0000826644 aimif:C000209637Member 2021-10-31 0000826644 aimif:C000209540Member aimif:MalaysiaGovernmentBondSeries21938908152029Member 2024-10-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
AIM Investment Funds (Invesco Investment Funds)
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Address of principal executive offices) (Zip code)
Glenn Brightman, Principal Executive Officer
11 Greenway Plaza, Suite 1000
Houston, Texas 77046
(Name and address of agent for service)
Registrant's telephone number, including area code:
Date of reporting period:
Item 1. Reports to Stockholders.
(a) The Registrant's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the "Act") is as follows:
Invesco Balanced-Risk Allocation Fund
Class A: ABRZX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Allocation Fund
(Class A) | $139 | 1.30%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 14.02%. For the same time period, the Custom Invesco Balanced Risk Allocation Style Index returned 24.08%.
What contributed to performance?
Growth Macro Factor | Strategic exposure to the growth macro factor, achieved through exchange-traded futures, swaps and listed options, was the top contributor to Fund performance with all six equity markets posting gains. US equities outperformed their international counterparts, driven by a resilient economy and, in the case of large caps, optimism around artificial intelligence prospects.
Defensive Macro Factor | Strategic exposure to the defensive macro factor, achieved through exchange-traded futures, contributed to Fund results in aggregate, with gains from Australian, German, Canadian and Japanese government bonds and the defensive factor premia exposure. Central bank policy was the primary driver of performance.
What detracted from performance?
Real Return Macro Factor | Strategic exposure to the real return macro factor, achieved through exchange-traded futures, swaps and commodity-linked notes, detracted from results in aggregate as gains in industrial and precious metals were outweighed by losses in agriculture and energy. Agriculture exposure was the top detractor within the real return macro factor as most agricultural commodities faced pressure from oversupply concerns. Energy exposure detracted from performance amid signs of an economic slowdown.
Tactical positioning | Tactical positioning detracted from performance as gains from positioning in equities and commodities were outweighed by losses from positioning across government bond markets.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Allocation Fund (Class A) —including sales charge | 7.75% | 1.77% | 2.91% |
| Invesco Balanced-Risk Allocation Fund (Class A) —excluding sales charge | 14.02% | 2.92% | 3.49% |
| Custom Invesco Balanced Risk Allocation Style Index | 24.08% | 7.40% | 6.71% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P 500® Index to the MSCI ACWI Index (Net) to reflect that the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,146,624,741% |
| Total number of portfolio holdings | $156% |
| Total advisory fees paid | $11,051,413% |
| Portfolio turnover rate | $89% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Equities and Options | 42.68% | 70.69% |
| Fixed Income | 33.33 | 71.88 |
| Commodities | 23.99 | 30.71 |
| Total | 100.00% | 173.28% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Allocation Fund
Class C: ABRCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Allocation Fund
(Class C) | $219 | 2.05%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 13.17%. For the same time period, the Custom Invesco Balanced Risk Allocation Style Index returned 24.08%.
What contributed to performance?
Growth Macro Factor | Strategic exposure to the growth macro factor, achieved through exchange-traded futures, swaps and listed options, was the top contributor to Fund performance with all six equity markets posting gains. US equities outperformed their international counterparts, driven by a resilient economy and, in the case of large caps, optimism around artificial intelligence prospects.
Defensive Macro Factor | Strategic exposure to the defensive macro factor, achieved through exchange-traded futures, contributed to Fund results in aggregate, with gains from Australian, German, Canadian and Japanese government bonds and the defensive factor premia exposure. Central bank policy was the primary driver of performance.
What detracted from performance?
Real Return Macro Factor | Strategic exposure to the real return macro factor, achieved through exchange-traded futures, swaps and commodity-linked notes, detracted from results in aggregate as gains in industrial and precious metals were outweighed by losses in agriculture and energy. Agriculture exposure was the top detractor within the real return macro factor as most agricultural commodities faced pressure from oversupply concerns. Energy exposure detracted from performance amid signs of an economic slowdown.
Tactical positioning | Tactical positioning detracted from performance as gains from positioning in equities and commodities were outweighed by losses from positioning across government bond markets.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Allocation Fund (Class C) —including sales charge | 12.17% | 2.14% | 2.88% |
| Invesco Balanced-Risk Allocation Fund (Class C) —excluding sales charge | 13.17% | 2.14% | 2.88% |
| Custom Invesco Balanced Risk Allocation Style Index | 24.08% | 7.40% | 6.71% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P 500® Index to the MSCI ACWI Index (Net) to reflect that the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,146,624,741% |
| Total number of portfolio holdings | $156% |
| Total advisory fees paid | $11,051,413% |
| Portfolio turnover rate | $89% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Equities and Options | 42.68% | 70.69% |
| Fixed Income | 33.33 | 71.88 |
| Commodities | 23.99 | 30.71 |
| Total | 100.00% | 173.28% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Allocation Fund
Class R: ABRRX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Allocation Fund
(Class R) | $166 | 1.55%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 13.86%. For the same time period, the Custom Invesco Balanced Risk Allocation Style Index returned 24.08%.
What contributed to performance?
Growth Macro Factor | Strategic exposure to the growth macro factor, achieved through exchange-traded futures, swaps and listed options, was the top contributor to Fund performance with all six equity markets posting gains. US equities outperformed their international counterparts, driven by a resilient economy and, in the case of large caps, optimism around artificial intelligence prospects.
Defensive Macro Factor | Strategic exposure to the defensive macro factor, achieved through exchange-traded futures, contributed to Fund results in aggregate, with gains from Australian, German, Canadian and Japanese government bonds and the defensive factor premia exposure. Central bank policy was the primary driver of performance.
What detracted from performance?
Real Return Macro Factor | Strategic exposure to the real return macro factor, achieved through exchange-traded futures, swaps and commodity-linked notes, detracted from results in aggregate as gains in industrial and precious metals were outweighed by losses in agriculture and energy. Agriculture exposure was the top detractor within the real return macro factor as most agricultural commodities faced pressure from oversupply concerns. Energy exposure detracted from performance amid signs of an economic slowdown.
Tactical positioning | Tactical positioning detracted from performance as gains from positioning in equities and commodities were outweighed by losses from positioning across government bond markets.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Allocation Fund (Class R) | 13.86% | 2.66% | 3.23% |
| Custom Invesco Balanced Risk Allocation Style Index | 24.08% | 7.40% | 6.71% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.06% |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P 500® Index to the MSCI ACWI Index (Net) to reflect that the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,146,624,741% |
| Total number of portfolio holdings | $156% |
| Total advisory fees paid | $11,051,413% |
| Portfolio turnover rate | $89% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Equities and Options | 42.68% | 70.69% |
| Fixed Income | 33.33 | 71.88 |
| Commodities | 23.99 | 30.71 |
| Total | 100.00% | 173.28% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Allocation Fund
Class Y: ABRYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Allocation Fund
(Class Y) | $113 | 1.05%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 14.31%. For the same time period, the Custom Invesco Balanced Risk Allocation Style Index returned 24.08%.
What contributed to performance?
Growth Macro Factor | Strategic exposure to the growth macro factor, achieved through exchange-traded futures, swaps and listed options, was the top contributor to Fund performance with all six equity markets posting gains. US equities outperformed their international counterparts, driven by a resilient economy and, in the case of large caps, optimism around artificial intelligence prospects.
Defensive Macro Factor | Strategic exposure to the defensive macro factor, achieved through exchange-traded futures, contributed to Fund results in aggregate, with gains from Australian, German, Canadian and Japanese government bonds and the defensive factor premia exposure. Central bank policy was the primary driver of performance.
What detracted from performance?
Real Return Macro Factor | Strategic exposure to the real return macro factor, achieved through exchange-traded futures, swaps and commodity-linked notes, detracted from results in aggregate as gains in industrial and precious metals were outweighed by losses in agriculture and energy. Agriculture exposure was the top detractor within the real return macro factor as most agricultural commodities faced pressure from oversupply concerns. Energy exposure detracted from performance amid signs of an economic slowdown.
Tactical positioning | Tactical positioning detracted from performance as gains from positioning in equities and commodities were outweighed by losses from positioning across government bond markets.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Allocation Fund (Class Y) | 14.31% | 3.17% | 3.75% |
| Custom Invesco Balanced Risk Allocation Style Index | 24.08% | 7.40% | 6.71% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.06% |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P 500® Index to the MSCI ACWI Index (Net) to reflect that the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,146,624,741% |
| Total number of portfolio holdings | $156% |
| Total advisory fees paid | $11,051,413% |
| Portfolio turnover rate | $89% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Equities and Options | 42.68% | 70.69% |
| Fixed Income | 33.33 | 71.88 |
| Commodities | 23.99 | 30.71 |
| Total | 100.00% | 173.28% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Allocation Fund
Class R5: ABRIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Allocation Fund
(Class R5) | $107 | 1.00%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 14.36%. For the same time period, the Custom Invesco Balanced Risk Allocation Style Index returned 24.08%.
What contributed to performance?
Growth Macro Factor | Strategic exposure to the growth macro factor, achieved through exchange-traded futures, swaps and listed options, was the top contributor to Fund performance with all six equity markets posting gains. US equities outperformed their international counterparts, driven by a resilient economy and, in the case of large caps, optimism around artificial intelligence prospects.
Defensive Macro Factor | Strategic exposure to the defensive macro factor, achieved through exchange-traded futures, contributed to Fund results in aggregate, with gains from Australian, German, Canadian and Japanese government bonds and the defensive factor premia exposure. Central bank policy was the primary driver of performance.
What detracted from performance?
Real Return Macro Factor | Strategic exposure to the real return macro factor, achieved through exchange-traded futures, swaps and commodity-linked notes, detracted from results in aggregate as gains in industrial and precious metals were outweighed by losses in agriculture and energy. Agriculture exposure was the top detractor within the real return macro factor as most agricultural commodities faced pressure from oversupply concerns. Energy exposure detracted from performance amid signs of an economic slowdown.
Tactical positioning | Tactical positioning detracted from performance as gains from positioning in equities and commodities were outweighed by losses from positioning across government bond markets.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Allocation Fund (Class R5) | 14.36% | 3.22% | 3.79% |
| Custom Invesco Balanced Risk Allocation Style Index | 24.08% | 7.40% | 6.71% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.06% |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P 500® Index to the MSCI ACWI Index (Net) to reflect that the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,146,624,741% |
| Total number of portfolio holdings | $156% |
| Total advisory fees paid | $11,051,413% |
| Portfolio turnover rate | $89% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Equities and Options | 42.68% | 70.69% |
| Fixed Income | 33.33 | 71.88 |
| Commodities | 23.99 | 30.71 |
| Total | 100.00% | 173.28% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Allocation Fund
Class R6: ALLFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Allocation Fund
(Class R6) | $102 | 0.95%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 14.39%. For the same time period, the Custom Invesco Balanced Risk Allocation Style Index returned 24.08%.
What contributed to performance?
Growth Macro Factor | Strategic exposure to the growth macro factor, achieved through exchange-traded futures, swaps and listed options, was the top contributor to Fund performance with all six equity markets posting gains. US equities outperformed their international counterparts, driven by a resilient economy and, in the case of large caps, optimism around artificial intelligence prospects.
Defensive Macro Factor | Strategic exposure to the defensive macro factor, achieved through exchange-traded futures, contributed to Fund results in aggregate, with gains from Australian, German, Canadian and Japanese government bonds and the defensive factor premia exposure. Central bank policy was the primary driver of performance.
What detracted from performance?
Real Return Macro Factor | Strategic exposure to the real return macro factor, achieved through exchange-traded futures, swaps and commodity-linked notes, detracted from results in aggregate as gains in industrial and precious metals were outweighed by losses in agriculture and energy. Agriculture exposure was the top detractor within the real return macro factor as most agricultural commodities faced pressure from oversupply concerns. Energy exposure detracted from performance amid signs of an economic slowdown.
Tactical positioning | Tactical positioning detracted from performance as gains from positioning in equities and commodities were outweighed by losses from positioning across government bond markets.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Allocation Fund (Class R6) | 14.39% | 3.27% | 3.86% |
| Custom Invesco Balanced Risk Allocation Style Index | 24.08% | 7.40% | 6.71% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.06% |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P 500® Index to the MSCI ACWI Index (Net) to reflect that the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,146,624,741% |
| Total number of portfolio holdings | $156% |
| Total advisory fees paid | $11,051,413% |
| Portfolio turnover rate | $89% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Equities and Options | 42.68% | 70.69% |
| Fixed Income | 33.33 | 71.88 |
| Commodities | 23.99 | 30.71 |
| Total | 100.00% | 173.28% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Commodity Strategy Fund
Class A: BRCAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Commodity Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Commodity Strategy Fund
(Class A) | $136 | 1.34%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to mixed performance for commodities. Precious and base metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 3.63%. For the same time period, the Bloomberg Commodity Index returned -1.18%.
What contributed to performance?
The Fund’s commodity exposure is achieved primarily through futures and swaps and to a lesser extent commodity-linked securities.
Strategic exposure to metals | The Fund’s strategic metals exposure produced gains in aggregate, with exposure to gold, silver and copper contributing the most to performance. Gold prices rose to multiple all-time highs during the period, driven by ongoing geopolitical tensions, central bank demand, and rising fiscal deficits and debt-to-gross domestic product levels. Silver also performed well due to concerns about future supply and its crossover use in industrial applications. Copper was the other notable contributor during the period, benefiting from China's stimulus policy and undersupply concerns due to growing demand from the transition to green energy and AI data centers.
Tactical positioning | The Fund's tactical positioning added to results during the period as well, driven by timely underweight positions in natural gas and select agricultural commodities (e.g., wheat, corn, cotton).
What detracted from performance?
Strategic exposure to agriculture | The Fund's strategic exposure to agricultural commodities detracted from performance in aggregate due to broad-based losses across the sector. Relatively favorable weather and harvests amid tepid demand led to many agricultural commodities trading lower.
Strategic exposure to energy | The Fund's strategic exposure to energy commodities also detracted from absolute performance. Energy commodities broadly declined during the period on negative economic sentiment and signs of weaker demand.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Commodity Strategy Fund (Class A) —including sales charge | (2.05)% | 6.70%) | 0.95%) |
| Invesco Balanced-Risk Commodity Strategy Fund (Class A) —excluding sales charge | 3.63%) | 7.91%) | 1.52%) |
| Bloomberg Commodity Index | (1.18)% | 6.96%) | (0.08)% |
| Bloomberg Global Aggregate Index | 9.54%) | (1.64)% | 0.23%) |
| MSCI ACWI Index (Net) | 32.79%) | 11.08%) | 9.06%) |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg Commodity Index to the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index to reflect that the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index can be considered more broadly representative of the overall applicable securities markets.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $739,376,315% |
| Total number of portfolio holdings | $46% |
| Total advisory fees paid | $6,085,431% |
| Portfolio turnover rate | $87% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Agriculture | 27.30% | 29.39% |
| Energy | 32.16 | 18.40 |
| Industrial Metals | 26.58 | 23.47 |
| Precious Metals | 13.96 | 18.58 |
| Total | 100.00% | 89.84% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Commodity Strategy Fund
Class C: BRCCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Commodity Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Commodity Strategy Fund
(Class C) | $212 | 2.09%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to mixed performance for commodities. Precious and base metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 2.86%. For the same time period, the Bloomberg Commodity Index returned -1.18%.
What contributed to performance?
The Fund’s commodity exposure is achieved primarily through futures and swaps and to a lesser extent commodity-linked securities.
Strategic exposure to metals | The Fund’s strategic metals exposure produced gains in aggregate, with exposure to gold, silver and copper contributing the most to performance. Gold prices rose to multiple all-time highs during the period, driven by ongoing geopolitical tensions, central bank demand, and rising fiscal deficits and debt-to-gross domestic product levels. Silver also performed well due to concerns about future supply and its crossover use in industrial applications. Copper was the other notable contributor during the period, benefiting from China's stimulus policy and undersupply concerns due to growing demand from the transition to green energy and AI data centers.
Tactical positioning | The Fund's tactical positioning added to results during the period as well, driven by timely underweight positions in natural gas and select agricultural commodities (e.g., wheat, corn, cotton).
What detracted from performance?
Strategic exposure to agriculture | The Fund's strategic exposure to agricultural commodities detracted from performance in aggregate due to broad-based losses across the sector. Relatively favorable weather and harvests amid tepid demand led to many agricultural commodities trading lower.
Strategic exposure to energy | The Fund's strategic exposure to energy commodities also detracted from absolute performance. Energy commodities broadly declined during the period on negative economic sentiment and signs of weaker demand.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Commodity Strategy Fund (Class C) —including sales charge | 1.87%) | 7.08%) | 0.90%) |
| Invesco Balanced-Risk Commodity Strategy Fund (Class C) —excluding sales charge | 2.86%) | 7.08%) | 0.90%) |
| Bloomberg Commodity Index | (1.18)% | 6.96%) | (0.08)% |
| Bloomberg Global Aggregate Index | 9.54%) | (1.64)% | 0.23%) |
| MSCI ACWI Index (Net) | 32.79%) | 11.08%) | 9.06%) |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg Commodity Index to the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index to reflect that the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index can be considered more broadly representative of the overall applicable securities markets.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $739,376,315% |
| Total number of portfolio holdings | $46% |
| Total advisory fees paid | $6,085,431% |
| Portfolio turnover rate | $87% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Agriculture | 27.30% | 29.39% |
| Energy | 32.16 | 18.40 |
| Industrial Metals | 26.58 | 23.47 |
| Precious Metals | 13.96 | 18.58 |
| Total | 100.00% | 89.84% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Commodity Strategy Fund
Class R: BRCRX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Commodity Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Commodity Strategy Fund
(Class R) | $162 | 1.59%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to mixed performance for commodities. Precious and base metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 3.38%. For the same time period, the Bloomberg Commodity Index returned -1.18%.
What contributed to performance?
The Fund’s commodity exposure is achieved primarily through futures and swaps and to a lesser extent commodity-linked securities.
Strategic exposure to metals | The Fund’s strategic metals exposure produced gains in aggregate, with exposure to gold, silver and copper contributing the most to performance. Gold prices rose to multiple all-time highs during the period, driven by ongoing geopolitical tensions, central bank demand, and rising fiscal deficits and debt-to-gross domestic product levels. Silver also performed well due to concerns about future supply and its crossover use in industrial applications. Copper was the other notable contributor during the period, benefiting from China's stimulus policy and undersupply concerns due to growing demand from the transition to green energy and AI data centers.
Tactical positioning | The Fund's tactical positioning added to results during the period as well, driven by timely underweight positions in natural gas and select agricultural commodities (e.g., wheat, corn, cotton).
What detracted from performance?
Strategic exposure to agriculture | The Fund's strategic exposure to agricultural commodities detracted from performance in aggregate due to broad-based losses across the sector. Relatively favorable weather and harvests amid tepid demand led to many agricultural commodities trading lower.
Strategic exposure to energy | The Fund's strategic exposure to energy commodities also detracted from absolute performance. Energy commodities broadly declined during the period on negative economic sentiment and signs of weaker demand.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Commodity Strategy Fund (Class R) | 3.38%) | 7.66%) | 1.29%) |
| Bloomberg Commodity Index | (1.18)% | 6.96%) | (0.08)% |
| Bloomberg Global Aggregate Index | 9.54%) | (1.64)% | 0.23%) |
| MSCI ACWI Index (Net) | 32.79%) | 11.08%) | 9.06%) |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg Commodity Index to the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index to reflect that the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index can be considered more broadly representative of the overall applicable securities markets.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $739,376,315% |
| Total number of portfolio holdings | $46% |
| Total advisory fees paid | $6,085,431% |
| Portfolio turnover rate | $87% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Agriculture | 27.30% | 29.39% |
| Energy | 32.16 | 18.40 |
| Industrial Metals | 26.58 | 23.47 |
| Precious Metals | 13.96 | 18.58 |
| Total | 100.00% | 89.84% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Commodity Strategy Fund
Class Y: BRCYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Commodity Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Commodity Strategy Fund
(Class Y) | $111 | 1.09%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to mixed performance for commodities. Precious and base metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 4.00%. For the same time period, the Bloomberg Commodity Index returned -1.18%.
What contributed to performance?
The Fund’s commodity exposure is achieved primarily through futures and swaps and to a lesser extent commodity-linked securities.
Strategic exposure to metals | The Fund’s strategic metals exposure produced gains in aggregate, with exposure to gold, silver and copper contributing the most to performance. Gold prices rose to multiple all-time highs during the period, driven by ongoing geopolitical tensions, central bank demand, and rising fiscal deficits and debt-to-gross domestic product levels. Silver also performed well due to concerns about future supply and its crossover use in industrial applications. Copper was the other notable contributor during the period, benefiting from China's stimulus policy and undersupply concerns due to growing demand from the transition to green energy and AI data centers.
Tactical positioning | The Fund's tactical positioning added to results during the period as well, driven by timely underweight positions in natural gas and select agricultural commodities (e.g., wheat, corn, cotton).
What detracted from performance?
Strategic exposure to agriculture | The Fund's strategic exposure to agricultural commodities detracted from performance in aggregate due to broad-based losses across the sector. Relatively favorable weather and harvests amid tepid demand led to many agricultural commodities trading lower.
Strategic exposure to energy | The Fund's strategic exposure to energy commodities also detracted from absolute performance. Energy commodities broadly declined during the period on negative economic sentiment and signs of weaker demand.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Commodity Strategy Fund (Class Y) | 4.00%) | 8.18%) | 1.78%) |
| Bloomberg Commodity Index | (1.18)% | 6.96%) | (0.08)% |
| Bloomberg Global Aggregate Index | 9.54%) | (1.64)% | 0.23%) |
| MSCI ACWI Index (Net) | 32.79%) | 11.08%) | 9.06%) |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg Commodity Index to the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index to reflect that the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index can be considered more broadly representative of the overall applicable securities markets.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $739,376,315% |
| Total number of portfolio holdings | $46% |
| Total advisory fees paid | $6,085,431% |
| Portfolio turnover rate | $87% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Agriculture | 27.30% | 29.39% |
| Energy | 32.16 | 18.40 |
| Industrial Metals | 26.58 | 23.47 |
| Precious Metals | 13.96 | 18.58 |
| Total | 100.00% | 89.84% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Commodity Strategy Fund
Class R5: BRCNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Commodity Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Commodity Strategy Fund
(Class R5) | $111 | 1.09%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to mixed performance for commodities. Precious and base metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 3.97%. For the same time period, the Bloomberg Commodity Index returned -1.18%.
What contributed to performance?
The Fund’s commodity exposure is achieved primarily through futures and swaps and to a lesser extent commodity-linked securities.
Strategic exposure to metals | The Fund’s strategic metals exposure produced gains in aggregate, with exposure to gold, silver and copper contributing the most to performance. Gold prices rose to multiple all-time highs during the period, driven by ongoing geopolitical tensions, central bank demand, and rising fiscal deficits and debt-to-gross domestic product levels. Silver also performed well due to concerns about future supply and its crossover use in industrial applications. Copper was the other notable contributor during the period, benefiting from China's stimulus policy and undersupply concerns due to growing demand from the transition to green energy and AI data centers.
Tactical positioning | The Fund's tactical positioning added to results during the period as well, driven by timely underweight positions in natural gas and select agricultural commodities (e.g., wheat, corn, cotton).
What detracted from performance?
Strategic exposure to agriculture | The Fund's strategic exposure to agricultural commodities detracted from performance in aggregate due to broad-based losses across the sector. Relatively favorable weather and harvests amid tepid demand led to many agricultural commodities trading lower.
Strategic exposure to energy | The Fund's strategic exposure to energy commodities also detracted from absolute performance. Energy commodities broadly declined during the period on negative economic sentiment and signs of weaker demand.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Commodity Strategy Fund (Class R5) | 3.97%) | 8.20%) | 1.83%) |
| Bloomberg Commodity Index | (1.18)% | 6.96%) | (0.08)% |
| Bloomberg Global Aggregate Index | 9.54%) | (1.64)% | 0.23%) |
| MSCI ACWI Index (Net) | 32.79%) | 11.08%) | 9.06%) |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg Commodity Index to the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index to reflect that the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index can be considered more broadly representative of the overall applicable securities markets.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $739,376,315% |
| Total number of portfolio holdings | $46% |
| Total advisory fees paid | $6,085,431% |
| Portfolio turnover rate | $87% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Agriculture | 27.30% | 29.39% |
| Energy | 32.16 | 18.40 |
| Industrial Metals | 26.58 | 23.47 |
| Precious Metals | 13.96 | 18.58 |
| Total | 100.00% | 89.84% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Balanced-Risk Commodity Strategy Fund
Class R6: IBRFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Balanced-Risk Commodity Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Balanced-Risk Commodity Strategy Fund
(Class R6) | $111 | 1.09%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to mixed performance for commodities. Precious and base metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 3.82%. For the same time period, the Bloomberg Commodity Index returned -1.18%.
What contributed to performance?
The Fund’s commodity exposure is achieved primarily through futures and swaps and to a lesser extent commodity-linked securities.
Strategic exposure to metals | The Fund’s strategic metals exposure produced gains in aggregate, with exposure to gold, silver and copper contributing the most to performance. Gold prices rose to multiple all-time highs during the period, driven by ongoing geopolitical tensions, central bank demand, and rising fiscal deficits and debt-to-gross domestic product levels. Silver also performed well due to concerns about future supply and its crossover use in industrial applications. Copper was the other notable contributor during the period, benefiting from China's stimulus policy and undersupply concerns due to growing demand from the transition to green energy and AI data centers.
Tactical positioning | The Fund's tactical positioning added to results during the period as well, driven by timely underweight positions in natural gas and select agricultural commodities (e.g., wheat, corn, cotton).
What detracted from performance?
Strategic exposure to agriculture | The Fund's strategic exposure to agricultural commodities detracted from performance in aggregate due to broad-based losses across the sector. Relatively favorable weather and harvests amid tepid demand led to many agricultural commodities trading lower.
Strategic exposure to energy | The Fund's strategic exposure to energy commodities also detracted from absolute performance. Energy commodities broadly declined during the period on negative economic sentiment and signs of weaker demand.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Balanced-Risk Commodity Strategy Fund (Class R6) | 3.82%) | 8.16%) | 1.86%) |
| Bloomberg Commodity Index | (1.18)% | 6.96%) | (0.08)% |
| Bloomberg Global Aggregate Index | 9.54%) | (1.64)% | 0.23%) |
| MSCI ACWI Index (Net) | 32.79%) | 11.08%) | 9.06%) |
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg Commodity Index to the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index to reflect that the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate Index can be considered more broadly representative of the overall applicable securities markets.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $739,376,315% |
| Total number of portfolio holdings | $46% |
| Total advisory fees paid | $6,085,431% |
| Portfolio turnover rate | $87% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Target risk contribution and
notional asset weights
| Asset Class | Target Risk Contribution* | Notional Asset Exposure Weights** |
| Agriculture | 27.30% | 29.39% |
| Energy | 32.16 | 18.40 |
| Industrial Metals | 26.58 | 23.47 |
| Precious Metals | 13.96 | 18.58 |
| Total | 100.00% | 89.84% |
* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns.
** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. | | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Core Bond Fund
Class A: OPIGX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Core Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Core Bond Fund
(Class A) | $72 | 0.68%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year, the bond market benefited from a continuing disinflation trend and resilient economic growth supporting corporate fundamentals and leading to tightening credit spreads. Additionally, despite continued volatility, treasury yields moved broadly lower supporting absolute returns for fixed income. The Fund benefited from both interest rate sensitivity in a declining yield environment and tightening credit spreads.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 11.71%. For the same time period, the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
Banking sub-sector | Security selection in the financial institutions sector, particularly in the banking sub-sector, contributed to relative performance. Strong corporate fundamentals anchored US investment grade credit, the yield backdrop appeared attractive, and a lower average dollar price of bonds across the index presented discounted buying opportunities, and enhanced downside protection for bondholders.
Consumer non-cyclical sub-sector | Security selection in the consumer non-cyclical sector, particularly in the healthcare and pharmaceuticals sub-sectors, positively affected relative performance. Increased merger and acquisition activity helped drive performance.
What detracted from performance?
Basic industry sub-sector | A slight underweight and security selection in the basic-industry sub-sector detracted from relative performance. Corporate fundamentals for the sector remain firm.
Technology, media, and telecom sub-sector | A slight underweight to technology, media and telecom corporate bonds detracted from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Core Bond Fund (Class A) —including sales charge | 6.87% | (0.95)% | 1.14% |
| Invesco Core Bond Fund (Class A) —excluding sales charge | 11.71% | (0.09)% | 1.59% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
| Bloomberg U.S. Credit Index | 13.07% | 0.46%) | 2.43% |
| FTSE Broad Investment Grade Bond Index | 10.72% | (0.23)% | 1.50% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Total Return Bond Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,876,901,877% |
| Total number of portfolio holdings | $1,248% |
| Total advisory fees paid | $6,670,043% |
| Portfolio turnover rate | $565% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| U.S. Treasury Bonds, 4.63%, 05/15/2054 | 4.84% |
| Uniform Mortgage-Backed Securities, TBA, 5.00%, 11/01/2054 | 4.41% |
| Uniform Mortgage-Backed Securities, TBA, 5.50%, 11/01/2054 | 3.95% |
| U.S. Treasury Notes, 3.50%, 09/30/2026 | 3.83% |
| Uniform Mortgage-Backed Securities, TBA, 3.00%, 11/01/2054 | 3.38% |
| U.S. Treasury Notes, 3.50%, 09/30/2029 | 2.58% |
| Uniform Mortgage-Backed Securities, TBA, 2.50%, 11/01/2054 | 2.54% |
| Uniform Mortgage-Backed Securities, TBA, 4.50%, 11/01/2054 | 2.43% |
| Government National Mortgage Association, TBA, 2.50%, 11/01/2054 | 2.05% |
| Uniform Mortgage-Backed Securities, TBA, 4.00%, 11/01/2054 | 1.94% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Core Bond Fund
Class C: OPBCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Core Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Core Bond Fund
(Class C) | $151 | 1.43%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year, the bond market benefited from a continuing disinflation trend and resilient economic growth supporting corporate fundamentals and leading to tightening credit spreads. Additionally, despite continued volatility, treasury yields moved broadly lower supporting absolute returns for fixed income. The Fund benefited from both interest rate sensitivity in a declining yield environment and tightening credit spreads.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 10.88%. For the same time period, the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
Banking sub-sector | Security selection in the financial institutions sector, particularly in the banking sub-sector, contributed to relative performance. Strong corporate fundamentals anchored US investment grade credit, the yield backdrop appeared attractive, and a lower average dollar price of bonds across the index presented discounted buying opportunities, and enhanced downside protection for bondholders.
Consumer non-cyclical sub-sector | Security selection in the consumer non-cyclical sector, particularly in the healthcare and pharmaceuticals sub-sectors, positively affected relative performance. Increased merger and acquisition activity helped drive performance.
What detracted from performance?
Basic industry sub-sector | A slight underweight and security selection in the basic-industry sub-sector detracted from relative performance. Corporate fundamentals for the sector remain firm.
Technology, media, and telecom sub-sector | A slight underweight to technology, media and telecom corporate bonds detracted from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Core Bond Fund (Class C) —including sales charge | 9.88% | (0.82)% | 0.93% |
| Invesco Core Bond Fund (Class C) —excluding sales charge | 10.88% | (0.82)%) | 0.93% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
| Bloomberg U.S. Credit Index | 13.07% | 0.46%) | 2.43% |
| FTSE Broad Investment Grade Bond Index | 10.72% | (0.23)% | 1.50% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Total Return Bond Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,876,901,877% |
| Total number of portfolio holdings | $1,248% |
| Total advisory fees paid | $6,670,043% |
| Portfolio turnover rate | $565% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| U.S. Treasury Bonds, 4.63%, 05/15/2054 | 4.84% |
| Uniform Mortgage-Backed Securities, TBA, 5.00%, 11/01/2054 | 4.41% |
| Uniform Mortgage-Backed Securities, TBA, 5.50%, 11/01/2054 | 3.95% |
| U.S. Treasury Notes, 3.50%, 09/30/2026 | 3.83% |
| Uniform Mortgage-Backed Securities, TBA, 3.00%, 11/01/2054 | 3.38% |
| U.S. Treasury Notes, 3.50%, 09/30/2029 | 2.58% |
| Uniform Mortgage-Backed Securities, TBA, 2.50%, 11/01/2054 | 2.54% |
| Uniform Mortgage-Backed Securities, TBA, 4.50%, 11/01/2054 | 2.43% |
| Government National Mortgage Association, TBA, 2.50%, 11/01/2054 | 2.05% |
| Uniform Mortgage-Backed Securities, TBA, 4.00%, 11/01/2054 | 1.94% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Core Bond Fund
Class R: OPBNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Core Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Core Bond Fund
(Class R) | $98 | 0.93%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year, the bond market benefited from a continuing disinflation trend and resilient economic growth supporting corporate fundamentals and leading to tightening credit spreads. Additionally, despite continued volatility, treasury yields moved broadly lower supporting absolute returns for fixed income. The Fund benefited from both interest rate sensitivity in a declining yield environment and tightening credit spreads.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 11.44%. For the same time period, the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
Banking sub-sector | Security selection in the financial institutions sector, particularly in the banking sub-sector, contributed to relative performance. Strong corporate fundamentals anchored US investment grade credit, the yield backdrop appeared attractive, and a lower average dollar price of bonds across the index presented discounted buying opportunities, and enhanced downside protection for bondholders.
Consumer non-cyclical sub-sector | Security selection in the consumer non-cyclical sector, particularly in the healthcare and pharmaceuticals sub-sectors, positively affected relative performance. Increased merger and acquisition activity helped drive performance.
What detracted from performance?
Basic industry sub-sector | A slight underweight and security selection in the basic-industry sub-sector detracted from relative performance. Corporate fundamentals for the sector remain firm.
Technology, media, and telecom sub-sector | A slight underweight to technology, media and telecom corporate bonds detracted from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Core Bond Fund (Class R) | 11.44% | (0.35)% | 1.30% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
| Bloomberg U.S. Credit Index | 13.07% | 0.46%) | 2.43% |
| FTSE Broad Investment Grade Bond Index | 10.72% | (0.23)% | 1.50% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Total Return Bond Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,876,901,877% |
| Total number of portfolio holdings | $1,248% |
| Total advisory fees paid | $6,670,043% |
| Portfolio turnover rate | $565% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| U.S. Treasury Bonds, 4.63%, 05/15/2054 | 4.84% |
| Uniform Mortgage-Backed Securities, TBA, 5.00%, 11/01/2054 | 4.41% |
| Uniform Mortgage-Backed Securities, TBA, 5.50%, 11/01/2054 | 3.95% |
| U.S. Treasury Notes, 3.50%, 09/30/2026 | 3.83% |
| Uniform Mortgage-Backed Securities, TBA, 3.00%, 11/01/2054 | 3.38% |
| U.S. Treasury Notes, 3.50%, 09/30/2029 | 2.58% |
| Uniform Mortgage-Backed Securities, TBA, 2.50%, 11/01/2054 | 2.54% |
| Uniform Mortgage-Backed Securities, TBA, 4.50%, 11/01/2054 | 2.43% |
| Government National Mortgage Association, TBA, 2.50%, 11/01/2054 | 2.05% |
| Uniform Mortgage-Backed Securities, TBA, 4.00%, 11/01/2054 | 1.94% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Core Bond Fund
Class Y: OPBYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Core Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Core Bond Fund
(Class Y) | $46 | 0.43%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year, the bond market benefited from a continuing disinflation trend and resilient economic growth supporting corporate fundamentals and leading to tightening credit spreads. Additionally, despite continued volatility, treasury yields moved broadly lower supporting absolute returns for fixed income. The Fund benefited from both interest rate sensitivity in a declining yield environment and tightening credit spreads.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 12.03%. For the same time period, the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
Banking sub-sector | Security selection in the financial institutions sector, particularly in the banking sub-sector, contributed to relative performance. Strong corporate fundamentals anchored US investment grade credit, the yield backdrop appeared attractive, and a lower average dollar price of bonds across the index presented discounted buying opportunities, and enhanced downside protection for bondholders.
Consumer non-cyclical sub-sector | Security selection in the consumer non-cyclical sector, particularly in the healthcare and pharmaceuticals sub-sectors, positively affected relative performance. Increased merger and acquisition activity helped drive performance.
What detracted from performance?
Basic industry sub-sector | A slight underweight and security selection in the basic-industry sub-sector detracted from relative performance. Corporate fundamentals for the sector remain firm.
Technology, media, and telecom sub-sector | A slight underweight to technology, media and telecom corporate bonds detracted from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Core Bond Fund (Class Y) | 12.03% | 0.20%) | 1.87% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
| Bloomberg U.S. Credit Index | 13.07% | 0.46%) | 2.43% |
| FTSE Broad Investment Grade Bond Index | 10.72% | (0.23)% | 1.50% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Total Return Bond Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,876,901,877% |
| Total number of portfolio holdings | $1,248% |
| Total advisory fees paid | $6,670,043% |
| Portfolio turnover rate | $565% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| U.S. Treasury Bonds, 4.63%, 05/15/2054 | 4.84% |
| Uniform Mortgage-Backed Securities, TBA, 5.00%, 11/01/2054 | 4.41% |
| Uniform Mortgage-Backed Securities, TBA, 5.50%, 11/01/2054 | 3.95% |
| U.S. Treasury Notes, 3.50%, 09/30/2026 | 3.83% |
| Uniform Mortgage-Backed Securities, TBA, 3.00%, 11/01/2054 | 3.38% |
| U.S. Treasury Notes, 3.50%, 09/30/2029 | 2.58% |
| Uniform Mortgage-Backed Securities, TBA, 2.50%, 11/01/2054 | 2.54% |
| Uniform Mortgage-Backed Securities, TBA, 4.50%, 11/01/2054 | 2.43% |
| Government National Mortgage Association, TBA, 2.50%, 11/01/2054 | 2.05% |
| Uniform Mortgage-Backed Securities, TBA, 4.00%, 11/01/2054 | 1.94% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Core Bond Fund
Class R5: TRTMX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Core Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Core Bond Fund
(Class R5) | $43 | 0.41%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year, the bond market benefited from a continuing disinflation trend and resilient economic growth supporting corporate fundamentals and leading to tightening credit spreads. Additionally, despite continued volatility, treasury yields moved broadly lower supporting absolute returns for fixed income. The Fund benefited from both interest rate sensitivity in a declining yield environment and tightening credit spreads.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 12.00%. For the same time period, the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
Banking sub-sector | Security selection in the financial institutions sector, particularly in the banking sub-sector, contributed to relative performance. Strong corporate fundamentals anchored US investment grade credit, the yield backdrop appeared attractive, and a lower average dollar price of bonds across the index presented discounted buying opportunities, and enhanced downside protection for bondholders.
Consumer non-cyclical sub-sector | Security selection in the consumer non-cyclical sector, particularly in the healthcare and pharmaceuticals sub-sectors, positively affected relative performance. Increased merger and acquisition activity helped drive performance.
What detracted from performance?
Basic industry sub-sector | A slight underweight and security selection in the basic-industry sub-sector detracted from relative performance. Corporate fundamentals for the sector remain firm.
Technology, media, and telecom sub-sector | A slight underweight to technology, media and telecom corporate bonds detracted from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Core Bond Fund (Class R5) | 12.00% | 0.20%) | 1.74% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
| Bloomberg U.S. Credit Index | 13.07% | 0.46%) | 2.43% |
| FTSE Broad Investment Grade Bond Index | 10.72% | (0.23)% | 1.50% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Total Return Bond Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,876,901,877% |
| Total number of portfolio holdings | $1,248% |
| Total advisory fees paid | $6,670,043% |
| Portfolio turnover rate | $565% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| U.S. Treasury Bonds, 4.63%, 05/15/2054 | 4.84% |
| Uniform Mortgage-Backed Securities, TBA, 5.00%, 11/01/2054 | 4.41% |
| Uniform Mortgage-Backed Securities, TBA, 5.50%, 11/01/2054 | 3.95% |
| U.S. Treasury Notes, 3.50%, 09/30/2026 | 3.83% |
| Uniform Mortgage-Backed Securities, TBA, 3.00%, 11/01/2054 | 3.38% |
| U.S. Treasury Notes, 3.50%, 09/30/2029 | 2.58% |
| Uniform Mortgage-Backed Securities, TBA, 2.50%, 11/01/2054 | 2.54% |
| Uniform Mortgage-Backed Securities, TBA, 4.50%, 11/01/2054 | 2.43% |
| Government National Mortgage Association, TBA, 2.50%, 11/01/2054 | 2.05% |
| Uniform Mortgage-Backed Securities, TBA, 4.00%, 11/01/2054 | 1.94% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Core Bond Fund
Class R6: OPBIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Core Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Core Bond Fund
(Class R6) | $40 | 0.38%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year, the bond market benefited from a continuing disinflation trend and resilient economic growth supporting corporate fundamentals and leading to tightening credit spreads. Additionally, despite continued volatility, treasury yields moved broadly lower supporting absolute returns for fixed income. The Fund benefited from both interest rate sensitivity in a declining yield environment and tightening credit spreads.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 12.04%. For the same time period, the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
Banking sub-sector | Security selection in the financial institutions sector, particularly in the banking sub-sector, contributed to relative performance. Strong corporate fundamentals anchored US investment grade credit, the yield backdrop appeared attractive, and a lower average dollar price of bonds across the index presented discounted buying opportunities, and enhanced downside protection for bondholders.
Consumer non-cyclical sub-sector | Security selection in the consumer non-cyclical sector, particularly in the healthcare and pharmaceuticals sub-sectors, positively affected relative performance. Increased merger and acquisition activity helped drive performance.
What detracted from performance?
Basic industry sub-sector | A slight underweight and security selection in the basic-industry sub-sector detracted from relative performance. Corporate fundamentals for the sector remain firm.
Technology, media, and telecom sub-sector | A slight underweight to technology, media and telecom corporate bonds detracted from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Core Bond Fund (Class R6) | 12.04% | 0.26%) | 1.93% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
| Bloomberg U.S. Credit Index | 13.07% | 0.46%) | 2.43% |
| FTSE Broad Investment Grade Bond Index | 10.72% | (0.23)% | 1.50% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Total Return Bond Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,876,901,877% |
| Total number of portfolio holdings | $1,248% |
| Total advisory fees paid | $6,670,043% |
| Portfolio turnover rate | $565% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| U.S. Treasury Bonds, 4.63%, 05/15/2054 | 4.84% |
| Uniform Mortgage-Backed Securities, TBA, 5.00%, 11/01/2054 | 4.41% |
| Uniform Mortgage-Backed Securities, TBA, 5.50%, 11/01/2054 | 3.95% |
| U.S. Treasury Notes, 3.50%, 09/30/2026 | 3.83% |
| Uniform Mortgage-Backed Securities, TBA, 3.00%, 11/01/2054 | 3.38% |
| U.S. Treasury Notes, 3.50%, 09/30/2029 | 2.58% |
| Uniform Mortgage-Backed Securities, TBA, 2.50%, 11/01/2054 | 2.54% |
| Uniform Mortgage-Backed Securities, TBA, 4.50%, 11/01/2054 | 2.43% |
| Government National Mortgage Association, TBA, 2.50%, 11/01/2054 | 2.05% |
| Uniform Mortgage-Backed Securities, TBA, 4.00%, 11/01/2054 | 1.94% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Developing Markets Fund
Class A: ODMAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Developing Markets Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Developing Markets Fund
(Class A) | $136 | 1.28% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market (EM) equities delivered positive performance, up 25.32% for the period, outperforming developed international markets while underperforming global and US equities. Strong EM equity performance, as measured by the MSCI Emerging Markets Index, was driven by returns in Taiwan, India and China. China – EM’s largest economy - delivered a clear tone in September 2024 of its support for economic growth, evidencing a more decisive turn in its policy direction.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 12.89%. For the same time period, the MSCI Emerging Markets Index returned 25.32%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) | One of the world’s leading semiconductor foundries and a key enabler of the new computing revolution, with multiple architectures, chip platforms and design teams competing to push computing and artificial intelligence (AI) innovation. We believe TSMC should be well positioned, as they continued migrating to next generation processing nodes led by inventory restocking, strong AI demand and rapid expansion. The company delivered solid results, with sales up 33% year-over-year and increased fiscal year guidance as they indicated that they expect to see faster sales growth, even with flat consumer-electronics demand, based on a number of positive levers.
Grupo Mexico S.A.B. de C.V. | A diversified mining company based in Mexico that boasts a portfolio of unique assets, including the fourth largest copper mine in the world. Globally, Grupo Mexico has the largest proven copper reserves, which could allow them to maintain current production levels for decades without significant exploration effort. The stock rallied in the second half of April on the back of positive copper market fundamentals and higher production guidance.
What detracted from performance?
Yum China Holdings, Inc. | Yum China operates a portfolio of quick serve restaurants in the underpenetrated Chinese market with notable brands such as KFC and Pizza Hut. China macro and consumption recovery have been bumpy resulting in downward pressure on same store sales growth leading to a further pullback in the stock in the second quarter.
Pernod Ricard S.A. | A global leader in wines and spirits selling premium brands in over 160 countries. Pernod’s strong distribution network expansion has helped it to penetrate China and India, two high-potential markets. However, Pernod has not been immune to global macro headwinds in its key markets and, as a result, consensus earnings estimates have come down which put pressure on the stock price, during the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Developing Markets Fund (Class A) —including sales charge | 6.68% | (1.18)% | 0.86% |
| Invesco Developing Markets Fund (Class A) —excluding sales charge | 12.89% | (0.06)% | 1.43% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93%) | 3.43% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Developing Markets Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $18,628,711,037% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $167,279,629% |
| Portfolio turnover rate | $43% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 12.38% |
| Tencent Holdings Ltd. | 5.39% |
| H World Group Ltd., ADR | 4.86% |
| Kotak Mahindra Bank Ltd. | 4.75% |
| Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 3.29% |
| Meituan, B Shares | 3.23% |
| Alibaba Group Holding Ltd., ADR | 3.13% |
| Samsung Electronics Co. Ltd. | 3.12% |
| HDFC Bank Ltd. | 3.11% |
| Grupo Mexico S.A.B. de C.V., Class B | 2.45% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Developing Markets Fund
Class C: ODVCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Developing Markets Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Developing Markets Fund
(Class C) | $215 | 2.03% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market (EM) equities delivered positive performance, up 25.32% for the period, outperforming developed international markets while underperforming global and US equities. Strong EM equity performance, as measured by the MSCI Emerging Markets Index, was driven by returns in Taiwan, India and China. China – EM’s largest economy - delivered a clear tone in September 2024 of its support for economic growth, evidencing a more decisive turn in its policy direction.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 12.00%. For the same time period, the MSCI Emerging Markets Index returned 25.32%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) | One of the world’s leading semiconductor foundries and a key enabler of the new computing revolution, with multiple architectures, chip platforms and design teams competing to push computing and artificial intelligence (AI) innovation. We believe TSMC should be well positioned, as they continued migrating to next generation processing nodes led by inventory restocking, strong AI demand and rapid expansion. The company delivered solid results, with sales up 33% year-over-year and increased fiscal year guidance as they indicated that they expect to see faster sales growth, even with flat consumer-electronics demand, based on a number of positive levers.
Grupo Mexico S.A.B. de C.V. | A diversified mining company based in Mexico that boasts a portfolio of unique assets, including the fourth largest copper mine in the world. Globally, Grupo Mexico has the largest proven copper reserves, which could allow them to maintain current production levels for decades without significant exploration effort. The stock rallied in the second half of April on the back of positive copper market fundamentals and higher production guidance.
What detracted from performance?
Yum China Holdings, Inc. | Yum China operates a portfolio of quick serve restaurants in the underpenetrated Chinese market with notable brands such as KFC and Pizza Hut. China macro and consumption recovery have been bumpy resulting in downward pressure on same store sales growth leading to a further pullback in the stock in the second quarter.
Pernod Ricard S.A. | A global leader in wines and spirits selling premium brands in over 160 countries. Pernod’s strong distribution network expansion has helped it to penetrate China and India, two high-potential markets. However, Pernod has not been immune to global macro headwinds in its key markets and, as a result, consensus earnings estimates have come down which put pressure on the stock price, during the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Developing Markets Fund (Class C) —including sales charge | 11.00% | (0.81)% | 0.82% |
| Invesco Developing Markets Fund (Class C) —excluding sales charge | 12.00% | (0.81)% | 0.82% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93%) | 3.43% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Developing Markets Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $18,628,711,037% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $167,279,629% |
| Portfolio turnover rate | $43% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 12.38% |
| Tencent Holdings Ltd. | 5.39% |
| H World Group Ltd., ADR | 4.86% |
| Kotak Mahindra Bank Ltd. | 4.75% |
| Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 3.29% |
| Meituan, B Shares | 3.23% |
| Alibaba Group Holding Ltd., ADR | 3.13% |
| Samsung Electronics Co. Ltd. | 3.12% |
| HDFC Bank Ltd. | 3.11% |
| Grupo Mexico S.A.B. de C.V., Class B | 2.45% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Developing Markets Fund
Class R: ODVNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Developing Markets Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Developing Markets Fund
(Class R) | $163 | 1.53% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market (EM) equities delivered positive performance, up 25.32% for the period, outperforming developed international markets while underperforming global and US equities. Strong EM equity performance, as measured by the MSCI Emerging Markets Index, was driven by returns in Taiwan, India and China. China – EM’s largest economy - delivered a clear tone in September 2024 of its support for economic growth, evidencing a more decisive turn in its policy direction.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 12.60%. For the same time period, the MSCI Emerging Markets Index returned 25.32%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) | One of the world’s leading semiconductor foundries and a key enabler of the new computing revolution, with multiple architectures, chip platforms and design teams competing to push computing and artificial intelligence (AI) innovation. We believe TSMC should be well positioned, as they continued migrating to next generation processing nodes led by inventory restocking, strong AI demand and rapid expansion. The company delivered solid results, with sales up 33% year-over-year and increased fiscal year guidance as they indicated that they expect to see faster sales growth, even with flat consumer-electronics demand, based on a number of positive levers.
Grupo Mexico S.A.B. de C.V. | A diversified mining company based in Mexico that boasts a portfolio of unique assets, including the fourth largest copper mine in the world. Globally, Grupo Mexico has the largest proven copper reserves, which could allow them to maintain current production levels for decades without significant exploration effort. The stock rallied in the second half of April on the back of positive copper market fundamentals and higher production guidance.
What detracted from performance?
Yum China Holdings, Inc. | Yum China operates a portfolio of quick serve restaurants in the underpenetrated Chinese market with notable brands such as KFC and Pizza Hut. China macro and consumption recovery have been bumpy resulting in downward pressure on same store sales growth leading to a further pullback in the stock in the second quarter.
Pernod Ricard S.A. | A global leader in wines and spirits selling premium brands in over 160 countries. Pernod’s strong distribution network expansion has helped it to penetrate China and India, two high-potential markets. However, Pernod has not been immune to global macro headwinds in its key markets and, as a result, consensus earnings estimates have come down which put pressure on the stock price, during the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Developing Markets Fund (Class R) | 12.60% | (0.31)% | 1.17% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93%) | 3.43% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Developing Markets Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $18,628,711,037% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $167,279,629% |
| Portfolio turnover rate | $43% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 12.38% |
| Tencent Holdings Ltd. | 5.39% |
| H World Group Ltd., ADR | 4.86% |
| Kotak Mahindra Bank Ltd. | 4.75% |
| Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 3.29% |
| Meituan, B Shares | 3.23% |
| Alibaba Group Holding Ltd., ADR | 3.13% |
| Samsung Electronics Co. Ltd. | 3.12% |
| HDFC Bank Ltd. | 3.11% |
| Grupo Mexico S.A.B. de C.V., Class B | 2.45% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Developing Markets Fund
Class Y: ODVYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Developing Markets Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Developing Markets Fund
(Class Y) | $110 | 1.03% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market (EM) equities delivered positive performance, up 25.32% for the period, outperforming developed international markets while underperforming global and US equities. Strong EM equity performance, as measured by the MSCI Emerging Markets Index, was driven by returns in Taiwan, India and China. China – EM’s largest economy - delivered a clear tone in September 2024 of its support for economic growth, evidencing a more decisive turn in its policy direction.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 13.17%. For the same time period, the MSCI Emerging Markets Index returned 25.32%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) | One of the world’s leading semiconductor foundries and a key enabler of the new computing revolution, with multiple architectures, chip platforms and design teams competing to push computing and artificial intelligence (AI) innovation. We believe TSMC should be well positioned, as they continued migrating to next generation processing nodes led by inventory restocking, strong AI demand and rapid expansion. The company delivered solid results, with sales up 33% year-over-year and increased fiscal year guidance as they indicated that they expect to see faster sales growth, even with flat consumer-electronics demand, based on a number of positive levers.
Grupo Mexico S.A.B. de C.V. | A diversified mining company based in Mexico that boasts a portfolio of unique assets, including the fourth largest copper mine in the world. Globally, Grupo Mexico has the largest proven copper reserves, which could allow them to maintain current production levels for decades without significant exploration effort. The stock rallied in the second half of April on the back of positive copper market fundamentals and higher production guidance.
What detracted from performance?
Yum China Holdings, Inc. | Yum China operates a portfolio of quick serve restaurants in the underpenetrated Chinese market with notable brands such as KFC and Pizza Hut. China macro and consumption recovery have been bumpy resulting in downward pressure on same store sales growth leading to a further pullback in the stock in the second quarter.
Pernod Ricard S.A. | A global leader in wines and spirits selling premium brands in over 160 countries. Pernod’s strong distribution network expansion has helped it to penetrate China and India, two high-potential markets. However, Pernod has not been immune to global macro headwinds in its key markets and, as a result, consensus earnings estimates have come down which put pressure on the stock price, during the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Developing Markets Fund (Class Y) | 13.17% | 0.19% | 1.68% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Developing Markets Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $18,628,711,037% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $167,279,629% |
| Portfolio turnover rate | $43% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 12.38% |
| Tencent Holdings Ltd. | 5.39% |
| H World Group Ltd., ADR | 4.86% |
| Kotak Mahindra Bank Ltd. | 4.75% |
| Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 3.29% |
| Meituan, B Shares | 3.23% |
| Alibaba Group Holding Ltd., ADR | 3.13% |
| Samsung Electronics Co. Ltd. | 3.12% |
| HDFC Bank Ltd. | 3.11% |
| Grupo Mexico S.A.B. de C.V., Class B | 2.45% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Developing Markets Fund
Class R5: DVMFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Developing Markets Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Developing Markets Fund
(Class R5) | $101 | 0.95% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market (EM) equities delivered positive performance, up 25.32% for the period, outperforming developed international markets while underperforming global and US equities. Strong EM equity performance, as measured by the MSCI Emerging Markets Index, was driven by returns in Taiwan, India and China. China – EM’s largest economy - delivered a clear tone in September 2024 of its support for economic growth, evidencing a more decisive turn in its policy direction.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 13.25%. For the same time period, the MSCI Emerging Markets Index returned 25.32%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) | One of the world’s leading semiconductor foundries and a key enabler of the new computing revolution, with multiple architectures, chip platforms and design teams competing to push computing and artificial intelligence (AI) innovation. We believe TSMC should be well positioned, as they continued migrating to next generation processing nodes led by inventory restocking, strong AI demand and rapid expansion. The company delivered solid results, with sales up 33% year-over-year and increased fiscal year guidance as they indicated that they expect to see faster sales growth, even with flat consumer-electronics demand, based on a number of positive levers.
Grupo Mexico S.A.B. de C.V. | A diversified mining company based in Mexico that boasts a portfolio of unique assets, including the fourth largest copper mine in the world. Globally, Grupo Mexico has the largest proven copper reserves, which could allow them to maintain current production levels for decades without significant exploration effort. The stock rallied in the second half of April on the back of positive copper market fundamentals and higher production guidance.
What detracted from performance?
Yum China Holdings, Inc. | Yum China operates a portfolio of quick serve restaurants in the underpenetrated Chinese market with notable brands such as KFC and Pizza Hut. China macro and consumption recovery have been bumpy resulting in downward pressure on same store sales growth leading to a further pullback in the stock in the second quarter.
Pernod Ricard S.A. | A global leader in wines and spirits selling premium brands in over 160 countries. Pernod’s strong distribution network expansion has helped it to penetrate China and India, two high-potential markets. However, Pernod has not been immune to global macro headwinds in its key markets and, as a result, consensus earnings estimates have come down which put pressure on the stock price, during the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Developing Markets Fund (Class R5) | 13.25% | 0.30% | 1.62% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Developing Markets Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $18,628,711,037% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $167,279,629% |
| Portfolio turnover rate | $43% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 12.38% |
| Tencent Holdings Ltd. | 5.39% |
| H World Group Ltd., ADR | 4.86% |
| Kotak Mahindra Bank Ltd. | 4.75% |
| Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 3.29% |
| Meituan, B Shares | 3.23% |
| Alibaba Group Holding Ltd., ADR | 3.13% |
| Samsung Electronics Co. Ltd. | 3.12% |
| HDFC Bank Ltd. | 3.11% |
| Grupo Mexico S.A.B. de C.V., Class B | 2.45% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Developing Markets Fund
Class R6: ODVIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Developing Markets Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Developing Markets Fund
(Class R6) | $94 | 0.88% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market (EM) equities delivered positive performance, up 25.32% for the period, outperforming developed international markets while underperforming global and US equities. Strong EM equity performance, as measured by the MSCI Emerging Markets Index, was driven by returns in Taiwan, India and China. China – EM’s largest economy - delivered a clear tone in September 2024 of its support for economic growth, evidencing a more decisive turn in its policy direction.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 13.33%. For the same time period, the MSCI Emerging Markets Index returned 25.32%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) | One of the world’s leading semiconductor foundries and a key enabler of the new computing revolution, with multiple architectures, chip platforms and design teams competing to push computing and artificial intelligence (AI) innovation. We believe TSMC should be well positioned, as they continued migrating to next generation processing nodes led by inventory restocking, strong AI demand and rapid expansion. The company delivered solid results, with sales up 33% year-over-year and increased fiscal year guidance as they indicated that they expect to see faster sales growth, even with flat consumer-electronics demand, based on a number of positive levers.
Grupo Mexico S.A.B. de C.V. | A diversified mining company based in Mexico that boasts a portfolio of unique assets, including the fourth largest copper mine in the world. Globally, Grupo Mexico has the largest proven copper reserves, which could allow them to maintain current production levels for decades without significant exploration effort. The stock rallied in the second half of April on the back of positive copper market fundamentals and higher production guidance.
What detracted from performance?
Yum China Holdings, Inc. | Yum China operates a portfolio of quick serve restaurants in the underpenetrated Chinese market with notable brands such as KFC and Pizza Hut. China macro and consumption recovery have been bumpy resulting in downward pressure on same store sales growth leading to a further pullback in the stock in the second quarter.
Pernod Ricard S.A. | A global leader in wines and spirits selling premium brands in over 160 countries. Pernod’s strong distribution network expansion has helped it to penetrate China and India, two high-potential markets. However, Pernod has not been immune to global macro headwinds in its key markets and, as a result, consensus earnings estimates have come down which put pressure on the stock price, during the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Developing Markets Fund (Class R6) | 13.33% | 0.34% | 1.85% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Developing Markets Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $18,628,711,037% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $167,279,629% |
| Portfolio turnover rate | $43% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 12.38% |
| Tencent Holdings Ltd. | 5.39% |
| H World Group Ltd., ADR | 4.86% |
| Kotak Mahindra Bank Ltd. | 4.75% |
| Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 3.29% |
| Meituan, B Shares | 3.23% |
| Alibaba Group Holding Ltd., ADR | 3.13% |
| Samsung Electronics Co. Ltd. | 3.12% |
| HDFC Bank Ltd. | 3.11% |
| Grupo Mexico S.A.B. de C.V., Class B | 2.45% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Discovery Mid Cap Growth Fund
Class A: OEGAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Discovery Mid Cap Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Discovery Mid Cap Growth Fund
(Class A) | $128 | 1.06% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, US mid-cap equities benefited from an environment of falling interest rates and stabilizing economic growth. These results were partially offset by weaker stock selection within the information technology sector.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 40.70%. For the same time period, Russell Midcap® Growth Index returned 38.67%.
What contributed to performance?
Tenet Healthcare Corp. | Tenet Healthcare provides health care services via hospitals and ambulatory care segments. Management reported good quarterly results and raised earnings guidance above expectations.
TransDigm Inc. | TransDigm is a leading subcomponent supplier of highly engineered aircraft parts used on nearly all commercial and military aircraft platforms in service today. The stock outperformed due to a strong earnings report that beat analyst estimates. We exited our position during the fiscal year.
What detracted from performance?
Dexcom, Inc. | Dexcom is a medical device company offering glucose monitoring systems. Management reported disappointing financial results and lowered earnings guidance for the first time in years apparently due to a variety of unforeseen factors. We exited our position during the fiscal year.
Repligen Corp. | Repligen is a bioprocessing-focused life sciences company. Management reported disappointing quarterly financial results where orders for most products were recovering but more slowly than hoped. Similar trends are affecting Repligen's peers. The company also announced their well-regarded CEO will be retiring. We exited our position during the fiscal year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Discovery Mid Cap Growth Fund (Class A) —including sales charge | 32.94% | 9.29% | 10.48% |
| Invesco Discovery Mid Cap Growth Fund (Class A) —excluding sales charge | 40.70% | 10.54% | 11.11% |
| Russell Midcap® Growth Index | 38.67% | 11.46% | 11.19% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Discovery Mid Cap Growth Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Russell Midcap® Growth Index to the S&P 500® Index to reflect that the S&P 500® Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,173,759,206% |
| Total number of portfolio holdings | $85% |
| Total advisory fees paid | $35,424,649% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Ares Management Corp., Class A | 2.57% |
| Trade Desk, Inc. (The), Class A | 2.49% |
| Targa Resources Corp. | 2.30% |
| Hilton Worldwide Holdings, Inc. | 2.27% |
| Tenet Healthcare Corp. | 2.21% |
| Quanta Services, Inc. | 2.00% |
| Encompass Health Corp. | 1.98% |
| Jones Lang LaSalle, Inc. | 1.91% |
| Guidewire Software, Inc. | 1.89% |
| Monolithic Power Systems, Inc. | 1.88% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
The Fund added active trading risk to its principal risks to reflect that active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Discovery Mid Cap Growth Fund
Class C: OEGCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Discovery Mid Cap Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Discovery Mid Cap Growth Fund
(Class C) | $213 | 1.78% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, US mid-cap equities benefited from an environment of falling interest rates and stabilizing economic growth. These results were partially offset by weaker stock selection within the information technology sector.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 39.66%. For the same time period, Russell Midcap® Growth Index returned 38.67%.
What contributed to performance?
Tenet Healthcare Corp. | Tenet Healthcare provides health care services via hospitals and ambulatory care segments. Management reported good quarterly results and raised earnings guidance above expectations.
TransDigm Inc. | TransDigm is a leading subcomponent supplier of highly engineered aircraft parts used on nearly all commercial and military aircraft platforms in service today. The stock outperformed due to a strong earnings report that beat analyst estimates. We exited our position during the fiscal year.
What detracted from performance?
Dexcom, Inc. | Dexcom is a medical device company offering glucose monitoring systems. Management reported disappointing financial results and lowered earnings guidance for the first time in years apparently due to a variety of unforeseen factors. We exited our position during the fiscal year.
Repligen Corp. | Repligen is a bioprocessing-focused life sciences company. Management reported disappointing quarterly financial results where orders for most products were recovering but more slowly than hoped. Similar trends are affecting Repligen's peers. The company also announced their well-regarded CEO will be retiring. We exited our position during the fiscal year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Discovery Mid Cap Growth Fund (Class C) —including sales charge | 38.66% | 9.75% | 10.46% |
| Invesco Discovery Mid Cap Growth Fund (Class C) —excluding sales charge | 39.66% | 9.75% | 10.46% |
| Russell Midcap® Growth Index | 38.67% | 11.46% | 11.19% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Discovery Mid Cap Growth Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Russell Midcap® Growth Index to the S&P 500® Index to reflect that the S&P 500® Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,173,759,206% |
| Total number of portfolio holdings | $85% |
| Total advisory fees paid | $35,424,649% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Ares Management Corp., Class A | 2.57% |
| Trade Desk, Inc. (The), Class A | 2.49% |
| Targa Resources Corp. | 2.30% |
| Hilton Worldwide Holdings, Inc. | 2.27% |
| Tenet Healthcare Corp. | 2.21% |
| Quanta Services, Inc. | 2.00% |
| Encompass Health Corp. | 1.98% |
| Jones Lang LaSalle, Inc. | 1.91% |
| Guidewire Software, Inc. | 1.89% |
| Monolithic Power Systems, Inc. | 1.88% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
The Fund added active trading risk to its principal risks to reflect that active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Discovery Mid Cap Growth Fund
Class R: OEGNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Discovery Mid Cap Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Discovery Mid Cap Growth Fund
(Class R) | $157 | 1.31% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, US mid-cap equities benefited from an environment of falling interest rates and stabilizing economic growth. These results were partially offset by weaker stock selection within the information technology sector.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 40.31%. For the same time period, Russell Midcap® Growth Index returned 38.67%.
What contributed to performance?
Tenet Healthcare Corp. | Tenet Healthcare provides health care services via hospitals and ambulatory care segments. Management reported good quarterly results and raised earnings guidance above expectations.
TransDigm Inc. | TransDigm is a leading subcomponent supplier of highly engineered aircraft parts used on nearly all commercial and military aircraft platforms in service today. The stock outperformed due to a strong earnings report that beat analyst estimates. We exited our position during the fiscal year.
What detracted from performance?
Dexcom, Inc. | Dexcom is a medical device company offering glucose monitoring systems. Management reported disappointing financial results and lowered earnings guidance for the first time in years apparently due to a variety of unforeseen factors. We exited our position during the fiscal year.
Repligen Corp. | Repligen is a bioprocessing-focused life sciences company. Management reported disappointing quarterly financial results where orders for most products were recovering but more slowly than hoped. Similar trends are affecting Repligen's peers. The company also announced their well-regarded CEO will be retiring. We exited our position during the fiscal year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Discovery Mid Cap Growth Fund (Class R) | 40.31% | 10.27% | 10.83% |
| Russell Midcap® Growth Index | 38.67% | 11.46% | 11.19% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Discovery Mid Cap Growth Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Russell Midcap® Growth Index to the S&P 500® Index to reflect that the S&P 500® Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,173,759,206% |
| Total number of portfolio holdings | $85% |
| Total advisory fees paid | $35,424,649% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Ares Management Corp., Class A | 2.57% |
| Trade Desk, Inc. (The), Class A | 2.49% |
| Targa Resources Corp. | 2.30% |
| Hilton Worldwide Holdings, Inc. | 2.27% |
| Tenet Healthcare Corp. | 2.21% |
| Quanta Services, Inc. | 2.00% |
| Encompass Health Corp. | 1.98% |
| Jones Lang LaSalle, Inc. | 1.91% |
| Guidewire Software, Inc. | 1.89% |
| Monolithic Power Systems, Inc. | 1.88% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
The Fund added active trading risk to its principal risks to reflect that active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Discovery Mid Cap Growth Fund
Class Y: OEGYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Discovery Mid Cap Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Discovery Mid Cap Growth Fund
(Class Y) | $98 | 0.81% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, US mid-cap equities benefited from an environment of falling interest rates and stabilizing economic growth. These results were partially offset by weaker stock selection within the information technology sector.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 41.02%. For the same time period, Russell Midcap® Growth Index returned 38.67%.
What contributed to performance?
Tenet Healthcare Corp. | Tenet Healthcare provides health care services via hospitals and ambulatory care segments. Management reported good quarterly results and raised earnings guidance above expectations.
TransDigm Inc. | TransDigm is a leading subcomponent supplier of highly engineered aircraft parts used on nearly all commercial and military aircraft platforms in service today. The stock outperformed due to a strong earnings report that beat analyst estimates. We exited our position during the fiscal year.
What detracted from performance?
Dexcom, Inc. | Dexcom is a medical device company offering glucose monitoring systems. Management reported disappointing financial results and lowered earnings guidance for the first time in years apparently due to a variety of unforeseen factors. We exited our position during the fiscal year.
Repligen Corp. | Repligen is a bioprocessing-focused life sciences company. Management reported disappointing quarterly financial results where orders for most products were recovering but more slowly than hoped. Similar trends are affecting Repligen's peers. The company also announced their well-regarded CEO will be retiring. We exited our position during the fiscal year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Discovery Mid Cap Growth Fund (Class Y) | 41.02% | 10.82% | 11.38% |
| Russell Midcap® Growth Index | 38.67% | 11.46% | 11.19% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Discovery Mid Cap Growth Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Russell Midcap® Growth Index to the S&P 500® Index to reflect that the S&P 500® Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,173,759,206% |
| Total number of portfolio holdings | $85% |
| Total advisory fees paid | $35,424,649% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Ares Management Corp., Class A | 2.57% |
| Trade Desk, Inc. (The), Class A | 2.49% |
| Targa Resources Corp. | 2.30% |
| Hilton Worldwide Holdings, Inc. | 2.27% |
| Tenet Healthcare Corp. | 2.21% |
| Quanta Services, Inc. | 2.00% |
| Encompass Health Corp. | 1.98% |
| Jones Lang LaSalle, Inc. | 1.91% |
| Guidewire Software, Inc. | 1.89% |
| Monolithic Power Systems, Inc. | 1.88% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
The Fund added active trading risk to its principal risks to reflect that active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Discovery Mid Cap Growth Fund
Class R5: DMCFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Discovery Mid Cap Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Discovery Mid Cap Growth Fund
(Class R5) | $90 | 0.75% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, US mid-cap equities benefited from an environment of falling interest rates and stabilizing economic growth. These results were partially offset by weaker stock selection within the information technology sector.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 41.10%. For the same time period, Russell Midcap® Growth Index returned 38.67%.
What contributed to performance?
Tenet Healthcare Corp. | Tenet Healthcare provides health care services via hospitals and ambulatory care segments. Management reported good quarterly results and raised earnings guidance above expectations.
TransDigm Inc. | TransDigm is a leading subcomponent supplier of highly engineered aircraft parts used on nearly all commercial and military aircraft platforms in service today. The stock outperformed due to a strong earnings report that beat analyst estimates. We exited our position during the fiscal year.
What detracted from performance?
Dexcom, Inc. | Dexcom is a medical device company offering glucose monitoring systems. Management reported disappointing financial results and lowered earnings guidance for the first time in years apparently due to a variety of unforeseen factors. We exited our position during the fiscal year.
Repligen Corp. | Repligen is a bioprocessing-focused life sciences company. Management reported disappointing quarterly financial results where orders for most products were recovering but more slowly than hoped. Similar trends are affecting Repligen's peers. The company also announced their well-regarded CEO will be retiring. We exited our position during the fiscal year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Discovery Mid Cap Growth Fund (Class R5) | 41.10% | 10.90% | 11.30% |
| Russell Midcap® Growth Index | 38.67% | 11.46% | 11.19% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Discovery Mid Cap Growth Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Russell Midcap® Growth Index to the S&P 500® Index to reflect that the S&P 500® Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,173,759,206% |
| Total number of portfolio holdings | $85% |
| Total advisory fees paid | $35,424,649% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Ares Management Corp., Class A | 2.57% |
| Trade Desk, Inc. (The), Class A | 2.49% |
| Targa Resources Corp. | 2.30% |
| Hilton Worldwide Holdings, Inc. | 2.27% |
| Tenet Healthcare Corp. | 2.21% |
| Quanta Services, Inc. | 2.00% |
| Encompass Health Corp. | 1.98% |
| Jones Lang LaSalle, Inc. | 1.91% |
| Guidewire Software, Inc. | 1.89% |
| Monolithic Power Systems, Inc. | 1.88% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
The Fund added active trading risk to its principal risks to reflect that active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Discovery Mid Cap Growth Fund
Class R6: OEGIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Discovery Mid Cap Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Discovery Mid Cap Growth Fund
(Class R6) | $82 | 0.68% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, US mid-cap equities benefited from an environment of falling interest rates and stabilizing economic growth. These results were partially offset by weaker stock selection within the information technology sector.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 41.20%. For the same time period, Russell Midcap® Growth Index returned 38.67%.
What contributed to performance?
Tenet Healthcare Corp. | Tenet Healthcare provides health care services via hospitals and ambulatory care segments. Management reported good quarterly results and raised earnings guidance above expectations.
TransDigm Inc. | TransDigm is a leading subcomponent supplier of highly engineered aircraft parts used on nearly all commercial and military aircraft platforms in service today. The stock outperformed due to a strong earnings report that beat analyst estimates. We exited our position during the fiscal year.
What detracted from performance?
Dexcom, Inc. | Dexcom is a medical device company offering glucose monitoring systems. Management reported disappointing financial results and lowered earnings guidance for the first time in years apparently due to a variety of unforeseen factors. We exited our position during the fiscal year.
Repligen Corp. | Repligen is a bioprocessing-focused life sciences company. Management reported disappointing quarterly financial results where orders for most products were recovering but more slowly than hoped. Similar trends are affecting Repligen's peers. The company also announced their well-regarded CEO will be retiring. We exited our position during the fiscal year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Discovery Mid Cap Growth Fund (Class R6) | 41.20% | 10.97% | 11.56% |
| Russell Midcap® Growth Index | 38.67% | 11.46% | 11.19% |
| S&P 500® Index | 38.02% | 15.27% | 13.00% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Discovery Mid Cap Growth Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Russell Midcap® Growth Index to the S&P 500® Index to reflect that the S&P 500® Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,173,759,206% |
| Total number of portfolio holdings | $85% |
| Total advisory fees paid | $35,424,649% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Ares Management Corp., Class A | 2.57% |
| Trade Desk, Inc. (The), Class A | 2.49% |
| Targa Resources Corp. | 2.30% |
| Hilton Worldwide Holdings, Inc. | 2.27% |
| Tenet Healthcare Corp. | 2.21% |
| Quanta Services, Inc. | 2.00% |
| Encompass Health Corp. | 1.98% |
| Jones Lang LaSalle, Inc. | 1.91% |
| Guidewire Software, Inc. | 1.89% |
| Monolithic Power Systems, Inc. | 1.88% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
The Fund added active trading risk to its principal risks to reflect that active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Emerging Markets Local Debt Fund
Class A: OEMAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Emerging Markets Local Debt Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Emerging Markets Local Debt Fund
(Class A) | $125 | 1.21%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, local emerging market bonds broadly benefited from resilient economic growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 6.64%. For the same time period, JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index returned 8.76%.
What contributed to performance?
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and Chilean peso.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in Colombia and South Africa.
What detracted from performance?
Foreign Currency Exposure | The top detractors to relative return were positioning in the Colombian peso and Chinese yuan renminbi.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the Czech Republic and Brazil.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Emerging Markets Local Debt Fund (Class A) —including sales charge | 2.15% | (1.71)% | 0.15%) |
| Invesco Emerging Markets Local Debt Fund (Class A) —excluding sales charge | 6.64% | (0.85)% | 0.58%) |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Emerging Markets Local Debt Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $88,836,693% |
| Total number of portfolio holdings | $342% |
| Total advisory fees paid | $358,328% |
| Portfolio turnover rate | $99% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Colombian TES, Series B, 6.00%, 04/28/2028 | 4.53% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.29% |
| Turkiye Government Bond, 36.00%, 08/12/2026 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 4.08% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 3.69% |
| Mexican Bonos, Series M, 8.50%, 03/01/2029 | 3.63% |
| Republic of Poland Government Bond, Series 432, 1.75%, 04/25/2032 | 3.41% |
| Malaysia Government Bond, Series 219, 3.89%, 08/15/2029 | 3.11% |
| Republic of South Africa Government Bond, Series R-213, 7.00%, 02/28/2031 | 3.08% |
| Indonesia Treasury Bond, Series FR96, 7.00%, 02/15/2033 | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Emerging Markets Local Debt Fund
Class C: OEMCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Emerging Markets Local Debt Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Emerging Markets Local Debt Fund
(Class C) | $203 | 1.97%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, local emerging market bonds broadly benefited from resilient economic growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 5.84%. For the same time period, JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index returned 8.76%.
What contributed to performance?
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and Chilean peso.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in Colombia and South Africa.
What detracted from performance?
Foreign Currency Exposure | The top detractors to relative return were positioning in the Colombian peso and Chinese yuan renminbi.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the Czech Republic and Brazil.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Emerging Markets Local Debt Fund (Class C) —including sales charge | 4.84% | (1.64)% | (0.07)% |
| Invesco Emerging Markets Local Debt Fund (Class C) —excluding sales charge | 5.84% | (1.64)% | (0.07)% |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Emerging Markets Local Debt Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $88,836,693% |
| Total number of portfolio holdings | $342% |
| Total advisory fees paid | $358,328% |
| Portfolio turnover rate | $99% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Colombian TES, Series B, 6.00%, 04/28/2028 | 4.53% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.29% |
| Turkiye Government Bond, 36.00%, 08/12/2026 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 4.08% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 3.69% |
| Mexican Bonos, Series M, 8.50%, 03/01/2029 | 3.63% |
| Republic of Poland Government Bond, Series 432, 1.75%, 04/25/2032 | 3.41% |
| Malaysia Government Bond, Series 219, 3.89%, 08/15/2029 | 3.11% |
| Republic of South Africa Government Bond, Series R-213, 7.00%, 02/28/2031 | 3.08% |
| Indonesia Treasury Bond, Series FR96, 7.00%, 02/15/2033 | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Emerging Markets Local Debt Fund
Class R: OEMNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Emerging Markets Local Debt Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Emerging Markets Local Debt Fund
(Class R) | $152 | 1.47%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, local emerging market bonds broadly benefited from resilient economic growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R shares of the Fund returned 6.36%. For the same time period, JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index returned 8.76%.
What contributed to performance?
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and Chilean peso.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in Colombia and South Africa.
What detracted from performance?
Foreign Currency Exposure | The top detractors to relative return were positioning in the Colombian peso and Chinese yuan renminbi.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the Czech Republic and Brazil.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Emerging Markets Local Debt Fund (Class R) | 6.36% | (1.14)% | 0.29%) |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Emerging Markets Local Debt Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $88,836,693% |
| Total number of portfolio holdings | $342% |
| Total advisory fees paid | $358,328% |
| Portfolio turnover rate | $99% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Colombian TES, Series B, 6.00%, 04/28/2028 | 4.53% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.29% |
| Turkiye Government Bond, 36.00%, 08/12/2026 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 4.08% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 3.69% |
| Mexican Bonos, Series M, 8.50%, 03/01/2029 | 3.63% |
| Republic of Poland Government Bond, Series 432, 1.75%, 04/25/2032 | 3.41% |
| Malaysia Government Bond, Series 219, 3.89%, 08/15/2029 | 3.11% |
| Republic of South Africa Government Bond, Series R-213, 7.00%, 02/28/2031 | 3.08% |
| Indonesia Treasury Bond, Series FR96, 7.00%, 02/15/2033 | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Emerging Markets Local Debt Fund
Class Y: OEMYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Emerging Markets Local Debt Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Emerging Markets Local Debt Fund
(Class Y) | $100 | 0.97%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, local emerging market bonds broadly benefited from resilient economic growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class Y shares of the Fund returned 6.70%. For the same time period, JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index returned 8.76%.
What contributed to performance?
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and Chilean peso.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in Colombia and South Africa.
What detracted from performance?
Foreign Currency Exposure | The top detractors to relative return were positioning in the Colombian peso and Chinese yuan renminbi.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the Czech Republic and Brazil.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Emerging Markets Local Debt Fund (Class Y) | 6.70% | (0.62)% | 0.83%) |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Emerging Markets Local Debt Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $88,836,693% |
| Total number of portfolio holdings | $342% |
| Total advisory fees paid | $358,328% |
| Portfolio turnover rate | $99% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Colombian TES, Series B, 6.00%, 04/28/2028 | 4.53% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.29% |
| Turkiye Government Bond, 36.00%, 08/12/2026 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 4.08% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 3.69% |
| Mexican Bonos, Series M, 8.50%, 03/01/2029 | 3.63% |
| Republic of Poland Government Bond, Series 432, 1.75%, 04/25/2032 | 3.41% |
| Malaysia Government Bond, Series 219, 3.89%, 08/15/2029 | 3.11% |
| Republic of South Africa Government Bond, Series R-213, 7.00%, 02/28/2031 | 3.08% |
| Indonesia Treasury Bond, Series FR96, 7.00%, 02/15/2033 | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Emerging Markets Local Debt Fund
Class R5: EMLDX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Emerging Markets Local Debt Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Emerging Markets Local Debt Fund
(Class R5) | $100 | 0.97%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, local emerging market bonds broadly benefited from resilient economic growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R5 shares of the Fund returned 6.70%. For the same time period, JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index returned 8.76%.
What contributed to performance?
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and Chilean peso.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in Colombia and South Africa.
What detracted from performance?
