 |
Class R6 | 2,518,360 |
Class A: | |
Net asset value per share | $12.84 |
Maximum offering price per share (Net asset value of $12.84 ÷ 94.50%) | $13.59 |
Class C: | |
Net asset value and offering price per share | $12.02 |
Class R: | |
Net asset value and offering price per share | $12.69 |
Class Y: | |
Net asset value and offering price per share | $12.86 |
Class R5: | |
Net asset value and offering price per share | $12.95 |
Class R6: | |
Net asset value and offering price per share | $12.97 |
12 | Invesco Value Opportunities Fund |
Investment income: | |
Dividends (net of foreign withholding taxes of $31,174) | $8,937,596 |
Dividends from affiliated money market funds | 423,005 |
Total investment income | 9,360,601 |
Expenses: | |
Advisory fees | 5,106,244 |
Administrative services fees | 171,085 |
Custodian fees | 18,276 |
Distribution fees: | |
Class A | 1,573,144 |
Class C | 489,134 |
Class R | 60,410 |
Transfer agent fees— A, C, R and Y | 1,597,169 |
Transfer agent fees — R5 | 2,394 |
Transfer agent fees — R6 | 13,511 |
Trustees’ and officers’ fees and benefits | 32,190 |
Registration and filing fees | 101,959 |
Reports to shareholders | 144,199 |
Professional services fees | 71,022 |
Other | 29,685 |
Total expenses | 9,410,422 |
Less: Fees waived and expense offset arrangement(s) | (39,831) |
Net expenses | 9,370,591 |
Net investment income (loss) | (9,990) |
Realized and unrealized gain (loss) from: | |
Net realized gain from: | |
Investment securities | 53,173,491 |
Foreign currencies | 2,279 |
53,175,770 | |
Change in net unrealized appreciation (depreciation) of: | |
Investment securities | (28,825,734) |
Foreign currencies | (7,744) |
(28,833,478) | |
Net realized and unrealized gain | 24,342,292 |
Net increase in net assets resulting from operations | $24,332,302 |
13 | Invesco Value Opportunities Fund |
2019 | 2018 | |
Operations: | ||
Net investment income (loss) | $(9,990) | $(58,546) |
Net realized gain | 53,175,770 | 49,316,909 |
Change in net unrealized appreciation (depreciation) | (28,833,478) | 35,048,084 |
Net increase in net assets resulting from operations | 24,332,302 | 84,306,447 |
Distributions to shareholders from distributable earnings(1): | ||
Class A | (68,727,018) | (33,994,064) |
Class B | — | (286,229) |
Class C | (7,256,248) | (3,782,570) |
Class R | (1,393,943) | (725,454) |
Class Y | (4,210,458) | (3,129,069) |
Class R5 | (267,250) | (128,051) |
Class R6 | (3,356,878) | (7,273) |
Total distributions to shareholders from distributable earnings | (85,211,795) | (42,052,710) |
Share transactions–net: | ||
Class A | 41,564,681 | (17,733,820) |
Class B | — | (9,801,875) |
Class C | (41,578,892) | (17,454,601) |
Class R | (905,036) | (1,996,871) |
Class Y | 1,018,691 | (12,094,925) |
Class R5 | (43,992) | (159,671) |
Class R6 | 6,374,257 | 31,168,802 |
Net increase (decrease) in net assets resulting from share transactions | 6,429,709 | (28,072,961) |
Net increase (decrease) in net assets | (54,449,784) | 14,180,776 |
Net assets: | ||
Beginning of year | 813,407,752 | 799,226,976 |
End of year | $758,957,968 | $813,407,752 |
(1) | The Securities and Exchange Commission eliminated the requirement to disclose the distribution components separately, except for tax return of capital. For the year ended April 30, 2018, distributions to shareholders from distributable earnings consisted of distributions from net realized gains. |
14 | Invesco Value Opportunities Fund |
Net asset value, beginning of period | Net investment income (loss)(a) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset value, end of period | Total return(b) | Net assets, end of period (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed | Ratio of net investment income (loss) to average net assets | Portfolio turnover(c) | |
Class A | ||||||||||||||
Year ended 04/30/19 | $14.24 | $0.00 | $0.18 | $0.18 | $— | $(1.58) | $(1.58) | $12.84 | 3.58% | $658,685 | 1.21%(d) | 1.21%(d) | 0.02%(d) | 51% |
Year ended 04/30/18 | 13.50 | 0.01 | 1.48 | 1.49 | — | (0.75) | (0.75) | 14.24 | 10.87 | 662,211 | 1.21 | 1.21 | 0.04 | 30 |
Year ended 04/30/17 | 11.60 | 0.01 | 2.05 | 2.06 | (0.02) | (0.14) | (0.16) | 13.50 | 17.81 | 645,216 | 1.26 | 1.27 | 0.07 | 33 |
Year ended 04/30/16 | 14.45 | 0.02 | (1.08) | (1.06) | (0.13) | (1.66) | (1.79) | 11.60 | (6.93) | 622,026 | 1.25 | 1.25 | 0.17 | 38 |
Year ended 04/30/15 | 14.24 | 0.13 | 0.33 | 0.46 | (0.25) | — | (0.25) | 14.45 | 3.29 | 754,084 | 1.22 | 1.23 | 0.88 | 64 |
Class C | ||||||||||||||
Year ended 04/30/19 | 13.54 | (0.09) | 0.15 | 0.06 | — | (1.58) | (1.58) | 12.02 | 2.83(e) | 17,027 | 1.92(d)(e) | 1.92(d)(e) | (0.69)(d)(e) | 51 |
Year ended 04/30/18 | 12.96 | (0.09) | 1.42 | 1.33 | — | (0.75) | (0.75) | 13.54 | 10.07(e) | 68,174 | 1.91(e) | 1.91(e) | (0.66)(e) | 30 |
Year ended 04/30/17 | 11.20 | (0.08) | 1.98 | 1.90 | — | (0.14) | (0.14) | 12.96 | 17.00(e) | 82,590 | 1.97(e) | 1.98(e) | (0.64)(e) | 33 |
Year ended 04/30/16 | 14.07 | (0.07) | (1.05) | (1.12) | (0.09) | (1.66) | (1.75) | 11.20 | (7.57)(e) | 79,538 | 1.97(e) | 1.97(e) | (0.55)(e) | 38 |
Year ended 04/30/15 | 13.87 | 0.02 | 0.33 | 0.35 | (0.15) | — | (0.15) | 14.07 | 2.53(e) | 99,994 | 1.95(e) | 1.96(e) | 0.15(e) | 64 |
Class R | ||||||||||||||
Year ended 04/30/19 | 14.13 | (0.03) | 0.17 | 0.14 | — | (1.58) | (1.58) | 12.69 | 3.32 | 10,898 | 1.46(d) | 1.46(d) | (0.23)(d) | 51 |
Year ended 04/30/18 | 13.43 | (0.03) | 1.48 | 1.45 | — | (0.75) | (0.75) | 14.13 | 10.63 | 12,955 | 1.46 | 1.46 | (0.21) | 30 |
Year ended 04/30/17 | 11.55 | (0.02) | 2.04 | 2.02 | — | (0.14) | (0.14) | 13.43 | 17.53 | 14,135 | 1.51 | 1.52 | (0.18) | 33 |
Year ended 04/30/16 | 14.41 | (0.01) | (1.07) | (1.08) | (0.12) | (1.66) | (1.78) | 11.55 | (7.12) | 16,119 | 1.50 | 1.50 | (0.08) | 38 |
Year ended 04/30/15 | 14.20 | 0.09 | 0.33 | 0.42 | (0.21) | — | (0.21) | 14.41 | 3.03 | 20,696 | 1.47 | 1.48 | 0.63 | 64 |
Class Y | ||||||||||||||
Year ended 04/30/19 | 14.23 | 0.04 | 0.17 | 0.21 | — | (1.58) | (1.58) | 12.86 | 3.80 | 37,469 | 0.96(d) | 0.96(d) | 0.27(d) | 51 |
Year ended 04/30/18 | 13.46 | 0.04 | 1.48 | 1.52 | — | (0.75) | (0.75) | 14.23 | 11.13 | 39,323 | 0.96 | 0.96 | 0.29 | 30 |
Year ended 04/30/17 | 11.56 | 0.04 | 2.06 | 2.10 | (0.06) | (0.14) | (0.20) | 13.46 | 18.17 | 46,105 | 1.01 | 1.02 | 0.32 | 33 |