Foreign Currency Exposure | The top detractors to relative return were positioning in the Colombian peso and Chinese yuan renminbi.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the Czech Republic and Brazil.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Emerging Markets Local Debt Fund (Class R5) | 6.70% | (0.56)% | 0.74%) |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Emerging Markets Local Debt Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $88,836,693% |
| Total number of portfolio holdings | $342% |
| Total advisory fees paid | $358,328% |
| Portfolio turnover rate | $99% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Colombian TES, Series B, 6.00%, 04/28/2028 | 4.53% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.29% |
| Turkiye Government Bond, 36.00%, 08/12/2026 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 4.08% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 3.69% |
| Mexican Bonos, Series M, 8.50%, 03/01/2029 | 3.63% |
| Republic of Poland Government Bond, Series 432, 1.75%, 04/25/2032 | 3.41% |
| Malaysia Government Bond, Series 219, 3.89%, 08/15/2029 | 3.11% |
| Republic of South Africa Government Bond, Series R-213, 7.00%, 02/28/2031 | 3.08% |
| Indonesia Treasury Bond, Series FR96, 7.00%, 02/15/2033 | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Emerging Markets Local Debt Fund
Class R6: OEMIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Emerging Markets Local Debt Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Emerging Markets Local Debt Fund
(Class R6) | $100 | 0.97%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, local emerging market bonds broadly benefited from resilient economic growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R6 shares of the Fund returned 6.90%. For the same time period, JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index returned 8.76%.
What contributed to performance?
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and Chilean peso.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in Colombia and South Africa.
What detracted from performance?
Foreign Currency Exposure | The top detractors to relative return were positioning in the Colombian peso and Chinese yuan renminbi.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the Czech Republic and Brazil.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Emerging Markets Local Debt Fund (Class R6) | 6.90% | (0.52)% | 0.92%) |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Emerging Markets Local Debt Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $88,836,693% |
| Total number of portfolio holdings | $342% |
| Total advisory fees paid | $358,328% |
| Portfolio turnover rate | $99% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Colombian TES, Series B, 6.00%, 04/28/2028 | 4.53% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.29% |
| Turkiye Government Bond, 36.00%, 08/12/2026 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 4.08% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 3.69% |
| Mexican Bonos, Series M, 8.50%, 03/01/2029 | 3.63% |
| Republic of Poland Government Bond, Series 432, 1.75%, 04/25/2032 | 3.41% |
| Malaysia Government Bond, Series 219, 3.89%, 08/15/2029 | 3.11% |
| Republic of South Africa Government Bond, Series R-213, 7.00%, 02/28/2031 | 3.08% |
| Indonesia Treasury Bond, Series FR96, 7.00%, 02/15/2033 | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Emerging Markets All Cap Fund
Class A: GTDDX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Emerging Markets All Cap Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Emerging Markets All Cap Fund
(Class A) | $148 | 1.40% |
How Did The Fund Perform During The Period?
• Emerging market (EM) equities performed very well during the fiscal year ended October 31, 2024. EM outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class. In contrast, Mexican equities declined for the fiscal year driven by negative sentiment regarding post-election reforms and a sharp decline in the Mexican peso.
• In this environment, Class A shares of the Fund, excluding sales charge, returned 11.95% for the fiscal year ended October 31, 2024, lagging the MSCI Emerging Markets Index return of 25.32% for the period. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials, China, Mexico and Brazil and overweights in consumer staples, Mexico and Brazil.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong, and TSMC continued to benefit from increased AI demand and a better pricing outlook.
MakeMyTrip Ltd. | An India-based online travel booking services company with what we believe is a strong management team and sustainable advantages. India’s travel industry is still in the nascent stage of development with potential multi-decade growth opportunities ahead. The stock benefited from increased bookings, as travel in India has recovered beyond pre-pandemic levels.
Fuyao Glass Industry Group Co. Ltd. | A global producer of auto glass and is a dominant player in China. Fuyao benefited from the continued shift towards electric vehicles which require more advanced and higher automotive service products.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer (Holdings) Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Emerging Markets All Cap Fund (Class A) —including sales charge | 5.80% | 0.10% | 1.63% |
| Invesco EQV Emerging Markets All Cap Fund (Class A) —excluding sales charge | 11.95% | 1.24% | 2.20% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,476,098,416% |
| Total number of portfolio holdings | $58% |
| Total advisory fees paid | $13,614,299% |
| Portfolio turnover rate | $20% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.43% |
| HDFC Bank Ltd., ADR | 4.03% |
| Tencent Holdings Ltd. | 3.89% |
| Richter Gedeon Nyrt | 3.86% |
| Samsung Electronics Co. Ltd. | 3.13% |
| Emaar Properties PJSC | 3.03% |
| SBI Life Insurance Co. Ltd. | 3.02% |
| MediaTek, Inc. | 3.02% |
| PT Bank Central Asia Tbk | 3.00% |
| Tongcheng Travel Holdings Ltd. | 2.99% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Emerging Markets All Cap Fund
Class C: GTDCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Emerging Markets All Cap Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Emerging Markets All Cap Fund
(Class C) | $227 | 2.15% |
How Did The Fund Perform During The Period?
• Emerging market (EM) equities performed very well during the fiscal year ended October 31, 2024. EM outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class. In contrast, Mexican equities declined for the fiscal year driven by negative sentiment regarding post-election reforms and a sharp decline in the Mexican peso.
• In this environment, Class C shares of the Fund, excluding sales charge, returned 11.08% for the fiscal year ended October 31, 2024, lagging the MSCI Emerging Markets Index return of 25.32% for the period. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials, China, Mexico and Brazil and overweights in consumer staples, Mexico and Brazil.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong, and TSMC continued to benefit from increased AI demand and a better pricing outlook.
MakeMyTrip Ltd. | An India-based online travel booking services company with what we believe is a strong management team and sustainable advantages. India’s travel industry is still in the nascent stage of development with potential multi-decade growth opportunities ahead. The stock benefited from increased bookings, as travel in India has recovered beyond pre-pandemic levels.
Fuyao Glass Industry Group Co. Ltd. | A global producer of auto glass and is a dominant player in China. Fuyao benefited from the continued shift towards electric vehicles which require more advanced and higher automotive service products.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer (Holdings) Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Emerging Markets All Cap Fund (Class C) —including sales charge | 10.08% | 0.48% | 1.60% |
| Invesco EQV Emerging Markets All Cap Fund (Class C) —excluding sales charge | 11.08% | 0.48% | 1.60% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,476,098,416% |
| Total number of portfolio holdings | $58% |
| Total advisory fees paid | $13,614,299% |
| Portfolio turnover rate | $20% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.43% |
| HDFC Bank Ltd., ADR | 4.03% |
| Tencent Holdings Ltd. | 3.89% |
| Richter Gedeon Nyrt | 3.86% |
| Samsung Electronics Co. Ltd. | 3.13% |
| Emaar Properties PJSC | 3.03% |
| SBI Life Insurance Co. Ltd. | 3.02% |
| MediaTek, Inc. | 3.02% |
| PT Bank Central Asia Tbk | 3.00% |
| Tongcheng Travel Holdings Ltd. | 2.99% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Emerging Markets All Cap Fund
Class Y: GTDYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Emerging Markets All Cap Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Emerging Markets All Cap Fund
(Class Y) | $122 | 1.15% |
How Did The Fund Perform During The Period?
• Emerging market (EM) equities performed very well during the fiscal year ended October 31, 2024. EM outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class. In contrast, Mexican equities declined for the fiscal year driven by negative sentiment regarding post-election reforms and a sharp decline in the Mexican peso.
• In this environment, Class Y shares of the Fund returned 12.20% for the fiscal year ended October 31, 2024, lagging the MSCI Emerging Markets Index return of 25.32% for the period. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials, China, Mexico and Brazil and overweights in consumer staples, Mexico and Brazil.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong, and TSMC continued to benefit from increased AI demand and a better pricing outlook.
MakeMyTrip Ltd. | An India-based online travel booking services company with what we believe is a strong management team and sustainable advantages. India’s travel industry is still in the nascent stage of development with potential multi-decade growth opportunities ahead. The stock benefited from increased bookings, as travel in India has recovered beyond pre-pandemic levels.
Fuyao Glass Industry Group Co. Ltd. | A global producer of auto glass and is a dominant player in China. Fuyao benefited from the continued shift towards electric vehicles which require more advanced and higher automotive service products.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer (Holdings) Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Emerging Markets All Cap Fund (Class Y) | 12.20% | 1.49% | 2.46% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,476,098,416% |
| Total number of portfolio holdings | $58% |
| Total advisory fees paid | $13,614,299% |
| Portfolio turnover rate | $20% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.43% |
| HDFC Bank Ltd., ADR | 4.03% |
| Tencent Holdings Ltd. | 3.89% |
| Richter Gedeon Nyrt | 3.86% |
| Samsung Electronics Co. Ltd. | 3.13% |
| Emaar Properties PJSC | 3.03% |
| SBI Life Insurance Co. Ltd. | 3.02% |
| MediaTek, Inc. | 3.02% |
| PT Bank Central Asia Tbk | 3.00% |
| Tongcheng Travel Holdings Ltd. | 2.99% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Emerging Markets All Cap Fund
Class R5: GTDIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Emerging Markets All Cap Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Emerging Markets All Cap Fund
(Class R5) | $116 | 1.09% |
How Did The Fund Perform During The Period?
• Emerging market (EM) equities performed very well during the fiscal year ended October 31, 2024. EM outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class. In contrast, Mexican equities declined for the fiscal year driven by negative sentiment regarding post-election reforms and a sharp decline in the Mexican peso.
• In this environment, Class R5 shares of the Fund returned 12.28% for the fiscal year ended October 31, 2024, lagging the MSCI Emerging Markets Index return of 25.32% for the period. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials, China, Mexico and Brazil and overweights in consumer staples, Mexico and Brazil.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong, and TSMC continued to benefit from increased AI demand and a better pricing outlook.
MakeMyTrip Ltd. | An India-based online travel booking services company with what we believe is a strong management team and sustainable advantages. India’s travel industry is still in the nascent stage of development with potential multi-decade growth opportunities ahead. The stock benefited from increased bookings, as travel in India has recovered beyond pre-pandemic levels.
Fuyao Glass Industry Group Co. Ltd. | A global producer of auto glass and is a dominant player in China. Fuyao benefited from the continued shift towards electric vehicles which require more advanced and higher automotive service products.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer (Holdings) Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Emerging Markets All Cap Fund (Class R5) | 12.28% | 1.55% | 2.55% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,476,098,416% |
| Total number of portfolio holdings | $58% |
| Total advisory fees paid | $13,614,299% |
| Portfolio turnover rate | $20% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.43% |
| HDFC Bank Ltd., ADR | 4.03% |
| Tencent Holdings Ltd. | 3.89% |
| Richter Gedeon Nyrt | 3.86% |
| Samsung Electronics Co. Ltd. | 3.13% |
| Emaar Properties PJSC | 3.03% |
| SBI Life Insurance Co. Ltd. | 3.02% |
| MediaTek, Inc. | 3.02% |
| PT Bank Central Asia Tbk | 3.00% |
| Tongcheng Travel Holdings Ltd. | 2.99% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Emerging Markets All Cap Fund
Class R6: GTDFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Emerging Markets All Cap Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Emerging Markets All Cap Fund
(Class R6) | $108 | 1.02% |
How Did The Fund Perform During The Period?
• Emerging market (EM) equities performed very well during the fiscal year ended October 31, 2024. EM outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class. In contrast, Mexican equities declined for the fiscal year driven by negative sentiment regarding post-election reforms and a sharp decline in the Mexican peso.
• In this environment, Class R6 shares of the Fund returned 12.34% for the fiscal year ended October 31, 2024, lagging the MSCI Emerging Markets Index return of 25.32% for the period. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials, China, Mexico and Brazil and overweights in consumer staples, Mexico and Brazil.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong, and TSMC continued to benefit from increased AI demand and a better pricing outlook.
MakeMyTrip Ltd. | An India-based online travel booking services company with what we believe is a strong management team and sustainable advantages. India’s travel industry is still in the nascent stage of development with potential multi-decade growth opportunities ahead. The stock benefited from increased bookings, as travel in India has recovered beyond pre-pandemic levels.
Fuyao Glass Industry Group Co. Ltd. | A global producer of auto glass and is a dominant player in China. Fuyao benefited from the continued shift towards electric vehicles which require more advanced and higher automotive service products.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer (Holdings) Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Emerging Markets All Cap Fund (Class R6) | 12.34% | 1.62% | 2.61% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,476,098,416% |
| Total number of portfolio holdings | $58% |
| Total advisory fees paid | $13,614,299% |
| Portfolio turnover rate | $20% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.43% |
| HDFC Bank Ltd., ADR | 4.03% |
| Tencent Holdings Ltd. | 3.89% |
| Richter Gedeon Nyrt | 3.86% |
| Samsung Electronics Co. Ltd. | 3.13% |
| Emaar Properties PJSC | 3.03% |
| SBI Life Insurance Co. Ltd. | 3.02% |
| MediaTek, Inc. | 3.02% |
| PT Bank Central Asia Tbk | 3.00% |
| Tongcheng Travel Holdings Ltd. | 2.99% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Fundamental Alternatives Fund
Class A: QVOPX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Fundamental Alternatives Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Fundamental Alternatives Fund
(Class A) | $140 | 1.35%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 7.49%. For the same time period, HFRX Global Hedge Fund Index returned 7.03%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | This semiconductor company is highly ranked in our multi-factor investment model with attractive scores in our Momentum and Quality factors, which contributed positively to the Fund's performance. While the stock has a less attractive Value score, this factor still managed to be additive for the period. This company is not included in the S&P 500 benchmark; however, the Fund's position benefited as the stock soared over 120% during the fiscal year.
Goldman Sachs Group, Inc. | Goldman Sachs is ranked attractively in our model based on our Momentum and Value factors and investors were rewarded accordingly. The Fund holds this company at a large overweight, which added to returns as the stock rose by 75% during the reporting period.
What detracted from performance?
Macro | The Fund's macro sleeve detracted from performance due to losses in government bonds, commodities and currencies. All bond positions declined, led by German, Canadian and US government bonds. Currency exposures detracted as the USD rose during the period. Our commodities exposure, achieved through swaps, declined in aggregate due to losses in energy and metals.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Fundamental Alternatives Fund (Class A) —including sales charge | 1.61% | 0.40%) | 0.86% |
| Invesco Fundamental Alternatives Fund (Class A) —excluding sales charge | 7.49% | 1.54%) | 1.43% |
| HFRX Global Hedge Fund Index | 7.03% | 3.10%) | 1.87% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Fundamental Alternatives Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the HFRX Global Hedge Fund Index to the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $303,516,732% |
| Total number of portfolio holdings | $500% |
| Total advisory fees paid | $2,586,187% |
| Portfolio turnover rate | $47% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective on or about February 28, 2025, the name of the Fund and all references thereto will change from Invesco Fundamental Alternatives Fund to Invesco Multi-Strategy Fund. In addition, the principal investment strategy of the Fund will be updated to reflect investing in affiliated and unaffiliated exchange-traded funds ("ETFs"), consistent with the Fund's current investment objective.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Fundamental Alternatives Fund
Class C: QOPCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Fundamental Alternatives Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Fundamental Alternatives Fund
(Class C) | $217 | 2.10%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 6.74%. For the same time period, HFRX Global Hedge Fund Index returned 7.03%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | This semiconductor company is highly ranked in our multi-factor investment model with attractive scores in our Momentum and Quality factors, which contributed positively to the Fund's performance. While the stock has a less attractive Value score, this factor still managed to be additive for the period. This company is not included in the S&P 500 benchmark; however, the Fund's position benefited as the stock soared over 120% during the fiscal year.
Goldman Sachs Group, Inc. | Goldman Sachs is ranked attractively in our model based on our Momentum and Value factors and investors were rewarded accordingly. The Fund holds this company at a large overweight, which added to returns as the stock rose by 75% during the reporting period.
What detracted from performance?
Macro | The Fund's macro sleeve detracted from performance due to losses in government bonds, commodities and currencies. All bond positions declined, led by German, Canadian and US government bonds. Currency exposures detracted as the USD rose during the period. Our commodities exposure, achieved through swaps, declined in aggregate due to losses in energy and metals.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Fundamental Alternatives Fund (Class C) —including sales charge | 5.74% | 0.77%) | 0.81% |
| Invesco Fundamental Alternatives Fund (Class C) —excluding sales charge | 6.74% | 0.77%) | 0.81% |
| HFRX Global Hedge Fund Index | 7.03% | 3.10%) | 1.87% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Fundamental Alternatives Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the HFRX Global Hedge Fund Index to the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $303,516,732% |
| Total number of portfolio holdings | $500% |
| Total advisory fees paid | $2,586,187% |
| Portfolio turnover rate | $47% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective on or about February 28, 2025, the name of the Fund and all references thereto will change from Invesco Fundamental Alternatives Fund to Invesco Multi-Strategy Fund. In addition, the principal investment strategy of the Fund will be updated to reflect investing in affiliated and unaffiliated exchange-traded funds ("ETFs"), consistent with the Fund's current investment objective.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Fundamental Alternatives Fund
Class R: QOPNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Fundamental Alternatives Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Fundamental Alternatives Fund
(Class R) | $166 | 1.60%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 7.26%. For the same time period, HFRX Global Hedge Fund Index returned 7.03%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | This semiconductor company is highly ranked in our multi-factor investment model with attractive scores in our Momentum and Quality factors, which contributed positively to the Fund's performance. While the stock has a less attractive Value score, this factor still managed to be additive for the period. This company is not included in the S&P 500 benchmark; however, the Fund's position benefited as the stock soared over 120% during the fiscal year.
Goldman Sachs Group, Inc. | Goldman Sachs is ranked attractively in our model based on our Momentum and Value factors and investors were rewarded accordingly. The Fund holds this company at a large overweight, which added to returns as the stock rose by 75% during the reporting period.
What detracted from performance?
Macro | The Fund's macro sleeve detracted from performance due to losses in government bonds, commodities and currencies. All bond positions declined, led by German, Canadian and US government bonds. Currency exposures detracted as the USD rose during the period. Our commodities exposure, achieved through swaps, declined in aggregate due to losses in energy and metals.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Fundamental Alternatives Fund (Class R) | 7.26% | 1.27%) | 1.17% |
| HFRX Global Hedge Fund Index | 7.03% | 3.10%) | 1.87% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Fundamental Alternatives Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the HFRX Global Hedge Fund Index to the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $303,516,732% |
| Total number of portfolio holdings | $500% |
| Total advisory fees paid | $2,586,187% |
| Portfolio turnover rate | $47% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective on or about February 28, 2025, the name of the Fund and all references thereto will change from Invesco Fundamental Alternatives Fund to Invesco Multi-Strategy Fund. In addition, the principal investment strategy of the Fund will be updated to reflect investing in affiliated and unaffiliated exchange-traded funds ("ETFs"), consistent with the Fund's current investment objective.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Fundamental Alternatives Fund
Class Y: QOPYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Fundamental Alternatives Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Fundamental Alternatives Fund
(Class Y) | $114 | 1.10%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 7.76%. For the same time period, HFRX Global Hedge Fund Index returned 7.03%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | This semiconductor company is highly ranked in our multi-factor investment model with attractive scores in our Momentum and Quality factors, which contributed positively to the Fund's performance. While the stock has a less attractive Value score, this factor still managed to be additive for the period. This company is not included in the S&P 500 benchmark; however, the Fund's position benefited as the stock soared over 120% during the fiscal year.
Goldman Sachs Group, Inc. | Goldman Sachs is ranked attractively in our model based on our Momentum and Value factors and investors were rewarded accordingly. The Fund holds this company at a large overweight, which added to returns as the stock rose by 75% during the reporting period.
What detracted from performance?
Macro | The Fund's macro sleeve detracted from performance due to losses in government bonds, commodities and currencies. All bond positions declined, led by German, Canadian and US government bonds. Currency exposures detracted as the USD rose during the period. Our commodities exposure, achieved through swaps, declined in aggregate due to losses in energy and metals.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Fundamental Alternatives Fund (Class Y) | 7.76% | 1.78%) | 1.67% |
| HFRX Global Hedge Fund Index | 7.03% | 3.10%) | 1.87% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Fundamental Alternatives Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the HFRX Global Hedge Fund Index to the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $303,516,732% |
| Total number of portfolio holdings | $500% |
| Total advisory fees paid | $2,586,187% |
| Portfolio turnover rate | $47% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective on or about February 28, 2025, the name of the Fund and all references thereto will change from Invesco Fundamental Alternatives Fund to Invesco Multi-Strategy Fund. In addition, the principal investment strategy of the Fund will be updated to reflect investing in affiliated and unaffiliated exchange-traded funds ("ETFs"), consistent with the Fund's current investment objective.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Fundamental Alternatives Fund
Class R5: FDATX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Fundamental Alternatives Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Fundamental Alternatives Fund
(Class R5) | $100 | 0.96%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 7.97%. For the same time period, HFRX Global Hedge Fund Index returned 7.03%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | This semiconductor company is highly ranked in our multi-factor investment model with attractive scores in our Momentum and Quality factors, which contributed positively to the Fund's performance. While the stock has a less attractive Value score, this factor still managed to be additive for the period. This company is not included in the S&P 500 benchmark; however, the Fund's position benefited as the stock soared over 120% during the fiscal year.
Goldman Sachs Group, Inc. | Goldman Sachs is ranked attractively in our model based on our Momentum and Value factors and investors were rewarded accordingly. The Fund holds this company at a large overweight, which added to returns as the stock rose by 75% during the reporting period.
What detracted from performance?
Macro | The Fund's macro sleeve detracted from performance due to losses in government bonds, commodities and currencies. All bond positions declined, led by German, Canadian and US government bonds. Currency exposures detracted as the USD rose during the period. Our commodities exposure, achieved through swaps, declined in aggregate due to losses in energy and metals.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Fundamental Alternatives Fund (Class R5) | 7.97% | 1.95%) | 1.65% |
| HFRX Global Hedge Fund Index | 7.03% | 3.10%) | 1.87% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Fundamental Alternatives Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the HFRX Global Hedge Fund Index to the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $303,516,732% |
| Total number of portfolio holdings | $500% |
| Total advisory fees paid | $2,586,187% |
| Portfolio turnover rate | $47% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective on or about February 28, 2025, the name of the Fund and all references thereto will change from Invesco Fundamental Alternatives Fund to Invesco Multi-Strategy Fund. In addition, the principal investment strategy of the Fund will be updated to reflect investing in affiliated and unaffiliated exchange-traded funds ("ETFs"), consistent with the Fund's current investment objective.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Fundamental Alternatives Fund
Class R6: QOPIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Fundamental Alternatives Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Fundamental Alternatives Fund
(Class R6) | $100 | 0.96%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 7.96%. For the same time period, HFRX Global Hedge Fund Index returned 7.03%.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | This semiconductor company is highly ranked in our multi-factor investment model with attractive scores in our Momentum and Quality factors, which contributed positively to the Fund's performance. While the stock has a less attractive Value score, this factor still managed to be additive for the period. This company is not included in the S&P 500 benchmark; however, the Fund's position benefited as the stock soared over 120% during the fiscal year.
Goldman Sachs Group, Inc. | Goldman Sachs is ranked attractively in our model based on our Momentum and Value factors and investors were rewarded accordingly. The Fund holds this company at a large overweight, which added to returns as the stock rose by 75% during the reporting period.
What detracted from performance?
Macro | The Fund's macro sleeve detracted from performance due to losses in government bonds, commodities and currencies. All bond positions declined, led by German, Canadian and US government bonds. Currency exposures detracted as the USD rose during the period. Our commodities exposure, achieved through swaps, declined in aggregate due to losses in energy and metals.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Fundamental Alternatives Fund (Class R6) | 7.96% | 1.97%) | 1.86% |
| HFRX Global Hedge Fund Index | 7.03% | 3.10%) | 1.87% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Fundamental Alternatives Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the HFRX Global Hedge Fund Index to the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg Global Aggregate Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $303,516,732% |
| Total number of portfolio holdings | $500% |
| Total advisory fees paid | $2,586,187% |
| Portfolio turnover rate | $47% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective on or about February 28, 2025, the name of the Fund and all references thereto will change from Invesco Fundamental Alternatives Fund to Invesco Multi-Strategy Fund. In addition, the principal investment strategy of the Fund will be updated to reflect investing in affiliated and unaffiliated exchange-traded funds ("ETFs"), consistent with the Fund's current investment objective.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Allocation Fund
Class A: QVGIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Allocation Fund
(Class A) | $120 | 1.10%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity and fixed income markets posted positive results, with equities posting double digit gains for the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega-cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• Class A shares of Invesco Global Allocation Fund, excluding sales charge, returned 18.55% for the fiscal year ended October 31, 2024, lagging the Custom Invesco Global Allocation Index (a blended benchmark of 60% MSCI All Country World Index (Net)/40% Bloomberg Global Aggregate Bond USD Hedged Index) return of 23.28% for the period. The Fund's relative underperformance for the fiscal year was primarily driven by factor allocation to the Invesco Dynamic Multifactor ETF suite.
What contributed to performance?
Asset Allocation - Tactical Asset Allocation | The Fund's tactical asset allocation contributed positively to relative performance, including the Fund’s exposure to equity, fixed income, and foreign exchange activity.
Asset Allocation - EM Sovereign Debt | The Fund's allocation to Invesco Emerging Markets Sovereign Debt ETF (PCY) was a positive driver of relative performance as EM fixed income outperformed US and Developed ex-US fixed income counterparts.
Manager Selection - US equity | The Fund's allocation to Invesco Discovery Mid-Cap Growth Fund posted positive relative security selection results in the US mid-cap growth universe.
What detracted from performance?
Dynamic Multifactor - OMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, specifically the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL), was the largest detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections. This resulted in being underweight the "Magnificent 7" stocks which have been the main driver of US equity market returns over the period.
Asset Allocation - US Fixed Income | The Fund's fixed income exposure had less duration relative to the Bloomberg US Aggregate Bond Index from November 2023 to beginning of July 2024, when the Fund shifted to have greater duration exposure relative to the Bloomberg US Aggregate Bond Index. The timing of the duration positioning had a negative impact to the Fund's fixed income exposure.
Dynamic Multifactor - IMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, including Invesco's International Developed Dynamic Multifactor ETF (IMFL), was a detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections, driven by the 'recovery' regime's exposure to size and value factors from November 2023 through early July 2024.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Allocation Fund (Class A) —including sales charge | 12.12% | 4.52%) | 4.25% |
| Invesco Global Allocation Fund (Class A) —excluding sales charge | 18.55% | 5.71%) | 4.84% |
| Custom Invesco Global Allocation Index | 23.28% | 7.04%) | 6.32% |
| Bloomberg Global Aggregate USD Hedged Index | 9.92% | 0.33%) | 2.12% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The Custom Invesco Global Allocation Index is composed of 60% MSCI All Country World Index/40% Bloomberg Global Aggregate USD Hedged Index.
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Global Allocation Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate USD Hedged Index to the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,020,710,405% |
| Total number of portfolio holdings | $319% |
| Total advisory fees paid | $6,560,632% |
| Portfolio turnover rate | $30% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco Russell 1000® Dynamic Multifactor ETF | 21.37% |
| U.S. Treasury Notes, 1.88%, 02/15/2032 | 14.33% |
| Invesco International Developed Dynamic Multifactor ETF | 13.86% |
| U.S. Treasury Notes, 4.38%, 05/15/2034 | 10.34% |
| U.S. Treasury Notes, 3.88%, 12/31/2029 | 6.62% |
| Invesco Russell 2000® Dynamic Multifactor ETF | 6.18% |
| Invesco High Yield Bond Factor ETF | 2.37% |
| U.S. Treasury Notes, 3.88%, 12/31/2027 | 2.28% |
| Invesco Emerging Markets Sovereign Debt ETF | 0.77% |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 0.68% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Allocation Fund
Class C: QGRCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Allocation Fund
(Class C) | $201 | 1.85%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity and fixed income markets posted positive results, with equities posting double digit gains for the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega-cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• Class C shares of the Invesco Global Allocation Fund, excluding sales charge, returned 17.62% for the fiscal year ended October 31, 2024, lagging the Custom Invesco Global Allocation Index (a blended benchmark of 60% MSCI All Country World Index (Net)/40% Bloomberg Global Aggregate Bond USD Hedged Index) return of 23.28% for the period. The Fund's relative underperformance for the fiscal year was primarily driven by factor allocation to the Invesco Dynamic Multifactor ETF suite.
What contributed to performance?
Asset Allocation - Tactical Asset Allocation | The Fund's tactical asset allocation contributed positively to relative performance, including the Fund’s exposure to equity, fixed income, and foreign exchange activity.
Asset Allocation - EM Sovereign Debt | The Fund's allocation to Invesco Emerging Markets Sovereign Debt ETF (PCY) was a positive driver of relative performance as EM fixed income outperformed US and Developed ex-US fixed income counterparts.
Manager Selection - US equity | The Fund's allocation to Invesco Discovery Mid-Cap Growth Fund posted positive relative security selection results in the US mid-cap growth universe.
What detracted from performance?
Dynamic Multifactor - OMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, specifically the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL), was the largest detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections. This resulted in being underweight the "Magnificent 7" stocks which have been the main driver of US equity market returns over the period.
Asset Allocation - US Fixed Income | The Fund's fixed income exposure had less duration relative to the Bloomberg US Aggregate Bond Index from November 2023 to beginning of July 2024, when the Fund shifted to have greater duration exposure relative to the Bloomberg US Aggregate Bond Index. The timing of the duration positioning had a negative impact to the Fund's fixed income exposure.
Dynamic Multifactor - IMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, including Invesco's International Developed Dynamic Multifactor ETF (IMFL), was a detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections, driven by the 'recovery' regime's exposure to size and value factors from November 2023 through early July 2024.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Allocation Fund (Class C) —including sales charge | 16.69% | 4.91%) | 4.21% |
| Invesco Global Allocation Fund (Class C) —excluding sales charge | 17.62% | 4.91%) | 4.21% |
| Custom Invesco Global Allocation Index | 23.28% | 7.04%) | 6.32% |
| Bloomberg Global Aggregate USD Hedged Index | 9.92% | 0.33%) | 2.12% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The Custom Invesco Global Allocation Index is composed of 60% MSCI All Country World Index/40% Bloomberg Global Aggregate USD Hedged Index.
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Global Allocation Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate USD Hedged Index to the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,020,710,405% |
| Total number of portfolio holdings | $319% |
| Total advisory fees paid | $6,560,632% |
| Portfolio turnover rate | $30% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco Russell 1000® Dynamic Multifactor ETF | 21.37% |
| U.S. Treasury Notes, 1.88%, 02/15/2032 | 14.33% |
| Invesco International Developed Dynamic Multifactor ETF | 13.86% |
| U.S. Treasury Notes, 4.38%, 05/15/2034 | 10.34% |
| U.S. Treasury Notes, 3.88%, 12/31/2029 | 6.62% |
| Invesco Russell 2000® Dynamic Multifactor ETF | 6.18% |
| Invesco High Yield Bond Factor ETF | 2.37% |
| U.S. Treasury Notes, 3.88%, 12/31/2027 | 2.28% |
| Invesco Emerging Markets Sovereign Debt ETF | 0.77% |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 0.68% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Allocation Fund
Class R: QGRNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Allocation Fund
(Class R) | $147 | 1.35%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity and fixed income markets posted positive results, with equities posting double digit gains for the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega-cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• Class R shares of the Invesco Global Allocation Fund returned 18.20% for the fiscal year ended October 31, 2024, lagging the Custom Invesco Global Allocation Index (a blended benchmark of 60% MSCI All Country World Index (Net)/40% Bloomberg Global Aggregate Bond USD Hedged Index) return of 23.28% for the period. The Fund's relative underperformance for the fiscal year was primarily driven by factor allocation to the Invesco Dynamic Multifactor ETF suite.
What contributed to performance?
Asset Allocation - Tactical Asset Allocation | The Fund's tactical asset allocation contributed positively to relative performance, including the Fund’s exposure to equity, fixed income, and foreign exchange activity.
Asset Allocation - EM Sovereign Debt | The Fund's allocation to Invesco Emerging Markets Sovereign Debt ETF (PCY) was a positive driver of relative performance as EM fixed income outperformed US and Developed ex-US fixed income counterparts.
Manager Selection - US equity | The Fund's allocation to Invesco Discovery Mid-Cap Growth Fund posted positive relative security selection results in the US mid-cap growth universe.
What detracted from performance?
Dynamic Multifactor - OMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, specifically the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL), was the largest detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections. This resulted in being underweight the "Magnificent 7" stocks which have been the main driver of US equity market returns over the period.
Asset Allocation - US Fixed Income | The Fund's fixed income exposure had less duration relative to the Bloomberg US Aggregate Bond Index from November 2023 to beginning of July 2024, when the Fund shifted to have greater duration exposure relative to the Bloomberg US Aggregate Bond Index. The timing of the duration positioning had a negative impact to the Fund's fixed income exposure.
Dynamic Multifactor - IMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, including Invesco's International Developed Dynamic Multifactor ETF (IMFL), was a detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections, driven by the 'recovery' regime's exposure to size and value factors from November 2023 through early July 2024.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Allocation Fund (Class R) | 18.20% | 5.44%) | 4.57% |
| Custom Invesco Global Allocation Index | 23.28% | 7.04%) | 6.32% |
| Bloomberg Global Aggregate USD Hedged Index | 9.92% | 0.33%) | 2.12% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The Custom Invesco Global Allocation Index is composed of 60% MSCI All Country World Index/40% Bloomberg Global Aggregate USD Hedged Index.
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Global Allocation Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate USD Hedged Index to the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,020,710,405% |
| Total number of portfolio holdings | $319% |
| Total advisory fees paid | $6,560,632% |
| Portfolio turnover rate | $30% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco Russell 1000® Dynamic Multifactor ETF | 21.37% |
| U.S. Treasury Notes, 1.88%, 02/15/2032 | 14.33% |
| Invesco International Developed Dynamic Multifactor ETF | 13.86% |
| U.S. Treasury Notes, 4.38%, 05/15/2034 | 10.34% |
| U.S. Treasury Notes, 3.88%, 12/31/2029 | 6.62% |
| Invesco Russell 2000® Dynamic Multifactor ETF | 6.18% |
| Invesco High Yield Bond Factor ETF | 2.37% |
| U.S. Treasury Notes, 3.88%, 12/31/2027 | 2.28% |
| Invesco Emerging Markets Sovereign Debt ETF | 0.77% |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 0.68% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Allocation Fund
Class Y: QGRYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Allocation Fund
(Class Y) | $93 | 0.85%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity and fixed income markets posted positive results, with equities posting double digit gains for the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega-cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• Class Y shares of the Invesco Global Allocation Fund returned 18.82% for the fiscal year ended October 31, 2024, lagging the Custom Invesco Global Allocation Index (a blended benchmark of 60% MSCI All Country World Index (Net)/40% Bloomberg Global Aggregate Bond USD Hedged Index) return of 23.28% for the period. The Fund's relative underperformance for the fiscal year was primarily driven by factor allocation to the Invesco Dynamic Multifactor ETF suite.
What contributed to performance?
Asset Allocation - Tactical Asset Allocation | The Fund's tactical asset allocation contributed positively to relative performance, including the Fund’s exposure to equity, fixed income, and foreign exchange activity.
Asset Allocation - EM Sovereign Debt | The Fund's allocation to Invesco Emerging Markets Sovereign Debt ETF (PCY) was a positive driver of relative performance as EM fixed income outperformed US and Developed ex-US fixed income counterparts.
Manager Selection - US equity | The Fund's allocation to Invesco Discovery Mid-Cap Growth Fund posted positive relative security selection results in the US mid-cap growth universe.
What detracted from performance?
Dynamic Multifactor - OMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, specifically the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL), was the largest detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections. This resulted in being underweight the "Magnificent 7" stocks which have been the main driver of US equity market returns over the period.
Asset Allocation - US Fixed Income | The Fund's fixed income exposure had less duration relative to the Bloomberg US Aggregate Bond Index from November 2023 to beginning of July 2024, when the Fund shifted to have greater duration exposure relative to the Bloomberg US Aggregate Bond Index. The timing of the duration positioning had a negative impact to the Fund's fixed income exposure.
Dynamic Multifactor - IMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, including Invesco's International Developed Dynamic Multifactor ETF (IMFL), was a detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections, driven by the 'recovery' regime's exposure to size and value factors from November 2023 through early July 2024.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Allocation Fund (Class Y) | 18.82% | 5.95%) | 5.09% |
| Custom Invesco Global Allocation Index | 23.28% | 7.04%) | 6.32% |
| Bloomberg Global Aggregate USD Hedged Index | 9.92% | 0.33%) | 2.12% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The Custom Invesco Global Allocation Index is composed of 60% MSCI All Country World Index/40% Bloomberg Global Aggregate USD Hedged Index.
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Global Allocation Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate USD Hedged Index to the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,020,710,405% |
| Total number of portfolio holdings | $319% |
| Total advisory fees paid | $6,560,632% |
| Portfolio turnover rate | $30% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco Russell 1000® Dynamic Multifactor ETF | 21.37% |
| U.S. Treasury Notes, 1.88%, 02/15/2032 | 14.33% |
| Invesco International Developed Dynamic Multifactor ETF | 13.86% |
| U.S. Treasury Notes, 4.38%, 05/15/2034 | 10.34% |
| U.S. Treasury Notes, 3.88%, 12/31/2029 | 6.62% |
| Invesco Russell 2000® Dynamic Multifactor ETF | 6.18% |
| Invesco High Yield Bond Factor ETF | 2.37% |
| U.S. Treasury Notes, 3.88%, 12/31/2027 | 2.28% |
| Invesco Emerging Markets Sovereign Debt ETF | 0.77% |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 0.68% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Allocation Fund
Class R5: GLALX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Allocation Fund
(Class R5) | $81 | 0.74%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity and fixed income markets posted positive results, with equities posting double digit gains for the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega-cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• Class R5 shares of the Invesco Global Allocation Fund Linked returned 19.00% for the fiscal year ended October 31, 2024, lagging the Custom Invesco Global Allocation Index (a blended benchmark of 60% MSCI All Country World Index (Net)/40% Bloomberg Global Aggregate Bond USD Hedged Index) return of 23.28% for the period. The Fund's relative underperformance for the fiscal year was primarily driven by factor allocation to the Invesco Dynamic Multifactor ETF suite.
What contributed to performance?
Asset Allocation - Tactical Asset Allocation | The Fund's tactical asset allocation contributed positively to relative performance, including the Fund’s exposure to equity, fixed income, and foreign exchange activity.
Asset Allocation - EM Sovereign Debt | The Fund's allocation to Invesco Emerging Markets Sovereign Debt ETF (PCY) was a positive driver of relative performance as EM fixed income outperformed US and Developed ex-US fixed income counterparts.
Manager Selection - US equity | The Fund's allocation to Invesco Discovery Mid-Cap Growth Fund posted positive relative security selection results in the US mid-cap growth universe.
What detracted from performance?
Dynamic Multifactor - OMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, specifically the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL), was the largest detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections. This resulted in being underweight the "Magnificent 7" stocks which have been the main driver of US equity market returns over the period.
Asset Allocation - US Fixed Income | The Fund's fixed income exposure had less duration relative to the Bloomberg US Aggregate Bond Index from November 2023 to beginning of July 2024, when the Fund shifted to have greater duration exposure relative to the Bloomberg US Aggregate Bond Index. The timing of the duration positioning had a negative impact to the Fund's fixed income exposure.
Dynamic Multifactor - IMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, including Invesco's International Developed Dynamic Multifactor ETF (IMFL), was a detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections, driven by the 'recovery' regime's exposure to size and value factors from November 2023 through early July 2024.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Allocation Fund (Class R5) | 19.00% | 6.11%) | 5.06% |
| Custom Invesco Global Allocation Index | 23.28% | 7.04%) | 6.32% |
| Bloomberg Global Aggregate USD Hedged Index | 9.92% | 0.33%) | 2.12% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The Custom Invesco Global Allocation Index is composed of 60% MSCI All Country World Index/40% Bloomberg Global Aggregate USD Hedged Index.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Global Allocation Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate USD Hedged Index to the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,020,710,405% |
| Total number of portfolio holdings | $319% |
| Total advisory fees paid | $6,560,632% |
| Portfolio turnover rate | $30% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco Russell 1000® Dynamic Multifactor ETF | 21.37% |
| U.S. Treasury Notes, 1.88%, 02/15/2032 | 14.33% |
| Invesco International Developed Dynamic Multifactor ETF | 13.86% |
| U.S. Treasury Notes, 4.38%, 05/15/2034 | 10.34% |
| U.S. Treasury Notes, 3.88%, 12/31/2029 | 6.62% |
| Invesco Russell 2000® Dynamic Multifactor ETF | 6.18% |
| Invesco High Yield Bond Factor ETF | 2.37% |
| U.S. Treasury Notes, 3.88%, 12/31/2027 | 2.28% |
| Invesco Emerging Markets Sovereign Debt ETF | 0.77% |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 0.68% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Allocation Fund
Class R6: QGRIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Allocation Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Allocation Fund
(Class R6) | $81 | 0.74%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity and fixed income markets posted positive results, with equities posting double digit gains for the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega-cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• Class R6 shares of the Invesco Global Allocation Fund returned 18.90% for the fiscal year ended October 31, 2024, lagging the Custom Invesco Global Allocation Index (a blended benchmark of 60% MSCI All Country World Index (Net)/40% Bloomberg Global Aggregate Bond USD Hedged Index) return of 23.28% for the period. The Fund's relative underperformance for the fiscal year was primarily driven by factor allocation to the Invesco Dynamic Multifactor ETF suite.
What contributed to performance?
Asset Allocation - Tactical Asset Allocation | The Fund's tactical asset allocation contributed positively to relative performance, including the Fund’s exposure to equity, fixed income, and foreign exchange activity.
Asset Allocation - EM Sovereign Debt | The Fund's allocation to Invesco Emerging Markets Sovereign Debt ETF (PCY) was a positive driver of relative performance as EM fixed income outperformed US and Developed ex-US fixed income counterparts.
Manager Selection - US equity | The Fund's allocation to Invesco Discovery Mid-Cap Growth Fund posted positive relative security selection results in the US mid-cap growth universe.
What detracted from performance?
Dynamic Multifactor - OMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, specifically the Invesco Russell 1000 Dynamic Multifactor ETF (OMFL), was the largest detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections. This resulted in being underweight the "Magnificent 7" stocks which have been the main driver of US equity market returns over the period.
Asset Allocation - US Fixed Income | The Fund's fixed income exposure had less duration relative to the Bloomberg US Aggregate Bond Index from November 2023 to beginning of July 2024, when the Fund shifted to have greater duration exposure relative to the Bloomberg US Aggregate Bond Index. The timing of the duration positioning had a negative impact to the Fund's fixed income exposure.
Dynamic Multifactor - IMFL | The Fund's allocation to Invesco Dynamic Multifactor ETF suite, including Invesco's International Developed Dynamic Multifactor ETF (IMFL), was a detractor from relative performance. Drivers of underperformance can be attributed to tactical factor allocations and factor security selections, driven by the 'recovery' regime's exposure to size and value factors from November 2023 through early July 2024.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Allocation Fund (Class R6) | 18.90% | 6.11%) | 5.26% |
| Custom Invesco Global Allocation Index | 23.28% | 7.04%) | 6.32% |
| Bloomberg Global Aggregate USD Hedged Index | 9.92% | 0.33%) | 2.12% |
| MSCI ACWI Index (Net) | 32.79% | 11.08%) | 9.06% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The Custom Invesco Global Allocation Index is composed of 60% MSCI All Country World Index/40% Bloomberg Global Aggregate USD Hedged Index.
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Global Allocation Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI Index (Net) and the Bloomberg Global Aggregate USD Hedged Index to the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) to reflect that the Bloomberg U.S. Aggregate Bond Index and the MSCI ACWI Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,020,710,405% |
| Total number of portfolio holdings | $319% |
| Total advisory fees paid | $6,560,632% |
| Portfolio turnover rate | $30% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco Russell 1000® Dynamic Multifactor ETF | 21.37% |
| U.S. Treasury Notes, 1.88%, 02/15/2032 | 14.33% |
| Invesco International Developed Dynamic Multifactor ETF | 13.86% |
| U.S. Treasury Notes, 4.38%, 05/15/2034 | 10.34% |
| U.S. Treasury Notes, 3.88%, 12/31/2029 | 6.62% |
| Invesco Russell 2000® Dynamic Multifactor ETF | 6.18% |
| Invesco High Yield Bond Factor ETF | 2.37% |
| U.S. Treasury Notes, 3.88%, 12/31/2027 | 2.28% |
| Invesco Emerging Markets Sovereign Debt ETF | 0.77% |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 0.68% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Infrastructure Fund
Class A: GIZAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Infrastructure Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Infrastructure Fund
(Class A) | $141 | 1.25%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fisal year ended October 31, 2024, the infrastructure market benefited from central bank interest rate cutting cycles which supported valuations that had been suppressed by the speed and magnitude of monetary tightening. Additionally, artificial intelligence (AI) data center demand and growth began to benefit sectors with exposure to data center power demand.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 25.03%. For the same time period, Dow Jones Brookfield Global Infrastructure Index returned 25.85%.
What contributed to performance?
Stock Selection | Relative outperformance was driven by stock selection and overweights to the airport and gas distribution sectors.
Sector Weighting | Underweights to tolls and electric utilities contributed to relative outperformance. Southern Company, a gas distribution company and an overweight for the Fund, was one of the largest relative performers as its growth expectations rose based on the expectation of the company to benefit from data center energy demand.
What detracted from performance?
Stock Selection | Stock selection within electric utilities detracted from performance due to exposure to Elia Group. The company's capital intensive plan to modernize their electric grid led to valuation declines amid a high interest rate environment.
Sector Weighting | An underweight to midstream services was the largest detractor from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Infrastructure Fund (Class A) —including sales charge | 18.15% | 2.50% | 3.55% |
| Invesco Global Infrastructure Fund (Class A) —excluding sales charge | 25.03% | 3.66% | 4.14% |
| Dow Jones Brookfield Global Infrastructure Index (Net) | 25.85% | 4.71% | 4.80% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $96,124,784% |
| Total number of portfolio holdings | $52% |
| Total advisory fees paid | $649,716% |
| Portfolio turnover rate | $193% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vinci S.A. | 6.87% |
| Enbridge, Inc. | 6.81% |
| American Tower Corp. | 6.02% |
| ONEOK, Inc. | 4.78% |
| Sempra | 4.60% |
| National Grid PLC | 3.71% |
| Cheniere Energy, Inc. | 3.53% |
| PG&E Corp. | 3.12% |
| Cellnex Telecom S.A. | 3.10% |
| TC Energy Corp. | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Infrastructure Fund
Class C: GIZCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Infrastructure Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Infrastructure Fund
(Class C) | $224 | 2.00%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fisal year ended October 31, 2024, the infrastructure market benefited from central bank interest rate cutting cycles which supported valuations that had been suppressed by the speed and magnitude of monetary tightening. Additionally, artificial intelligence (AI) data center demand and growth began to benefit sectors with exposure to data center power demand.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 24.15%. For the same time period, Dow Jones Brookfield Global Infrastructure Index returned 25.85%.
What contributed to performance?
Stock Selection | Relative outperformance was driven by stock selection and overweights to the airport and gas distribution sectors.
Sector Weighting | Underweights to tolls and electric utilities contributed to relative outperformance. Southern Company, a gas distribution company and an overweight for the Fund, was one of the largest relative performers as its growth expectations rose based on the expectation of the company to benefit from data center energy demand.
What detracted from performance?
Stock Selection | Stock selection within electric utilities detracted from performance due to exposure to Elia Group. The company's capital intensive plan to modernize their electric grid led to valuation declines amid a high interest rate environment.
Sector Weighting | An underweight to midstream services was the largest detractor from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Infrastructure Fund (Class C) —including sales charge | 23.15% | 2.89% | 3.51% |
| Invesco Global Infrastructure Fund (Class C) —excluding sales charge | 24.15% | 2.89% | 3.51% |
| Dow Jones Brookfield Global Infrastructure Index (Net) | 25.85% | 4.71% | 4.80% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $96,124,784% |
| Total number of portfolio holdings | $52% |
| Total advisory fees paid | $649,716% |
| Portfolio turnover rate | $193% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vinci S.A. | 6.87% |
| Enbridge, Inc. | 6.81% |
| American Tower Corp. | 6.02% |
| ONEOK, Inc. | 4.78% |
| Sempra | 4.60% |
| National Grid PLC | 3.71% |
| Cheniere Energy, Inc. | 3.53% |
| PG&E Corp. | 3.12% |
| Cellnex Telecom S.A. | 3.10% |
| TC Energy Corp. | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Infrastructure Fund
Class R: GIZRX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Infrastructure Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Infrastructure Fund
(Class R) | $169 | 1.50%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fisal year ended October 31, 2024, the infrastructure market benefited from central bank interest rate cutting cycles which supported valuations that had been suppressed by the speed and magnitude of monetary tightening. Additionally, artificial intelligence (AI) data center demand and growth began to benefit sectors with exposure to data center power demand.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 24.74%. For the same time period, Dow Jones Brookfield Global Infrastructure Index returned 25.85%.
What contributed to performance?
Stock Selection | Relative outperformance was driven by stock selection and overweights to the airport and gas distribution sectors.
Sector Weighting | Underweights to tolls and electric utilities contributed to relative outperformance. Southern Company, a gas distribution company and an overweight for the Fund, was one of the largest relative performers as its growth expectations rose based on the expectation of the company to benefit from data center energy demand.
What detracted from performance?
Stock Selection | Stock selection within electric utilities detracted from performance due to exposure to Elia Group. The company's capital intensive plan to modernize their electric grid led to valuation declines amid a high interest rate environment.
Sector Weighting | An underweight to midstream services was the largest detractor from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Infrastructure Fund (Class R) | 24.74% | 3.40% | 3.87% |
| Dow Jones Brookfield Global Infrastructure Index (Net) | 25.85% | 4.71% | 4.80% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $96,124,784% |
| Total number of portfolio holdings | $52% |
| Total advisory fees paid | $649,716% |
| Portfolio turnover rate | $193% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vinci S.A. | 6.87% |
| Enbridge, Inc. | 6.81% |
| American Tower Corp. | 6.02% |
| ONEOK, Inc. | 4.78% |
| Sempra | 4.60% |
| National Grid PLC | 3.71% |
| Cheniere Energy, Inc. | 3.53% |
| PG&E Corp. | 3.12% |
| Cellnex Telecom S.A. | 3.10% |
| TC Energy Corp. | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Infrastructure Fund
Class Y: GIZYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Infrastructure Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Infrastructure Fund
(Class Y) | $113 | 1.00%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fisal year ended October 31, 2024, the infrastructure market benefited from central bank interest rate cutting cycles which supported valuations that had been suppressed by the speed and magnitude of monetary tightening. Additionally, artificial intelligence (AI) data center demand and growth began to benefit sectors with exposure to data center power demand.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 25.44%. For the same time period, Dow Jones Brookfield Global Infrastructure Index returned 25.85%.
What contributed to performance?
Stock Selection | Relative outperformance was driven by stock selection and overweights to the airport and gas distribution sectors.
Sector Weighting | Underweights to tolls and electric utilities contributed to relative outperformance. Southern Company, a gas distribution company and an overweight for the Fund, was one of the largest relative performers as its growth expectations rose based on the expectation of the company to benefit from data center energy demand.
What detracted from performance?
Stock Selection | Stock selection within electric utilities detracted from performance due to exposure to Elia Group. The company's capital intensive plan to modernize their electric grid led to valuation declines amid a high interest rate environment.
Sector Weighting | An underweight to midstream services was the largest detractor from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Infrastructure Fund (Class Y) | 25.44% | 3.93% | 4.40% |
| Dow Jones Brookfield Global Infrastructure Index (Net) | 25.85% | 4.71% | 4.80% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $96,124,784% |
| Total number of portfolio holdings | $52% |
| Total advisory fees paid | $649,716% |
| Portfolio turnover rate | $193% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vinci S.A. | 6.87% |
| Enbridge, Inc. | 6.81% |
| American Tower Corp. | 6.02% |
| ONEOK, Inc. | 4.78% |
| Sempra | 4.60% |
| National Grid PLC | 3.71% |
| Cheniere Energy, Inc. | 3.53% |
| PG&E Corp. | 3.12% |
| Cellnex Telecom S.A. | 3.10% |
| TC Energy Corp. | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Infrastructure Fund
Class R5: GIZFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Infrastructure Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Infrastructure Fund
(Class R5) | $113 | 1.00%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fisal year ended October 31, 2024, the infrastructure market benefited from central bank interest rate cutting cycles which supported valuations that had been suppressed by the speed and magnitude of monetary tightening. Additionally, artificial intelligence (AI) data center demand and growth began to benefit sectors with exposure to data center power demand.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 25.42%. For the same time period, Dow Jones Brookfield Global Infrastructure Index returned 25.85%.
What contributed to performance?
Stock Selection | Relative outperformance was driven by stock selection and overweights to the airport and gas distribution sectors.
Sector Weighting | Underweights to tolls and electric utilities contributed to relative outperformance. Southern Company, a gas distribution company and an overweight for the Fund, was one of the largest relative performers as its growth expectations rose based on the expectation of the company to benefit from data center energy demand.
What detracted from performance?
Stock Selection | Stock selection within electric utilities detracted from performance due to exposure to Elia Group. The company's capital intensive plan to modernize their electric grid led to valuation declines amid a high interest rate environment.
Sector Weighting | An underweight to midstream services was the largest detractor from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Infrastructure Fund (Class R5) | 25.42% | 3.92% | 4.40% |
| Dow Jones Brookfield Global Infrastructure Index (Net) | 25.85% | 4.71% | 4.80% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $96,124,784% |
| Total number of portfolio holdings | $52% |
| Total advisory fees paid | $649,716% |
| Portfolio turnover rate | $193% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vinci S.A. | 6.87% |
| Enbridge, Inc. | 6.81% |
| American Tower Corp. | 6.02% |
| ONEOK, Inc. | 4.78% |
| Sempra | 4.60% |
| National Grid PLC | 3.71% |
| Cheniere Energy, Inc. | 3.53% |
| PG&E Corp. | 3.12% |
| Cellnex Telecom S.A. | 3.10% |
| TC Energy Corp. | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Infrastructure Fund
Class R6: GIZSX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Infrastructure Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Infrastructure Fund
(Class R6) | $113 | 1.00%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fisal year ended October 31, 2024, the infrastructure market benefited from central bank interest rate cutting cycles which supported valuations that had been suppressed by the speed and magnitude of monetary tightening. Additionally, artificial intelligence (AI) data center demand and growth began to benefit sectors with exposure to data center power demand.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 25.42%. For the same time period, Dow Jones Brookfield Global Infrastructure Index returned 25.85%.
What contributed to performance?
Stock Selection | Relative outperformance was driven by stock selection and overweights to the airport and gas distribution sectors.
Sector Weighting | Underweights to tolls and electric utilities contributed to relative outperformance. Southern Company, a gas distribution company and an overweight for the Fund, was one of the largest relative performers as its growth expectations rose based on the expectation of the company to benefit from data center energy demand.
What detracted from performance?
Stock Selection | Stock selection within electric utilities detracted from performance due to exposure to Elia Group. The company's capital intensive plan to modernize their electric grid led to valuation declines amid a high interest rate environment.
Sector Weighting | An underweight to midstream services was the largest detractor from relative performance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Infrastructure Fund (Class R6) | 25.42% | 3.93% | 4.40% |
| Dow Jones Brookfield Global Infrastructure Index (Net) | 25.85% | 4.71% | 4.80% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $96,124,784% |
| Total number of portfolio holdings | $52% |
| Total advisory fees paid | $649,716% |
| Portfolio turnover rate | $193% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vinci S.A. | 6.87% |
| Enbridge, Inc. | 6.81% |
| American Tower Corp. | 6.02% |
| ONEOK, Inc. | 4.78% |
| Sempra | 4.60% |
| National Grid PLC | 3.71% |
| Cheniere Energy, Inc. | 3.53% |
| PG&E Corp. | 3.12% |
| Cellnex Telecom S.A. | 3.10% |
| TC Energy Corp. | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Strategic Income Fund
Class A: OPSIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Strategic Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Strategic Income Fund
(Class A) | $110 | 1.05%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the global fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 9.92%. For the same time period, Bloomberg Global Aggregate Index returned 9.54%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Brazilian real and Euro.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the US and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Strategic Income Fund (Class A) —including sales charge | 5.28% | (1.02)% | 0.73% |
| Invesco Global Strategic Income Fund (Class A) —excluding sales charge | 9.92% | (0.14)% | 1.16% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Global Strategic Income Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,537,604,274% |
| Total number of portfolio holdings | $942% |
| Total advisory fees paid | $9,504,789% |
| Portfolio turnover rate | $278% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Government National Mortgage Association, TBA, 6.00%, 11/01/2054 | 21.97% |
| Uniform Mortgage-Backed Securities, TBA, 6.00%, 11/01/2054 | 20.33% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 5.29% |
| Government National Mortgage Association, TBA, 5.50%, 11/01/2054 | 2.75% |
| U.S. Treasury Notes, 4.50%, 11/30/2024 | 2.25% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 1.95% |
| Peru Government Bond, 6.15%, 08/12/2032 | 1.89% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 1.45% |
| Mortgage Funding PLC, Series 2008-1, Class B2, 8.30%, 03/13/2046 | 1.17% |
| Federal National Mortgage Association, 4.50%, 07/01/2052 | 1.05% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Strategic Income Fund
Class C: OSICX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Strategic Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Strategic Income Fund
(Class C) | $189 | 1.81%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the global fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 9.10%. For the same time period, Bloomberg Global Aggregate Index returned 9.54%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Brazilian real and Euro.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the US and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Strategic Income Fund (Class C) —including sales charge | 8.10% | (0.91)% | 0.54% |
| Invesco Global Strategic Income Fund (Class C) —excluding sales charge | 9.10% | (0.91)% | 0.54% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Global Strategic Income Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,537,604,274% |
| Total number of portfolio holdings | $942% |
| Total advisory fees paid | $9,504,789% |
| Portfolio turnover rate | $278% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Government National Mortgage Association, TBA, 6.00%, 11/01/2054 | 21.97% |
| Uniform Mortgage-Backed Securities, TBA, 6.00%, 11/01/2054 | 20.33% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 5.29% |
| Government National Mortgage Association, TBA, 5.50%, 11/01/2054 | 2.75% |
| U.S. Treasury Notes, 4.50%, 11/30/2024 | 2.25% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 1.95% |
| Peru Government Bond, 6.15%, 08/12/2032 | 1.89% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 1.45% |
| Mortgage Funding PLC, Series 2008-1, Class B2, 8.30%, 03/13/2046 | 1.17% |
| Federal National Mortgage Association, 4.50%, 07/01/2052 | 1.05% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Strategic Income Fund
Class R: OSINX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Strategic Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Strategic Income Fund
(Class R) | $137 | 1.31%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the global fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R shares of the Fund returned 9.62%. For the same time period, Bloomberg Global Aggregate Index returned 9.54%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Brazilian real and Euro.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the US and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Strategic Income Fund (Class R) | 9.62% | (0.40)% | 0.90% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Global Strategic Income Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,537,604,274% |
| Total number of portfolio holdings | $942% |
| Total advisory fees paid | $9,504,789% |
| Portfolio turnover rate | $278% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Government National Mortgage Association, TBA, 6.00%, 11/01/2054 | 21.97% |
| Uniform Mortgage-Backed Securities, TBA, 6.00%, 11/01/2054 | 20.33% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 5.29% |
| Government National Mortgage Association, TBA, 5.50%, 11/01/2054 | 2.75% |
| U.S. Treasury Notes, 4.50%, 11/30/2024 | 2.25% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 1.95% |
| Peru Government Bond, 6.15%, 08/12/2032 | 1.89% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 1.45% |
| Mortgage Funding PLC, Series 2008-1, Class B2, 8.30%, 03/13/2046 | 1.17% |
| Federal National Mortgage Association, 4.50%, 07/01/2052 | 1.05% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Strategic Income Fund
Class Y: OSIYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Strategic Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Strategic Income Fund
(Class Y) | $85 | 0.81%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the global fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class Y shares of the Fund returned 10.55%. For the same time period, Bloomberg Global Aggregate Index returned 9.54%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Brazilian real and Euro.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the US and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Strategic Income Fund (Class Y) | 10.55% | 0.10%) | 1.43% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Global Strategic Income Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,537,604,274% |
| Total number of portfolio holdings | $942% |
| Total advisory fees paid | $9,504,789% |
| Portfolio turnover rate | $278% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Government National Mortgage Association, TBA, 6.00%, 11/01/2054 | 21.97% |
| Uniform Mortgage-Backed Securities, TBA, 6.00%, 11/01/2054 | 20.33% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 5.29% |
| Government National Mortgage Association, TBA, 5.50%, 11/01/2054 | 2.75% |
| U.S. Treasury Notes, 4.50%, 11/30/2024 | 2.25% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 1.95% |
| Peru Government Bond, 6.15%, 08/12/2032 | 1.89% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 1.45% |
| Mortgage Funding PLC, Series 2008-1, Class B2, 8.30%, 03/13/2046 | 1.17% |
| Federal National Mortgage Association, 4.50%, 07/01/2052 | 1.05% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Strategic Income Fund
Class R5: GLSSX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Strategic Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Strategic Income Fund
(Class R5) | $74 | 0.70% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the global fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R5 shares of the Fund returned 10.29%. For the same time period, Bloomberg Global Aggregate Index returned 9.54%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Brazilian real and Euro.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the US and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Strategic Income Fund (Class R5) | 10.29% | 0.29%) | 1.39% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Global Strategic Income Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,537,604,274% |
| Total number of portfolio holdings | $942% |
| Total advisory fees paid | $9,504,789% |
| Portfolio turnover rate | $278% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Government National Mortgage Association, TBA, 6.00%, 11/01/2054 | 21.97% |
| Uniform Mortgage-Backed Securities, TBA, 6.00%, 11/01/2054 | 20.33% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 5.29% |
| Government National Mortgage Association, TBA, 5.50%, 11/01/2054 | 2.75% |
| U.S. Treasury Notes, 4.50%, 11/30/2024 | 2.25% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 1.95% |
| Peru Government Bond, 6.15%, 08/12/2032 | 1.89% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 1.45% |
| Mortgage Funding PLC, Series 2008-1, Class B2, 8.30%, 03/13/2046 | 1.17% |
| Federal National Mortgage Association, 4.50%, 07/01/2052 | 1.05% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Strategic Income Fund
Class R6: OSIIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Strategic Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Strategic Income Fund
(Class R6) | $74 | 0.70% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the global fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R6 shares of the Fund returned 10.68%. For the same time period, Bloomberg Global Aggregate Index returned 9.54%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Brazilian real and Euro.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in the US and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Strategic Income Fund (Class R6) | 10.68% | 0.26%) | 1.56% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Global Strategic Income Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,537,604,274% |
| Total number of portfolio holdings | $942% |
| Total advisory fees paid | $9,504,789% |
| Portfolio turnover rate | $278% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Government National Mortgage Association, TBA, 6.00%, 11/01/2054 | 21.97% |
| Uniform Mortgage-Backed Securities, TBA, 6.00%, 11/01/2054 | 20.33% |
| Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | 5.29% |
| Government National Mortgage Association, TBA, 5.50%, 11/01/2054 | 2.75% |
| U.S. Treasury Notes, 4.50%, 11/30/2024 | 2.25% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 1.95% |
| Peru Government Bond, 6.15%, 08/12/2032 | 1.89% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 1.45% |
| Mortgage Funding PLC, Series 2008-1, Class B2, 8.30%, 03/13/2046 | 1.17% |
| Federal National Mortgage Association, 4.50%, 07/01/2052 | 1.05% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of total investments)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Greater China Fund
Class A: AACFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Greater China Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Greater China Fund
(Class A) | $198 | 1.91%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• China's market remained weak for most of the reporting period amidst concerns regarding the property sector and economic growth, but staged a sharp rally in the final weeks of the reporting period following a series of stimulus measures introduced by the Chinese government aimed at stimulating the property and consumer sectors.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 6.81%. For the same time period, the MSCI China All Shares Index returned 18.47%.
What contributed to performance?
Tencent Holdings Ltd. | Tencent was one of the best contributors during the reporting period, benefiting from sustainable margin improvement from positive revenue mix shift, driving faster bottom-line growth than its top-line growth.
Zijin Mining Group Co. Ltd. | Zijin Mining rallied during the reporting period amidst higher gold prices and renewed demand and appetite for commodities. We see the company as a direct play for gold and copper where we see more secular demand over medium term.
What detracted from performance?
Luzhou Laojiao Co. Ltd. | Luzhou Laojiao is a leading baiju (white liquor) brand but exhibited weakness as demand for upscale liquor weakened due to modest economic conditions in China. We liked the company for its well-established branding power and saw opportunities for an uptrend as the property and consumer sectors recovered. However, we sold our shares before the fiscal year-end.
NetEase, Inc. | NetEase, a leading gaming company, had weak share price performance due to a lack of a blockbuster release during the reporting period. We continue to hold a constructive view of the company as it has successfully moved to a multi-genre strategy.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Greater China Fund (Class A) —including sales charge | 0.94% | (5.21)% | 0.98% |
| Invesco Greater China Fund (Class A) —excluding sales charge | 6.81% | (4.13)% | 1.55% |
| MSCI China All Shares Index (Net) | 18.47% | 0.29%) | 2.90% |
| MSCI China Index (Net) | 21.75% | (1.17)% | 2.35% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $55,090,472% |
| Total number of portfolio holdings | $76% |
| Total advisory fees paid | $496,478% |
| Portfolio turnover rate | $106% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Tencent Holdings Ltd. | 13.68% |
| Alibaba Group Holding Ltd. | 4.72% |
| Luxshare Precision Industry Co. Ltd., A Shares | 3.77% |
| China Yangtze Power Co. Ltd., A Shares | 3.59% |
| Sieyuan Electric Co. Ltd., A Shares | 3.44% |
| Zijin Mining Group Co. Ltd., A Shares | 3.39% |
| Meituan, B Shares | 3.24% |
| China Construction Bank Corp., H Shares | 2.91% |
| NARI Technology Co. Ltd., A Shares | 2.73% |
| NetEase, Inc. | 2.19% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would transfer all or substantially all of its assets and liabilities to Invesco EQV Asia Pacific Equity Fund (the "Acquiring Fund"). The reorganization is expected to be consummated at the close of business on or about February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). Upon closing of the reorganization, shareholders of the Fund will receive shares of a class of the Acquiring Fund that are equal in value to the shares of the corresponding class of the Fund that the shareholders held immediately prior to the closing of the reorganization, and the Fund will liquidate and cease operations.
The Fund's net expense ratio increased from the prior fiscal year end as a result of a change in operating expenses.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Greater China Fund
Class C: CACFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Greater China Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Greater China Fund
(Class C) | $273 | 2.65%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• China's market remained weak for most of the reporting period amidst concerns regarding the property sector and economic growth, but staged a sharp rally in the final weeks of the reporting period following a series of stimulus measures introduced by the Chinese government aimed at stimulating the property and consumer sectors.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 6.03%. For the same time period, the MSCI China All Shares Index returned 18.47%.
What contributed to performance?
Tencent Holdings Ltd. | Tencent was one of the best contributors during the reporting period, benefiting from sustainable margin improvement from positive revenue mix shift, driving faster bottom-line growth than its top-line growth.
Zijin Mining Group Co. Ltd. | Zijin Mining rallied during the reporting period amidst higher gold prices and renewed demand and appetite for commodities. We see the company as a direct play for gold and copper where we see more secular demand over medium term.
What detracted from performance?
Luzhou Laojiao Co. Ltd. | Luzhou Laojiao is a leading baiju (white liquor) brand but exhibited weakness as demand for upscale liquor weakened due to modest economic conditions in China. We liked the company for its well-established branding power and saw opportunities for an uptrend as the property and consumer sectors recovered. However, we sold our shares before the fiscal year-end.
NetEase, Inc. | NetEase, a leading gaming company, had weak share price performance due to a lack of a blockbuster release during the reporting period. We continue to hold a constructive view of the company as it has successfully moved to a multi-genre strategy.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Greater China Fund (Class C) —including sales charge | 5.03% | (4.83)% | 0.94% |
| Invesco Greater China Fund (Class C) —excluding sales charge | 6.03% | (4.83)% | 0.94% |
| MSCI China All Shares Index (Net) | 18.47% | 0.29%) | 2.90% |
| MSCI China Index (Net) | 21.75% | (1.17)% | 2.35% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $55,090,472% |
| Total number of portfolio holdings | $76% |
| Total advisory fees paid | $496,478% |
| Portfolio turnover rate | $106% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Tencent Holdings Ltd. | 13.68% |
| Alibaba Group Holding Ltd. | 4.72% |
| Luxshare Precision Industry Co. Ltd., A Shares | 3.77% |
| China Yangtze Power Co. Ltd., A Shares | 3.59% |
| Sieyuan Electric Co. Ltd., A Shares | 3.44% |
| Zijin Mining Group Co. Ltd., A Shares | 3.39% |
| Meituan, B Shares | 3.24% |
| China Construction Bank Corp., H Shares | 2.91% |
| NARI Technology Co. Ltd., A Shares | 2.73% |
| NetEase, Inc. | 2.19% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would transfer all or substantially all of its assets and liabilities to Invesco EQV Asia Pacific Equity Fund (the "Acquiring Fund"). The reorganization is expected to be consummated at the close of business on or about February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). Upon closing of the reorganization, shareholders of the Fund will receive shares of a class of the Acquiring Fund that are equal in value to the shares of the corresponding class of the Fund that the shareholders held immediately prior to the closing of the reorganization, and the Fund will liquidate and cease operations.
The Fund's net expense ratio increased from the prior fiscal year end as a result of a change in operating expenses.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Greater China Fund
Class R: IGCRX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Greater China Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Greater China Fund
(Class R) | $223 | 2.16%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• China's market remained weak for most of the reporting period amidst concerns regarding the property sector and economic growth, but staged a sharp rally in the final weeks of the reporting period following a series of stimulus measures introduced by the Chinese government aimed at stimulating the property and consumer sectors.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 6.49%. For the same time period, the MSCI China All Shares Index returned 18.47%.
What contributed to performance?
Tencent Holdings Ltd. | Tencent was one of the best contributors during the reporting period, benefiting from sustainable margin improvement from positive revenue mix shift, driving faster bottom-line growth than its top-line growth.
Zijin Mining Group Co. Ltd. | Zijin Mining rallied during the reporting period amidst higher gold prices and renewed demand and appetite for commodities. We see the company as a direct play for gold and copper where we see more secular demand over medium term.
What detracted from performance?
Luzhou Laojiao Co. Ltd. | Luzhou Laojiao is a leading baiju (white liquor) brand but exhibited weakness as demand for upscale liquor weakened due to modest economic conditions in China. We liked the company for its well-established branding power and saw opportunities for an uptrend as the property and consumer sectors recovered. However, we sold our shares before the fiscal year-end.
NetEase, Inc. | NetEase, a leading gaming company, had weak share price performance due to a lack of a blockbuster release during the reporting period. We continue to hold a constructive view of the company as it has successfully moved to a multi-genre strategy.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Greater China Fund (Class R) | 6.49% | (4.38)% | 1.30% |
| MSCI China All Shares Index (Net) | 18.47% | 0.29%) | 2.90% |
| MSCI China Index (Net) | 21.75% | (1.17)% | 2.35% |
Class R shares incepted on April 23, 2021. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares. Class R shares' returns of the Fund will be different from Class A shares' returns of the Fund as they have different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $55,090,472% |
| Total number of portfolio holdings | $76% |
| Total advisory fees paid | $496,478% |
| Portfolio turnover rate | $106% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Tencent Holdings Ltd. | 13.68% |
| Alibaba Group Holding Ltd. | 4.72% |
| Luxshare Precision Industry Co. Ltd., A Shares | 3.77% |
| China Yangtze Power Co. Ltd., A Shares | 3.59% |
| Sieyuan Electric Co. Ltd., A Shares | 3.44% |
| Zijin Mining Group Co. Ltd., A Shares | 3.39% |
| Meituan, B Shares | 3.24% |
| China Construction Bank Corp., H Shares | 2.91% |
| NARI Technology Co. Ltd., A Shares | 2.73% |
| NetEase, Inc. | 2.19% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would transfer all or substantially all of its assets and liabilities to Invesco EQV Asia Pacific Equity Fund (the "Acquiring Fund"). The reorganization is expected to be consummated at the close of business on or about February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). Upon closing of the reorganization, shareholders of the Fund will receive shares of a class of the Acquiring Fund that are equal in value to the shares of the corresponding class of the Fund that the shareholders held immediately prior to the closing of the reorganization, and the Fund will liquidate and cease operations.
The Fund's net expense ratio increased from the prior fiscal year end as a result of a change in operating expenses.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Greater China Fund
Class Y: AMCYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Greater China Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Greater China Fund
(Class Y) | $172 | 1.66%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• China's market remained weak for most of the reporting period amidst concerns regarding the property sector and economic growth, but staged a sharp rally in the final weeks of the reporting period following a series of stimulus measures introduced by the Chinese government aimed at stimulating the property and consumer sectors.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 7.01%. For the same time period, the MSCI China All Shares Index returned 18.47%.
What contributed to performance?
Tencent Holdings Ltd. | Tencent was one of the best contributors during the reporting period, benefiting from sustainable margin improvement from positive revenue mix shift, driving faster bottom-line growth than its top-line growth.
Zijin Mining Group Co. Ltd. | Zijin Mining rallied during the reporting period amidst higher gold prices and renewed demand and appetite for commodities. We see the company as a direct play for gold and copper where we see more secular demand over medium term.
What detracted from performance?
Luzhou Laojiao Co. Ltd. | Luzhou Laojiao is a leading baiju (white liquor) brand but exhibited weakness as demand for upscale liquor weakened due to modest economic conditions in China. We liked the company for its well-established branding power and saw opportunities for an uptrend as the property and consumer sectors recovered. However, we sold our shares before the fiscal year-end.
NetEase, Inc. | NetEase, a leading gaming company, had weak share price performance due to a lack of a blockbuster release during the reporting period. We continue to hold a constructive view of the company as it has successfully moved to a multi-genre strategy.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Greater China Fund (Class Y) | 7.01% | (3.90)% | 1.80% |
| MSCI China All Shares Index (Net) | 18.47% | 0.29%) | 2.90% |
| MSCI China Index (Net) | 21.75% | (1.17)% | 2.35% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $55,090,472% |
| Total number of portfolio holdings | $76% |
| Total advisory fees paid | $496,478% |
| Portfolio turnover rate | $106% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Tencent Holdings Ltd. | 13.68% |
| Alibaba Group Holding Ltd. | 4.72% |
| Luxshare Precision Industry Co. Ltd., A Shares | 3.77% |
| China Yangtze Power Co. Ltd., A Shares | 3.59% |
| Sieyuan Electric Co. Ltd., A Shares | 3.44% |
| Zijin Mining Group Co. Ltd., A Shares | 3.39% |
| Meituan, B Shares | 3.24% |
| China Construction Bank Corp., H Shares | 2.91% |
| NARI Technology Co. Ltd., A Shares | 2.73% |
| NetEase, Inc. | 2.19% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would transfer all or substantially all of its assets and liabilities to Invesco EQV Asia Pacific Equity Fund (the "Acquiring Fund"). The reorganization is expected to be consummated at the close of business on or about February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). Upon closing of the reorganization, shareholders of the Fund will receive shares of a class of the Acquiring Fund that are equal in value to the shares of the corresponding class of the Fund that the shareholders held immediately prior to the closing of the reorganization, and the Fund will liquidate and cease operations.
The Fund's net expense ratio increased from the prior fiscal year end as a result of a change in operating expenses.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Greater China Fund
Class R6: CACSX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Greater China Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Greater China Fund
(Class R6) | $152 | 1.47% |
How Did The Fund Perform During The Period?
• China's market remained weak for most of the reporting period amidst concerns regarding the property sector and economic growth, but staged a sharp rally in the final weeks of the reporting period following a series of stimulus measures introduced by the Chinese government aimed at stimulating the property and consumer sectors.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 7.31%. For the same time period, the MSCI China All Shares Index returned 18.47%.
What contributed to performance?
Tencent Holdings Ltd. | Tencent was one of the best contributors during the reporting period, benefiting from sustainable margin improvement from positive revenue mix shift, driving faster bottom-line growth than its top-line growth.
Zijin Mining Group Co. Ltd. | Zijin Mining rallied during the reporting period amidst higher gold prices and renewed demand and appetite for commodities. We see the company as a direct play for gold and copper where we see more secular demand over medium term.
What detracted from performance?
Luzhou Laojiao Co. Ltd. | Luzhou Laojiao is a leading baiju (white liquor) brand but exhibited weakness as demand for upscale liquor weakened due to modest economic conditions in China. We liked the company for its well-established branding power and saw opportunities for an uptrend as the property and consumer sectors recovered. However, we sold our shares before the fiscal year-end.
NetEase, Inc. | NetEase, a leading gaming company, had weak share price performance due to a lack of a blockbuster release during the reporting period. We continue to hold a constructive view of the company as it has successfully moved to a multi-genre strategy.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Greater China Fund (Class R6) | 7.31% | (3.73)% | 1.87% |
| MSCI China All Shares Index (Net) | 18.47% | 0.29%) | 2.90% |
| MSCI China Index (Net) | 21.75% | (1.17)% | 2.35% |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares. Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund as they have different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $55,090,472% |
| Total number of portfolio holdings | $76% |
| Total advisory fees paid | $496,478% |
| Portfolio turnover rate | $106% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Tencent Holdings Ltd. | 13.68% |
| Alibaba Group Holding Ltd. | 4.72% |
| Luxshare Precision Industry Co. Ltd., A Shares | 3.77% |
| China Yangtze Power Co. Ltd., A Shares | 3.59% |
| Sieyuan Electric Co. Ltd., A Shares | 3.44% |
| Zijin Mining Group Co. Ltd., A Shares | 3.39% |
| Meituan, B Shares | 3.24% |
| China Construction Bank Corp., H Shares | 2.91% |
| NARI Technology Co. Ltd., A Shares | 2.73% |
| NetEase, Inc. | 2.19% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would transfer all or substantially all of its assets and liabilities to Invesco EQV Asia Pacific Equity Fund (the "Acquiring Fund"). The reorganization is expected to be consummated at the close of business on or about February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). Upon closing of the reorganization, shareholders of the Fund will receive shares of a class of the Acquiring Fund that are equal in value to the shares of the corresponding class of the Fund that the shareholders held immediately prior to the closing of the reorganization, and the Fund will liquidate and cease operations.
The Fund's net expense ratio increased from the prior fiscal year end as a result of a change in operating expenses.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Health Care Fund
Class A: GGHCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Health Care Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Health Care Fund
(Class A) | $115 | 1.04% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, U.S. health care equities were up over 20% led by health care facilities, equipment and biotechnology. The Fund outperformed the S&P Composite 1500® Health Care Index primarily due to strong stock selection in health care equipment and pharmaceuticals, as well as an overweight allocation to health care facilities. These results were partially offset by weaker stock selection within the life science tools and services industry.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 21.31%. For the same time period, the S&P Composite 1500® Health Care Index returned 20.04%.
What contributed to performance?
Eli Lilly and Co. | Eli Lilly is a large-cap pharmaceutical company that makes drugs to treat Alzheimer’s, cancer, diabetes, obesity, pain and autoimmune diseases. The company posted better-than-expected earnings and raised its 2024 guidance due to continued success and expansion of its obesity treatments.
Boston Scientific Corp. | Boston Scientific makes surgical devices and medical equipment to treat cardiovascular, gastrointestinal and pulmonological conditions. The company reported better-than-expected organic growth in its cardiovascular segment, driven by strength in FARAPULSE, its recently launched pulsed field ablation system.
What detracted from performance?
Humana | Humana provides Medicare and Medicaid health insurance and prescription services. The stock declined after the company’s announcement of a worse-than-expected medical loss ratio driven by higher-than-expected utilization of its Medicare Advantage plans. We exited our position during the fiscal year.
Elevance Health, Inc. | Elevance Health provides health care insurance across a collection of brands and end markets, including Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon. The stock declined after the company reported a higher-than-expected medical loss ratio in its Medicaid business, which negatively impacted both third quarter results and forward guidance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Health Care Fund (Class A) —including sales charge | 14.65% | 6.05% | 5.35% |
| Invesco Health Care Fund (Class A) —excluding sales charge | 21.31% | 7.25% | 5.95% |
| S&P Composite 1500® Health Care Index | 20.04% | 10.81% | 10.06% |
| MSCI World Health Care Index (Net) | 19.94% | 9.44% | 8.17% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,310,232,392% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $8,373,997% |
| Portfolio turnover rate | $56% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Eli Lilly and Co. | 9.23% |
| Boston Scientific Corp. | 6.94% |
| UnitedHealth Group, Inc. | 5.91% |
| Intuitive Surgical, Inc. | 4.90% |
| Danaher Corp. | 4.26% |
| AbbVie, Inc. | 4.16% |
| Vertex Pharmaceuticals, Inc. | 4.08% |
| Thermo Fisher Scientific, Inc. | 3.42% |
| AstraZeneca PLC, ADR | 3.39% |
| HCA Healthcare, Inc. | 2.96% |
| * Excluding money market fund holdings, if any. | |
Industry allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Health Care Fund
Class C: GTHCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Health Care Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Health Care Fund
(Class C) | $197 | 1.79% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, U.S. health care equities were up over 20% led by health care facilities, equipment and biotechnology. The Fund outperformed the S&P Composite 1500® Health Care Index primarily due to strong stock selection in health care equipment and pharmaceuticals, as well as an overweight allocation to health care facilities. These results were partially offset by weaker stock selection within the life science tools and services industry.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 20.44%. For the same time period, the S&P Composite 1500® Health Care Index returned 20.04%.