Year ended 04/30/16 | 14.39 | 0.05 | (1.08) | (1.03) | (0.14) | (1.66) | (1.80) | 11.56 | (6.71) | 21,016 | 1.00 | 1.00 | 0.42 | 38 |
Year ended 04/30/15 | 14.21 | 0.16 | 0.33 | 0.49 | (0.31) | — | (0.31) | 14.39 | 3.55 | 22,295 | 0.97 | 0.98 | 1.13 | 64 |
Class R5 | ||||||||||||||
Year ended 04/30/19 | 14.29 | 0.05 | 0.19 | 0.24 | — | (1.58) | (1.58) | 12.95 | 4.01 | 2,212 | 0.84(d) | 0.84(d) | 0.39(d) | 51 |
Year ended 04/30/18 | 13.50 | 0.06 | 1.48 | 1.54 | — | (0.75) | (0.75) | 14.29 | 11.25 | 2,439 | 0.84 | 0.84 | 0.41 | 30 |
Year ended 04/30/17 | 11.60 | 0.06 | 2.06 | 2.12 | (0.08) | (0.14) | (0.22) | 13.50 | 18.30 | 2,456 | 0.85 | 0.86 | 0.48 | 33 |
Year ended 04/30/16 | 14.42 | 0.08 | (1.09) | (1.01) | (0.15) | (1.66) | (1.81) | 11.60 | (6.56) | 2,850 | 0.84 | 0.84 | 0.58 | 38 |
Year ended 04/30/15 | 14.25 | 0.19 | 0.33 | 0.52 | (0.35) | — | (0.35) | 14.42 | 3.76 | 2,952 | 0.82 | 0.83 | 1.28 | 64 |
Class R6 | ||||||||||||||
Year ended 04/30/19 | 14.31 | 0.06 | 0.18 | 0.24 | — | (1.58) | (1.58) | 12.97 | 4.00 | 32,666 | 0.79(d) | 0.79(d) | 0.44(d) | 51 |
Year ended 04/30/18 | 13.50 | 0.08 | 1.48 | 1.56 | — | (0.75) | (0.75) | 14.31 | 11.40 | 28,305 | 0.77 | 0.77 | 0.48 | 30 |
Year ended 04/30/17(f) | 13.60 | 0.01 | (0.11) | (0.10) | — | — | — | 13.50 | (0.74) | 10 | 0.76(g) | 0.76(g) | 0.57(g) | 33 |
(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 omitted) of $629,257, $51,125, $12,082, $38,167, $2,403 and $29,562 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.96%, 0.95%, 0.97%, 0.97% and 0.98% for the years ended April 30, 2019, 2018, 2017, 2016 and 2015, respectively. |
(f) | Commencement date of April 04, 2017. |
(g) | Annualized. |
15 | Invesco Value Opportunities Fund |
A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
16 | Invesco Value Opportunities Fund |
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for 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 |
17 | Invesco Value Opportunities Fund |
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. |
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
Average Daily Net Assets | Rate |
First $250 million | 0.695% |
Next $250 million | 0.67% |
Next $500 million | 0.645% |
Next $1.5 billion | 0.62% |
Next $2.5 billion | 0.595% |
Next $2.5 billion | 0.57% |
Next $2.5 billion | 0.545% |
Over $10 billion | 0.52% |
18 | Invesco Value Opportunities Fund |
19 | Invesco Value Opportunities Fund |
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2019 and 2018 | ||
2019 | 2018 | |
Ordinary income | $8,204,810 | $13,300,586 |
Long-term capital gain | 77,006,985 | 28,752,124 |
Total distributions | $85,211,795 | $42,052,710 |
Tax Components of Net Assets at Period-End: | |
2019 | |
Undistributed ordinary income | $3,211,326 |
Undistributed long-term capital gain | 10,728,373 |
Net unrealized appreciation — investments | 46,686,222 |
Net unrealized appreciation (depreciation) - foreign currencies | (14,307) |
Temporary book/tax differences | (463,796) |
Shares of beneficial interest | 698,810,150 |
Total net assets | $758,957,968 |
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | $102,220,559 |
Aggregate unrealized (depreciation) of investments | (55,534,337) |
Net unrealized appreciation of investments | $46,686,222 |
20 | Invesco Value Opportunities Fund |
Summary of Share Activity | |||||
Years ended April 30, | |||||
2019(a) | 2018 | ||||
Shares | Amount | Shares | Amount | ||
Sold: | |||||
Class A | 2,997,323 | $38,539,069 | 3,456,497 | $49,060,752 | |
Class B(b) | — | — | 4,849 | 65,989 | |
Class C | 261,349 | 3,284,811 | 329,810 | 4,592,496 | |
Class R | 84,122 | 1,110,544 | 131,947 | 1,885,739 | |
Class Y | 1,098,977 | 13,944,039 | 1,742,268 | 24,879,394 | |
Class R5 | 20,827 | 293,122 | 13,325 | 196,313 | |
Class R6 | 811,481 | 10,686,666 | 2,086,303 | 32,782,874 | |
Issued as reinvestment of dividends: | |||||
Class A | 6,168,261 | 65,568,617 | 2,228,755 | 32,651,271 | |
Class B(b) | — | — | 19,605 | 281,915 | |
Class C | 682,635 | 6,812,768 | 256,843 | 3,588,097 | |
Class R | 132,621 | 1,393,851 | 49,882 | 725,285 | |
Class Y | 363,569 | 3,868,374 | 196,807 | 2,877,326 | |
Class R5 | 24,915 | 266,591 | 8,702 | 127,739 | |
Class R6 | 308,054 | 3,302,335 | 457 | 6,718 | |
Conversion of Class B shares to Class A shares:(c) | |||||
Class A | — | — | 521,290 | 8,325,001 | |
Class B | — | — | (551,441) | (8,325,001) | |
Automatic conversion of Class C shares to Class A shares: | |||||
Class A | 3,463,765 | 40,606,720 | - | - | |
Class C | (3,690,780) | (40,606,720) | - | - | |
Reacquired: | |||||
Class A | (7,830,091) | (103,149,725) | (7,486,368) | (107,770,844) | |
Class B(b) | — | — | (129,648) | (1,824,778) | |
Class C | (871,075) | (11,069,751) | (1,924,642) | (25,635,194) | |
Class R | (274,956) | (3,409,431) | (316,990) | (4,607,895) | |
Class Y | (1,313,108) | (16,793,722) | (2,600,650) | (39,851,645) | |
Class R5 | (45,550) | (603,705) | (33,244) | (483,723) | |
Class R6 | (579,271) | (7,614,744) | (109,405) | (1,620,790) | |
Net increase (decrease) in share activity | 1,813,068 | $6,429,709 | (2,105,048) | $(28,072,961) |
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 29% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
(b) | Class B shares activity for the period May 1, 2017 through January 26, 2018 (date of conversion). |
(c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
21 | Invesco Value Opportunities Fund |
22 | Invesco Value Opportunities Fund |
Beginning Account Value (11/01/18) | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio | |||
Ending Account Value (04/30/19)1 | Expenses Paid During Period2 | Ending Account Value (04/30/19) | Expenses Paid During Period2 | |||
Class A | $1,000.00 | $1,105.70 | $6.37 | $1,018.74 | $6.11 | 1.22% |
Class C | 1,000.00 | 1,101.60 | 10.11 | 1,015.17 | 9.69 | 1.94 |
Class R | 1,000.00 | 1,104.30 | 7.67 | 1,017.50 | 7.35 | 1.47 |
Class Y | 1,000.00 | 1,106.40 | 5.07 | 1,019.98 | 4.86 | 0.97 |
Class R5 | 1,000.00 | 1,107.50 | 4.44 | 1,020.58 | 4.26 | 0.85 |
Class R6 | 1,000.00 | 1,107.30 | 4.18 | 1,020.83 | 4.01 | 0.80 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
23 | Invesco Value Opportunities Fund |
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | $77,006,985 |
Qualified Dividend Income* | 77.15% |
Corporate Dividends Received Deduction* | 75.44% |
U.S. Treasury Obligations* | 0.00% |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
Non-Resident Alien Shareholders | |
Qualified Short-Term Gains | $8,204,810 |
24 | Invesco Value Opportunities Fund |
Trustees and Officers
The address of each trustee and officer is AIM Sector Funds (Invesco Sector Funds) (the “Trust”), 11 Greenway Plaza, Suite 1000, 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.
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Interested Persons | ||||||||
Martin L. Flanagan1 — 1960 Trustee and Vice Chair | 2007 | Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Trustee and Vice Chair, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business
Formerly: Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Chairman and Chief Executive Officer, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, Invesco Holding Company (US), Inc. (formerly 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) | 241 | None | ||||
Philip A. Taylor2 — 1954 Trustee | 2006 | Vice Chair, Invesco Ltd.; Director, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Trustee, The Invesco Funds
Formerly: Head of the Americas and Senior Managing Director, Invesco Ltd.; Director, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); Chairman and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.) (financial services holding company);Co-Chairman,Co-President andCo-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, Van Kampen Exchange Corp; President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust); Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Invesco Management Trust only); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent); Director and Chairman, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company), Invesco Canada Holdings Inc. (holding company), Trimark Investments Ltd./Placements Trimark Ltèe and Invesco Financial Services Ltd/Services Financiers Invesco Ltèe; Chief Executive Officer, Invesco Canada Fund Inc. (corporate mutual fund company); Director and Chairman, Van Kampen Investor Services Inc.; Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company) and Van Kampen Investments Inc.; Director and President, AIM GP Canada Inc. (general partner for limited partnerships) and Van Kampen Advisors, Inc.; Director and Chief Executive Officer, Invesco Trimark Dealer Inc. (registered broker dealer); Director, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.) (registered broker dealer); Manager, Invesco 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; 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), and Short-Term Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc. | 241 | None |
1 | Mr. Flanagan is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) 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. |
2 | Mr. Taylor is considered an interested person (within the meaning of Section 2(a)(19) of the 1940 Act) of the Trust because he is an officer of Invesco Ltd., ultimate parent of the Adviser. |
T-1 Invesco Value Opportunities Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees | ||||||||
Bruce L. Crockett — 1944 Trustee and Chair | 2003 | Chairman, Crockett Technologies Associates (technology consulting company)
Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer, COMSAT Corporation; Chairman, Board of Governors of INTELSAT (international communications company); ACE Limited (insurance company); Independent Directors Council and Investment Company Institute: Member of the Audit Committee, Investment Company Institute; Member of the Executive Committee and Chair of the Governance Committee, Independent Directors Council | 241 | Director and Chairman of the Audit Committee, ALPS (Attorneys Liability Protection Society) (insurance company); Director and Member of the Audit Committee and Compensation Committee, Ferroglobe PLC (metallurgical company) | ||||
David C. Arch — 1945 Trustee | 2010 | Chairman of Blistex Inc. (consumer health care products manufacturer); Member, World Presidents’ Organization | 241 | Board member of the Illinois Manufacturers’ Association | ||||
Beth Ann Brown3 — 1968 Trustee | 2019 | Independent Consultant
Formerly: Head of Intermediary Distribution, Managing Director, Strategic Relations, Managing Director, Head of National Accounts, Senior Vice President, National Account Manager and Senior Vice President, Key Account Manager, Columbia Management Investment Advisers LLC; Vice President, Key Account Manager, Liberty Funds Distributor, Inc.; and Trustee of certain Oppenheimer Funds | 225 | Director, Board of Directors of Caron Engineering Inc.; Advisor, Board of Advisors of Caron Engineering Inc.; President and Director, Acton Shapleigh Youth Conservation Corps (non -profit); and Vice President and Director of Grahamtastic Connection(non-profit) | ||||
Jack M. Fields — 1952 Trustee | 2003 | Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Chairman, Discovery Learning Alliance(non-profit)
Formerly: Owner and Chief Executive Officer, Dos Angeles Ranch L.P. (cattle, hunting, corporate entertainment); Director, Insperity, Inc. (formerly known as Administaff) (human resources provider); Chief Executive Officer, Texana Timber LP (sustainable forestry company); Director of Cross Timbers Quail Research Ranch(non-profit); and member of the U.S. House of Representatives | 241 | None | ||||
Cynthia Hostetler — 1962 Trustee | 2017 | Non-Executive Director and Trustee of a number of public and private business corporations
Formerly: Director, Aberdeen Investment Funds (4 portfolios); Head of Investment Funds and Private Equity, Overseas Private Investment Corporation; President, First Manhattan Bancorporation, Inc.; Attorney, Simpson Thacher & Bartlett LLP | 241 | Vulcan Materials Company (construction materials company); Trilinc Global Impact Fund; Genesee & Wyoming, Inc. (railroads); Artio Global Investment LLC (mutual fund complex); Edgen Group, Inc. (specialized energy and infrastructure products distributor); Investment Company Institute (professional organization); Independent Directors Council (professional organization) | ||||
Eli Jones — 1961 Trustee | 2016 | Professor and Dean, Mays Business School — Texas A&M University