What contributed to performance?
Eli Lilly and Co. | Eli Lilly is a large-cap pharmaceutical company that makes drugs to treat Alzheimer’s, cancer, diabetes, obesity, pain and autoimmune diseases. The company posted better-than-expected earnings and raised its 2024 guidance due to continued success and expansion of its obesity treatments.
Boston Scientific Corp. | Boston Scientific makes surgical devices and medical equipment to treat cardiovascular, gastrointestinal and pulmonological conditions. The company reported better-than-expected organic growth in its cardiovascular segment, driven by strength in FARAPULSE, its recently launched pulsed field ablation system.
What detracted from performance?
Humana | Humana provides Medicare and Medicaid health insurance and prescription services. The stock declined after the company’s announcement of a worse-than-expected medical loss ratio driven by higher-than-expected utilization of its Medicare Advantage plans. We exited our position during the fiscal year.
Elevance Health, Inc. | Elevance Health provides health care insurance across a collection of brands and end markets, including Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon. The stock declined after the company reported a higher-than-expected medical loss ratio in its Medicaid business, which negatively impacted both third quarter results and forward guidance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Health Care Fund (Class C) —including sales charge | 19.44% | 6.46% | 5.32% |
| Invesco Health Care Fund (Class C) —excluding sales charge | 20.44% | 6.46% | 5.32% |
| S&P Composite 1500® Health Care Index | 20.04% | 10.81% | 10.06% |
| MSCI World Health Care Index (Net) | 19.94% | 9.44% | 8.17% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,310,232,392% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $8,373,997% |
| Portfolio turnover rate | $56% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Eli Lilly and Co. | 9.23% |
| Boston Scientific Corp. | 6.94% |
| UnitedHealth Group, Inc. | 5.91% |
| Intuitive Surgical, Inc. | 4.90% |
| Danaher Corp. | 4.26% |
| AbbVie, Inc. | 4.16% |
| Vertex Pharmaceuticals, Inc. | 4.08% |
| Thermo Fisher Scientific, Inc. | 3.42% |
| AstraZeneca PLC, ADR | 3.39% |
| HCA Healthcare, Inc. | 2.96% |
| * Excluding money market fund holdings, if any. | |
Industry allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Health Care Fund
Class Y: GGHYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Health Care Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Health Care Fund
(Class Y) | $88 | 0.79% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, U.S. health care equities were up over 20% led by health care facilities, equipment and biotechnology. The Fund outperformed the S&P Composite 1500® Health Care Index primarily due to strong stock selection in health care equipment and pharmaceuticals, as well as an overweight allocation to health care facilities. These results were partially offset by weaker stock selection within the life science tools and services industry.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 21.61%. For the same time period, the S&P Composite 1500® Health Care Index returned 20.04%.
What contributed to performance?
Eli Lilly and Co. | Eli Lilly is a large-cap pharmaceutical company that makes drugs to treat Alzheimer’s, cancer, diabetes, obesity, pain and autoimmune diseases. The company posted better-than-expected earnings and raised its 2024 guidance due to continued success and expansion of its obesity treatments.
Boston Scientific Corp. | Boston Scientific makes surgical devices and medical equipment to treat cardiovascular, gastrointestinal and pulmonological conditions. The company reported better-than-expected organic growth in its cardiovascular segment, driven by strength in FARAPULSE, its recently launched pulsed field ablation system.
What detracted from performance?
Humana | Humana provides Medicare and Medicaid health insurance and prescription services. The stock declined after the company’s announcement of a worse-than-expected medical loss ratio driven by higher-than-expected utilization of its Medicare Advantage plans. We exited our position during the fiscal year.
Elevance Health, Inc. | Elevance Health provides health care insurance across a collection of brands and end markets, including Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon. The stock declined after the company reported a higher-than-expected medical loss ratio in its Medicaid business, which negatively impacted both third quarter results and forward guidance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Health Care Fund (Class Y) | 21.61% | 7.53% | 6.21% |
| S&P Composite 1500® Health Care Index | 20.04% | 10.81% | 10.06% |
| MSCI World Health Care Index (Net) | 19.94% | 9.44% | 8.17% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,310,232,392% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $8,373,997% |
| Portfolio turnover rate | $56% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Eli Lilly and Co. | 9.23% |
| Boston Scientific Corp. | 6.94% |
| UnitedHealth Group, Inc. | 5.91% |
| Intuitive Surgical, Inc. | 4.90% |
| Danaher Corp. | 4.26% |
| AbbVie, Inc. | 4.16% |
| Vertex Pharmaceuticals, Inc. | 4.08% |
| Thermo Fisher Scientific, Inc. | 3.42% |
| AstraZeneca PLC, ADR | 3.39% |
| HCA Healthcare, Inc. | 2.96% |
| * Excluding money market fund holdings, if any. | |
Industry allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Health Care Fund
Investor Class: GTHIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Health Care Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Health Care Fund
(Investor Class) | $115 | 1.04% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, U.S. health care equities were up over 20% led by health care facilities, equipment and biotechnology. The Fund outperformed the S&P Composite 1500® Health Care Index primarily due to strong stock selection in health care equipment and pharmaceuticals, as well as an overweight allocation to health care facilities. These results were partially offset by weaker stock selection within the life science tools and services industry.
• For the fiscal year ended October 31, 2024, Investor Class shares of the Fund returned 21.30%. For the same time period, the S&P Composite 1500® Health Care Index returned 20.04%.
What contributed to performance?
Eli Lilly and Co. | Eli Lilly is a large-cap pharmaceutical company that makes drugs to treat Alzheimer’s, cancer, diabetes, obesity, pain and autoimmune diseases. The company posted better-than-expected earnings and raised its 2024 guidance due to continued success and expansion of its obesity treatments.
Boston Scientific Corp. | Boston Scientific makes surgical devices and medical equipment to treat cardiovascular, gastrointestinal and pulmonological conditions. The company reported better-than-expected organic growth in its cardiovascular segment, driven by strength in FARAPULSE, its recently launched pulsed field ablation system.
What detracted from performance?
Humana | Humana provides Medicare and Medicaid health insurance and prescription services. The stock declined after the company’s announcement of a worse-than-expected medical loss ratio driven by higher-than-expected utilization of its Medicare Advantage plans. We exited our position during the fiscal year.
Elevance Health, Inc. | Elevance Health provides health care insurance across a collection of brands and end markets, including Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon. The stock declined after the company reported a higher-than-expected medical loss ratio in its Medicaid business, which negatively impacted both third quarter results and forward guidance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Health Care Fund (Investor Class) | 21.30% | 7.25% | 5.95% |
| S&P Composite 1500® Health Care Index | 20.04% | 10.81% | 10.06% |
| MSCI World Health Care Index (Net) | 19.94% | 9.44% | 8.17% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,310,232,392% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $8,373,997% |
| Portfolio turnover rate | $56% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Eli Lilly and Co. | 9.23% |
| Boston Scientific Corp. | 6.94% |
| UnitedHealth Group, Inc. | 5.91% |
| Intuitive Surgical, Inc. | 4.90% |
| Danaher Corp. | 4.26% |
| AbbVie, Inc. | 4.16% |
| Vertex Pharmaceuticals, Inc. | 4.08% |
| Thermo Fisher Scientific, Inc. | 3.42% |
| AstraZeneca PLC, ADR | 3.39% |
| HCA Healthcare, Inc. | 2.96% |
| * Excluding money market fund holdings, if any. | |
Industry allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Health Care Fund
Class R6: GGHSX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Health Care Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Health Care Fund
(Class R6) | $78 | 0.70% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, U.S. health care equities were up over 20% led by health care facilities, equipment and biotechnology. The Fund outperformed the S&P Composite 1500® Health Care Index primarily due to strong stock selection in health care equipment and pharmaceuticals, as well as an overweight allocation to health care facilities. These results were partially offset by weaker stock selection within the life science tools and services industry.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 21.74%. For the same time period, the S&P Composite 1500® Health Care Index returned 20.04%.
What contributed to performance?
Eli Lilly and Co. | Eli Lilly is a large-cap pharmaceutical company that makes drugs to treat Alzheimer’s, cancer, diabetes, obesity, pain and autoimmune diseases. The company posted better-than-expected earnings and raised its 2024 guidance due to continued success and expansion of its obesity treatments.
Boston Scientific Corp. | Boston Scientific makes surgical devices and medical equipment to treat cardiovascular, gastrointestinal and pulmonological conditions. The company reported better-than-expected organic growth in its cardiovascular segment, driven by strength in FARAPULSE, its recently launched pulsed field ablation system.
What detracted from performance?
Humana | Humana provides Medicare and Medicaid health insurance and prescription services. The stock declined after the company’s announcement of a worse-than-expected medical loss ratio driven by higher-than-expected utilization of its Medicare Advantage plans. We exited our position during the fiscal year.
Elevance Health, Inc. | Elevance Health provides health care insurance across a collection of brands and end markets, including Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon. The stock declined after the company reported a higher-than-expected medical loss ratio in its Medicaid business, which negatively impacted both third quarter results and forward guidance.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Health Care Fund (Class R6) | 21.74% | 7.62% | 6.21% |
| S&P Composite 1500® Health Care Index | 20.04% | 10.81% | 10.06% |
| MSCI World Health Care Index (Net) | 19.94% | 9.44% | 8.17% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares. Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund as they have different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,310,232,392% |
| Total number of portfolio holdings | $82% |
| Total advisory fees paid | $8,373,997% |
| Portfolio turnover rate | $56% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Eli Lilly and Co. | 9.23% |
| Boston Scientific Corp. | 6.94% |
| UnitedHealth Group, Inc. | 5.91% |
| Intuitive Surgical, Inc. | 4.90% |
| Danaher Corp. | 4.26% |
| AbbVie, Inc. | 4.16% |
| Vertex Pharmaceuticals, Inc. | 4.08% |
| Thermo Fisher Scientific, Inc. | 3.42% |
| AstraZeneca PLC, ADR | 3.39% |
| HCA Healthcare, Inc. | 2.96% |
| * Excluding money market fund holdings, if any. | |
Industry allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Bond Fund
Class A: OIBAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Bond Fund
(Class A) | $108 | 1.04%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the international fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 8.28%. For the same time period, Custom Invesco International Bond Index returned of 10.42%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Japanese yen and Brazilian real.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in Argentina and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Bond Fund (Class A) —including sales charge | 3.78% | (2.26)% | 0.11%) |
| Invesco International Bond Fund (Class A) —excluding sales charge | 8.28% | (1.39)% | 0.55%) |
| FTSE Non-U.S. Dollar World Government Bond Index | 8.36% | (4.41)% | (1.45)% |
| Custom Invesco International Bond Index | 10.42% | (2.32)% | (0.07)% |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| JP Morgan EMBI Global Diversified Index | 18.16% | 0.47%) | 2.92%) |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer International Bond Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the FTSE Non-U.S. Dollar World Government Bond Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,056,783,345% |
| Total number of portfolio holdings | $448% |
| Total advisory fees paid | $6,241,844% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Spain Government Bond, 2.80%, 05/31/2026 | 5.27% |
| Australia Government Bond, Series 142, 4.25%, 04/21/2026 | 5.21% |
| United Kingdom Gilt, 3.50%, 10/22/2025 | 5.19% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 3.92% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 3.85% |
| U.S. Treasury Bills, 4.51%, 01/30/2025 | 3.75% |
| U.S. Treasury Bills, 4.78%, 01/30/2025 | 3.70% |
| Colombian TES, Series B, 7.75%, 09/18/2030 | 3.35% |
| Province of Quebec, 5.35%, 06/01/2025 | 1.99% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Bond Fund
Class C: OIBCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Bond Fund
(Class C) | $186 | 1.79%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the international fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 7.50%. For the same time period, Custom Invesco International Bond Index returned of 10.42%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Japanese yen and Brazilian real.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in Argentina and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Bond Fund (Class C) —including sales charge | 6.50% | (2.15)% | (0.07)% |
| Invesco International Bond Fund (Class C) —excluding sales charge | 7.50% | (2.15)% | (0.07)% |
| FTSE Non-U.S. Dollar World Government Bond Index | 8.36% | (4.41)% | (1.45)% |
| Custom Invesco International Bond Index | 10.42% | (2.32)% | (0.07)% |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| JP Morgan EMBI Global Diversified Index | 18.16% | 0.47%) | 2.92%) |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer International Bond Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the FTSE Non-U.S. Dollar World Government Bond Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,056,783,345% |
| Total number of portfolio holdings | $448% |
| Total advisory fees paid | $6,241,844% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Spain Government Bond, 2.80%, 05/31/2026 | 5.27% |
| Australia Government Bond, Series 142, 4.25%, 04/21/2026 | 5.21% |
| United Kingdom Gilt, 3.50%, 10/22/2025 | 5.19% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 3.92% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 3.85% |
| U.S. Treasury Bills, 4.51%, 01/30/2025 | 3.75% |
| U.S. Treasury Bills, 4.78%, 01/30/2025 | 3.70% |
| Colombian TES, Series B, 7.75%, 09/18/2030 | 3.35% |
| Province of Quebec, 5.35%, 06/01/2025 | 1.99% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Bond Fund
Class R: OIBNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Bond Fund
(Class R) | $134 | 1.29%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the international fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R shares of the Fund returned 8.28%. For the same time period, Custom Invesco International Bond Index returned 10.42%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Japanese yen and Brazilian real.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in Argentina and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Bond Fund (Class R) | 8.28% | (1.65)% | 0.29%) |
| FTSE Non-U.S. Dollar World Government Bond Index | 8.36% | (4.41)% | (1.45)% |
| Custom Invesco International Bond Index | 10.42% | (2.32)% | (0.07)% |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| JP Morgan EMBI Global Diversified Index | 18.16% | 0.47%) | 2.92%) |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer International Bond Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the FTSE Non-U.S. Dollar World Government Bond Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,056,783,345% |
| Total number of portfolio holdings | $448% |
| Total advisory fees paid | $6,241,844% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Spain Government Bond, 2.80%, 05/31/2026 | 5.27% |
| Australia Government Bond, Series 142, 4.25%, 04/21/2026 | 5.21% |
| United Kingdom Gilt, 3.50%, 10/22/2025 | 5.19% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 3.92% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 3.85% |
| U.S. Treasury Bills, 4.51%, 01/30/2025 | 3.75% |
| U.S. Treasury Bills, 4.78%, 01/30/2025 | 3.70% |
| Colombian TES, Series B, 7.75%, 09/18/2030 | 3.35% |
| Province of Quebec, 5.35%, 06/01/2025 | 1.99% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Bond Fund
Class Y: OIBYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Bond Fund
(Class Y) | $82 | 0.79%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the international fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class Y shares of the Fund returned 8.81%. For the same time period, Custom Invesco International Bond Index returned 10.42%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Japanese yen and Brazilian real.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in Argentina and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Bond Fund (Class Y) | 8.81% | (1.14)% | 0.80%) |
| FTSE Non-U.S. Dollar World Government Bond Index | 8.36% | (4.41)% | (1.45)% |
| Custom Invesco International Bond Index | 10.42% | (2.32)% | (0.07)% |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| JP Morgan EMBI Global Diversified Index | 18.16% | 0.47%) | 2.92%) |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer International Bond Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the FTSE Non-U.S. Dollar World Government Bond Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,056,783,345% |
| Total number of portfolio holdings | $448% |
| Total advisory fees paid | $6,241,844% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Spain Government Bond, 2.80%, 05/31/2026 | 5.27% |
| Australia Government Bond, Series 142, 4.25%, 04/21/2026 | 5.21% |
| United Kingdom Gilt, 3.50%, 10/22/2025 | 5.19% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 3.92% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 3.85% |
| U.S. Treasury Bills, 4.51%, 01/30/2025 | 3.75% |
| U.S. Treasury Bills, 4.78%, 01/30/2025 | 3.70% |
| Colombian TES, Series B, 7.75%, 09/18/2030 | 3.35% |
| Province of Quebec, 5.35%, 06/01/2025 | 1.99% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Bond Fund
Class R5: INBQX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Bond Fund
(Class R5) | $82 | 0.79%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the international fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R5 shares of the Fund returned 8.56%. For the same time period, Custom Invesco International Bond Index returned 10.42%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Japanese yen and Brazilian real.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in Argentina and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Bond Fund (Class R5) | 8.56% | (1.08)% | 0.71%) |
| FTSE Non-U.S. Dollar World Government Bond Index | 8.36% | (4.41)% | (1.45)% |
| Custom Invesco International Bond Index | 10.42% | (2.32)% | (0.07)% |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| JP Morgan EMBI Global Diversified Index | 18.16% | 0.47%) | 2.92%) |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer International Bond Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the FTSE Non-U.S. Dollar World Government Bond Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,056,783,345% |
| Total number of portfolio holdings | $448% |
| Total advisory fees paid | $6,241,844% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Spain Government Bond, 2.80%, 05/31/2026 | 5.27% |
| Australia Government Bond, Series 142, 4.25%, 04/21/2026 | 5.21% |
| United Kingdom Gilt, 3.50%, 10/22/2025 | 5.19% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 3.92% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 3.85% |
| U.S. Treasury Bills, 4.51%, 01/30/2025 | 3.75% |
| U.S. Treasury Bills, 4.78%, 01/30/2025 | 3.70% |
| Colombian TES, Series B, 7.75%, 09/18/2030 | 3.35% |
| Province of Quebec, 5.35%, 06/01/2025 | 1.99% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Bond Fund
Class R6: OIBIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Bond Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Bond Fund
(Class R6) | $80 | 0.77% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the international fixed income market broadly benefited from an environment of global growth, continued disinflation and easing financial conditions, despite heightened political uncertainty amidst a wide array of elections globally. Importantly, the US Federal Reserve and other developed market central banks pivoted to monetary easing, which gave emerging market central banks more confidence in responding to their domestic conditions. We believe diverging inflation and growth dynamics across economies create compelling opportunities.
• For the fiscal year ended, October 31, 2024, Class R6 shares of the Fund returned 8.60%. For the same time period, Custom Invesco International Bond Index returned 10.42%.
What contributed to performance?
Credit Exposure | The top contributors to relative return were credit exposures in the European Union and UK.
Foreign Currency Exposure | The top contributors to relative return were positioning in the Turkish lira and South African rand.
Interest Rate Positioning | The top contributors to relative return were interest rate positioning in the European Union and South Africa.
What detracted from performance?
Credit Exposure | The top detractors to relative return were credit exposures in Argentina and Italy.
Foreign Currency Exposure | The top detractors to relative return were positioning in the Japanese yen and Brazilian real.
Interest Rate Positioning | The top detractors to relative return were interest rate positioning in Argentina and China.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Bond Fund (Class R6) | 8.60% | (1.09)% | 0.92%) |
| FTSE Non-U.S. Dollar World Government Bond Index | 8.36% | (4.41)% | (1.45)% |
| Custom Invesco International Bond Index | 10.42% | (2.32)% | (0.07)% |
| JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index | 8.76% | (0.92)% | (0.06)% |
| JP Morgan EMBI Global Diversified Index | 18.16% | 0.47%) | 2.92%) |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer International Bond Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the FTSE Non-U.S. Dollar World Government Bond Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,056,783,345% |
| Total number of portfolio holdings | $448% |
| Total advisory fees paid | $6,241,844% |
| Portfolio turnover rate | $102% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Spain Government Bond, 2.80%, 05/31/2026 | 5.27% |
| Australia Government Bond, Series 142, 4.25%, 04/21/2026 | 5.21% |
| United Kingdom Gilt, 3.50%, 10/22/2025 | 5.19% |
| Republic of South Africa Government Bond, Series 2040, 9.00%, 01/31/2040 | 4.19% |
| Peru Government Bond, 6.15%, 08/12/2032 | 3.92% |
| Republic of South Africa Government Bond, Series 2032, 8.25%, 03/31/2032 | 3.85% |
| U.S. Treasury Bills, 4.51%, 01/30/2025 | 3.75% |
| U.S. Treasury Bills, 4.78%, 01/30/2025 | 3.70% |
| Colombian TES, Series B, 7.75%, 09/18/2030 | 3.35% |
| Province of Quebec, 5.35%, 06/01/2025 | 1.99% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Macro Allocation Strategy Fund
Class A: GMSDX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Macro Allocation Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Macro Allocation Strategy Fund
(Class A) | $142 | 1.39%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 3.71%. For the same time period, the Bloomberg 3-month Treasury Bellwether Index returned 5.43%.
What contributed to performance?
Diversified Defensive Exposures | The Fund’s diversified defensive component contributed to results in aggregate due to the long-only exposure to government bonds and the optimized commodity futures roll strategy.
Long Exposure to Global Equities | The Fund’s long exposure to global equity market indices during the period also contributed to results. Japanese equities were the top contributor, driven by investor-friendly corporate reforms and government incentives.
What detracted from performance?
Adaptive Positioning | The Fund's adaptive positioning as a whole detracted from performance due to losses from exposure to government bonds and commodities. Bonds and commodities oscillated during the period, making month-to-month positioning a challenge.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Macro Allocation Strategy Fund (Class A) —including sales charge | (1.97)% | (1.97)% | 0.78% |
| Invesco Macro Allocation Strategy Fund (Class A) —excluding sales charge | 3.71%) | (0.86)% | 1.35% |
| Bloomberg 3-month Treasury Bellwether Index | 5.43%) | 2.40%) | 1.72% |
| Bloomberg U.S. Aggregate Bond Index | 10.55%) | (0.23)% | 1.49% |
Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the Bloomberg 3-month Treasury Bellwether Index to the Bloomberg U.S. Aggregate Bond Index to reflect that the Bloomberg U.S. Aggregate Bond Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $157,013,598% |
| Total number of portfolio holdings | $73% |
| Total advisory fees paid | $1,450,445% |
| Portfolio turnover rate | $76% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
| Asset Class | Notional Asset Weights |
| Equities | 42.01% |
| Fixed Income | 67.19 |
| Commodities | 42.04 |
| Options | 12.69 |
| Total | 163.93% |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Macro Allocation Strategy Fund
Class C: GMSEX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Macro Allocation Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Macro Allocation Strategy Fund
(Class C) | $217 | 2.14%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 2.97%. For the same time period, the Bloomberg 3-month Treasury Bellwether Index returned 5.43%.
What contributed to performance?
Diversified Defensive Exposures | The Fund’s diversified defensive component contributed to results in aggregate due to the long-only exposure to government bonds and the optimized commodity futures roll strategy.
Long Exposure to Global Equities | The Fund’s long exposure to global equity market indices during the period also contributed to results. Japanese equities were the top contributor, driven by investor-friendly corporate reforms and government incentives.
What detracted from performance?
Adaptive Positioning | The Fund's adaptive positioning as a whole detracted from performance due to losses from exposure to government bonds and commodities. Bonds and commodities oscillated during the period, making month-to-month positioning a challenge.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Macro Allocation Strategy Fund (Class C) —including sales charge | 1.97% | (1.59)% | 0.74% |
| Invesco Macro Allocation Strategy Fund (Class C) —excluding sales charge | 2.97% | (1.59)% | 0.74% |
| Bloomberg 3-month Treasury Bellwether Index | 5.43% | 2.40%) | 1.72% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the Bloomberg 3-month Treasury Bellwether Index to the Bloomberg U.S. Aggregate Bond Index to reflect that the Bloomberg U.S. Aggregate Bond Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $157,013,598% |
| Total number of portfolio holdings | $73% |
| Total advisory fees paid | $1,450,445% |
| Portfolio turnover rate | $76% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
| Asset Class | Notional Asset Weights |
| Equities | 42.01% |
| Fixed Income | 67.19 |
| Commodities | 42.04 |
| Options | 12.69 |
| Total | 163.93% |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Macro Allocation Strategy Fund
Class R: GMSJX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Macro Allocation Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Macro Allocation Strategy Fund
(Class R) | $167 | 1.64%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 3.57%. For the same time period, the Bloomberg 3-month Treasury Bellwether Index returned 5.43%.
What contributed to performance?
Diversified Defensive Exposures | The Fund’s diversified defensive component contributed to results in aggregate due to the long-only exposure to government bonds and the optimized commodity futures roll strategy.
Long Exposure to Global Equities | The Fund’s long exposure to global equity market indices during the period also contributed to results. Japanese equities were the top contributor, driven by investor-friendly corporate reforms and government incentives.
What detracted from performance?
Adaptive Positioning | The Fund's adaptive positioning as a whole detracted from performance due to losses from exposure to government bonds and commodities. Bonds and commodities oscillated during the period, making month-to-month positioning a challenge.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Macro Allocation Strategy Fund (Class R) | 3.57% | (1.10)% | 1.11% |
| Bloomberg 3-month Treasury Bellwether Index | 5.43% | 2.40%) | 1.72% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the Bloomberg 3-month Treasury Bellwether Index to the Bloomberg U.S. Aggregate Bond Index to reflect that the Bloomberg U.S. Aggregate Bond Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $157,013,598% |
| Total number of portfolio holdings | $73% |
| Total advisory fees paid | $1,450,445% |
| Portfolio turnover rate | $76% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
| Asset Class | Notional Asset Weights |
| Equities | 42.01% |
| Fixed Income | 67.19 |
| Commodities | 42.04 |
| Options | 12.69 |
| Total | 163.93% |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Macro Allocation Strategy Fund
Class Y: GMSHX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Macro Allocation Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Macro Allocation Strategy Fund
(Class Y) | $116 | 1.14%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 4.07%. For the same time period, the Bloomberg 3-month Treasury Bellwether Index returned 5.43%.
What contributed to performance?
Diversified Defensive Exposures | The Fund’s diversified defensive component contributed to results in aggregate due to the long-only exposure to government bonds and the optimized commodity futures roll strategy.
Long Exposure to Global Equities | The Fund’s long exposure to global equity market indices during the period also contributed to results. Japanese equities were the top contributor, driven by investor-friendly corporate reforms and government incentives.
What detracted from performance?
Adaptive Positioning | The Fund's adaptive positioning as a whole detracted from performance due to losses from exposure to government bonds and commodities. Bonds and commodities oscillated during the period, making month-to-month positioning a challenge.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Macro Allocation Strategy Fund (Class Y) | 4.07% | (0.60)% | 1.62% |
| Bloomberg 3-month Treasury Bellwether Index | 5.43% | 2.40%) | 1.72% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the Bloomberg 3-month Treasury Bellwether Index to the Bloomberg U.S. Aggregate Bond Index to reflect that the Bloomberg U.S. Aggregate Bond Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $157,013,598% |
| Total number of portfolio holdings | $73% |
| Total advisory fees paid | $1,450,445% |
| Portfolio turnover rate | $76% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
| Asset Class | Notional Asset Weights |
| Equities | 42.01% |
| Fixed Income | 67.19 |
| Commodities | 42.04 |
| Options | 12.69 |
| Total | 163.93% |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Macro Allocation Strategy Fund
Class R5: GMSKX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Macro Allocation Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Macro Allocation Strategy Fund
(Class R5) | $116 | 1.14%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 4.07%. For the same time period, the Bloomberg 3-month Treasury Bellwether Index returned 5.43%.
What contributed to performance?
Diversified Defensive Exposures | The Fund’s diversified defensive component contributed to results in aggregate due to the long-only exposure to government bonds and the optimized commodity futures roll strategy.
Long Exposure to Global Equities | The Fund’s long exposure to global equity market indices during the period also contributed to results. Japanese equities were the top contributor, driven by investor-friendly corporate reforms and government incentives.
What detracted from performance?
Adaptive Positioning | The Fund's adaptive positioning as a whole detracted from performance due to losses from exposure to government bonds and commodities. Bonds and commodities oscillated during the period, making month-to-month positioning a challenge.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Macro Allocation Strategy Fund (Class R5) | 4.07% | (0.62)% | 1.60% |
| Bloomberg 3-month Treasury Bellwether Index | 5.43% | 2.40%) | 1.72% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the Bloomberg 3-month Treasury Bellwether Index to the Bloomberg U.S. Aggregate Bond Index to reflect that the Bloomberg U.S. Aggregate Bond Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $157,013,598% |
| Total number of portfolio holdings | $73% |
| Total advisory fees paid | $1,450,445% |
| Portfolio turnover rate | $76% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
| Asset Class | Notional Asset Weights |
| Equities | 42.01% |
| Fixed Income | 67.19 |
| Commodities | 42.04 |
| Options | 12.69 |
| Total | 163.93% |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Macro Allocation Strategy Fund
Class R6: GMSLX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Macro Allocation Strategy Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Macro Allocation Strategy Fund
(Class R6) | $116 | 1.14%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Commodities posted mixed performance; precious metals outperformed, while agricultural and energy commodities broadly struggled due to weaker demand. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 3.94%. For the same time period, the Bloomberg 3-month Treasury Bellwether Index returned 5.43%.
What contributed to performance?
Diversified Defensive Exposures | The Fund’s diversified defensive component contributed to results in aggregate due to the long-only exposure to government bonds and the optimized commodity futures roll strategy.
Long Exposure to Global Equities | The Fund’s long exposure to global equity market indices during the period also contributed to results. Japanese equities were the top contributor, driven by investor-friendly corporate reforms and government incentives.
What detracted from performance?
Adaptive Positioning | The Fund's adaptive positioning as a whole detracted from performance due to losses from exposure to government bonds and commodities. Bonds and commodities oscillated during the period, making month-to-month positioning a challenge.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Macro Allocation Strategy Fund (Class R6) | 3.94% | (0.62)% | 1.59% |
| Bloomberg 3-month Treasury Bellwether Index | 5.43% | 2.40%) | 1.72% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
Effective December 15, 2023, the Fund changed its broad-based securities market benchmark from the Bloomberg 3-month Treasury Bellwether Index to the Bloomberg U.S. Aggregate Bond Index to reflect that the Bloomberg U.S. Aggregate Bond Index can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $157,013,598% |
| Total number of portfolio holdings | $73% |
| Total advisory fees paid | $1,450,445% |
| Portfolio turnover rate | $76% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
| Asset Class | Notional Asset Weights |
| Equities | 42.01% |
| Fixed Income | 67.19 |
| Commodities | 42.04 |
| Options | 12.69 |
| Total | 163.93% |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held December 10-11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will close to investments by new accounts after the close of business on January 17, 2025. The Fund will liquidate on or about March 20, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Multi-Asset Income Fund
Class A: PIAFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Multi-Asset Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Multi-Asset Income Fund
(Class A) | $93 | 0.86%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 16.04%. For the same time period, the Custom Invesco Multi-Asset Income Index returned 19.38%.
What contributed to performance?
Strategic Exposures | The Fund's strategic equity exposures produced gains in aggregate through exposure to the S&P 500 Equal Weight Index (via a position in Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA). The Fund's investments in equity-linked notes (ELNs) also produced gains. Equity-linked notes are comprised primarily of returns attributable to coupon income received from selling embedded options and returns attributable to price changes in referenced equities, and cash or cash equivalents. The Fund's exposure to US preferred shares also positively contributed to performance. The Fund exited its investments in ELNs and US preferred shares during the period. The Fund’s strategic fixed income exposures produced gains across the board as markets reacted positively to easing monetary policy from a number of key central banks during the fiscal year.
What detracted from performance?
Tactical Positioning | The Fund’s adaptive monthly tactical positioning was a drag on performance during the fiscal year, due to positioning within fixed income. Most notable was the Fund's tactical positioning in UK Gilts and US Treasuries.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Multi-Asset Income Fund (Class A) —including sales charge | 9.70% | (1.06)% | 2.44% |
| Invesco Multi-Asset Income Fund (Class A) —excluding sales charge | 16.04% | 0.07%) | 3.02% |
| Custom Invesco Multi-Asset Income Index | 19.38% | 4.80%) | 4.97% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $979,544,176% |
| Total number of portfolio holdings | $762% |
| Total advisory fees paid | $4,560,250% |
| Portfolio turnover rate | $162% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco S&P 500 Equal Weight Income Advantage ETF | 25.02% |
| U.S. Treasury Bonds, 4.75%, 11/15/2053 | 12.60% |
| Invesco QQQ Income Advantage ETF | 10.46% |
| Invesco MSCI EAFE Income Advantage ETF | 10.30% |
| U.S. Treasury Notes, 2.88%, 05/31/2025 | 2.57% |
| U.S. Treasury Notes, 2.88%, 05/15/2028 | 2.50% |
| U.S. Treasury Notes, 4.50%, 04/15/2027 | 2.49% |
| U.S. Treasury Notes, 4.63%, 04/30/2029 | 2.36% |
| iShares J.P. Morgan USD Emerging Markets Bond ETF | 1.62% |
| U.S. Treasury Notes, 1.25%, 12/31/2026 | 1.37% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Multi-Asset Income Fund
Class C: PICFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Multi-Asset Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Multi-Asset Income Fund
(Class C) | $175 | 1.63%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 15.16%. For the same time period, the Custom Invesco Multi-Asset Income Index returned 19.38%.
What contributed to performance?
Strategic Exposures | The Fund's strategic equity exposures produced gains in aggregate through exposure to the S&P 500 Equal Weight Index (via a position in Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA). The Fund's investments in equity-linked notes (ELNs) also produced gains. Equity-linked notes are comprised primarily of returns attributable to coupon income received from selling embedded options and returns attributable to price changes in referenced equities, and cash or cash equivalents. The Fund's exposure to US preferred shares also positively contributed to performance. The Fund exited its investments in ELNs and US preferred shares during the period. The Fund’s strategic fixed income exposures produced gains across the board as markets reacted positively to easing monetary policy from a number of key central banks during the fiscal year.
What detracted from performance?
Tactical Positioning | The Fund’s adaptive monthly tactical positioning was a drag on performance during the fiscal year, due to positioning within fixed income. Most notable was the Fund's tactical positioning in UK Gilts and US Treasuries.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Multi-Asset Income Fund (Class C) —including sales charge | 14.16% | (0.68)% | 2.41% |
| Invesco Multi-Asset Income Fund (Class C) —excluding sales charge | 15.16% | (0.68)% | 2.41% |
| Custom Invesco Multi-Asset Income Index | 19.38% | 4.80%) | 4.97% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $979,544,176% |
| Total number of portfolio holdings | $762% |
| Total advisory fees paid | $4,560,250% |
| Portfolio turnover rate | $162% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco S&P 500 Equal Weight Income Advantage ETF | 25.02% |
| U.S. Treasury Bonds, 4.75%, 11/15/2053 | 12.60% |
| Invesco QQQ Income Advantage ETF | 10.46% |
| Invesco MSCI EAFE Income Advantage ETF | 10.30% |
| U.S. Treasury Notes, 2.88%, 05/31/2025 | 2.57% |
| U.S. Treasury Notes, 2.88%, 05/15/2028 | 2.50% |
| U.S. Treasury Notes, 4.50%, 04/15/2027 | 2.49% |
| U.S. Treasury Notes, 4.63%, 04/30/2029 | 2.36% |
| iShares J.P. Morgan USD Emerging Markets Bond ETF | 1.62% |
| U.S. Treasury Notes, 1.25%, 12/31/2026 | 1.37% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Multi-Asset Income Fund
Class R: PIRFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Multi-Asset Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Multi-Asset Income Fund
(Class R) | $122 | 1.13%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 15.72%. For the same time period, the Custom Invesco Multi-Asset Income Index returned 19.38%.
What contributed to performance?
Strategic Exposures | The Fund's strategic equity exposures produced gains in aggregate through exposure to the S&P 500 Equal Weight Index (via a position in Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA). The Fund's investments in equity-linked notes (ELNs) also produced gains. Equity-linked notes are comprised primarily of returns attributable to coupon income received from selling embedded options and returns attributable to price changes in referenced equities, and cash or cash equivalents. The Fund's exposure to US preferred shares also positively contributed to performance. The Fund exited its investments in ELNs and US preferred shares during the period. The Fund’s strategic fixed income exposures produced gains across the board as markets reacted positively to easing monetary policy from a number of key central banks during the fiscal year.
What detracted from performance?
Tactical Positioning | The Fund’s adaptive monthly tactical positioning was a drag on performance during the fiscal year, due to positioning within fixed income. Most notable was the Fund's tactical positioning in UK Gilts and US Treasuries.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Multi-Asset Income Fund (Class R) | 15.72% | (0.18)% | 2.78% |
| Custom Invesco Multi-Asset Income Index | 19.38% | 4.80%) | 4.97% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $979,544,176% |
| Total number of portfolio holdings | $762% |
| Total advisory fees paid | $4,560,250% |
| Portfolio turnover rate | $162% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco S&P 500 Equal Weight Income Advantage ETF | 25.02% |
| U.S. Treasury Bonds, 4.75%, 11/15/2053 | 12.60% |
| Invesco QQQ Income Advantage ETF | 10.46% |
| Invesco MSCI EAFE Income Advantage ETF | 10.30% |
| U.S. Treasury Notes, 2.88%, 05/31/2025 | 2.57% |
| U.S. Treasury Notes, 2.88%, 05/15/2028 | 2.50% |
| U.S. Treasury Notes, 4.50%, 04/15/2027 | 2.49% |
| U.S. Treasury Notes, 4.63%, 04/30/2029 | 2.36% |
| iShares J.P. Morgan USD Emerging Markets Bond ETF | 1.62% |
| U.S. Treasury Notes, 1.25%, 12/31/2026 | 1.37% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Multi-Asset Income Fund
Class Y: PIYFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Multi-Asset Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Multi-Asset Income Fund
(Class Y) | $68 | 0.63%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 16.30%. For the same time period, the Custom Invesco Multi-Asset Income Index returned 19.38%.
What contributed to performance?
Strategic Exposures | The Fund's strategic equity exposures produced gains in aggregate through exposure to the S&P 500 Equal Weight Index (via a position in Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA). The Fund's investments in equity-linked notes (ELNs) also produced gains. Equity-linked notes are comprised primarily of returns attributable to coupon income received from selling embedded options and returns attributable to price changes in referenced equities, and cash or cash equivalents. The Fund's exposure to US preferred shares also positively contributed to performance. The Fund exited its investments in ELNs and US preferred shares during the period. The Fund’s strategic fixed income exposures produced gains across the board as markets reacted positively to easing monetary policy from a number of key central banks during the fiscal year.
What detracted from performance?
Tactical Positioning | The Fund’s adaptive monthly tactical positioning was a drag on performance during the fiscal year, due to positioning within fixed income. Most notable was the Fund's tactical positioning in UK Gilts and US Treasuries.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Multi-Asset Income Fund (Class Y) | 16.30% | 0.33%) | 3.28% |
| Custom Invesco Multi-Asset Income Index | 19.38% | 4.80%) | 4.97% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $979,544,176% |
| Total number of portfolio holdings | $762% |
| Total advisory fees paid | $4,560,250% |
| Portfolio turnover rate | $162% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco S&P 500 Equal Weight Income Advantage ETF | 25.02% |
| U.S. Treasury Bonds, 4.75%, 11/15/2053 | 12.60% |
| Invesco QQQ Income Advantage ETF | 10.46% |
| Invesco MSCI EAFE Income Advantage ETF | 10.30% |
| U.S. Treasury Notes, 2.88%, 05/31/2025 | 2.57% |
| U.S. Treasury Notes, 2.88%, 05/15/2028 | 2.50% |
| U.S. Treasury Notes, 4.50%, 04/15/2027 | 2.49% |
| U.S. Treasury Notes, 4.63%, 04/30/2029 | 2.36% |
| iShares J.P. Morgan USD Emerging Markets Bond ETF | 1.62% |
| U.S. Treasury Notes, 1.25%, 12/31/2026 | 1.37% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Multi-Asset Income Fund
Class R5: IPNFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Multi-Asset Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Multi-Asset Income Fund
(Class R5) | $64 | 0.59%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 16.41%. For the same time period, the Custom Invesco Multi-Asset Income Index returned 19.38%.
What contributed to performance?
Strategic Exposures | The Fund's strategic equity exposures produced gains in aggregate through exposure to the S&P 500 Equal Weight Index (via a position in Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA). The Fund's investments in equity-linked notes (ELNs) also produced gains. Equity-linked notes are comprised primarily of returns attributable to coupon income received from selling embedded options and returns attributable to price changes in referenced equities, and cash or cash equivalents. The Fund's exposure to US preferred shares also positively contributed to performance. The Fund exited its investments in ELNs and US preferred shares during the period. The Fund’s strategic fixed income exposures produced gains across the board as markets reacted positively to easing monetary policy from a number of key central banks during the fiscal year.
What detracted from performance?
Tactical Positioning | The Fund’s adaptive monthly tactical positioning was a drag on performance during the fiscal year, due to positioning within fixed income. Most notable was the Fund's tactical positioning in UK Gilts and US Treasuries.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Multi-Asset Income Fund (Class R5) | 16.41% | 0.31%) | 3.29% |
| Custom Invesco Multi-Asset Income Index | 19.38% | 4.80%) | 4.97% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $979,544,176% |
| Total number of portfolio holdings | $762% |
| Total advisory fees paid | $4,560,250% |
| Portfolio turnover rate | $162% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco S&P 500 Equal Weight Income Advantage ETF | 25.02% |
| U.S. Treasury Bonds, 4.75%, 11/15/2053 | 12.60% |
| Invesco QQQ Income Advantage ETF | 10.46% |
| Invesco MSCI EAFE Income Advantage ETF | 10.30% |
| U.S. Treasury Notes, 2.88%, 05/31/2025 | 2.57% |
| U.S. Treasury Notes, 2.88%, 05/15/2028 | 2.50% |
| U.S. Treasury Notes, 4.50%, 04/15/2027 | 2.49% |
| U.S. Treasury Notes, 4.63%, 04/30/2029 | 2.36% |
| iShares J.P. Morgan USD Emerging Markets Bond ETF | 1.62% |
| U.S. Treasury Notes, 1.25%, 12/31/2026 | 1.37% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Multi-Asset Income Fund
Class R6: PIFFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Multi-Asset Income Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Multi-Asset Income Fund
(Class R6) | $60 | 0.55%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets and more limited gains for fixed income markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 16.40%. For the same time period, the Custom Invesco Multi-Asset Income Index returned 19.38%.
What contributed to performance?
Strategic Exposures | The Fund's strategic equity exposures produced gains in aggregate through exposure to the S&P 500 Equal Weight Index (via a position in Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA). The Fund's investments in equity-linked notes (ELNs) also produced gains. Equity-linked notes are comprised primarily of returns attributable to coupon income received from selling embedded options and returns attributable to price changes in referenced equities, and cash or cash equivalents. The Fund's exposure to US preferred shares also positively contributed to performance. The Fund exited its investments in ELNs and US preferred shares during the period. The Fund’s strategic fixed income exposures produced gains across the board as markets reacted positively to easing monetary policy from a number of key central banks during the fiscal year.
What detracted from performance?
Tactical Positioning | The Fund’s adaptive monthly tactical positioning was a drag on performance during the fiscal year, due to positioning within fixed income. Most notable was the Fund's tactical positioning in UK Gilts and US Treasuries.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Multi-Asset Income Fund (Class R6) | 16.40% | 0.39%) | 3.32% |
| Custom Invesco Multi-Asset Income Index | 19.38% | 4.80%) | 4.97% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.49% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $979,544,176% |
| Total number of portfolio holdings | $762% |
| Total advisory fees paid | $4,560,250% |
| Portfolio turnover rate | $162% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Invesco S&P 500 Equal Weight Income Advantage ETF | 25.02% |
| U.S. Treasury Bonds, 4.75%, 11/15/2053 | 12.60% |
| Invesco QQQ Income Advantage ETF | 10.46% |
| Invesco MSCI EAFE Income Advantage ETF | 10.30% |
| U.S. Treasury Notes, 2.88%, 05/31/2025 | 2.57% |
| U.S. Treasury Notes, 2.88%, 05/15/2028 | 2.50% |
| U.S. Treasury Notes, 4.50%, 04/15/2027 | 2.49% |
| U.S. Treasury Notes, 4.63%, 04/30/2029 | 2.36% |
| iShares J.P. Morgan USD Emerging Markets Bond ETF | 1.62% |
| U.S. Treasury Notes, 1.25%, 12/31/2026 | 1.37% |
| * Excluding money market fund holdings, if any. | |
Security type allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
The Registrant has adopted a Code of Ethics (the "Code") that applies to the Registrant's Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"). This Code is filed as an exhibit to this report on Form N-CSR under Item 19(a)(1). No substantive amendments to this Code were made during the reporting period. The Code was revised to include PEOs and PFOs of certain Invesco exchange traded funds, previously covered by a separate code of ethics. There were no waivers for the fiscal year ended October 31, 2024.
Item 3. Audit Committee Financial Expert.
The Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit Committee. The Audit Committee financial expert is Anthony J. LaCava, Jr. Anthony J. LaCava, Jr. is "independent" within the meaning of that term as used in Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) to (d)
Fees Billed by PwC Related to the Registrant
PricewaterhouseCoopers LLP (“PwC”), the Registrant’s independent registered public accounting firm, billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as shown in the following table. The Audit Committee pre-approved all audit and non-audit services provided to the Registrant.
| | | |
| Fees Billed by PwC for Services Rendered to the Registrant for Fiscal Year Ended 2024 | Fees Billed by PwC for Services Rendered to the Registrant for Fiscal Year Ended 2023 |
| | |
Audit Fees | $ 866,608 | $ 878,829 |
Audit-Related Fees(1) | $ 13,992 | $ 11,000 |
Tax Fees(2) | $ 306,569 | $ 473,470 |
All Other Fees | $ 0 | $ 0 |
Total Fees | $ 1,187,169 | $ 1,363,299 |
(1) | Audit-Related Fees for the fiscal years ended 2024 and 2023 includes fees billed for reviewing regulatory filings. |
(2) | Tax Fees for the fiscal years ended 2024 and 2023 includes fees billed for preparation of U.S. Tax Returns and Taxable Income calculations, including excise tax and year-to-date estimates for various book-to-tax differences. |
Fees Billed by PwC Related to Invesco and Affiliates
PwC billed Invesco Advisers, Inc. (“Invesco”), the Registrant’s investment adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to the Registrant (“Affiliates”) aggregate fees for pre-approved non-audit services rendered to Invesco and Affiliates for the last two fiscal years as shown in the following table. The Audit Committee pre-approved all non-audit services provided to Invesco and Affiliates that were required to be pre-approved.
| | | |
| Fees Billed for Non- Audit Services Rendered to Invesco and Affiliates for Fiscal Year Ended 2024 That Were Required to be Pre-Approved by the Registrant’s Audit Committee | Fees Billed for Non- Audit Services Rendered to Invesco and Affiliates for Fiscal Year Ended 2023 That Were Required to be Pre-Approved by the Registrant’s Audit Committee |
Audit-Related Fees(1) | $ 1,134,000 | $ 1,067,000 |
Tax Fees | $ 0 | $ 0 |
All Other Fees | $ 0 | $ 0 |
Total Fees | $ 1,134 ,000 | $ 1,067,000 |
(1) Audit-Related Fees for the fiscal years ended 2024 and 2023 include fees billed related to reviewing controls at a service organization.
(e)(1)
PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees
of the Invesco Funds (the “Funds”)
Last Amended 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 the pre-approval of audit and non-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 and non-audit services provided to the Funds by the Auditor must be preapproved by the Audit Committee. Rule 2-01 of Regulation S-X requires that the Audit Committee also pre-approve a Service Affiliate’s engagement of the Auditor for non-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 may pre-approve audit and non-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 general pre-approvals without consideration of specific case-by-case services (“general pre-approvals”) and pre-approvals on a case-by-case basis (“specific pre-approvals”). Any services requiring pre-approval that are not within the scope of general pre-approvals hereunder are subject to specific pre-approval. These Procedures also address the delegation by the Audit Committee of pre-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 specific pre-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 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 specifically pre-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 Specific Pre-Approval of Non-Audit Fund Services |
The Audit Committee will consider, at least annually, the list of General Pre-Approved Non-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 General Pre-Approved Non-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 General Pre-Approved Non-Audit Services have not received general pre-approval and require specific pre-approval. Each request for specific pre-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 to pre-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 specific pre-approval of audit-related, tax or other services, each as described in more detail below.
“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.
“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 specific pre-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 or fee-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.
The Audit Committee may pre-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 |
Rule 2-01 of Regulation S-X requires that the Audit Committee pre-approve a Service Affiliate’s engagement of the Auditor for non-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 specific pre-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 General Pre-Approved Non-Audit Services have not received general pre-approval and require specific pre-approval.
Each request for specific pre-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 the pre-approval process involving other audit committees in the Invesco investment company complex (as defined in Rule 2-201 of Regulation S-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 requires pre-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 for non-audit services, whether or not subject to pre-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 Fund.
VI. | Pre-Approved Fee Levels or Established Amounts |
Pre-approved fee levels or ranges for audit and non-audit services to be provided by the Auditor to the Funds, and for a Service Affiliate’s Covered Engagement, under general pre-approval or specific pre-approval will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximum pre-approved fee levels or ranges for such services or engagements will be promptly presented to the Audit Committee and will require specific pre-approval by the Audit Committee before payment of any additional fees is made.
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, to pre-approve audit and non-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 and pre-approve any proposed services or engagements.
Notwithstanding the foregoing, the Audit Committee must pre-approve: (a) any non-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 to pre-approve any services or engagements that are not required to be pre-approved pursuant to the de minimis exception provided for in Rule 2-01(c)(7)(i)(C) of Regulation S-X shall not constitute a violation of these Procedures. The Audit Committee has designated the Funds’ Treasurer to ensure services and engagements are pre-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 be pre-approved pursuant to the de minimis exception provided for in Rule 2-01(c)(7)(i)(C) of Regulation S-X.
On at least an annual basis, the Auditor will provide the Audit Committee with a summary of all non-audit services provided to any entity in the investment company complex (as defined in section 2-01(f)(14) of Regulation S-X, including the Funds and Service Affiliates) that were not pre-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 following non-audit services:
· | Broker-dealer, investment adviser, or investment banking 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 following non-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, or contribution-in-kind reports; |
· | Internal audit outsourcing services. |
(e)(2) There were no amounts that were pre-approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) In addition to the amounts shown in the tables above, PwC billed Invesco and Invesco Affiliates aggregate fees of $6,466,000 for the fiscal year ended October 31, 2024 and $6,507,000 for the fiscal year ended October 31, 2023. In total, PwC billed the Registrant, Invesco and Invesco Affiliates aggregate non-audit fees of $7,906,569 for the fiscal year ended October 31, 2024 and $8,047,470 for the fiscal year ended October 31, 2023.
PwC provided audit services to the Investment Company complex of approximately $34 million.
(h) The Audit Committee also has considered whether the provision of non-audit services that were rendered to Invesco and Invesco Affiliates that were not required to be pre-approved pursuant to SEC regulations, if any, is compatible with maintaining PwC’s independence.
(i) Not applicable.
(j) Not applicable.
1 | Applicable Rules include, for example, New York Stock Exchange (“NYSE”) rules applicable to closed-end funds managed by Invesco and listed on NYSE. |
Item 5. Audit Committee of Listed Registrants.
(a) Investments in securities of unaffiliated issuers is filed under Item 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Balanced-Risk Allocation Fund
Nasdaq:
A: ABRZX ■ C: ABRCX ■ R: ABRRX ■ Y: ABRYX ■ R5: ABRIX ■ R6: ALLFX
Consolidated Schedule of Investments
October 31, 2024
| | Interest
Rate | Maturity
Date | Principal
Amount
(000) | Value |
| U.S. Treasury Securities–27.11% | | |
| U.S. Treasury Floating Rate Notes–27.11% |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.20%)(a) | 4.69% | 01/31/2025 | | $ 15,500 | $ 15,503,985 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.25%)(a) | 4.74% | 01/31/2026 | | 102,100 | 102,149,261 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.15%)(a) | 4.64% | 04/30/2026 | | 100,300 | 100,225,848 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.18%)(a) | 4.67% | 07/31/2026 | | 93,000 | 92,965,498 |
| Total U.S. Treasury Securities (Cost $310,900,310) | | 310,844,592 |
| | | Expiration
Date | | |
| Commodity-Linked Securities–6.20% |
| Bank of Montreal, Commodity-Linked Notes (linked to the S&P GSCI Aluminum Dynamic Roll Index) (Canada)(b)(c) | | 07/25/2025 | | 13,800 | 13,707,573 |
| Canadian Imperial Bank of Commerce, EMTN, U.S. Federal Funds Effective Rate minus 0.03% (linked to the Canadian Imperial Bank of Commerce Gold Standard Roll Excess Return Index) (Canada)(b)(c) | | 07/08/2025 | | 14,700 | 20,484,284 |
| Canadian Imperial Bank of Commerce, EMTN, U.S. Federal Funds Effective Rate minus 0.03% (linked to the Canadian Imperial Bank of Commerce Silver Index) (Canada)(b)(c) | | 07/08/2025 | | 14,300 | 16,050,625 |
| Royal Bank of Canada, Commodity-Linked Notes (linked to the RBC Enhanced Copper 2x Index) (Canada)(b)(c) | | 07/11/2025 | | 22,200 | 20,885,736 |
| Total Commodity-Linked Securities (Cost $65,000,000) | | 71,128,218 |
| | | | Shares | |
| Money Market Funds–56.59% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | | | | 158,269,511 | 158,269,511 |
| Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio (Ireland), Agency Class, 5.04%(d)(e) | | | | 110,226,460 | 110,226,460 |
| Invesco Treasury Obligations Portfolio, Institutional Class, 4.69%(d)(e) | | | | 336,300,000 | 336,300,000 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(d)(e) | | | | 44,106,515 | 44,106,515 |
| Total Money Market Funds (Cost $648,902,486) | | 648,902,486 |
|
| Options Purchased–0.82% |
| (Cost $15,565,809)(f) | | 9,390,464 |
| TOTAL INVESTMENTS IN SECURITIES–90.72% (Cost $1,040,368,605) | | 1,040,265,760 |
| OTHER ASSETS LESS LIABILITIES–9.28% | | 106,358,981 |
| NET ASSETS–100.00% | | $1,146,624,741 |
Investment Abbreviations:
| EMTN | – European Medium-Term Notes |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Balanced-Risk Allocation Fund |
Notes to Consolidated Schedule of Investments:
| (a) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2024. |
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $71,128,218, which represented 6.20% of the Fund’s Net Assets. |
| (c) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
| (d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $211,036,608 | $248,905,060 | $(301,672,157) | $- | $- | $158,269,511 | $10,009,586 |
| Invesco Liquid Assets Portfolio, Institutional Class | 32,374,098 | 127,269,530 | (159,645,673) | (5,890) | 7,935 | - | 1,159,839 |
| Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Agency Class | 113,019,570 | 315,373,063 | (318,166,173) | - | - | 110,226,460 | 6,059,738 |
| Invesco Treasury Obligations Portfolio, Institutional Class | 375,500,000 | - | (39,200,000) | - | - | 336,300,000 | 18,474,320 |
| Invesco Treasury Portfolio, Institutional Class | 51,783,553 | 361,126,263 | (368,803,301) | - | - | 44,106,515 | 2,720,303 |
| Total | $783,713,829 | $1,052,673,916 | $(1,187,487,304) | $(5,890) | $7,935 | $648,902,486 | $38,423,786 |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (f) | The table below details options purchased. |
| Open Exchange-Traded Index Options Purchased |
| Description | Type of
Contract | Expiration
Date | Number of
Contracts | Exercise
Price | Notional
Value* | Value |
| Equity Risk |
| EURO STOXX 50 Index | Put | 11/15/2024 | 85 | EUR | 4,000.00 | EUR | 3,400,000 | $2,219 |
| EURO STOXX 50 Index | Put | 12/20/2024 | 85 | EUR | 4,350.00 | EUR | 3,697,500 | 24,594 |
| EURO STOXX 50 Index | Put | 01/17/2025 | 85 | EUR | 4,400.00 | EUR | 3,740,000 | 40,312 |
| EURO STOXX 50 Index | Put | 02/21/2025 | 85 | EUR | 4,600.00 | EUR | 3,910,000 | 87,189 |
| EURO STOXX 50 Index | Put | 03/21/2025 | 85 | EUR | 4,800.00 | EUR | 4,080,000 | 155,146 |
| EURO STOXX 50 Index | Put | 08/15/2025 | 85 | EUR | 4,600.00 | EUR | 3,910,000 | 181,681 |
| EURO STOXX 50 Index | Put | 05/16/2025 | 85 | EUR | 4,800.00 | EUR | 4,080,000 | 202,577 |
| EURO STOXX 50 Index | Put | 04/17/2025 | 85 | EUR | 5,000.00 | EUR | 4,250,000 | 255,279 |
| EURO STOXX 50 Index | Put | 10/17/2025 | 85 | EUR | 4,800.00 | EUR | 4,080,000 | 264,340 |
| EURO STOXX 50 Index | Put | 09/19/2025 | 85 | EUR | 4,850.00 | EUR | 4,122,500 | 275,250 |
| EURO STOXX 50 Index | Put | 07/18/2025 | 85 | EUR | 4,900.00 | EUR | 4,165,000 | 276,821 |
| EURO STOXX 50 Index | Put | 06/20/2025 | 85 | EUR | 4,950.00 | EUR | 4,207,500 | 287,362 |
| FTSE 100 Index | Put | 11/15/2024 | 46 | GBP | 7,275.00 | GBP | 3,346,500 | 4,152 |
| FTSE 100 Index | Put | 12/20/2024 | 46 | GBP | 7,450.00 | GBP | 3,427,000 | 17,201 |
| FTSE 100 Index | Put | 01/17/2025 | 46 | GBP | 7,625.00 | GBP | 3,507,500 | 35,292 |
| FTSE 100 Index | Put | 02/21/2025 | 45 | GBP | 7,550.00 | GBP | 3,397,500 | 41,488 |
| FTSE 100 Index | Put | 03/21/2025 | 45 | GBP | 7,625.00 | GBP | 3,431,250 | 60,636 |
| FTSE 100 Index | Put | 04/17/2025 | 45 | GBP | 7,850.00 | GBP | 3,532,500 | 95,162 |
| FTSE 100 Index | Put | 08/15/2025 | 45 | GBP | 8,150.00 | GBP | 3,667,500 | 196,125 |
| FTSE 100 Index | Put | 07/18/2025 | 45 | GBP | 8,200.00 | GBP | 3,690,000 | 199,317 |
| FTSE 100 Index | Put | 06/20/2025 | 45 | GBP | 8,275.00 | GBP | 3,723,750 | 214,403 |
| FTSE 100 Index | Put | 10/17/2025 | 45 | GBP | 8,225.00 | GBP | 3,701,250 | 233,842 |
| FTSE 100 Index | Put | 09/19/2025 | 44 | GBP | 8,275.00 | GBP | 3,641,000 | 240,844 |
| FTSE 100 Index | Put | 05/16/2025 | 45 | GBP | 8,100.00 | GBP | 3,645,000 | 151,446 |
| MSCI Emerging Markets Index | Put | 11/15/2024 | 55 | USD | 920.00 | USD | 5,060,000 | 3,025 |
| MSCI Emerging Markets Index | Put | 12/20/2024 | 55 | USD | 990.00 | USD | 5,445,000 | 26,950 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Balanced-Risk Allocation Fund |
| Open Exchange-Traded Index Options Purchased—(continued) |
| Description | Type of
Contract | Expiration
Date | Number of
Contracts | Exercise
Price | Notional
Value* | Value |
| MSCI Emerging Markets Index | Put | 02/21/2025 | 55 | USD | 980.00 | USD | 5,390,000 | $55,825 |
| MSCI Emerging Markets Index | Put | 01/17/2025 | 55 | USD | 1,020.00 | USD | 5,610,000 | 61,050 |
| MSCI Emerging Markets Index | Put | 03/21/2025 | 55 | USD | 1,030.00 | USD | 5,665,000 | 108,350 |
| MSCI Emerging Markets Index | Put | 04/17/2025 | 55 | USD | 1,050.00 | USD | 5,775,000 | 150,425 |
| MSCI Emerging Markets Index | Put | 05/16/2025 | 55 | USD | 1,050.00 | USD | 5,775,000 | 170,225 |
| MSCI Emerging Markets Index | Put | 06/20/2025 | 55 | USD | 1,070.00 | USD | 5,885,000 | 220,825 |
| MSCI Emerging Markets Index | Put | 08/15/2025 | 55 | USD | 1,080.00 | USD | 5,940,000 | 271,975 |
| MSCI Emerging Markets Index | Put | 07/18/2025 | 55 | USD | 1,090.00 | USD | 5,995,000 | 273,350 |
| MSCI Emerging Markets Index | Put | 09/19/2025 | 55 | USD | 1,080.00 | USD | 5,940,000 | 287,925 |
| MSCI Emerging Markets Index | Put | 10/17/2025 | 55 | USD | 1,160.00 | USD | 6,380,000 | 467,500 |
| Nikkei 225 Index | Put | 12/13/2024 | 23 | JPY | 30,250.00 | JPY | 695,750,000 | 13,018 |
| Nikkei 225 Index | Put | 12/13/2024 | 23 | JPY | 31,750.00 | JPY | 730,250,000 | 18,165 |
| Nikkei 225 Index | Put | 03/14/2025 | 23 | JPY | 32,000.00 | JPY | 736,000,000 | 65,848 |
| Nikkei 225 Index | Put | 03/14/2025 | 23 | JPY | 34,500.00 | JPY | 793,500,000 | 112,018 |
| Nikkei 225 Index | Put | 06/13/2025 | 23 | JPY | 36,750.00 | JPY | 845,250,000 | 273,990 |
| Nikkei 225 Index | Put | 03/14/2025 | 23 | JPY | 38,500.00 | JPY | 885,500,000 | 280,802 |
| Nikkei 225 Index | Put | 06/13/2025 | 23 | JPY | 37,250.00 | JPY | 856,750,000 | 301,237 |
| Nikkei 225 Index | Put | 09/12/2025 | 23 | JPY | 36,500.00 | JPY | 839,500,000 | 323,187 |
| Nikkei 225 Index | Put | 06/13/2025 | 23 | JPY | 38,250.00 | JPY | 879,750,000 | 362,544 |
| Nikkei 225 Index | Put | 09/12/2025 | 23 | JPY | 37,250.00 | JPY | 856,750,000 | 365,572 |
| Nikkei 225 Index | Put | 09/12/2025 | 23 | JPY | 38,000.00 | JPY | 874,000,000 | 412,498 |
| Nikkei 225 Index | Put | 12/12/2025 | 23 | JPY | 37,250.00 | JPY | 856,750,000 | 429,907 |
| S&P 500 Index | Put | 11/15/2024 | 6 | USD | 4,275.00 | USD | 2,565,000 | 1,530 |
| S&P 500 Index | Put | 12/20/2024 | 6 | USD | 4,650.00 | USD | 2,790,000 | 8,520 |
| S&P 500 Index | Put | 01/17/2025 | 6 | USD | 4,800.00 | USD | 2,880,000 | 17,100 |
| S&P 500 Index | Put | 02/21/2025 | 5 | USD | 4,925.00 | USD | 2,462,500 | 24,775 |
| S&P 500 Index | Put | 03/21/2025 | 5 | USD | 5,225.00 | USD | 2,612,500 | 46,300 |
| S&P 500 Index | Put | 05/16/2025 | 5 | USD | 5,100.00 | USD | 2,550,000 | 50,700 |
| S&P 500 Index | Put | 04/17/2025 | 5 | USD | 5,350.00 | USD | 2,675,000 | 62,150 |
| S&P 500 Index | Put | 06/20/2025 | 5 | USD | 5,400.00 | USD | 2,700,000 | 82,100 |
| S&P 500 Index | Put | 08/15/2025 | 5 | USD | 5,525.00 | USD | 2,762,500 | 107,825 |
| S&P 500 Index | Put | 07/18/2025 | 5 | USD | 5,600.00 | USD | 2,800,000 | 110,225 |
| S&P 500 Index | Put | 09/19/2025 | 5 | USD | 5,650.00 | USD | 2,825,000 | 130,575 |
| S&P 500 Index | Put | 10/17/2025 | 5 | USD | 5,750.00 | USD | 2,875,000 | 149,775 |
| Total Index Options Purchased | | | | | | $9,390,464 |
| * | Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier. |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk |
| Brent Crude | 270 | December-2024 | $19,561,500 | $(271,138) | $(271,138) |
| Gasoline Reformulated Blendstock Oxygenate Blending | 349 | November-2024 | 28,931,960 | (369,781) | (369,781) |
| New York Harbor Ultra-Low Sulfur Diesel | 251 | March-2025 | 23,407,457 | 60,413 | 60,413 |
| WTI Crude | 87 | December-2024 | 5,986,470 | (168,837) | (168,837) |
| Subtotal | (749,343) | (749,343) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Balanced-Risk Allocation Fund |
| Open Futures Contracts(a)—(continued) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Equity Risk |
| E-Mini Russell 2000 Index | 1,010 | December-2024 | $111,534,300 | $861,940 | $861,940 |
| E-Mini S&P 500 Index | 46 | December-2024 | 13,198,550 | 219,834 | 219,834 |
| EURO STOXX 50 Index | 705 | December-2024 | 37,070,189 | (371,584) | (371,584) |
| FTSE 100 Index | 200 | December-2024 | 20,958,733 | (629,361) | (629,361) |
| MSCI Emerging Markets Index | 2,145 | December-2024 | 120,817,125 | 2,865,656 | 2,865,656 |
| Nikkei 225 Index | 260 | December-2024 | 66,839,542 | 4,855,601 | 4,855,601 |
| Subtotal | 7,802,086 | 7,802,086 |
| Interest Rate Risk |
| Australia 10 Year Bonds | 2,753 | December-2024 | 202,634,309 | (9,568,551) | (9,568,551) |
| Canada 10 Year Bonds | 1,883 | December-2024 | 164,978,037 | (3,010,918) | (3,010,918) |
| Euro-Bund | 1,115 | December-2024 | 159,852,458 | (2,664,151) | (2,664,151) |
| Japan 10 Year Bonds | 225 | December-2024 | 213,523,430 | (197,662) | (197,662) |
| Long Gilt | 1,380 | December-2024 | 167,338,728 | (8,693,455) | (8,693,455) |
| U.S. Treasury Long Bonds | 874 | December-2024 | 103,104,688 | (5,944,196) | (5,944,196) |
| Subtotal | (30,078,933) | (30,078,933) |
| Total Futures Contracts | $(23,026,190) | $(23,026,190) |
| (a) | Futures contracts collateralized by $78,495,001 cash held with Merrill Lynch International, the futures commission merchant. |
| Open Over-The-Counter Total Return Swap Agreements(a)(b) |
| Counterparty | Pay/
Receive | Reference Entity(c) | Fixed
Rate | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk | | | | | | | | | | | |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Seasonally Enhanced Bean Oil Commodity Index | 0.26% | Monthly | 63,500 | February—2025 | USD | 6,731,286 | $— | $281,184 | $281,184 |
| Cargill, Inc. | Receive | Cargill Coffee Front Index | 0.20 | Monthly | 30,300 | June—2025 | USD | 7,656,307 | — | 39,117 | 39,117 |
| Cargill, Inc. | Receive | Cargill Lean Hog Index | 0.21 | Monthly | 70,000 | March—2025 | USD | 4,278,183 | — | 388,423 | 388,423 |
| Cargill, Inc. | Receive | Cargill Soybean Oil Index | 0.24 | Monthly | 57,300 | February—2025 | USD | 8,710,351 | — | 111,408 | 111,408 |
| Cargill, Inc. | Receive | Cargill Sugar Index | 0.20 | Monthly | 27,400 | February—2025 | USD | 14,154,936 | — | 119,261 | 119,261 |
| Goldman Sachs International | Receive | S&P GSCI Soybean Oil Excess Return Index | 0.25 | Monthly | 74,500 | February—2025 | USD | 8,722,058 | — | 111,542 | 111,542 |
| Merrill Lynch International | Receive | Merrill Lynch Gold Excess Return Index | 0.12 | Monthly | 27,000 | June—2025 | USD | 7,516,311 | — | 3 | 3 |
| Merrill Lynch International | Receive | MLCISCE Excess Return Index | 0.12 | Monthly | 63,000 | October—2025 | USD | 2,528,448 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCX6CTE Excess Return Index | 0.18 | Monthly | 78,500 | October—2025 | USD | 6,762,061 | — | 0 | 0 |
| Royal Bank of Canada | Receive | RBC Commodity CT01 Excess Return Custom Index | 0.28 | Monthly | 81,500 | February—2025 | USD | 9,964,801 | — | 0 | 0 |
| Royal Bank of Canada | Receive | RBC Commodity KCEO Excess Return Custom Index | 0.18 | Monthly | 378,000 | December—2024 | USD | 10,703,032 | — | 0 | 0 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Balanced-Risk Allocation Fund |
| Open Over-The-Counter Total Return Swap Agreements(a)(b)—(continued) |
| Counterparty | Pay/
Receive | Reference Entity(c) | Fixed
Rate | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Royal Bank of Canada | Receive | RBC Commodity SB01 Excess Return Custom Index | 0.20% | Monthly | 75,000 | February—2025 | USD | 13,982,115 | $— | $0 | $0 |
| Royal Bank of Canada | Receive | RBC Commodity SO01 Excess Return Custom Index | 0.18 | Monthly | 73,500 | February—2025 | USD | 7,886,160 | — | 0 | 0 |
| Subtotal | | | | | | | | | — | 1,050,938 | 1,050,938 |
| Equity Risk | | | | | | | | | | | |
| BNP Paribas S.A. | Receive | BNP Paribas AIR VAR Intraday US Calendar Excess Return Index | 0.10 | Monthly | 118,000 | February—2025 | USD | 26,343,488 | — | 104,313 | 104,313 |
| Citibank, N.A. | Receive | Citi EQ US Volatility Carry Series 5 Index | 0.00 | Monthly | 155,000 | February—2025 | USD | 26,494,150 | — | 12,392 | 12,392 |
| Goldman Sachs International | Receive | Systematic Volatility Carry DO Series 04 Excess Return Strategy | 0.00 | Monthly | 250,000 | February—2025 | USD | 26,350,000 | — | 15,000 | 15,000 |
| Macquarie Bank Ltd. | Receive | VMAQWSL5 | 0.15 | Monthly | 212,000 | October—2025 | USD | 26,444,011 | — | 72,208 | 72,208 |
| Morgan Stanley and Co. International PLC | Receive | Morgan Stanley Volatility Relative Value SPX | 0.00 | Monthly | 151,000 | February—2025 | USD | 26,431,040 | — | 63,607 | 63,607 |
| Subtotal | | | | | | | | | — | 267,520 | 267,520 |
| Subtotal — Appreciation | | | | | — | 1,318,458 | 1,318,458 |
| Commodity Risk | | | | | | | | | | | |
| Barclays Bank PLC | Receive | Barclays Soybean Meal S2 Nearby Excess Return Index | 0.19 | Monthly | 3,200 | February—2025 | USD | 3,298,314 | — | (130,110) | (130,110) |
| Barclays Bank PLC | Receive | Barclays Soybeans Seasonal Index Excess Return | 0.19 | Monthly | 26,000 | February—2025 | USD | 7,911,420 | — | (18,998) | (18,998) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2 | 0.27 | Monthly | 55,000 | February—2025 | USD | 6,529,996 | — | (192,148) | (192,148) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Seasonally Enhanced Cotton Commodity Excess Return Index | 0.28 | Monthly | 56,800 | February—2025 | USD | 8,308,176 | — | (303,749) | (303,749) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Silver Index | 0.00 | Monthly | 33,700 | September—2025 | USD | 4,840,311 | — | (158,676) | (158,676) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Soybean Meal 1 Excess Return Commodity Index | 0.14 | Monthly | 45,000 | February—2025 | USD | 9,094,819 | — | (450,266) | (450,266) |
| Cargill, Inc. | Receive | Cargill Live Cattle Index | 0.21 | Monthly | 49,500 | October—2025 | USD | 5,091,471 | — | (42,669) | (42,669) |
| Cargill, Inc. | Receive | Cargill Wheat Index | 0.22 | Monthly | 135,000 | December—2024 | USD | 6,039,373 | — | (224,235) | (224,235) |
| Goldman Sachs International | Receive | Enhanced Strategy AB42 on the S&P GSCI Soybeans Excess Return Index | 0.14 | Monthly | 14,000 | February—2025 | USD | 5,357,219 | — | (295,221) | (295,221) |
| Goldman Sachs International | Receive | S&P GSCI Wheat Excess Return A48 Strategy | 0.20 | Monthly | 365,000 | March—2025 | USD | 4,066,042 | — | (150,971) | (150,971) |
| J.P. Morgan Chase Bank, N.A. | Receive | J.P. Morgan Contag Beta Gas Oil Excess Return Index | 0.25 | Monthly | 72,200 | February—2025 | USD | 25,521,689 | — | (208,340) | (208,340) |
| J.P. Morgan Chase Bank, N.A. | Receive | S&P GSCI Gold Index Excess Return | 0.09 | Monthly | 98,500 | October—2025 | USD | 17,563,131 | — | (66,813) | (66,813) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Balanced-Risk Allocation Fund |
| Open Over-The-Counter Total Return Swap Agreements(a)(b)—(continued) |
| Counterparty | Pay/
Receive | Reference Entity(c) | Fixed
Rate | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Macquarie Bank Ltd. | Receive | Macquarie Aluminum Dynamic Selection Index | 0.30% | Monthly | 190,000 | February—2025 | USD | 10,735,969 | $— | $(268,527) | $(268,527) |
| Macquarie Bank Ltd. | Receive | Macquarie Single Commodity Soymeal type A Excess Return Index | 0.17 | Monthly | 36,500 | February—2025 | USD | 12,713,523 | — | (219,774) | (219,774) |
| Morgan Stanley and Co. International PLC | Receive | S&P GSCI Aluminum Dynamic Index Excess Return | 0.30 | Monthly | 153,000 | June—2025 | USD | 16,557,308 | — | (265,761) | (265,761) |
| Subtotal — Depreciation | | | | | — | (2,996,258) | (2,996,258) |
| Total — Total Return Swap Agreements | | | | | $— | $(1,677,800) | $(1,677,800) |
| (a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $7,670,000. |
| (b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| (c) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
| Open Over-The-Counter Total Return Swap Agreements(a)(b) |
| Counterparty | Pay/
Receive | Reference Entity | Floating
Rate
Index | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Equity Risk | | | | | | | | | | | |
| Citibank, N.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR + 0.220% | Monthly | 110,000 | February—2025 | JPY | 408,353,000 | $— | $9,708 | $9,708 |
| Citibank, N.A. | Receive | MSCI Japan Quality Index | TONAR + 0.090% | Monthly | 100,000 | April—2025 | JPY | 377,120,000 | — | 87,661 | 87,661 |
| Citibank, N.A. | Receive | MSCI Japan Quality Index | TONAR + 0.250% | Monthly | 110,000 | February—2025 | JPY | 419,104,400 | — | 68,308 | 68,308 |
| Subtotal — Appreciation | | | | | — | 165,677 | 165,677 |
| Equity Risk | | | | | | | | | | | |
| BNP Paribas S.A. | Receive | MSCI EMU Momentum Index | ESTR + 0.250% | Monthly | 80 | March—2025 | EUR | 537,402 | — | (9,995) | (9,995) |
| BNP Paribas S.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR + 0.000% | Monthly | 70,000 | February—2025 | JPY | 263,197,900 | — | (15,784) | (15,784) |
| BNP Paribas S.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR + 0.040% | Monthly | 1,186,542 | January—2025 | JPY | 4,461,362,324 | — | (267,546) | (267,546) |
| BNP Paribas S.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR + 0.130% | Monthly | 475,000 | January—2025 | JPY | 1,785,985,750 | — | (107,105) | (107,105) |
| BNP Paribas S.A. | Receive | MSCI Japan Quality Index | TONAR + 0.060% | Monthly | 368,259 | February—2025 | JPY | 1,456,026,117 | — | (119,775) | (119,775) |
| BNP Paribas S.A. | Receive | MSCI Japan Quality Index | TONAR + 0.060% | Monthly | 122,753 | February—2025 | JPY | 485,342,039 | — | (39,925) | (39,925) |
| BNP Paribas S.A. | Receive | MSCI Japan Quality Index | TONAR + 0.120% | Monthly | 71,519 | February—2025 | JPY | 282,772,537 | — | (23,261) | (23,261) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Balanced-Risk Allocation Fund |
| Open Over-The-Counter Total Return Swap Agreements(a)(b)—(continued) |
| Counterparty | Pay/
Receive | Reference Entity | Floating
Rate
Index | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| BNP Paribas S.A. | Receive | MSCI Japan Quality Index | TONAR + 0.190% | Monthly | 1,467,469 | January—2025 | JPY | 5,802,093,607 | $— | $(477,290) | $(477,290) |
| Citibank, N.A. | Receive | Invesco UK Broad Low Volatility Net Total Return Index | SONIA + 0.399% | Monthly | 420 | November—2024 | GBP | 2,451,561 | — | (93,482) | (93,482) |
| Citibank, N.A. | Receive | Invesco UK Broad Low Volatility Net Total Return Index | SONIA + 0.580% | Monthly | 150 | March—2025 | GBP | 873,623 | — | (30,891) | (30,891) |
| Citibank, N.A. | Receive | Invesco UK Broad Price Momentum Net Total Return Index | SONIA + 0.560% | Monthly | 200 | February—2025 | GBP | 1,474,374 | — | (52,628) | (52,628) |
| Citibank, N.A. | Receive | Invesco UK Broad Price Momentum Net Total Return Index | SONIA + 0.590% | Monthly | 100 | February—2025 | GBP | 723,370 | — | (8,497) | (8,497) |
| Citibank, N.A. | Receive | Invesco UK Broad Quality Net Total Return Index | SONIA + 0.520% | Monthly | 750 | April—2025 | GBP | 6,171,885 | — | (188,979) | (188,979) |
| Citibank, N.A. | Receive | MSCI EMU Minimum Volatility Index | ESTR + 0.029% | Monthly | 600 | March—2025 | EUR | 2,164,296 | — | (43,865) | (43,865) |
| Citibank, N.A. | Receive | MSCI EMU Momentum Index | 1 mo. EURIBOR + 0.325% | Monthly | 3,600 | January—2025 | EUR | 24,183,083 | — | (449,766) | (449,766) |
| Citibank, N.A. | Receive | MSCI EMU Momentum Index | ESTR + 0.120% | Monthly | 350 | April—2025 | EUR | 2,347,141 | — | (39,385) | (39,385) |
| Citibank, N.A. | Receive | MSCI EMU Quality Index | ESTR + 0.180% | Monthly | 400 | April—2025 | EUR | 1,815,412 | — | (41,739) | (41,739) |
| Citibank, N.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR + 0.010% | Monthly | 336,344 | February—2025 | JPY | 1,264,643,350 | — | (75,840) | (75,840) |
| Citibank, N.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR + 0.010% | Monthly | 112,114 | February—2025 | JPY | 421,545,277 | — | (25,280) | (25,280) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Large Cap Broad Price Momentum Total Return Index | SOFR + 0.870% | Monthly | 1,880 | April—2025 | USD | 20,026,249 | — | (422,229) | (422,229) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Large Cap Broad Quality Total Return Index | SOFR + 0.860% | Monthly | 1,380 | April—2025 | USD | 19,863,127 | — | (254,030) | (254,030) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Balanced-Risk Allocation Fund |
| Open Over-The-Counter Total Return Swap Agreements(a)(b)—(continued) |
| Counterparty | Pay/
Receive | Reference Entity | Floating
Rate
Index | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Low Volatility Total Return Index | SOFR + 0.830% | Monthly | 2,450 | April—2025 | USD | 19,744,403 | $— | $(428,186) | $(428,186) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Low Volatility Net Total Return Index | SONIA + 0.398% | Monthly | 2,718 | November—2024 | GBP | 15,865,102 | — | (604,963) | (604,963) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Low Volatility Net Total Return Index | SONIA + 0.404% | Monthly | 962 | November—2024 | GBP | 5,615,242 | — | (214,119) | (214,119) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Price Momentum Net Total Return Index | SONIA + 0.400% | Monthly | 2,363 | November—2024 | GBP | 17,419,729 | — | (621,796) | (621,796) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Price Momentum Net Total Return Index | SONIA + 0.400% | Monthly | 737 | November—2024 | GBP | 5,433,068 | — | (193,933) | (193,933) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Quality Net Total Return Index | SONIA + 0.520% | Monthly | 327 | April—2025 | GBP | 2,690,942 | — | (82,395) | (82,395) |
| J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Quality Net Total Return Index | SONIA + 0.550% | Monthly | 983 | April—2025 | GBP | 8,079,719 | — | (235,355) | (235,355) |
| J.P. Morgan Chase Bank, N.A. | Receive | MSCI EMU Quality Index | ESTR + 0.300% | Monthly | 5,500 | January—2025 | EUR | 25,180,870 | — | (812,081) | (812,081) |
| Merrill Lynch International | Receive | Invesco UK Broad Quality Net Total Return Index | SONIA + 0.534% | Monthly | 743 | January—2025 | GBP | 6,111,182 | — | (183,220) | (183,220) |
| Merrill Lynch International | Receive | Invesco UK Broad Quality Net Total Return Index | SONIA + 0.534% | Monthly | 247 | January—2025 | GBP | 2,031,577 | — | (60,909) | (60,909) |
| Merrill Lynch International | Receive | MSCI EMU Minimum Volatility Index | ESTR + 0.170% | Monthly | 6,800 | March—2025 | EUR | 24,660,744 | — | (640,776) | (640,776) |
| Subtotal — Depreciation | | | | | — | (6,865,025) | (6,865,025) |
| Total — Total Return Swap Agreements | | | | | $— | $(6,699,348) | $(6,699,348) |
| (a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $7,670,000. |
| (b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Balanced-Risk Allocation Fund |
| Reference Entity Components |
| Reference Entity | Underlying Components | Percentage |
| S&P GSCI Aluminum Dynamic Roll Index | | |
| | Long Futures Contracts | |
| | Aluminum | 100.00% |
| Canadian Imperial Bank of Commerce Gold Standard Roll Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Canadian Imperial Bank of Commerce Silver Index | | |
| | Long Futures Contracts | |
| | Silver | 100.00% |
| RBC Enhanced Copper 2x Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| Canadian Imperial Bank of Commerce Seasonally Enhanced Bean Oil Commodity Index | | |
| | Long Futures Contracts | |
| | Bean Oil | 100.00% |
| Cargill Coffee Front Index | | |
| | Long Futures Contracts | |
| | Coffee | 100.00% |
| Cargill Lean Hog Index | | |
| | Long Futures Contracts | |
| | Lean Hog | 100.00% |
| Cargill Soybean Oil Index | | |
| | Long Futures Contracts | |
| | Soybean Oil | 100.00% |
| Cargill Sugar Index | | |
| | Long Futures Contracts | |
| | Sugar | 100.00% |
| S&P GSCI Soybean Oil Excess Return Index | | |
| | Long Futures Contracts | |
| | Soybean Oil | 100.00% |
| Merrill Lynch Gold Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| MLCISCE Excess Return Index | | |
| | Long Futures Contracts | |
| | Corn | 100.00% |
| MLCX6CTE Excess Return Index | | |
| | Long Futures Contracts | |
| | Cotton | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Balanced-Risk Allocation Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| RBC Commodity CT01 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Cotton | 100.00% |
| RBC Commodity KCEO Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Coffee | 100.00% |
| RBC Commodity SB01 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Sugar | 100.00% |
| RBC Commodity SO01 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Soybean | 100.00% |
| Barclays Soybean Meal S2 Nearby Excess Return Index | | |
| | Long Futures Contracts | |
| | Soybean Meal | 100.00% |
| Barclays Soybeans Seasonal Index Excess Return | | |
| | Long Futures Contracts | |
| | Soybean | 100.00% |
| Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2 | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| Canadian Imperial Bank of Commerce Seasonally Enhanced Cotton Commodity Excess Return Index | | |
| | Long Futures Contracts | |
| | Cotton | 100.00% |
| Canadian Imperial Bank of Commerce Silver Index | | |
| | Long Futures Contracts | |
| | Silver | 100.00% |
| Canadian Imperial Bank of Commerce Soybean Meal 1 Excess Return Commodity Index | | |
| | Long Futures Contracts | |
| | Soybean Meal | 100.00% |
| Cargill Live Cattle Index | | |
| | Long Futures Contracts | |
| | Live Cattle | 100.00% |
| Cargill Wheat Index | | |
| | Long Futures Contracts | |
| | Wheat | 100.00% |
| Enhanced Strategy AB42 on the S&P GSCI Soybeans Excess Return Index | | |
| | Long Futures Contracts | |
| | Soybean | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Balanced-Risk Allocation Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| S&P GSCI Wheat Excess Return A48 Strategy | | |
| | Long Futures Contracts | |
| | Wheat | 100.00% |
| J.P. Morgan Contag Beta Gas Oil Excess Return Index | | |
| | Long Futures Contracts | |
| | Gas Oil | 100.00% |
| S&P GSCI Gold Index Excess Return | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Macquarie Aluminum Dynamic Selection Index | | |
| | Long Futures Contracts | |
| | Aluminum | 100.00% |
| Macquarie Single Commodity Soymeal type A Excess Return Index | | |
| | Long Futures Contracts | |
| | Soymeal | 100.00% |
| S&P GSCI Aluminum Dynamic Index Excess Return | | |
| | Long Futures Contracts | |
| | Aluminum | 100.00% |
| Abbreviations: |
| EMU | —European Economic and Monetary Union |
| ESTR | —Euro Short-Term Rate |
| EUR | —Euro |
| EURIBOR | —Euro Interbank Offered Rate |
| GBP | —British Pound Sterling |
| JPY | —Japanese Yen |
| SOFR | —Secured Overnight Financing Rate |
| SONIA | —Sterling Overnight Index Average |
| TONAR | —Tokyo Overnight Average Rate |
| USD | —U.S. Dollar |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $391,466,119) | $391,363,274 |
| Investments in affiliated money market funds, at value (Cost $648,902,486) | 648,902,486 |
| Other investments: | |
| Swaps receivable — OTC | 411,788 |
| Unrealized appreciation on swap agreements — OTC | 1,484,135 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 78,495,001 |
| Cash collateral — OTC Derivatives | 7,670,000 |
| Foreign currencies, at value (Cost $35,453,214) | 35,385,945 |
| Receivable for: | |
| Fund shares sold | 760,425 |
| Dividends | 2,749,825 |
| Interest | 84,111 |
| Investment for trustee deferred compensation and retirement plans | 578,254 |
| Other assets | 50,497 |
| Total assets | 1,167,935,741 |
| Liabilities: | |
| Other investments: | |
| Variation margin payable — futures contracts | 5,553,728 |
| Swaps payable — OTC | 2,885,478 |
| Unrealized depreciation on swap agreements—OTC | 9,861,283 |
| Payable for: | |
| Fund shares reacquired | 1,649,076 |
| Accrued fees to affiliates | 567,932 |
| Accrued trustees’ and officers’ fees and benefits | 1,962 |
| Accrued other operating expenses | 180,863 |
| Trustee deferred compensation and retirement plans | 610,678 |
| Total liabilities | 21,311,000 |
| Net assets applicable to shares outstanding | $1,146,624,741 |
| Net assets consist of: | |
| Shares of beneficial interest | $1,232,778,294 |
| Distributable earnings (loss) | (86,153,553) |
| | $1,146,624,741 |
| Net Assets: |
| Class A | $652,193,604 |
| Class C | $49,693,031 |
| Class R | $16,372,533 |
| Class Y | $395,324,938 |
| Class R5 | $9,091,040 |
| Class R6 | $23,949,595 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 72,460,345 |
| Class C | 5,985,686 |
| Class R | 1,873,509 |
| Class Y | 42,695,028 |
| Class R5 | 980,778 |
| Class R6 | 2,574,492 |
| Class A: | |
| Net asset value per share | $9.00 |
Maximum offering price per share
(Net asset value of $9.00 ÷ 94.50%) | $9.52 |
| Class C: | |
| Net asset value and offering price per share | $8.30 |
| Class R: | |
| Net asset value and offering price per share | $8.74 |
| Class Y: | |
| Net asset value and offering price per share | $9.26 |
| Class R5: | |
| Net asset value and offering price per share | $9.27 |
| Class R6: | |
| Net asset value and offering price per share | $9.30 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $21,325,719 |
| Dividends from affiliated money market funds | 38,423,786 |
| Total investment income | 59,749,505 |
| Expenses: | |
| Advisory fees | 11,679,184 |
| Administrative services fees | 183,412 |
| Custodian fees | 85,496 |
| Distribution fees: | |
| Class A | 1,753,012 |
| Class C | 592,790 |
| Class R | 85,434 |
| Transfer agent fees — A, C, R and Y | 1,659,508 |
| Transfer agent fees — R5 | 8,324 |
| Transfer agent fees — R6 | 8,901 |
| Trustees’ and officers’ fees and benefits | 35,881 |
| Registration and filing fees | 93,220 |
| Reports to shareholders | 247,593 |
| Professional services fees | 108,282 |
| Other | 31,217 |
| Total expenses | 16,572,254 |
| Less: Fees waived and/or expense offset arrangement(s) | (656,203) |
| Net expenses | 15,916,051 |
| Net investment income | 43,833,454 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | (1,751,330) |
| Affiliated investment securities | 7,935 |
| Foreign currencies | 1,128,598 |
| Futures contracts | 52,960,047 |
| Swap agreements | 55,802,369 |
| | 108,147,619 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 8,509,226 |
| Affiliated investment securities | (5,890) |
| Foreign currencies | (16,975) |
| Futures contracts | 11,853,643 |
| Swap agreements | 5,008,760 |
| | 25,348,764 |
| Net realized and unrealized gain | 133,496,383 |
| Net increase in net assets resulting from operations | $177,329,837 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 14 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $43,833,454 | $48,840,423 |
| Net realized gain (loss) | 108,147,619 | (36,219,898) |
| Change in net unrealized appreciation (depreciation) | 25,348,764 | (32,839,624) |
| Net increase (decrease) in net assets resulting from operations | 177,329,837 | (20,219,099) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (15,953,610) | — |
| Class C | (929,968) | — |
| Class R | (339,762) | — |
| Class Y | (12,574,677) | — |
| Class R5 | (226,914) | — |
| Class R6 | (634,393) | — |
| Total distributions from distributable earnings | (30,659,324) | — |
| Share transactions–net: | | |
| Class A | (132,388,484) | (133,323,229) |
| Class C | (21,174,661) | (34,846,125) |
| Class R | (1,986,106) | 627,422 |
| Class Y | (187,019,241) | (260,849,730) |
| Class R5 | (2,379,157) | (2,415,232) |
| Class R6 | (5,527,587) | (11,141,843) |
| Net increase (decrease) in net assets resulting from share transactions | (350,475,236) | (441,948,737) |
| Net increase (decrease) in net assets | (203,804,723) | (462,167,836) |
| Net assets: | | |
| Beginning of year | 1,350,429,464 | 1,812,597,300 |
| End of year | $1,146,624,741 | $1,350,429,464 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 15 | Invesco Balanced-Risk Allocation Fund |
Consolidated Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $8.07 | $0.30 | $0.82 | $1.12 | $(0.19) | $— | $(0.19) | $9.00 | 14.02% | $652,194 | 1.30% | 1.35% | 3.35% | 89% |
| Year ended 10/31/23 | 8.24 | 0.25 | (0.42) | (0.17) | — | — | — | 8.07 | (2.06) | 706,256 | 1.29 | 1.34 | 2.95 | 17 |
| Year ended 10/31/22 | 12.09 | (0.04) | (1.29) | (1.33) | (1.43) | (1.09) | (2.52) | 8.24 | (13.99) | 852,412 | 1.31 | 1.35 | (0.47) | 92 |
| Year ended 10/31/21 | 10.12 | (0.15) | 2.25 | 2.10 | (0.13) | — | (0.13) | 12.09 | 20.91 | 1,093,094 | 1.31 | 1.33 | (1.26) | 16 |
| Year ended 10/31/20 | 11.33 | (0.05) | 0.01 | (0.04) | (0.67) | (0.50) | (1.17) | 10.12 | (0.55) | 831,513 | 1.24 | 1.30 | (0.53) | 81 |
| Class C |
| Year ended 10/31/24 | 7.44 | 0.21 | 0.76 | 0.97 | (0.11) | — | (0.11) | 8.30 | 13.17 | 49,693 | 2.05 | 2.10 | 2.60 | 89 |
| Year ended 10/31/23 | 7.66 | 0.17 | (0.39) | (0.22) | — | — | — | 7.44 | (2.87) | 63,864 | 2.04 | 2.09 | 2.20 | 17 |
| Year ended 10/31/22 | 11.36 | (0.11) | (1.19) | (1.30) | (1.31) | (1.09) | (2.40) | 7.66 | (14.57) | 100,109 | 2.06 | 2.10 | (1.22) | 92 |
| Year ended 10/31/21 | 9.50 | (0.22) | 2.12 | 1.90 | (0.04) | — | (0.04) | 11.36 | 20.04 | 167,794 | 2.06 | 2.08 | (2.01) | 16 |
| Year ended 10/31/20 | 10.69 | (0.12) | 0.00 | (0.12) | (0.57) | (0.50) | (1.07) | 9.50 | (1.36) | 349,294 | 1.99 | 2.05 | (1.28) | 81 |
| Class R |
| Year ended 10/31/24 | 7.83 | 0.27 | 0.80 | 1.07 | (0.16) | — | (0.16) | 8.74 | 13.86 | 16,373 | 1.55 | 1.60 | 3.10 | 89 |
| Year ended 10/31/23 | 8.02 | 0.22 | (0.41) | (0.19) | — | — | — | 7.83 | (2.37) | 16,480 | 1.54 | 1.59 | 2.70 | 17 |
| Year ended 10/31/22 | 11.82 | (0.07) | (1.25) | (1.32) | (1.39) | (1.09) | (2.48) | 8.02 | (14.21) | 16,270 | 1.56 | 1.60 | (0.72) | 92 |
| Year ended 10/31/21 | 9.90 | (0.17) | 2.19 | 2.02 | (0.10) | — | (0.10) | 11.82 | 20.52 | 17,666 | 1.56 | 1.58 | (1.51) | 16 |
| Year ended 10/31/20 | 11.10 | (0.08) | 0.02 | (0.06) | (0.64) | (0.50) | (1.14) | 9.90 | (0.77) | 15,202 | 1.49 | 1.55 | (0.78) | 81 |
| Class Y |
| Year ended 10/31/24 | 8.30 | 0.33 | 0.84 | 1.17 | (0.21) | — | (0.21) | 9.26 | 14.31 | 395,325 | 1.05 | 1.10 | 3.60 | 89 |
| Year ended 10/31/23 | 8.46 | 0.28 | (0.44) | (0.16) | — | — | — | 8.30 | (1.89) | 526,412 | 1.04 | 1.09 | 3.20 | 17 |
| Year ended 10/31/22 | 12.34 | (0.02) | (1.31) | (1.33) | (1.46) | (1.09) | (2.55) | 8.46 | (13.66) | 792,547 | 1.06 | 1.10 | (0.22) | 92 |
| Year ended 10/31/21 | 10.33 | (0.12) | 2.29 | 2.17 | (0.16) | — | (0.16) | 12.34 | 21.18 | 1,062,698 | 1.06 | 1.08 | (1.01) | 16 |
| Year ended 10/31/20 | 11.55 | (0.03) | 0.01 | (0.02) | (0.70) | (0.50) | (1.20) | 10.33 | (0.34) | 1,000,148 | 0.99 | 1.05 | (0.28) | 81 |
| Class R5 |
| Year ended 10/31/24 | 8.31 | 0.33 | 0.85 | 1.18 | (0.22) | — | (0.22) | 9.27 | 14.36 | 9,091 | 1.00 | 1.05 | 3.65 | 89 |
| Year ended 10/31/23 | 8.46 | 0.28 | (0.43) | (0.15) | — | — | — | 8.31 | (1.77) | 10,334 | 0.99 | 1.04 | 3.25 | 17 |
| Year ended 10/31/22 | 12.35 | (0.02) | (1.31) | (1.33) | (1.47) | (1.09) | (2.56) | 8.46 | (13.72) | 12,874 | 1.04 | 1.08 | (0.20) | 92 |
| Year ended 10/31/21 | 10.34 | (0.12) | 2.30 | 2.18 | (0.17) | — | (0.17) | 12.35 | 21.22 | 16,750 | 1.02 | 1.04 | (0.97) | 16 |
| Year ended 10/31/20 | 11.56 | (0.03) | 0.02 | (0.01) | (0.71) | (0.50) | (1.21) | 10.34 | (0.26) | 15,707 | 0.94 | 1.00 | (0.23) | 81 |
| Class R6 |
| Year ended 10/31/24 | 8.34 | 0.34 | 0.84 | 1.18 | (0.22) | — | (0.22) | 9.30 | 14.39 | 23,950 | 0.95 | 1.00 | 3.70 | 89 |
| Year ended 10/31/23 | 8.49 | 0.29 | (0.44) | (0.15) | — | — | — | 8.34 | (1.77) | 27,084 | 0.93 | 0.98 | 3.31 | 17 |
| Year ended 10/31/22 | 12.38 | (0.01) | (1.32) | (1.33) | (1.47) | (1.09) | (2.56) | 8.49 | (13.62) | 38,385 | 0.97 | 1.01 | (0.13) | 92 |
| Year ended 10/31/21 | 10.37 | (0.11) | 2.30 | 2.19 | (0.18) | — | (0.18) | 12.38 | 21.26 | 49,008 | 0.95 | 0.97 | (0.90) | 16 |
| Year ended 10/31/20 | 11.59 | (0.02) | 0.02 | 0.00 | (0.72) | (0.50) | (1.22) | 10.37 | (0.21) | 159,353 | 0.86 | 0.92 | (0.15) | 81 |
| (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. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 16 | Invesco Balanced-Risk Allocation Fund |
Notes to Consolidated Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Balanced-Risk Allocation Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Cayman Commodity Fund I Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to the commodity markets primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives and other securities that may provide leveraged and non-leveraged exposure to commodities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to provide total return with a low to moderate correlation to traditional financial market indices.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures ("Valuation Procedures"). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
| 17 | Invesco Balanced-Risk Allocation Fund |
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income 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 consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. 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 |
| 18 | Invesco Balanced-Risk Allocation Fund |
| | foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| 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. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
| K. | Futures Contracts — The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities. |
| L. | Put Options Purchased – The Fund may purchase put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on put options purchased are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased. |
| M. | Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged
| 19 | Invesco Balanced-Risk Allocation Fund |
where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
| N. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| O. | Other Risks - The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in commodity futures and swaps, commodity related exchange-traded funds and exchange-traded notes and commodity linked notes, some or all of which will be owned through the Subsidiary. The Subsidiary, unlike the Fund, may invest without limitation in commodity-linked derivatives and other securities, such as exchange-traded and commodity-linked notes, that may provide leveraged and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. |
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
In addition to risks associated with the underlying commodities, investments in commodity-linked notes may be subject to additional risks, such as non-payment of interest and loss of principal, counterparty risk, lack of a secondary market and risk of greater volatility than traditional equity and debt securities. The value of the commodity-linked notes the Fund buys may fluctuate significantly because the values of the underlying investments to which they are linked are themselves volatile. Additionally, certain commodity-linked notes employ “economic” leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease of the underlying commodity, commodity index, or other economic variable. Such economic leverage will increase the volatility of the value of these commodity-linked notes and the Fund to the extent it invests in such notes.
By investing in the Subsidiary, the Fund is indirectly exposed to risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act, and, except as otherwise noted in the Fund’s prospectus, is not subject to the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or the Subsidiary to operate as intended, and could negatively affect the Fund and its shareholders.
Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser less the amount paid by the Subsidiary to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate |
| First $250 million | 0.950% |
| Next $250 million | 0.925% |
| Next $500 million | 0.900% |
| Next $1.5 billion | 0.875% |
| Next $2.5 billion | 0.850% |
| Next $2.5 billion | 0.825% |
| Next $2.5 billion | 0.800% |
| Over $10 billion | 0.775% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.91%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
| 20 | Invesco Balanced-Risk Allocation Fund |
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of the Fund directly, but are fees and expenses, including management fees, of the investment companies in which the Fund invests. As a result, the total annual fund operating expenses after fee waiver and/or expense reimbursement may exceed the boundary limits above. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $627,771.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $58,224 in front-end sales commissions from the sale of Class A shares and $784 and $3,049 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| U.S. Treasury Securities | $— | $310,844,592 | $— | $310,844,592 |
| Commodity-Linked Securities | — | 71,128,218 | — | 71,128,218 |
| Money Market Funds | 648,902,486 | — | — | 648,902,486 |
| Options Purchased | 9,390,464 | — | — | 9,390,464 |
| Total Investments in Securities | 658,292,950 | 381,972,810 | — | 1,040,265,760 |
| 21 | Invesco Balanced-Risk Allocation Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Other Investments - Assets* | | | | |
| Futures Contracts | $8,863,444 | $— | $— | $8,863,444 |
| Swap Agreements | — | 1,484,135 | — | 1,484,135 |
| | 8,863,444 | 1,484,135 | — | 10,347,579 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (31,889,634) | — | — | (31,889,634) |
| Swap Agreements | — | (9,861,283) | — | (9,861,283) |
| | (31,889,634) | (9,861,283) | — | (41,750,917) |
| Total Other Investments | (23,026,190) | (8,377,148) | — | (31,403,338) |
| Total Investments | $635,266,760 | $373,595,662 | $— | $1,008,862,422 |
| * | Unrealized appreciation (depreciation). |
NOTE 4—Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| | Value |
| Derivative Assets | Commodity
Risk | Equity
Risk | Total |
| Unrealized appreciation on futures contracts —Exchange-Traded(a) | $60,413 | $8,803,031 | $8,863,444 |
| Unrealized appreciation on swap agreements — OTC | 1,050,938 | 433,197 | 1,484,135 |
| Options purchased, at value — Exchange-Traded(b) | — | 9,390,464 | 9,390,464 |
| Total Derivative Assets | 1,111,351 | 18,626,692 | 19,738,043 |
| Derivatives not subject to master netting agreements | (60,413) | (18,193,495) | (18,253,908) |
| Total Derivative Assets subject to master netting agreements | $1,050,938 | $433,197 | $1,484,135 |
| | Value |
| Derivative Liabilities | Commodity
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts —Exchange-Traded(a) | $(809,756) | $(1,000,945) | $(30,078,933) | $(31,889,634) |
| Unrealized depreciation on swap agreements — OTC | (2,996,258) | (6,865,025) | — | (9,861,283) |
| Total Derivative Liabilities | (3,806,014) | (7,865,970) | (30,078,933) | (41,750,917) |
| Derivatives not subject to master netting agreements | 809,756 | 1,000,945 | 30,078,933 | 31,889,634 |
| Total Derivative Liabilities subject to master netting agreements | $(2,996,258) | $(6,865,025) | $— | $(9,861,283) |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
| (b) | Options purchased, at value as reported in the Consolidated Schedule of Investments. |
| 22 | Invesco Balanced-Risk Allocation Fund |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| | Financial Derivative Assets | | Financial Derivative Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount(a) |
| Fund | | | | | | | |
| BNP Paribas S.A. | $104,313 | | $(1,076,632) | $(972,319) | $— | $580,000 | $(392,319) |
| Citibank, N.A. | 178,069 | | (1,127,826) | (949,757) | — | 430,000 | (519,757) |
| Goldman Sachs International | 15,000 | | — | 15,000 | — | — | 15,000 |
| J.P. Morgan Chase Bank, N.A. | — | | (4,126,297) | (4,126,297) | — | 1,790,000 | (2,336,297) |
| Macquarie Bank Ltd. | 72,208 | | (1,653) | 70,555 | — | — | 70,555 |
| Merrill Lynch International | — | | (950,155) | (950,155) | — | 620,000 | (330,155) |
| Morgan Stanley and Co. International PLC | 63,607 | | — | 63,607 | — | (20,000) | 43,607 |
| Subtotal - Fund | 433,197 | | (7,282,563) | (6,849,366) | — | 3,400,000 | (3,449,366) |
| Subsidiary | | | | | | | |
| Barclays Bank PLC | — | | (150,081) | (150,081) | — | 150,081 | — |
| Canadian Imperial Bank of Commerce | 281,184 | | (1,108,888) | (827,704) | — | 827,704 | — |
| Cargill, Inc. | 658,209 | | (273,000) | 385,209 | — | — | 385,209 |
| Goldman Sachs International | 111,542 | | (448,708) | (337,166) | — | 337,166 | — |
| J.P. Morgan Chase Bank, N.A. | — | | (277,293) | (277,293) | — | — | (277,293) |
| Macquarie Bank Ltd. | — | | (489,314) | (489,314) | — | 210,000 | (279,314) |
| Merrill Lynch International | 245,778 | | (310,932) | (65,154) | — | — | (65,154) |
| Morgan Stanley and Co. International PLC | — | | (267,932) | (267,932) | — | — | (267,932) |
| Royal Bank of Canada | 166,013 | | (2,138,050) | (1,972,037) | — | 1,972,037 | — |
| Subtotal - Subsidiary | 1,462,726 | | (5,464,198) | (4,001,472) | — | 3,496,988 | (504,484) |
| Total | $1,895,923 | | $(12,746,761) | $(10,850,838) | $— | $6,896,988 | $(3,953,850) |
| (a) | The Fund and the Subsidiary are recognized as separate legal entities and as such are subject to separate netting arrangements with the Counterparty. |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Consolidated Statement of Operations |
| | Commodity
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Realized Gain (Loss): | | | | |
| Futures contracts | $(6,097,106) | $29,770,021 | $29,287,132 | $52,960,047 |
| Options purchased(a) | - | (17,519,020) | - | (17,519,020) |
| Swap agreements | (1,996,598) | 57,798,967 | - | 55,802,369 |
| Change in Net Unrealized Appreciation (Depreciation): | | | | |
| Futures contracts | (4,347,031) | 27,108,885 | (10,908,211) | 11,853,643 |
| Options purchased(a) | - | (4,642,512) | - | (4,642,512) |
| Swap agreements | (2,985,975) | 7,994,735 | - | 5,008,760 |
| Total | $(15,426,710) | $100,511,076 | $18,378,921 | $103,463,287 |
| (a) | Options purchased, at value as reported in the Consolidated Schedule of Investments. |
| 23 | Invesco Balanced-Risk Allocation Fund |
The table below summarizes the average notional value of derivatives held during the period.
| | Futures
Contracts | Index
Options
Purchased | Swap
Agreements |
| Average notional value | $1,402,136,430 | $277,247,973 | $736,873,368 |
| Average contracts | — | 2,744 | — |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $28,432.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $30,659,324 | $— |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $128,088,099 |
| Net unrealized appreciation (depreciation) — investments | (4,057,563) |
| Net unrealized appreciation (depreciation) — foreign currencies | (186,257) |
| Temporary book/tax differences | (363,187) |
| Capital loss carryforward | (209,634,645) |
| Shares of beneficial interest | 1,232,778,294 |
| Total net assets | $1,146,624,741 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to derivative instruments and Subsidiary differences.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $90,566,228 | $119,068,417 | $209,634,645 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $82,719,871 and $79,715,263, respectively. As of October 31, 2024, the aggregate cost of investments,
| 24 | Invesco Balanced-Risk Allocation Fund |
including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $18,286,742 |
| Aggregate unrealized (depreciation) of investments | (22,344,305) |
| Net unrealized appreciation (depreciation) of investments | $(4,057,563) |
Cost of investments for tax purposes is $1,012,919,985.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions, income from the Subsidiary and derivative instruments, on October 31, 2024, undistributed net investment income was increased by $79,304,975, undistributed net realized gain (loss) was decreased by $61,622,285 and shares of beneficial interest was decreased by $17,682,690. This reclassification had no effect on the net assets of the Fund.
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 3,205,051 | $28,343,494 | | 3,995,391 | $33,583,122 |
| Class C | 656,548 | 5,343,605 | | 1,077,277 | 8,363,967 |
| Class R | 359,978 | 3,094,902 | | 511,999 | 4,183,153 |
| Class Y | 7,640,795 | 68,574,454 | | 7,383,616 | 63,713,825 |
| Class R5 | 141,418 | 1,272,031 | | 64,616 | 557,952 |
| Class R6 | 4,838,973 | 44,319,517 | | 1,085,780 | 9,334,383 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 1,722,898 | 14,524,010 | | - | - |
| Class C | 108,379 | 848,611 | | - | - |
| Class R | 41,151 | 337,442 | | - | - |
| Class Y | 1,154,088 | 9,982,861 | | - | - |
| Class R5 | 24,698 | 213,888 | | - | - |
| Class R6 | 64,073 | 556,157 | | - | - |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 1,305,271 | 11,504,490 | | 2,620,062 | 21,971,585 |
| Class C | (1,410,674) | (11,504,490) | | (2,831,170) | (21,971,585) |
| Reacquired: | | | | | |
| Class A | (21,297,656) | (186,760,478) | | (22,506,936) | (188,877,936) |
| Class C | (1,952,037) | (15,862,387) | | (2,736,395) | (21,238,507) |
| Class R | (631,093) | (5,418,450) | | (436,374) | (3,555,731) |
| Class Y | (29,539,418) | (265,576,556) | | (37,680,656) | (324,563,555) |
| Class R5 | (429,223) | (3,865,076) | | (342,247) | (2,973,184) |
| Class R6 | (5,576,981) | (50,403,261) | | (2,360,155) | (20,476,226) |
| Net increase (decrease) in share activity | (39,573,761) | $(350,475,236) | | (52,155,192) | $(441,948,737) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 46% 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. |
| 25 | Invesco Balanced-Risk Allocation Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Balanced-Risk Allocation Fund
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of Invesco Balanced-Risk Allocation Fund and its subsidiary (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related consolidated statement of operations for the year ended October 31, 2024, the consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the consolidated financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 26 | Invesco Balanced-Risk Allocation Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Balanced-Risk Allocation Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Custom Invesco Balanced-Risk Allocation Style Index (Index). The Board noted that performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one and five year periods and the fifth quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board considered that the Fund has higher commodity beta and lower equity beta relative to its peers due to its
| 27 | Invesco Balanced-Risk Allocation Fund |
risk parity approach, which adversely impacted short-term performance, and also noted that the Fund’s tactical overlay was challenged due to market whipsaws. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were above and reasonably comparable to, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual and actual management fees were in the fourth quintile of its expense group, and discussed with management reasons for such relative contractual and actual management fees. As previously noted, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management, including with respect to the Fund’s unique, differentiated strategy relative to peers. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer, and subsequently with representatives of management.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco
Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also compared the Fund’s effective advisory fee rate (defined for this purpose as the advisory fee rate before the application of advisory fee waivers/expense limitations) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2023.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating
that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its
| 28 | Invesco Balanced-Risk Allocation Fund |
securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 29 | Invesco Balanced-Risk Allocation Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Qualified Dividend Income* | 0.00% |
| Corporate Dividends Received Deduction* | 0.00% |
| U.S. Treasury Obligations* | 72.74% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 45.07% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 30 | Invesco Balanced-Risk Allocation Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 31 | Invesco Balanced-Risk Allocation Fund |
| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | IBRA-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Balanced-Risk Commodity Strategy Fund
Nasdaq:
A: BRCAX ■ C: BRCCX ■ R: BRCRX ■ Y: BRCYX ■ R5: BRCNX ■ R6: IBRFX
Consolidated Schedule of Investments
October 31, 2024
| | Interest
Rate | Maturity
Date | Principal
Amount
(000) | Value |
| U.S. Treasury Securities–19.89% | | |
| U.S. Treasury Floating Rate Notes–19.89% |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.25%)(a) | 4.74% | 01/31/2026 | | $ 48,600 | $ 48,623,449 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.15%)(a) | 4.64% | 04/30/2026 | | 50,500 | 50,462,665 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.18%)(a) | 4.67% | 07/31/2026 | | 48,000 | 47,982,193 |
| Total U.S. Treasury Securities (Cost $147,100,000) | | 147,068,307 |
| | | Expiration
Date | | |
| Commodity-Linked Securities–14.99% |
| Bank of Montreal, 1 month SOFR (linked to the Bloomberg Gold Subindex, multiplied by 2)(b)(c) | | 06/03/2025 | | 32,000 | 51,984,926 |
| Barclays Bank PLC, U.S. Federal Funds Effective Rate minus 0.06% (linked to the Barclays Gold Nearby Total Return Index, multiplied by 2.5)(b)(c) | | 02/03/2025 | | 14,500 | 24,518,175 |
| Royal Bank of Canada (Canada), (linked to RBC Enhanced Copper 2x Index, multiplied by 2)(b) | | 09/30/2025 | | 16,800 | 17,925,259 |
| Societe Generale S.A. (France), U.S. Federal Funds Effective Rate minus 0.02% (linked to the Societe Generale Soybean Meal Index, multiplied by 2)(b)(c) | | 02/28/2025 | | 20,700 | 16,400,962 |
| Total Commodity-Linked Securities (Cost $84,000,000) | | 110,829,322 |
| | | | Shares | |
| Money Market Funds–63.16% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | | | | 110,229,844 | 110,229,844 |
| Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio (Ireland), Agency Class, 5.04%(d)(e) | | | | 153,034,155 | 153,034,155 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(d)(e) | | | | 203,749,531 | 203,749,531 |
| Total Money Market Funds (Cost $467,013,530) | | 467,013,530 |
| TOTAL INVESTMENTS IN SECURITIES–98.04% (Cost $698,113,530) | | 724,911,159 |
| OTHER ASSETS LESS LIABILITIES–1.96% | | 14,465,156 |
| NET ASSETS–100.00% | | $739,376,315 |
Investment Abbreviations:
| SOFR | – Secured Overnight Financing Rate |
Notes to Consolidated Schedule of Investments:
| (a) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2024. |
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $110,829,322, which represented 14.99% of the Fund’s Net Assets. |
| (c) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
| (d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $116,900,583 | $92,646,402 | $(99,317,141) | $- | $- | $110,229,844 | $5,581,836 |
| Invesco Liquid Assets Portfolio, Institutional Class | 82,535,610 | 54,867,675 | (137,405,056) | (37,947) | 39,718 | - | 2,980,337 |
| Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Agency Class | 171,052,283 | 441,692,218 | (459,710,346) | - | - | 153,034,155 | 8,428,794 |
| Invesco Treasury Portfolio, Institutional Class | 133,600,667 | 192,146,509 | (121,997,645) | - | - | 203,749,531 | 7,373,325 |
| Total | $504,089,143 | $781,352,804 | $(818,430,188) | $(37,947) | $39,718 | $467,013,530 | $24,364,292 |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Balanced-Risk Commodity Strategy Fund |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk |
| Coffee ’C’ | 364 | December-2024 | $33,565,350 | $1,552,973 | $1,552,973 |
| Cotton No. 2 | 401 | December-2024 | 13,948,785 | (2,231,569) | (2,231,569) |
| Lean Hogs | 222 | December-2024 | 7,441,440 | 925,139 | 925,139 |
| Soybean | 443 | July-2025 | 23,008,313 | (811,392) | (811,392) |
| Wheat | 403 | December-2024 | 11,495,575 | (510,566) | (510,566) |
| Total Futures Contracts | $(1,075,415) | $(1,075,415) |
| (a) | Futures contracts collateralized by $9,533,200 cash held with Goldman Sachs International, the futures commission merchant. |
| Open Over-The-Counter Total Return Swap Agreements(a)(b) |
| Counterparty | Pay/
Receive | Reference Entity(c) | Fixed
Rate | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk | | | | | | | | | | | |
| Barclays Bank PLC | Receive | Barclays Silver Nearby S2 Excess Return | 0.16% | Monthly | 5,300 | August—2025 | USD | 1,654,649 | $— | $54,190 | $54,190 |
| Canadian Imperial Bank of Commerce | Pay | CIBC Natural Gas Standard Roll Excess Return Index | 0.10 | Monthly | 622,000 | August—2025 | USD | 6,572,861 | — | 733,400 | 733,400 |
| Cargill, Inc. | Receive | Cargill Single Commodity Index | 0.41 | Monthly | 105,500 | June—2025 | USD | 34,918,517 | — | 294,197 | 294,197 |
| Goldman Sachs International | Receive | Enhanced Strategy AB141 on the S&P GSCI Sugar Excess Return Index | 0.30 | Monthly | 8,700 | June—2025 | USD | 2,834,393 | — | 23,880 | 23,880 |
| J.P. Morgan Chase Bank, N.A. | Pay | S&P GSCI Gold Index Excess Return | 0.08 | Monthly | 77,500 | December—2024 | USD | 13,818,707 | — | 52,568 | 52,568 |
| Macquarie Bank Ltd. | Pay | Macquarie Single Commodity Nickel Type A Excess Return Index | 0.17 | Monthly | 28,000 | June—2025 | USD | 2,596,118 | — | 75,496 | 75,496 |
| Macquarie Bank Ltd. | Receive | Macquarie Commodity Customized Product 182 Excess Return Index | 0.34 | Monthly | 14,700 | October—2025 | USD | 4,538,507 | — | 122,994 | 122,994 |
| Merrill Lynch International | Receive | MLCX Dynamic Enhanced Copper Excess Return Index | 0.25 | Monthly | 37,100 | January—2025 | USD | 33,774,575 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCX Natural Gas Annual Excess Return Index | 0.28 | Monthly | 166,000 | October—2025 | USD | 20,159,588 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCX1XBE Excess Return Index | 0.10 | Monthly | 68,200 | August—2025 | USD | 28,247,281 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCXLXAE Excess Return Index | 0.25 | Monthly | 50,800 | May—2025 | USD | 15,667,609 | — | 0 | 0 |
| Morgan Stanley and Co. International PLC | Pay | Morgan Stanley 2 Soyabean Meal | 0.03 | Monthly | 4,650 | August—2025 | USD | 2,178,924 | — | 76,747 | 76,747 |
| Morgan Stanley and Co. International PLC | Receive | Morgan Stanley MSCY2KW0 Index | 0.05 | Monthly | 89,000 | February—2025 | USD | 15,803,436 | — | 523,418 | 523,418 |
| Morgan Stanley and Co. International PLC | Receive | Morgan Stanley Soybean Oil Dynamic Roll Index | 0.30 | Monthly | 149,100 | December—2024 | USD | 28,323,945 | — | 2,145,743 | 2,145,743 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Balanced-Risk Commodity Strategy Fund |
| Open Over-The-Counter Total Return Swap Agreements(a)(b)—(continued) |
| Counterparty | Pay/
Receive | Reference Entity(c) | Fixed
Rate | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Royal Bank of Canada | Receive | RBC Enhanced Brent Crude Oil 01 Excess Return Index | 0.32% | Monthly | 19,700 | June—2025 | USD | 8,650,077 | $— | $0 | $0 |
| UBS AG | Receive | UBS Modified Roll Select Heating Oil Strategy | 0.30 | Monthly | 317,500 | December—2024 | USD | 32,382,714 | — | 273,240 | 273,240 |
| Subtotal — Appreciation | | | | | — | 4,375,873 | 4,375,873 |
| Commodity Risk | | | | | | | | | | | |
| Barclays Bank PLC | Receive | Barclays Live Cattle Roll Yield Excess Return Index | 0.47 | Monthly | 62,200 | August—2025 | USD | 7,935,103 | — | (46,843) | (46,843) |
| Barclays Bank PLC | Receive | Barclays WTI Crude Roll Yield Excess Return Index | 0.17 | Monthly | 14,400 | April—2025 | USD | 5,539,894 | — | (59,350) | (59,350) |
| BNP Paribas S.A. | Receive | BNP Paribas Commodity Daily Dynamic Curve CO Index | 0.25 | Monthly | 33,650 | August—2025 | USD | 18,531,812 | — | (800,197) | (800,197) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2 | 0.27 | Monthly | 68,200 | February—2025 | USD | 8,097,195 | — | (238,263) | (238,263) |
| Citibank, N.A. | Receive | Citi Commodities Curve Beta Enhanced Extended Cotton (Daily Rebalancing) Excess Return Index | 0.20 | Monthly | 145,200 | February—2025 | USD | 15,171,077 | — | (111,949) | (111,949) |
| Goldman Sachs International | Receive | Enhanced Strategy AB31 on the S&P GSCI Cotton Excess Return Index | 0.35 | Monthly | 174,500 | June—2025 | USD | 9,611,968 | — | (481,744) | (481,744) |
| J.P. Morgan Chase Bank, N.A. | Receive | J.P. Morgan Contag Beta Gas Oil Excess Return Index | 0.25 | Monthly | 107,400 | February—2025 | USD | 37,964,396 | — | (309,913) | (309,913) |
| Macquarie Bank Ltd. | Receive | Macquarie Aluminum Dynamic Selection Index | 0.30 | Monthly | 1,093,000 | February—2025 | USD | 61,760,074 | — | (1,544,737) | (1,544,737) |
| Macquarie Bank Ltd. | Receive | Macquarie Single Commodity Silver type A Excess Return Index | 0.16 | Monthly | 129,200 | February—2025 | USD | 40,007,814 | — | (1,164,260) | (1,164,260) |
| Merrill Lynch International | Pay | Merrill Lynch Gold Excess Return Index | 0.01 | Monthly | 54,000 | March—2025 | USD | 15,032,623 | — | (5) | (5) |
| Morgan Stanley and Co. International PLC | Pay | Morgan Stanley MSCY2CN0 Index | 0.05 | Monthly | 16,700 | September—2025 | USD | 5,019,080 | — | (74,404) | (74,404) |
| Morgan Stanley and Co. International PLC | Receive | Morgan Stanley MSCY2XBD0 Index | 0.15 | Monthly | 20,500 | August—2025 | USD | 16,907,225 | — | (285,856) | (285,856) |
| Subtotal — Depreciation | | | | | — | (5,117,521) | (5,117,521) |
| Total — Total Return Swap Agreements | | | | | $— | $(741,648) | $(741,648) |
| (a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $5,150,000. |
| (b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| (c) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Balanced-Risk Commodity Strategy Fund |
| Reference Entity Components |
| Reference Entity | Underlying Components | Percentage |
| Bloomberg Gold Subindex | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Barclays Gold Nearby Total Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| RBC Enhanced Copper 2x Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| Societe Generale Soybean Meal Index | | |
| | Long Futures Contracts | |
| | Soybean Meal | 100.00% |
| Barclays Silver Nearby S2 Excess Return | | |
| | Long Futures Contracts | |
| | Silver | 100.00% |
| CIBC Natural Gas Standard Roll Excess Return Index | | |
| | Long Futures Contracts | |
| | Natural Gas | 100.00% |
| Cargill Single Commodity Index | | |
| | Long Futures Contracts | |
| | Sugar | 100.00% |
| Enhanced Strategy AB141 on the S&P GSCI Sugar Excess Return Index | | |
| | Long Futures Contracts | |
| | Sugar | 100.00% |
| S&P GSCI Gold Index Excess Return | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Macquarie Single Commodity Nickel Type A Excess Return Index | | |
| | Long Futures Contracts | |
| | Nickel | 100.00% |
| Macquarie Commodity Customized Product 182 Excess Return Index | | |
| | Long Futures Contracts | |
| | Sugar | 100.00% |
| MLCX Dynamic Enhanced Copper Excess Return Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| MLCX1XBE Excess Return Index | | |
| | Long Futures Contracts | |
| | Gasoline Unleaded | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Balanced-Risk Commodity Strategy Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| MLCXLXAE Excess Return Index | | |
| | Long Futures Contracts | |
| | Cocoa | 100.00% |
| Morgan Stanley 2 Soyabean Meal | | |
| | Long Futures Contracts | |
| | Soybean | 100.00% |
| Morgan Stanley Soybean Oil Dynamic Roll Index | | |
| | Long Futures Contracts | |
| | Soybean Oil | 100.00% |
| RBC Enhanced Brent Crude Oil 01 Excess Return Index | | |
| | Long Futures Contracts | |
| | Brent Crude | 100.00% |
| UBS Modified Roll Select Heating Oil Strategy | | |
| | Long Futures Contracts | |
| | Heating Oil | 100.00% |
| Barclays Live Cattle Roll Yield Excess Return Index | | |
| | Long Futures Contracts | |
| | Live Cattle | 100.00% |
| Barclays WTI Crude Roll Yield Excess Return Index | | |
| | Long Futures Contracts | |
| | WTI Crude | 100.00% |
| BNP Paribas Commodity Daily Dynamic Curve CO Index | | |
| | Long Futures Contracts | |
| | Brent Crude | 100.00% |
| Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2 | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| Citi Commodities Curve Beta Enhanced Extended Cotton (Daily Rebalancing) Excess Return Index | | |
| | Long Futures Contracts | |
| | Cotton | 100.00% |
| Enhanced Strategy AB31 on the S&P GSCI Cotton Excess Return Index | | |
| | Long Futures Contracts | |
| | Cotton | 100.00% |
| J.P. Morgan Contag Beta Gas Oil Excess Return Index | | |
| | Long Futures Contracts | |
| | Gas Oil | 100.00% |
| Macquarie Aluminum Dynamic Selection Index | | |
| | Long Futures Contracts | |
| | Aluminium | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Balanced-Risk Commodity Strategy Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| Macquarie Single Commodity Silver type A Excess Return Index | | |
| | Long Futures Contracts | |
| | Silver | 100.00% |
| Merrill Lynch Gold Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Morgan Stanley MSCY2CN0 Index | | |
| | Long Futures Contracts | |
| | Corn | 100.00% |
| Morgan Stanley MSCY2XBD0 Index | | |
| | Long Futures Contracts | |
| | Gasoline RBOB | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $231,100,000) | $257,897,629 |
| Investments in affiliated money market funds, at value (Cost $467,013,530) | 467,013,530 |
| Other investments: | |
| Swaps receivable — OTC | 980,043 |
| Unrealized appreciation on swap agreements — OTC | 4,375,873 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 9,533,200 |
| Cash collateral — OTC Derivatives | 5,150,000 |
| Receivable for: | |
| Fund shares sold | 1,228,762 |
| Dividends | 1,910,721 |
| Interest | 19,425 |
| Investment for trustee deferred compensation and retirement plans | 73,441 |
| Other assets | 26,217 |
| Total assets | 748,208,841 |
| Liabilities: | |
| Other investments: | |
| Variation margin payable — futures contracts | 554,288 |
| Swaps payable — OTC | 1,990,157 |
| Unrealized depreciation on swap agreements—OTC | 5,117,521 |
| Payable for: | |
| Fund shares reacquired | 566,979 |
| Accrued fees to affiliates | 352,964 |
| Accrued trustees’ and officers’ fees and benefits | 1,568 |
| Accrued other operating expenses | 133,516 |
| Trustee deferred compensation and retirement plans | 115,533 |
| Total liabilities | 8,832,526 |
| Net assets applicable to shares outstanding | $739,376,315 |
| Net assets consist of: | |
| Shares of beneficial interest | $681,478,134 |
| Distributable earnings | 57,898,181 |
| | $739,376,315 |
| Net Assets: |
| Class A | $63,880,296 |
| Class C | $16,490,664 |
| Class R | $8,945,503 |
| Class Y | $324,116,567 |
| Class R5 | $144,733,925 |
| Class R6 | $181,209,360 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 9,500,958 |
| Class C | 2,733,170 |
| Class R | 1,372,396 |
| Class Y | 46,458,189 |
| Class R5 | 20,624,603 |
| Class R6 | 25,759,845 |
| Class A: | |
| Net asset value per share | $6.72 |
Maximum offering price per share
(Net asset value of $6.72 ÷ 94.50%) | $7.11 |
| Class C: | |
| Net asset value and offering price per share | $6.03 |
| Class R: | |
| Net asset value and offering price per share | $6.52 |
| Class Y: | |
| Net asset value and offering price per share | $6.98 |
| Class R5: | |
| Net asset value and offering price per share | $7.02 |
| Class R6: | |
| Net asset value and offering price per share | $7.03 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $10,552,035 |
| Dividends from affiliated money market funds | 24,364,292 |
| Total investment income | 34,916,327 |
| Expenses: | |
| Advisory fees | 7,627,082 |
| Administrative services fees | 108,180 |
| Custodian fees | 77,740 |
| Distribution fees: | |
| Class A | 168,453 |
| Class C | 181,560 |
| Class R | 46,421 |
| Transfer agent fees — A, C, R and Y | 1,095,744 |
| Transfer agent fees — R5 | 142,650 |
| Transfer agent fees — R6 | 53,620 |
| Trustees’ and officers’ fees and benefits | 32,080 |
| Registration and filing fees | 93,012 |
| Reports to shareholders | 271,393 |
| Professional services fees | 103,932 |
| Other | 23,626 |
| Total expenses | 10,025,493 |
| Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (1,547,276) |
| Net expenses | 8,478,217 |
| Net investment income | 26,438,110 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | 15,425,769 |
| Affiliated investment securities | 39,718 |
| Futures contracts | (2,874,834) |
| Swap agreements | (27,556,699) |
| | (14,966,046) |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 12,092,869 |
| Affiliated investment securities | (37,947) |
| Futures contracts | (1,391,292) |
| Swap agreements | 4,257,131 |
| | 14,920,761 |
| Net realized and unrealized gain (loss) | (45,285) |
| Net increase in net assets resulting from operations | $26,392,825 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $26,438,110 | $30,058,341 |
| Net realized gain (loss) | (14,966,046) | (27,329,839) |
| Change in net unrealized appreciation | 14,920,761 | 17,944,651 |
| Net increase in net assets resulting from operations | 26,392,825 | 20,673,153 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (2,541,305) | (8,230,326) |
| Class C | (768,253) | (2,429,389) |
| Class R | (280,924) | (1,057,391) |
| Class Y | (11,636,025) | (46,238,655) |
| Class R5 | (4,841,656) | (14,029,824) |
| Class R6 | (6,956,748) | (22,438,033) |
| Total distributions from distributable earnings | (27,024,911) | (94,423,618) |
| Share transactions–net: | | |
| Class A | (10,846,200) | (5,013,334) |
| Class C | (4,803,303) | (2,522,465) |
| Class R | 55,331 | (1,988,162) |
| Class Y | (28,442,926) | (124,915,377) |
| Class R5 | 1,735,796 | (1,844,359) |
| Class R6 | (25,735,434) | (161,002,328) |
| Net increase (decrease) in net assets resulting from share transactions | (68,036,736) | (297,286,025) |
| Net increase (decrease) in net assets | (68,668,822) | (371,036,490) |
| Net assets: | | |
| Beginning of year | 808,045,137 | 1,179,081,627 |
| End of year | $739,376,315 | $808,045,137 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $6.73 | $0.22 | $0.01 | $0.23 | $(0.21) | $(0.03) | $(0.24) | $6.72 | 3.63% | $63,880 | 1.34% | 1.63% | 3.35% | 87% |
| Year ended 10/31/23 | 7.28 | 0.21 | (0.09) | 0.12 | (0.67) | — | (0.67) | 6.73 | 1.91 | 75,011 | 1.32 | 1.57 | 3.10 | 17 |
| Year ended 10/31/22 | 8.01 | (0.03) | 0.47 | 0.44 | (1.17) | — | (1.17) | 7.28 | 6.63 | 86,968 | 1.31 | 1.56 | (0.41) | 106 |
| Year ended 10/31/21 | 5.81 | (0.10) | 2.30 | 2.20 | — | — | — | 8.01 | 37.87 | 45,976 | 1.33 | 1.67 | (1.29) | 14 |
| Year ended 10/31/20 | 6.22 | (0.03) | (0.32) | (0.35) | (0.06) | — | (0.06) | 5.81 | (5.75) | 17,291 | 1.31 | 1.73 | (0.51) | 186 |
| Class C |
| Year ended 10/31/24 | 6.10 | 0.15 | 0.01 | 0.16 | (0.20) | (0.03) | (0.23) | 6.03 | 2.86 | 16,491 | 2.09 | 2.38 | 2.60 | 87 |
| Year ended 10/31/23 | 6.65 | 0.14 | (0.07) | 0.07 | (0.62) | — | (0.62) | 6.10 | 1.22 | 21,628 | 2.07 | 2.32 | 2.35 | 17 |
| Year ended 10/31/22 | 7.44 | (0.08) | 0.42 | 0.34 | (1.13) | — | (1.13) | 6.65 | 5.69 | 26,355 | 2.06 | 2.31 | (1.16) | 106 |
| Year ended 10/31/21 | 5.43 | (0.14) | 2.15 | 2.01 | — | — | — | 7.44 | 37.02 | 17,125 | 2.08 | 2.42 | (2.04) | 14 |
| Year ended 10/31/20 | 5.87 | (0.07) | (0.32) | (0.39) | (0.05) | — | (0.05) | 5.43 | (6.63) | 4,393 | 2.06 | 2.48 | (1.26) | 186 |
| Class R |
| Year ended 10/31/24 | 6.55 | 0.20 | 0.01 | 0.21 | (0.21) | (0.03) | (0.24) | 6.52 | 3.38 | 8,946 | 1.59 | 1.88 | 3.10 | 87 |
| Year ended 10/31/23 | 7.09 | 0.19 | (0.07) | 0.12 | (0.66) | — | (0.66) | 6.55 | 1.85 | 8,830 | 1.57 | 1.82 | 2.85 | 17 |
| Year ended 10/31/22 | 7.85 | (0.05) | 0.45 | 0.40 | (1.16) | — | (1.16) | 7.09 | 6.17 | 11,779 | 1.56 | 1.81 | (0.66) | 106 |
| Year ended 10/31/21 | 5.70 | (0.11) | 2.26 | 2.15 | — | — | — | 7.85 | 37.72 | 2,932 | 1.58 | 1.92 | (1.54) | 14 |
| Year ended 10/31/20 | 6.12 | (0.04) | (0.33) | (0.37) | (0.05) | — | (0.05) | 5.70 | (6.03) | 1,603 | 1.56 | 1.98 | (0.76) | 186 |
| Class Y |
| Year ended 10/31/24 | 6.96 | 0.25 | 0.01 | 0.26 | (0.21) | (0.03) | (0.24) | 6.98 | 4.00 | 324,117 | 1.09 | 1.38 | 3.60 | 87 |
| Year ended 10/31/23 | 7.50 | 0.23 | (0.08) | 0.15 | (0.69) | — | (0.69) | 6.96 | 2.25 | 352,801 | 1.07 | 1.32 | 3.35 | 17 |
| Year ended 10/31/22 | 8.22 | (0.01) | 0.47 | 0.46 | (1.18) | — | (1.18) | 7.50 | 6.80 | 515,659 | 1.06 | 1.31 | (0.16) | 106 |
| Year ended 10/31/21 | 5.94 | (0.08) | 2.36 | 2.28 | — | — | — | 8.22 | 38.38 | 896,762 | 1.08 | 1.42 | (1.04) | 14 |
| Year ended 10/31/20 | 6.36 | (0.01) | (0.35) | (0.36) | (0.06) | — | (0.06) | 5.94 | (5.74) | 316,851 | 1.06 | 1.48 | (0.26) | 186 |
| Class R5 |
| Year ended 10/31/24 | 7.00 | 0.25 | 0.01 | 0.26 | (0.21) | (0.03) | (0.24) | 7.02 | 3.97 | 144,734 | 1.09 | 1.22 | 3.60 | 87 |
| Year ended 10/31/23 | 7.54 | 0.23 | (0.08) | 0.15 | (0.69) | — | (0.69) | 7.00 | 2.23 | 142,191 | 1.07 | 1.20 | 3.35 | 17 |
| Year ended 10/31/22 | 8.26 | (0.01) | 0.47 | 0.46 | (1.18) | — | (1.18) | 7.54 | 6.76 | 154,845 | 1.06 | 1.17 | (0.16) | 106 |
| Year ended 10/31/21 | 5.97 | (0.08) | 2.37 | 2.29 | — | — | — | 8.26 | 38.36 | 156,985 | 1.08 | 1.17 | (1.04) | 14 |
| Year ended 10/31/20 | 6.38 | (0.02) | (0.33) | (0.35) | (0.06) | — | (0.06) | 5.97 | (5.57) | 148,151 | 1.06 | 1.28 | (0.26) | 186 |
| Class R6 |
| Year ended 10/31/24 | 7.02 | 0.25 | 0.00 | 0.25 | (0.21) | (0.03) | (0.24) | 7.03 | 3.82 | 181,209 | 1.09 | 1.15 | 3.60 | 87 |
| Year ended 10/31/23 | 7.56 | 0.24 | (0.09) | 0.15 | (0.69) | — | (0.69) | 7.02 | 2.27 | 207,584 | 1.07 | 1.12 | 3.35 | 17 |
| Year ended 10/31/22 | 8.28 | (0.01) | 0.47 | 0.46 | (1.18) | — | (1.18) | 7.56 | 6.77 | 383,476 | 1.04 | 1.10 | (0.14) | 106 |
| Year ended 10/31/21 | 5.98 | (0.08) | 2.38 | 2.30 | — | — | — | 8.28 | 38.46 | 472,776 | 1.04 | 1.08 | (1.00) | 14 |
| Year ended 10/31/20 | 6.40 | (0.02) | (0.34) | (0.36) | (0.06) | — | (0.06) | 5.98 | (5.71) | 116,491 | 1.06 | 1.19 | (0.26) | 186 |
| (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. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Balanced-Risk Commodity Strategy Fund |
Notes to Consolidated Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Balanced-Risk Commodity Strategy Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Cayman Commodity Fund III Ltd. (the "Subsidiary"), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to the commodity markets primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives and other securities that may provide leveraged and non-leveraged exposure to commodities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to provide total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures ("Valuation Procedures"). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
| 12 | Invesco Balanced-Risk Commodity Strategy Fund |
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income 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 consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Futures Contracts — The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits |
| 13 | Invesco Balanced-Risk Commodity Strategy Fund |
| | required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made on non-LME futures contracts depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. For LME contracts, subsequent or variation margin payments are not made and the value of the contracts is presented as unrealized appreciation or depreciation on the Consolidated Statement of Assets and Liabilities. When LME or non-LME contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. For settlement of LME commodity futures contracts, cash is not transferred until the settled futures contracts expire. Net realized gains or losses on LME contracts which have been closed out but for which the contract has not yet expired are reflected as a receivable or payable on the Consolidated Statement of Assets and Liabilities. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities. |
| J. | Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
| K. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| L. | Other Risks - The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in commodity futures and swaps, commodity related exchange-traded funds and exchange-traded notes and commodity linked notes, some or all of which will be owned through the Subsidiary. The Subsidiary, unlike the Fund, may invest without limitation in commodity-linked derivatives and other securities, such as exchange-traded and commodity-linked notes, that may provide leveraged and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. |
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
In addition to risks associated with the underlying commodities, investments in commodity-linked notes may be subject to additional risks, such as non-payment of interest and loss of principal, counterparty risk, lack of a secondary market and risk of greater volatility than traditional equity and debt securities. The value of the commodity-linked notes the Fund buys may fluctuate significantly because the values of the underlying investments to which they are linked are themselves volatile. Additionally, certain commodity-linked notes employ “economic” leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease of the underlying commodity, commodity index, or other economic variable. Such economic leverage will increase the volatility of the value of these commodity-linked notes and the Fund to the extent it invests in such notes.
Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
| 14 | Invesco Balanced-Risk Commodity Strategy Fund |
By investing in the Subsidiary, the Fund is indirectly exposed to risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act, and, except as otherwise noted in the Fund’s prospectus, is not subject to the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or the Subsidiary to operate as intended, and could negatively affect the Fund and its shareholders.
Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser less the amount paid by the Subsidiary to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate |
| First $250 million | 1.050% |
| Next $250 million | 1.025% |
| Next $500 million | 1.000% |
| Next $1.5 billion | 0.975% |
| Next $2.5 billion | 0.950% |
| Next $2.5 billion | 0.925% |
| Next $2.5 billion | 0.900% |
| Over $10 billion | 0.875% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 1.03%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least February 28, 2025, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waivers and/or reimbursements (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.40%, 2.15%, 1.65%, 1.15%, 1.15% and 1.15%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of the Fund directly, but are fees and expenses, including management fees, of the investment companies in which the Fund invests. As a result, the total annual fund operating expenses after expense reimbursement may exceed the expense limits above. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $326,061 and reimbursed class level expenses of $168,512, $45,342, $23,260, $813,744, $128,737 and $35,995 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $14,922 in front-end sales commissions from the sale of Class A shares and $1,571 and $929 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
| 15 | Invesco Balanced-Risk Commodity Strategy Fund |
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| U.S. Treasury Securities | $— | $147,068,307 | $— | $147,068,307 |
| Commodity-Linked Securities | — | 110,829,322 | — | 110,829,322 |
| Money Market Funds | 467,013,530 | — | — | 467,013,530 |
| Total Investments in Securities | 467,013,530 | 257,897,629 | — | 724,911,159 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 2,478,112 | — | — | 2,478,112 |
| Swap Agreements | — | 4,375,873 | — | 4,375,873 |
| | 2,478,112 | 4,375,873 | — | 6,853,985 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (3,553,527) | — | — | (3,553,527) |
| Swap Agreements | — | (5,117,521) | — | (5,117,521) |
| | (3,553,527) | (5,117,521) | — | (8,671,048) |
| Total Other Investments | (1,075,415) | (741,648) | — | (1,817,063) |
| Total Investments | $465,938,115 | $257,155,981 | $— | $723,094,096 |
| * | Unrealized appreciation (depreciation). |
NOTE 4—Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| | Value |
| Derivative Assets | Commodity
Risk |
| Unrealized appreciation on futures contracts —Exchange-Traded(a) | $2,478,112 |
| Unrealized appreciation on swap agreements — OTC | 4,375,873 |
| Total Derivative Assets | 6,853,985 |
| Derivatives not subject to master netting agreements | (2,478,112) |
| Total Derivative Assets subject to master netting agreements | $4,375,873 |
| 16 | Invesco Balanced-Risk Commodity Strategy Fund |
| | Value |
| Derivative Liabilities | Commodity
Risk |
| Unrealized depreciation on futures contracts —Exchange-Traded(a) | $(3,553,527) |
| Unrealized depreciation on swap agreements — OTC | (5,117,521) |
| Total Derivative Liabilities | (8,671,048) |
| Derivatives not subject to master netting agreements | 3,553,527 |
| Total Derivative Liabilities subject to master netting agreements | $(5,117,521) |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| | Financial
Derivative
Assets | | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount |
| Barclays Bank PLC | $54,190 | | $(108,449) | $(54,259) | $— | $— | $(54,259) |
| BNP Paribas S.A. | — | | (803,108) | (803,108) | — | 803,108 | — |
| Canadian Imperial Bank of Commerce | 733,400 | | (239,870) | 493,530 | — | — | 493,530 |
| Cargill, Inc. | 294,197 | | (9,621) | 284,576 | — | — | 284,576 |
| Citibank, N.A. | — | | (113,193) | (113,193) | — | — | (113,193) |
| Goldman Sachs International | 23,880 | | (484,576) | (460,696) | — | 340,000 | (120,696) |
| J.P. Morgan Chase Bank, N.A. | 52,568 | | (312,762) | (260,194) | — | 260,194 | — |
| Macquarie Bank Ltd. | 198,490 | | (2,714,074) | (2,515,584) | — | 1,080,000 | (1,435,584) |
| Merrill Lynch International | 796,275 | | (1,949,206) | (1,152,931) | — | 1,050,000 | (102,931) |
| Morgan Stanley and Co. International PLC | 2,745,908 | | (365,931) | 2,379,977 | — | (1,280,000) | 1,099,977 |
| Royal Bank of Canada | 183,768 | | (2,376) | 181,392 | — | — | 181,392 |
| UBS AG | 273,240 | | (4,512) | 268,728 | — | — | 268,728 |
| Total | $5,355,916 | | $(7,107,678) | $(1,751,762) | $— | $2,253,302 | $501,540 |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Consolidated Statement of Operations |
| | Commodity
Risk |
| Realized Gain (Loss): | |
| Futures contracts | $(2,874,834) |
| Swap agreements | (27,556,699) |
| Change in Net Unrealized Appreciation (Depreciation): | |
| Futures contracts | (1,391,292) |
| Swap agreements | 4,257,131 |
| Total | $(27,565,694) |
The table below summarizes the average notional value of derivatives held during the period.
| | Futures
Contracts | Swap
Agreements |
| Average notional value | $89,429,377 | $533,877,803 |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $5,625.
| 17 | Invesco Balanced-Risk Commodity Strategy Fund |
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $24,015,348 | $94,423,618 |
| Long-term capital gain | 3,009,563 | — |
| Total distributions | $27,024,911 | $94,423,618 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $15,809,797 |
| Undistributed long-term capital gain | 15,380,396 |
| Net unrealized appreciation — investments | 26,796,434 |
| Temporary book/tax differences | (88,446) |
| Shares of beneficial interest | 681,478,134 |
| Total net assets | $739,376,315 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to Subsidiary differences.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $84,000,000 and $101,127,812, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $39,821,662 |
| Aggregate unrealized (depreciation) of investments | (13,025,228) |
| Net unrealized appreciation of investments | $26,796,434 |
Cost of investments for tax purposes is $696,297,662.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of income from the Subsidiary, on October 31, 2024, undistributed net investment income was decreased by $11,269,039, undistributed net realized gain was increased by $31,821,631 and shares of beneficial interest was decreased by $20,552,592. This reclassification had no effect on the net assets of the Fund.