Formerly: Professor and Dean, Walton College of Business, University of Arkansas and E.J. Ourso College of Business, Louisiana State University; Director, Arvest Bank | 241 | Insperity, Inc. (formerly known as Administaff) (human resources provider) | ||||
Elizabeth Krentzman3 — 1959 Trustee | 2019 | Formerly: Principal and Chief Regulatory Advisor for Asset Management Services and U.S. Mutual Fund Leader of Deloitte & Touche LLP; General Counsel of the Investment Company Institute (trade association); National Director of the Investment Management Regulatory Consulting Practice, Principal, Director and Senior Manager of Deloitte & Touche LLP; Assistant Director of the Division of Investment Management — Office of Disclosure and Investment Adviser Regulation of the U.S. Securities and Exchange Commission and various positions with the Division of Investment Management — Office of Regulatory Policy of the U.S. Securities and Exchange Commission; Associate at Ropes & Gray LLP; Advisory Board Member of the Securities and Exchange Commission Historical Society; and Trustee of certain Oppenheimer Funds | 225 | Trustee of the University of Florida National Board Foundation and Audit Committee Member; Member of the Cartica Funds Board of Directors (private investment funds); Member of the University of Florida Law Center Association, Inc. Board of Trustees and Audit Committee Member | ||||
Anthony J. LaCava, Jr. — 1956 Trustee | 2019 | Formerly: Director and Member of the Audit Committee, Blue Hills Bank (publicly traded financial institution) and Managing Partner, KPMG LLP | 241 | Blue Hills Bank; Chairman, Bentley University; Member, Business School Advisory Council; and Nominating Committee, KPMG LLP | ||||
Prema Mathai-Davis — 1950 Trustee | 2003 | Retired
Co-Owner & Partner of Quantalytics Research, LLC, (a FinTech Investment Research Platform for the Self-Directed Investor) | 241 | None |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-2 Invesco Value Opportunities Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Independent Trustees—(continued) | ||||||||
Joel W. Motley3 — 1952 Trustee | 2019 | Director of Office of Finance, Federal Home Loan Bank; Member of the Vestry of Trinity Wall Street; Managing Director of Carmona Motley Inc. (privately held financial advisor); Member of the Finance and Budget Committee of the Council on Foreign Relations, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee and Board of Historic Hudson Valley(non-profit cultural organization)
Formerly: Managing Director of Public Capital Advisors, LLC (privately held financial advisor); Managing Director of Carmona Motley Hoffman, Inc. (privately held financial advisor); Trustee of certain Oppenheimer Funds; and Director of Columbia Equity Financial Corp. (privately held financial advisor) | 225 | Director of Greenwall Foundation (bioethics research foundation); Member of Board and Investment Committee of The Greenwall Foundation; Director of Southern Africa Legal Services Foundation; Board Member and Investment Committee Member of Pulitzer Center for Crisis Reporting(non-profit journalism) | ||||
Teresa M. Ressel — 1962 Trustee | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Chief Financial Officer, Olayan America, The Olayan Group (international investor/commercial/industrial); Chief Executive Officer, UBS Securities LLC; Group Chief Operating Officer, Americas, UBS AG; Assistant Secretary for Management & Budget and CFO, US Department of the Treasury | 241 | Atlantic Power Corporation (power generation company); ON Semiconductor Corp. (semiconductor supplier) | ||||
Ann Barnett Stern — 1957 Trustee | 2017 | President and Chief Executive Officer, Houston Endowment Inc. (private philanthropic institution)
Formerly: Executive Vice President and General Counsel, Texas Children’s Hospital; Attorney, Beck, Redden and Secrest, LLP; Business Law Instructor, University of St. Thomas; Attorney, Andrews & Kurth LLP | 241 | Federal Reserve Bank of Dallas | ||||
Raymond Stickel, Jr. — 1944 Trustee | 2005 | Retired
Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios); Partner, Deloitte & Touche | 241 | None | ||||
Robert C. Troccoli — 1949 Trustee | 2016 | Adjunct Professor, University of Denver — Daniels College of Business
Formerly: Senior Partner, KPMG LLP | 241 | None | ||||
Daniel S. Vandivort3 — 1954 Trustee | 2019 | Treasurer, Chairman of the Audit and Finance Committee, and Trustee, Board of Trustees, Huntington Disease Foundation of America; and President, Flyway Advisory Services LLC (consulting and property management)
Formerly: Trustee and Governance Chair, of certain Oppenheimer Funds | 225 | Chairman and Lead Independent Director, Chairman of the Audit Committee, and Director, Board of Directors, Value Line Funds | ||||
James D. Vaughn3 — 1945 Trustee | 2019 | Retired
Formerly: Managing Partner, Deloitte & Touche LLP; Trustee and Chairman of the Audit Committee, Schroder Funds; Board Member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network (economic development corporation); and Trustee of certain Oppenheimer Funds | 225 | Board member and Chairman of Audit Committee of AMG National Trust Bank; Trustee and Investment Committee member, University of South Dakota Foundation; Board member, Audit Committee Member and past Board Chair, Junior Achievement(non-profit) | ||||
Christopher L. Wilson — 1957 Trustee and Vice Chair | 2017 | Non-executive director and trustee of a number of public and private business corporations
Formerly: Director, TD Asset Management USA Inc. (mutual fund complex) (22 portfolios); Managing Partner, CT2, LLC (investing and consulting firm); President/Chief Executive Officer, Columbia Funds, Bank of America Corporation; President/Chief Executive Officer, CDC IXIS Asset Management Services, Inc.; Principal & Director of Operations, Scudder Funds, Scudder, Stevens & Clark, Inc.; Assistant Vice President, Fidelity Investments | 241 | ISO New England, Inc.(non-profit organization managing regional electricity market) | ||||
Other Officers | ||||||||
Sheri Morris — 1964 President, Principal Executive Officer and Treasurer | 2003 | President, Principal Executive Officer and Treasurer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Vice President and Principal Financial Officer, The Invesco Funds; Vice President, Invesco AIM 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.; and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust | N/A | N/A | ||||
Russell C. Burk — 1958 Senior Vice President and Senior Officer | 2005 | Senior Vice President and Senior Officer, The Invesco Funds | N/A | N/A |
3 | Mss. Brown and Krentzman and Messrs. Motley, Vandivort and Vaughn were appointed as Trustees of the Trust effective June 10, 2019. |
T-3 Invesco Value Opportunities Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Jeffrey H. Kupor — 1968 Senior Vice President, Chief Legal Officer and Secretary | 2018 | Head of Legal of the Americas, Invesco Ltd.; Senior Vice President and Secretary, 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.); Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.) and Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Secretary, W.L. Ross & Co., LLC; Secretary and Vice President, Jemstep, Inc.
Formerly: Head of Legal, Worldwide Institutional, Invesco Ltd.; Secretary and General Counsel, INVESCO Private Capital Investments, Inc.; Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Assistant Secretary, INVESCO Asset Management (Bermuda) Ltd.; Secretary and General Counsel, Invesco Private Capital, Inc.; Assistant Secretary and General Counsel, INVESCO Realty, Inc.; Secretary and General Counsel, Invesco Senior Secured Management, Inc.; and Secretary, Sovereign G./P. Holdings Inc. | N/A | N/A | ||||
Andrew R. Schlossberg — 1974 Senior Vice President | 2019 | Head of the Americas and Senior Managing Director, Invesco Ltd.; Director and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) (registered transfer agent); Senior Vice President, The Invesco Funds; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management) and Invesco UK Limited; Director, President and Chairman, Invesco Insurance Agency, Inc.; Director and Chief Executive, Invesco Asset Management Limited and Invesco Fund Managers Limited
Formerly: Assistant Vice President, The Invesco Funds; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director and Chief Executive, Invesco Administration Services Limited and Invesco Global Investment Funds Limited; Director, Invesco Distributors, Inc.; Head of EMEA, Invesco Ltd.; President, Invesco Actively Managed Exchange-Traded Commodity Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II and Invesco India Exchange-Traded Fund Trust; Managing Director and Principal Executive Officer, Invesco Capital Management LLC | N/A | N/A | ||||
John M. Zerr — 1962 Senior Vice President | 2006 | Chief Operating Officer of the Americas; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director and Vice President, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.) Senior Vice President, The Invesco Funds; Managing Director, Invesco Capital Management LLC; Director, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Senior Vice President, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Manager, Invesco Indexing LLC; Director and Senior Vice President, Invesco Insurance Agency, Inc.; Invesco Canada Funds Advisory Board Member; Director, President Chief Executive Officer, Invesco Corporate Class Inc. (corporate mutual fund company); and Director, Chairman, President and Chief Executive Officer, Invesco Canada Ltd. (formerly known as Invesco Trimark Ltd./Invesco Trimark Ltèe) (registered investment adviser and registered transfer agent)
Formerly: Director and Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco AIM Management Group, Inc.); Secretary, Invesco Investment Services, Inc. (formerly known as Invesco AIM Investment Services, Inc.); Chief Legal Officer and Secretary, The Invesco Funds; Secretary and General Counsel, Invesco Investment Advisers LLC (formerly known as Van Kampen Asset Management); Secretary and General Counsel, Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.); Chief Legal Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Secretary, Invesco Indexing LLC; Director, Secretary, General Counsel and Senior Vice President, Van Kampen Exchange Corp.; Director, Vice President and Secretary, IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Director and Vice President, Van Kampen Advisors Inc.; Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; Director and Secretary, Invesco Distributors, Inc. (formerly known as Invesco AIM Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco AIM Advisers, Inc. and Van Kampen Investments 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) | N/A | N/A |
T-4 Invesco Value Opportunities Fund
Trustees and Officers—(continued)
Name, Year of Birth and Position(s) Held with the Trust | Trustee and/ or Officer Since | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund | Other Directorship(s) Held by Trustee During Past 5 Years | ||||
Other Officers—(continued) | ||||||||
Gregory G. McGreevey — 1962 Senior Vice President | 2012 | Senior Managing Director, Invesco Ltd.; Director, Chairman, President, and Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Invesco Mortgage Capital, Inc. and Invesco Senior Secured Management, Inc.; and Senior Vice President, The Invesco Funds
Formerly: Senior Vice President, Invesco Management Group, Inc. and Invesco Advisers, Inc.; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Kelli Gallegos — 1970 Vice President, Principal Financial Officer and Assistant Treasurer | 2008 | Assistant Treasurer, Invesco Specialized Products, LLC; Vice President, Principal Financial Officer and Assistant Treasurer, The Invesco Funds; Principal Financial and Accounting Officer — Pooled Investments, Invesco Capital Management LLC; Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust
Formerly: Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Assistant Treasurer, Invesco Capital Management LLC; Assistant Vice President, The Invesco Funds | N/A | N/A | ||||
Crissie M. Wisdom — 1969 Anti-Money Laundering Compliance Officer | 2013 | Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser), Invesco Capital Markets, Inc. (formerly known as Van Kampen Funds Inc.), Invesco Distributors, Inc., Invesco Investment Services, Inc., The Invesco Funds, and Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Anti-Money Laundering Compliance Officer and Bank Secrecy Act Officer, INVESCO National Trust Company and Invesco Trust Company; and Fraud Prevention Manager and Controls and Risk Analysis Manager for Invesco Investment Services, Inc.