| 18 | Invesco Balanced-Risk Commodity Strategy Fund |
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 1,532,238 | $10,067,693 | | 3,405,545 | $23,350,608 |
| Class C | 167,399 | 999,913 | | 670,608 | 4,131,411 |
| Class R | 714,873 | 4,497,723 | | 644,680 | 4,281,478 |
| Class Y | 17,397,207 | 117,917,731 | | 19,299,479 | 135,091,039 |
| Class R5 | 1,428,861 | 9,669,187 | | 1,775,891 | 12,400,018 |
| Class R6 | 5,833,451 | 39,958,107 | | 9,408,293 | 65,271,351 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 354,221 | 2,231,595 | | 1,084,972 | 7,139,114 |
| Class C | 123,719 | 703,959 | | 353,878 | 2,123,267 |
| Class R | 45,903 | 280,924 | | 164,960 | 1,057,391 |
| Class Y | 1,290,972 | 8,417,140 | | 4,355,199 | 29,571,801 |
| Class R5 | 737,991 | 4,841,217 | | 2,053,963 | 14,028,568 |
| Class R6 | 181,678 | 1,193,622 | | 601,123 | 4,111,679 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 102,659 | 678,929 | | 123,811 | 827,744 |
| Class C | (114,051) | (678,929) | | (136,121) | (827,744) |
| Reacquired: | | | | | |
| Class A | (3,632,093) | (23,824,417) | | (5,423,171) | (36,330,800) |
| Class C | (988,762) | (5,828,246) | | (1,305,725) | (7,949,399) |
| Class R | (737,312) | (4,723,316) | | (1,121,026) | (7,327,031) |
| Class Y | (22,911,012) | (154,777,797) | | (41,709,390) | (289,578,217) |
| Class R5 | (1,853,362) | (12,774,608) | | (4,053,405) | (28,272,945) |
| Class R6 | (9,837,475) | (66,887,163) | | (31,153,395) | (230,385,358) |
| Net increase (decrease) in share activity | (10,162,895) | $(68,036,736) | | (40,959,831) | $(297,286,025) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 81% 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. |
| 19 | Invesco Balanced-Risk Commodity Strategy Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Balanced-Risk Commodity Strategy Fund
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of Invesco Balanced-Risk Commodity Strategy Fund and its subsidiary (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related consolidated statement of operations for the year ended October 31, 2024, the consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the consolidated financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 20 | Invesco Balanced-Risk Commodity Strategy Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Balanced-Risk Commodity Strategy Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Bloomberg Commodity Index (Index). The Board noted that performance of Class A shares of the Fund was in the first quintile of its performance universe for the one year period, the fifth quintile for the three year period and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was above the performance of the Index for the one year period, below the performance of the Index for the three year period and reasonably comparable to the performance of the Index for the
| 21 | Invesco Balanced-Risk Commodity Strategy Fund |
five year period. The Board acknowledged limitations regarding the Broadridge data, in particular that differences may exist between the Fund’s investment objective, principal investment strategies and/or investment restrictions and those of the funds in its performance universe, including that certain funds in the peer group may have sleeves that are more passively managed. The Board considered that the Fund’s structural bias to be underweight in energy relative to peers and the Index negatively impacted longer-term performance, particularly during periods of energy market appreciation. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each above the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual and actual management fees and total expense ratio were in the fifth quintile of its expense group and discussed with management reasons for such relative contractual and actual management fees and total expenses. As previously noted, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management, including with respect to differences between the Fund’s investment strategy and that of its peers, including that the Fund pursues a dedicated commodity strategy involving higher levels of active management across commodity sub-sectors, whereas certain peers allocate a significant portion of their assets to less complex commodity sub-sectors. The Board also considered information provided by management regarding how the Fund’s actual and contractual management fees compare to other similar funds not included in the expense group. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer, and subsequently with representatives of management.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary
to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however,
solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent
| 22 | Invesco Balanced-Risk Commodity Strategy Fund |
and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 23 | Invesco Balanced-Risk Commodity Strategy Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Long-Term Capital Gain Distributions | $3,009,563 |
| Qualified Dividend Income* | 0.00% |
| Corporate Dividends Received Deduction* | 0.00% |
| U.S. Treasury Obligations* | 54.21% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 50.78% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 24 | Invesco Balanced-Risk Commodity Strategy Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 25 | Invesco Balanced-Risk Commodity Strategy Fund |
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | BRCS-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Core Bond Fund
Nasdaq:
A: OPIGX ■ C: OPBCX ■ R: OPBNX ■ Y: OPBYX ■ R5:TRTMX ■ R6: OPBIX
Schedule of Investments(a)
October 31, 2024
| | Principal
Amount | Value |
| U.S. Dollar Denominated Bonds & Notes–43.06% |
| Aerospace & Defense–0.83% |
| BAE Systems PLC (United Kingdom), | | |
| 5.00%, 03/26/2027(b) | | $2,844,000 | $2,863,115 |
| 5.13%, 03/26/2029(b) | | 1,603,000 | 1,618,750 |
| 5.50%, 03/26/2054(b) | | 1,082,000 | 1,092,416 |
| Boeing Co. (The), | | |
| 6.26%, 05/01/2027(b) | | 1,080,000 | 1,105,175 |
| 6.30%, 05/01/2029(b) | | 767,000 | 794,755 |
| 6.39%, 05/01/2031(b) | | 172,000 | 180,061 |
| 6.53%, 05/01/2034(b) | | 2,907,000 | 3,066,256 |
| Howmet Aerospace, Inc., 4.85%, 10/15/2031 | | 522,000 | 518,519 |
| L3Harris Technologies, Inc., | | |
| 5.05%, 06/01/2029 | | 2,713,000 | 2,735,911 |
| 5.25%, 06/01/2031 | | 1,084,000 | 1,099,734 |
| 5.40%, 07/31/2033 | | 179,000 | 181,696 |
| 5.35%, 06/01/2034 | | 2,713,000 | 2,746,104 |
| Lockheed Martin Corp., | | |
| 5.10%, 11/15/2027 | | 170,000 | 173,069 |
| 4.50%, 02/15/2029 | | 1,040,000 | 1,036,290 |
| 4.75%, 02/15/2034 | | 306,000 | 302,446 |
| 4.80%, 08/15/2034 | | 1,488,000 | 1,471,754 |
| 5.90%, 11/15/2063 | | 88,000 | 95,563 |
| Northrop Grumman Corp., 4.95%, 03/15/2053 | | 110,000 | 102,955 |
| RTX Corp., | | |
| 5.75%, 01/15/2029 | | 587,000 | 609,995 |
| 6.00%, 03/15/2031 | | 319,000 | 338,027 |
| 5.15%, 02/27/2033 | | 442,000 | 445,808 |
| 6.10%, 03/15/2034 | | 775,000 | 830,576 |
| 6.40%, 03/15/2054 | | 341,000 | 384,111 |
| | | | 23,793,086 |
| Agricultural & Farm Machinery–0.16% |
| AGCO Corp., | | |
| 5.45%, 03/21/2027 | | 834,000 | 843,390 |
| 5.80%, 03/21/2034 | | 915,000 | 931,042 |
| CNH Industrial Capital LLC, 5.45%, 10/14/2025 | | 255,000 | 256,741 |
| John Deere Capital Corp., | | |
| 4.70%, 06/10/2030 | | 666,000 | 667,367 |
| 5.10%, 04/11/2034 | | 1,746,000 | 1,771,380 |
| | | | 4,469,920 |
| Agricultural Products & Services–0.01% |
| Cargill, Inc., | | |
| 4.88%, 10/10/2025(b) | | 219,000 | 219,710 |
| 4.75%, 04/24/2033(b) | | 195,000 | 192,745 |
| | | | 412,455 |
| Air Freight & Logistics–0.29% |
| GXO Logistics, Inc., | | |
| 6.25%, 05/06/2029 | | 1,970,000 | 2,035,584 |
| 6.50%, 05/06/2034 | | 1,349,000 | 1,401,393 |
| | Principal
Amount | Value |
| Air Freight & Logistics–(continued) |
| United Parcel Service, Inc., | | |
| 5.15%, 05/22/2034 | | $1,339,000 | $1,361,207 |
| 5.50%, 05/22/2054 | | 2,362,000 | 2,411,962 |
| 5.60%, 05/22/2064 | | 1,088,000 | 1,107,980 |
| | | | 8,318,126 |
| Apparel, Accessories & Luxury Goods–0.03% |
| Tapestry, Inc., | | |
| 7.05%, 11/27/2025 | | 557,000 | 565,621 |
| 7.00%, 11/27/2026 | | 391,000 | 399,505 |
| | | | 965,126 |
| Application Software–0.19% |
| Cadence Design Systems, Inc., 4.70%, 09/10/2034 | | 983,000 | 959,642 |
| Intuit, Inc., 5.20%, 09/15/2033 | | 658,000 | 670,986 |
| Roper Technologies, Inc., | | |
| 4.50%, 10/15/2029 | | 1,060,000 | 1,044,061 |
| 4.75%, 02/15/2032 | | 669,000 | 659,009 |
| 4.90%, 10/15/2034 | | 2,211,000 | 2,160,956 |
| | | | 5,494,654 |
| Asset Management & Custody Banks–0.97% |
| Affiliated Managers Group, Inc., 5.50%, 08/20/2034 | | 5,832,000 | 5,757,263 |
| Ameriprise Financial, Inc., | | |
| 5.70%, 12/15/2028 | | 958,000 | 999,206 |
| 5.15%, 05/15/2033 | | 491,000 | 496,766 |
| Ares Capital Corp., | | |
| 5.88%, 03/01/2029 | | 640,000 | 644,977 |
| 5.95%, 07/15/2029 | | 1,202,000 | 1,213,701 |
| Bank of New York Mellon Corp. (The), | | |
| 4.89%, 07/21/2028(c) | | 3,124,000 | 3,144,660 |
| 4.98%, 03/14/2030(c) | | 410,000 | 413,133 |
| 5.06%, 07/22/2032(c) | | 1,851,000 | 1,859,426 |
| 5.19%, 03/14/2035(c) | | 316,000 | 317,114 |
| 5.61%, 07/21/2039(c) | | 1,537,000 | 1,560,280 |
| Blackrock, Inc., 4.75%, 05/25/2033 | | 558,000 | 555,860 |
| Blackstone Secured Lending Fund, | | |
| 2.13%, 02/15/2027 | | 2,121,000 | 1,963,776 |
| 5.88%, 11/15/2027 | | 1,437,000 | 1,455,151 |
| Northern Trust Corp., 6.13%, 11/02/2032 | | 124,000 | 133,409 |
| State Street Corp., | | |
| 4.99%, 03/18/2027 | | 1,595,000 | 1,610,596 |
| 4.53%, 02/20/2029(c) | | 3,550,000 | 3,526,852 |
| 5.68%, 11/21/2029(c) | | 1,303,000 | 1,346,284 |
| 6.12%, 11/21/2034(c) | | 828,000 | 873,874 |
| | | | 27,872,328 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Automobile Manufacturers–1.91% |
| American Honda Finance Corp., | | |
| 4.95%, 01/09/2026 | | $3,393,000 | $3,407,534 |
| 4.90%, 03/12/2027 | | 5,415,000 | 5,458,343 |
| 4.70%, 01/12/2028 | | 371,000 | 372,448 |
| 4.90%, 03/13/2029 | | 4,370,000 | 4,394,696 |
| 4.60%, 04/17/2030 | | 184,000 | 182,272 |
| 4.90%, 01/10/2034 | | 821,000 | 809,872 |
| Daimler Truck Finance North America LLC (Germany), | | |
| 5.60%, 08/08/2025(b) | | 957,000 | 963,428 |
| 5.15%, 01/16/2026(b) | | 884,000 | 887,643 |
| 5.00%, 01/15/2027(b) | | 917,000 | 922,093 |
| 5.38%, 01/18/2034(b) | | 825,000 | 832,871 |
| Ford Motor Credit Co. LLC, 6.80%, 11/07/2028 | | 1,136,000 | 1,180,894 |
| Hyundai Capital America, | | |
| 5.50%, 03/30/2026(b) | | 318,000 | 320,497 |
| 5.65%, 06/26/2026(b) | | 684,000 | 691,819 |
| 5.25%, 01/08/2027(b) | | 1,958,000 | 1,973,005 |
| 5.30%, 03/19/2027(b) | | 1,690,000 | 1,708,809 |
| 5.60%, 03/30/2028(b) | | 424,000 | 431,286 |
| 5.35%, 03/19/2029(b) | | 350,000 | 353,577 |
| 5.80%, 04/01/2030(b) | | 97,000 | 99,733 |
| Mercedes-Benz Finance North America LLC (Germany), | | |
| 4.90%, 01/09/2026(b) | | 3,597,000 | 3,606,250 |
| 4.80%, 01/11/2027(b) | | 3,375,000 | 3,381,195 |
| 5.10%, 08/03/2028(b) | | 920,000 | 929,488 |
| 4.85%, 01/11/2029(b) | | 992,000 | 990,643 |
| 5.00%, 01/11/2034(b) | | 560,000 | 552,097 |
| 5.13%, 08/01/2034(b) | | 3,564,000 | 3,527,170 |
| PACCAR Financial Corp., | | |
| 4.95%, 10/03/2025 | | 259,000 | 260,384 |
| 4.60%, 01/10/2028 | | 166,000 | 166,733 |
| 4.00%, 09/26/2029 | | 3,412,000 | 3,330,029 |
| Toyota Motor Credit Corp., | | |
| 4.63%, 01/12/2028 | | 203,000 | 203,711 |
| 4.55%, 08/09/2029 | | 1,382,000 | 1,372,961 |
| Volkswagen Group of America Finance LLC (Germany), | | |
| 5.40%, 03/20/2026(b) | | 3,555,000 | 3,569,210 |
| 4.90%, 08/14/2026(b) | | 1,458,000 | 1,453,979 |
| 5.30%, 03/22/2027(b) | | 2,388,000 | 2,401,362 |
| 5.25%, 03/22/2029(b) | | 1,511,000 | 1,503,691 |
| 4.95%, 08/15/2029(b) | | 1,536,000 | 1,509,333 |
| 5.60%, 03/22/2034(b) | | 1,130,000 | 1,123,026 |
| | | | 54,872,082 |
| Automotive Parts & Equipment–0.10% |
| ERAC USA Finance LLC, | | |
| 4.60%, 05/01/2028(b) | | 420,000 | 419,321 |
| 5.00%, 02/15/2029(b) | | 807,000 | 815,174 |
| 4.90%, 05/01/2033(b) | | 483,000 | 478,806 |
| 5.20%, 10/30/2034(b) | | 1,147,000 | 1,157,234 |
| | | | 2,870,535 |
| Automotive Retail–0.13% |
| AutoZone, Inc., | | |
| 5.05%, 07/15/2026 | | 353,000 | 355,886 |
| 5.20%, 08/01/2033 | | 384,000 | 383,499 |
| | Principal
Amount | Value |
| Automotive Retail–(continued) |
| O’Reilly Automotive, Inc., 5.00%, 08/19/2034 | | $3,148,000 | $3,086,803 |
| | | | 3,826,188 |
| Biotechnology–0.49% |
| AbbVie, Inc., | | |
| 4.80%, 03/15/2027 | | 4,681,000 | 4,713,671 |
| 4.80%, 03/15/2029 | | 2,402,000 | 2,421,829 |
| 5.05%, 03/15/2034 | | 1,641,000 | 1,653,793 |
| 5.35%, 03/15/2044 | | 998,000 | 1,001,759 |
| 5.40%, 03/15/2054 | | 1,194,000 | 1,203,911 |
| 5.50%, 03/15/2064 | | 1,363,000 | 1,375,363 |
| Amgen, Inc., | | |
| 5.25%, 03/02/2025 | | 566,000 | 566,665 |
| 5.15%, 03/02/2028 | | 374,000 | 379,199 |
| 5.25%, 03/02/2030 | | 172,000 | 175,490 |
| Gilead Sciences, Inc., | | |
| 5.25%, 10/15/2033 | | 336,000 | 343,113 |
| 5.55%, 10/15/2053 | | 292,000 | 299,376 |
| | | | 14,134,169 |
| Building Products–0.01% |
| Carrier Global Corp., 5.90%, 03/15/2034 | | 231,000 | 242,817 |
| Cable & Satellite–0.13% |
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp., | | |
| 4.91%, 07/23/2025 | | 72,000 | 71,938 |
| 6.15%, 11/10/2026 | | 1,598,000 | 1,632,661 |
| 6.65%, 02/01/2034 | | 835,000 | 856,930 |
| Comcast Corp., 5.50%, 11/15/2032 | | 186,000 | 193,312 |
| Cox Communications, Inc., | | |
| 5.70%, 06/15/2033(b) | | 170,000 | 170,411 |
| 5.80%, 12/15/2053(b) | | 1,015,000 | 952,255 |
| | | | 3,877,507 |
| Cargo Ground Transportation–0.16% |
| Penske Truck Leasing Co. L.P./PTL Finance Corp., | | |
| 5.75%, 05/24/2026(b) | | 140,000 | 141,641 |
| 5.35%, 01/12/2027(b) | | 177,000 | 178,622 |
| 5.70%, 02/01/2028(b) | | 195,000 | 199,375 |
| 5.55%, 05/01/2028(b) | | 374,000 | 381,341 |
| 6.05%, 08/01/2028(b) | | 393,000 | 407,046 |
| Ryder System, Inc., | | |
| 4.90%, 12/01/2029 | | 2,562,000 | 2,557,311 |
| 6.60%, 12/01/2033 | | 574,000 | 623,922 |
| | | | 4,489,258 |
| Commercial & Residential Mortgage Finance–0.11% |
| Aviation Capital Group LLC, 6.75%, 10/25/2028(b) | | 875,000 | 920,931 |
| Nationwide Building Society (United Kingdom), 6.56%, 10/18/2027(b)(c) | | 1,031,000 | 1,062,806 |
| Radian Group, Inc., 6.20%, 05/15/2029 | | 1,153,000 | 1,182,516 |
| | | | 3,166,253 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Communications Equipment–0.01% |
| Cisco Systems, Inc., 5.30%, 02/26/2054 | | $375,000 | $377,535 |
Construction Machinery & Heavy Transportation Equipment–
0.34% |
| Caterpillar Financial Services Corp., 5.15%, 08/11/2025 | | 1,417,000 | 1,423,135 |
| Cummins, Inc., | | |
| 4.90%, 02/20/2029 | | 455,000 | 460,584 |
| 5.45%, 02/20/2054 | | 922,000 | 932,875 |
| Daimler Trucks Finance North America LLC (Germany), 5.13%, 01/19/2028(b) | | 788,000 | 793,832 |
| Komatsu Finance America, Inc., 5.50%, 10/06/2027(b) | | 1,038,000 | 1,057,691 |
| SMBC Aviation Capital Finance DAC (Ireland), | | |
| 5.30%, 04/03/2029(b) | | 1,803,000 | 1,822,893 |
| 5.55%, 04/03/2034(b) | | 3,223,000 | 3,240,960 |
| | | | 9,731,970 |
| Consumer Finance–0.22% |
| American Express Co., | | |
| 5.65%, 04/23/2027(c) | | 2,790,000 | 2,825,595 |
| 5.53%, 04/25/2030(c) | | 2,512,000 | 2,576,673 |
| Capital One Financial Corp., 7.15%, 10/29/2027(c) | | 539,000 | 562,716 |
| General Motors Financial Co., Inc., | | |
| 6.05%, 10/10/2025 | | 397,000 | 401,118 |
| 5.40%, 04/06/2026 | | 103,000 | 103,830 |
| | | | 6,469,932 |
| Consumer Staples Merchandise Retail–0.04% |
| Dollar General Corp., 5.50%, 11/01/2052 | | 132,000 | 122,557 |
| Target Corp., | | |
| 4.50%, 09/15/2032 | | 179,000 | 175,888 |
| 4.80%, 01/15/2053 | | 224,000 | 209,203 |
| Walmart, Inc., | | |
| 4.50%, 09/09/2052 | | 73,000 | 66,654 |
| 4.50%, 04/15/2053 | | 597,000 | 543,977 |
| | | | 1,118,279 |
| Distillers & Vintners–0.01% |
| Brown-Forman Corp., 4.75%, 04/15/2033 | | 115,000 | 114,126 |
| Constellation Brands, Inc., 4.90%, 05/01/2033 | | 106,000 | 104,120 |
| | | | 218,246 |
| Distributors–0.21% |
| Genuine Parts Co., | | |
| 6.50%, 11/01/2028 | | 404,000 | 426,196 |
| 4.95%, 08/15/2029 | | 4,769,000 | 4,735,409 |
| 6.88%, 11/01/2033 | | 824,000 | 912,532 |
| | | | 6,074,137 |
| Diversified Banks–9.18% |
| Australia and New Zealand Banking Group Ltd. (Australia), | | |
| 5.09%, 12/08/2025 | | 940,000 | 945,757 |
| 5.00%, 03/18/2026 | | 4,100,000 | 4,131,146 |
| 5.20%, 09/30/2035(b)(c) | | 12,737,000 | 12,414,749 |
| | Principal
Amount | Value |
| Diversified Banks–(continued) |
| Banco Santander S.A. (Spain), 5.55%, 03/14/2028(c) | | $1,200,000 | $1,213,153 |
| Bank of America Corp., | | |
| 5.93%, 09/15/2027(c) | | 2,529,000 | 2,583,388 |
| 4.95%, 07/22/2028(c) | | 110,000 | 110,455 |
| 5.20%, 04/25/2029(c) | | 628,000 | 634,316 |
| 5.82%, 09/15/2029(c) | | 935,000 | 965,297 |
| 5.43%, 08/15/2035(c) | | 3,760,000 | 3,705,348 |
| 5.52%, 10/25/2035(c) | | 5,155,000 | 5,118,398 |
| Bank of America N.A., 5.53%, 08/18/2026 | | 1,696,000 | 1,726,463 |
| Bank of Montreal (Canada), | | |
| 5.30%, 06/05/2026 | | 253,000 | 255,863 |
| 7.70%, 05/26/2084(c) | | 2,327,000 | 2,439,492 |
| 7.30%, 11/26/2084(c) | | 2,212,000 | 2,306,983 |
| Bank of Nova Scotia (The) (Canada), | | |
| 8.63%, 10/27/2082(c) | | 1,108,000 | 1,189,687 |
| 8.00%, 01/27/2084(c) | | 1,256,000 | 1,330,112 |
| Banque Federative du Credit Mutuel S.A. (France), 5.19%, 02/16/2028(b) | | 3,324,000 | 3,356,395 |
| BBVA Bancomer S.A. (Mexico), 8.13%, 01/08/2039(b)(c) | | 846,000 | 871,148 |
| BPCE S.A. (France), | | |
| 5.42% (SOFR + 0.57%), 01/14/2025(b)(d) | | 1,284,000 | 1,285,067 |
| 5.20%, 01/18/2027(b) | | 1,435,000 | 1,447,852 |
| 5.28%, 05/30/2029(b) | | 1,453,000 | 1,468,257 |
| 5.72%, 01/18/2030(b)(c) | | 291,000 | 295,413 |
| Canadian Imperial Bank of Commerce (Canada), 6.95%, 01/28/2085(c) | | 7,195,000 | 7,199,613 |
| Citibank N.A., | | |
| 5.44%, 04/30/2026 | | 4,099,000 | 4,149,383 |
| 4.93%, 08/06/2026 | | 3,010,000 | 3,030,638 |
| Citigroup, Inc., | | |
| 5.61%, 09/29/2026(c) | | 331,000 | 332,888 |
| 5.17%, 02/13/2030(c) | | 792,000 | 797,502 |
| 4.54%, 09/19/2030(c) | | 5,310,000 | 5,201,913 |
| 6.17%, 05/25/2034(c) | | 678,000 | 702,866 |
| 5.83%, 02/13/2035(c) | | 2,165,000 | 2,184,673 |
| 5.41%, 09/19/2039(c) | | 6,669,000 | 6,456,868 |
| Series AA, 7.63%(c)(e) | | 4,890,000 | 5,215,266 |
| Series Z, 7.38%(c)(e) | | 4,765,000 | 4,994,373 |
| Comerica, Inc., 5.98%, 01/30/2030(c) | | 336,000 | 340,538 |
| Cooperatieve Rabobank U.A. (Netherlands), 4.33%, 08/28/2026 | | 8,895,000 | 8,892,886 |
| Credit Agricole S.A. (France), | | |
| 4.63%, 09/11/2028(b)(c) | | 3,624,000 | 3,596,162 |
| 5.34%, 01/10/2030(b)(c) | | 1,423,000 | 1,437,681 |
| 6.25%, 01/10/2035(b)(c) | | 648,000 | 671,203 |
| 6.70%(b)(c)(e) | | 8,878,000 | 8,651,447 |
| Federation des caisses Desjardins du Quebec (Canada), 5.28%, 01/23/2026(b)(c) | | 1,621,000 | 1,621,203 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Diversified Banks–(continued) |
| Fifth Third Bancorp, | | |
| 2.38%, 01/28/2025 | | $149,000 | $148,039 |
| 1.71%, 11/01/2027(c) | | 181,000 | 170,401 |
| 6.34%, 07/27/2029(c) | | 94,000 | 98,123 |
| 4.77%, 07/28/2030(c) | | 307,000 | 302,380 |
| 5.63%, 01/29/2032(c) | | 277,000 | 281,634 |
| Goldman Sachs Bank USA, 5.28%, 03/18/2027(c) | | 7,904,000 | 7,956,620 |
| HSBC Holdings PLC (United Kingdom), | | |
| 5.89%, 08/14/2027(c) | | 1,173,000 | 1,194,317 |
| 5.60%, 05/17/2028(c) | | 1,975,000 | 2,004,498 |
| 5.21%, 08/11/2028(c) | | 830,000 | 836,341 |
| 7.40%, 11/13/2034(c) | | 1,025,000 | 1,144,209 |
| 6.33%, 03/09/2044(c) | | 941,000 | 1,018,550 |
| 6.88%(c)(e) | | 1,944,000 | 1,957,099 |
| 6.95%(c)(e) | | 1,821,000 | 1,817,930 |
| Huntington National Bank (The), 5.70%, 11/18/2025(c) | | 1,596,000 | 1,595,983 |
| ING Groep N.V. (Netherlands), 5.34%, 03/19/2030(c) | | 1,394,000 | 1,412,254 |
| JPMorgan Chase & Co., | | |
| 5.04%, 01/23/2028(c) | | 1,420,000 | 1,427,802 |
| 5.57%, 04/22/2028(c) | | 1,995,000 | 2,030,987 |
| 4.85%, 07/25/2028(c) | | 124,000 | 124,196 |
| 5.30%, 07/24/2029(c) | | 525,000 | 532,914 |
| 6.09%, 10/23/2029(c) | | 716,000 | 747,052 |
| 5.01%, 01/23/2030(c) | | 521,000 | 523,172 |
| 5.58%, 04/22/2030(c) | | 1,589,000 | 1,630,398 |
| 5.00%, 07/22/2030(c) | | 3,124,000 | 3,134,945 |
| 4.60%, 10/22/2030(c) | | 5,271,000 | 5,199,812 |
| 4.59%, 04/26/2033(c) | | 93,000 | 90,345 |
| 5.72%, 09/14/2033(c) | | 270,000 | 278,103 |
| 5.34%, 01/23/2035(c) | | 439,000 | 442,944 |
| 4.95%, 10/22/2035(c) | | 3,974,000 | 3,896,711 |
| Series NN, 6.88%(c)(e) | | 1,337,000 | 1,416,125 |
| JPMorgan Chase Bank N.A., 5.11%, 12/08/2026 | | 2,119,000 | 2,144,171 |
| KeyBank N.A., | | |
| 3.30%, 06/01/2025 | | 939,000 | 928,951 |
| 4.15%, 08/08/2025 | | 629,000 | 624,617 |
| 5.85%, 11/15/2027 | | 1,186,000 | 1,215,257 |
| KeyCorp, 6.28% (SOFR + 1.25%), 05/23/2025(d) | | 298,000 | 298,906 |
| Manufacturers & Traders Trust Co., | | |
| 5.40%, 11/21/2025 | | 978,000 | 983,790 |
| 4.70%, 01/27/2028 | | 939,000 | 930,612 |
| Mitsubishi UFJ Financial Group, Inc. (Japan), | | |
| 5.02%, 07/20/2028(c) | | 899,000 | 905,761 |
| 5.26%, 04/17/2030(c) | | 2,067,000 | 2,098,444 |
| 5.41%, 04/19/2034(c) | | 916,000 | 942,632 |
| 5.43%, 04/17/2035(c) | | 2,252,000 | 2,291,142 |
| 8.20%(c)(e) | | 4,628,000 | 5,095,447 |
| Mizuho Financial Group, Inc. (Japan), | | |
| 5.78%, 07/06/2029(c) | | 781,000 | 803,297 |
| 5.38%, 07/10/2030(c) | | 2,234,000 | 2,273,046 |
| 5.59%, 07/10/2035(c) | | 3,196,000 | 3,274,241 |
| | Principal
Amount | Value |
| Diversified Banks–(continued) |
| Morgan Stanley Bank N.A., | | |
| 5.48%, 07/16/2025 | | $1,230,000 | $1,237,776 |
| 4.75%, 04/21/2026 | | 1,090,000 | 1,094,504 |
| 5.88%, 10/30/2026 | | 1,649,000 | 1,691,378 |
| 4.45%, 10/15/2027(c) | | 8,782,000 | 8,737,918 |
| 4.95%, 01/14/2028(c) | | 1,609,000 | 1,615,889 |
| 5.50%, 05/26/2028(c) | | 5,369,000 | 5,463,153 |
| National Securities Clearing Corp., | | |
| 5.10%, 11/21/2027(b) | | 1,596,000 | 1,617,061 |
| 5.00%, 05/30/2028(b) | | 1,178,000 | 1,192,696 |
| Nordea Bank Abp (Finland), 6.30%(b)(c)(e) | | 2,258,000 | 2,164,534 |
| Norinchukin Bank (The) (Japan), 5.09%, 10/16/2029(b) | | 1,366,000 | 1,367,556 |
| PNC Financial Services Group, Inc. (The), | | |
| 6.62%, 10/20/2027(c) | | 966,000 | 1,000,583 |
| 5.58%, 06/12/2029(c) | | 586,000 | 599,053 |
| 6.04%, 10/28/2033(c) | | 138,000 | 145,008 |
| 5.07%, 01/24/2034(c) | | 209,000 | 206,199 |
| 6.88%, 10/20/2034(c) | | 621,000 | 690,376 |
| Royal Bank of Canada (Canada), | | |
| 4.88%, 01/19/2027 | | 992,000 | 999,731 |
| 4.95%, 02/01/2029 | | 364,000 | 367,828 |
| 5.00%, 02/01/2033 | | 254,000 | 254,615 |
| 7.50%, 05/02/2084(c) | | 2,864,000 | 3,018,607 |
| Santander UK Group Holdings PLC (United Kingdom), 6.83%, 11/21/2026(c) | | 987,000 | 1,003,048 |
| Standard Chartered PLC (United Kingdom), | | |
| 6.19%, 07/06/2027(b)(c) | | 988,000 | 1,006,294 |
| 6.75%, 02/08/2028(b)(c) | | 983,000 | 1,018,875 |
| 7.02%, 02/08/2030(b)(c) | | 985,000 | 1,053,549 |
| 5.01%, 10/15/2030(b)(c) | | 3,273,000 | 3,235,405 |
| 2.68%, 06/29/2032(b)(c) | | 1,468,000 | 1,252,118 |
| Sumitomo Mitsui Financial Group, Inc. (Japan), 6.60%(c)(e) | | 3,677,000 | 3,811,950 |
| Sumitomo Mitsui Trust Bank Ltd. (Japan), | | |
| 5.65%, 03/09/2026(b) | | 957,000 | 969,120 |
| 5.65%, 09/14/2026(b) | | 1,050,000 | 1,067,178 |
| 5.20%, 03/07/2027(b) | | 1,749,000 | 1,769,896 |
| 5.55%, 09/14/2028(b) | | 1,038,000 | 1,065,800 |
| 5.20%, 03/07/2029(b) | | 1,498,000 | 1,520,025 |
| 5.35%, 03/07/2034(b) | | 1,223,000 | 1,248,103 |
| Synovus Bank, 5.63%, 02/15/2028 | | 1,338,000 | 1,331,121 |
| Toronto-Dominion Bank (The) (Canada), | | |
| 5.15%, 09/10/2034(c) | | 4,481,000 | 4,401,149 |
| 8.13%, 10/31/2082(c) | | 1,101,000 | 1,162,827 |
| 7.25%, 07/31/2084(c) | | 2,873,000 | 2,947,586 |
| U.S. Bancorp, | | |
| 4.55%, 07/22/2028(c) | | 124,000 | 123,282 |
| 5.78%, 06/12/2029(c) | | 449,000 | 462,096 |
| 5.38%, 01/23/2030(c) | | 995,000 | 1,011,180 |
| 4.97%, 07/22/2033(c) | | 97,000 | 93,935 |
| UBS AG (Switzerland), 5.65%, 09/11/2028 | | 951,000 | 980,719 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Diversified Banks–(continued) |
| Wells Fargo & Co., | | |
| 5.71%, 04/22/2028(c) | | $1,232,000 | $1,256,116 |
| 5.57%, 07/25/2029(c) | | 360,000 | 367,722 |
| 6.30%, 10/23/2029(c) | | 490,000 | 513,610 |
| 5.20%, 01/23/2030(c) | | 582,000 | 587,908 |
| 5.39%, 04/24/2034(c) | | 208,000 | 209,485 |
| 5.56%, 07/25/2034(c) | | 952,000 | 968,437 |
| 5.50%, 01/23/2035(c) | | 843,000 | 855,304 |
| 4.61%, 04/25/2053(c) | | 111,000 | 97,800 |
| 6.85%(c)(e) | | 2,151,000 | 2,223,086 |
| 7.63%(c)(e) | | 425,000 | 457,850 |
| Wells Fargo Bank N.A., | | |
| 5.55%, 08/01/2025 | | 2,262,000 | 2,275,879 |
| 4.81%, 01/15/2026 | | 1,514,000 | 1,518,262 |
| 5.45%, 08/07/2026 | | 1,379,000 | 1,400,156 |
| Westpac Banking Corp. (Australia), 6.82%, 11/17/2033 | | 1,576,000 | 1,743,111 |
| | | | 263,970,487 |
| Diversified Capital Markets–0.36% |
| UBS Group AG (Switzerland), | | |
| 4.55%, 04/17/2026 | | 958,000 | 954,299 |
| 5.71%, 01/12/2027(b)(c) | | 826,000 | 832,399 |
| 4.75%, 05/12/2028(b)(c) | | 956,000 | 951,292 |
| 5.43%, 02/08/2030(b)(c) | | 949,000 | 962,866 |
| 6.30%, 09/22/2034(b)(c) | | 1,182,000 | 1,262,698 |
| 5.70%, 02/08/2035(b)(c) | | 761,000 | 779,671 |
| Series 28, 9.25%(b)(c)(e) | | 1,198,000 | 1,308,442 |
| Series 31, 7.75%(b)(c)(e) | | 1,876,000 | 1,971,449 |
| Series 33, 9.25%(b)(c)(e) | | 1,192,000 | 1,383,069 |
| | | | 10,406,185 |
| Diversified Financial Services–1.67% |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), 5.10%, 01/19/2029 | | 697,000 | 699,143 |
| Aircastle Ltd./Aircastle Ireland DAC, 5.75%, 10/01/2031(b) | | 989,000 | 1,004,629 |
| Apollo Debt Solutions BDC, 6.90%, 04/13/2029(b) | | 309,000 | 315,681 |
| Apollo Global Management, Inc., | | |
| 6.38%, 11/15/2033 | | 812,000 | 885,798 |
| 5.80%, 05/21/2054 | | 1,439,000 | 1,476,864 |
| Avolon Holdings Funding Ltd. (Ireland), | | |
| 6.38%, 05/04/2028(b) | | 417,000 | 431,056 |
| 5.75%, 03/01/2029(b) | | 1,762,000 | 1,788,475 |
| 5.75%, 11/15/2029(b) | | 1,871,000 | 1,901,216 |
| BlackRock Funding, Inc., | | |
| 4.90%, 01/08/2035 | | 1,040,000 | 1,038,653 |
| 5.35%, 01/08/2055 | | 1,021,000 | 1,022,959 |
| Blue Owl Technology Finance Corp. II, 6.75%, 04/04/2029(b) | | 2,576,000 | 2,564,665 |
| Corebridge Financial, Inc., | | |
| 6.05%, 09/15/2033 | | 673,000 | 698,855 |
| 5.75%, 01/15/2034 | | 1,063,000 | 1,088,668 |
| Horizon Mutual Holdings, Inc., 6.20%, 11/15/2034(b) | | 23,913,000 | 23,841,739 |
| LPL Holdings, Inc., 5.70%, 05/20/2027 | | 1,898,000 | 1,927,433 |
| | Principal
Amount | Value |
| Diversified Financial Services–(continued) |
| Macquarie Airfinance Holdings Ltd. (United Kingdom), | | |
| 6.40%, 03/26/2029(b) | | $976,000 | $1,006,612 |
| 5.15%, 03/17/2030(b) | | 3,031,000 | 2,969,344 |
| 6.50%, 03/26/2031(b) | | 1,150,000 | 1,195,730 |
| Nuveen LLC, | | |
| 5.55%, 01/15/2030(b) | | 854,000 | 875,152 |
| 5.85%, 04/15/2034(b) | | 1,337,000 | 1,372,850 |
| | | | 48,105,522 |
| Diversified Metals & Mining–0.18% |
| BHP Billiton Finance (USA) Ltd. (Australia), | | |
| 5.10%, 09/08/2028 | | 868,000 | 881,780 |
| 5.25%, 09/08/2030 | | 582,000 | 597,104 |
| 5.25%, 09/08/2033 | | 1,039,000 | 1,056,887 |
| Glencore Funding LLC (Australia), | | |
| 5.37%, 04/04/2029(b) | | 969,000 | 983,498 |
| 5.63%, 04/04/2034(b) | | 945,000 | 960,373 |
| 5.89%, 04/04/2054(b) | | 725,000 | 733,642 |
| | | | 5,213,284 |
| Diversified REITs–0.03% |
| VICI Properties L.P., | | |
| 5.75%, 04/01/2034 | | 383,000 | 389,358 |
| 6.13%, 04/01/2054 | | 414,000 | 416,952 |
| | | | 806,310 |
| Diversified Support Services–0.02% |
| Element Fleet Management Corp. (Canada), 6.32%, 12/04/2028(b) | | 540,000 | 564,923 |
| Electric Utilities–2.72% |
| Alabama Power Co., 5.85%, 11/15/2033 | | 256,000 | 270,948 |
| American Electric Power Co., Inc., | | |
| 5.75%, 11/01/2027 | | 162,000 | 166,869 |
| 5.20%, 01/15/2029 | | 714,000 | 723,298 |
| CenterPoint Energy Houston Electric LLC, 5.05%, 03/01/2035 | | 1,728,000 | 1,724,988 |
| Connecticut Light and Power Co. (The), | | |
| 4.95%, 08/15/2034 | | 578,000 | 573,415 |
| 5.25%, 01/15/2053 | | 162,000 | 160,008 |
| Consolidated Edison Co. of New York, Inc., | | |
| 5.50%, 03/15/2034 | | 426,000 | 441,983 |
| 5.90%, 11/15/2053 | | 557,000 | 588,572 |
| Constellation Energy Generation LLC, | | |
| 6.13%, 01/15/2034 | | 270,000 | 288,288 |
| 6.50%, 10/01/2053 | | 220,000 | 242,302 |
| 5.75%, 03/15/2054 | | 1,111,000 | 1,120,537 |
| Dominion Energy South Carolina, Inc., 6.25%, 10/15/2053 | | 280,000 | 314,230 |
| Duke Energy Carolinas LLC, 5.35%, 01/15/2053 | | 256,000 | 251,960 |
| Duke Energy Corp., | | |
| 5.00%, 12/08/2025 | | 336,000 | 336,902 |
| 4.85%, 01/05/2029 | | 733,000 | 734,006 |
| 5.00%, 08/15/2052 | | 163,000 | 147,277 |
| 6.45%, 09/01/2054(c) | | 1,444,000 | 1,471,251 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Electric Utilities–(continued) |
| Duke Energy Indiana LLC, 5.40%, 04/01/2053 | | $280,000 | $276,026 |
| Duke Energy Ohio, Inc., 5.55%, 03/15/2054 | | 1,604,000 | 1,612,647 |
| Electricite de France S.A. (France), 5.70%, 05/23/2028(b) | | 627,000 | 643,183 |
| Enel Finance America LLC (Italy), 7.10%, 10/14/2027(b) | | 831,000 | 881,077 |
| Enel Finance International N.V. (Italy), 7.05%, 10/14/2025(b) | | 933,000 | 951,507 |
| Entergy Corp., 7.13%, 12/01/2054(c) | | 1,206,000 | 1,236,004 |
| Entergy Louisiana LLC, 5.15%, 09/15/2034 | | 1,414,000 | 1,408,968 |
| Entergy Texas, Inc., 5.55%, 09/15/2054 | | 1,145,000 | 1,140,107 |
| Evergy Metro, Inc., 4.95%, 04/15/2033 | | 196,000 | 194,151 |
| Eversource Energy, | | |
| 5.00%, 01/01/2027 | | 1,256,000 | 1,263,832 |
| 5.50%, 01/01/2034 | | 634,000 | 638,784 |
| Exelon Corp., | | |
| 5.15%, 03/15/2029 | | 699,000 | 708,884 |
| 5.45%, 03/15/2034 | | 670,000 | 682,068 |
| 5.60%, 03/15/2053 | | 835,000 | 829,736 |
| FirstEnergy Pennsylvania Electric Co., 5.20%, 04/01/2028(b) | | 102,000 | 102,896 |
| FirstEnergy Transmission LLC, | | |
| 4.55%, 01/15/2030(b) | | 2,052,000 | 2,015,496 |
| 5.00%, 01/15/2035(b) | | 1,408,000 | 1,381,131 |
| Florida Power & Light Co., 4.80%, 05/15/2033 | | 188,000 | 185,772 |
| Georgia Power Co., | | |
| 4.65%, 05/16/2028 | | 200,000 | 200,295 |
| 4.95%, 05/17/2033 | | 207,000 | 206,540 |
| MidAmerican Energy Co., | | |
| 5.35%, 01/15/2034 | | 181,000 | 185,871 |
| 5.85%, 09/15/2054 | | 304,000 | 322,346 |
| 5.30%, 02/01/2055 | | 714,000 | 704,728 |
| National Rural Utilities Cooperative Finance Corp., | | |
| 4.12%, 09/16/2027 | | 6,700,000 | 6,634,854 |
| 4.85%, 02/07/2029 | | 1,184,000 | 1,192,582 |
| 5.00%, 02/07/2031 | | 1,107,000 | 1,122,037 |
| 5.80%, 01/15/2033 | | 94,000 | 98,899 |
| 5.00%, 08/15/2034 | | 4,737,000 | 4,690,054 |
| 7.13%, 09/15/2053(c) | | 2,483,000 | 2,587,182 |
| NextEra Energy Capital Holdings, Inc., | | |
| 6.05%, 03/01/2025 | | 316,000 | 317,060 |
| 4.95%, 01/29/2026 | | 4,019,000 | 4,033,456 |
| 4.63%, 07/15/2027 | | 244,000 | 244,245 |
| 4.90%, 03/15/2029 | | 1,810,000 | 1,818,760 |
| 5.25%, 03/15/2034 | | 1,742,000 | 1,750,418 |
| 5.55%, 03/15/2054 | | 1,822,000 | 1,812,289 |
| 6.75%, 06/15/2054(c) | | 1,007,000 | 1,056,981 |
| Niagara Mohawk Power Corp., 5.29%, 01/17/2034(b) | | 724,000 | 720,423 |
| Ohio Power Co., 5.65%, 06/01/2034 | | 1,413,000 | 1,445,061 |
| Oklahoma Gas and Electric Co., 5.60%, 04/01/2053 | | 4,003,000 | 4,037,359 |
| | Principal
Amount | Value |
| Electric Utilities–(continued) |
| Oncor Electric Delivery Co. LLC, 5.65%, 11/15/2033 | | $666,000 | $697,575 |
| Pacific Gas and Electric Co., 5.90%, 10/01/2054 | | 1,599,000 | 1,600,073 |
| PacifiCorp, | | |
| 5.10%, 02/15/2029 | | 740,000 | 749,352 |
| 5.30%, 02/15/2031 | | 610,000 | 619,178 |
| 5.45%, 02/15/2034 | | 918,000 | 924,707 |
| 5.80%, 01/15/2055 | | 701,000 | 701,886 |
| PECO Energy Co., 4.90%, 06/15/2033 | | 310,000 | 309,545 |
| PPL Capital Funding, Inc., 5.25%, 09/01/2034 | | 792,000 | 786,291 |
| Public Service Co. of Colorado, 5.25%, 04/01/2053 | | 217,000 | 207,530 |
| Public Service Co. of New Hampshire, 5.35%, 10/01/2033 | | 271,000 | 279,705 |
| San Diego Gas & Electric Co., | | |
| 5.35%, 04/01/2053 | | 474,000 | 463,689 |
| 5.55%, 04/15/2054 | | 1,404,000 | 1,418,539 |
| Sierra Pacific Power Co., 5.90%, 03/15/2054 | | 219,000 | 228,496 |
| Southern Co. (The), | | |
| 5.15%, 10/06/2025 | | 140,000 | 140,698 |
| 5.70%, 10/15/2032 | | 101,000 | 105,686 |
| 4.85%, 03/15/2035 | | 2,295,000 | 2,233,690 |
| Southwestern Electric Power Co., 5.30%, 04/01/2033 | | 191,000 | 191,783 |
| Union Electric Co., | | |
| 5.20%, 04/01/2034 | | 1,919,000 | 1,941,574 |
| 5.13%, 03/15/2055 | | 1,576,000 | 1,498,941 |
| Virginia Electric and Power Co., | | |
| 5.00%, 04/01/2033 | | 215,000 | 213,624 |
| 5.35%, 01/15/2054 | | 536,000 | 525,398 |
| Vistra Operations Co. LLC, | | |
| 6.95%, 10/15/2033(b) | | 516,000 | 563,513 |
| 6.00%, 04/15/2034(b) | | 925,000 | 955,242 |
| | | | 78,247,258 |
| Electronic Components–0.12% |
| Amphenol Corp., | | |
| 5.00%, 01/15/2035 | | 2,296,000 | 2,281,907 |
| 5.38%, 11/15/2054 | | 1,310,000 | 1,298,820 |
| | | | 3,580,727 |
| Environmental & Facilities Services–0.31% |
| Republic Services, Inc., | | |
| 4.88%, 04/01/2029 | | 832,000 | 837,281 |
| 5.00%, 12/15/2033 | | 733,000 | 732,110 |
| 5.00%, 04/01/2034 | | 119,000 | 118,625 |
| Veralto Corp., | | |
| 5.50%, 09/18/2026 | | 1,439,000 | 1,458,466 |
| 5.35%, 09/18/2028 | | 597,000 | 608,370 |
| 5.45%, 09/18/2033 | | 310,000 | 314,832 |
| Waste Management, Inc., 5.35%, 10/15/2054 | | 4,842,000 | 4,853,484 |
| | | | 8,923,168 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Financial Exchanges & Data–0.04% |
| Intercontinental Exchange, Inc., | | |
| 4.60%, 03/15/2033 | | $102,000 | $99,190 |
| 4.95%, 06/15/2052 | | 119,000 | 112,511 |
| 5.20%, 06/15/2062 | | 271,000 | 263,455 |
| Nasdaq, Inc., | | |
| 5.35%, 06/28/2028 | | 174,000 | 177,716 |
| 5.55%, 02/15/2034 | | 242,000 | 247,438 |
| 5.95%, 08/15/2053 | | 106,000 | 110,377 |
| 6.10%, 06/28/2063 | | 226,000 | 237,192 |
| | | | 1,247,879 |
| Food Retail–0.87% |
| Kroger Co. (The), | | |
| 4.70%, 08/15/2026 | | 1,857,000 | 1,863,498 |
| 4.60%, 08/15/2027 | | 1,733,000 | 1,737,351 |
| 4.65%, 09/15/2029 | | 6,012,000 | 6,013,139 |
| 4.90%, 09/15/2031 | | 2,030,000 | 2,026,121 |
| 5.00%, 09/15/2034 | | 4,033,000 | 3,968,430 |
| 5.50%, 09/15/2054 | | 4,391,000 | 4,267,453 |
| 5.65%, 09/15/2064 | | 5,288,000 | 5,143,047 |
| | | | 25,019,039 |
| Gas Utilities–0.08% |
| Atmos Energy Corp., | | |
| 5.90%, 11/15/2033 | | 334,000 | 355,648 |
| 6.20%, 11/15/2053 | | 241,000 | 267,493 |
| 5.00%, 12/15/2054 | | 1,464,000 | 1,365,620 |
| Piedmont Natural Gas Co., Inc., 5.40%, 06/15/2033 | | 267,000 | 272,460 |
| Southwest Gas Corp., 5.45%, 03/23/2028 | | 138,000 | 140,102 |
| | | | 2,401,323 |
| Health Care Distributors–0.09% |
| Cardinal Health, Inc., 5.45%, 02/15/2034 | | 536,000 | 545,524 |
| Cencora, Inc., 5.13%, 02/15/2034 | | 452,000 | 449,200 |
| McKesson Corp., | | |
| 4.25%, 09/15/2029 | | 1,368,000 | 1,340,627 |
| 5.10%, 07/15/2033 | | 202,000 | 203,695 |
| | | | 2,539,046 |
| Health Care Equipment–0.48% |
| Becton, Dickinson and Co., 4.69%, 02/13/2028 | | 161,000 | 160,975 |
| Medtronic Global Holdings S.C.A., 4.50%, 03/30/2033 | | 326,000 | 318,397 |
| Smith & Nephew PLC (United Kingdom), | | |
| 5.15%, 03/20/2027 | | 2,053,000 | 2,065,103 |
| 5.40%, 03/20/2034 | | 1,850,000 | 1,859,667 |
| Stryker Corp., | | |
| 4.25%, 09/11/2029 | | 2,833,000 | 2,776,662 |
| 4.63%, 09/11/2034 | | 6,941,000 | 6,717,044 |
| | | | 13,897,848 |
| Health Care Facilities–0.29% |
| Adventist Health System, 5.76%, 12/01/2034 | | 774,000 | 782,297 |
| HCA, Inc., | | |
| 5.45%, 09/15/2034 | | 1,104,000 | 1,096,578 |
| 5.90%, 06/01/2053 | | 447,000 | 442,275 |
| | Principal
Amount | Value |
| Health Care Facilities–(continued) |
| Universal Health Services, Inc., | | |
| 4.63%, 10/15/2029 | | $2,035,000 | $1,977,523 |
| 5.05%, 10/15/2034 | | 3,621,000 | 3,436,904 |
| UPMC, | | |
| 5.04%, 05/15/2033 | | 429,000 | 426,510 |
| 5.38%, 05/15/2043 | | 224,000 | 223,392 |
| | | | 8,385,479 |
| Health Care REITs–0.07% |
| Alexandria Real Estate Equities, Inc., | | |
| 5.25%, 05/15/2036 | | 401,000 | 395,188 |
| 5.63%, 05/15/2054 | | 1,773,000 | 1,754,240 |
| | | | 2,149,428 |
| Health Care Services–0.82% |
| CommonSpirit Health, | | |
| 5.21%, 12/01/2031 | | 9,888,000 | 9,948,066 |
| 5.32%, 12/01/2034 | | 1,855,000 | 1,863,867 |
| 5.55%, 12/01/2054 | | 596,000 | 596,737 |
| CVS Health Corp., | | |
| 5.00%, 01/30/2029 | | 315,000 | 314,089 |
| 5.25%, 01/30/2031 | | 97,000 | 96,411 |
| 5.30%, 06/01/2033 | | 346,000 | 339,408 |
| 6.00%, 06/01/2063 | | 172,000 | 166,367 |
| Icon Investments Six DAC, | | |
| 5.81%, 05/08/2027 | | 1,541,000 | 1,572,038 |
| 5.85%, 05/08/2029 | | 1,229,000 | 1,263,689 |
| 6.00%, 05/08/2034 | | 1,353,000 | 1,386,599 |
| Laboratory Corp. of America Holdings, | | |
| 4.35%, 04/01/2030 | | 4,387,000 | 4,256,155 |
| 4.80%, 10/01/2034 | | 868,000 | 836,555 |
| Piedmont Healthcare, Inc., 2.86%, 01/01/2052 | | 338,000 | 217,948 |
| Providence St. Joseph Health Obligated Group, Series 21-A, 2.70%, 10/01/2051 | | 504,000 | 305,506 |
| Quest Diagnostics, Inc., 6.40%, 11/30/2033 | | 391,000 | 424,196 |
| | | | 23,587,631 |
| Health Care Supplies–0.16% |
| Solventum Corp., | | |
| 5.45%, 02/25/2027(b) | | 1,039,000 | 1,052,859 |
| 5.40%, 03/01/2029(b) | | 1,996,000 | 2,022,299 |
| 5.60%, 03/23/2034(b) | | 1,284,000 | 1,294,450 |
| 5.90%, 04/30/2054(b) | | 125,000 | 125,314 |
| | | | 4,494,922 |
| Home Improvement Retail–0.16% |
| Americold Realty Operating Partnership L.P., 5.41%, 09/12/2034 | | 3,037,000 | 2,963,478 |
| Home Depot, Inc. (The), 4.90%, 04/15/2029 | | 838,000 | 849,918 |
| Lowe’s Cos., Inc., | | |
| 5.75%, 07/01/2053 | | 103,000 | 104,128 |
| 5.80%, 09/15/2062 | | 40,000 | 40,109 |
| 5.85%, 04/01/2063 | | 645,000 | 652,409 |
| | | | 4,610,042 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Hotel & Resort REITs–0.08% |
| Phillips Edison Grocery Center Operating Partnership I L.P., | | |
| 5.75%, 07/15/2034 | | $612,000 | $621,231 |
| 4.95%, 01/15/2035 | | 1,803,000 | 1,725,615 |
| | | | 2,346,846 |
| Hotels, Resorts & Cruise Lines–0.21% |
| Choice Hotels International, Inc., 5.85%, 08/01/2034 | | 1,134,000 | 1,141,063 |
| Marriott International, Inc., | | |
| 4.88%, 05/15/2029 | | 384,000 | 384,514 |
| 4.80%, 03/15/2030 | | 1,943,000 | 1,930,721 |
| 5.30%, 05/15/2034 | | 642,000 | 641,999 |
| 5.35%, 03/15/2035 | | 1,866,000 | 1,857,362 |
| | | | 5,955,659 |
| Industrial Conglomerates–0.24% |
| Honeywell International, Inc., | | |
| 4.88%, 09/01/2029 | | 1,474,000 | 1,493,792 |
| 4.95%, 09/01/2031 | | 1,829,000 | 1,860,805 |
| 5.00%, 02/15/2033 | | 27,000 | 27,380 |
| 5.00%, 03/01/2035 | | 1,275,000 | 1,281,469 |
| 5.35%, 03/01/2064 | | 2,208,000 | 2,211,743 |
| | | | 6,875,189 |
| Industrial Machinery & Supplies & Components–0.08% |
| Ingersoll Rand, Inc., | | |
| 5.20%, 06/15/2027 | | 1,361,000 | 1,379,107 |
| 5.40%, 08/14/2028 | | 115,000 | 117,636 |
| Nordson Corp., | | |
| 5.60%, 09/15/2028 | | 207,000 | 213,032 |
| 5.80%, 09/15/2033 | | 313,000 | 327,843 |
| nVent Finance S.a.r.l. (United Kingdom), 5.65%, 05/15/2033 | | 308,000 | 314,507 |
| | | | 2,352,125 |
| Industrial REITs–0.01% |
| LXP Industrial Trust, 6.75%, 11/15/2028 | | 356,000 | 373,790 |
| Insurance Brokers–0.06% |
| Arthur J. Gallagher & Co., 6.75%, 02/15/2054 | | 449,000 | 511,159 |
| Marsh & McLennan Cos., Inc., | | |
| 5.40%, 09/15/2033 | | 542,000 | 559,639 |
| 5.45%, 03/15/2053 | | 155,000 | 154,225 |
| 5.70%, 09/15/2053 | | 486,000 | 501,048 |
| | | | 1,726,071 |
| Integrated Oil & Gas–0.19% |
| BP Capital Markets America, Inc., | | |
| 4.81%, 02/13/2033 | | 158,000 | 154,812 |
| 4.89%, 09/11/2033 | | 276,000 | 271,468 |
| Eni S.p.A. (Italy), 5.50%, 05/15/2034(b) | | 1,203,000 | 1,210,219 |
| | Principal
Amount | Value |
| Integrated Oil & Gas–(continued) |
| Occidental Petroleum Corp., | | |
| 5.00%, 08/01/2027 | | $612,000 | $611,681 |
| 5.20%, 08/01/2029 | | 612,000 | 610,937 |
| 5.55%, 10/01/2034 | | 865,000 | 852,121 |
| 6.45%, 09/15/2036 | | 774,000 | 801,033 |
| 4.63%, 06/15/2045 | | 341,000 | 271,057 |
| 6.05%, 10/01/2054 | | 624,000 | 605,217 |
| | | | 5,388,545 |
| Integrated Telecommunication Services–0.03% |
| AT&T, Inc., | | |
| 2.55%, 12/01/2033 | | 195,000 | 158,685 |
| 5.40%, 02/15/2034 | | 376,000 | 381,930 |
| Verizon Communications, Inc., 2.36%, 03/15/2032 | | 350,000 | 291,909 |
| | | | 832,524 |
| Interactive Media & Services–0.53% |
| Meta Platforms, Inc., | | |
| 4.30%, 08/15/2029 | | 2,749,000 | 2,728,945 |
| 4.55%, 08/15/2031 | | 1,083,000 | 1,075,223 |
| 4.75%, 08/15/2034 | | 3,793,000 | 3,753,254 |
| 5.40%, 08/15/2054 | | 1,859,000 | 1,868,868 |
| 4.65%, 08/15/2062 | | 181,000 | 160,715 |
| 5.75%, 05/15/2063 | | 459,000 | 479,478 |
| 5.55%, 08/15/2064 | | 5,123,000 | 5,196,961 |
| | | | 15,263,444 |
| Investment Banking & Brokerage–2.06% |
| Brookfield Finance, Inc. (Canada), 5.97%, 03/04/2054 | | 674,000 | 699,527 |
| Charles Schwab Corp. (The), Series K, 5.00%(c)(e) | | 221,000 | 215,849 |
| Goldman Sachs Group, Inc. (The), | | |
| 5.70%, 11/01/2024 | | 194,000 | 194,000 |
| 5.73%, 04/25/2030(c) | | 1,503,000 | 1,545,692 |
| 5.05%, 07/23/2030(c) | | 2,601,000 | 2,607,680 |
| 4.69%, 10/23/2030(c) | | 3,101,000 | 3,061,365 |
| 5.85%, 04/25/2035(c) | | 1,757,000 | 1,821,161 |
| 5.33%, 07/23/2035(c) | | 2,080,000 | 2,078,441 |
| 5.02%, 10/23/2035(c) | | 5,331,000 | 5,207,234 |
| Series W, 7.50%(c)(e) | | 7,441,000 | 7,974,036 |
| Series X, 7.50%(c)(e) | | 8,177,000 | 8,594,423 |
| Series Y, 6.13%(c)(e) | | 7,567,000 | 7,524,289 |
| Morgan Stanley, | | |
| 5.65%, 04/13/2028(c) | | 1,349,000 | 1,376,186 |
| 5.12%, 02/01/2029(c) | | 124,000 | 125,022 |
| 5.16%, 04/20/2029(c) | | 707,000 | 713,185 |
| 5.45%, 07/20/2029(c) | | 224,000 | 228,379 |
| 6.41%, 11/01/2029(c) | | 602,000 | 634,079 |
| 5.17%, 01/16/2030(c) | | 565,000 | 570,012 |
| 5.04%, 07/19/2030(c) | | 1,864,000 | 1,870,365 |
| 4.65%, 10/18/2030(c) | | 4,589,000 | 4,527,118 |
| 5.25%, 04/21/2034(c) | | 706,000 | 707,290 |
| 5.42%, 07/21/2034(c) | | 419,000 | 423,465 |
| 5.47%, 01/18/2035(c) | | 593,000 | 600,952 |
| 5.83%, 04/19/2035(c) | | 1,515,000 | 1,575,193 |
| 5.32%, 07/19/2035(c) | | 2,882,000 | 2,893,949 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Investment Banking & Brokerage–(continued) |
| 5.95%, 01/19/2038(c) | | $106,000 | $108,002 |
| 5.94%, 02/07/2039(c) | | 1,356,000 | 1,376,312 |
| | | | 59,253,206 |
| Leisure Products–0.03% |
| Brunswick Corp., 5.85%, 03/18/2029 | | 548,000 | 558,137 |
| Polaris, Inc., 6.95%, 03/15/2029 | | 421,000 | 444,449 |
| | | | 1,002,586 |
| Life & Health Insurance–3.89% |
| AIA Group Ltd. (Hong Kong), | | |
| 4.95%, 03/30/2035(b) | | 3,641,000 | 3,563,480 |
| 5.40%, 09/30/2054(b) | | 2,105,000 | 2,034,178 |
| Athene Global Funding, | | |
| 5.62%, 05/08/2026(b) | | 5,590,000 | 5,642,807 |
| 4.86%, 08/27/2026(b) | | 9,666,000 | 9,651,364 |
| 5.52%, 03/25/2027(b) | | 1,998,000 | 2,021,094 |
| 5.58%, 01/09/2029(b) | | 2,423,000 | 2,459,447 |
| Athene Holding Ltd., 6.25%, 04/01/2054 | | 1,068,000 | 1,097,976 |
| Corebridge Global Funding, | | |
| 6.16% (SOFR + 1.30%), 09/25/2026(b)(d) | | 4,058,000 | 4,103,304 |
| 4.65%, 08/20/2027(b) | | 5,026,000 | 5,017,320 |
| 5.90%, 09/19/2028(b) | | 504,000 | 520,776 |
| 5.20%, 01/12/2029(b) | | 1,175,000 | 1,185,413 |
| 5.20%, 06/24/2029(b) | | 2,259,000 | 2,276,134 |
| Delaware Life Global Funding, | | |
| Series 22-1, 3.31%, 03/10/2025(b) | | 3,826,000 | 3,780,088 |
| Series 21-1, 2.66%, 06/29/2026(b) | | 10,423,000 | 10,026,611 |
| F&G Annuities & Life, Inc., 7.40%, 01/13/2028 | | 263,000 | 273,545 |
| GA Global Funding Trust, | | |
| 4.40%, 09/23/2027(b) | | 7,475,000 | 7,367,885 |
| 5.50%, 01/08/2029(b) | | 1,317,000 | 1,338,087 |
| MAG Mutual Holding Co., 4.75%, 04/30/2041(b)(f) | | 9,203,000 | 8,361,846 |
| MassMutual Global Funding II, 5.10%, 04/09/2027(b) | | 5,042,000 | 5,112,463 |
| MetLife, Inc., 5.25%, 01/15/2054 | | 427,000 | 419,210 |
| New York Life Global Funding, 4.55%, 01/28/2033(b) | | 360,000 | 351,403 |
| Nippon Life Insurance Co. (Japan), 5.95%, 04/16/2054(b)(c) | | 2,128,000 | 2,183,475 |
| Northwestern Mutual Global Funding, | | |
| 5.07%, 03/25/2027(b) | | 2,204,000 | 2,235,198 |
| 4.35%, 09/15/2027(b) | | 302,000 | 300,825 |
| 4.71%, 01/10/2029(b) | | 3,313,000 | 3,314,739 |
| Pacific Life Global Funding II, | | |
| 5.90% (SOFR + 1.05%), 07/28/2026(b)(d) | | 2,800,000 | 2,823,379 |
| 4.90%, 01/11/2029(b) | | 3,653,000 | 3,664,883 |
| 4.50%, 08/28/2029(b) | | 9,147,000 | 9,074,145 |
| Pricoa Global Funding I, | | |
| 4.40%, 08/27/2027(b) | | 4,503,000 | 4,494,639 |
| 4.65%, 08/27/2031(b) | | 1,424,000 | 1,402,155 |
| | Principal
Amount | Value |
| Life & Health Insurance–(continued) |
| Principal Life Global Funding II, | | |
| 5.00%, 01/16/2027(b) | | $858,000 | $865,444 |
| 5.10%, 01/25/2029(b) | | 3,389,000 | 3,427,755 |
| Sumitomo Life Insurance Co. (Japan), 5.88%(b)(c)(e) | | 1,409,000 | 1,431,593 |
| | | | 111,822,661 |
| Managed Health Care–0.10% |
| Humana, Inc., 5.75%, 12/01/2028 | | 392,000 | 402,362 |
| UnitedHealth Group, Inc., | | |
| 5.15%, 10/15/2025 | | 181,000 | 182,189 |
| 5.25%, 02/15/2028 | | 197,000 | 201,501 |
| 5.30%, 02/15/2030 | | 309,000 | 317,368 |
| 5.35%, 02/15/2033 | | 267,000 | 274,310 |
| 4.50%, 04/15/2033 | | 95,000 | 91,996 |
| 5.05%, 04/15/2053 | | 188,000 | 177,234 |
| 5.63%, 07/15/2054 | | 970,000 | 987,392 |
| 5.20%, 04/15/2063 | | 174,000 | 163,558 |
| | | | 2,797,910 |
| Marine Transportation–0.01% |
| A.P. Moller - Maersk A/S (Denmark), 5.88%, 09/14/2033(b) | | 381,000 | 397,142 |
| Movies & Entertainment–0.02% |
| Netflix, Inc., 5.40%, 08/15/2054 | | 357,000 | 359,331 |
| Warnermedia Holdings, Inc., | | |
| 5.05%, 03/15/2042 | | 199,000 | 158,895 |
| 5.14%, 03/15/2052 | | 158,000 | 119,084 |
| | | | 637,310 |
| Multi-Family Residential REITs–0.31% |
| AvalonBay Communities, Inc., 5.30%, 12/07/2033 | | 796,000 | 807,484 |
| Essex Portfolio L.P., 5.50%, 04/01/2034 | | 765,000 | 772,881 |
| Invitation Homes Operating Partnership L.P., 4.88%, 02/01/2035 | | 3,829,000 | 3,663,509 |
| Mid-America Apartments L.P., 5.30%, 02/15/2032 | | 2,697,000 | 2,734,511 |
| UDR, Inc., 5.13%, 09/01/2034 | | 824,000 | 806,581 |
| | | | 8,784,966 |
| Multi-line Insurance–0.27% |
| Allianz SE (Germany), 3.50%(b)(c)(e) | | 7,000,000 | 6,742,692 |
| Metropolitan Life Global Funding I, 5.15%, 03/28/2033(b) | | 880,000 | 884,518 |
| | | | 7,627,210 |
| Multi-Utilities–1.03% |
| AEP Texas, Inc., 3.95%, 06/01/2028(b) | | 2,489,000 | 2,416,217 |
| Algonquin Power & Utilities Corp. (Canada), 5.37%, 06/15/2026 | | 847,000 | 852,129 |
| Ameren Illinois Co., 4.95%, 06/01/2033 | | 246,000 | 245,864 |
| Black Hills Corp., 6.15%, 05/15/2034 | | 664,000 | 696,919 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Multi-Utilities–(continued) |
| CenterPoint Energy, Inc., | | |
| Series B, 6.85%, 02/15/2055(c) | | $861,000 | $884,721 |
| 6.70%, 05/15/2055(c) | | 4,018,000 | 4,018,965 |
| Dominion Energy, Inc., | | |
| 5.38%, 11/15/2032 | | 423,000 | 430,395 |
| Series B, 7.00%, 06/01/2054(c) | | 1,430,000 | 1,525,096 |
| Series A, 6.88%, 02/01/2055(c) | | 1,087,000 | 1,138,073 |
| DTE Energy Co., | | |
| 4.95%, 07/01/2027 | | 1,081,000 | 1,087,202 |
| 5.85%, 06/01/2034 | | 639,000 | 664,581 |
| ENGIE S.A. (France), | | |
| 5.25%, 04/10/2029(b) | | 1,187,000 | 1,205,357 |
| 5.63%, 04/10/2034(b) | | 1,100,000 | 1,123,182 |
| 5.88%, 04/10/2054(b) | | 1,090,000 | 1,108,817 |
| NiSource, Inc., | | |
| 5.25%, 03/30/2028 | | 100,000 | 101,482 |
| 5.40%, 06/30/2033 | | 84,000 | 84,926 |
| 5.35%, 04/01/2034 | | 2,396,000 | 2,404,696 |
| 6.95%, 11/30/2054(c) | | 1,076,000 | 1,105,289 |
| Public Service Enterprise Group, Inc., | | |
| 5.88%, 10/15/2028 | | 936,000 | 971,740 |
| 6.13%, 10/15/2033 | | 585,000 | 619,785 |
| Sempra, | | |
| 6.40%, 10/01/2054(c) | | 3,716,000 | 3,712,208 |
| 6.88%, 10/01/2054(c) | | 2,393,000 | 2,441,293 |
| WEC Energy Group, Inc., | | |
| 5.00%, 09/27/2025 | | 314,000 | 314,354 |
| 5.15%, 10/01/2027 | | 206,000 | 209,232 |
| 4.75%, 01/15/2028 | | 152,000 | 152,572 |
| | | | 29,515,095 |
| Office REITs–0.25% |
| Boston Properties L.P., 5.75%, 01/15/2035 | | 5,110,000 | 5,063,142 |
| Cousins Properties L.P., 5.88%, 10/01/2034 | | 2,087,000 | 2,106,620 |
| | | | 7,169,762 |
| Oil & Gas Drilling–0.01% |
| Patterson-UTI Energy, Inc., 7.15%, 10/01/2033 | | 243,000 | 257,116 |
| Oil & Gas Equipment & Services–0.01% |
| Northern Natural Gas Co., 5.63%, 02/01/2054(b) | | 391,000 | 389,461 |
| Oil & Gas Exploration & Production–0.28% |
| Aker BP ASA (Norway), 5.80%, 10/01/2054(b) | | 2,653,000 | 2,486,969 |
| ConocoPhillips Co., | | |
| 5.55%, 03/15/2054 | | 338,000 | 337,640 |
| 5.70%, 09/15/2063 | | 256,000 | 258,598 |
| Diamondback Energy, Inc., | | |
| 5.20%, 04/18/2027 | | 1,232,000 | 1,244,826 |
| 5.15%, 01/30/2030 | | 1,172,000 | 1,179,386 |
| 5.40%, 04/18/2034 | | 892,000 | 890,856 |
| 5.75%, 04/18/2054 | | 817,000 | 794,161 |
| 5.90%, 04/18/2064 | | 709,000 | 687,362 |
| | Principal
Amount | Value |
| Oil & Gas Exploration & Production–(continued) |
| Pioneer Natural Resources Co., 5.10%, 03/29/2026 | | $171,000 | $172,338 |
| | | | 8,052,136 |
| Oil & Gas Refining & Marketing–0.01% |
| Phillips 66 Co., 5.30%, 06/30/2033 | | 366,000 | 366,763 |
| Oil & Gas Storage & Transportation–1.49% |
| Cheniere Energy Partners L.P., 5.95%, 06/30/2033 | | 346,000 | 356,098 |
| Columbia Pipelines Holding Co. LLC, | | |
| 6.06%, 08/15/2026(b) | | 234,000 | 237,875 |
| 5.10%, 10/01/2031(b) | | 1,705,000 | 1,667,609 |
| Columbia Pipelines Operating Co. LLC, 5.70%, 10/01/2054(b) | | 3,868,000 | 3,735,766 |
| Eastern Energy Gas Holdings LLC, 5.65%, 10/15/2054 | | 2,252,000 | 2,202,804 |
| Enbridge, Inc. (Canada), | | |
| 5.70%, 03/08/2033 | | 335,000 | 343,659 |
| Series NC5, 8.25%, 01/15/2084(c) | | 150,000 | 158,824 |
| Energy Transfer L.P., | | |
| 6.05%, 12/01/2026 | | 1,427,000 | 1,462,458 |
| 6.40%, 12/01/2030 | | 192,000 | 203,713 |
| 5.75%, 02/15/2033 | | 135,000 | 137,720 |
| 6.55%, 12/01/2033 | | 233,000 | 250,066 |
| 5.55%, 05/15/2034 | | 649,000 | 652,181 |
| 5.95%, 05/15/2054 | | 595,000 | 586,567 |
| 6.05%, 09/01/2054 | | 2,376,000 | 2,380,752 |
| Kinder Morgan, Inc., | | |
| 4.80%, 02/01/2033 | | 147,000 | 141,610 |
| 5.20%, 06/01/2033 | | 349,000 | 343,622 |
| MPLX L.P., | | |
| 5.00%, 03/01/2033 | | 195,000 | 189,783 |
| 4.95%, 03/14/2052 | | 179,000 | 154,319 |
| ONEOK, Inc., | | |
| 5.55%, 11/01/2026 | | 179,000 | 181,497 |
| 4.25%, 09/24/2027 | | 3,681,000 | 3,634,730 |
| 5.65%, 11/01/2028 | | 219,000 | 224,992 |
| 4.40%, 10/15/2029 | | 3,049,000 | 2,971,256 |
| 5.80%, 11/01/2030 | | 521,000 | 540,946 |
| 6.10%, 11/15/2032 | | 106,000 | 111,619 |
| 6.05%, 09/01/2033 | | 503,000 | 523,759 |
| 6.63%, 09/01/2053 | | 717,000 | 773,175 |
| Sabine Pass Liquefaction LLC, 5.90%, 09/15/2037 | | 271,000 | 281,944 |
| South Bow USA Infrastructure Holdings LLC (Canada), | | |
| 4.91%, 09/01/2027(b) | | 1,867,000 | 1,859,410 |
| 5.03%, 10/01/2029(b) | | 2,696,000 | 2,653,516 |
| 5.58%, 10/01/2034(b) | | 2,716,000 | 2,684,877 |
| 6.18%, 10/01/2054(b) | | 650,000 | 643,824 |
| Southern Co. Gas Capital Corp., 5.75%, 09/15/2033 | | 261,000 | 272,317 |
| Targa Resources Corp., | | |
| 5.20%, 07/01/2027 | | 155,000 | 156,833 |
| 5.50%, 02/15/2035 | | 824,000 | 822,502 |
| Western Midstream Operating L.P., | | |
| 6.15%, 04/01/2033 | | 335,000 | 346,520 |
| 5.45%, 11/15/2034 | | 3,608,000 | 3,521,246 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Oil & Gas Storage & Transportation–(continued) |
| Williams Cos., Inc. (The), | | |
| 5.30%, 08/15/2028 | | $856,000 | $869,601 |
| 4.80%, 11/15/2029 | | 2,372,000 | 2,359,264 |
| 5.65%, 03/15/2033 | | 346,000 | 354,648 |
| 5.15%, 03/15/2034 | | 745,000 | 733,886 |
| 5.80%, 11/15/2054 | | 1,248,000 | 1,253,987 |
| | | | 42,981,775 |
| Other Specialty Retail–0.00% |
| Tractor Supply Co., 5.25%, 05/15/2033 | | 137,000 | 137,646 |
| Packaged Foods & Meats–0.34% |
| Campbell Soup Co., | | |
| 5.30%, 03/20/2026 | | 468,000 | 471,826 |
| 5.20%, 03/19/2027 | | 740,000 | 751,055 |
| 5.20%, 03/21/2029 | | 745,000 | 755,642 |
| 5.40%, 03/21/2034 | | 978,000 | 989,602 |
| 5.25%, 10/13/2054 | | 1,726,000 | 1,643,401 |
| J.M. Smucker Co. (The), 6.20%, 11/15/2033 | | 333,000 | 355,769 |
| Mars, Inc., 4.55%, 04/20/2028(b) | | 550,000 | 547,270 |
| McCormick & Co., Inc., 4.70%, 10/15/2034 | | 4,318,000 | 4,152,458 |
| | | | 9,667,023 |
| Paper & Plastic Packaging Products & Materials–0.13% |
| Smurfit Kappa Treasury Unlimited Co. (Ireland), | | |
| 5.20%, 01/15/2030(b) | | 1,316,000 | 1,329,605 |
| 5.44%, 04/03/2034(b) | | 1,256,000 | 1,265,007 |
| 5.78%, 04/03/2054(b) | | 1,131,000 | 1,144,433 |
| | | | 3,739,045 |
| Passenger Airlines–0.25% |
| American Airlines Pass-Through Trust, | | |
| Series 2021-1, Class B, 3.95%, 07/11/2030 | | 596,960 | 554,576 |
| Series 2021-1, Class A, 2.88%, 07/11/2034 | | 159,803 | 139,249 |
| AS Mileage Plan IP Ltd., | | |
| 5.02%, 10/20/2029(b) | | 1,940,000 | 1,885,079 |
| 5.31%, 10/20/2031(b) | | 2,223,000 | 2,146,368 |
| Delta Air Lines, Inc./SkyMiles IP Ltd., | | |
| 4.50%, 10/20/2025(b) | | 95,100 | 94,657 |
| 4.75%, 10/20/2028(b) | | 452,993 | 448,113 |
| United Airlines Pass-Through Trust, | | |
| Series 2020-1, Class A, 5.88%, 10/15/2027 | | 97,810 | 100,103 |
| Series 2019-2, Class AA, 2.70%, 05/01/2032 | | 4,040 | 3,590 |
| Series AA, 5.45%, 02/15/2037 | | 1,864,000 | 1,898,228 |
| | | | 7,269,963 |
| Passenger Ground Transportation–0.43% |
| Uber Technologies, Inc., | | |
| 4.30%, 01/15/2030 | | 5,525,000 | 5,375,846 |
| 4.80%, 09/15/2034 | | 3,389,000 | 3,287,918 |
| 5.35%, 09/15/2054 | | 3,782,000 | 3,609,623 |
| | | | 12,273,387 |
| | Principal
Amount | Value |
| Personal Care Products–0.04% |
| Kenvue, Inc., | | |
| 5.05%, 03/22/2028 | | $203,000 | $206,653 |
| 5.00%, 03/22/2030 | | 332,000 | 337,461 |
| 4.90%, 03/22/2033 | | 373,000 | 373,218 |
| 5.20%, 03/22/2063 | | 196,000 | 190,809 |
| | | | 1,108,141 |
| Pharmaceuticals–1.22% |
| AstraZeneca Finance LLC (United Kingdom), | | |
| 4.80%, 02/26/2027 | | 1,332,000 | 1,342,930 |
| 4.85%, 02/26/2029 | | 764,000 | 771,584 |
| 4.90%, 02/26/2031 | | 1,017,000 | 1,027,812 |
| Bayer US Finance LLC (Germany), | | |
| 6.25%, 01/21/2029(b) | | 1,095,000 | 1,132,541 |
| 6.38%, 11/21/2030(b) | | 1,155,000 | 1,205,025 |
| 6.50%, 11/21/2033(b) | | 1,195,000 | 1,254,935 |
| Bristol-Myers Squibb Co., | | |
| 4.95%, 02/20/2026 | | 1,267,000 | 1,275,462 |
| 4.90%, 02/22/2027 | | 421,000 | 425,526 |
| 4.90%, 02/22/2029 | | 424,000 | 429,592 |
| 5.75%, 02/01/2031 | | 742,000 | 780,100 |
| 5.90%, 11/15/2033 | | 460,000 | 492,079 |
| 6.25%, 11/15/2053 | | 322,000 | 355,911 |
| 6.40%, 11/15/2063 | | 417,000 | 466,319 |
| Eli Lilly and Co., | | |
| 4.50%, 02/09/2027 | | 2,287,000 | 2,294,098 |
| 4.70%, 02/27/2033 | | 296,000 | 294,780 |
| 4.70%, 02/09/2034 | | 1,111,000 | 1,095,911 |
| 4.88%, 02/27/2053 | | 264,000 | 250,011 |
| 5.00%, 02/09/2054 | | 735,000 | 708,934 |
| 5.05%, 08/14/2054 | | 3,109,000 | 3,020,076 |
| 4.95%, 02/27/2063 | | 159,000 | 150,379 |
| 5.10%, 02/09/2064 | | 969,000 | 930,456 |
| 5.20%, 08/14/2064 | | 870,000 | 851,394 |
| Merck & Co., Inc., | | |
| 4.90%, 05/17/2044 | | 737,000 | 705,216 |
| 5.00%, 05/17/2053 | | 206,000 | 196,295 |
| 5.15%, 05/17/2063 | | 280,000 | 269,949 |
| Novartis Capital Corp. (Switzerland), | | |
| 3.80%, 09/18/2029 | | 3,264,000 | 3,166,606 |
| 4.00%, 09/18/2031 | | 2,561,000 | 2,463,454 |
| 4.20%, 09/18/2034 | | 4,518,000 | 4,285,926 |
| 4.70%, 09/18/2054 | | 3,196,000 | 2,960,887 |
| Pfizer Investment Enterprises Pte. Ltd., 4.75%, 05/19/2033 | | 429,000 | 422,799 |
| | | | 35,026,987 |
| Property & Casualty Insurance–0.17% |
| Fairfax Financial Holdings Ltd. (Canada), | | |
| 6.35%, 03/22/2054 | | 1,161,000 | 1,209,015 |
| 6.10%, 03/15/2055(b) | | 3,366,000 | 3,400,910 |
| Travelers Cos., Inc. (The), 5.45%, 05/25/2053 | | 193,000 | 196,866 |
| | | | 4,806,791 |
| Rail Transportation–0.20% |
| CSX Corp., 4.90%, 03/15/2055 | | 2,856,000 | 2,653,959 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Rail Transportation–(continued) |
| Norfolk Southern Corp., | | |
| 5.05%, 08/01/2030 | | $410,000 | $415,888 |
| 5.55%, 03/15/2034 | | 426,000 | 441,469 |
| 5.35%, 08/01/2054 | | 76,000 | 74,896 |
| 5.95%, 03/15/2064 | | 541,000 | 572,569 |
| TTX Co., 5.05%, 11/15/2034(b) | | 1,395,000 | 1,399,967 |
| Union Pacific Corp., 5.15%, 01/20/2063 | | 298,000 | 283,906 |
| | | | 5,842,654 |
| Real Estate Development–0.20% |
| Piedmont Operating Partnership L.P., | | |
| 9.25%, 07/20/2028 | | 3,108,000 | 3,420,194 |
| 6.88%, 07/15/2029 | | 2,315,000 | 2,389,161 |
| | | | 5,809,355 |
| Regional Banks–0.32% |
| Citizens Financial Group, Inc., 2.64%, 09/30/2032 | | 199,000 | 162,210 |
| M&T Bank Corp., 5.05%, 01/27/2034(c) | | 199,000 | 191,993 |
| Regions Financial Corp., 5.72%, 06/06/2030(c) | | 2,003,000 | 2,034,244 |
| Santander Holdings USA, Inc., 6.12%, 05/31/2027(c) | | 2,788,000 | 2,829,639 |
| Synovus Financial Corp., 6.17%, 11/01/2030(c) | | 1,766,000 | 1,766,313 |
| Truist Financial Corp., | | |
| 6.05%, 06/08/2027(c) | | 429,000 | 437,133 |
| 4.87%, 01/26/2029(c) | | 207,000 | 206,281 |
| 7.16%, 10/30/2029(c) | | 361,000 | 387,078 |
| 5.44%, 01/24/2030(c) | | 394,000 | 398,851 |
| 4.92%, 07/28/2033(c) | | 264,000 | 251,884 |
| 6.12%, 10/28/2033(c) | | 155,000 | 162,428 |
| 5.87%, 06/08/2034(c) | | 372,000 | 382,678 |
| | | | 9,210,732 |
| Reinsurance–0.18% |
| Global Atlantic (Fin) Co., 6.75%, 03/15/2054(b) | | 2,599,000 | 2,661,311 |
| Swiss Re Subordinated Finance PLC (United Kingdom), 5.70%, 04/05/2035(b)(c) | | 2,400,000 | 2,408,748 |
| | | | 5,070,059 |
| Renewable Electricity–0.04% |
| DTE Electric Co., 5.20%, 03/01/2034 | | 602,000 | 610,328 |
| Idaho Power Co., 5.20%, 08/15/2034 | | 576,000 | 578,514 |
| | | | 1,188,842 |
| Restaurants–0.09% |
| McDonald’s Corp., | | |
| 4.80%, 08/14/2028 | | 1,176,000 | 1,183,545 |
| 4.95%, 08/14/2033 | | 912,000 | 916,224 |
| 5.15%, 09/09/2052 | | 188,000 | 178,780 |
| 5.45%, 08/14/2053 | | 325,000 | 321,635 |
| | | | 2,600,184 |
| Retail REITs–0.50% |
| Agree L.P., 5.63%, 06/15/2034 | | 863,000 | 877,134 |
| | Principal
Amount | Value |
| Retail REITs–(continued) |
| Brixmor Operating Partnership L.P., 5.75%, 02/15/2035 | | $710,000 | $725,624 |
| Kimco Realty OP LLC, 4.85%, 03/01/2035 | | 2,372,000 | 2,283,591 |
| Kite Realty Group L.P., | | |
| 4.95%, 12/15/2031 | | 1,422,000 | 1,395,979 |
| 5.50%, 03/01/2034 | | 270,000 | 271,963 |
| NNN REIT, Inc., | | |
| 5.60%, 10/15/2033 | | 243,000 | 248,010 |
| 5.50%, 06/15/2034 | | 954,000 | 965,901 |
| Realty Income Corp., | | |
| 5.63%, 10/13/2032 | | 118,000 | 122,437 |
| 5.38%, 09/01/2054 | | 692,000 | 674,358 |
| Regency Centers L.P., | | |
| 5.25%, 01/15/2034 | | 508,000 | 511,624 |
| 5.10%, 01/15/2035 | | 872,000 | 860,542 |
| Simon Property Group L.P., 4.75%, 09/26/2034 | | 5,811,000 | 5,578,876 |
| | | | 14,516,039 |
| Self-Storage REITs–0.72% |
| Extra Space Storage L.P., | | |
| 5.70%, 04/01/2028 | | 137,000 | 140,459 |
| 5.40%, 02/01/2034 | | 959,000 | 959,839 |
| Goodman US Finance Six LLC (Australia), 5.13%, 10/07/2034(b) | | 792,000 | 775,029 |
| Prologis L.P., | | |
| 4.88%, 06/15/2028 | | 359,000 | 362,698 |
| 4.63%, 01/15/2033 | | 241,000 | 236,012 |
| 4.75%, 06/15/2033 | | 569,000 | 559,044 |
| 5.13%, 01/15/2034 | | 323,000 | 323,720 |
| 5.00%, 03/15/2034 | | 2,211,000 | 2,192,849 |
| 5.00%, 01/31/2035 | | 2,565,000 | 2,537,431 |
| 5.25%, 06/15/2053 | | 694,000 | 674,679 |
| 5.25%, 03/15/2054 | | 3,344,000 | 3,226,698 |
| Public Storage Operating Co., | | |
| 5.55% (SOFR + 0.70%), 04/16/2027(d) | | 6,960,000 | 6,993,472 |
| 5.13%, 01/15/2029 | | 94,000 | 96,053 |
| 5.10%, 08/01/2033 | | 525,000 | 528,417 |
| 5.35%, 08/01/2053 | | 1,004,000 | 990,097 |
| | | | 20,596,497 |
| Semiconductors–0.71% |
| Broadcom, Inc., | | |
| 4.15%, 02/15/2028 | | 7,318,000 | 7,191,171 |
| 5.05%, 07/12/2029 | | 2,264,000 | 2,284,105 |
| 5.15%, 11/15/2031 | | 1,962,000 | 1,979,818 |
| Foundry JV Holdco LLC, | | |
| 5.90%, 01/25/2030(b) | | 1,188,000 | 1,204,902 |
| 6.15%, 01/25/2032(b) | | 2,008,000 | 2,043,437 |
| 5.88%, 01/25/2034(b) | | 1,195,000 | 1,186,787 |
| 6.25%, 01/25/2035(b) | | 2,706,000 | 2,770,466 |
| 6.40%, 01/25/2038(b) | | 1,085,000 | 1,115,196 |
| Micron Technology, Inc., 5.30%, 01/15/2031 | | 600,000 | 604,594 |
| | | | 20,380,476 |
| Single-Family Residential REITs–0.08% |
| American Homes 4 Rent L.P., 5.50%, 07/15/2034 | | 2,241,000 | 2,257,395 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Soft Drinks & Non-alcoholic Beverages–0.17% |
| Coca-Cola Co. (The), | | |
| 5.30%, 05/13/2054 | | $1,919,000 | $1,934,986 |
| 5.40%, 05/13/2064 | | 2,878,000 | 2,905,205 |
| | | | 4,840,191 |
| Sovereign Debt–0.06% |
| Saudi Government International Bond (Saudi Arabia), | | |
| 4.75%, 01/16/2030(b) | | 306,000 | 304,748 |
| 5.75%, 01/16/2054(b) | | 1,325,000 | 1,285,349 |
| | | | 1,590,097 |
| Specialized Consumer Services–0.03% |
| Ashtead Capital, Inc. (United Kingdom), 5.55%, 05/30/2033(b) | | 1,002,000 | 998,372 |
| Specialized Finance–0.07% |
| Blackstone Private Credit Fund, | | |
| 4.95%, 09/26/2027(b) | | 1,675,000 | 1,644,864 |
| 6.25%, 01/25/2031(b) | | 392,000 | 396,892 |
| | | | 2,041,756 |
| Specialty Chemicals–0.04% |
| Eastman Chemical Co., 5.00%, 08/01/2029 | | 1,008,000 | 1,011,526 |
| Systems Software–0.51% |
| Oracle Corp., | | |
| 6.25%, 11/09/2032 | | 217,000 | 232,898 |
| 4.90%, 02/06/2033 | | 349,000 | 344,465 |
| 4.70%, 09/27/2034 | | 4,722,000 | 4,542,204 |
| 6.90%, 11/09/2052 | | 237,000 | 272,769 |
| 5.38%, 09/27/2054 | | 5,509,000 | 5,245,029 |
| 5.50%, 09/27/2064 | | 4,151,000 | 3,896,940 |
| | | | 14,534,305 |
| Technology Hardware, Storage & Peripherals–0.13% |
| Hewlett Packard Enterprise Co., 5.00%, 10/15/2034 | | 3,595,000 | 3,489,946 |
| Leidos, Inc., 5.75%, 03/15/2033 | | 218,000 | 225,935 |
| | | | 3,715,881 |
| Tobacco–0.85% |
| B.A.T Capital Corp. (United Kingdom), | | |
| 5.83%, 02/20/2031 | | 479,000 | 494,352 |
| 6.00%, 02/20/2034 | | 280,000 | 289,876 |
| 7.08%, 08/02/2043 | | 237,000 | 259,187 |
| 7.08%, 08/02/2053 | | 179,000 | 198,478 |
| Philip Morris International, Inc., | | |
| 4.75%, 02/12/2027 | | 2,483,000 | 2,492,840 |
| 4.38%, 11/01/2027 | | 3,070,000 | 3,051,045 |
| 5.13%, 11/17/2027 | | 224,000 | 227,168 |
| 4.88%, 02/15/2028 | | 861,000 | 865,658 |
| 5.25%, 09/07/2028 | | 689,000 | 703,235 |
| 4.88%, 02/13/2029 | | 1,894,000 | 1,899,854 |
| 4.63%, 11/01/2029 | | 3,627,000 | 3,596,937 |
| 5.13%, 02/13/2031 | | 513,000 | 517,977 |
| 4.75%, 11/01/2031 | | 2,837,000 | 2,794,554 |
| 5.38%, 02/15/2033 | | 881,000 | 893,326 |
| | Principal
Amount | Value |
| Tobacco–(continued) |
| 5.63%, 09/07/2033 | | $574,000 | $592,101 |
| 4.90%, 11/01/2034 | | 5,750,000 | 5,617,207 |
| | | | 24,493,795 |
| Trading Companies & Distributors–0.22% |
| Ferguson Enterprises, Inc., 5.00%, 10/03/2034 | | 2,142,000 | 2,079,751 |
| Mitsubishi Corp. (Japan), | | |
| 5.00%, 07/02/2029(b) | | 1,835,000 | 1,857,493 |
| 5.13%, 07/17/2034(b) | | 2,396,000 | 2,412,704 |
| | | | 6,349,948 |
| Transaction & Payment Processing Services–0.14% |
| Fiserv, Inc., | | |
| 5.38%, 08/21/2028 | | 913,000 | 931,832 |
| 5.63%, 08/21/2033 | | 564,000 | 580,932 |
| 5.45%, 03/15/2034 | | 2,015,000 | 2,046,101 |
| Mastercard, Inc., 4.85%, 03/09/2033 | | 479,000 | 481,803 |
| | | | 4,040,668 |
| Wireless Telecommunication Services–0.02% |
| T-Mobile USA, Inc., | | |
| 5.65%, 01/15/2053 | | 357,000 | 358,035 |
| 6.00%, 06/15/2054 | | 224,000 | 235,475 |
| | | | 593,510 |
| Total U.S. Dollar Denominated Bonds & Notes (Cost $1,233,808,945) | 1,238,825,661 |
| U.S. Government Sponsored Agency Mortgage-Backed Securities–29.71% |
| Collateralized Mortgage Obligations–0.20% |
| Fannie Mae Interest STRIPS, | | |
IO,
6.50%, 04/25/2029 to 02/25/2033(g)(h) | | 789,153 | 100,289 |
| 7.50%, 11/25/2029(g) | | 4,617 | 550 |
| 7.00%, 04/25/2032(g) | | 479,028 | 73,829 |
| 6.00%, 06/25/2033 to 03/25/2036(g)(h) | | 536,241 | 76,497 |
| 5.50%, 09/25/2033 to 06/25/2035(g)(h) | | 935,790 | 134,736 |
| Fannie Mae REMICs, | | |
| 7.00%, 07/25/2026 to 04/25/2033(g) | | 365,108 | 41,299 |
| 6.50%, 10/25/2028 to 10/25/2031 | | 71,331 | 72,270 |
| 6.00%, 11/25/2028 | | 35,833 | 36,183 |
| 7.50%, 12/25/2029 | | 196,597 | 200,560 |
| 5.97% (30 Day Average SOFR + 1.11%), 07/25/2032(d) | | 36,793 | 37,179 |
| 5.37% (30 Day Average SOFR + 0.51%), 03/25/2033(d) | | 9,084 | 9,005 |
| 5.50%, 04/25/2035 to 07/25/2046(g) | | 1,502,625 | 828,842 |
| 5.22% (30 Day Average SOFR + 0.36%), 08/25/2035(d) | | 25,987 | 25,790 |
| 5.97% (24.20% - (3.67 x (30 Day Average SOFR + 0.11%))), 06/25/2036(d) | | 85,486 | 99,679 |
| 5.91% (30 Day Average SOFR + 1.05%), 06/25/2037(d) | | 60,413 | 61,044 |
| 5.00%, 04/25/2040 | | 5,607 | 5,583 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Collateralized Mortgage Obligations–(continued) |
| 4.00%, 03/25/2041 to 08/25/2047(g) | | $868,065 | $155,553 |
IO,
3.18% (8.15% - (30 Day Average SOFR + 0.11%)), 04/25/2027(d)(g) | | 19,440 | 799 |
| 3.00%, 11/25/2027(g) | | 429,155 | 10,665 |
| 2.13% (7.10% - (30 Day Average SOFR + 0.11%)), 11/25/2030(d)(g) | | 7,146 | 415 |
| 2.78% (7.75% - (30 Day Average SOFR + 0.11%)), 07/25/2031 to 02/25/2032(d)(g) | | 36,521 | 3,282 |
| 2.83% (7.85% - (30 Day Average SOFR + 0.11%)), 11/18/2031(d)(g) | | 30,858 | 2,665 |
| 2.93% (7.90% - (30 Day Average SOFR + 0.11%)), 11/25/2031(d)(g) | | 76,505 | 6,914 |
| 2.28% (7.25% - (30 Day Average SOFR + 0.11%)), 01/25/2032(d)(g) | | 56,599 | 5,252 |
| 2.98% (7.95% - (30 Day Average SOFR + 0.11%)), 01/25/2032 to 07/25/2032(d)(g) | | 79,504 | 6,106 |
| 3.13% (8.10% - (30 Day Average SOFR + 0.11%)), 02/25/2032 to 03/25/2032(d)(g) | | 8,250 | 501 |
| 1.00% (8.00% - (30 Day Average SOFR + 0.11%)), 04/25/2032(d)(g) | | 93,130 | 1,752 |
| 2.03% (7.00% - (30 Day Average SOFR + 0.11%)), 04/25/2032 to 09/25/2032(d)(g) | | 249,472 | 20,853 |
| 3.03% (8.00% - (30 Day Average SOFR + 0.11%)), 04/25/2032 to 12/25/2032(d)(g) | | 182,690 | 19,396 |
| 2.98% (8.00% - (30 Day Average SOFR + 0.11%)), 12/18/2032(d)(g) | | 113,835 | 10,023 |
| 3.08% (8.10% - (30 Day Average SOFR + 0.11%)), 12/18/2032(d)(g) | | 32,419 | 2,657 |
| 3.23% (8.20% - (30 Day Average SOFR + 0.11%)), 01/25/2033(d)(g) | | 178,653 | 17,365 |
| 3.28% (8.25% - (30 Day Average SOFR + 0.11%)), 02/25/2033 to 05/25/2033(d)(g) | | 119,238 | 16,941 |
| 2.58% (7.55% - (30 Day Average SOFR + 0.11%)), 10/25/2033(d)(g) | | 134,652 | 14,479 |
| 1.73% (6.70% - (30 Day Average SOFR + 0.11%)), 02/25/2035 to 05/25/2035(d)(g) | | 270,346 | 22,341 |
| 1.78% (6.75% - (30 Day Average SOFR + 0.11%)), 03/25/2035(d)(g) | | 47,749 | 2,290 |
| | Principal
Amount | Value |
| Collateralized Mortgage Obligations–(continued) |
| 1.63% (6.60% - (30 Day Average SOFR + 0.11%)), 05/25/2035(d)(g) | | $178,771 | $10,655 |
| 3.50%, 08/25/2035(g) | | 2,848,978 | 311,597 |
| 1.13% (6.10% - (30 Day Average SOFR + 0.11%)), 10/25/2035(d)(g) | | 153,362 | 12,969 |
| 1.61% (6.58% - (30 Day Average SOFR + 0.11%)), 06/25/2036(d)(g) | | 9,026 | 897 |
| 1.08% (6.05% - (30 Day Average SOFR + 0.11%)), 07/25/2038(d)(g) | | 69,221 | 2,292 |
| 1.58% (6.55% - (30 Day Average SOFR + 0.11%)), 10/25/2041(d)(g) | | 258,058 | 19,490 |
| 1.18% (6.15% - (30 Day Average SOFR + 0.11%)), 12/25/2042(d)(g) | | 712,650 | 74,376 |
| 0.93% (5.90% - (30 Day Average SOFR + 0.11%)), 09/25/2047(d)(g) | | 5,103,573 | 495,545 |
| Freddie Mac Multifamily Structured Pass-Through Ctfs., | | |
Series KC03, Class X1, IO,
0.43%, 11/25/2024(h) | | 32,359,265 | 3,440 |
Series K734, Class X1, IO,
0.63%, 02/25/2026(h) | | 31,146,415 | 172,791 |
Series K735, Class X1, IO,
0.96%, 05/25/2026(h) | | 32,867,102 | 337,782 |
Series K093, Class X1, IO,
0.94%, 05/25/2029(h) | | 26,537,310 | 914,396 |
| Freddie Mac REMICs, | | |
IO,
2.53% (7.65% - (30 Day Average SOFR + 0.11%)), 07/15/2026 to 03/15/2029(d)(g) | | 69,007 | 3,336 |
| 3.00%, 06/15/2027 to 12/15/2027(g) | | 1,418,481 | 36,146 |
| 2.50%, 05/15/2028(g) | | 369,751 | 10,196 |