Formerly: Anti-Money Laundering Compliance Officer, Van Kampen Exchange Corp. and Invesco Management Group, Inc. | N/A | N/A | ||||
Robert R. Leveille — 1969 Chief Compliance Officer | 2016 | Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser); and Chief Compliance Officer, The Invesco Funds
Formerly: Chief Compliance Officer, Putnam Investments and the Putnam Funds | 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 Statement of Additional Information for information on the Fund’ssub-advisers.
Office of the Fund 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Investment Adviser Invesco Advisers, Inc. 1555 Peachtree Street, N.E. Atlanta, GA 30309 | Distributor Invesco Distributors, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Auditors PricewaterhouseCoopers LLP 1000 Louisiana Street, Suite 5800 Houston, TX 77002-5021 | |||
Counsel to the Fund Stradley Ronon Stevens & Young, LLP 2005 Market Street, Suite 2600 Philadelphia, PA 19103-7018 | Counsel to the Independent Trustees Goodwin Procter LLP 901 New York Avenue, N.W. Washington, D.C. 20001 | Transfer Agent Invesco Investment Services, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Custodian State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110-2801 |
T-5 Invesco Value Opportunities Fund
• | Fund reports and prospectuses |
• | Quarterly statements |
• | Daily confirmations |
• | Tax forms |
SEC file numbers: 811-03826 and 002-85905 | Invesco Distributors, Inc. | VK-VOPP-AR-1 |
ITEM 2. | CODE OF ETHICS. |
There were no amendments to the Code of Ethics (the “Code”) that applies to the Registrant’s Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) during the period covered by the report. 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 experts are David C. Arch, Bruce L. Crockett, Cynthia Hostetler, Elizabeth Krentzman, Anthony J. LaCava, Jr., Teresa M. Ressel, Raymond Stickel, Jr. Robert C. Troccoli and James Vaughn. David C. Arch, Bruce L. Crockett, Cynthia Hostetler, Elizabeth Krentzman, Anthony J. LaCava, Jr., Teresa M. Ressel, Raymond Stickel, Jr. Robert C. Troccoli and James Vaughn are “independent” within the meaning of that term as used in FormN-CSR.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
PricewaterhouseCoopers LLP (“PwC”) informed the Audit Committee that it has identified an issue related to its independence under Rule2-01(c)(1)(ii)(A) of RegulationS-X (referred to as the Loan Rule). The Loan Rule prohibits accounting firms, such as PricewaterhouseCoopers LLP, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.
The Loan Rule specifically provides that an accounting firm would not be independent if it or certain affiliates and covered persons receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities (referred to as a “more than ten percent owner”). For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PwC informed the Trust it and certain affiliates and covered persons have relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex.
On June 20, 2016, the SEC Staff issued a“no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al.,No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. On June 18, 2019, the SEC adopted amendments to the Loan Rule (the “Amendments”) addressing many of the issues that led to the issuance of theno-action letter. The Amendments will become effective and supersede theno-action letter 90 days after publication in the Federal Register. In connection with prior independence determinations, PwC communicated, as contemplated by theno-action letter, that it believes that it remains objective and impartial and that a reasonable investor possessing all the facts would conclude that PwC is able to exhibit the requisite objectivity and impartiality to report on the Funds’ financial statements as the independent registered public accounting firm. PwC also represented that it has complied with PCAOB Rule 3526(b)(1) and (2), which are conditions to the Funds relying on the no action letter, and affirmed that it is an independent accountant within the meaning of PCAOB Rule 3520. Therefore, the Adviser, the
Funds and PwC concluded that PwC could continue as the Funds’ independent registered public accounting firm. The Invesco Fund Complex relied upon theno-action letter in reaching this conclusion.
If in the future the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the SEC’sno-action letter, the Funds will need to take other action in order for the Funds’ filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares or have other material adverse effects on the Funds. The SECno-action relief was initially set to expire 18 months from issuance but has been extended by the SEC without an expiration date, except that theno-action letter will be withdrawn upon the effectiveness of the Amendments.
During the reporting period, PwC advised the Audit Committee of the following matters for consideration under the SEC’s auditor independence rules. PwC advised the Audit Committee that a PwC Manager, a PwC Senior Manager and a PwC Director each held financial interests in investment companies within the Invesco Fund Complex that were inconsistent with the requirements of Rule2-01(c)(1) of RegulationS-X. PwC noted, among other things, that during the time of its audit, the engagement team was not aware of the investments, the individuals were not in the chain of command of the audit or the audit partners of Invesco or the affiliate of the Registrant, the services each individual provided were not relied upon by the audit engagement team with respect to the audit of the Registrant or its affiliates and the investments were not material to the net worth of each individual or their respective immediate family members which they considered in reaching their conclusion. PwC advised the Audit Committee that it believes its objectivity and impartiality had not been adversely affected by these matters as they related to the audit of the Registrant.
(a) to (d)
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:
Fees Billed for Services Rendered to the Registrant for fiscal year end 2019 | Fees Billed for Services Rendered to the Registrant for fiscal year end 2018 | |||||||
Audit Fees | $ | 333,858 | $ | 291,750 | ||||
Audit-Related Fees(1) | $ | 0 | $ | 31,500 | ||||
Tax Fees(2) | $ | 78,568 | $ | 99,600 | ||||
All Other Fees | $ | 0 | $ | 0 | ||||
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Total Fees | $ | 412,426 | $ | 422,850 |
(g) PwC billed the Registrant aggregatenon-audit fees of $78,568 for the fiscal year ended 2019, and $131,100 for the fiscal year ended 2018, fornon-audit services rendered to the Registrant.
(1) | Audit-Related Fees for the fiscal year end April 30, 2018 included fees billed for agreed upon procedures for regulatory filings. |
(2) | Tax Fees for the fiscal year end April 30, 2019 includes fees billed for reviewing tax returns and/or services related to tax compliance. Tax Fees for fiscal year end April 30, 2018 included fees billed for reviewing tax returns and/or services related to tax compliance. |
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 forpre-approvednon-audit services rendered to Invesco and Invesco Affiliates for the last two fiscal years as follows:
Fees Billed for Non-Audit Services Rendered to Invesco and Invesco Affiliates for fiscal year end 2019 That Were Required to bePre-Approved by the Registrant’s Audit Committee | Fees Billed for Non-Audit Services Rendered to Invesco and Invesco Affiliates for fiscal year end 2018 That Were Required to bePre-Approved by the Registrant’s Audit Committee | |||||||
Audit-Related Fees(1) | $ | 690,000 | $ | 662,000 | ||||
Tax Fees | $ | 0 | $ | 0 | ||||
All Other Fees(2) | $ | 0 | $ | 611,000 | ||||
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Total Fees | $ | 690,000 | $ | 1,273,000 |
(1) | Audit-Related Fees for the year end 2019 include fees billed related to reviewing controls at a service organization. Audit-Related Fees for the year end 2018 included fees billed related to reviewing controls at a service organization. |
(2) | All Other Fees for the year end 2018 included fees billed related to the assessments for certain of the company’s risk management tools, current state analysis against regulatory requirements and identification of structural and organizational alternatives, informed by industry practices, for certain of the company’s administrative activities and functions. |
(e)(2) There were no amounts that werepre-approved by the Audit Committee pursuant to the de minimus exception under Rule2-01 of RegulationS-X.
(f) Not applicable.
(g) Including the fees for services not required to bepre-approved by the Registrant’s Audit Committee, PwC billed Invesco and Invesco Affiliates aggregatenon-audit fees of $4,240,000 for the fiscal year ended April 30, 2019, and $4,101,000 for the fiscal year ended April 30, 2018, fornon-audit services rendered to Invesco and Invesco Affiliates.
PwC provided audit services to the Investment Company complex of approximately $25 million.
(h) The Audit Committee also has considered whether the provision ofnon-audit services that were rendered to Invesco and Invesco Affiliates that were not required to bepre-approved pursuant to SEC regulations, if any, is compatible with maintaining PwC’s independence.
(e)(1)
PRE-APPROVAL OF AUDIT ANDNON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees
of the Invesco Funds (the “Funds”)
Last Amended March 29, 2017
I. | Statement of Principles |
The Audit Committees (the “Audit Committee”) of the Boards of Trustees of the Funds (the “Board”) have adopted these policies and procedures (the “Procedures”) with respect to thepre-approval of audit andnon-audit services to be provided by the Funds’ independent auditor (the “Auditor”) to the Funds, and to the Funds’ investment adviser(s) and any entity controlling, controlled by, or under common control with the investment adviser(s) that provides ongoing services to the Funds (collectively, “Service Affiliates”).
Under Section 202 of the Sarbanes-Oxley Act of 2002, all audit andnon-audit services provided to the Funds by the Auditor must be preapproved by the Audit Committee. Rule2-01 of RegulationS-X requires that the Audit Committee alsopre-approve a Service Affiliate’s engagement of the Auditor fornon-audit services if the engagement relates directly to the operations and financial reporting of the Funds (a “Service Affiliate’s Covered Engagement”).
These Procedures set forth the procedures and the conditions pursuant to which the Audit Committee maypre-approve audit andnon-audit services for the Funds and a Service Affiliate’s Covered Engagement pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and other organizations and regulatory bodies applicable to the Funds (“Applicable Rules”).1 They address both generalpre-approvals without consideration of specificcase-by-case services (“general pre-approvals”) and pre-approvals on acase-by-case basis (“specific pre-approvals”). Any services requiringpre-approval that are not within the scope of generalpre-approvals hereunder are subject to specificpre-approval. These Procedures also address the delegation by the Audit Committee ofpre-approval authority to the Audit Committee Chair or Vice Chair.
II. | Pre-Approval of Fund Audit Services |
The annual Fund audit services engagement, including terms and fees, is subject to specificpre-approval by the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by an independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committee will receive, review and consider sufficient information concerning a proposed Fund audit engagement to make a reasonable evaluation of the Auditor’s qualifications and independence. The Audit Committee
1 | Applicable Rules include, for example, New York Stock Exchange (“NYSE”) rules applicable toclosed-end funds managed by Invesco and listed on NYSE. |
will oversee the Fund audit services engagement as necessary, including approving any changes in terms, audit scope, conditions and fees.
In addition to approving the Fund audit services engagement at least annually and specifically approving any changes, the Audit Committee may generally or specificallypre-approve engagements for other audit services, which are those services that only an independent auditor reasonably can provide. Other audit services may include services associated with SEC registration statements, periodic reports and other documents filed with the SEC.
III. | General and SpecificPre-Approval ofNon-Audit Fund Services |
The Audit Committee will consider, at least annually, the list of GeneralPre-ApprovedNon-Audit Services which list may be terminated or modified at any time by the Audit Committee. To inform the Audit Committee’s review and approval of GeneralPre-ApprovedNon-Audit Services, the Funds’ Treasurer (or his or her designee) and Auditor shall provide such information regarding independence or other matters as the Audit Committee may request.
Any services or fee ranges that are not within the scope of GeneralPre-ApprovedNon-Audit Services have not received generalpre-approval and require specificpre-approval. Each request for specificpre-approval by the Audit Committee for services to be provided by the Auditor to the Funds must be submitted to the Audit Committee by the Funds’ Treasurer (or his or her designee)and must include detailed information about the services to be provided, the fees or fee ranges to be charged, and other relevant information sufficient to allow the Audit Committee to consider whether topre-approve such engagement, including evaluating whether the provision of such services will impair the independence of the Auditor and is otherwise consistent with Applicable Rules.
IV. | Non-Audit Service Types |
The Audit Committee may provide either general or specificpre-approval of audit-related, tax or other services, each as described in more detail below.
a. | 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 an 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; services related to mergers, acquisitions or dispositions; compliance with ratings agency requirements and interfund lending activities; and assistance with internal control reporting requirements.
b. | 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 Committee will not approve proposed services of the Auditor which the Audit Committee believes are to be provided in connection with a service or transaction initially recommended by the Auditor, the sole business purpose of which may be tax avoidance and the tax treatment of
which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisers as necessary to ensure the consistency of tax services rendered by the Auditor with the foregoing policy. The Auditor shall not represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.
Each request to provide tax services under either the general or specificpre-approval of the Audit Committee will include a description from the Auditor in writing of (i) the scope of the service, the fee structure for the engagement, and any side letter or other amendment to the engagement letter, or any other agreement (whether oral, written, or otherwise) between the Auditor and the Funds, relating to the service; and (ii) any compensation arrangement or other agreement, such as a referral agreement, a referral fee orfee-sharing arrangement, between the Auditor (or an affiliate of the Auditor) and any person (other than the Funds or Service Affiliates receiving the services) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will also discuss with the Audit Committee the potential effects of the services on the independence of the Auditor, and document the substance of its discussion with the Audit Committee.
c. | Other Services |
The Audit Committee maypre-approve other non-audit services so long as the Audit Committee believes that the service will not impair the independence of the Auditor.Appendix I includes a list of services that the Auditor is prohibited from performing by the SEC rules.Appendix I also includes a list of services that would impair the Auditor’s independence unless the Audit Committee reasonably concludes that the results of the services will not be subject to audit procedures during an audit of the Funds’ financial statements.