| 2.58% (7.70% - (30 Day Average SOFR + 0.11%)), 03/15/2029(d)(g) | | 6,448 | 177 |
| 2.98% (8.10% - (30 Day Average SOFR + 0.11%)), 09/15/2029(d)(g) | | 4,002 | 244 |
| 2.63% (7.75% - (30 Day Average SOFR + 0.11%)), 01/15/2032(d)(g) | | 69,509 | 6,304 |
| 1.93% (7.05% - (30 Day Average SOFR + 0.11%)), 10/15/2033(d)(g) | | 163,312 | 10,139 |
| 1.58% (6.70% - (30 Day Average SOFR + 0.11%)), 01/15/2035(d)(g) | | 163,669 | 9,133 |
| 1.63% (6.75% - (30 Day Average SOFR + 0.11%)), 02/15/2035(d)(g) | | 112,886 | 6,405 |
| 1.60% (6.72% - (30 Day Average SOFR + 0.11%)), 05/15/2035(d)(g) | | 563,277 | 38,774 |
| 1.53% (6.65% - (30 Day Average SOFR + 0.11%)), 07/15/2035(d)(g) | | 325,287 | 31,682 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| Collateralized Mortgage Obligations–(continued) |
| 1.88% (7.00% - (30 Day Average SOFR + 0.11%)), 12/15/2037(d)(g) | | $61,079 | $6,079 |
| 0.88% (6.00% - (30 Day Average SOFR + 0.11%)), 04/15/2038(d)(g) | | 36,059 | 3,020 |
| 0.95% (6.07% - (30 Day Average SOFR + 0.11%)), 05/15/2038(d)(g) | | 853,511 | 74,067 |
| 1.13% (6.25% - (30 Day Average SOFR + 0.11%)), 12/15/2039(d)(g) | | 197,403 | 15,803 |
| 0.98% (6.10% - (30 Day Average SOFR + 0.11%)), 01/15/2044(d)(g) | | 753,390 | 68,068 |
| 4.00%, 03/15/2045(g) | | 98,693 | 1,375 |
| 6.50%, 02/15/2028 to 06/15/2032 | | 361,617 | 368,641 |
| 6.00%, 04/15/2029 | | 20,468 | 20,670 |
| 6.02% (30 Day Average SOFR + 1.01%), 07/15/2031(d) | | 26,674 | 26,847 |
| 7.00%, 03/15/2032 | | 105,056 | 108,937 |
| 3.50%, 05/15/2032 | | 85,310 | 82,890 |
| 6.12% (30 Day Average SOFR + 1.11%), 06/15/2032(d) | | 128,652 | 130,043 |
| 5.96% (24.75% - (3.67 x (30 Day Average SOFR + 0.11%))), 08/15/2035(d) | | 25,038 | 30,886 |
| 5.52% (30 Day Average SOFR + 0.51%), 09/15/2035(d) | | 64,451 | 63,829 |
| Freddie Mac STRIPS, | | |
IO,
7.00%, 04/01/2027(g) | | 25,087 | 1,381 |
| 3.00%, 12/15/2027(g) | | 536,024 | 19,047 |
| 3.15%, 12/15/2027(h) | | 153,241 | 4,778 |
| 6.50%, 02/01/2028(g) | | 3,520 | 246 |
| 7.50%, 12/15/2029(g) | | 13,084 | 1,533 |
| 6.00%, 12/15/2032(g) | | 40,855 | 4,359 |
PO,
0.00%, 06/01/2026(i) | | 1,770 | 1,719 |
| | | | 5,666,568 |
| Federal Home Loan Mortgage Corp. (FHLMC)–2.08% |
| 9.00%, 01/01/2025 to 05/01/2025 | | 29 | 29 |
| 6.50%, 07/01/2028 to 04/01/2034 | | 45,301 | 46,912 |
| 6.00%, 10/01/2029 to 08/01/2053 | | 24,767,518 | 25,153,311 |
| 7.00%, 10/01/2031 to 10/01/2037 | | 434,008 | 453,298 |
| 5.50%, 09/01/2039 to 08/01/2053 | | 34,350,892 | 34,210,440 |
| | | | 59,863,990 |
| | Principal
Amount | Value |
| Federal National Mortgage Association (FNMA)–1.40% |
| 6.50%, 12/01/2029 to 11/01/2031 | | $251,789 | $256,973 |
| 7.50%, 01/01/2033 to 08/01/2033 | | 277,789 | 285,192 |
| 7.00%, 04/01/2033 to 04/01/2034 | | 165,880 | 172,448 |
| 5.50%, 02/01/2035 to 09/01/2053 | | 32,102,688 | 32,025,435 |
| 4.00%, 05/01/2052 | | 8,035,503 | 7,498,661 |
| | | | 40,238,709 |
| Government National Mortgage Association (GNMA)–4.46% |
ARM,
4.63% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 07/20/2025 to 07/20/2027(d) | | 301 | 301 |
IO,
1.65% (6.55% - (1 mo. Term SOFR + 0.11%)), 04/16/2037(d)(g) | | 405,094 | 29,338 |
| 1.75% (6.65% - (1 mo. Term SOFR + 0.11%)), 04/16/2041(d)(g) | | 1,059,902 | 67,627 |
| 4.50%, 09/16/2047(g) | | 2,134,545 | 311,378 |
| 1.30% (6.20% - (1 mo. Term SOFR + 0.11%)), 10/16/2047(d)(g) | | 1,859,391 | 243,879 |
TBA,
2.50%, 11/01/2054(j) | | 69,445,000 | 58,838,177 |
| 4.50%, 11/01/2054(j) | | 39,787,000 | 37,980,034 |
| 5.50%, 11/01/2054(j) | | 30,947,000 | 30,778,899 |
| | | | 128,249,633 |
| Uniform Mortgage-Backed Securities–21.57% |
TBA,
2.50%, 11/01/2054(j) | | 88,454,220 | 73,188,722 |
| 3.00%, 11/01/2054(j) | | 113,007,852 | 97,302,140 |
| 3.50%, 11/01/2054(j) | | 62,188,641 | 55,603,056 |
| 4.00%, 11/01/2054(j) | | 60,357,842 | 55,769,905 |
| 4.50%, 11/01/2054(j) | | 73,662,202 | 69,939,415 |
| 5.00%, 11/01/2054(j) | | 130,498,192 | 126,816,439 |
| 5.50%, 11/01/2054(j) | | 114,609,388 | 113,538,395 |
| 6.00%, 11/01/2054(j) | | 28,377,180 | 28,562,512 |
| | | | 620,720,584 |
| Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $877,905,057) | 854,739,484 |
|
| Asset-Backed Securities–17.64% |
| AGL CLO 29 Ltd., Series 2024-29A, Class A1, 6.19% (3 mo. Term SOFR + 1.57%), 04/21/2037(b)(d) | | 9,655,000 | 9,720,529 |
| Alternative Loan Trust, | | |
| Series 2005-21CB, Class A7, 5.50%, 06/25/2035 | | 469,368 | 354,698 |
| Series 2005-29CB, Class A4, 5.00%, 07/25/2035 | | 227,653 | 125,405 |
| AMSR Trust, Series 2021-SFR3, Class B, 1.73%, 10/17/2038(b) | | 4,415,000 | 4,130,826 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
|
| Angel Oak Mortgage Trust, | | |
| Series 2020-1, Class A1, 2.16%, 12/25/2059(b)(k) | | $315,433 | $303,196 |
| Series 2020-3, Class A1, 1.69%, 04/25/2065(b)(k) | | 1,158,237 | 1,075,818 |
| Series 2021-3, Class A1, 1.07%, 05/25/2066(b)(k) | | 802,307 | 683,556 |
| Series 2021-7, Class A1, 1.98%, 10/25/2066(b)(k) | | 2,163,558 | 1,837,036 |
| Series 2022-1, Class A1, 2.88%, 12/25/2066(b)(k) | | 3,849,701 | 3,528,638 |
| Series 2023-6, Class A1, 6.50%, 12/25/2067(b)(k) | | 1,420,562 | 1,434,969 |
| Series 2024-10, Class A1, 5.35%, 10/25/2069(b) | | 5,369,000 | 5,346,866 |
| Series 2024-2, Class A1, 5.99%, 01/25/2069(b)(k) | | 5,058,727 | 5,086,292 |
| Apidos CLO XII, Series 2013-12A, Class ARR, 5.74% (3 mo. Term SOFR + 1.08%), 04/15/2031(b)(d) | | 4,208,569 | 4,217,647 |
| Apidos CLO XXV, Series 2016-25A, Class A1R2, 5.77% (3 mo. Term SOFR + 1.15%), 10/20/2031(b)(d) | | 4,019,286 | 4,025,568 |
| Avis Budget Rental Car Funding (AESOP) LLC, | | |
| Series 2022-1A, Class A, 3.83%, 08/21/2028(b) | | 6,614,000 | 6,440,361 |
| Series 2023-1A, Class A, 5.25%, 04/20/2029(b) | | 1,463,000 | 1,473,038 |
| Series 2023-4A, Class A, 5.49%, 06/20/2029(b) | | 5,238,000 | 5,330,926 |
| Bain Capital Credit CLO Ltd. (Cayman Islands), | | |
| Series 2021-1A, Class A, 5.95% (3 mo. Term SOFR + 1.32%), 04/18/2034(b)(d) | | 2,317,000 | 2,320,842 |
| Series 2022-1A, Class A1, 5.95% (3 mo. Term SOFR + 1.32%), 04/18/2035(b)(d) | | 2,354,000 | 2,356,582 |
| Banc of America Funding Trust, | | |
| Series 2007-1, Class 1A3, 6.00%, 01/25/2037 | | 151,665 | 126,837 |
| Series 2007-C, Class 1A4, 4.38%, 05/20/2036(k) | | 53,208 | 46,566 |
| Banc of America Mortgage Trust, Series 2007-1, Class 1A24, 6.00%, 03/25/2037 | | 179,930 | 149,442 |
| Bank, Series 2019-BNK16, Class XA, IO, 0.93%, 02/15/2052(h) | | 22,740,038 | 702,510 |
| Bank5, Series 2024-5YR10, Class A, 5.64%, 10/15/2057 | | 1,705,000 | 1,721,795 |
| Bayview MSR Opportunity Master Fund Trust, | | |
| Series 2021-4, Class A3, 3.00%, 10/25/2051(b)(k) | | 3,324,685 | 2,803,053 |
| Series 2021-4, Class A4, 2.50%, 10/25/2051(b)(k) | | 3,325,458 | 2,692,694 |
| Series 2021-4, Class A8, 2.50%, 10/25/2051(b)(k) | | 3,000,279 | 2,633,103 |
| Series 2021-5, Class A1, 3.00%, 11/25/2051(b)(k) | | 3,447,160 | 2,906,312 |
| Series 2021-5, Class A2, 2.50%, 11/25/2051(b)(k) | | 4,205,685 | 3,405,432 |
| | Principal
Amount | Value |
|
| Bear Stearns Adjustable Rate Mortgage Trust, | | |
| Series 2005-9, Class A1, 0.76% (1 yr. U.S. Treasury Yield Curve Rate + 2.30%), 10/25/2035(d) | | $113,190 | $106,267 |
| Series 2006-1, Class A1, 0.65% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(d) | | 294,940 | 277,984 |
| Benchmark Mortgage Trust, Series 2018-B1, Class XA, IO, 0.53%, 01/15/2051(h) | | 22,525,956 | 310,543 |
| BMO Mortgage Trust, Series 2024-5C5, Class AS, 6.36%, 02/15/2057(k) | | 1,400,000 | 1,455,905 |
| BRAVO Residential Funding Trust, Series 2021-NQM2, Class A1, 0.97%, 03/25/2060(b)(k) | | 533,143 | 512,665 |
| BX Commercial Mortgage Trust, | | |
| Series 2021-ACNT, Class A, 5.77% (1 mo. Term SOFR + 0.96%), 11/15/2038(b)(d) | | 1,934,175 | 1,927,402 |
| Series 2021-VOLT, Class A, 5.62% (1 mo. Term SOFR + 0.81%), 09/15/2036(b)(d) | | 4,080,000 | 4,059,077 |
| Series 2021-VOLT, Class B, 5.87% (1 mo. Term SOFR + 1.06%), 09/15/2036(b)(d) | | 3,595,000 | 3,568,178 |
| Series 2024-VLT5, Class A, 5.41%, 11/13/2046(b)(k) | | 3,530,000 | 3,633,663 |
| Series 2024-VLT5, Class B, 5.80%, 11/13/2046(b)(k) | | 2,495,000 | 2,577,123 |
| BX Trust, | | |
| Series 2022-CLS, Class A, 5.76%, 10/13/2027(b) | | 1,625,000 | 1,617,325 |
| Series 2022-LBA6, Class A, 5.79% (1 mo. Term SOFR + 1.00%), 01/15/2039(b)(d) | | 3,670,000 | 3,658,466 |
| Series 2022-LBA6, Class B, 6.09% (1 mo. Term SOFR + 1.30%), 01/15/2039(b)(d) | | 2,265,000 | 2,252,697 |
| Series 2022-LBA6, Class C, 6.39% (1 mo. Term SOFR + 1.60%), 01/15/2039(b)(d) | | 1,215,000 | 1,207,469 |
| Carlyle Global Market Strategies CLO Ltd. (Cayman Islands), | | |
| Series 2015-4A, Class A1RR, 5.84% (3 mo. Term SOFR + 1.22%), 07/20/2032(b)(d) | | 4,476,744 | 4,482,644 |
| Series 2015-5A, Class A1R3, 5.72% (3 mo. Term SOFR + 1.10%), 01/20/2032(b)(d) | | 2,339,482 | 2,341,257 |
| Carlyle US CLO Ltd., Series 2021-1A, Class A1, 6.06% (3 mo. Term SOFR + 1.40%), 04/15/2034(b)(d) | | 3,938,000 | 3,938,197 |
| CarMax Auto Owner Trust, | | |
| Series 2022-4, Class A4, 5.70%, 07/17/2028 | | 7,031,000 | 7,144,791 |
| Series 2024-1, Class A3, 4.92%, 10/16/2028 | | 5,840,000 | 5,868,219 |
| CD Mortgage Trust, Series 2017-CD6, Class XA, IO, 0.87%, 11/13/2050(h) | | 8,870,238 | 170,587 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
|
| Chase Home Lending Mortgage Trust, | | |
| Series 2019-ATR1, Class A15, 4.00%, 04/25/2049(b)(k) | | $58,612 | $54,972 |
| Series 2024-9, Class A4, 5.50%, 09/25/2055(b)(k) | | 6,145,000 | 6,123,588 |
| Series 2024-9, Class A6, 5.50%, 09/25/2055(b)(k) | | 1,160,000 | 1,156,929 |
| Chase Mortgage Finance Trust, Series 2005-A2, Class 1A3, 4.92%, 01/25/2036(k) | | 310,543 | 285,346 |
| CIFC Funding Ltd., Series 2016-1A, Class ARR, 6.62% (3 mo. Term SOFR + 1.34%), 10/21/2031(b)(d) | | 1,538,000 | 1,540,447 |
| Citigroup Commercial Mortgage Trust, Series 2017-C4, Class XA, IO, 0.98%, 10/12/2050(h) | | 23,480,879 | 534,904 |
| Citigroup Mortgage Loan Trust, Inc., | | |
| Series 2006-AR1, Class 1A1, 7.20% (1 yr. U.S. Treasury Yield Curve Rate + 2.40%), 10/25/2035(d) | | 496,783 | 487,832 |
| Series 2021-INV3, Class A3, 2.50%, 05/25/2051(b)(k) | | 3,317,105 | 2,685,930 |
| Series 2024-1, Class A3A, 6.00%, 07/25/2054(b)(k) | | 5,843,882 | 5,798,498 |
| COLT Mortgage Loan Trust, | | |
| Series 2021-5, Class A1, 1.73%, 11/26/2066(b)(k) | | 1,448,550 | 1,276,064 |
| Series 2022-1, Class A1, 2.28%, 12/27/2066(b)(k) | | 2,271,529 | 2,028,829 |
| Series 2022-2, Class A1, 2.99%, 02/25/2067(b)(k) | | 2,192,960 | 2,039,341 |
| Series 2022-3, Class A1, 3.90%, 02/25/2067(b)(k) | | 3,104,352 | 2,970,314 |
| COMM Mortgage Trust, Series 2014-UBS6, Class AM, 4.05%, 12/10/2047 | | 5,720,000 | 5,702,059 |
| Credit Suisse Mortgage Capital Trust, | | |
| Series 2021-NQM1, Class A1, 0.81%, 05/25/2065(b)(k) | | 482,641 | 429,370 |
| Series 2021-NQM2, Class A1, 1.18%, 02/25/2066(b)(k) | | 692,128 | 612,192 |
| Series 2022-ATH1, Class A1A, 2.87%, 01/25/2067(b)(k) | | 2,858,903 | 2,695,141 |
| Series 2022-ATH1, Class A1B, 3.35%, 01/25/2067(b)(k) | | 1,890,000 | 1,651,457 |
| Series 2022-ATH2, Class A1, 4.55%, 05/25/2067(b)(k) | | 3,135,605 | 3,099,970 |
| Cross Mortgage Trust, Series 2024-H2, Class A1, 6.09%, 04/25/2069(b)(k) | | 3,733,636 | 3,758,053 |
| CSAIL Commercial Mortgage Trust, Series 2020-C19, Class A3, 2.56%, 03/15/2053 | | 10,613,000 | 9,152,855 |
| CSMC Mortgage-Backed Trust, Series 2006-6, Class 1A4, 6.00%, 07/25/2036 | | 565,340 | 275,127 |
| DLLST LLC, Series 2024-1A, Class A3, 5.05%, 08/20/2027(b) | | 3,230,000 | 3,244,564 |
| Dryden 93 CLO Ltd., Series 2021-93A, Class A1A, 6.00% (3 mo. Term SOFR + 1.34%), 01/15/2034(b)(d) | | 1,078,634 | 1,080,293 |
| | Principal
Amount | Value |
|
| Ellington Financial Mortgage Trust, | | |
| Series 2020-1, Class A1, 2.01%, 05/25/2065(b)(k) | | $101,229 | $99,560 |
| Series 2021-1, Class A1, 0.80%, 02/25/2066(b)(k) | | 249,432 | 213,225 |
| Series 2022-1, Class A1, 2.21%, 01/25/2067(b)(k) | | 2,267,647 | 1,960,805 |
| Series 2022-3, Class A1, 5.00%, 08/25/2067(b)(k) | | 3,026,250 | 3,007,691 |
| Series 2024-INV2, Class A1, 5.04%, 10/25/2069(b)(k) | | 2,957,860 | 2,924,967 |
| Empower CLO Ltd., Series 2024-1A, Class A1, 6.23% (3 mo. Term SOFR + 1.60%), 04/25/2037(b)(d) | | 3,895,000 | 3,914,078 |
| Enterprise Fleet Financing LLC, | | |
| Series 2024-2, Class A2, 5.74%, 12/20/2026(b) | | 1,943,000 | 1,959,556 |
| Series 2024-2, Class A3, 5.61%, 04/20/2028(b) | | 970,000 | 989,133 |
| Series 2024-2, Class A4, 5.69%, 12/20/2030(b) | | 1,133,000 | 1,166,090 |
| Series 2024-4, Class A3, 4.56%, 11/20/2028(b) | | 2,160,000 | 2,151,883 |
| Extended Stay America Trust, Series 2021-ESH, Class B, 6.30% (1 mo. Term SOFR + 1.49%), 07/15/2038(b)(d) | | 1,537,723 | 1,539,153 |
| First Horizon Alternative Mortgage Securities Trust, Series 2005-FA8, Class 1A6, 5.50% (1 mo. Term SOFR + 0.76%), 11/25/2035(d) | | 338,874 | 139,369 |
| Flagstar Mortgage Trust, | | |
| Series 2021-11IN, Class A6, 3.70%, 11/25/2051(b)(k) | | 5,067,795 | 4,437,096 |
| Series 2021-8INV, Class A6, 2.50%, 09/25/2051(b)(k) | | 1,064,052 | 935,159 |
| Ford Credit Auto Owner Trust, Series 2024-A, Class A3, 5.09%, 12/15/2028 | | 9,250,000 | 9,350,455 |
| FREMF Mortgage Trust, | | |
| Series 2015-K44, Class B, 3.72%, 01/25/2048(b)(k) | | 1,175,000 | 1,167,706 |
| Series 2017-K62, Class B, 3.88%, 01/25/2050(b)(k) | | 1,040,000 | 1,015,375 |
| Frontier Issuer LLC, Series 2023-1, Class A2, 6.60%, 08/20/2053(b) | | 4,952,710 | 5,052,665 |
| GoldenTree Loan Management US CLO 5 Ltd., Series 2019-5A, Class ARR, 5.69% (3 mo. Term SOFR + 1.07%), 10/20/2032(b)(d) | | 2,190,000 | 2,191,734 |
| GoldenTree Loan Management US Clo 8 Ltd., Series 2020-8A, Class ARR, 5.75% (3 mo. Term SOFR + 1.15%), 10/20/2034(b)(d) | | 3,323,000 | 3,326,077 |
| Golub Capital Partners CLO 40(B) Ltd., Series 2019-40A, Class AR, 5.98% (3 mo. Term SOFR + 1.35%), 01/25/2032(b)(d) | | 3,615,204 | 3,621,137 |
| GS Mortgage Securities Trust, Series 2020-GC47, Class A5, 2.38%, 05/12/2053 | | 3,780,000 | 3,268,756 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
|
| GS Mortgage-Backed Securities Trust, Series 2021-INV1, Class A6, 2.50%, 12/25/2051(b)(k) | | $2,706,805 | $2,374,271 |
| GSR Mortgage Loan Trust, Series 2005-AR4, Class 6A1, 5.27%, 07/25/2035(k) | | 35,515 | 32,343 |
| Hertz Vehicle Financing III L.P., | | |
| Series 2021-2A, Class A, 1.68%, 12/27/2027(b) | | 1,322,000 | 1,239,198 |
| Series 2021-2A, Class B, 2.12%, 12/27/2027(b) | | 705,000 | 657,824 |
| Hertz Vehicle Financing LLC, Series 2021-1A, Class B, 1.56%, 12/26/2025(b) | | 144,000 | 143,287 |
| HPEFS Equipment Trust, Series 2023-2A, Class A2, 6.04%, 01/21/2031(b) | | 1,055,786 | 1,060,114 |
| Invitation Homes Trust, Series 2024-SFR1, Class A, 4.00%, 09/17/2041(b) | | 1,876,785 | 1,789,748 |
| IP Lending VII Ltd., Series 2022-7A, Class SNR, 8.00%, 10/11/2027(b)(f) | | 5,493,000 | 5,493,000 |
| JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-LC11, Class AS, 3.22%, 04/15/2046 | | 435,200 | 398,723 |
| JP Morgan Mortgage Trust, | | |
| Series 2007-A1, Class 5A1, 5.04%, 07/25/2035(k) | | 144,236 | 144,787 |
| Series 2021-LTV2, Class A1, 2.52%, 05/25/2052(b)(k) | | 3,759,298 | 3,064,688 |
| Series 2024-8, Class A3, 5.50%, 01/25/2055(b)(k) | | 1,508,039 | 1,484,038 |
| Series 2024-VIS1, Class A1, 5.99%, 07/25/2064(b)(k) | | 4,871,361 | 4,902,548 |
| JPMBB Commercial Mortgage Securities Trust, | | |
| Series 2014-C25, Class AS, 4.07%, 11/15/2047 | | 6,036,000 | 5,762,752 |
| Series 2015-C27, Class XA, IO, 1.09%, 02/15/2048(h) | | 24,021,303 | 240 |
| Series 2015-C28, Class AS, 3.53%, 10/15/2048 | | 3,400,000 | 3,357,275 |
| KKR CLO 15 Ltd., Series 15, Class A1R2, 5.73% (3 mo. Term SOFR + 1.10%), 01/18/2032(b)(d) | | 5,099,838 | 5,102,092 |
| KKR CLO 27 Ltd., Series 27A, Class AR, 5.94% (3 mo. Term SOFR + 1.28%), 10/15/2032(b)(d) | | 3,083,000 | 3,084,705 |
| KKR Financial CLO Ltd., Series 2013-1A, Class A1R2, 5.76% (3 mo. Term SOFR + 1.10%), 04/15/2029(b)(d) | | 3,014,089 | 3,017,073 |
| Life Mortgage Trust, | | |
| Series 2021-BMR, Class A, 5.62% (1 mo. Term SOFR + 0.81%), 03/15/2038(b)(d) | | 1,820,243 | 1,794,077 |
| Series 2021-BMR, Class B, 5.80% (1 mo. Term SOFR + 0.99%), 03/15/2038(b)(d) | | 2,962,356 | 2,914,501 |
| Series 2021-BMR, Class C, 6.02% (1 mo. Term SOFR + 1.21%), 03/15/2038(b)(d) | | 1,245,221 | 1,223,662 |
| | Principal
Amount | Value |
|
| Madison Park Funding XLVIII Ltd., Series 2021-48A, Class A, 6.03% (3 mo. Term SOFR + 1.41%), 04/19/2033(b)(d) | | $10,362,823 | $10,390,709 |
| Madison Park Funding XXIX Ltd., Series 2018-29A, Class AR, 5.81% (3 mo. Term SOFR + 1.18%), 10/18/2030(b)(d) | | 7,568,103 | 7,581,870 |
| Madison Park Funding XXXIII Ltd., Series 2019-33A, Class AR, 5.95% (3 mo. Term SOFR + 1.29%), 10/15/2032(b)(d) | | 3,717,000 | 3,722,364 |
| Mello Mortgage Capital Acceptance Trust, | | |
| Series 2021-INV2, Class A4, 2.50%, 08/25/2051(b)(k) | | 2,094,942 | 1,835,840 |
| Series 2021-INV3, Class A4, 2.50%, 10/25/2051(b)(k) | | 2,068,564 | 1,808,657 |
| MFA Trust, Series 2021-INV2, Class A1, 1.91%, 11/25/2056(b)(k) | | 2,605,107 | 2,274,076 |
| MHP Commercial Mortgage Trust, | | |
| Series 2021-STOR, Class A, 5.62% (1 mo. Term SOFR + 0.81%), 07/15/2038(b)(d) | | 1,945,000 | 1,934,370 |
| Series 2021-STOR, Class B, 5.82% (1 mo. Term SOFR + 1.01%), 07/15/2038(b)(d) | | 1,460,000 | 1,448,128 |
| Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class AS, 3.83%, 12/15/2047 | | 5,035,000 | 5,019,811 |
| Morgan Stanley Capital I Trust, Series 2017-HR2, Class XA, IO, 0.85%, 12/15/2050(h) | | 10,479,074 | 233,558 |
| Morgan Stanley Residential Mortgage Loan Trust, Series 2024-3, Class A1, 6.00%, 07/25/2054(b)(k) | | 4,416,980 | 4,391,070 |
| Neuberger Berman Loan Advisers CLO 40 Ltd., Series 2021-40A, Class A, 5.97% (3 mo. Term SOFR + 1.32%), 04/16/2033(b)(d) | | 3,347,828 | 3,356,345 |
| Neuberger Berman Loan Advisers CLO 49 Ltd., Series 2022-49A, Class AR, 5.78% (3 mo. Term SOFR + 1.15%), 07/25/2035(b)(d) | | 5,387,000 | 5,391,649 |
| New Residential Mortgage Loan Trust, Series 2022-NQM2, Class A1, 3.08%, 03/27/2062(b)(k) | | 2,089,481 | 1,933,124 |
| OBX Trust, | | |
| Series 2021-NQM4, Class A1, 1.96%, 10/25/2061(b)(k) | | 3,238,653 | 2,711,327 |
| Series 2022-NQM1, Class A1, 2.31%, 11/25/2061(b)(k) | | 2,732,905 | 2,414,945 |
| Series 2022-NQM2, Class A1B, 3.38%, 01/25/2062(b)(k) | | 2,305,000 | 2,038,652 |
| Series 2022-NQM8, Class A1, 6.10%, 09/25/2062(b)(k) | | 4,209,977 | 4,214,374 |
| Series 2024-NQM14, Class A1, 4.94%, 09/25/2064(b)(k) | | 3,764,926 | 3,723,732 |
| Oceanview Mortgage Trust, Series 2021-3, Class A5, 2.50%, 07/25/2051(b)(k) | | 2,365,542 | 2,079,183 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
|
| OCP CLO Ltd. (Cayman Islands), | | |
| Series 2014-6A, Class A1R2, 5.80% (3 mo. Term SOFR + 1.15%), 10/17/2030(b)(d) | | $3,821,711 | $3,822,896 |
| Series 2017-13A, Class A1AR, 5.88% (3 mo. Term SOFR + 1.22%), 07/15/2030(b)(d) | | 2,151,183 | 2,154,106 |
| Series 2020-8RA, Class A1, 6.13% (3 mo. Term SOFR + 1.48%), 01/17/2032(b)(d) | | 5,495,647 | 5,495,922 |
| Series 2020-8RA, Class AR, 0.00% (3 mo. Term SOFR + 1.25%), 10/17/2036(b)(d)(i) | | 10,099,000 | 10,108,332 |
| PRKCM Trust, Series 2023-AFC4, Class A1, 7.23%, 11/25/2058(b)(k) | | 4,838,978 | 4,924,937 |
| Progress Residential Trust, | | |
| Series 2021-SFR10, Class A, 2.39%, 12/17/2040(b) | | 2,247,906 | 2,031,472 |
| Series 2022-SFR5, Class A, 4.45%, 06/17/2039(b) | | 3,132,365 | 3,097,022 |
| Qdoba Funding LLC, Series 2023-1A, Class A2, 8.50%, 09/14/2053(b) | | 5,742,607 | 6,045,790 |
| Regatta XIII Funding Ltd., Series 2018-2A, Class A1R, 5.76% (3 mo. Term SOFR + 1.10%), 07/15/2031(b)(d) | | 4,388,232 | 4,392,862 |
| Residential Accredit Loans, Inc. Trust, | | |
| Series 2006-QS13, Class 1A8, 6.00%, 09/25/2036 | | 40,370 | 31,841 |
| Series 2007-QS6, Class A28, 5.75%, 04/25/2037 | | 220,011 | 174,951 |
| Residential Mortgage Loan Trust, Series 2020-1, Class A1, 2.38%, 01/26/2060(b)(k) | | 190,511 | 186,526 |
| RUN Trust, Series 2022-NQM1, Class A1, 4.00%, 03/25/2067(b) | | 1,809,806 | 1,757,400 |
| SG Residential Mortgage Trust, | | |
| Series 2022-1, Class A1, 3.17%, 03/27/2062(b)(k) | | 3,882,892 | 3,570,890 |
| Series 2022-1, Class A2, 3.58%, 03/27/2062(b)(k) | | 1,637,965 | 1,479,317 |
| Shackleton CLO Ltd., Series 2015-7RA, Class ARR, 5.76% (3 mo. Term SOFR + 1.10%), 07/15/2031(b)(d) | | 2,572,000 | 2,578,512 |
| Sonic Capital LLC, | | |
| Series 2021-1A, Class A2I, 2.19%, 08/20/2051(b) | | 1,802,650 | 1,596,075 |
| Series 2021-1A, Class A2II, 2.64%, 08/20/2051(b) | | 1,763,883 | 1,448,431 |
| STAR Trust, Series 2021-1, Class A1, 1.22%, 05/25/2065(b)(k) | | 1,304,084 | 1,208,850 |
| Starwood Mortgage Residential Trust, | | |
| Series 2020-1, Class A1, 2.28%, 02/25/2050(b)(k) | | 102,655 | 97,795 |
| Series 2021-6, Class A1, 1.92%, 11/25/2066(b)(k) | | 3,910,230 | 3,377,130 |
| Series 2022-1, Class A1, 2.45%, 12/25/2066(b)(k) | | 2,879,193 | 2,520,404 |
| | Principal
Amount | Value |
|
| Subway Funding LLC, | | |
| Series 2024-1A, Class A23, 6.51%, 07/30/2054(b) | | $3,915,188 | $3,986,314 |
| Series 2024-1A, Class A2I, 6.03%, 07/30/2054(b) | | 4,297,230 | 4,337,789 |
| Series 2024-1A, Class A2I, 6.27%, 07/30/2054(b) | | 4,261,320 | 4,317,909 |
| Series 2024-3A, Class A23, 5.91%, 07/30/2054(b) | | 4,305,000 | 4,218,948 |
| Series 2024-3A, Class A2I, 5.25%, 07/30/2054(b) | | 3,980,000 | 3,918,424 |
| Series 2024-3A, Class A2I, 5.57%, 07/30/2054(b) | | 4,080,000 | 3,997,632 |
| Symphony CLO XVI Ltd., Series 2015-16A, Class ARR, 5.86% (3 mo. Term SOFR + 1.20%), 10/15/2031(b)(d) | | 3,149,506 | 3,154,256 |
| Symphony CLO XX Ltd., Series 2018-20A, Class AR2, 5.75% (3 mo. Term SOFR + 1.10%), 01/16/2032(b)(d) | | 4,998,334 | 5,001,583 |
| Symphony CLO XXII Ltd., Series 2020-22A, Class A1AR, 5.81% (3 mo. Term SOFR + 1.18%), 04/18/2033(b)(d) | | 3,189,000 | 3,189,985 |
| Synchrony Card Funding LLC, Series 2024-A2, Class A, 4.93%, 07/15/2030 | | 2,805,000 | 2,829,463 |
| Textainer Marine Containers VII Ltd., Series 2021-2A, Class A, 2.23%, 04/20/2046(b) | | 3,030,480 | 2,756,886 |
| Tricon American Homes Trust, Series 2020-SFR2, Class A, 1.48%, 11/17/2039(b) | | 3,743,012 | 3,417,569 |
| UBS Commercial Mortgage Trust, Series 2017-C5, Class XA, IO, 1.06%, 11/15/2050(h) | | 13,641,603 | 301,524 |
| Verus Securitization Trust, | | |
| Series 2020-1, Class A1, 3.42%, 01/25/2060(b)(k) | | 481,952 | 469,695 |
| Series 2020-1, Class A2, 3.64%, 01/25/2060(b)(k) | | 637,093 | 621,577 |
| Series 2021-1, Class A1B, 1.32%, 01/25/2066(b)(k) | | 630,687 | 561,871 |
| Series 2021-7, Class A1, 1.83%, 10/25/2066(b)(k) | | 3,171,661 | 2,801,594 |
| Series 2021-R1, Class A1, 0.82%, 10/25/2063(b)(k) | | 714,821 | 672,392 |
| Series 2022-1, Class A1, 2.72%, 01/25/2067(b)(k) | | 2,202,267 | 2,008,661 |
| Series 2022-3, Class A1, 4.13%, 02/25/2067(b)(k) | | 2,551,516 | 2,411,666 |
| Series 2022-7, Class A1, 5.15%, 07/25/2067(b)(k) | | 1,123,928 | 1,118,245 |
| Series 2022-INV2, Class A1, 6.79%, 10/25/2067(b)(k) | | 1,483,289 | 1,493,988 |
| Series 2024-7, Class A1, 5.10%, 09/25/2069(b)(k) | | 2,930,105 | 2,910,512 |
| Visio Trust, Series 2020-1R, Class A1, 1.31%, 11/25/2055(b) | | 501,809 | 475,740 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
|
| WaMu Mortgage Pass-Through Ctfs. Trust, | | |
| Series 2003-AR10, Class A7, 6.57%, 10/25/2033(k) | | $149,757 | $142,609 |
| Series 2005-AR14, Class 1A4, 4.92%, 12/25/2035(k) | | 243,111 | 222,715 |
| Series 2005-AR16, Class 1A1, 4.79%, 12/25/2035(k) | | 229,244 | 207,058 |
| Wells Fargo Commercial Mortgage Trust, Series 2017-C42, Class XA, IO, 0.86%, 12/15/2050(h) | | 17,198,652 | 377,963 |
| WF Card Issuance Trust, Series 2024-A1, Class A, 4.94%, 02/15/2029 | | 7,253,000 | 7,323,678 |
| WFRBS Commercial Mortgage Trust, | | |
| Series 2013-C14, Class AS, 3.49%, 06/15/2046 | | 399,351 | 386,505 |
| Series 2014-C25, Class AS, 3.98%, 11/15/2047 | | 5,225,000 | 5,208,512 |
| Zaxby’s Funding LLC, | | |
| Series 2021-1A, Class A2, 3.24%, 07/30/2051(b) | | 5,664,713 | 5,153,220 |
| Series 2024-1A, Class A2I, 6.59%, 04/30/2054(b) | | 2,583,525 | 2,635,318 |
| Ziply Fiber Issuer LLC, Series 2024-1A, Class A2, 6.64%, 04/20/2054(b) | | 3,920,000 | 3,999,781 |
| Total Asset-Backed Securities (Cost $528,285,963) | 507,484,514 |
| U.S. Treasury Securities–14.57% |
| U.S. Treasury Bonds–6.21% |
| 4.13%, 08/15/2044 | | 42,020,500 | 39,466,441 |
| 4.63%, 05/15/2054 | | 136,013,700 | 139,222,773 |
| | | | 178,689,214 |
| U.S. Treasury Notes–8.36% |
| 3.50%, 09/30/2026 | | 111,436,200 | 110,086,777 |
| 3.88%, 10/15/2027 | | 16,255,200 | 16,144,080 |
| 3.50%, 09/30/2029 | | 76,550,400 | 74,355,556 |
| 3.63%, 09/30/2031 | | 10,051,300 | 9,694,008 |
| 3.88%, 08/15/2034 | | 31,295,200 | 30,282,996 |
| | | | 240,563,417 |
| Total U.S. Treasury Securities (Cost $430,341,830) | 419,252,631 |
| | Shares | |
| Preferred Stocks–0.39% |
| Diversified Financial Services–0.20% |
| Apollo Global Management, Inc., 7.63%, Pfd.(c) | 215,375 | 5,815,125 |
| Regional Banks–0.19% |
| M&T Bank Corp., 7.50%, Series J, Pfd. | 198,205 | 5,414,961 |
| Total Preferred Stocks (Cost $10,339,500) | 11,230,086 |
| | Principal
Amount | Value |
| Agency Credit Risk Transfer Notes–0.28% |
| Fannie Mae Connecticut Avenue Securities, | | |
| Series 2022-R03, Class 1M1, 6.96% (30 Day Average SOFR + 2.10%), 03/25/2042(b)(d) | | $2,564,601 | $2,606,311 |
| Series 2022-R04, Class 1M1, 6.86% (30 Day Average SOFR + 2.00%), 03/25/2042(b)(d) | | 1,270,300 | 1,286,610 |
| Series 2023-R02, Class 1M1, 7.16% (30 Day Average SOFR + 2.30%), 01/25/2043(b)(d) | | 1,055,866 | 1,082,109 |
| Freddie Mac, | | |
| Series 2022-DNA3, Class M1A, STACR®, 6.86% (30 Day Average SOFR + 2.00%), 04/25/2042(b)(d) | | 1,731,711 | 1,751,732 |
| Series 2022-DNA6, Class M1, STACR®, 7.01% (30 Day Average SOFR + 2.15%), 09/25/2042(b)(d) | | 505,141 | 510,308 |
| Series 2023-DNA1, Class M1, STACR®, 6.96% (30 Day Average SOFR + 2.10%), 03/25/2043(b)(d) | | 855,219 | 864,341 |
| Total Agency Credit Risk Transfer Notes (Cost $7,982,838) | 8,101,411 |
|
| Municipal Obligations–0.26% |
| New Jersey Transportation Trust Fund Authority, Series 2024 BB, Ref. RB, 5.09%, 06/15/2025 | | 3,580,000 | 3,592,075 |
| Texas (State of) Transportation Commission (Central Texas Turnpike System), Series 2020 C, Ref. RB, 3.03%, 08/15/2041 | | 4,965,000 | 3,752,794 |
| Total Municipal Obligations (Cost $8,545,000) | 7,344,869 |
| | Shares | |
| Common Stocks & Other Equity Interests–0.00% |
| Agricultural Products & Services–0.00% |
| Locus Agriculture Solutions, Inc., Wts., expiring 12/31/2032 (Cost $0)(f)(l) | 28 | 0 |
| Money Market Funds–20.04% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(m)(n) | 202,470,270 | 202,470,270 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(m)(n) | 373,925,183 | 373,925,183 |
| Total Money Market Funds (Cost $576,395,453) | 576,395,453 |
| TOTAL INVESTMENTS IN SECURITIES–125.95% (Cost $3,673,604,586) | 3,623,374,109 |
| OTHER ASSETS LESS LIABILITIES—(25.95)% | (746,472,232) |
| NET ASSETS–100.00% | $2,876,901,877 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Investment Abbreviations:
| ARM | – Adjustable Rate Mortgage |
| Ctfs. | – Certificates |
| IO | – Interest Only |
| Pfd. | – Preferred |
| PO | – Principal Only |
| RB | – Revenue Bonds |
| Ref. | – Refunding |
| REIT | – Real Estate Investment Trust |
| REMICs | – Real Estate Mortgage Investment Conduits |
| SOFR | – Secured Overnight Financing Rate |
| STACR® | – Structured Agency Credit Risk |
| STRIPS | – Separately Traded Registered Interest and Principal Security |
| TBA | – To Be Announced |
| Wts. | – Warrants |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $799,872,129, which represented 27.80% of the Fund’s Net Assets. |
| (c) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
| (d) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2024. |
| (e) | Perpetual bond with no specified maturity date. |
| (f) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
| (g) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. |
| (h) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on October 31, 2024. |
| (i) | Zero coupon bond issued at a discount. |
| (j) | Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1K. |
| (k) | Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on October 31, 2024. |
| (l) | Non-income producing security. |
| (m) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $126,743,663 | $539,183,216 | $(463,456,609) | $- | $- | $202,470,270 | $7,301,497 |
| Invesco Liquid Assets Portfolio, Institutional Class | 88,438,077 | 297,070,690 | (385,510,846) | (22,475) | 24,554 | - | 3,393,319 |
| Invesco Treasury Portfolio, Institutional Class | 144,849,901 | 814,972,135 | (585,896,853) | - | - | 373,925,183 | 10,079,073 |
| Total | $360,031,641 | $1,651,226,041 | $(1,434,864,308) | $(22,475) | $24,554 | $576,395,453 | $20,773,889 |
| (n) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Interest Rate Risk |
| U.S. Treasury 2 Year Notes | 103 | December-2024 | $21,212,367 | $(203,783) | $(203,783) |
| U.S. Treasury 10 Year Notes | 1,847 | December-2024 | 204,035,781 | (6,202,318) | (6,202,318) |
| U.S. Treasury Long Bonds | 709 | December-2024 | 83,639,844 | (5,639,283) | (5,639,283) |
| U.S. Treasury Ultra Bonds | 141 | December-2024 | 17,713,125 | (48,185) | (48,185) |
| Subtotal—Long Futures Contracts | (12,093,569) | (12,093,569) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| Open Futures Contracts(a)—(continued) |
| Short Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Interest Rate Risk |
| U.S. Treasury 5 Year Notes | 36 | December-2024 | $(3,860,437) | $(94) | $(94) |
| U.S. Treasury 10 Year Ultra Notes | 2,001 | December-2024 | (227,613,750) | 8,640,627 | 8,640,627 |
| Subtotal—Short Futures Contracts | 8,640,533 | 8,640,533 |
| Total Futures Contracts | $(3,453,036) | $(3,453,036) |
| (a) | Futures contracts collateralized by $4,179,054 cash held with Merrill Lynch International, the futures commission merchant. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $3,097,209,133) | $3,046,978,656 |
| Investments in affiliated money market funds, at value (Cost $576,395,453) | 576,395,453 |
| Other investments: | |
| Variation margin receivable — futures contracts | 1,946,102 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 4,179,054 |
| Cash collateral — TBA commitments | 17,966,006 |
| Cash | 5,386,599 |
| Receivable for: | |
| Investments sold | 50,081,870 |
| Fund shares sold | 2,019,114 |
| Dividends | 2,353,701 |
| Interest | 20,562,357 |
| Principal paydowns | 2,056 |
| Investment for trustee deferred compensation and retirement plans | 133,077 |
| Other assets | 62,340 |
| Total assets | 3,728,066,385 |
| Liabilities: | |
| Payable for: | |
| Investments purchased | 77,700,706 |
| TBA sales commitment | 768,126,119 |
| Dividends | 1,302,339 |
| Fund shares reacquired | 3,024,591 |
| Accrued fees to affiliates | 755,085 |
| Accrued trustees’ and officers’ fees and benefits | 1,932 |
| Accrued other operating expenses | 120,659 |
| Trustee deferred compensation and retirement plans | 133,077 |
| Total liabilities | 851,164,508 |
| Net assets applicable to shares outstanding | $2,876,901,877 |
| Net assets consist of: | |
| Shares of beneficial interest | $3,189,890,468 |
| Distributable earnings (loss) | (312,988,591) |
| | $2,876,901,877 |
| Net Assets: |
| Class A | $641,947,764 |
| Class C | $41,245,173 |
| Class R | $73,927,964 |
| Class Y | $919,798,873 |
| Class R5 | $8,311 |
| Class R6 | $1,199,973,792 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 113,381,962 |
| Class C | 7,279,187 |
| Class R | 13,060,742 |
| Class Y | 163,381,133 |
| Class R5 | 1,468 |
| Class R6 | 212,185,645 |
| Class A: | |
| Net asset value per share | $5.66 |
Maximum offering price per share
(Net asset value of $5.66 ÷ 95.75%) | $5.91 |
| Class C: | |
| Net asset value and offering price per share | $5.67 |
| Class R: | |
| Net asset value and offering price per share | $5.66 |
| Class Y: | |
| Net asset value and offering price per share | $5.63 |
| Class R5: | |
| Net asset value and offering price per share | $5.66 |
| Class R6: | |
| Net asset value and offering price per share | $5.66 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $105,373,087 |
| Dividends | 562,733 |
| Dividends from affiliated money market funds | 20,773,889 |
| Total investment income | 126,709,709 |
| Expenses: | |
| Advisory fees | 8,218,165 |
| Administrative services fees | 354,838 |
| Custodian fees | 63,369 |
| Distribution fees: | |
| Class A | 1,526,261 |
| Class C | 405,970 |
| Class R | 364,659 |
| Transfer agent fees — A, C, R and Y | 2,411,789 |
| Transfer agent fees — R5 | 7 |
| Transfer agent fees — R6 | 257,267 |
| Trustees’ and officers’ fees and benefits | 41,973 |
| Registration and filing fees | 132,625 |
| Reports to shareholders | 251,347 |
| Professional services fees | 111,303 |
| Other | 37,852 |
| Total expenses | 14,177,425 |
| Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (1,592,723) |
| Net expenses | 12,584,702 |
| Net investment income | 114,125,007 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain from: | |
| Unaffiliated investment securities | 64,313,280 |
| Affiliated investment securities | 24,554 |
| Futures contracts | 7,609,890 |
| | 71,947,724 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 64,338,667 |
| Affiliated investment securities | (22,475) |
| Futures contracts | (131,150) |
| | 64,185,042 |
| Net realized and unrealized gain | 136,132,766 |
| Net increase in net assets resulting from operations | $250,257,773 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $114,125,007 | $76,817,248 |
| Net realized gain (loss) | 71,947,724 | (141,649,969) |
| Change in net unrealized appreciation | 64,185,042 | 56,328,038 |
| Net increase (decrease) in net assets resulting from operations | 250,257,773 | (8,504,683) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (27,980,733) | (25,568,288) |
| Class C | (1,534,412) | (1,510,758) |
| Class R | (3,109,629) | (2,911,507) |
| Class Y | (40,902,740) | (34,931,809) |
| Class R5 | (576) | (633) |
| Class R6 | (41,359,598) | (14,567,696) |
| Total distributions from distributable earnings | (114,887,688) | (79,490,691) |
| Share transactions–net: | | |
| Class A | 36,524,956 | 24,468,291 |
| Class C | (915,476) | (499,568) |
| Class R | 4,050,992 | (176,921) |
| Class Y | (10,886,499) | 374,601,069 |
| Class R5 | (5,630) | — |
| Class R6 | 838,109,938 | 59,561,222 |
| Net increase in net assets resulting from share transactions | 866,878,281 | 457,954,093 |
| Net increase in net assets | 1,002,248,366 | 369,958,719 |
| Net assets: | | |
| Beginning of year | 1,874,653,511 | 1,504,694,792 |
| End of year | $2,876,901,877 | $1,874,653,511 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $5.30 | $0.25 | $0.36 | $0.61 | $(0.25) | $— | $(0.25) | $5.66 | 11.71% | $641,948 | 0.68% | 0.77% | 4.47% | 565% |
| Year ended 10/31/23 | 5.51 | 0.23 | (0.20) | 0.03 | (0.24) | — | (0.24) | 5.30 | 0.40 | 567,301 | 0.68 | 0.79 | 4.12 | 578 |
| Year ended 10/31/22 | 6.84 | 0.13 | (1.31) | (1.18) | (0.15) | — | (0.15) | 5.51 | (17.43) | 566,064 | 0.69 | 0.79 | 2.17 | 413 |
| Year ended 10/31/21 | 7.05 | 0.09 | (0.08) | 0.01 | (0.10) | (0.12) | (0.22) | 6.84 | 0.15 | 760,690 | 0.72 | 0.79 | 1.23 | 526 |
| Year ended 10/31/20 | 7.03 | 0.14 | 0.37 | 0.51 | (0.15) | (0.34) | (0.49) | 7.05 | 7.36(d) | 763,731 | 0.74(d) | 0.80(d) | 1.98(d) | 397 |
| Class C |
| Year ended 10/31/24 | 5.31 | 0.21 | 0.36 | 0.57 | (0.21) | — | (0.21) | 5.67 | 10.88 | 41,245 | 1.43 | 1.52 | 3.72 | 565 |
| Year ended 10/31/23 | 5.51 | 0.19 | (0.19) | - | (0.20) | — | (0.20) | 5.31 | (0.16) | 39,579 | 1.43 | 1.54 | 3.37 | 578 |
| Year ended 10/31/22 | 6.84 | 0.09 | (1.32) | (1.23) | (0.10) | — | (0.10) | 5.51 | (18.07) | 41,620 | 1.44 | 1.54 | 1.42 | 413 |
| Year ended 10/31/21 | 7.05 | 0.03 | (0.07) | (0.04) | (0.05) | (0.12) | (0.17) | 6.84 | (0.64) | 68,167 | 1.48 | 1.54 | 0.47 | 526 |
| Year ended 10/31/20 | 7.03 | 0.08 | 0.37 | 0.45 | (0.09) | (0.34) | (0.43) | 7.05 | 6.51 | 94,978 | 1.55 | 1.56 | 1.17 | 397 |
| Class R |
| Year ended 10/31/24 | 5.30 | 0.24 | 0.36 | 0.60 | (0.24) | — | (0.24) | 5.66 | 11.44 | 73,928 | 0.93 | 1.02 | 4.22 | 565 |
| Year ended 10/31/23 | 5.50 | 0.22 | (0.19) | 0.03 | (0.23) | — | (0.23) | 5.30 | 0.33 | 65,342 | 0.93 | 1.04 | 3.87 | 578 |
| Year ended 10/31/22 | 6.83 | 0.12 | (1.31) | (1.19) | (0.14) | — | (0.14) | 5.50 | (17.68) | 68,228 | 0.94 | 1.04 | 1.92 | 413 |
| Year ended 10/31/21 | 7.04 | 0.07 | (0.08) | (0.01) | (0.08) | (0.12) | (0.20) | 6.83 | (0.14) | 84,671 | 0.98 | 1.04 | 0.97 | 526 |
| Year ended 10/31/20 | 7.03 | 0.12 | 0.36 | 0.48 | (0.13) | (0.34) | (0.47) | 7.04 | 6.90 | 78,849 | 1.04 | 1.06 | 1.68 | 397 |
| Class Y |
| Year ended 10/31/24 | 5.27 | 0.26 | 0.37 | 0.63 | (0.27) | — | (0.27) | 5.63 | 12.03 | 919,799 | 0.43 | 0.52 | 4.72 | 565 |
| Year ended 10/31/23 | 5.47 | 0.24 | (0.19) | 0.05 | (0.25) | — | (0.25) | 5.27 | 0.82 | 873,415 | 0.43 | 0.54 | 4.37 | 578 |
| Year ended 10/31/22 | 6.79 | 0.15 | (1.30) | (1.15) | (0.17) | — | (0.17) | 5.47 | (17.21) | 544,605 | 0.44 | 0.54 | 2.42 | 413 |
| Year ended 10/31/21 | 7.00 | 0.10 | (0.07) | 0.03 | (0.12) | (0.12) | (0.24) | 6.79 | 0.43 | 721,456 | 0.43 | 0.54 | 1.52 | 526 |
| Year ended 10/31/20 | 6.99 | 0.16 | 0.36 | 0.52 | (0.17) | (0.34) | (0.51) | 7.00 | 7.56 | 622,504 | 0.44 | 0.56 | 2.28 | 397 |
| Class R5 |
| Year ended 10/31/24 | 5.30 | 0.27 | 0.36 | 0.63 | (0.27) | — | (0.27) | 5.66 | 12.00 | 8 | 0.41 | 0.43 | 4.74 | 565 |
| Year ended 10/31/23 | 5.50 | 0.25 | (0.19) | 0.06 | (0.26) | — | (0.26) | 5.30 | 0.84 | 13 | 0.43 | 0.45 | 4.37 | 578 |
| Year ended 10/31/22 | 6.84 | 0.15 | (1.32) | (1.17) | (0.17) | — | (0.17) | 5.50 | (17.36) | 14 | 0.44 | 0.45 | 2.42 | 413 |
| Year ended 10/31/21 | 7.05 | 0.11 | (0.08) | 0.03 | (0.12) | (0.12) | (0.24) | 6.84 | 0.46 | 17 | 0.41 | 0.43 | 1.54 | 526 |
| Year ended 10/31/20 | 7.03 | 0.16 | 0.37 | 0.53 | (0.17) | (0.34) | (0.51) | 7.05 | 7.71 | 17 | 0.43 | 0.44 | 2.29 | 397 |
| Class R6 |
| Year ended 10/31/24 | 5.30 | 0.27 | 0.36 | 0.63 | (0.27) | — | (0.27) | 5.66 | 12.04 | 1,199,974 | 0.38 | 0.40 | 4.77 | 565 |
| Year ended 10/31/23 | 5.50 | 0.25 | (0.19) | 0.06 | (0.26) | — | (0.26) | 5.30 | 0.87 | 329,003 | 0.39 | 0.41 | 4.41 | 578 |
| Year ended 10/31/22 | 6.83 | 0.15 | (1.31) | (1.16) | (0.17) | — | (0.17) | 5.50 | (17.22) | 284,165 | 0.40 | 0.41 | 2.46 | 413 |
| Year ended 10/31/21 | 7.04 | 0.11 | (0.08) | 0.03 | (0.12) | (0.12) | (0.24) | 6.83 | 0.48 | 311,703 | 0.38 | 0.40 | 1.57 | 526 |
| Year ended 10/31/20 | 7.02 | 0.17 | 0.36 | 0.53 | (0.17) | (0.34) | (0.51) | 7.04 | 7.76 | 263,690 | 0.38 | 0.39 | 2.34 | 397 |
| (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) | The total return, ratios of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the year ended October 31, 2020. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Core Bond Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or
other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on the relative value of settled shares. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
| J. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties ("Counterparties") to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes |
| | in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
| K. | Dollar Rolls and Forward Commitment Transactions - The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date. |
The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate.
Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement.
| L. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| M. | Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the risk that a borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund’s income. Mortgage- and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities at the time or price it desires.
Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate* |
| First $500 million | 0.400% |
| Next $500 million | 0.350% |
| Next $4 billion | 0.330% |
| Over $5 billion | 0.310% |
| * | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.33%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through February 28, 2025, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.70%, 1.45%, 0.95%, 0.45%, 0.45% and 0.45%, respectively of the Fund’s average daily net assets (the "expense limits"). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees.
The Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $410,798 and reimbursed class level expenses of $428,584, $29,669, $53,242, $625,829, $0 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the
Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $57,495 in front-end sales commissions from the sale of Class A shares and $3,710 and $2,380 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| U.S. Dollar Denominated Bonds & Notes | $— | $1,230,463,815 | $8,361,846 | $1,238,825,661 |
| U.S. Government Sponsored Agency Mortgage-Backed Securities | — | 854,739,484 | — | 854,739,484 |
| Asset-Backed Securities | — | 501,991,514 | 5,493,000 | 507,484,514 |
| U.S. Treasury Securities | — | 419,252,631 | — | 419,252,631 |
| Preferred Stocks | 11,230,086 | — | — | 11,230,086 |
| Agency Credit Risk Transfer Notes | — | 8,101,411 | — | 8,101,411 |
| Municipal Obligations | — | 7,344,869 | — | 7,344,869 |
| Common Stocks & Other Equity Interests | — | — | 0 | 0 |
| Money Market Funds | 576,395,453 | — | — | 576,395,453 |
| Total Investments in Securities | 587,625,539 | 3,021,893,724 | 13,854,846 | 3,623,374,109 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 8,640,627 | — | — | 8,640,627 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (12,093,663) | — | — | (12,093,663) |
| Total Other Investments | (3,453,036) | — | — | (3,453,036) |
| Total Investments | $584,172,503 | $3,021,893,724 | $13,854,846 | $3,619,921,073 |
| * | Unrealized appreciation (depreciation). |
NOTE 4—Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and
close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| | Value |
| Derivative Assets | Interest
Rate Risk |
| Unrealized appreciation on futures contracts —Exchange-Traded(a) | $8,640,627 |
| Derivatives not subject to master netting agreements | (8,640,627) |
| Total Derivative Assets subject to master netting agreements | $— |
| | Value |
| Derivative Liabilities | Interest
Rate Risk |
| Unrealized depreciation on futures contracts —Exchange-Traded(a) | $(12,093,663) |
| Derivatives not subject to master netting agreements | 12,093,663 |
| Total Derivative Liabilities subject to master netting agreements | $— |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Statement of Operations |
| | Interest
Rate Risk |
| Realized Gain: | |
| Futures contracts | $7,609,890 |
| Change in Net Unrealized Appreciation (Depreciation): | |
| Futures contracts | (131,150) |
| Total | $7,478,740 |
The table below summarizes the average notional value of derivatives held during the period.
| | Futures
Contracts |
| Average notional value | $411,691,576 |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $44,601.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $114,887,688 | $79,490,691 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $3,043,788 |
| Net unrealized appreciation (depreciation) — investments | (53,251,200) |
| Temporary book/tax differences | (123,447) |
| Capital loss carryforward | (262,657,732) |
| Shares of beneficial interest | 3,189,890,468 |
| Total net assets | $2,876,901,877 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and derivative instruments.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $152,747,250 | $109,910,482 | $262,657,732 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $2,660,972,421 and $2,173,347,928, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $28,339,551 |
| Aggregate unrealized (depreciation) of investments | (81,590,751) |
| Net unrealized appreciation (depreciation) of investments | $(53,251,200) |
Cost of investments for tax purposes is $3,673,172,273.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of paydowns, dollar rolls and amortization and accretion on debt securities, on October 31, 2024, undistributed net investment income was increased by $290,460 and undistributed net realized gain (loss) was decreased by $290,460. This reclassification had no effect on the net assets or the distributable earnings (loss) of the Fund.
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 24,930,232 | $141,224,419 | | 23,858,710 | $135,215,575 |
| Class C | 2,160,605 | 12,253,209 | | 2,527,833 | 14,352,927 |
| Class R | 3,987,237 | 22,441,345 | | 2,969,091 | 16,851,769 |
| Class Y | 93,528,922 | 526,025,194 | | 128,464,199 | 725,610,777 |
| Class R6 | 184,394,725 | 1,031,928,286 | | 23,603,319 | 133,682,141 |
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 4,473,984 | $25,284,329 | | 4,098,769 | $23,093,836 |
| Class C | 243,790 | 1,379,060 | | 242,389 | 1,367,305 |
| Class R | 545,821 | 3,084,225 | | 511,709 | 2,883,492 |
| Class Y | 5,063,477 | 28,462,763 | | 4,248,702 | 23,727,669 |
| Class R6 | 7,029,257 | 39,701,570 | | 2,043,660 | 11,490,224 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 949,609 | 5,348,113 | | 859,879 | 4,863,663 |
| Class C | (948,992) | (5,348,113) | | (858,977) | (4,863,663) |
| Reacquired: | | | | | |
| Class A | (23,963,676) | (135,331,905) | | (24,647,497) | (138,704,783) |
| Class C | (1,634,033) | (9,199,632) | | (2,006,586) | (11,356,137) |
| Class R | (3,799,507) | (21,474,578) | | (3,551,007) | (19,912,182) |
| Class Y | (100,918,142) | (565,374,456) | | (66,547,600) | (374,737,377) |
| Class R5 | (1,004) | (5,630) | | - | - |
| Class R6 | (41,327,092) | (233,519,918) | | (15,212,923) | (85,611,143) |
| Net increase in share activity | 154,715,213 | $866,878,281 | | 80,603,670 | $457,954,093 |
| (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. |
| | In addition, 24% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Core Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Core Bond Fund (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent, portfolio company investee and brokers; when replies were not received from the portfolio company investee or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Core Bond Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis, and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Bloomberg U.S. Aggregate Bond Index (Index). The Board noted that performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one year period, the fifth quintile for the three year period and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was reasonably comparable to the performance of the Index for the one year period, below the performance of the Index for the three year period and above the
performance of the Index for the five year period. The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board considered that the Fund’s exposure to US dollar-denominated emerging market corporate debt detracted from the Fund’s relative performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and below, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees
payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
| E. | Profitability and Financial Resources |
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including
information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such
securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Qualified Dividend Income* | 2.38% |
| Corporate Dividends Received Deduction* | 1.70% |
| U.S. Treasury Obligations* | 16.84% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 80.61% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-TRB-NCSR |
Annual Financial Statements and Other InformationOctober 31, 2024
Invesco Developing Markets Fund
A: ODMAX ■ C: ODVCX ■ R: ODVNX ■ Y: ODVYX ■ R5: DVMFX ■ R6: ODVIX
| Consolidated Schedule of Investments |
| Consolidated Financial Statements |
| Consolidated Financial Highlights |
| Notes to Consolidated Financial Statements |
| Report of Independent Registered Public Accounting Firm |
| Approval of Investment Advisory and Sub-Advisory Contracts |
| |
| Other Information Required in Form N-CSR (Items 8-11) |
Consolidated Schedule of Investments
| | |
Common Stocks & Other Equity Interests–98.16% |
|
Banco BTG Pactual S.A., Series CPO | | |
Itau Unibanco Holding S.A., Preference Shares | | |
| | |
NU Holdings Ltd., Class A(a) | | |
| | |
| | |
| | |
| | | |
|
| | |
| | |
| | | |
|
Airtac International Group | | |
Alibaba Group Holding Ltd., ADR | | |
Contemporary Amperex Technology Co. Ltd., A Shares | | |
| | |
H World Group Ltd., ADR(b) | | |
| | |
| | |
New Horizon Health Ltd.(a)(b)(c)(d) | | |
PDD Holdings, Inc., ADR(a) | | |
| | |
| | |
ZTO Express (Cayman), Inc., ADR | | |
| | | |
|
| | |
| | |
| | | |
|
| | |
|
Adani Ports & Special Economic Zone Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Macrotech Developers Ltd.(c) | | |
| | |
| | |
| | |
Pine Labs Pvt. Ltd. (Acquired 09/09/2021; | | |
| | |
|
| | |
Tata Consultancy Services Ltd. | | |
| | | |
|
| | |
|
| | |
| | |
| | |
| | | |
|
Chugai Pharmaceutical Co. Ltd. | | |
| | |
| | | |
|
| | |
|
America Movil S.A.B. de C.V., ADR | | |
Fomento Economico Mexicano S.A.B. de C.V., Series CPO | | |
Grupo Aeroportuario del Sureste S.A.B. de C.V., Class B | | |
Grupo Mexico S.A.B. de C.V., Class B | | |
Wal-Mart de Mexico S.A.B. de C.V., Series V | | |
| | | |
|
| | |
|
| | |
|
| | |
| | |
| | | |
|
| | |
|
| | |
|
Sberbank of Russia PJSC(a)(d) | | |
|
| | |
|
| | |
| | |
Samsung Biologics Co. Ltd.(a)(c) | | |
Samsung Electronics Co. Ltd. | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
2
Invesco Developing Markets Fund
| | |
|
| | |
| | | |
|
Cie Financiere Richemont S.A. | | |
|
| | |
Hon Hai Precision Industry Co. Ltd. | | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
Voltronic Power Technology Corp. | | |
| | | |
|
| | |
BIM Birlesik Magazalar A.S. | | |
| | |
| | |
| | | |
United Arab Emirates–0.24% |
Americana Restaurants International PLC | | |
|
| | |
| | |
|
Legend Biotech Corp., ADR(a) | | |
Total Common Stocks & Other Equity Interests (Cost $11,891,747,472) | |
|
|
Abogen Therapeutics Ltd., Series C, Pfd. (Acquired 08/02/2021; | | |
|
Pine Labs Pvt. Ltd., Series K, Pfd. (Acquired 09/09/2021; | | |
Total Preferred Stocks (Cost $115,430,332) | |
|
Invesco Government & Agency Portfolio, Institutional Class, | | |
Invesco Treasury Portfolio, Institutional Class, 4.73%(b)(f) | | |
Total Money Market Funds (Cost $294,662,036) | |
TOTAL INVESTMENTS IN SECURITIES—100.32% (Cost $12,301,839,840) | |
OTHER ASSETS LESS LIABILITIES–(0.32)% | |
| |
Investment Abbreviations:
| – American Depositary Receipt |
| – Certificates of Ordinary Participation |
| |
Notes to Consolidated Schedule of Investments:
| Non-income producing security. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Invesco Liquid Assets Portfolio, Institutional Class | | | | | | | |
Invesco Treasury Portfolio, Institutional Class | | | | | | | |
Investments in Other Affiliates: | | | | | | | |
| | | | | | | |
| | | | | | | |
Yum China Holdings, Inc.** | | | | | | | |
ZTO Express (Cayman), Inc.** | | | | | | | |
| | | | | | | |
| As of October 31, 2023, this security was not considered as an affiliate of the Fund. |
| As of October 31, 2024, this security was no longer an affiliate of the Fund. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $1,201,338,772, which represented 6.45% of the Fund’s Net Assets. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
3
Invesco Developing Markets Fund
| Security valued using significant unobservable inputs (Level 3). See Note 3. |
| Restricted security. The aggregate value of these securities at October 31, 2024 was $176,739,701, which represented less than 1% of the Fund’s Net Assets. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
4
Invesco Developing Markets Fund
Consolidated Statement of Assets and Liabilities
| |
Investments in unaffiliated securities, at value
(Cost $11,612,841,792) | |
Investments in affiliates, at value
(Cost $688,998,048) | |
| |
Foreign currencies, at value (Cost $35,082,769) | |
| |
| |
| |
| |
Investment for trustee deferred compensation and retirement plans | |
| |
| |
| |
| |
| |
| |
Accrued fees to affiliates | |
Accrued trustees’ and officers’ fees and benefits | |
Accrued other operating expenses | |
Trustee deferred compensation and retirement plans | |
| |
Net assets applicable to shares outstanding | |
| |
Shares of beneficial interest | |
| |
| |
|
| |
| |
| |
| |
| |
| |
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |
| |
| |
| |
| |
| |
| |
Net asset value per share | |
Maximum offering price per share
(Net asset value of $40.70 ÷ 94.50%) | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5
Invesco Developing Markets Fund
Consolidated Statement of Operations
For the year ended October 31, 2024
| |
Dividends (net of foreign withholding taxes of $49,561,238) | |
Dividends from affiliates | |
Foreign withholding tax claims | |
| |
| |
| |
Administrative services fees | |
| |
| |
| |
| |
| |
Transfer agent fees — A, C, R and Y | |
| |
| |
Trustees’ and officers’ fees and benefits | |
Registration and filing fees | |
| |
Professional services fees | |
| |
| |
Less: Fees waived and/or expense offset arrangement(s) | |
| |
| |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Unaffiliated investment securities (net of foreign taxes of $119,830,042) | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
Change in net unrealized appreciation (depreciation) of: | |
Unaffiliated investment securities (net of foreign taxes of $14,352,110) | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6
Invesco Developing Markets Fund
Consolidated Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | |
| | |
| | |
| | |
Change in net unrealized appreciation | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders from distributable earnings: | | |
| | |
| | |
| | |
| | |
| | |
| | |
Total distributions from distributable earnings | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Net increase (decrease) in net assets resulting from share transactions | | |
Net increase (decrease) in net assets | | |
| | |
| | |
| | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7
Invesco Developing Markets Fund
Consolidated Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Net asset
value,
beginning
of period | | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | | Net asset
value, end
of period | | 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 | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Calculated using average shares outstanding. |
| 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. |
| Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2023, the portfolio turnover calculation excludes the value of securities purchased of $24,736,814 in connection with the acquisition of Invesco Emerging Markets Innovators Fund into the Fund. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8
Invesco Developing Markets Fund
Notes to Consolidated Financial Statements
NOTE 1—Significant Accounting Policies
Invesco Developing Markets Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the OFI Global China Fund, LLC (the “Subsidiary”), a private fund organized under Delaware law that is a wholly-owned subsidiary of the Fund. The Subsidiary may invest in companies established or operating in, or with significant exposure to, the People’s Republic of China or other developing markets countries. For operational efficiency and regulatory considerations, the Fund may gain access to such companies through an investment in the Subsidiary. The Fund may invest up to 10% of its net assets in the Subsidiary. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A.
Security Valuations – Securities, including restricted securities, are valued according to the following policy.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures ("Valuation Procedures"). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
9
Invesco Developing Markets Fund
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.
Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Distributions – Distributions from net investment income 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 consolidated financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Consolidated Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all.
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Consolidated Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Consolidated Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund did not enter into any closing agreements.
G.
Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
H.
Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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
10
Invesco Developing Markets Fund
to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation.
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
I.
Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.
Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
K.
Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
L.
Other Risks - The Subsidiary is not registered under the 1940 Act. As an investor in the Subsidiary, the Fund does not have all of the protections offered to investors by the 1940 Act. However, the Subsidiary is controlled by the Fund and managed by OppenheimerFunds, Inc. The Subsidiary may invest substantially all of its assets in a limited number of issuers or a single issuer. To the extent that it does so, the Subsidiary is more subject to the risks associated with and developments affecting such issuers than a fund that invests more widely. In addition, investments in the Subsidiary will be deemed illiquid and therefore subject the Fund to liquidity risk.
Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; lack of willingness or ability of the Chinese government to support the economies and markets of the Greater China region; difficulty in obtaining information necessary for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; lack of publicly available information; limited legal remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts and the risk of war, either internal or with other countries; public health emergencies resulting in market closures, travel restrictions, quarantines or other interventions; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole.
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region. In addition, export growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products and services, the institution of tariffs, sanctions, capital controls, embargoes, trade wars or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. The current political climate has intensified concerns about a potential trade war between China and the U.S., as each country has recently imposed tariffs on the other country’s products. Further, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.
Certain securities issued by companies located or operating in Greater China, such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations, and operational, clearing and settlement risks. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in
11
Invesco Developing Markets Fund
response to market volatility and other events. The liquidity of Chinese securities may shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate.
The Fund’s investments in Class A Shares of Chinese companies involve certain risks discussed above that may be more pronounced for the China A Shares market than for Chinese securities markets generally because the A-share market is subject to greater government restrictions and control.
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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.78%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $686,599.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of
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Invesco Developing Markets Fund
the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $51,652 in front-end sales commissions from the sale of Class A shares and $5,479 and $5,646 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
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A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the reporting period in relation to net assets.
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Invesco Developing Markets Fund
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the year ended October 31, 2024:
| | | | Accrued
Discounts/
Premiums | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
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Common Stocks & Other Equity Interests | | | | | | | | | |
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The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as Level 3 at period end:
| | | | Range of
Unobservable
Inputs | Weighted Average of
Unobservable Inputs
Based on Fair Value | |
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Common Stocks & Other Equity Interests | | | | | | |
NOTE 4—Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on
Consolidated Statement of Operations |
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Forward foreign currency contracts | |
Change in Net Unrealized Appreciation (Depreciation): | |
Forward foreign currency contracts | |
| |
The table below summarizes the average notional value of derivatives held during the period.
| Forward
Foreign Currency
Contracts |
| |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $82,128.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
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Invesco Developing Markets Fund
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
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| Includes short-term capital gain distributions, if any. |
Tax Components of Net Assets at Period-End: |
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Undistributed ordinary income | |
Net unrealized appreciation — investments | |
Net unrealized appreciation (depreciation) — foreign currencies | |
Temporary book/tax differences | |
Capital loss carryforward | |
Shares of beneficial interest | |
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The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and passive foreign investment companies.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
Capital Loss Carryforward* |
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Not subject to expiration | | | |
*
Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $8,981,924,349 and $13,955,987,978, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
Aggregate unrealized appreciation of investments | |
Aggregate unrealized (depreciation) of investments | |
Net unrealized appreciation of investments | |
Cost of investments for tax purposes is $12,499,837,800.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions and foreign capital gains taxes, on October 31, 2024, undistributed net investment income was decreased by $138,405,888 and undistributed net realized gain (loss) was increased by $138,405,888. This reclassification had no effect on the net assets or the distributable earnings of the Fund.
NOTE 11—Share Information
| Summary of Share Activity |
| | Year ended
October 31, 2023 |
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Invesco Developing Markets Fund
| Summary of Share Activity |
| Year ended October 31, 2024(a) | Year ended October 31, 2023 |
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Issued as reinvestment of dividends: | | | | |
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| There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 44% 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. |
| After the close of business on June 23, 2023, the Fund acquired all the net assets of Invesco Emerging Markets Innovators Fund (the “Target Fund”) pursuant to a plan of reorganization approved by the Board of Trustees of the Fund on March 16, 2023. The reorganization was executed in order to reduce overlap and increase efficiencies in the Adviser’s product line. The acquisition was accomplished by a tax-free exchange of 2,608,367 shares of the Fund for 12,966,553 shares outstanding of the Target Fund as of the close of business on June 23, 2023. Shares of the Target Fund were exchanged for the like class of shares of the Fund, based on the relative net asset value of the Target Fund to the net asset value of the Fund on the close of business, June 23, 2023. The Target Fund’s net assets as of the close of business on June 23, 2023 of $100,247,399, including $2,469,400 of unrealized appreciation (depreciation), were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $24,527,723,231 and $24,627,970,630 immediately after the acquisition. |
| The pro forma results of operations for the year ended October 31, 2023 assuming the reorganization had been completed on November 1, 2022, the beginning of the annual reporting period are as follows: |
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Net realized/unrealized gains | |
Change in net assets resulting from operations | |
As the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that has been included in the Fund’s Statement of Operations since June 23, 2023.
16
Invesco Developing Markets Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Developing Markets Fund
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of Invesco Developing Markets Fund and its subsidiary (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related consolidated statement of operations for the year ended October 31, 2024, the consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the consolidated financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
17
Invesco Developing Markets Fund
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Developing Markets Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI Emerging Markets Index (Index). The Board noted that performance of Class A shares of the Fund was in the third quintile of its performance universe for the one year period, the fourth quintile for the three year period and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board considered that the
18
Invesco Developing Markets Fund
Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board also considered that the Fund’s exposure to certain Chinese holdings and its stock selection in, and underweight exposure to, certain regions negatively impacted performance, and that the Fund’s long-term performance continued to be negatively impacted by Russian exposure. The Board noted information provided by management indicating that the portfolio management team continues to analyze certain portfolio characteristics to address areas of underperformance. The Board also considered that the Invesco Emerging Markets Innovators Fund had recently reorganized into the Fund on June 23, 2023. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each below the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco
Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also compared the Fund’s effective advisory fee rate (defined for this purpose as the advisory fee rate before the application of advisory fee waivers/expense limitations) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2023.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating
that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered
19
Invesco Developing Markets Fund
Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
20
Invesco Developing Markets Fund
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
Federal and State Income Tax | | |
Qualified Dividend Income* | | |
Corporate Dividends Received Deduction* | | |
U.S. Treasury Obligations* | | |
Qualified Business Income* | | |
Business Interest Income* | | |
| | |
| | |
*
The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
21
Invesco Developing Markets Fund
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
22
Invesco Developing Markets Fund
SEC file number(s): 811-05426 and 033-19338
Invesco Distributors, Inc.