V. | Pre-Approval of Service Affiliate’s Covered Engagements |
Rule2-01 of RegulationS-X requires that the Audit Committeepre-approve a Service Affiliate’s engagement of the Auditor fornon-audit services if the engagement relates directly to the operations and financial reporting of the Funds, defined above as a “Service Affiliate’s Covered Engagement”.
The Audit Committee may provide either general or specificpre-approval of any Service Affiliate’s Covered Engagement, including for audit-related, tax or other services, as described above, if the Audit Committee believes that the provision of the services to a Service Affiliate will not impair the independence of the Auditor with respect to the Funds. Any Service Affiliate’s Covered Engagements that are not within the scope of GeneralPre-ApprovedNon-Audit Services have not received generalpre-approval and require specificpre-approval.
Each request for specificpre-approval by the Audit Committee of a Service Affiliate’s Covered Engagement must be submitted to the Audit Committee by the Funds’ Treasurer (or his or her designee)and must include detailed information about the services to be provided, the fees or fee ranges to be charged, a description of the current status of thepre-approval process involving other audit committees in the Invesco investment company complex (as defined in Rule2-201 of RegulationS-X) with respect to the proposed engagement, and other relevant information
sufficient to allow the Audit Committee to consider whether the provision of such services will impair the independence of the Auditor from the Funds. Additionally, the Funds’ Treasurer (or his or her designee) and the Auditor will provide the Audit Committee with a statement that the proposed engagement requirespre-approval by the Audit Committee, the proposed engagement, in their view, will not impair the independence of the Auditor and is consistent with Applicable Rules, and the description of the proposed engagement provided to the Audit Committee is consistent with that presented to or approved by the Invesco audit committee.
Information about all Service Affiliate engagements of the Auditor fornon-audit services, whether or not subject topre-approval by the Audit Committee, shall be provided to the Audit Committee at least quarterly, to allow the Audit Committee to consider whether the provision of such services is compatible with maintaining the Auditor’s independence from the Funds. The Funds’ Treasurer and Auditor shall provide the Audit Committee with sufficiently detailed information about the scope of services provided and the fees for such services, to ensure that the Audit Committee can adequately consider whether the provision of such services is compatible with maintaining the Auditor’s independence from the Funds.
VI. | Pre-Approved Fee Levels or Established Amounts |
Pre-approved fee levels or ranges for audit andnon-audit services to be provided by the Auditor to the Funds, and for a Service Affiliate’s Covered Engagement, under generalpre-approval or specificpre-approval will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximumpre-approved fee levels or ranges for such services or engagements will be promptly presented to the Audit Committee and will require specificpre-approval by the Audit Committee before payment of any additional fees is made.
VII. | Delegation |
The Audit Committee hereby delegates, subject to the dollar limitations set forth below, specific authority to its Chair, or in his or her absence, Vice Chair, topre-approve audit andnon-audit services proposed to be provided by the Auditor to the Funds and/or a Service Affiliate’s Covered Engagement, between Audit Committee meetings. Such delegation does not preclude the Chair or Vice Chair from declining, on a case by case basis, to exercise his or her delegated authority and instead convening the Audit Committee to consider andpre-approve any proposed services or engagements.
Notwithstanding the foregoing, the Audit Committee mustpre-approve: (a) anynon-audit services to be provided to the Funds for which the fees are estimated to exceed $500,000; (b) any Service Affiliate’s Covered Engagement for which the fees are estimated to exceed $500,000; or (c) any cost increase to any previously approved service or engagement that exceeds the greater of $250,000 or 50% of the previously approved fees up to a maximum increase of $500,000.
VIII. | Compliance with Procedures |
Notwithstanding anything herein to the contrary, failure topre-approve any services or engagements that are not required to bepre-approved pursuant to the de minimis exception provided for in Rule2-01(c)(7)(i)(C) of RegulationS-X shall not constitute a violation of these Procedures. The Audit Committee has designated the Funds’ Treasurer to ensure services and engagements arepre-approved in compliance with these Procedures. The Funds’ Treasurer will immediately report to the Chair of the Audit Committee, or the Vice Chair in his or her absence, any breach of these Procedures that comes to the attention of the Funds’ Treasurer or any services or engagements that are not required to bepre-approved pursuant to the de minimis exception provided for in Rule2-01(c)(7)(i)(C) of RegulationS-X.
On at least an annual basis, the Auditor will provide the Audit Committee with a summary of allnon-audit services provided to any entity in the investment company complex (as defined in section2-01(f)(14) of RegulationS-X, including the Funds and Service Affiliates) that were notpre-approved, including the nature of services provided and the associated fees.
IX. | Amendments to Procedures |
All material amendments to these Procedures must be approved in advance by the Audit Committee.Non-material amendments to these Procedures may be made by the Legal and Compliance Departments and will be reported to the Audit Committee at the next regularly scheduled meeting of the Audit Committee.
Appendix I
Non-Audit Services That May Impair the Auditor’s Independence
The Auditor is not independent if, at any point during the audit and professional engagement, the Auditor provides the followingnon-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; and |
• | Any other service that the Public Company Oversight Board determines by regulation is impermissible. |
An Auditor is not independent if, at any point during the audit and professional engagement, the Auditor provides the followingnon-audit services unless it is reasonable to conclude that the results of the services will not be subject to audit procedures during an audit of the Funds’ 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, orcontribution-in-kind reports; |
• | Actuarial services; and |
• | Internal audit outsourcing services. |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OFCLOSED-END MANAGEMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BYCLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
None
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | As of June 18, 2019, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of June 18, 2019, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on FormN-Q is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. |
(b) | There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the Act) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
13(a) (1) | Code of Ethics. | |
13(a) (2) | Certifications of principal executive officer and principal financial officer as required by Rule30a-2(a) under the Investment Company Act of 1940. | |
13(a) (3) | Not applicable. | |
13(a) (4) | Not applicable. | |
13(b) | Certifications of principal executive officer and principal financial officer as required by Rule30a-2(b) under the Investment Company Act of 1940. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: AIM Sector Funds (Invesco Sector Funds) | ||
By: | /s/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: July 8, 2019 |
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: July 8, 2019 |
By: | /s/ Kelli Gallegos | |
Kelli Gallegos | ||
Principal Financial Officer | ||
Date: July 8, 2019 |