O-DVM-NCSR
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Discovery Mid Cap Growth Fund
Nasdaq:
A: OEGAX ■ C: OEGCX ■ R: OEGNX ■ Y: OEGYX ■ R5: DMCFX ■ R6: OEGIX
Schedule of Investments(a)
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–96.55% |
| Advertising–2.49% |
| Trade Desk, Inc. (The), Class A(b) | 1,279,838 | $153,849,326 |
| Aerospace & Defense–3.49% |
| Axon Enterprise, Inc.(b) | 240,202 | 101,725,547 |
| Curtiss-Wright Corp. | 122,814 | 42,365,918 |
| Howmet Aerospace, Inc. | 713,513 | 71,151,516 |
| | | | 215,242,981 |
| Apparel Retail–0.96% |
| Burlington Stores, Inc.(b) | 238,837 | 59,176,643 |
| Application Software–9.84% |
| AppLovin Corp., Class A(b) | 295,864 | 50,116,403 |
| Datadog, Inc., Class A(b) | 572,776 | 71,849,022 |
| Fair Isaac Corp.(b) | 37,483 | 74,707,742 |
| Guidewire Software, Inc.(b) | 627,713 | 116,917,824 |
| HubSpot, Inc.(b) | 111,927 | 62,095,980 |
| Manhattan Associates, Inc.(b) | 215,581 | 56,775,412 |
| Samsara, Inc., Class A(b) | 1,776,027 | 84,876,330 |
| Tyler Technologies, Inc.(b) | 148,346 | 89,836,854 |
| | | | 607,175,567 |
| Asset Management & Custody Banks–3.33% |
| Ares Management Corp., Class A | 946,477 | 158,705,264 |
| Blue Owl Capital, Inc. | 2,092,062 | 46,778,506 |
| | | | 205,483,770 |
| Biotechnology–2.42% |
| Alnylam Pharmaceuticals, Inc.(b) | 232,771 | 62,054,421 |
| Natera, Inc.(b) | 722,240 | 87,362,150 |
| | | | 149,416,571 |
| Building Products–2.88% |
| Builders FirstSource, Inc.(b) | 232,342 | 39,823,419 |
| Carlisle Cos., Inc. | 119,669 | 50,527,842 |
| Lennox International, Inc. | 74,173 | 44,694,424 |
| Trane Technologies PLC | 114,607 | 42,422,927 |
| | | | 177,468,612 |
| Cargo Ground Transportation–1.19% |
| XPO, Inc.(b)(c) | 564,801 | 73,723,475 |
| Communications Equipment–1.88% |
| Motorola Solutions, Inc. | 257,717 | 115,805,134 |
| Construction & Engineering–4.12% |
| Comfort Systems USA, Inc. | 188,556 | 73,732,938 |
| EMCOR Group, Inc. | 127,975 | 57,085,808 |
| Quanta Services, Inc. | 408,515 | 123,220,380 |
| | | | 254,039,126 |
Construction Machinery & Heavy Transportation Equipment–
1.55% |
| Wabtec Corp. | 507,834 | 95,462,635 |
| Consumer Electronics–0.93% |
| Garmin Ltd. | 289,952 | 57,511,979 |
| | Shares | Value |
| Education Services–0.77% |
| Duolingo, Inc.(b)(c) | 162,409 | $47,580,965 |
| Electrical Components & Equipment–1.68% |
| Vertiv Holdings Co., Class A | 947,332 | 103,533,914 |
| Electronic Components–1.56% |
| Coherent Corp.(b) | 1,043,371 | 96,449,215 |
| Electronic Equipment & Instruments–1.02% |
| Zebra Technologies Corp., Class A(b) | 164,359 | 62,780,207 |
| Electronic Manufacturing Services–0.91% |
| Flex Ltd.(b) | 1,627,067 | 56,410,413 |
| Environmental & Facilities Services–1.24% |
| Clean Harbors, Inc.(b) | 331,348 | 76,627,538 |
| Financial Exchanges & Data–1.56% |
| Tradeweb Markets, Inc., Class A | 758,421 | 96,319,468 |
| Footwear–1.47% |
| Deckers Outdoor Corp.(b) | 565,064 | 90,913,147 |
| Health Care Distributors–1.23% |
| Cencora, Inc. | 334,038 | 76,187,387 |
| Health Care Equipment–0.78% |
| Insulet Corp.(b) | 208,050 | 48,169,817 |
| Health Care Facilities–4.19% |
| Encompass Health Corp. | 1,230,361 | 122,371,705 |
| Tenet Healthcare Corp.(b) | 879,788 | 136,384,736 |
| | | | 258,756,441 |
| Health Care REITs–0.50% |
| Ventas, Inc. | 472,341 | 30,933,612 |
| Health Care Supplies–1.66% |
| Cooper Cos., Inc. (The)(b) | 979,512 | 102,535,316 |
| Homebuilding–0.85% |
| PulteGroup, Inc. | 405,197 | 52,485,167 |
| Homefurnishing Retail–0.78% |
| Williams-Sonoma, Inc.(c) | 356,891 | 47,869,790 |
| Hotels, Resorts & Cruise Lines–2.27% |
| Hilton Worldwide Holdings, Inc. | 596,548 | 140,099,298 |
| Independent Power Producers & Energy Traders–0.80% |
| Vistra Corp. | 397,236 | 49,638,611 |
| Industrial Machinery & Supplies & Components–2.79% |
| Ingersoll Rand, Inc. | 467,832 | 44,911,872 |
| ITT, Inc. | 563,208 | 78,916,705 |
| Parker-Hannifin Corp. | 76,638 | 48,593,857 |
| | | | 172,422,434 |
| Insurance Brokers–1.53% |
| Arthur J. Gallagher & Co. | 110,333 | 31,025,640 |
| Brown & Brown, Inc. | 608,372 | 63,660,046 |
| | | | 94,685,686 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Discovery Mid Cap Growth Fund |
| | Shares | Value |
| Internet Services & Infrastructure–1.48% |
| GoDaddy, Inc., Class A(b) | 546,078 | $91,085,810 |
| Investment Banking & Brokerage–2.74% |
| Evercore, Inc., Class A | 402,493 | 106,326,576 |
| Jefferies Financial Group, Inc. | 977,582 | 62,545,696 |
| | | | 168,872,272 |
| IT Consulting & Other Services–1.08% |
| Gartner, Inc.(b) | 133,013 | 66,839,033 |
| Movies & Entertainment–1.87% |
| Spotify Technology S.A. (Sweden)(b) | 299,566 | 115,362,867 |
| Oil & Gas Equipment & Services–0.49% |
| TechnipFMC PLC (United Kingdom) | 1,140,605 | 30,442,747 |
| Oil & Gas Exploration & Production–0.52% |
| Diamondback Energy, Inc. | 180,114 | 31,838,752 |
| Oil & Gas Storage & Transportation–2.30% |
| Targa Resources Corp. | 851,936 | 142,239,235 |
| Other Specialty Retail–0.45% |
| Tractor Supply Co.(c) | 105,321 | 27,963,779 |
| Paper & Plastic Packaging Products & Materials–1.87% |
| Avery Dennison Corp. | 290,681 | 60,179,687 |
| Packaging Corp. of America | 241,558 | 55,302,289 |
| | | | 115,481,976 |
| Property & Casualty Insurance–1.16% |
| Arch Capital Group Ltd.(b) | 725,454 | 71,500,746 |
| Real Estate Services–1.91% |
| Jones Lang LaSalle, Inc.(b) | 434,958 | 117,856,220 |
| Research & Consulting Services–1.03% |
| Parsons Corp.(b)(c) | 589,087 | 63,715,650 |
| Restaurants–3.39% |
| Cava Group, Inc.(b) | 501,889 | 67,032,295 |
| Texas Roadhouse, Inc. | 551,682 | 105,437,464 |
| Wingstop, Inc. | 128,676 | 37,018,798 |
| | | | 209,488,557 |
| Semiconductor Materials & Equipment–0.51% |
| Onto Innovation, Inc.(b) | 157,088 | 31,155,263 |
| Semiconductors–4.55% |
| Astera Labs, Inc.(b)(c) | 890,005 | 62,442,751 |
| MACOM Technology Solutions Holdings, Inc.(b)(c) | 907,475 | 102,000,190 |
| Monolithic Power Systems, Inc. | 153,022 | 116,189,604 |
| | | | 280,632,545 |
| | Shares | Value |
| Steel–0.90% |
| Steel Dynamics, Inc. | 424,404 | $55,384,722 |
| Systems Software–2.03% |
| CyberArk Software Ltd.(b) | 301,138 | 83,270,680 |
| Monday.com Ltd.(b) | 144,041 | 42,329,328 |
| | | | 125,600,008 |
| Trading Companies & Distributors–3.82% |
| FTAI Aviation Ltd. | 438,871 | 59,001,817 |
| United Rentals, Inc. | 119,038 | 96,754,087 |
| W.W. Grainger, Inc. | 72,448 | 80,361,495 |
| | | | 236,117,399 |
| Transaction & Payment Processing Services–1.78% |
| Affirm Holdings, Inc.(b) | 322,829 | 14,156,052 |
| Fidelity National Information Services, Inc. | 576,335 | 51,714,539 |
| Toast, Inc., Class A(b)(c) | 1,469,575 | 44,131,337 |
| | | | 110,001,928 |
| Total Common Stocks & Other Equity Interests (Cost $4,381,087,504) | 5,960,333,754 |
| Money Market Funds–3.08% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | 66,573,046 | 66,573,046 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(d)(e) | 123,636,150 | 123,636,150 |
| Total Money Market Funds (Cost $190,209,196) | 190,209,196 |
| TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.63% (Cost $4,571,296,700) | | | 6,150,542,950 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–4.14% |
| Invesco Private Government Fund, 4.84%(d)(e)(f) | 61,523,131 | 61,523,131 |
| Invesco Private Prime Fund, 4.99%(d)(e)(f) | 194,188,853 | 194,247,109 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $255,770,240) | 255,770,240 |
| TOTAL INVESTMENTS IN SECURITIES–103.77% (Cost $4,827,066,940) | 6,406,313,190 |
| OTHER ASSETS LESS LIABILITIES—(3.77)% | (232,553,984) |
| NET ASSETS–100.00% | $6,173,759,206 |
Investment Abbreviations:
| REIT | – Real Estate Investment Trust |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Discovery Mid Cap Growth Fund |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Non-income producing security. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $85,621,500 | $722,910,554 | $(741,959,008) | $- | $- | $66,573,046 | $2,556,603 |
| Invesco Liquid Assets Portfolio, Institutional Class | 61,161,805 | 341,926,057 | (403,084,765) | (7,014) | 3,917 | - | 1,355,800 |
| Invesco Treasury Portfolio, Institutional Class | 97,853,142 | 1,033,279,553 | (1,007,496,545) | - | - | 123,636,150 | 3,404,424 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 69,446,619 | 944,357,334 | (952,280,822) | - | - | 61,523,131 | 3,116,146* |
| Invesco Private Prime Fund | 180,352,412 | 1,860,289,422 | (1,846,460,063) | (4,457) | 69,795 | 194,247,109 | 8,359,622* |
| Total | $494,435,478 | $4,902,762,920 | $(4,951,281,203) | $(11,471) | $73,712 | $445,979,436 | $18,792,595 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Discovery Mid Cap Growth Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $4,381,087,504)* | $5,960,333,754 |
| Investments in affiliated money market funds, at value (Cost $445,979,436) | 445,979,436 |
| Cash | 200,000 |
| Receivable for: | |
| Investments sold | 45,028,910 |
| Fund shares sold | 2,669,312 |
| Dividends | 1,412,752 |
| Investment for trustee deferred compensation and retirement plans | 538,238 |
| Other assets | 78,184 |
| Total assets | 6,456,240,586 |
| Liabilities: | |
| Payable for: | |
| Investments purchased | 16,030,610 |
| Fund shares reacquired | 7,681,673 |
| Collateral upon return of securities loaned | 255,770,240 |
| Accrued fees to affiliates | 2,213,595 |
| Accrued trustees’ and officers’ fees and benefits | 7,786 |
| Accrued other operating expenses | 201,852 |
| Trustee deferred compensation and retirement plans | 575,624 |
| Total liabilities | 282,481,380 |
| Net assets applicable to shares outstanding | $6,173,759,206 |
| Net assets consist of: | |
| Shares of beneficial interest | $4,339,272,171 |
| Distributable earnings | 1,834,487,035 |
| | $6,173,759,206 |
| Net Assets: |
| Class A | $3,761,748,789 |
| Class C | $93,254,503 |
| Class R | $145,183,393 |
| Class Y | $648,633,556 |
| Class R5 | $122,491,298 |
| Class R6 | $1,402,447,667 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 133,354,441 |
| Class C | 4,679,120 |
| Class R | 5,776,744 |
| Class Y | 19,312,282 |
| Class R5 | 4,257,228 |
| Class R6 | 40,642,750 |
| Class A: | |
| Net asset value per share | $28.21 |
Maximum offering price per share
(Net asset value of $28.21 ÷ 94.50%) | $29.85 |
| Class C: | |
| Net asset value and offering price per share | $19.93 |
| Class R: | |
| Net asset value and offering price per share | $25.13 |
| Class Y: | |
| Net asset value and offering price per share | $33.59 |
| Class R5: | |
| Net asset value and offering price per share | $28.77 |
| Class R6: | |
| Net asset value and offering price per share | $34.51 |
| * | At October 31, 2024, securities with an aggregate value of $245,191,961 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Discovery Mid Cap Growth Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Dividends (net of foreign withholding taxes of $15,699) | $33,583,315 |
| Dividends from affiliated money market funds (includes net securities lending income of $594,911) | 7,911,738 |
| Total investment income | 41,495,053 |
| Expenses: | |
| Advisory fees | 35,569,579 |
| Administrative services fees | 839,247 |
| Custodian fees | 30,689 |
| Distribution fees: | |
| Class A | 8,819,503 |
| Class C | 920,173 |
| Class R | 690,769 |
| Transfer agent fees — A, C, R and Y | 6,892,989 |
| Transfer agent fees — R5 | 116,791 |
| Transfer agent fees — R6 | 387,737 |
| Trustees’ and officers’ fees and benefits | 79,532 |
| Registration and filing fees | 139,527 |
| Reports to shareholders | 876,889 |
| Professional services fees | 109,898 |
| Other | 85,723 |
| Total expenses | 55,559,046 |
| Less: Fees waived and/or expense offset arrangement(s) | (315,915) |
| Net expenses | 55,243,131 |
| Net investment income (loss) | (13,748,078) |
| Realized and unrealized gain (loss) from: | |
| Net realized gain from: | |
| Unaffiliated investment securities | 701,527,856 |
| Affiliated investment securities | 73,712 |
| Foreign currencies | 1,326 |
| | 701,602,894 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 1,198,154,474 |
| Affiliated investment securities | (11,471) |
| | 1,198,143,003 |
| Net realized and unrealized gain | 1,899,745,897 |
| Net increase in net assets resulting from operations | $1,885,997,819 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Discovery Mid Cap Growth Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income (loss) | $(13,748,078) | $(14,418,931) |
| Net realized gain (loss) | 701,602,894 | (177,512,886) |
| Change in net unrealized appreciation (depreciation) | 1,198,143,003 | (143,285,142) |
| Net increase (decrease) in net assets resulting from operations | 1,885,997,819 | (335,216,959) |
| Share transactions–net: | | |
| Class A | (307,475,727) | (271,799,470) |
| Class C | (22,138,664) | (24,452,997) |
| Class R | (11,129,996) | (3,676,396) |
| Class Y | (70,773,996) | (115,387,782) |
| Class R5 | (11,506,134) | (4,695,954) |
| Class R6 | (66,118,304) | (56,257,241) |
| Net increase (decrease) in net assets resulting from share transactions | (489,142,821) | (476,269,840) |
| Net increase (decrease) in net assets | 1,396,854,998 | (811,486,799) |
| Net assets: | | |
| Beginning of year | 4,776,904,208 | 5,588,391,007 |
| End of year | $6,173,759,206 | $4,776,904,208 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Discovery Mid Cap Growth Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Distributions
from net
realized
gains | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $20.05 | $(0.09) | $8.25 | $8.16 | $— | $28.21 | 40.70% | $3,761,749 | 1.06% | 1.06% | (0.35)% | 102% |
| Year ended 10/31/23 | 21.50 | (0.08) | (1.37) | (1.45) | — | 20.05 | (6.74) | 2,918,068 | 1.04 | 1.04 | (0.37) | 124 |
| Year ended 10/31/22 | 37.13 | (0.11) | (9.79) | (9.90) | (5.73) | 21.50 | (30.69) | 3,398,899 | 1.04 | 1.04 | (0.44) | 94 |
| Year ended 10/31/21 | 26.65 | (0.25) | 11.81 | 11.56 | (1.08) | 37.13 | 44.48 | 5,288,400 | 1.03 | 1.03 | (0.76) | 92 |
| Year ended 10/31/20 | 22.17 | (0.13) | 5.60 | 5.47 | (0.99) | 26.65 | 25.60(d) | 3,787,636 | 1.05(d) | 1.05(d) | (0.54)(d) | 131 |
| Class C |
| Year ended 10/31/24 | 14.27 | (0.19) | 5.85 | 5.66 | — | 19.93 | 39.66(e) | 93,255 | 1.78(e) | 1.78(e) | (1.07)(e) | 102 |
| Year ended 10/31/23 | 15.41 | (0.17) | (0.97) | (1.14) | — | 14.27 | (7.40)(e) | 84,404 | 1.77(e) | 1.77(e) | (1.10)(e) | 124 |
| Year ended 10/31/22 | 28.52 | (0.21) | (7.17) | (7.38) | (5.73) | 15.41 | (31.22)(e) | 115,662 | 1.78(e) | 1.78(e) | (1.18)(e) | 94 |
| Year ended 10/31/21 | 20.83 | (0.36) | 9.13 | 8.77 | (1.08) | 28.52 | 43.47(e) | 206,799 | 1.73(e) | 1.73(e) | (1.46)(e) | 92 |
| Year ended 10/31/20 | 17.65 | (0.24) | 4.41 | 4.17 | (0.99) | 20.83 | 24.74 | 190,420 | 1.82 | 1.82 | (1.31) | 131 |
| Class R |
| Year ended 10/31/24 | 17.91 | (0.13) | 7.35 | 7.22 | — | 25.13 | 40.31 | 145,183 | 1.31 | 1.31 | (0.60) | 102 |
| Year ended 10/31/23 | 19.25 | (0.12) | (1.22) | (1.34) | — | 17.91 | (6.96) | 112,345 | 1.29 | 1.29 | (0.62) | 124 |
| Year ended 10/31/22 | 33.95 | (0.15) | (8.82) | (8.97) | (5.73) | 19.25 | (30.85) | 124,370 | 1.29 | 1.29 | (0.69) | 94 |
| Year ended 10/31/21 | 24.51 | (0.30) | 10.82 | 10.52 | (1.08) | 33.95 | 44.11 | 181,872 | 1.28 | 1.28 | (1.01) | 92 |
| Year ended 10/31/20 | 20.51 | (0.18) | 5.17 | 4.99 | (0.99) | 24.51 | 25.31 | 121,009 | 1.32 | 1.32 | (0.81) | 131 |
| Class Y |
| Year ended 10/31/24 | 23.82 | (0.03) | 9.80 | 9.77 | — | 33.59 | 41.02 | 648,634 | 0.81 | 0.81 | (0.10) | 102 |
| Year ended 10/31/23 | 25.48 | (0.03) | (1.63) | (1.66) | — | 23.82 | (6.52) | 518,998 | 0.79 | 0.79 | (0.12) | 124 |
| Year ended 10/31/22 | 42.77 | (0.05) | (11.51) | (11.56) | (5.73) | 25.48 | (30.50) | 668,812 | 0.79 | 0.79 | (0.19) | 94 |
| Year ended 10/31/21 | 30.48 | (0.19) | 13.56 | 13.37 | (1.08) | 42.77 | 44.84 | 971,407 | 0.78 | 0.78 | (0.51) | 92 |
| Year ended 10/31/20 | 25.15 | (0.08) | 6.40 | 6.32 | (0.99) | 30.48 | 25.95 | 538,205 | 0.82 | 0.82 | (0.31) | 131 |
| Class R5 |
| Year ended 10/31/24 | 20.39 | (0.01) | 8.39 | 8.38 | — | 28.77 | 41.10 | 122,491 | 0.75 | 0.75 | (0.04) | 102 |
| Year ended 10/31/23 | 21.80 | (0.01) | (1.40) | (1.41) | — | 20.39 | (6.47) | 95,675 | 0.73 | 0.73 | (0.06) | 124 |
| Year ended 10/31/22 | 37.45 | (0.03) | (9.89) | (9.92) | (5.73) | 21.80 | (30.45) | 106,860 | 0.73 | 0.73 | (0.13) | 94 |
| Year ended 10/31/21 | 26.80 | (0.15) | 11.88 | 11.73 | (1.08) | 37.45 | 44.88 | 155,263 | 0.72 | 0.72 | (0.45) | 92 |
| Year ended 10/31/20 | 22.20 | (0.05) | 5.64 | 5.59 | (0.99) | 26.80 | 26.12 | 110,206 | 0.71 | 0.71 | (0.20) | 131 |
| Class R6 |
| Year ended 10/31/24 | 24.44 | 0.01 | 10.06 | 10.07 | — | 34.51 | 41.20 | 1,402,448 | 0.68 | 0.68 | 0.03 | 102 |
| Year ended 10/31/23 | 26.10 | 0.00 | (1.66) | (1.66) | — | 24.44 | (6.36) | 1,047,414 | 0.66 | 0.66 | 0.01 | 124 |
| Year ended 10/31/22 | 43.62 | (0.02) | (11.77) | (11.79) | (5.73) | 26.10 | (30.43) | 1,173,789 | 0.67 | 0.67 | (0.07) | 94 |
| Year ended 10/31/21 | 31.03 | (0.14) | 13.81 | 13.67 | (1.08) | 43.62 | 45.02 | 1,559,522 | 0.65 | 0.65 | (0.38) | 92 |
| Year ended 10/31/20 | 25.55 | (0.04) | 6.51 | 6.47 | (0.99) | 31.03 | 26.14 | 904,245 | 0.65 | 0.65 | (0.14) | 131 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2020, the portfolio turnover calculation excludes the value of securities purchased of $2,263,197,717 in connection with the acquisition of Invesco Mid Cap Growth Fund into the Fund. |
| (d) | The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.23% for the year ended October 31, 2020. |
| (e) | The total return, ratios 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%, 0.98%, 0.99% and 0.95% for the years ended October 31, 2024, 2023, 2022 and 2021, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Discovery Mid Cap Growth Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Discovery Mid Cap Growth Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 9 | Invesco Discovery Mid Cap Growth Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of |
| 10 | Invesco Discovery Mid Cap Growth Fund |
| | compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser $38,408 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| J. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| K. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| L. | Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate* |
| First $500 million | 0.680% |
| Next $500 million | 0.650% |
| Next $4 billion | 0.620% |
| Over $5 billion | 0.600% |
| * | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.61%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense
| 11 | Invesco Discovery Mid Cap Growth Fund |
offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $144,930.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares, up to 1.00% of the average daily net assets of Class C shares, and up to 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $443,745 in front-end sales commissions from the sale of Class A shares and $8,186 and $3,147 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $122,579 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Common Stocks & Other Equity Interests | $5,960,333,754 | $— | $— | $5,960,333,754 |
| Money Market Funds | 190,209,196 | 255,770,240 | — | 445,979,436 |
| Total Investments | $6,150,542,950 | $255,770,240 | $— | $6,406,313,190 |
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $170,985.
NOTE 5—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under
| 12 | Invesco Discovery Mid Cap Growth Fund |
such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed long-term capital gain | $285,995,339 |
| Net unrealized appreciation — investments | 1,566,043,789 |
| Temporary book/tax differences | (358,318) |
| Late-Year ordinary loss deferral | (17,193,775) |
| Shares of beneficial interest | 4,339,272,171 |
| Total net assets | $6,173,759,206 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and passive foreign investment companies.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $5,771,692,205 and $6,243,461,965, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $1,608,929,297 |
| Aggregate unrealized (depreciation) of investments | (42,885,508) |
| Net unrealized appreciation of investments | $1,566,043,789 |
Cost of investments for tax purposes is $4,840,269,401.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of net operating losses and equalization, on October 31, 2024, undistributed net investment income (loss) was increased by $7,797,929, undistributed net realized gain was decreased by $9,903,326 and shares of beneficial interest was increased by $2,105,397. This reclassification had no effect on the net assets of the Fund.
NOTE 10—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 7,757,806 | $199,195,683 | | 8,497,973 | $183,944,919 |
| Class C | 686,124 | 12,482,409 | | 788,903 | 12,206,319 |
| Class R | 1,014,616 | 23,273,300 | | 1,129,267 | 21,828,622 |
| Class Y | 6,538,983 | 200,346,452 | | 8,592,762 | 220,140,298 |
| Class R5 | 542,041 | 13,901,440 | | 583,672 | 12,800,144 |
| Class R6 | 9,586,924 | 305,426,038 | | 9,260,719 | 242,778,998 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 579,842 | 14,798,430 | | 629,624 | 13,502,913 |
| Class C | (817,385) | (14,798,430) | | (881,956) | (13,502,913) |
| 13 | Invesco Discovery Mid Cap Growth Fund |
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Reacquired: | | | | | |
| Class A | (20,500,462) | $(521,469,840) | | (21,687,985) | $(469,247,302) |
| Class C | (1,104,157) | (19,822,643) | | (1,495,748) | (23,156,403) |
| Class R | (1,510,514) | (34,403,296) | | (1,316,692) | (25,505,018) |
| Class Y | (9,017,849) | (271,120,448) | | (13,053,854) | (335,528,080) |
| Class R5 | (976,551) | (25,407,574) | | (794,293) | (17,496,098) |
| Class R6 | (11,802,021) | (371,544,342) | | (11,369,078) | (299,036,239) |
| Net increase (decrease) in share activity | (19,022,603) | $(489,142,821) | | (21,116,686) | $(476,269,840) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 24% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| 14 | Invesco Discovery Mid Cap Growth Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Discovery Mid Cap Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Discovery Mid Cap Growth Fund (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 15 | Invesco Discovery Mid Cap Growth Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Discovery Mid Cap Growth Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Russell Midcap® Growth Index (Index). The Board noted that performance of Class A shares of the Fund was in the fifth quintile of its performance universe for the one year period, the fourth quintile for the three year period and the third quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one and three year periods and reasonably comparable to the performance of the Index for the five year period.
| 16 | Invesco Discovery Mid Cap Growth Fund |
The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board considered that stock selection in certain sectors detracted from the Fund’s relative performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each below the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board requested and received additional information regarding the Fund’s actual and contractual management fees and the levels of the Fund’s breakpoints in light of current asset levels. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also compared the Fund’s effective advisory fee rate (defined for this purpose as the
advisory fee rate before the application of advisory fee waivers/expense limitations) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2023.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board considered information from Invesco Advisers regarding the levels of the Fund’s breakpoints in light of current assets. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The
Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities
| 17 | Invesco Discovery Mid Cap Growth Fund |
Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 18 | Invesco Discovery Mid Cap Growth Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Long-Term Capital Gain Distributions | $9,902,000 |
| Qualified Dividend Income* | 0.00% |
| Corporate Dividends Received Deduction* | 0.00% |
| U.S. Treasury Obligations* | 0.00% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 0.00% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 19 | Invesco Discovery Mid Cap Growth Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 20 | Invesco Discovery Mid Cap Growth Fund |
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-DMCG-NCSR |
Annual Financial Statements and Other InformationOctober 31, 2024
Invesco Emerging Markets Local Debt Fund
A: OEMAX ■ C: OEMCX ■ R: OEMNX ■ Y: OEMYX ■ R5: EMLDX ■ R6: OEMIX
| |
| |
| |
| Notes to Financial Statements |
| Report of Independent Registered Public Accounting Firm |
| Approval of Investment Advisory and Sub-Advisory Contracts |
| |
| Other Information Required in Form N-CSR (Items 8-11) |
| | |
Non-U.S. Dollar Denominated Bonds & Notes–84.82%(a) |
|
Brazil Notas do Tesouro Nacional, Series F, 10.00%, 01/01/2027 | | | |
|
Bonos de la Tesoreria de la Republica en pesos, | | |
| | | |
| | | |
| | | |
|
China Development Bank, Series 2315, 2.69%, 09/11/2033 | | | |
|
| | |
Series B, 5.75%, 11/03/2027 | | | |
Series B, 6.00%, 04/28/2028 | | | |
Series B, 7.00%, 03/26/2031 | | | |
Series B, 9.25%, 05/28/2042 | | | |
Series B, 11.50%, 07/25/2046 | | | |
Series B, 7.25%, 10/26/2050 | | | |
PA Autopista Rio Magdalena, | | | |
| | | |
|
Czech Republic Government Bond, | | |
Series 105, 2.75%, 07/23/2029 | | | |
Series 125, 1.50%, 04/24/2040 | | | |
| | | |
|
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
India Government Bond, 7.30%, 06/19/2053 | | | |
| | |
|
| | |
Series 103, 6.75%, 07/15/2035 | | | |
Series 104, 6.50%, 07/15/2030 | | | |
Series FR82, 7.00%, 09/15/2030 | | | |
Series FR91, 6.38%, 04/15/2032 | | | |
Series FR92, 7.13%, 06/15/2042 | | | |
Series FR95, 6.38%, 08/15/2028 | | | |
Series FR96, 7.00%, 02/15/2033 | | | |
| | | |
|
Malaysia Government Bond, | | |
Series 122, 3.58%, 07/15/2032 | | | |
Series 123, 4.46%, 03/31/2053 | | | |
Series 219, 3.89%, 08/15/2029 | | | |
Series 310, 4.50%, 04/15/2030 | | | |
Series 513, 3.73%, 06/15/2028 | | | |
Series 519, 3.76%, 05/22/2040 | | | |
| | | |
|
| | |
Series M, 7.00%, 09/03/2026 | | | |
Series M, 8.50%, 03/01/2029 | | | |
Red de Carreteras de Occidente S.A.B. de C.V., 9.00%, | | | |
| | | |
|
Peru Government Bond, 6.15%, 08/12/2032 | | | |
Peruvian Government International Bond, 6.95%, | | | |
| | | |
|
Philippine Government Bond, Series R518, 6.25%, 02/28/2029 | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
2
Invesco Emerging Markets Local Debt Fund
| | |
|
Republic of Poland Government Bond, | | |
Series 1029, 2.75%, 10/25/2029 | | | |
Series 1030, 1.25%, 10/25/2030 | | | |
Series 432, 1.75%, 04/25/2032 | | | |
| | | |
|
Romania Government Bond, 4.75%, 10/11/2034 | | | |
|
Republic of South Africa Government Bond, | | |
Series 2032, 8.25%, 03/31/2032 | | | |
Series 2037, 8.50%, 01/31/2037 | | | |
Series 2040, 9.00%, 01/31/2040 | | | |
Series 2044, 8.75%, 01/31/2044 | | | |
Series R209, 6.25%, 03/31/2036 | | | |
Series R-213, 7.00%, 02/28/2031 | | | |
| | | |
|
Corporacion Andina de Fomento, 37.00%, | | | |
European Bank for Reconstruction & Development, | | |
| | | |
| | | |
| | | |
International Bank for Reconstruction & Development, | | |
| | | |
| | | |
| | |
Supranational–(continued) |
International Finance Corp., | | | |
| | | |
|
Thailand Government Bond, | | |
| | | |
| | | |
| | | |
|
Turkiye Government Bond, 36.00%, 08/12/2026 | | | |
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $77,792,763) | |
| | |
U.S. Dollar Denominated Bonds & Notes–0.13% |
|
U.S. International Development Finance Corp., Series 4, 3.13%, 04/15/2028 (Cost $120,000) | | | |
| | |
Money Market Funds–10.43% |
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(e)(f) | | |
Invesco Treasury Portfolio, Institutional | | |
Total Money Market Funds (Cost $9,264,403) | |
|
|
| |
TOTAL INVESTMENTS IN SECURITIES—95.76% (Cost $87,789,583) | |
OTHER ASSETS LESS LIABILITIES–4.24% | |
| |
Investment Abbreviations:
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
3
Invesco Emerging Markets Local Debt Fund
Notes to Schedule of Investments:
| Foreign denominated security. Principal amount is denominated in the currency indicated. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $4,724,499, which represented 5.32% of the Fund’s Net Assets. |
| Zero coupon bond issued at a discount. |
| Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Invesco Liquid Assets Portfolio, Institutional Class | | | | | | | |
Invesco Treasury Portfolio, Institutional Class | | | | | | | |
| | | | | | | |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The table below details options purchased. |
Open Over-The-Counter Foreign Currency Options Purchased(a) |
| | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
Subtotal — Foreign Currency Call Options Purchased | |
|
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | |
| | | | | | | | |
| | Merrill Lynch International | | | | | | |
| | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
Subtotal — Foreign Currency Put Options Purchased | |
Total Foreign Currency Options Purchased | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $810,000. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4
Invesco Emerging Markets Local Debt Fund
Open Over-The-Counter Foreign Currency Options Written(a) |
| | | | | | | | |
|
| | Merrill Lynch International | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
Subtotal — Foreign Currency Call Options Written | | | | | | | |
|
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
Subtotal — Foreign Currency Put Options Written | | | | | | | |
Total Foreign Currency Options Written | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $810,000. |
Open Forward Foreign Currency Contracts |
| | | Unrealized
Appreciation
(Depreciation) |
| |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5
Invesco Emerging Markets Local Debt Fund
Open Forward Foreign Currency Contracts—(continued) |
| | | Unrealized Appreciation (Depreciation) |
| |
| | | | | | |
| | | | | | |
| | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6
Invesco Emerging Markets Local Debt Fund
Open Forward Foreign Currency Contracts—(continued) |
| | | Unrealized Appreciation (Depreciation) |
| |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7
Invesco Emerging Markets Local Debt Fund
Open Forward Foreign Currency Contracts—(continued) |
| | | Unrealized Appreciation (Depreciation) |
| |
| Morgan Stanley and Co. International PLC | | | | | |
| | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| | | | | | |
| |
Total Forward Foreign Currency Contracts | |
Open Centrally Cleared Interest Rate Swap Agreements(a) |
| | | | | | | Upfront
Payments
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) |
|
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8
Invesco Emerging Markets Local Debt Fund
Open Centrally Cleared Interest Rate Swap Agreements(a)—(continued) |
| | | | | | | Upfront Payments Paid (Received) | | Unrealized Appreciation (Depreciation) |
|
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | |
Total Centrally Cleared Interest Rate Swap Agreements | | | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9
Invesco Emerging Markets Local Debt Fund
| Centrally cleared swap agreements collateralized by $1,265,803 cash held with Counterparties. |
Open Over-The-Counter Interest Rate Swap Agreements(a) |
| | | | | | | | Upfront
Payments
Paid
(Received) | | |
|
Standard Chartered Bank PLC | | | | | | | | | | | |
Goldman Sachs International | | | | | | | | | | | |
Total Over-The-Counter Interest Rate Swap Agreements | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $810,000. |
|
| |
| —Budapest Interbank Offered Rate |
| —Brazil Ceptip DI Interbank Deposit Rate |
| —Sinacofi Chile Interbank Rate Avg (CAMARA) |
| |
| |
| —China 7-Day Reverse Repo Rate |
| |
| —Colombia IBR Overnight Nominal Interbank Reference Rate |
| |
| |
| |
| |
| —Financial Benchmarks India Private Ltd. |
| |
| |
| |
| |
| —Johannesburg Interbank Average Rate |
| —Kuala Lumpur Interbank Offered Rate |
| |
| —South Korean Won Certificate of Deposit |
| —Mumbai Interbank Offered Rate |
| |
| |
| |
| |
| |
| —Prague Interbank Offerred Rate |
| |
| —Secured Overnight Financing Rate |
| —Tel Aviv Inter-Bank Offered Rate |
| |
| —Interbank Equilibrium Interest Rate |
| —Turkish Lira Overnight Reference Rate |
| |
| —Thai Overnight Repurchase Rate |
| |
| |
| —Warsaw Interbank Offered Rate |
| |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10
Invesco Emerging Markets Local Debt Fund
Statement of Assets and Liabilities
| |
Investments in unaffiliated securities, at value
(Cost $78,525,180) | |
Investments in affiliated money market funds, at value (Cost $9,264,403) | |
| |
| |
Unrealized appreciation on swap agreements — OTC | |
Unrealized appreciation on forward foreign currency contracts outstanding | |
| |
Cash collateral — centrally cleared swap agreements | |
Cash collateral — OTC Derivatives | |
| |
Foreign currencies, at value (Cost $203,498) | |
| |
| |
| |
| |
| |
Cash segregated as collateral | |
Investment for trustee deferred compensation and retirement plans | |
| |
| |
| |
| |
Options written, at value (premiums received $470,469) | |
Variation margin payable — centrally cleared swap agreements | |
Unrealized depreciation on forward foreign currency contracts outstanding | |
| |
| |
| |
| |
Accrued fees to affiliates | |
Accrued trustees’ and officers’ fees and benefits | |
Accrued other operating expenses | |
Trustee deferred compensation and retirement plans | |
Collateral due to broker - centrally cleared swap agreements | |
| |
Net assets applicable to shares outstanding | |
| |
Shares of beneficial interest | |
Distributable earnings (loss) | |
| |
|
| |
| |
| |
| |
| |
| |
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |
| |
| |
| |
| |
| |
| |
Net asset value per share | |
Maximum offering price per share
(Net asset value of $5.24 ÷ 95.75%) | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11
Invesco Emerging Markets Local Debt Fund
Statement of Operations
For the year ended October 31, 2024
| |
Interest (net of foreign withholding taxes of $126,289) | |
Dividends from affiliated money market funds | |
| |
| |
| |
Administrative services fees | |
| |
| |
| |
| |
| |
Transfer agent fees — A, C, R and Y | |
| |
| |
Trustees’ and officers’ fees and benefits | |
Registration and filing fees | |
| |
Professional services fees | |
| |
| |
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | |
| |
| |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Unaffiliated investment securities (net of foreign taxes of $42,647) | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
| |
| |
| |
Change in net unrealized appreciation (depreciation) of: | |
Unaffiliated investment securities (net of foreign taxes of $878) | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
| |
| |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12
Invesco Emerging Markets Local Debt Fund
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | |
| | |
| | |
| | |
Change in net unrealized appreciation | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders from distributable earnings: | | |
| | |
| | |
| | |
| | |
| | |
| | |
Total distributions from distributable earnings | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Net increase (decrease) in net assets resulting from share transactions | | |
Net increase (decrease) in net assets | | |
| | |
| | |
| | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13
Invesco Emerging Markets Local Debt Fund
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Net asset
value,
beginning
of period | | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | | | Net asset
value, end
of period | | 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 | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Calculated using average shares outstanding. |
| 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. |
| Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| The total return, ratios of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the years ended October 31, 2024, 2023, 2022 and 2020. |
| Ratios include interest, facilities and maintenance fees of 0.09% for the year ended October 31, 2022. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14
Invesco Emerging Markets Local Debt Fund
Notes to Financial Statements
NOTE 1—Significant Accounting Policies
Invesco Emerging Markets Local Debt Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A.
Security Valuations – Securities, including restricted securities, are valued according to the following policy.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or
15
Invesco Emerging Markets Local Debt Fund
other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.
Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Distributions – Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.
Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.
Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.
Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.
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
16
Invesco Emerging Markets Local Debt Fund
foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K.
Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
L.
Call Options Purchased and Written – The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
M.
Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may
17
Invesco Emerging Markets Local Debt Fund
write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
N.
Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of October 31, 2024, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
O.
Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
18
Invesco Emerging Markets Local Debt Fund
P.
Collateral —To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.
Q.
Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities tend to be very volatile.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the risk that a borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund’s income. Mortgage- and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities at the time or price it desires.
The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.69%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least February 28, 2025, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.20%, 1.95%, 1.45%, 0.95%, 0.95%, and 0.95%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waivers and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expenses on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate February 28, 2025. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $66,306 and reimbursed class level expenses of $55,347, $9,169, $4,288, $153,545, $2 and $865 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company
19
Invesco Emerging Markets Local Debt Fund
(“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $3,206 in front-end sales commissions from the sale of Class A shares and $0 and $24 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | | | |
Investments in Securities | | | | |
Non-U.S. Dollar Denominated Bonds & Notes | | | | |
U.S. Dollar Denominated Bonds & Notes | | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
Other Investments - Assets* | | | | |
Forward Foreign Currency Contracts | | | | |
| | | | |
| | | | |
Other Investments - Liabilities* | | | | |
Forward Foreign Currency Contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Forward foreign currency contracts and swap agreements are valued at unrealized appreciation (depreciation). Options written are shown at value. |
NOTE 4—Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
20
Invesco Emerging Markets Local Debt Fund
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| |
| | | |
Unrealized appreciation on swap agreements — Centrally Cleared(a) | | | |
Unrealized appreciation on forward foreign currency contracts outstanding | | | |
Unrealized appreciation on swap agreements — OTC | | | |
Options purchased, at value — OTC(b) | | | |
| | | |
Derivatives not subject to master netting agreements | | | |
Total Derivative Assets subject to master netting agreements | | | |
| |
| | | |
Unrealized depreciation on swap agreements — Centrally Cleared(a) | | | |
Unrealized depreciation on forward foreign currency contracts outstanding | | | |
Options written, at value — OTC | | | |
Total Derivative Liabilities | | | |
Derivatives not subject to master netting agreements | | | |
Total Derivative Liabilities subject to master netting agreements | | | |
| The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
| Options purchased, at value as reported in the Schedule of Investments. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| Financial Derivative Assets | Financial Derivative Liabilities | | Collateral
(Received)/Pledged | |
| Forward
Foreign
Currency
Contracts | | | | Forward
Foreign
Currency
Contracts | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Goldman Sachs International | | | | | | | | | | | |
| | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | | | | | | | | | | | |
Merrill Lynch International | | | | | | | | | | | |
Morgan Stanley and Co. International PLC | | | | | | | | | | | |
| | | | | | | | | | | |
Standard Chartered Bank PLC | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
21
Invesco Emerging Markets Local Debt Fund
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on
Statement of Operations |
| | | |
| | | |
Forward foreign currency contracts | | | |
| | | |
| | | |
| | | |
| | | |
Change in Net Unrealized Appreciation (Depreciation): | | | |
Forward foreign currency contracts | | | |
| | | |
| | | |
| | | |
| | | |
| Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities. |
The table below summarizes the average notional value of derivatives held during the period.
| Forward
Foreign Currency
Contracts | | Foreign
Currency
Options
Purchased | Foreign
Currency
Options
Written | |
| | | | | |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $4,935.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | |
| | |
| | |
| | |
| Includes short-term capital gain distributions, if any. |
22
Invesco Emerging Markets Local Debt Fund
Tax Components of Net Assets at Period-End: |
| |
Net unrealized appreciation (depreciation) — investments | |
Net unrealized appreciation (depreciation) — foreign currencies | |
Temporary book/tax differences | |
Capital loss carryforward | |
Shares of beneficial interest | |
| |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to derivative instruments, wash sales and straddles.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
Capital Loss Carryforward* |
| | | |
Not subject to expiration | | | |
*
Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $83,240,657 and $91,292,259, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
Aggregate unrealized appreciation of investments | |
Aggregate unrealized (depreciation) of investments | |
Net unrealized appreciation (depreciation) of investments | |
Cost of investments for tax purposes is $87,659,670.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions and return of capital distributions, on October 31, 2024, undistributed net investment income was increased by $547,931, undistributed net realized gain (loss) was increased by $1,752,866 and shares of beneficial interest was decreased by $2,300,797. This reclassification had no effect on the net assets of the Fund.
NOTE 11—Share Information
| Summary of Share Activity |
| | Year ended
October 31, 2023 |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Issued as reinvestment of dividends: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Automatic conversion of Class C shares to Class A shares: | | | | |
| | | | |
| | | | |
23
Invesco Emerging Markets Local Debt Fund
| Summary of Share Activity |
| Year ended October 31, 2024(a) | Year ended October 31, 2023 |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in share activity | | | | |
| There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 66% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
24
Invesco Emerging Markets Local Debt Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Emerging Markets Local Debt Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Emerging Markets Local Debt Fund (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
25
Invesco Emerging Markets Local Debt Fund
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Emerging Markets Local Debt Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an
independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis, and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy
and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the JP Morgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified Index (Index). The Board noted that performance of Class A shares of the Fund was in the second quintile of its performance universe for the one year period and the third quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was reasonably comparable to the performance of the Index for the one year period and above the
26
Invesco Emerging Markets Local Debt Fund
performance of the Index for the three and five year periods. The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. dvisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the
contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and below, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s total expense ratio was in the fifth quintile of its expense group and discussed with management reasons for such relative total expenses. As previously noted, the independent Trustees reviewed and considered additional information in response to follow-up requests, including with respect to the Fund’s total expense ratio relative to peer funds. The independent Trustees met and discussed those responses with legal counsel to the independent Trustees and the Senior Officer, and subsequently with representatives of management.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with
federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without
27
Invesco Emerging Markets Local Debt Fund
obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
28
Invesco Emerging Markets Local Debt Fund
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
Federal and State Income Tax | |
Qualified Dividend Income* | |
Corporate Dividends Received Deduction* | |
U.S. Treasury Obligations* | |
Qualified Business Income* | |
Business Interest Income* | |
*
The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
29
Invesco Emerging Markets Local Debt Fund
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
30
Invesco Emerging Markets Local Debt Fund
SEC file number(s): 811-05426 and 033-19338
Invesco Distributors, Inc.
O-EMLD-NCSR
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco EQV Emerging Markets All Cap Fund
Nasdaq:
A: GTDDX ■ C: GTDCX ■ Y: GTDYX ■ R5: GTDIX ■ R6: GTDFX
Schedule of Investments
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–98.34% |
| Brazil–8.37% |
| Arcos Dorados Holdings, Inc., Class A | 3,152,204 | $27,770,917 |
| MercadoLibre, Inc.(a) | 7,639 | 15,562,018 |
| Multiplan Empreendimentos Imobiliarios S.A. | 6,037,229 | 26,724,678 |
| PRIO S.A. | 822,700 | 5,832,007 |
| Raia Drogasil S.A. | 4,574,236 | 19,259,441 |
| TOTVS S.A. | 5,499,600 | 28,387,978 |
| | | | 123,537,039 |
| China–22.88% |
| Airtac International Group | 1,465,000 | 40,551,099 |
| China Mengniu Dairy Co. Ltd. | 7,109,000 | 15,920,314 |
| China Resources Beer (Holdings) Co. Ltd. | 6,422,000 | 23,788,974 |
| Fuyao Glass Industry Group Co. Ltd., H Shares(b) | 6,054,000 | 42,823,546 |
| New Oriental Education & Technology Group, Inc. | 1,100,200 | 6,885,111 |
| Prosus N.V. | 498,697 | 21,029,730 |
| Shenzhen Inovance Technology Co. Ltd., A Shares | 3,269,003 | 25,523,944 |
| Sunresin New Materials Co. Ltd., A Shares | 1,827,750 | 12,558,748 |
| Tencent Holdings Ltd. | 1,102,000 | 57,460,582 |
| Tongcheng Travel Holdings Ltd.(b) | 19,538,400 | 44,204,267 |
| Trip.com Group Ltd.(a) | 395,250 | 25,436,105 |
| Wuliangye Yibin Co. Ltd., A Shares | 1,046,560 | 21,608,684 |
| | | | 337,791,104 |
| Egypt–2.00% |
| Eastern Co. S.A.E. | 21,718,228 | 12,112,515 |
| EFG Holding S.A.E.(a) | 38,434,502 | 17,385,006 |
| | | | 29,497,521 |
| France–2.74% |
| Bollore SE | 6,475,869 | 40,428,681 |
| Hong Kong–1.94% |
| AIA Group Ltd. | 3,622,400 | 28,589,135 |
| Hungary–3.86% |
| Richter Gedeon Nyrt | 1,972,849 | 57,020,616 |
| India–10.87% |
| Cyient Ltd. | 517,678 | 11,255,321 |
| Emami Ltd. | 3,359,778 | 28,040,896 |
| HDFC Bank Ltd., ADR | 942,491 | 59,405,208 |
| MakeMyTrip Ltd.(a)(c) | 168,399 | 17,090,814 |
| SBI Life Insurance Co. Ltd.(b) | 2,317,311 | 44,614,642 |
| | | | 160,406,881 |
| Indonesia–6.51% |
| PT Bank Central Asia Tbk | 67,995,200 | 44,331,444 |
| PT Bank Rakyat Indonesia (Persero) Tbk | 64,743,800 | 19,737,405 |
| PT Kalbe Farma Tbk | 311,301,100 | 32,074,987 |
| | | | 96,143,836 |
| | Shares | Value |
| Macau–0.91% |
| Galaxy Entertainment Group Ltd. | 3,015,000 | $13,418,491 |
| Malaysia–1.34% |
| KPJ Healthcare Bhd. | 41,664,600 | 19,788,049 |
| Mexico–3.03% |
| Bolsa Mexicana de Valores S.A.B. de C.V. | 13,383,577 | 21,885,137 |
| Wal-Mart de Mexico S.A.B. de C.V., Series V | 8,288,910 | 22,791,965 |
| | | | 44,677,102 |
| Nigeria–0.73% |
| Zenith Bank PLC | 458,307,604 | 10,846,155 |
| Philippines–5.87% |
| BDO Unibank, Inc. | 15,818,162 | 41,399,006 |
| SM Investments Corp. | 753,600 | 12,151,502 |
| SM Prime Holdings, Inc. | 63,054,400 | 33,165,523 |
| | | | 86,716,031 |
| Poland–1.19% |
| Allegro.eu S.A.(a)(b) | 1,991,444 | 17,523,764 |
| Russia–0.00% |
| Detsky Mir PJSC(a)(d) | 6,640,610 | 7 |
| Moscow Exchange MICEX-RTS PJSC(a)(d) | 11,806,000 | 12 |
| Sberbank of Russia PJSC(a)(d) | 11,900,044 | 12 |
| Sberbank of Russia PJSC, Preference Shares(a)(d) | 15,636,015 | 15 |
| | | | 46 |
| South Africa–1.41% |
| Naspers Ltd. | 87,752 | 20,739,961 |
| South Korea–3.72% |
| LEENO Industrial, Inc. | 66,439 | 8,656,689 |
| Samsung Electronics Co. Ltd. | 1,089,377 | 46,256,021 |
| | | | 54,912,710 |
| Taiwan–13.62% |
| ASPEED Technology, Inc. | 91,000 | 11,539,446 |
| MediaTek, Inc. | 1,145,000 | 44,572,750 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 3,969,000 | 124,465,782 |
| Visual Photonics Epitaxy Co. Ltd. | 4,762,000 | 20,508,383 |
| | | | 201,086,361 |
| Thailand–4.32% |
| Bangkok Dusit Medical Services PCL, Foreign Shares | 44,318,400 | 36,432,982 |
| Central Pattana PCL, Foreign Shares | 14,735,400 | 27,275,145 |
| | | | 63,708,127 |
| United Arab Emirates–3.03% |
| Emaar Properties PJSC | 18,920,257 | 44,733,894 |
| Total Common Stocks & Other Equity Interests (Cost $1,182,580,809) | 1,451,565,504 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco EQV Emerging Markets All Cap Fund |
| | Shares | Value |
| Money Market Funds–1.86% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(e)(f) | 9,599,069 | $9,599,069 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(e)(f) | 17,828,826 | 17,828,826 |
| Total Money Market Funds (Cost $27,427,895) | 27,427,895 |
| TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-100.20% (Cost $1,210,008,704) | | | 1,478,993,399 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–1.08% |
| Invesco Private Government Fund, 4.84%(e)(f)(g) | 4,448,559 | 4,448,559 |
| | Shares | Value |
| Money Market Funds–(continued) |
| Invesco Private Prime Fund, 4.99%(e)(f)(g) | 11,600,841 | $11,604,321 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $16,053,834) | 16,052,880 |
| TOTAL INVESTMENTS IN SECURITIES—101.28% (Cost $1,226,062,538) | 1,495,046,279 |
| OTHER ASSETS LESS LIABILITIES–(1.28)% | (18,947,863) |
| NET ASSETS–100.00% | $1,476,098,416 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
Notes to Schedule of Investments:
| (a) | Non-income producing security. |
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $149,166,219, which represented 10.11% of the Fund’s Net Assets. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
| (e) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $26,555,275 | $120,836,550 | $(137,792,756) | $- | $- | $9,599,069 | $938,599 |
| Invesco Liquid Assets Portfolio, Institutional Class | 18,967,089 | 67,676,634 | (86,646,672) | (2,663) | 5,612 | - | 568,488 |
| Invesco Treasury Portfolio, Institutional Class | 30,348,885 | 165,328,287 | (177,848,346) | - | - | 17,828,826 | 1,185,985 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 4,225,731 | 56,396,723 | (56,173,895) | - | - | 4,448,559 | 234,923* |
| Invesco Private Prime Fund | 10,866,907 | 130,925,199 | (130,184,899) | (954) | (1,932) | 11,604,321 | 630,760* |
| Total | $90,963,887 | $541,163,393 | $(588,646,568) | $(3,617) | $3,680 | $43,480,775 | $3,558,755 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (f) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (g) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco EQV Emerging Markets All Cap Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $1,182,580,809)* | $1,451,565,504 |
| Investments in affiliated money market funds, at value (Cost $43,481,729) | 43,480,775 |
| Foreign currencies, at value (Cost $1,656,213) | 1,653,822 |
| Receivable for: | |
| Investments sold | 499 |
| Fund shares sold | 398,420 |
| Dividends | 1,751,327 |
| Investment for trustee deferred compensation and retirement plans | 306,223 |
| Other assets | 53,963 |
| Total assets | 1,499,210,533 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 1,395,846 |
| Accrued foreign taxes | 1,848,814 |
| Collateral upon return of securities loaned | 16,053,834 |
| Accrued fees to affiliates | 512,774 |
| Accrued trustees’ and officers’ fees and benefits | 2,007 |
| Accrued other operating expenses | 2,972,674 |
| Trustee deferred compensation and retirement plans | 326,168 |
| Total liabilities | 23,112,117 |
| Net assets applicable to shares outstanding | $1,476,098,416 |
| Net assets consist of: | |
| Shares of beneficial interest | $1,221,946,918 |
| Distributable earnings | 254,151,498 |
| | $1,476,098,416 |
| Net Assets: |
| Class A | $393,953,387 |
| Class C | $5,262,813 |
| Class Y | $520,979,608 |
| Class R5 | $161,446,287 |
| Class R6 | $394,456,321 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 11,530,749 |
| Class C | 157,840 |
| Class Y | 15,238,310 |
| Class R5 | 4,737,478 |
| Class R6 | 11,580,756 |
| Class A: | |
| Net asset value per share | $34.17 |
Maximum offering price per share
(Net asset value of $34.17 ÷ 94.50%) | $36.16 |
| Class C: | |
| Net asset value and offering price per share | $33.34 |
| Class Y: | |
| Net asset value and offering price per share | $34.19 |
| Class R5: | |
| Net asset value and offering price per share | $34.08 |
| Class R6: | |
| Net asset value and offering price per share | $34.06 |
| * | At October 31, 2024, securities with an aggregate value of $15,767,283 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco EQV Emerging Markets All Cap Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Dividends (net of foreign withholding taxes of $5,614,422) | $33,279,080 |
| Dividends from affiliates (includes net securities lending income of $20,316) | 2,713,388 |
| Foreign withholding tax claims | 64,468 |
| Total investment income | 36,056,936 |
| Expenses: | |
| Advisory fees | 13,671,521 |
| Administrative services fees | 216,041 |
| Custodian fees | 440,107 |
| Distribution fees: | |
| Class A | 1,016,448 |
| Class C | 64,549 |
| Transfer agent fees — A, C and Y | 1,551,052 |
| Transfer agent fees — R5 | 155,154 |
| Transfer agent fees — R6 | 129,197 |
| Trustees’ and officers’ fees and benefits | 38,109 |
| Registration and filing fees | 93,523 |
| Reports to shareholders | 570,281 |
| Professional services fees | 110,237 |
| Other | 31,569 |
| Total expenses | 18,087,788 |
| Less: Fees waived and/or expense offset arrangement(s) | (79,704) |
| Net expenses | 18,008,084 |
| Net investment income | 18,048,852 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities (net of foreign taxes of $52,174) | 37,758,168 |
| Affiliated investment securities | 3,680 |
| Foreign currencies | (5,320,375) |
| | 32,441,473 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities (net of foreign taxes of $1,839,514) | 128,044,276 |
| Affiliated investment securities | (3,617) |
| Foreign currencies | 1,512,909 |
| | 129,553,568 |
| Net realized and unrealized gain | 161,995,041 |
| Net increase in net assets resulting from operations | $180,043,893 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco EQV Emerging Markets All Cap Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $18,048,852 | $27,431,098 |
| Net realized gain (loss) | 32,441,473 | (27,949,934) |
| Change in net unrealized appreciation | 129,553,568 | 218,302,372 |
| Net increase in net assets resulting from operations | 180,043,893 | 217,783,536 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (6,398,649) | (5,022,561) |
| Class C | (53,903) | (19,299) |
| Class Y | (10,036,966) | (9,215,710) |
| Class R5 | (2,672,144) | (2,292,630) |
| Class R6 | (9,241,518) | (7,971,139) |
| Total distributions from distributable earnings | (28,403,180) | (24,521,339) |
| Share transactions–net: | | |
| Class A | (44,260,953) | (37,292,996) |
| Class C | (2,726,488) | (1,330,548) |
| Class Y | (68,412,954) | (128,867,710) |
| Class R5 | 9,322,743 | (14,194,837) |
| Class R6 | (103,572,829) | (47,534,532) |
| Net increase (decrease) in net assets resulting from share transactions | (209,650,481) | (229,220,623) |
| Net increase (decrease) in net assets | (58,009,768) | (35,958,426) |
| Net assets: | | |
| Beginning of year | 1,534,108,184 | 1,570,066,610 |
| End of year | $1,476,098,416 | $1,534,108,184 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco EQV Emerging Markets All Cap Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $31.00 | $0.31 | $3.36 | $3.67 | $(0.50) | $— | $(0.50) | $34.17 | 11.95% | $393,953 | 1.40% | 1.40% | 0.94% | 20% |
| Year ended 10/31/23 | 27.75 | 0.44 | 3.17 | 3.61 | (0.36) | — | (0.36) | 31.00 | 13.01 | 398,691 | 1.33 | 1.34 | 1.36 | 11 |
| Year ended 10/31/22 | 41.94 | 0.36 | (12.84) | (12.48) | (0.21) | (1.50) | (1.71) | 27.75 | (30.89) | 388,330 | 1.39 | 1.39 | 1.06 | 17 |
| Year ended 10/31/21 | 38.27 | 0.26 | 5.58 | 5.84 | (0.40) | (1.77) | (2.17) | 41.94 | 15.22 | 591,114 | 1.31 | 1.31 | 0.61 | 19 |
| Year ended 10/31/20 | 36.81 | 0.27 | 1.76 | 2.03 | (0.57) | — | (0.57) | 38.27 | 5.54 | 552,262 | 1.37 | 1.38 | 0.76 | 33 |
| Class C |
| Year ended 10/31/24 | 30.23 | 0.06 | 3.28 | 3.34 | (0.23) | — | (0.23) | 33.34 | 11.08 | 5,263 | 2.15 | 2.15 | 0.19 | 20 |
| Year ended 10/31/23 | 27.01 | 0.19 | 3.10 | 3.29 | (0.07) | — | (0.07) | 30.23 | 12.17 | 7,317 | 2.08 | 2.09 | 0.61 | 11 |
| Year ended 10/31/22 | 40.94 | 0.11 | (12.54) | (12.43) | — | (1.50) | (1.50) | 27.01 | (31.40) | 7,696 | 2.14 | 2.14 | 0.31 | 17 |
| Year ended 10/31/21 | 37.38 | (0.06) | 5.45 | 5.39 | (0.06) | (1.77) | (1.83) | 40.94 | 14.35 | 15,632 | 2.06 | 2.06 | (0.14) | 19 |
| Year ended 10/31/20 | 35.83 | 0.00 | 1.71 | 1.71 | (0.16) | — | (0.16) | 37.38 | 4.78 | 16,812 | 2.12 | 2.13 | 0.01 | 33 |
| Class Y |
| Year ended 10/31/24 | 31.03 | 0.40 | 3.35 | 3.75 | (0.59) | — | (0.59) | 34.19 | 12.20 | 520,980 | 1.15 | 1.15 | 1.19 | 20 |
| Year ended 10/31/23 | 27.78 | 0.52 | 3.18 | 3.70 | (0.45) | — | (0.45) | 31.03 | 13.30 | 537,072 | 1.08 | 1.09 | 1.61 | 11 |
| Year ended 10/31/22 | 42.00 | 0.44 | (12.84) | (12.40) | (0.32) | (1.50) | (1.82) | 27.78 | (30.71) | 591,206 | 1.14 | 1.14 | 1.31 | 17 |
| Year ended 10/31/21 | 38.32 | 0.37 | 5.58 | 5.95 | (0.50) | (1.77) | (2.27) | 42.00 | 15.50 | 1,062,846 | 1.06 | 1.06 | 0.86 | 19 |
| Year ended 10/31/20 | 36.85 | 0.36 | 1.78 | 2.14 | (0.67) | — | (0.67) | 38.32 | 5.82 | 1,015,412 | 1.12 | 1.13 | 1.01 | 33 |
| Class R5 |
| Year ended 10/31/24 | 30.93 | 0.42 | 3.34 | 3.76 | (0.61) | — | (0.61) | 34.08 | 12.28 | 161,446 | 1.09 | 1.09 | 1.25 | 20 |
| Year ended 10/31/23 | 27.70 | 0.54 | 3.17 | 3.71 | (0.48) | — | (0.48) | 30.93 | 13.36 | 137,177 | 1.03 | 1.04 | 1.66 | 11 |
| Year ended 10/31/22 | 41.88 | 0.46 | (12.80) | (12.34) | (0.34) | (1.50) | (1.84) | 27.70 | (30.68) | 135,693 | 1.07 | 1.07 | 1.38 | 17 |
| Year ended 10/31/21 | 38.22 | 0.39 | 5.57 | 5.96 | (0.53) | (1.77) | (2.30) | 41.88 | 15.56 | 215,122 | 1.02 | 1.02 | 0.90 | 19 |
| Year ended 10/31/20 | 36.76 | 0.39 | 1.77 | 2.16 | (0.70) | — | (0.70) | 38.22 | 5.90 | 182,631 | 1.05 | 1.06 | 1.08 | 33 |
| Class R6 |
| Year ended 10/31/24 | 30.92 | 0.44 | 3.34 | 3.78 | (0.64) | — | (0.64) | 34.06 | 12.34 | 394,456 | 1.02 | 1.02 | 1.32 | 20 |
| Year ended 10/31/23 | 27.70 | 0.56 | 3.16 | 3.72 | (0.50) | — | (0.50) | 30.92 | 13.42 | 453,850 | 0.96 | 0.97 | 1.73 | 11 |
| Year ended 10/31/22 | 41.89 | 0.48 | (12.79) | (12.31) | (0.38) | (1.50) | (1.88) | 27.70 | (30.60) | 447,141 | 1.00 | 1.00 | 1.45 | 17 |
| Year ended 10/31/21 | 38.22 | 0.42 | 5.58 | 6.00 | (0.56) | (1.77) | (2.33) | 41.89 | 15.67 | 741,346 | 0.93 | 0.93 | 0.99 | 19 |
| Year ended 10/31/20 | 36.76 | 0.42 | 1.76 | 2.18 | (0.72) | — | (0.72) | 38.22 | 5.96 | 497,383 | 0.96 | 0.97 | 1.17 | 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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco EQV Emerging Markets All Cap Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco EQV Emerging Markets All Cap Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
The Fund currently consists of five different classes of shares: Class A, Class C, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 8 | Invesco EQV Emerging Markets All Cap Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all. |
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund did not enter into any closing agreements.
| G. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds |
| 9 | Invesco EQV Emerging Markets All Cap Fund |
| | (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser $1,688 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| M. | Other Risks - 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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information. |
Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; lack of willingness or ability of the Chinese government to support the economies and markets of the Greater China region; difficulty in obtaining information necessary for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; lack of publicly available information; limited legal remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts and the risk of war, either internal or with other countries; public health
| 10 | Invesco EQV Emerging Markets All Cap Fund |
emergencies resulting in market closures, travel restrictions, quarantines or other interventions; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole.
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region. In addition, export growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products and services, the institution of tariffs, sanctions, capital controls, embargoes, trade wars or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. The current political climate has intensified concerns about a potential trade war between China and the U.S., as each country has recently imposed tariffs on the other country’s products. Further, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.
Certain securities issued by companies located or operating in Greater China, such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations, and operational, clearing and settlement risks. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events. The liquidity of Chinese securities may shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate |
| First $250 million | 0.935% |
| Next $250 million | 0.910% |
| Next $500 million | 0.885% |
| Next $1.5 billion | 0.860% |
| Next $2.5 billion | 0.835% |
| Next $2.5 billion | 0.810% |
| Next $2.5 billion | 0.785% |
| Over $10 billion | 0.760% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.89%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $57,222.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the
| 11 | Invesco EQV Emerging Markets All Cap Fund |
shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $19,063 in front-end sales commissions from the sale of Class A shares and $1,967 and $1,652 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $5,209 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Brazil | $123,537,039 | $— | $— | $123,537,039 |
| China | — | 337,791,104 | — | 337,791,104 |
| Egypt | 12,112,515 | 17,385,006 | — | 29,497,521 |
| France | — | 40,428,681 | — | 40,428,681 |
| Hong Kong | — | 28,589,135 | — | 28,589,135 |
| Hungary | — | 57,020,616 | — | 57,020,616 |
| India | 76,496,022 | 83,910,859 | — | 160,406,881 |
| Indonesia | — | 96,143,836 | — | 96,143,836 |
| Macau | — | 13,418,491 | — | 13,418,491 |
| Malaysia | — | 19,788,049 | — | 19,788,049 |
| Mexico | 44,677,102 | — | — | 44,677,102 |
| Nigeria | — | 10,846,155 | — | 10,846,155 |
| Philippines | — | 86,716,031 | — | 86,716,031 |
| Poland | — | 17,523,764 | — | 17,523,764 |
| Russia | — | — | 46 | 46 |
| South Africa | — | 20,739,961 | — | 20,739,961 |
| South Korea | — | 54,912,710 | — | 54,912,710 |
| Taiwan | — | 201,086,361 | — | 201,086,361 |
| Thailand | — | 63,708,127 | — | 63,708,127 |
| United Arab Emirates | — | 44,733,894 | — | 44,733,894 |
| Money Market Funds | 27,427,895 | 16,052,880 | — | 43,480,775 |
| Total Investments | $284,250,573 | $1,210,795,660 | $46 | $1,495,046,279 |
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $22,482.
NOTE 5—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
| 12 | Invesco EQV Emerging Markets All Cap Fund |
NOTE 6—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $28,403,180 | $24,521,339 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $19,502,354 |
| Net unrealized appreciation — investments | 257,520,978 |
| Net unrealized appreciation (depreciation) — foreign currencies | (2,820,957) |
| Temporary book/tax differences | (196,029) |
| Capital loss carryforward | (19,854,848) |
| Shares of beneficial interest | 1,221,946,918 |
| Total net assets | $1,476,098,416 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and passive foreign investment companies.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $19,854,848 | $— | $19,854,848 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $296,726,779 and $465,670,670, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $411,359,001 |
| Aggregate unrealized (depreciation) of investments | (153,838,023) |
| Net unrealized appreciation of investments | $257,520,978 |
Cost of investments for tax purposes is $1,237,525,301.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions and passive foreign investment companies, on October 31, 2024, undistributed net investment income was decreased by $4,718,003 and undistributed net realized gain (loss) was increased by $4,718,003. This reclassification had no effect on the net assets or the distributable earnings of the Fund.
| 13 | Invesco EQV Emerging Markets All Cap Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 869,002 | $28,631,953 | | 1,100,674 | $36,106,080 |
| Class C | 23,914 | 771,463 | | 68,980 | 2,230,913 |
| Class Y | 3,628,693 | 120,597,653 | | 3,771,516 | 123,924,186 |
| Class R5 | 1,140,087 | 37,301,867 | | 895,431 | 29,696,138 |
| Class R6 | 1,942,602 | 63,740,201 | | 2,516,875 | 82,665,320 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 187,373 | 6,055,889 | | 136,327 | 4,286,113 |
| Class C | 1,601 | 50,819 | | 523 | 16,142 |
| Class Y | 257,136 | 8,297,773 | | 128,048 | 4,020,698 |
| Class R5 | 79,094 | 2,542,876 | | 72,195 | 2,258,275 |
| Class R6 | 259,099 | 8,322,270 | | 240,455 | 7,514,208 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 34,052 | 1,123,015 | | 40,754 | 1,334,227 |
| Class C | (34,783) | (1,123,015) | | (41,677) | (1,334,227) |
| Reacquired: | | | | | |
| Class A | (2,419,614) | (80,071,810) | | (2,409,540) | (79,019,416) |
| Class C | (74,945) | (2,425,755) | | (70,648) | (2,243,376) |
| Class Y | (5,955,908) | (197,308,380) | | (7,869,136) | (256,812,594) |
| Class R5 | (916,736) | (30,522,000) | | (1,430,461) | (46,149,250) |
| Class R6 | (5,299,925) | (175,635,300) | | (4,221,896) | (137,714,060) |
| Net increase (decrease) in share activity | (6,279,258) | $(209,650,481) | | (7,071,580) | $(229,220,623) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 49% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| 14 | Invesco EQV Emerging Markets All Cap Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco EQV Emerging Markets All Cap Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco EQV Emerging Markets All Cap Fund (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 15 | Invesco EQV Emerging Markets All Cap Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco EQV Emerging Markets All Cap Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI Emerging Markets Index (Index). The Board noted that performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one year period, the third quintile for the three year period and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one and three year periods and above the performance of the Index for the five year period. The Board recognized that
| 16 | Invesco EQV Emerging Markets All Cap Fund |
the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were below and the same as, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money
market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 17 | Invesco EQV Emerging Markets All Cap Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | | |
| Qualified Dividend Income* | 100.00% | |
| Corporate Dividends Received Deduction* | 2.58% | |
| U.S. Treasury Obligations* | 0.00% | |
| Qualified Business Income* | 0.00% | |
| Business Interest Income* | 0.00% | |
| Foreign Taxes | $0.0860 | per share |
| Foreign Source Income | $0.8500 | per share |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 18 | Invesco EQV Emerging Markets All Cap Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 19 | Invesco EQV Emerging Markets All Cap Fund |
| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | DVM-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Fundamental Alternatives Fund
Nasdaq:
A: QVOPX ■ C: QOPCX ■ R: QOPNX ■ Y: QOPYX ■ R5: FDATX ■ R6: QOPIX
Consolidated Schedule of Investments(a)
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–35.48% |
| Aerospace & Defense–0.41% |
| Lockheed Martin Corp. | 588 | $321,079 |
| RTX Corp. | 7,569 | 915,773 |
| | | | 1,236,852 |
| Agricultural Products & Services–0.37% |
| Archer-Daniels-Midland Co. | 9,326 | 514,888 |
| Bunge Global S.A. | 7,087 | 595,450 |
| | | | 1,110,338 |
| Air Freight & Logistics–0.57% |
| C.H. Robinson Worldwide, Inc. | 2,349 | 242,041 |
| Expeditors International of Washington, Inc. | 7,480 | 890,120 |
| FedEx Corp. | 2,181 | 597,267 |
| | | | 1,729,428 |
| Apparel Retail–0.50% |
| Ross Stores, Inc. | 4,196 | 586,265 |
| TJX Cos., Inc. (The) | 8,227 | 929,898 |
| | | | 1,516,163 |
| Application Software–0.98% |
| DocuSign, Inc.(b) | 13,927 | 966,255 |
| Nutanix, Inc., Class A(b) | 2,471 | 153,449 |
| Salesforce, Inc. | 3,467 | 1,010,180 |
| Workday, Inc., Class A(b) | 580 | 135,633 |
| Zoom Video Communications, Inc., Class A(b) | 9,552 | 713,917 |
| | | | 2,979,434 |
| Asset Management & Custody Banks–0.38% |
| Bank of New York Mellon Corp. (The) | 15,369 | 1,158,208 |
| Automobile Manufacturers–0.36% |
| General Motors Co. | 21,815 | 1,107,329 |
| Biotechnology–1.54% |
| AbbVie, Inc. | 7,798 | 1,589,778 |
| Alnylam Pharmaceuticals, Inc.(b) | 902 | 240,464 |
| Amgen, Inc. | 235 | 75,238 |
| Gilead Sciences, Inc. | 7,683 | 682,404 |
| Neurocrine Biosciences, Inc.(b) | 5,529 | 664,973 |
| Regeneron Pharmaceuticals, Inc.(b) | 693 | 580,873 |
| United Therapeutics Corp.(b) | 2,263 | 846,294 |
| | | | 4,680,024 |
| Brewers–0.21% |
| Molson Coors Beverage Co., Class B | 11,440 | 623,137 |
| Broadline Retail–0.77% |
| Amazon.com, Inc.(b) | 9,135 | 1,702,764 |
| eBay, Inc. | 11,180 | 642,962 |
| | | | 2,345,726 |
| Building Products–0.35% |
| Carlisle Cos., Inc. | 893 | 377,051 |
| Masco Corp. | 1,711 | 136,726 |
| | Shares | Value |
| Building Products–(continued) |
| Owens Corning | 2,162 | $382,220 |
| Trane Technologies PLC | 444 | 164,351 |
| | | | 1,060,348 |
| Cable & Satellite–0.13% |
| Comcast Corp., Class A | 9,017 | 393,772 |
| Commodity Chemicals–0.04% |
| LyondellBasell Industries N.V., Class A | 1,380 | 119,853 |
| Communications Equipment–0.79% |
| F5, Inc.(b) | 3,270 | 764,788 |
| Motorola Solutions, Inc. | 3,638 | 1,634,735 |
| | | | 2,399,523 |
| Computer & Electronics Retail–0.04% |
| Best Buy Co., Inc. | 1,376 | 124,432 |
| Construction & Engineering–0.21% |
| EMCOR Group, Inc. | 1,432 | 638,772 |
Construction Machinery & Heavy Transportation Equipment–
0.19% |
| Wabtec Corp. | 2,999 | 563,752 |
| Consumer Electronics–0.05% |
| Garmin Ltd. | 833 | 165,225 |
| Consumer Finance–0.52% |
| Ally Financial, Inc. | 4,670 | 163,684 |
| American Express Co. | 1,589 | 429,157 |
| Capital One Financial Corp. | 586 | 95,395 |
| Synchrony Financial | 16,244 | 895,694 |
| | | | 1,583,930 |
| Consumer Staples Merchandise Retail–0.86% |
| Costco Wholesale Corp. | 410 | 358,414 |
| Target Corp. | 4,248 | 637,370 |
| Walmart, Inc. | 19,560 | 1,602,942 |
| | | | 2,598,726 |
| Data Processing & Outsourced Services–0.07% |
| SS&C Technologies Holdings, Inc. | 3,151 | 220,349 |
| Diversified Banks–0.79% |
| Bank of America Corp. | 10,678 | 446,554 |
| Citigroup, Inc. | 9,097 | 583,755 |
| JPMorgan Chase & Co. | 4,301 | 954,478 |
| Wells Fargo & Co. | 6,283 | 407,892 |
| | | | 2,392,679 |
| Diversified Support Services–0.08% |
| Cintas Corp. | 1,256 | 258,497 |
| Electric Utilities–1.52% |
| American Electric Power Co., Inc. | 7,093 | 700,434 |
| Duke Energy Corp. | 15,299 | 1,763,516 |
| NRG Energy, Inc. | 11,765 | 1,063,556 |
| PPL Corp. | 9,666 | 314,725 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Fundamental Alternatives Fund |
| | Shares | Value |
| Electric Utilities–(continued) |
| Southern Co. (The) | 1,535 | $139,731 |
| Xcel Energy, Inc. | 9,371 | 626,076 |
| | | | 4,608,038 |
| Electronic Components–0.19% |
| Amphenol Corp., Class A | 8,730 | 585,085 |
| Electronic Manufacturing Services–0.07% |
| Flex Ltd.(b) | 6,328 | 219,392 |
| Environmental & Facilities Services–0.66% |
| Republic Services, Inc. | 7,277 | 1,440,846 |
| Waste Management, Inc. | 2,656 | 573,298 |
| | | | 2,014,144 |
| Fertilizers & Agricultural Chemicals–0.07% |
| CF Industries Holdings, Inc. | 2,414 | 198,503 |
| Food Distributors–0.13% |
| Sysco Corp. | 1,204 | 90,240 |
| US Foods Holding Corp.(b) | 5,148 | 317,374 |
| | | | 407,614 |
| Food Retail–0.05% |
| Kroger Co. (The) | 2,665 | 148,627 |
| Footwear–0.03% |
| Deckers Outdoor Corp.(b) | 654 | 105,222 |
| Gas Utilities–0.21% |
| Atmos Energy Corp. | 4,542 | 630,339 |
| Health Care Distributors–1.16% |
| Cardinal Health, Inc. | 8,133 | 882,593 |
| Cencora, Inc. | 6,232 | 1,421,395 |
| McKesson Corp. | 2,429 | 1,215,933 |
| | | | 3,519,921 |
| Health Care Equipment–0.17% |
| Medtronic PLC | 2,931 | 261,592 |
| ResMed, Inc. | 1,015 | 246,107 |
| | | | 507,699 |
| Health Care Facilities–0.42% |
| HCA Healthcare, Inc. | 1,592 | 571,114 |
| Universal Health Services, Inc., Class B | 3,473 | 709,569 |
| | | | 1,280,683 |
| Health Care Services–0.62% |
| Cigna Group (The) | 3,274 | 1,030,688 |
| DaVita, Inc.(b)(c) | 6,122 | 855,917 |
| | | | 1,886,605 |
| Hotels, Resorts & Cruise Lines–0.59% |
| Booking Holdings, Inc. | 143 | 668,704 |
| Carnival Corp.(b) | 9,308 | 204,776 |
| Expedia Group, Inc.(b) | 4,049 | 632,899 |
| Royal Caribbean Cruises Ltd. | 1,367 | 282,080 |
| | | | 1,788,459 |
| Household Products–0.75% |
| Colgate-Palmolive Co. | 14,669 | 1,374,632 |
| | Shares | Value |
| Household Products–(continued) |
| Kimberly-Clark Corp. | 6,635 | $890,284 |
| | | | 2,264,916 |
| Independent Power Producers & Energy Traders–0.34% |
| Vistra Corp. | 8,190 | 1,023,422 |
| Industrial Conglomerates–0.14% |
| 3M Co. | 3,358 | 431,402 |
| Integrated Oil & Gas–0.12% |
| Exxon Mobil Corp. | 3,098 | 361,784 |
| Integrated Telecommunication Services–0.41% |
| AT&T, Inc. | 45,706 | 1,030,213 |
| Verizon Communications, Inc. | 4,740 | 199,696 |
| | | | 1,229,909 |
| Interactive Home Entertainment–0.20% |
| Electronic Arts, Inc. | 3,942 | 594,651 |
| Interactive Media & Services–1.12% |
| Alphabet, Inc., Class A | 9,878 | 1,690,225 |
| Meta Platforms, Inc., Class A | 2,997 | 1,701,037 |
| | | | 3,391,262 |
| Internet Services & Infrastructure–0.69% |
| Akamai Technologies, Inc.(b) | 1,705 | 172,341 |
| GoDaddy, Inc., Class A(b) | 7,401 | 1,234,487 |
| Twilio, Inc., Class A(b) | 7,167 | 578,019 |
| VeriSign, Inc.(b) | 619 | 109,464 |
| | | | 2,094,311 |
| Investment Banking & Brokerage–0.36% |
| Goldman Sachs Group, Inc. (The) | 1,805 | 934,611 |
| Morgan Stanley | 1,471 | 171,004 |
| | | | 1,105,615 |
| IT Consulting & Other Services–0.66% |
| Amdocs Ltd. | 2,526 | 221,644 |
| International Business Machines Corp. | 8,596 | 1,776,965 |
| | | | 1,998,609 |
| Life & Health Insurance–0.08% |
| Prudential Financial, Inc. | 1,952 | 239,081 |
| Managed Health Care–0.20% |
| Centene Corp.(b) | 7,370 | 458,856 |
| UnitedHealth Group, Inc. | 245 | 138,303 |
| | | | 597,159 |
| Movies & Entertainment–0.12% |
| Spotify Technology S.A. (Sweden)(b) | 687 | 264,564 |
| Walt Disney Co. (The) | 917 | 88,215 |
| | | | 352,779 |
| Multi-Sector Holdings–0.58% |
| Berkshire Hathaway, Inc., Class B(b) | 3,883 | 1,750,922 |
| Multi-Utilities–0.23% |
| Consolidated Edison, Inc. | 3,130 | 318,258 |
| DTE Energy Co. | 3,034 | 376,884 |
| | | | 695,142 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Fundamental Alternatives Fund |
| | Shares | Value |
| Oil & Gas Equipment & Services–0.27% |
| Baker Hughes Co., Class A | 12,306 | $468,612 |
| Halliburton Co. | 8,328 | 231,019 |
| Schlumberger N.V. | 2,631 | 105,424 |
| | | | 805,055 |
| Oil & Gas Exploration & Production–1.05% |
| ConocoPhillips | 5,270 | 577,276 |
| Coterra Energy, Inc. | 15,288 | 365,689 |
| Devon Energy Corp. | 26,294 | 1,017,052 |
| Diamondback Energy, Inc. | 627 | 110,835 |
| EOG Resources, Inc. | 5,821 | 709,929 |
| Ovintiv, Inc. | 10,489 | 411,169 |
| Sabine Oil & Gas Holdings, Inc.(b)(d) | 115 | 10 |
| | | | 3,191,960 |
| Oil & Gas Refining & Marketing–0.29% |
| Marathon Petroleum Corp. | 3,348 | 487,034 |
| Valero Energy Corp. | 2,969 | 385,257 |
| | | | 872,291 |
| Oil & Gas Storage & Transportation–0.12% |
| Kinder Morgan, Inc. | 14,585 | 357,478 |
| Packaged Foods & Meats–0.43% |
| Conagra Brands, Inc. | 8,237 | 238,379 |
| General Mills, Inc.(c) | 6,732 | 457,911 |
| Kraft Heinz Co. (The) | 12,892 | 431,366 |
| Tyson Foods, Inc., Class A | 3,092 | 181,160 |
| | | | 1,308,816 |
| Paper & Plastic Packaging Products & Materials–0.16% |
| Packaging Corp. of America | 2,176 | 498,173 |
| Passenger Airlines–0.13% |
| United Airlines Holdings, Inc.(b) | 5,144 | 402,569 |
| Pharmaceuticals–1.35% |
| Bristol-Myers Squibb Co. | 13,192 | 735,718 |
| Eli Lilly and Co. | 781 | 648,027 |
| Johnson & Johnson | 10,528 | 1,683,006 |
| Merck & Co., Inc. | 6,125 | 626,710 |
| Viatris, Inc. | 35,727 | 414,433 |
| | | | 4,107,894 |
| Property & Casualty Insurance–1.09% |
| Allstate Corp. (The) | 1,998 | 372,667 |
| Assurant, Inc. | 3,357 | 643,537 |
| Hartford Financial Services Group, Inc. (The) | 5,203 | 574,619 |
| Loews Corp. | 6,494 | 512,766 |
| Progressive Corp. (The) | 4,966 | 1,205,894 |
| | | | 3,309,483 |
| Rail Transportation–0.22% |
| Union Pacific Corp. | 2,910 | 675,324 |
| Reinsurance–0.10% |
| Reinsurance Group of America, Inc. | 1,433 | 302,478 |
| Research & Consulting Services–0.39% |
| Leidos Holdings, Inc. | 6,459 | 1,183,030 |
| | Shares | Value |
| Restaurants–0.05% |
| Texas Roadhouse, Inc. | 789 | $150,794 |
| Semiconductor Materials & Equipment–0.48% |
| Applied Materials, Inc. | 5,081 | 922,608 |
| KLA Corp. | 185 | 123,253 |
| Lam Research Corp. | 5,490 | 408,181 |
| | | | 1,454,042 |
| Semiconductors–2.02% |
| Broadcom, Inc. | 5,287 | 897,574 |
| Micron Technology, Inc. | 2,007 | 199,998 |
| NVIDIA Corp. | 26,847 | 3,564,208 |
| Qorvo, Inc.(b) | 2,557 | 182,212 |
| QUALCOMM, Inc. | 7,976 | 1,298,253 |
| | | | 6,142,245 |
| Soft Drinks & Non-alcoholic Beverages–0.22% |
| Coca-Cola Co. (The) | 10,318 | 673,868 |
| Specialty Chemicals–0.14% |
| Ecolab, Inc. | 1,141 | 280,378 |
| International Flavors & Fragrances, Inc. | 1,353 | 134,529 |
| | | | 414,907 |
| Steel–0.37% |
| Nucor Corp. | 2,501 | 354,742 |
| Steel Dynamics, Inc. | 5,954 | 776,997 |
| | | | 1,131,739 |
| Systems Software–1.51% |
| Microsoft Corp. | 8,927 | 3,627,486 |
| Oracle Corp. | 3,896 | 653,905 |
| Palo Alto Networks, Inc.(b) | 429 | 154,582 |
| ServiceNow, Inc.(b) | 162 | 151,144 |
| | | | 4,587,117 |
| Technology Distributors–0.14% |
| TD SYNNEX Corp. | 3,595 | 414,683 |
| Technology Hardware, Storage & Peripherals–1.69% |
| Apple, Inc. | 16,324 | 3,687,754 |
| Dell Technologies, Inc., Class C | 2,184 | 270,008 |
| NetApp, Inc. | 10,264 | 1,183,542 |
| | | | 5,141,304 |
| Tobacco–0.61% |
| Altria Group, Inc. | 25,624 | 1,395,483 |
| Philip Morris International, Inc. | 3,488 | 462,858 |
| | | | 1,858,341 |
| Transaction & Payment Processing Services–0.55% |
| Fidelity National Information Services, Inc. | 9,168 | 822,645 |
| Fiserv, Inc.(b) | 4,286 | 848,199 |
| | | | 1,670,844 |
| Total Common Stocks & Other Equity Interests (Cost $78,494,007) | 107,692,227 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Fundamental Alternatives Fund |
| | | Principal
Amount | Value |
| U.S. Treasury Securities–13.81% |
| U.S. Treasury Bills–0.10% |
| 4.78% - 4.83%, 01/30/2025(e)(f) | | | $301,000 | $297,663 |
| U.S. Treasury Bonds–0.19% |
| 5.25%, 11/15/2028 | | | 565,000 | 588,174 |
| U.S. Treasury Notes–13.52% |
| 1.13%, 01/15/2025 | | | 4,100,000 | 4,070,978 |
| 5.00%, 09/30/2025 | | | 15,700,000 | 15,788,605 |
| 0.38%, 12/31/2025 | | | 9,100,000 | 8,700,987 |
| 2.63%, 05/31/2027 | | | 12,950,000 | 12,477,527 |
| | | | | 41,038,097 |
| Total U.S. Treasury Securities (Cost $42,555,999) | | 41,923,934 |
| U.S. Dollar Denominated Bonds & Notes–7.66% |
| Aerospace & Defense–0.12% |
| Boeing Co. (The), | | | |
| 2.75%, 02/01/2026 | | | 177,000 | 171,661 |
| 2.25%, 06/15/2026 | | | 200,000 | 190,680 |
| | | | | 362,341 |
| Agricultural & Farm Machinery–0.07% |
| John Deere Capital Corp., | | | |
| 4.90%, 03/03/2028 | | | 100,000 | 101,159 |
| 4.85%, 06/11/2029 | | | 100,000 | 100,975 |
| | | | | 202,134 |
| Apparel Retail–0.03% |
| Ross Stores, Inc., 0.88%, 04/15/2026 | | | 100,000 | 94,784 |
| Apparel, Accessories & Luxury Goods–0.02% |
| Tapestry, Inc., 4.13%, 07/15/2027 | | | 65,000 | 63,298 |
| Asset Management & Custody Banks–0.08% |
| Ares Capital Corp., 2.88%, 06/15/2028 | | | 155,000 | 141,521 |
| Legg Mason, Inc., 4.75%, 03/15/2026 | | | 90,000 | 89,964 |
| | | | | 231,485 |
| Automobile Manufacturers–0.38% |
| American Honda Finance Corp., 2.35%, 01/08/2027 | | | 225,000 | 215,214 |
| General Motors Co., 4.20%, 10/01/2027 | | | 80,000 | 78,509 |
| PACCAR Financial Corp., | | | |
| 4.95%, 08/10/2028 | | | 60,000 | 60,944 |
| 4.60%, 01/31/2029 | | | 120,000 | 120,398 |
| Toyota Motor Corp. (Japan), 5.12%, 07/13/2028 | | | 120,000 | 122,444 |
| Toyota Motor Credit Corp., | | | |
| 3.20%, 01/11/2027 | | | 130,000 | 126,718 |
| 1.15%, 08/13/2027 | | | 200,000 | 182,968 |
| 4.55%, 09/20/2027 | | | 240,000 | 240,592 |
| | | | | 1,147,787 |
| Broadcasting–0.14% |
| Discovery Communications LLC, 3.95%, 03/20/2028 | | | 270,000 | 255,069 |
| Paramount Global, 3.70%, 06/01/2028 | | | 165,000 | 154,380 |
| | | | | 409,449 |
| | | Principal
Amount | Value |
| Broadline Retail–0.11% |
| Amazon.com, Inc., 3.30%, 04/13/2027(c) | | | $350,000 | $341,903 |
| Cargo Ground Transportation–0.14% |
| Ryder System, Inc., | | | |
| 5.65%, 03/01/2028 | | | 220,000 | 225,901 |
| 6.30%, 12/01/2028 | | | 180,000 | 189,973 |
| | | | | 415,874 |
| Computer & Electronics Retail–0.02% |
| Dell International LLC/EMC Corp., 6.02%, 06/15/2026 | | | 63,000 | 64,085 |
Construction Machinery & Heavy Transportation Equipment–
0.14% |
| Caterpillar Financial Services Corp., | | | |
| 1.10%, 09/14/2027 | | | 175,000 | 160,092 |
| 4.85%, 02/27/2029 | | | 60,000 | 60,792 |
| Wabtec Corp., 3.45%, 11/15/2026 | | | 200,000 | 195,145 |
| | | | | 416,029 |
| Consumer Electronics–0.03% |
| Tyco Electronics Group S.A. (Switzerland), 3.13%, 08/15/2027 | | | 100,000 | 96,405 |
| Consumer Finance–0.16% |
| American Express Co., 3.30%, 05/03/2027 | | | 170,000 | 164,826 |
| General Motors Financial Co., Inc., | | | |
| 5.25%, 03/01/2026 | | | 50,000 | 50,155 |
| 2.40%, 10/15/2028 | | | 150,000 | 135,721 |
| 5.80%, 01/07/2029 | | | 120,000 | 122,892 |
| | | | | 473,594 |
| Copper–0.03% |
| Freeport-McMoRan, Inc., 5.00%, 09/01/2027 | | | 100,000 | 99,984 |
| Distillers & Vintners–0.06% |
| Constellation Brands, Inc., 3.70%, 12/06/2026 | | | 175,000 | 171,558 |
| Diversified Banks–1.85% |
| Banco Santander S.A. (Spain), 4.25%, 04/11/2027 | | | 200,000 | 197,118 |
| Bank of America Corp., | | | |
| 4.45%, 03/03/2026 | | | 269,000 | 267,681 |
| 3.50%, 04/19/2026 | | | 185,000 | 182,229 |
| 1.32%, 06/19/2026(g) | | | 195,000 | 190,481 |
| 1.20%, 10/24/2026(g) | | | 205,000 | 197,794 |
| 1.73%, 07/22/2027(g) | | | 80,000 | 75,958 |
| Series L, 4.18%, 11/25/2027 | | | 210,000 | 206,287 |
| Citigroup, Inc., | | | |
| 1.12%, 01/28/2027(g) | | | 130,000 | 124,135 |
| 1.46%, 06/09/2027(g) | | | 210,000 | 199,170 |
| Comerica, Inc., 4.00%, 02/01/2029(c) | | | 480,000 | 456,816 |
| Fifth Third Bancorp, 6.36%, 10/27/2028(g) | | | 120,000 | 124,477 |
| ING Groep N.V. (Netherlands), 4.02%, 03/28/2028(g) | | | 200,000 | 196,002 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Fundamental Alternatives Fund |
| | | Principal
Amount | Value |
| Diversified Banks–(continued) |
| JPMorgan Chase & Co., | | | |
| 4.25%, 10/01/2027 | | | $50,000 | $49,592 |
| 3.63%, 12/01/2027 | | | 165,000 | 159,487 |
| 2.18%, 06/01/2028(g) | | | 115,000 | 107,736 |
| 4.20%, 07/23/2029(g) | | | 240,000 | 234,714 |
| Mitsubishi UFJ Financial Group, Inc. (Japan), 3.29%, 07/25/2027 | | | 75,000 | 72,747 |
| National Australia Bank Ltd. (Australia), 4.94%, 01/12/2028 | | | 250,000 | 253,235 |
| PNC Bank N.A., 4.20%, 11/01/2025 | | | 380,000 | 378,178 |
| Royal Bank of Canada (Canada), 4.65%, 01/27/2026 | | | 180,000 | 179,325 |
| Sumitomo Mitsui Financial Group, Inc. (Japan), | | | |
| 2.63%, 07/14/2026 | | | 100,000 | 96,788 |
| 3.45%, 01/11/2027 | | | 60,000 | 58,567 |
| 3.54%, 01/17/2028 | | | 240,000 | 231,349 |
| 1.90%, 09/17/2028 | | | 200,000 | 179,677 |
| Toronto-Dominion Bank (The) (Canada), | | | |
| 5.53%, 07/17/2026 | | | 240,000 | 243,350 |
| 5.16%, 01/10/2028 | | | 65,000 | 65,711 |
| Wells Fargo & Co., | | | |
| 2.19%, 04/30/2026(g) | | | 190,000 | 187,283 |
| 4.30%, 07/22/2027 | | | 175,000 | 172,731 |
| 6.30%, 10/23/2029(g) | | | 180,000 | 188,673 |
| Westpac Banking Corp. (Australia), | | | |
| 3.35%, 03/08/2027 | | | 165,000 | 161,189 |
| 1.95%, 11/20/2028 | | | 210,000 | 190,088 |
| | | | | 5,628,568 |
| Diversified Capital Markets–0.15% |
| Deutsche Bank AG (Germany), | | | |
| 2.55%, 01/07/2028(g) | | | 150,000 | 141,845 |
| 5.41%, 05/10/2029 | | | 150,000 | 152,315 |
| 6.82%, 11/20/2029(g) | | | 150,000 | 158,173 |
| | | | | 452,333 |
| Diversified Financial Services–0.05% |
| Corebridge Financial, Inc., 3.65%, 04/05/2027 | | | 170,000 | 165,672 |
| Electric Utilities–0.47% |
| Edison International, | | | |
| 5.75%, 06/15/2027 | | | 125,000 | 127,665 |
| 4.13%, 03/15/2028 | | | 235,000 | 229,594 |
| 5.25%, 11/15/2028 | | | 65,000 | 65,509 |
| Eversource Energy, | | | |
| 5.95%, 02/01/2029 | | | 120,000 | 124,681 |
| Series O, 4.25%, 04/01/2029 | | | 60,000 | 58,562 |
| Pacific Gas and Electric Co., | | | |
| 2.10%, 08/01/2027 | | | 75,000 | 69,786 |
| 3.30%, 12/01/2027 | | | 125,000 | 119,246 |
| 3.00%, 06/15/2028 | | | 75,000 | 70,284 |
| 4.20%, 03/01/2029 | | | 60,000 | 58,094 |
| PacifiCorp, 5.10%, 02/15/2029 | | | 240,000 | 243,033 |
| Southwestern Electric Power Co., Series M, 4.10%, 09/15/2028 | | | 60,000 | 58,561 |
| System Energy Resources, Inc., 6.00%, 04/15/2028 | | | 195,000 | 201,180 |
| | | | | 1,426,195 |
| | Principal
Amount | Value |
| Electrical Components & Equipment–0.03% |
| Emerson Electric Co., 1.80%, 10/15/2027 | | $100,000 | $92,748 |
| Electronic Equipment & Instruments–0.03% |
| Vontier Corp., 1.80%, 04/01/2026 | | 100,000 | 95,538 |
| Financial Exchanges & Data–0.04% |
| Cboe Global Markets, Inc., 3.65%, 01/12/2027 | | 40,000 | 39,262 |
| Intercontinental Exchange, Inc., 3.10%, 09/15/2027 | | 100,000 | 96,231 |
| | | | 135,493 |
| Gas Utilities–0.03% |
| Southwest Gas Corp., 5.45%, 03/23/2028 | | 100,000 | 101,523 |
| Health Care Equipment–0.04% |
| Baxter International, Inc., 2.27%, 12/01/2028 | | 150,000 | 135,108 |
| Health Care Facilities–0.10% |
| HCA, Inc., 5.63%, 09/01/2028 | | 125,000 | 127,554 |
| Universal Health Services, Inc., 1.65%, 09/01/2026 | | 200,000 | 188,607 |
| | | | 316,161 |
| Health Care REITs–0.06% |
| Omega Healthcare Investors, Inc., 5.25%, 01/15/2026 | | 179,000 | 179,204 |
| Health Care Services–0.03% |
| CommonSpirit Health, 1.55%, 10/01/2025 | | 96,000 | 93,253 |
| Home Improvement Retail–0.05% |
| Home Depot, Inc. (The), 2.50%, 04/15/2027 | | 160,000 | 153,275 |
| Homebuilding–0.03% |
| Lennar Corp., 4.75%, 11/29/2027 | | 80,000 | 80,073 |
| Hotel & Resort REITs–0.03% |
| Host Hotels & Resorts L.P., Series F, 4.50%, 02/01/2026 | | 100,000 | 99,438 |
| Hotels, Resorts & Cruise Lines–0.07% |
| Booking Holdings, Inc., 3.55%, 03/15/2028 | | 70,000 | 67,865 |
| Hyatt Hotels Corp., 4.85%, 03/15/2026 | | 133,000 | 133,016 |
| | | | 200,881 |
| Independent Power Producers & Energy Traders–0.02% |
| AES Corp. (The), 5.45%, 06/01/2028 | | 55,000 | 55,550 |
| Industrial Machinery & Supplies & Components–0.04% |
| Stanley Black & Decker, Inc., 3.40%, 03/01/2026 | | 125,000 | 122,737 |
| Insurance Brokers–0.05% |
| Willis North America, Inc., 4.65%, 06/15/2027 | | 165,000 | 164,479 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Fundamental Alternatives Fund |
| | Principal
Amount | Value |
| Integrated Oil & Gas–0.20% |
| BP Capital Markets America, Inc., 3.54%, 04/06/2027 | | $165,000 | $161,330 |
| Chevron USA, Inc., 1.02%, 08/12/2027 | | 185,000 | 169,164 |
| Exxon Mobil Corp., 3.29%, 03/19/2027 | | 150,000 | 147,059 |
| TotalEnergies Capital S.A. (France), 3.88%, 10/11/2028 | | 120,000 | 117,194 |
| | | | 594,747 |
| Integrated Telecommunication Services–0.03% |
| AT&T, Inc., 1.65%, 02/01/2028 | | 100,000 | 90,853 |
| Investment Banking & Brokerage–0.55% |
| Charles Schwab Corp. (The), 6.20%, 11/17/2029(g) | | 200,000 | 210,186 |
| Goldman Sachs Group, Inc. (The), | | |
| 3.85%, 01/26/2027 | | 165,000 | 161,837 |
| 1.54%, 09/10/2027(g) | | 150,000 | 141,337 |
| 1.95%, 10/21/2027(g) | | 100,000 | 94,575 |
| 3.62%, 03/15/2028(g) | | 160,000 | 155,654 |
| Morgan Stanley, | | |
| 3.63%, 01/20/2027 | | 175,000 | 171,739 |
| 1.59%, 05/04/2027(g) | | 200,000 | 190,719 |
| 6.30%, 10/18/2028(g) | | 325,000 | 338,657 |
| Nomura Holdings, Inc. (Japan), 1.65%, 07/14/2026 | | 200,000 | 189,343 |
| | | | 1,654,047 |
| IT Consulting & Other Services–0.17% |
| International Business Machines Corp., | | |
| 3.45%, 02/19/2026 | | 100,000 | 98,662 |
| 3.30%, 05/15/2026 | | 100,000 | 98,158 |
| 1.70%, 05/15/2027 | | 100,000 | 93,303 |
| Kyndryl Holdings, Inc., 2.05%, 10/15/2026 | | 225,000 | 213,175 |
| | | | 503,298 |
| Leisure Products–0.04% |
| Brunswick Corp., 5.85%, 03/18/2029 | | 120,000 | 122,220 |
| Managed Health Care–0.02% |
| Centene Corp., 2.45%, 07/15/2028 | | 75,000 | 67,565 |
| Multi-line Insurance–0.05% |
| Boardwalk Pipelines L.P., 5.95%, 06/01/2026 | | 140,000 | 141,640 |
| Multi-Utilities–0.03% |
| DTE Energy Co., 4.88%, 06/01/2028 | | 100,000 | 100,203 |
| Oil & Gas Equipment & Services–0.03% |
| Baker Hughes Holdings LLC/Baker Hughes Co-Obligor, Inc., 3.34%, 12/15/2027 | | 100,000 | 96,294 |
| Oil & Gas Refining & Marketing–0.05% |
| HF Sinclair Corp., 5.88%, 04/01/2026 | | 140,000 | 141,371 |
| Oil & Gas Storage & Transportation–0.11% |
| Cheniere Corpus Christi Holdings LLC, 5.13%, 06/30/2027 | | 160,000 | 161,057 |
| | | Principal
Amount | Value |
| Oil & Gas Storage & Transportation–(continued) |
| Energy Transfer L.P., | | | |
| 4.40%, 03/15/2027 | | | $65,000 | $64,480 |
| 5.50%, 06/01/2027 | | | 100,000 | 101,546 |
| | | | | 327,083 |
| Other Specialized REITs–0.03% |
| EPR Properties, 4.75%, 12/15/2026 | | | 100,000 | 99,144 |
| Packaged Foods & Meats–0.12% |
| Conagra Brands, Inc., 1.38%, 11/01/2027 | | | 130,000 | 117,688 |
| Tyson Foods, Inc., | | | |
| 4.00%, 03/01/2026 | | | 190,000 | 187,964 |
| 4.35%, 03/01/2029 | | | 60,000 | 58,580 |
| | | | | 364,232 |
| Paper & Plastic Packaging Products & Materials–0.03% |
| Berry Global, Inc., 1.57%, 01/15/2026 | | | 100,000 | 96,019 |
| Passenger Airlines–0.07% |
| Southwest Airlines Co., 3.45%, 11/16/2027 | | | 65,000 | 62,237 |
| United Airlines Pass-Through Trust, Series 2020-1, Class A, 5.88%, 10/15/2027 | | | 136,480 | 139,679 |
| | | | | 201,916 |
| Pharmaceuticals–0.21% |
| Bristol-Myers Squibb Co., 0.75%, 11/13/2025 | | | 400,000 | 384,993 |
| Utah Acquisition Sub, Inc., 3.95%, 06/15/2026 | | | 200,000 | 196,822 |
| Viatris, Inc., 2.30%, 06/22/2027 | | | 75,000 | 69,941 |
| | | | | 651,756 |
| Property & Casualty Insurance–0.03% |
| Fairfax Financial Holdings Ltd. (Canada), 4.85%, 04/17/2028 | | | 100,000 | 99,604 |
| Regional Banks–0.07% |
| Truist Financial Corp., | | | |
| 1.89%, 06/07/2029(g) | | | 60,000 | 53,979 |
| 7.16%, 10/30/2029(g) | | | 150,000 | 160,836 |
| | | | | 214,815 |
| Retail REITs–0.12% |
| Realty Income Corp., | | | |
| 4.88%, 06/01/2026 | | | 185,000 | 185,556 |
| 4.45%, 09/15/2026 | | | 90,000 | 89,598 |
| Simon Property Group L.P., 3.30%, 01/15/2026 | | | 95,000 | 93,513 |
| | | | | 368,667 |
| Semiconductor Materials & Equipment–0.06% |
| TSMC Arizona Corp. (Taiwan), 4.13%, 04/22/2029 | | | 200,000 | 196,141 |
| Semiconductors–0.07% |
| Broadcom Corp./Broadcom Cayman Finance Ltd., 3.88%, 01/15/2027 | | | 100,000 | 98,375 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Fundamental Alternatives Fund |
| | | Principal
Amount | Value |
| Semiconductors–(continued) |
| Micron Technology, Inc., 4.19%, 02/15/2027 | | | $100,000 | $98,763 |
| | | | | 197,138 |
| Specialty Chemicals–0.03% |
| PPG Industries, Inc., 1.20%, 03/15/2026 | | | 100,000 | 95,319 |
| Steel–0.07% |
| ArcelorMittal S.A. (Luxembourg), 4.55%, 03/11/2026 | | | 200,000 | 199,222 |
| Technology Distributors–0.03% |
| Avnet, Inc., 4.63%, 04/15/2026 | | | 90,000 | 89,523 |
| Technology Hardware, Storage & Peripherals–0.13% |
| Apple, Inc., | | | |
| 3.25%, 02/23/2026 | | | 185,000 | 182,474 |
| 3.20%, 05/11/2027 | | | 75,000 | 73,083 |
| NetApp, Inc., 2.38%, 06/22/2027 | | | 150,000 | 141,781 |
| | | | | 397,338 |
| Telecom Tower REITs–0.09% |
| American Tower Corp., | | | |
| 3.65%, 03/15/2027 | | | 135,000 | 131,682 |
| 3.55%, 07/15/2027 | | | 135,000 | 130,873 |
| | | | | 262,555 |
| Tobacco–0.30% |
| Altria Group, Inc., | | | |
| 4.40%, 02/14/2026 | | | 200,000 | 199,032 |
| 6.20%, 11/01/2028 | | | 120,000 | 125,601 |
| B.A.T Capital Corp. (United Kingdom), | | | |
| 3.22%, 09/06/2026 | | | 200,000 | 194,544 |
| 2.26%, 03/25/2028 | | | 100,000 | 91,782 |
| Philip Morris International, Inc., 4.88%, 02/15/2028(c) | | | 300,000 | 301,623 |
| | | | | 912,582 |
| Trading Companies & Distributors–0.04% |
| Air Lease Corp., 4.63%, 10/01/2028 | | | 135,000 | 133,660 |
| Transaction & Payment Processing Services–0.08% |
| Global Payments, Inc., 2.15%, 01/15/2027 | | | 145,000 | 137,050 |
| Western Union Co. (The), 1.35%, 03/15/2026 | | | 100,000 | 95,120 |
| | | | | 232,170 |
| Wireless Telecommunication Services–0.10% |
| Sprint Capital Corp., 6.88%, 11/15/2028(c) | | | 295,000 | 316,643 |
| Total U.S. Dollar Denominated Bonds & Notes (Cost $23,519,058) | | 23,256,704 |
| Non-U.S. Dollar Denominated Bonds & Notes–3.80%(h) |
| Advertising–0.04% |
| WPP Finance S.A. (United Kingdom), 4.13%, 05/30/2028(i) | | EUR | 100,000 | 111,994 |
| Agricultural Products & Services–0.04% |
| Archer-Daniels-Midland Co., 1.00%, 09/12/2025 | | EUR | 100,000 | 107,013 |
| | Principal
Amount | Value |
| Apparel, Accessories & Luxury Goods–0.04% |
| PVH Corp., 3.13%, 12/15/2027(i) | EUR | 100,000 | $107,962 |
| Automobile Manufacturers–0.26% |
| American Honda Finance Corp., 0.30%, 07/07/2028 | EUR | 103,000 | 101,283 |
| BMW US Capital LLC (Germany), 3.00%, 11/02/2027(i) | EUR | 30,000 | 32,635 |
| Mercedes-Benz International Finance B.V. (Germany), 2.00%, 08/22/2026(i) | EUR | 70,000 | 74,796 |
| Nissan Motor Co. Ltd. (Japan), 2.65%, 03/17/2026(i) | EUR | 100,000 | 107,474 |
| RCI Banque S.A. (France), | | |
| 1.75%, 04/10/2026(i) | EUR | 50,000 | 53,249 |
| 3.88%, 01/12/2029(i) | EUR | 30,000 | 33,125 |
| Volkswagen Financial Services Overseas AG (Germany), | | |
| 0.13%, 02/12/2027(i) | EUR | 150,000 | 152,400 |
| 2.25%, 10/01/2027(i) | EUR | 100,000 | 105,774 |
| Volkswagen Leasing GmbH (Germany), | | |
| 1.50%, 06/19/2026(i) | EUR | 35,000 | 37,024 |
| 0.38%, 07/20/2026(i) | EUR | 75,000 | 77,862 |
| | | | 775,622 |
| Automotive Parts & Equipment–0.03% |
| Toyota Motor Finance (Netherlands) B.V. (Japan), 0.00%, 02/25/2028(i)(j) | EUR | 100,000 | 98,495 |
| Brewers–0.07% |
| Anheuser-Busch InBev S.A./N.V. (Belgium), 2.00%, 03/17/2028(i) | EUR | 100,000 | 106,247 |
| Carlsberg Breweries A/S (Denmark), 0.88%, 07/01/2029(i) | EUR | 100,000 | 98,327 |
| | | | 204,574 |
| Broadcasting–0.04% |
| TDF Infrastructure S.A.S.U. (France), 2.50%, 04/07/2026(i) | EUR | 100,000 | 107,989 |
| Building Products–0.04% |
| Johnson Controls International PLC/Tyco Fire & Security Finance S.C.A., 3.00%, 09/15/2028 | EUR | 100,000 | 108,007 |
| Cable & Satellite–0.03% |
| SES S.A. (Luxembourg), 1.63%, 03/22/2026(i) | EUR | 100,000 | 106,257 |
| Commercial & Residential Mortgage Finance–0.10% |
| Aareal Bank AG (Germany), 0.50%, 04/07/2027(i) | EUR | 300,000 | 304,963 |
| Commodity Chemicals–0.03% |
| Borealis AG (Austria), 1.75%, 12/10/2025(i) | EUR | 90,000 | 96,388 |
| Construction & Engineering–0.07% |
| ISS Global A/S (Denmark), 0.88%, 06/18/2026(i) | EUR | 100,000 | 105,068 |
| Worley US Finance Sub Ltd. (Australia), 0.88%, 06/09/2026(i) | EUR | 100,000 | 104,802 |
| | | | 209,870 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Fundamental Alternatives Fund |
| | Principal
Amount | Value |
| Construction Materials–0.00% |
| Heidelberg Materials Finance (Luxembourg) S.A. (Germany), 1.63%, 04/07/2026(i) | EUR | 7,000 | $7,489 |
| Consumer Electronics–0.03% |
| Whirlpool Finance (Luxembourg) S.a.r.l., 1.10%, 11/09/2027 | EUR | 100,000 | 102,184 |
| Consumer Finance–0.03% |
| General Motors Financial Co., Inc., 0.65%, 09/07/2028(i) | EUR | 103,000 | 101,719 |
| Diversified Banks–0.94% |
| ASB Bank Ltd. (New Zealand), 0.25%, 09/08/2028(i) | EUR | 104,000 | 101,763 |
| Banco Santander S.A. (Spain), | | |
| 3.13%, 01/19/2027(i) | EUR | 100,000 | 108,771 |
| 0.50%, 02/04/2027(i) | EUR | 100,000 | 103,214 |
| Bank of America Corp., 0.58%, 08/24/2028(g)(i) | EUR | 200,000 | 202,945 |
| Bankinter S.A. (Spain), 0.88%, 07/08/2026(i) | EUR | 100,000 | 105,132 |
| Banque Federative du Credit Mutuel S.A. (France), | | |
| 2.13%, 09/12/2026(i) | EUR | 100,000 | 106,399 |
| 0.63%, 11/19/2027(i) | EUR | 100,000 | 100,796 |
| 0.25%, 06/29/2028(i) | EUR | 100,000 | 98,422 |
| BNP Paribas S.A. (France), | | |
| 2.88%, 10/01/2026(i) | EUR | 200,000 | 216,520 |
| 0.25%, 04/13/2027(g)(i) | EUR | 100,000 | 104,426 |
| Credit Agricole S.A. (France), | | |
| 0.38%, 10/21/2025(i) | EUR | 100,000 | 106,355 |
| 1.75%, 03/05/2029(i) | EUR | 100,000 | 101,948 |
| ING Groep N.V. (Netherlands), 0.38%, 09/29/2028(g)(i) | EUR | 100,000 | 100,512 |
| National Bank of Canada (Canada), 3.75%, 01/25/2028(i) | EUR | 100,000 | 110,804 |
| NatWest Group PLC (United Kingdom), 4.07%, 09/06/2028(g)(i) | EUR | 125,000 | 139,336 |
| Raiffeisen Schweiz Genossenschaft (Switzerland), 5.23%, 11/01/2027(i) | EUR | 100,000 | 114,908 |
| Skandinaviska Enskilda Banken AB (Sweden), 0.75%, 08/09/2027(i) | EUR | 300,000 | 307,223 |
| Standard Chartered PLC (United Kingdom), | | |
| 0.90%, 07/02/2027(g)(i) | EUR | 100,000 | 104,969 |
| 0.80%, 11/17/2029(g)(i) | EUR | 103,000 | 101,085 |
| Swedbank AB (Sweden), 0.30%, 05/20/2027(g)(i) | EUR | 200,000 | 208,696 |
| Virgin Money UK PLC (United Kingdom), 4.63%, 10/29/2028(g)(i) | EUR | 100,000 | 112,923 |
| Volkswagen Bank GmbH (Germany), 2.50%, 07/31/2026(i) | EUR | 100,000 | 107,093 |
| | | | 2,864,240 |
| Diversified Capital Markets–0.27% |
| Deutsche Bank AG (Germany), | | |
| 2.63%, 02/12/2026(i) | EUR | 100,000 | 108,080 |
| 0.75%, 02/17/2027(g)(i) | EUR | 100,000 | 105,541 |
| Macquarie Group Ltd. (Australia), 0.63%, 02/03/2027(i) | EUR | 100,000 | 103,238 |
| | Principal
Amount | Value |
| Diversified Capital Markets–(continued) |
| Santander Consumer Finance S.A. (Spain), | | |
| 0.50%, 01/14/2027(i) | EUR | 100,000 | $103,104 |
| 3.75%, 01/17/2029(i) | EUR | 100,000 | 111,050 |
| UBS Group AG (Switzerland), | | |
| 0.65%, 01/14/2028(g)(i) | EUR | 100,000 | 102,816 |
| 0.25%, 11/05/2028(g)(i) | EUR | 200,000 | 199,007 |
| | | | 832,836 |
| Diversified Chemicals–0.07% |
| BASF SE (Germany), 0.25%, 06/05/2027(i) | EUR | 200,000 | 204,292 |
| Diversified Financial Services–0.14% |
| Clearstream Banking AG (Germany), 0.00%, 12/01/2025(i)(j) | EUR | 200,000 | 210,917 |
| JAB Holdings B.V. (Luxembourg), 1.75%, 06/25/2026(i) | EUR | 100,000 | 106,579 |
| NatWest Markets PLC (United Kingdom), 4.25%, 01/13/2028(i) | EUR | 100,000 | 112,717 |
| | | | 430,213 |
| Electric Utilities–0.21% |
| AusNet Services Holdings Pty. Ltd. (Australia), 1.50%, 02/26/2027(i) | EUR | 200,000 | 210,594 |
| Duke Energy Corp., 3.10%, 06/15/2028 | EUR | 100,000 | 108,288 |
| Elenia Verkko OYJ (Finland), 0.38%, 02/06/2027(i) | EUR | 200,000 | 203,855 |
| Vestas Wind Systems Finance B.V. (Denmark), 1.50%, 06/15/2029(i) | EUR | 100,000 | 100,400 |
| | | | 623,137 |
| Gas Utilities–0.04% |
| 2i Rete Gas S.p.A. (Italy), 1.75%, 08/28/2026(i) | EUR | 115,000 | 122,423 |
| Gold–0.03% |
| SELP Finance S.a.r.l. (Luxembourg), 0.88%, 05/27/2029(i) | EUR | 100,000 | 96,531 |
| Health Care Equipment–0.03% |
| DH Europe Finance II S.a.r.l., 0.45%, 03/18/2028 | EUR | 100,000 | 100,294 |
| Health Care Services–0.02% |
| Fresenius Medical Care AG (Germany), 0.63%, 11/30/2026(i) | EUR | 50,000 | 51,888 |
| Highways & Railtracks–0.08% |
| APRR S.A. (France), 0.13%, 01/18/2029(i) | EUR | 100,000 | 96,330 |
| Autostrade per l’Italia S.p.A. (Italy), 2.00%, 12/04/2028(i) | EUR | 135,000 | 139,262 |
| | | | 235,592 |
| Hotels, Resorts & Cruise Lines–0.03% |
| InterContinental Hotels Group PLC (United Kingdom), 2.13%, 05/15/2027(i) | EUR | 100,000 | 106,423 |
| Household Products–0.02% |
| Procter & Gamble Co. (The), 4.88%, 05/11/2027 | EUR | 50,000 | 57,180 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Fundamental Alternatives Fund |
| | Principal
Amount | Value |
| Human Resource & Employment Services–0.04% |
| Randstad N.V. (Netherlands), 3.61%, 03/12/2029(i) | EUR | 100,000 | $109,915 |
| Industrial Machinery & Supplies & Components–0.07% |
| Sandvik AB (Sweden), 0.38%, 11/25/2028(i) | EUR | 100,000 | 97,732 |
| SKF AB (Sweden), 3.13%, 09/14/2028(i) | EUR | 100,000 | 109,353 |
| | | | 207,085 |
| Integrated Oil & Gas–0.10% |
| BP Capital Markets PLC, 1.59%, 07/03/2028(i) | EUR | 100,000 | 103,445 |
| Eni S.p.A. (Italy), 3.63%, 01/29/2029(i) | EUR | 100,000 | 111,409 |
| Shell International Finance B.V., 0.75%, 08/15/2028(i) | EUR | 100,000 | 100,507 |
| | | | 315,361 |
| Investment Banking & Brokerage–0.04% |
| Goldman Sachs Group, Inc. (The), 0.25%, 01/26/2028(i) | EUR | 13,000 | 12,985 |
| Morgan Stanley, 4.81%, 10/25/2028(g) | EUR | 100,000 | 113,969 |
| | | | 126,954 |
| IT Consulting & Other Services–0.10% |
| DXC Technology Co., 1.75%, 01/15/2026 | EUR | 100,000 | 106,925 |
| International Business Machines Corp., 1.25%, 01/29/2027 | EUR | 200,000 | 210,134 |
| | | | 317,059 |
| Life & Health Insurance–0.07% |
| New York Life Global Funding, 0.25%, 01/23/2027(i) | EUR | 200,000 | 205,608 |
| Multi-line Insurance–0.07% |
| Metropolitan Life Global Funding I, | | |
| 4.00%, 04/05/2028(i) | EUR | 100,000 | 112,397 |
| 0.50%, 05/25/2029(i) | EUR | 100,000 | 96,914 |
| | | | 209,311 |
| Multi-Sector Holdings–0.03% |
| Berkshire Hathaway, Inc., 1.13%, 03/16/2027 | EUR | 100,000 | 105,100 |
| Office REITs–0.04% |
| Inmobiliaria Colonial SOCIMI S.A. (Spain), 1.63%, 11/28/2025(i) | EUR | 100,000 | 107,299 |
| Oil & Gas Exploration & Production–0.03% |
| APA Infrastructure Ltd. (Australia), 2.00%, 03/22/2027(i) | EUR | 100,000 | 105,941 |
| Oil & Gas Refining & Marketing–0.03% |
| Neste OYJ (Finland), 0.75%, 03/25/2028(i) | EUR | 100,000 | 100,139 |
| Packaged Foods & Meats–0.07% |
| General Mills, Inc., 0.13%, 11/15/2025 | EUR | 100,000 | 105,887 |
| JDE Peet’s N.V. (Netherlands), 0.00%, 01/16/2026(i)(j) | EUR | 100,000 | 104,968 |
| | | | 210,855 |
| | Principal
Amount | Value |
| Passenger Airlines–0.05% |
| easyJet FinCo B.V. (United Kingdom), 1.88%, 03/03/2028(i) | EUR | 135,000 | $139,879 |
| Real Estate Operating Companies–0.03% |
| Hemso Treasury OYJ (Sweden), 0.00%, 01/19/2028(i)(j) | EUR | 100,000 | 98,038 |
| Regional Banks–0.08% |
| Credit Mutuel Arkea S.A. (France), 0.38%, 10/03/2028(i) | EUR | 100,000 | 97,755 |
| SpareBank 1 SMN (Norway), 0.01%, 02/18/2028(i) | EUR | 140,000 | 138,421 |
| | | | 236,176 |
| Renewable Electricity–0.04% |
| Southern Power Co., 1.85%, 06/20/2026 | EUR | 100,000 | 107,028 |
| Soft Drinks & Non-alcoholic Beverages–0.03% |
| Coca-Cola Europacific Partners PLC (United Kingdom), 0.20%, 12/02/2028(i) | EUR | 100,000 | 97,137 |
| Telecom Tower REITs–0.04% |
| American Tower Corp., 1.95%, 05/22/2026 | EUR | 100,000 | 107,060 |
| Tobacco–0.07% |
| B.A.T. International Finance PLC (United Kingdom), 3.13%, 03/06/2029(i) | EUR | 100,000 | 108,376 |
| Imperial Brands Finance PLC (United Kingdom), 3.38%, 02/26/2026(i) | EUR | 100,000 | 109,173 |
| | | | 217,549 |
| Transaction & Payment Processing Services–0.04% |
| Euronet Worldwide, Inc., 1.38%, 05/22/2026 | EUR | 110,000 | 115,698 |
| Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $11,628,239) | 11,514,767 |
| Variable Rate Senior Loan Interests–0.01%(k)(l) |
| Oil & Gas Equipment & Services–0.01% |
McDermott International Ltd., LOC, 0.00%, 12/31/2026
(Cost $33,085)(d)(m) | | $33,085 | 32,258 |
| | Shares | |
| Preferred Stocks–0.00% |
| Oil & Gas Storage & Transportation–0.00% |
Southcross Energy Partners L.P., Series A, Pfd.
(Cost $68,449)(d) | 68,467 | 404 |
| Money Market Funds–25.03% |
Invesco Treasury Portfolio, Institutional Class, 4.73%(n)(o)
(Cost $75,972,364) | 75,972,364 | 75,972,364 |
| TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-85.79% (Cost $232,271,201) | | | 260,392,658 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Fundamental Alternatives Fund |
| | Shares | Value |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–0.71% |
| Invesco Private Government Fund, 4.84%(n)(o)(p) | 597,609 | $597,609 |
| Invesco Private Prime Fund, 4.99%(n)(o)(p) | 1,559,050 | 1,559,518 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $2,157,127) | 2,157,127 |
| TOTAL INVESTMENTS IN SECURITIES–86.50% (Cost $234,428,328) | 262,549,785 |
| OTHER ASSETS LESS LIABILITIES—13.50% | 40,966,947 |
| NET ASSETS–100.00% | $303,516,732 |
Investment Abbreviations:
| EUR | – Euro |
| LOC | – Letter of Credit |
| Pfd. | – Preferred |
| REIT | – Real Estate Investment Trust |
Notes to Consolidated Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Non-income producing security. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
| (e) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 2N. |
| (f) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| (g) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
| (h) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
| (i) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $9,858,717, which represented 3.25% of the Fund’s Net Assets. |
| (j) | Zero coupon bond issued at a discount. |
| (k) | Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years. |
| (l) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the Secured Overnight Financing Rate ("SOFR"), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
| (m) | All or a portion of this holding is subject to unfunded loan commitments. Interest rate will be determined at the time of funding. See Note 8. |
| (n) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Treasury Portfolio, Institutional Class | $90,165,725 | $68,469,835 | $(82,663,196) | $- | $- | $75,972,364 | $4,319,419 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 1,692,553 | 23,500,151 | (24,595,095) | - | - | 597,609 | 43,144* |
| Invesco Private Prime Fund | 4,353,875 | 46,310,171 | (49,106,534) | 110 | 1,896 | 1,559,518 | 116,622* |
| Total | $96,212,153 | $138,280,157 | $(156,364,825) | $110 | $1,896 | $78,129,491 | $4,479,185 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (o) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (p) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Fundamental Alternatives Fund |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Currency Risk |
| British Pound | 82 | December-2024 | $6,601,513 | $(89,397) | $(89,397) |
| Equity Risk |
| Amsterdam Index | 11 | November-2024 | 2,088,917 | (52,288) | (52,288) |
| E-Mini Russell 2000 Index | 25 | December-2024 | 2,760,750 | (24,533) | (24,533) |
| Eurex DAX Index | 8 | December-2024 | 4,166,517 | (2,329) | (2,329) |
| EURO STOXX 50 Index | 38 | December-2024 | 1,998,109 | (40,613) | (40,613) |
| FTSE 100 Index | 24 | December-2024 | 2,515,048 | (53,685) | (53,685) |
| FTSE MIB Index | 18 | December-2024 | 3,335,955 | 12,902 | 12,902 |
| Hang Seng Index | 18 | November-2024 | 2,355,900 | (17,085) | (17,085) |
| IBEX 35 Index | 32 | November-2024 | 4,054,540 | (103,111) | (103,111) |
| MSCI Emerging Markets Index | 58 | December-2024 | 3,266,850 | (10,781) | (10,781) |
| OMS Stockholm 30 Index | 120 | November-2024 | 2,854,273 | (53,595) | (53,595) |
| S&P/TSX 60 Index | 22 | December-2024 | 4,573,649 | 31,363 | 31,363 |
| SPI 200 Index | 38 | December-2024 | 5,107,843 | (32,104) | (32,104) |
| Tokyo Stock Price Index | 8 | December-2024 | 1,418,718 | (896) | (896) |
| Subtotal | (346,755) | (346,755) |
| Interest Rate Risk |
| Euro-BTP | 55 | December-2024 | 7,152,227 | (43,659) | (43,659) |
| U.S. Treasury 5 Year Notes | 130 | December-2024 | 13,940,469 | (336,112) | (336,112) |
| Subtotal | (379,771) | (379,771) |
| Subtotal—Long Futures Contracts | (815,923) | (815,923) |
| Short Futures Contracts | | | | | |
| Currency Risk |
| Australian Dollar | 60 | December-2024 | (3,946,500) | 11,389 | 11,389 |
| Canadian Dollar | 91 | December-2024 | (6,552,000) | 90,589 | 90,589 |
| Euro | 48 | December-2024 | (6,534,000) | (3,558) | (3,558) |
| Japanese Yen | 55 | December-2024 | (4,546,438) | 75,889 | 75,889 |
| New Zealand Dollar | 64 | December-2024 | (3,821,120) | 39,518 | 39,518 |
| Swiss Franc | 20 | December-2024 | (2,906,750) | (1,733) | (1,733) |
| Subtotal | 212,094 | 212,094 |
| Equity Risk |
| CAC 40 Index | 23 | November-2024 | (1,841,593) | 29,782 | 29,782 |
| E-Mini S&P 500 Index | 155 | December-2024 | (44,473,375) | (895,099) | (895,099) |
| Subtotal | (865,317) | (865,317) |
| Interest Rate Risk |
| Australia 10 Year Bonds | 97 | December-2024 | (7,139,676) | 125,166 | 125,166 |
| Canada 10 Year Bonds | 15 | December-2024 | (1,314,217) | (413) | (413) |
| Euro-Bobl | 34 | December-2024 | (4,369,600) | 6,906 | 6,906 |
| Euro-Bund | 18 | December-2024 | (2,580,578) | 17,609 | 17,609 |
| Euro-Buxl | 14 | December-2024 | (2,015,644) | (15,474) | (15,474) |
| Euro-OAT | 42 | December-2024 | (5,695,154) | 38,167 | 38,167 |
| Euro-Schatz | 81 | December-2024 | (9,386,998) | 13,160 | 13,160 |
| Long Gilt | 41 | December-2024 | (4,971,658) | 128,472 | 128,472 |
| SFE 3 Year Australian Bond | 56 | December-2024 | (3,890,726) | 11,463 | 11,463 |
| U.S. Treasury 2 Year Notes | 7 | December-2024 | (1,441,617) | 451 | 451 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Fundamental Alternatives Fund |
| Open Futures Contracts(a)—(continued) |
| Short Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| U.S. Treasury 10 Year Notes | 44 | December-2024 | $(4,860,625) | $48,852 | $48,852 |
| U.S. Treasury Long Bonds | 22 | December-2024 | (2,595,312) | 18,220 | 18,220 |
| Subtotal | 392,579 | 392,579 |
| Subtotal—Short Futures Contracts | (260,644) | (260,644) |
| Total Futures Contracts | $(1,076,567) | $(1,076,567) |
| (a) | Futures contracts collateralized by $7,680,898 cash held with Merrill Lynch International, the futures commission merchant. |
| Open Forward Foreign Currency Contracts |
Settlement
Date | Counterparty | Contract to | Unrealized
Appreciation
(Depreciation) |
| Deliver | Receive |
| Currency Risk | | | | | | |
| 11/25/2024 | BNP Paribas S.A. | USD | 12,999 | EUR | 12,000 | $66 |
| 11/25/2024 | Citibank, N.A. | EUR | 11,469,000 | USD | 12,624,239 | 138,092 |
| 11/25/2024 | J.P. Morgan Chase Bank, N.A. | EUR | 212,000 | USD | 235,512 | 4,710 |
| 11/25/2024 | Merrill Lynch International | EUR | 35,000 | USD | 38,858 | 754 |
| 11/25/2024 | Merrill Lynch International | USD | 13,042 | EUR | 12,000 | 22 |
| Subtotal—Appreciation | 143,644 |
| Currency Risk | | | | | | |
| 11/25/2024 | Citibank, N.A. | USD | 1,039,148 | EUR | 934,000 | (22,315) |
| 11/25/2024 | Goldman Sachs International | USD | 18,958 | EUR | 17,000 | (450) |
| 11/25/2024 | J.P. Morgan Chase Bank, N.A. | EUR | 45,000 | USD | 48,820 | (171) |
| 11/25/2024 | J.P. Morgan Chase Bank, N.A. | USD | 20,973 | EUR | 19,000 | (288) |
| Subtotal—Depreciation | (23,224) |
| Total Forward Foreign Currency Contracts | $120,420 |
| Open Centrally Cleared Credit Default Swap Agreements(a) |
| Reference Entity | Buy/Sell
Protection | (Pay)/
Receive
Fixed
Rate | Payment
Frequency | Maturity Date | Implied
Credit
Spread(b) | Notional Value | Upfront
Payments Paid
(Received) | Value | Unrealized
Appreciation |
| Credit Risk |
| Markit CDX North America High Yield Index, Series 42, Version 1 | Sell | 5.00% | Quarterly | 06/20/2029 | 3.103% | USD | 650,000 | $38,278 | $47,493 | $9,215 |
| (a) | Centrally cleared swap agreements collateralized by $49,122 cash held with Citigroup Global Markets, Inc. |
| (b) | Implied credit spreads represent the current level, as of October 31, 2024, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Fundamental Alternatives Fund |
| Open Over-The-Counter Total Return Swap Agreements(a) |
| Counterparty | Pay/
Receive | Reference Entity(b) | Fixed
Rate | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk | | | | | | | | | | | |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Gasoil Index | 0.04% | Monthly | 11,250 | July—2025 | USD | 1,386,381 | $70,939 | $81,647 | $10,708 |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Gasoline Index | 0.06 | Monthly | 7,170 | July—2025 | USD | 1,413,486 | 94,008 | 105,816 | 11,808 |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Heating Oil Index | 0.04 | Monthly | 11,850 | July—2025 | USD | 1,404,445 | 17,526 | 72,250 | 54,724 |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Wheat Index | 0.04 | Monthly | 119,000 | June—2025 | USD | 1,801,056 | 13,048 | 86,227 | 73,180 |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Silver Index | 0.08 | Monthly | 13,680 | March—2025 | USD | 1,978,759 | 13,909 | 64,412 | 50,503 |
| Citibank, N.A. | Pay | CITI Commodities Benchmark (Regular Roll) Mono Index Soybean Oil | 0.06 | Monthly | 7,900 | December—2024 | USD | 2,041,176 | (1,538) | 7,142 | 8,679 |
| Royal Bank of Canada | Pay | RBC Commodity CNE0 Excess Return Custom Index | 0.06 | Monthly | 107,700 | November—2024 | USD | 2,292,481 | — | 0 | 0 |
| Royal Bank of Canada | Pay | RBC Commodity NGE0 Excess Return Custom Index | 0.05 | Monthly | 39,800,000 | November—2024 | USD | 756,200 | (2,430) | 0 | 2,430 |
| Royal Bank of Canada | Pay | RBC Commodity SME0 Excess Return Custom Index | 0.05 | Monthly | 2,410 | October—2025 | USD | 1,577,970 | — | 0 | 0 |
| Royal Bank of Canada | Receive | RBC Gold E0 Excess Return Index | 0.06 | Monthly | 7,750 | February—2025 | USD | 4,457,788 | — | 0 | 0 |
| Subtotal — Appreciation | | | | | 205,462 | 417,494 | 212,032 |
| Commodity Risk | | | | | | | | | | | |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Brent Crude Oil Index | 0.04 | Monthly | 14,100 | October—2025 | USD | 1,633,851 | 26,466 | 22,131 | (4,335) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Aluminum Index | 0.10 | Monthly | 22,650 | September—2025 | USD | 2,001,082 | (390) | (14,521) | (14,131) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Copper Index | 0.08 | Monthly | 9,350 | September—2025 | USD | 1,648,157 | (2,290) | (51,769) | (49,479) |
| Citibank, N.A. | Pay | CITI Commodities Benchmark (Regular Roll) Mono Index Soybean Oil | 0.06 | Monthly | 27,400 | November—2024 | USD | 1,863,141 | (7,715) | (119,327) | (111,612) |
| Royal Bank of Canada | Pay | RBC Commodity CLE0 Excess Return Custom Index | 0.05 | Monthly | 30,000 | October—2025 | USD | 1,466,555 | 23,297 | 13,437 | (9,860) |
| Subtotal — Depreciation | | | | | 39,368 | (150,049) | (189,417) |
| Total — Total Return Swap Agreements | | | | | $244,830 | $267,445 | $22,615 |
| (a) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| (b) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 14 | Invesco Fundamental Alternatives Fund |
| Reference Entity Components |
| Reference Entity | Underlying Components | Percentage |
| Canadian Imperial Bank of Commerce Gasoil Index | | |
| | Long Futures Contracts | |
| | Gasoil | 100.00% |
| Canadian Imperial Bank of Commerce Heating Oil Index | | |
| | Long Futures Contracts | |
| | Heating Oil | 100.00% |
| Canadian Imperial Bank of Commerce Wheat Index | | |
| | Long Futures Contracts | |
| | Wheat | 100.00% |
| Canadian Imperial Bank of Commerce Silver Index | | |
| | Long Futures Contracts | |
| | Silver | 100.00% |
| CITI Commodities Benchmark (Regular Roll) Mono Index Soybean Oil | | |
| | Long Futures Contracts | |
| | Soybean Oil | 100.00% |
| RBC Commodity CNE0 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Corn | 100.00% |
| RBC Commodity NGE0 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Natural Gas | 100.00% |
| RBC Commodity SME0 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Soymeal | 100.00% |
| RBC Gold E0 Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Canadian Imperial Bank of Commerce Brent Crude Oil Index | | |
| | Long Futures Contracts | |
| | Brent Crude Oil | 100.00% |
| Canadian Imperial Bank of Commerce Aluminum Index | | |
| | Long Futures Contracts | |
| | Aluminium | 100.00% |
| Canadian Imperial Bank of Commerce Copper Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| CITI Commodities Benchmark (Regular Roll) Mono Index Soybean Oil | | |
| | Long Futures Contracts | |
| | Soybean Oil | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 15 | Invesco Fundamental Alternatives Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| RBC Commodity CLE0 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Crude Oil | 100.00% |
| Abbreviations: |
| EUR | —Euro |
| USD | —U.S. Dollar |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 16 | Invesco Fundamental Alternatives Fund |
Consolidated Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $156,298,837)* | $184,420,294 |
| Investments in affiliated money market funds, at value (Cost $78,129,491) | 78,129,491 |
| Other investments: | |
| Variation margin receivable — futures contracts | 3,101,200 |
| Swaps receivable — OTC | 568,580 |
| Unrealized appreciation on swap agreements — OTC | 212,032 |
| Premiums paid on swap agreements — OTC | 244,830 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 143,644 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 7,680,898 |
| Cash collateral — centrally cleared swap agreements | 49,122 |
| Cash | 30,994,968 |
| Foreign currencies, at value (Cost $73,036) | 71,920 |
| Receivable for: | |
| Investments sold | 298,678 |
| Fund shares sold | 51,146 |
| Dividends | 420,607 |
| Interest | 554,801 |
| Investment for trustee deferred compensation and retirement plans | 106,651 |
| Other assets | 45,870 |
| Total assets | 307,094,732 |
| Liabilities: | |
| Other investments: | |
| Variation margin payable — centrally cleared swap agreements | 1,722 |
| Unrealized depreciation on forward foreign currency contracts outstanding | 23,224 |
| Swaps payable — OTC | 104,504 |
| Unrealized depreciation on swap agreements—OTC | 189,417 |
| Payable for: | |
| Investments purchased | 61,743 |
| Fund shares reacquired | 277,550 |
| Collateral upon return of securities loaned | 2,157,127 |
| Accrued fees to affiliates | 145,742 |
| Accrued trustees’ and officers’ fees and benefits | 1,340 |
| Accrued other operating expenses | 81,474 |
| Trustee deferred compensation and retirement plans | 155,781 |
| Unfunded loan commitments | 33,085 |
| Collateral due to broker - centrally cleared swap agreements | 337,366 |
| Collateral due to broker - OTC Derivatives | 7,925 |
| Total liabilities | 3,578,000 |
| Net assets applicable to shares outstanding | $303,516,732 |
| Net assets consist of: | |
| Shares of beneficial interest | $270,071,939 |
| Distributable earnings | 33,444,793 |
| | $303,516,732 |
| Net Assets: |
| Class A | $263,806,541 |
| Class C | $7,438,310 |
| Class R | $9,220,075 |
| Class Y | $20,956,075 |
| Class R5 | $9,553 |
| Class R6 | $2,086,178 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 10,458,165 |
| Class C | 341,240 |
| Class R | 386,057 |
| Class Y | 806,865 |
| Class R5 | 377 |
| Class R6 | 79,754 |
| Class A: | |
| Net asset value per share | $25.22 |
Maximum offering price per share
(Net asset value of $25.22 ÷ 94.50%) | $26.69 |
| Class C: | |
| Net asset value and offering price per share | $21.80 |
| Class R: | |
| Net asset value and offering price per share | $23.88 |
| Class Y: | |
| Net asset value and offering price per share | $25.97 |
| Class R5: | |
| Net asset value and offering price per share | $25.34 |
| Class R6: | |
| Net asset value and offering price per share | $26.16 |
| * | At October 31, 2024, securities with an aggregate value of $2,101,334 were on loan to brokers. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 17 | Invesco Fundamental Alternatives Fund |
Consolidated Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $2,689,823 |
| Dividends (net of foreign withholding taxes of $1,279) | 2,052,394 |
| Dividends from affiliated money market funds (includes net securities lending income of $4,319) | 4,323,738 |
| Total investment income | 9,065,955 |
| Expenses: | |
| Advisory fees | 2,677,336 |
| Administrative services fees | 46,100 |
| Custodian fees | 49,286 |
| Distribution fees: | |
| Class A | 680,805 |
| Class C | 91,462 |
| Class R | 50,826 |
| Transfer agent fees — A, C, R and Y | 576,347 |
| Transfer agent fees — R5 | 3 |
| Transfer agent fees — R6 | 563 |
| Trustees’ and officers’ fees and benefits | 38,658 |
| Registration and filing fees | 83,272 |
| Reports to shareholders | 81,788 |
| Professional services fees | 94,330 |
| Other | 13,071 |
| Total expenses | 4,483,847 |
| Less: Fees waived and/or expense offset arrangement(s) | (133,076) |
| Net expenses | 4,350,771 |
| Net investment income | 4,715,184 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | 16,873,863 |
| Affiliated investment securities | 1,896 |
| Foreign currencies | 34,874 |
| Forward foreign currency contracts | 205,021 |
| Futures contracts | (11,372,015) |
| Swap agreements | 386,250 |
| | 6,129,889 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 17,858,686 |
| Affiliated investment securities | 110 |
| Foreign currencies | (5,242) |
| Forward foreign currency contracts | (375,490) |
| Futures contracts | (4,919,964) |
| Swap agreements | 58,634 |
| | 12,616,734 |
| Net realized and unrealized gain | 18,746,623 |
| Net increase in net assets resulting from operations | $23,461,807 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 18 | Invesco Fundamental Alternatives Fund |
Consolidated Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $4,715,184 | $3,952,887 |
| Net realized gain | 6,129,889 | 4,708,192 |
| Change in net unrealized appreciation (depreciation) | 12,616,734 | (2,497,278) |
| Net increase in net assets resulting from operations | 23,461,807 | 6,163,801 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (12,216,526) | (7,437,551) |
| Class C | (455,690) | (382,548) |
| Class R | (466,575) | (279,243) |
| Class Y | (1,294,309) | (1,191,849) |
| Class R5 | (461) | (235) |
| Class R6 | (108,646) | (79,119) |
| Total distributions from distributable earnings | (14,542,207) | (9,370,545) |
| Share transactions–net: | | |
| Class A | (19,920,340) | (26,336,193) |
| Class C | (3,583,330) | (2,814,387) |
| Class R | (1,518,759) | (115,402) |
| Class Y | (11,265,022) | (21,575,654) |
| Class R5 | (107) | — |
| Class R6 | (502,862) | (1,116,764) |
| Net increase (decrease) in net assets resulting from share transactions | (36,790,420) | (51,958,400) |
| Net increase (decrease) in net assets | (27,870,820) | (55,165,144) |
| Net assets: | | |
| Beginning of year | 331,387,552 | 386,552,696 |
| End of year | $303,516,732 | $331,387,552 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 19 | Invesco Fundamental Alternatives Fund |
Consolidated Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed(c) | Supplemental
ratio of
expenses
to average
net assets
with fee
waivers
(excluding
interest,
facilities and
maintenance
fees) | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (d) |
| Class A |
| Year ended 10/31/24 | $24.55 | $0.37 | $1.41 | $1.78 | $(0.21) | $(0.90) | $(1.11) | $25.22 | 7.49% | $263,807 | 1.35% | 1.39% | 1.35% | 1.48% | 47% |
| Year ended 10/31/23 | 24.75 | 0.27 | 0.15 | 0.42 | — | (0.62) | (0.62) | 24.55 | 1.71 | 276,078 | 1.33 | 1.37 | 1.33 | 1.11 | 61 |
| Year ended 10/31/22 | 27.26 | (0.05) | (1.69) | (1.74) | (0.77) | — | (0.77) | 24.75 | (6.60) | 304,850 | 1.33 | 1.34 | 1.33 | (0.20) | 29 |
| Year ended 10/31/21 | 26.50 | (0.08) | 1.35 | 1.27 | (0.51) | — | (0.51) | 27.26 | 4.84 | 362,634 | 1.32 | 1.38 | 1.32 | (0.27) | 74 |
| Year ended 10/31/20 | 26.83 | 0.28 | (0.07) | 0.21 | (0.54) | — | (0.54) | 26.50 | 0.77 | 386,680 | 1.56 | 1.61 | 1.52 | 1.07 | 223 |
| Class C |
| Year ended 10/31/24 | 21.33 | 0.16 | 1.23 | 1.39 | (0.02) | (0.90) | (0.92) | 21.80 | 6.74 | 7,438 | 2.10 | 2.14 | 2.10 | 0.73 | 47 |
| Year ended 10/31/23 | 21.75 | 0.08 | 0.12 | 0.20 | — | (0.62) | (0.62) | 21.33 | 0.92 | 10,842 | 2.08 | 2.12 | 2.08 | 0.36 | 61 |
| Year ended 10/31/22 | 24.02 | (0.21) | (1.50) | (1.71) | (0.56) | — | (0.56) | 21.75 | (7.32) | 13,916 | 2.08 | 2.09 | 2.08 | (0.95) | 29 |
| Year ended 10/31/21 | 23.36 | (0.25) | 1.21 | 0.96 | (0.30) | — | (0.30) | 24.02 | 4.11 | 19,401 | 2.08 | 2.13 | 2.08 | (1.03) | 74 |
| Year ended 10/31/20 | 23.60 | 0.07 | (0.07) | - | (0.24) | — | (0.24) | 23.36 | 0.00 | 27,495 | 2.33 | 2.35 | 2.28 | 0.30 | 223 |
| Class R |
| Year ended 10/31/24 | 23.29 | 0.29 | 1.35 | 1.64 | (0.15) | (0.90) | (1.05) | 23.88 | 7.26 | 9,220 | 1.60 | 1.64 | 1.60 | 1.23 | 47 |
| Year ended 10/31/23 | 23.57 | 0.20 | 0.14 | 0.34 | — | (0.62) | (0.62) | 23.29 | 1.45 | 10,485 | 1.58 | 1.62 | 1.58 | 0.86 | 61 |
| Year ended 10/31/22 | 26.00 | (0.11) | (1.62) | (1.73) | (0.70) | — | (0.70) | 23.57 | (6.87) | 10,728 | 1.58 | 1.59 | 1.58 | (0.45) | 29 |
| Year ended 10/31/21 | 25.29 | (0.14) | 1.29 | 1.15 | (0.44) | — | (0.44) | 26.00 | 4.58 | 12,755 | 1.58 | 1.63 | 1.58 | (0.53) | 74 |
| Year ended 10/31/20 | 25.60 | 0.21 | (0.07) | 0.14 | (0.45) | — | (0.45) | 25.29 | 0.51 | 13,867 | 1.82 | 1.86 | 1.78 | 0.81 | 223 |
| Class Y |
| Year ended 10/31/24 | 25.25 | 0.44 | 1.45 | 1.89 | (0.27) | (0.90) | (1.17) | 25.97 | 7.76 | 20,956 | 1.10 | 1.14 | 1.10 | 1.73 | 47 |
| Year ended 10/31/23 | 25.37 | 0.34 | 0.16 | 0.50 | — | (0.62) | (0.62) | 25.25 | 1.99 | 31,447 | 1.08 | 1.12 | 1.08 | 1.36 | 61 |
| Year ended 10/31/22 | 27.94 | 0.02 | (1.75) | (1.73) | (0.84) | — | (0.84) | 25.37 | (6.41) | 53,389 | 1.08 | 1.09 | 1.08 | 0.05 | 29 |
| Year ended 10/31/21 | 27.14 | (0.01) | 1.39 | 1.38 | (0.58) | — | (0.58) | 27.94 | 5.14 | 103,680 | 1.07 | 1.13 | 1.07 | (0.02) | 74 |
| Year ended 10/31/20 | 27.47 | 0.36 | (0.08) | 0.28 | (0.61) | — | (0.61) | 27.14 | 1.00 | 165,217 | 1.31 | 1.35 | 1.27 | 1.32 | 223 |
| Class R5 |
| Year ended 10/31/24 | 24.66 | 0.46 | 1.43 | 1.89 | (0.31) | (0.90) | (1.21) | 25.34 | 7.97 | 10 | 0.96 | 0.99 | 0.96 | 1.87 | 47 |
| Year ended 10/31/23 | 24.76 | 0.37 | 0.15 | 0.52 | — | (0.62) | (0.62) | 24.66 | 2.12 | 9 | 0.93 | 0.96 | 0.93 | 1.51 | 61 |
| Year ended 10/31/22 | 27.29 | 0.05 | (1.69) | (1.64) | (0.89) | — | (0.89) | 24.76 | (6.25) | 9 | 0.93 | 0.94 | 0.93 | 0.20 | 29 |
| Year ended 10/31/21 | 26.55 | 0.03 | 1.35 | 1.38 | (0.64) | — | (0.64) | 27.29 | 5.24 | 10 | 0.91 | 0.92 | 0.91 | 0.14 | 74 |
| Year ended 10/31/20 | 26.87 | 0.39 | (0.05) | 0.34 | (0.66) | — | (0.66) | 26.55 | 1.23 | 10 | 1.14 | 1.15 | 1.10 | 1.49 | 223 |
| Class R6 |
| Year ended 10/31/24 | 25.42 | 0.48 | 1.47 | 1.95 | (0.31) | (0.90) | (1.21) | 26.16 | 7.96 | 2,086 | 0.96 | 0.99 | 0.96 | 1.87 | 47 |
| Year ended 10/31/23 | 25.51 | 0.38 | 0.15 | 0.53 | — | (0.62) | (0.62) | 25.42 | 2.10 | 2,526 | 0.93 | 0.96 | 0.93 | 1.51 | 61 |
| Year ended 10/31/22 | 28.09 | 0.06 | (1.75) | (1.69) | (0.89) | — | (0.89) | 25.51 | (6.25) | 3,660 | 0.93 | 0.94 | 0.93 | 0.20 | 29 |
| Year ended 10/31/21 | 27.27 | 0.04 | 1.42 | 1.46 | (0.64) | — | (0.64) | 28.09 | 5.40 | 6,743 | 0.90 | 0.92 | 0.90 | 0.15 | 74 |
| Year ended 10/31/20 | 27.60 | 0.41 | (0.08) | 0.33 | (0.66) | — | (0.66) | 27.27 | 1.19 | 215,374 | 1.12 | 1.14 | 1.08 | 1.51 | 223 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Does not include indirect expenses from affiliated fund fees and expenses of 0.02% for the year ended October 31, 2020, respectively. |
| (d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 20 | Invesco Fundamental Alternatives Fund |
Notes to Consolidated Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Fundamental Alternatives Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Fundamental Alternatives Fund (Cayman) Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to commodity-linked derivatives primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives (including commodity futures, financial futures, options and swap contracts) and exchange-traded funds and exchange-traded products related to gold or other special minerals, and certain fixed-income securities and other investments that may serve as margin or collateral for its derivatives positions. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
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The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income 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 consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. 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. |
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| I. | Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations.
| K. | Securities Sold Short - The Fund may enter into short sales of securities which it concurrently holds (against the box) or for which it holds no corresponding position (naked). Securities sold short represent a liability of the Fund to acquire specific securities at prevailing market prices at a future date in order to satisfy the obligation to deliver the securities sold. The liability is recorded on the books of the Fund at the market value of the common stock determined each day in accordance with the procedures for security valuations. The Fund will incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund realizes a gain if the price of the security declines between those dates. |
The Fund is required to segregate cash or securities as collateral in margin accounts at a level that is equal to the obligation to the broker who delivered such securities to the buyer on behalf of the Fund. The Short stock rebate, if any, presented in the Consolidated Statement of Operations represents the net income earned on short sale proceeds held on deposit with the broker and margin interest earned or incurred on short sale transactions. Margin interest is the income earned (or expense incurred) as a result of the market value of securities sold short being less than (or greater than) the proceeds received from the short sales.
| L. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| M. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary
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risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
| N. | Futures Contracts — The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities. |
| O. | Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, volatility, variance, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, equity, currency, commodity or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, volatility, variance, index and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index, such as the Consumer Price Index, over the term of the swap, and the other party pays a compounded fixed rate.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund will initially enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated, at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer "par value" or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
A volatility swap involves an exchange between the Fund and a Counterparty of periodic payments based on the measured volatility of an underlying security, currency, commodity, interest rate, index or other reference asset over a specified time frame. Depending on the structure of the swap, either the Fund’s or the Counterparty’s payment obligation will typically be based on the realized volatility of the reference asset as measured by changes in its price or level over a specified time period, while the other party’s payment obligation will be based on a specified rate representing expected volatility for the reference asset at the time the swap is executed, or the measured volatility of a different reference asset over a specified time period. The Fund will typically make or lose money on a volatility swap depending on the magnitude of the reference asset’s volatility, or size of the movements in its price, over a specified time period, rather than general increases or decreases in the price of the reference asset. Volatility swaps are often used to speculate on future volatility levels, to trade the spread between realized and expected volatility, or to decrease the volatility exposure of other investments held by the Fund. Variance swaps are similar to volatility swaps, except payments are based on the difference between the implied and measured volatility mathematically squared.
| 24 | Invesco Fundamental Alternatives Fund |
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate, the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of October 31, 2024, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
| P. | Bank Loan Risk — Although the resale, or secondary market for floating rate loans has grown substantially over the past decade, both in overall size and number of market participants, there is no organized exchange or board of trade on which floating rate loans are traded. Instead, the secondary market for floating rate loans is a private, unregulated interdealer or interbank resale market. Such a market may therefore be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods, which may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. Similar to other asset classes, bank loan funds may be exposed to counterparty credit risk, or the risk than an entity with which the Fund has unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund seeks to manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. |
| Q. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| R. | Collateral —To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions. |
| S. | Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
By investing in the Subsidiary, the Fund is indirectly exposed to risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act, and, except as otherwise noted in the Fund’s prospectus, is not subject to the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or the Subsidiary to operate as intended, and could negatively affect the Fund and its shareholders.
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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
| 25 | Invesco Fundamental Alternatives Fund |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate* |
| First $1 billion | 0.850% |
| Next $500 million | 0.800% |
| Next $500 million | 0.750% |
| Next $500 million | 0.700% |
| Next $500 million | 0.650% |
| Next $500 million | 0.600% |
| Next $500 million | 0.550% |
| Over $4 billion | 0.500% |
| * | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.84%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of the Fund directly, but are fees and expenses, including management fees, of the investment companies in which the Fund invests. As a result, the total annual fund operating expenses after fee waiver and/or expense reimbursement may exceed the boundary limits above. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $91,149.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $19,567 in front-end sales commissions from the sale of Class A shares and $32 and $0 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when
| 26 | Invesco Fundamental Alternatives Fund |
market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Common Stocks & Other Equity Interests | $107,692,217 | $— | $10 | $107,692,227 |
| U.S. Treasury Securities | — | 41,923,934 | — | 41,923,934 |
| U.S. Dollar Denominated Bonds & Notes | — | 23,256,704 | — | 23,256,704 |
| Non-U.S. Dollar Denominated Bonds & Notes | — | 11,514,767 | — | 11,514,767 |
| Variable Rate Senior Loan Interests | — | — | 32,258 | 32,258 |
| Preferred Stocks | — | — | 404 | 404 |
| Money Market Funds | 75,972,364 | 2,157,127 | — | 78,129,491 |
| Total Investments in Securities | 183,664,581 | 78,852,532 | 32,672 | 262,549,785 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 699,898 | — | — | 699,898 |
| Forward Foreign Currency Contracts | — | 143,644 | — | 143,644 |
| Swap Agreements | — | 221,247 | — | 221,247 |
| | 699,898 | 364,891 | — | 1,064,789 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (1,776,465) | — | — | (1,776,465) |
| Forward Foreign Currency Contracts | — | (23,224) | — | (23,224) |
| Swap Agreements | — | (189,417) | — | (189,417) |
| | (1,776,465) | (212,641) | — | (1,989,106) |
| Total Other Investments | (1,076,567) | 152,250 | — | (924,317) |
| Total Investments | $182,588,014 | $79,004,782 | $32,672 | $261,625,468 |
| * | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). |
NOTE 4—Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| | Value |
| Derivative Assets | Commodity
Risk | Credit
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized appreciation on futures contracts —Exchange-Traded(a) | $— | $— | $217,385 | $74,047 | $408,466 | $699,898 |
| Unrealized appreciation on swap agreements — Centrally Cleared(a) | — | 9,215 | — | — | — | 9,215 |
| Unrealized appreciation on forward foreign currency contracts outstanding | — | — | 143,644 | — | — | 143,644 |
| Unrealized appreciation on swap agreements — OTC | 212,032 | — | — | — | — | 212,032 |
| Total Derivative Assets | 212,032 | 9,215 | 361,029 | 74,047 | 408,466 | 1,064,789 |
| Derivatives not subject to master netting agreements | — | (9,215) | (217,385) | (74,047) | (408,466) | (709,113) |
| Total Derivative Assets subject to master netting agreements | $212,032 | $— | $143,644 | $— | $— | $355,676 |
| 27 | Invesco Fundamental Alternatives Fund |
| | Value |
| Derivative Liabilities | Commodity
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts —Exchange-Traded(a) | $— | $(94,688) | $(1,286,119) | $(395,658) | $(1,776,465) |
| Unrealized depreciation on forward foreign currency contracts outstanding | — | (23,224) | — | — | (23,224) |
| Unrealized depreciation on swap agreements — OTC | (189,417) | — | — | — | (189,417) |
| Total Derivative Liabilities | (189,417) | (117,912) | (1,286,119) | (395,658) | (1,989,106) |
| Derivatives not subject to master netting agreements | — | 94,688 | 1,286,119 | 395,658 | 1,776,465 |
| Total Derivative Liabilities subject to master netting agreements | $(189,417) | $(23,224) | $— | $— | $(212,641) |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| | | | | Collateral
(Received)/Pledged | |
| Counterparty | Forward
Foreign
Currency
Contracts | Swap
Agreements | Total
Assets | Forward
Foreign
Currency
Contracts | Swap
Agreements | Total
Liabilities | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount(a) |
| Fund | | | | | | | | | | |
| BNP Paribas S.A. | $66 | $— | $66 | $— | $— | $— | $66 | $— | $— | $66 |
| Citibank, N.A. | 138,092 | — | 138,092 | (22,315) | — | (22,315) | 115,777 | — | — | 115,777 |
| Goldman Sachs International | — | — | — | (450) | — | (450) | (450) | — | — | (450) |
| J.P. Morgan Chase Bank, N.A. | 4,710 | — | 4,710 | (459) | — | (459) | 4,251 | — | — | 4,251 |
| Merrill Lynch International | 776 | — | 776 | — | — | — | 776 | — | — | 776 |
| Subtotal - Fund | 143,644 | — | 143,644 | (23,224) | — | (23,224) | 120,420 | — | — | 120,420 |
| Subsidiary | | | | | | | | | | |
| Canadian Imperial Bank of Commerce | — | 230,947 | 230,947 | — | (148,609) | (148,609) | 82,338 | — | — | 82,338 |
| Citibank, N.A. | — | 18,833 | 18,833 | — | (111,708) | (111,708) | (92,875) | — | — | (92,875) |
| Royal Bank of Canada | — | 530,832 | 530,832 | — | (33,605) | (33,605) | 497,227 | — | — | 497,227 |
| Subtotal - Subsidiary | — | 780,612 | 780,612 | — | (293,922) | (293,922) | 486,690 | — | — | 486,690 |
| Total | $143,644 | $780,612 | $924,256 | $(23,224) | $(293,922) | $(317,146) | $607,110 | $— | $— | $607,110 |
| (a) | The Fund and the Subsidiary are recognized as separate legal entities and as such are subject to separate netting arrangements with the Counterparty. |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Consolidated Statement of Operations |
| | Commodity
Risk | Credit
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Realized Gain (Loss): | | | | | | |
| Forward foreign currency contracts | $- | $- | $205,021 | $- | $- | $205,021 |
| Futures contracts | (47,786) | - | (1,409,461) | (7,425,096) | (2,489,672) | (11,372,015) |
| Swap agreements | 231,930 | 154,320 | - | - | - | 386,250 |
| Change in Net Unrealized Appreciation (Depreciation): | | | | | | |
| Forward foreign currency contracts | - | - | (375,490) | - | - | (375,490) |
| Futures contracts | 39,148 | - | 122,697 | (4,542,246) | (539,563) | (4,919,964) |
| Swap agreements | 20,335 | 38,299 | - | - | - | 58,634 |
| Total | $243,627 | $192,619 | $(1,457,233) | $(11,967,342) | $(3,029,235) | $(16,017,564) |
The table below summarizes the average notional value of derivatives held during the period.
| | Forward
Foreign Currency
Contracts | Futures
Contracts | Swap
Agreements |
| Average notional value | $15,616,728 | $177,609,663 | $43,425,715 |
| 28 | Invesco Fundamental Alternatives Fund |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $41,927.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Unfunded Loan Commitments
Pursuant to the terms of certain senior loan agreements, the Fund held the following unfunded loan commitments as of October 31, 2024. The Fund intends to reserve against such contingent obligations by designating cash, liquid securities and liquid senior loans as a reserve. Unfunded loan commitments are reflected as a liability on the Consolidated Statement of Assets and Liabilities.
| Borrower | Type | Unfunded Loan
Commitment | Unrealized
Appreciation
(Depreciation) |
| McDermott International Ltd. | LOC | | $33,085 | $(827) |
NOTE 9—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $2,720,893 | $— |
| Long-term capital gain | 11,821,314 | 9,370,545 |
| Total distributions | $14,542,207 | $9,370,545 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $4,648,142 |
| Undistributed long-term capital gain | 1,372,555 |
| Net unrealized appreciation — investments | 27,572,886 |
| Net unrealized appreciation — foreign currencies | 434 |
| Temporary book/tax differences | (149,224) |
| Shares of beneficial interest | 270,071,939 |
| Total net assets | $303,516,732 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to straddles, wash sales and derivative instruments.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 10—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $89,978,924 and $133,170,270, respectively. As of October 31, 2024, the aggregate cost of
| 29 | Invesco Fundamental Alternatives Fund |
investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $32,471,643 |
| Aggregate unrealized (depreciation) of investments | (4,898,757) |
| Net unrealized appreciation of investments | $27,572,886 |
Cost of investments for tax purposes is $234,297,412.
NOTE 11—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of partnerships, foreign currency transactions and income from the subsidiary, on October 31, 2024, undistributed net investment income was decreased by $911,537, undistributed net realized gain was increased by $1,154,382 and shares of beneficial interest was decreased by $242,845. This reclassification had no effect on the net assets of the Fund.
NOTE 12—Senior Loan Participation Commitments
The Fund invests in participations, assignments, or acts as a party to the primary lending syndicate of a senior loan interest to corporations, partnerships, and other entities. When the Fund purchases a participation of a senior loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As such, the Fund assumes the credit risk of the borrower, selling participant or other persons interpositioned between the Fund and the borrower.
At the year ended October 31, 2024, the following sets forth the selling participants with respect to interest in senior loans purchased by the Fund on a participation basis.
| Selling Participant | Principal
Amount | Value |
| Barclays Bank PLC | $33,085 | $32,258 |
| | | |
NOTE 13—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 281,231 | $6,955,688 | | 343,662 | $8,401,076 |
| Class C | 44,301 | 949,375 | | 57,318 | 1,222,239 |
| Class R | 31,377 | 733,422 | | 49,188 | 1,145,235 |
| Class Y | 100,320 | 2,539,583 | | 114,767 | 2,883,235 |
| Class R6 | 14,121 | 362,401 | | 12,156 | 308,104 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 483,995 | 11,543,290 | | 290,320 | 7,051,867 |
| Class C | 20,970 | 434,914 | | 17,410 | 369,953 |
| Class R | 20,447 | 462,718 | | 12,058 | 278,537 |
| Class Y | 45,406 | 1,112,451 | | 39,960 | 996,195 |
| Class R6 | 3,348 | 82,539 | | 2,477 | 62,103 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 126,094 | 3,099,848 | | 79,381 | 1,936,644 |
| Class C | (145,324) | (3,099,848) | | (90,968) | (1,936,644) |
| Reacquired: | | | | | |
| Class A | (1,680,221) | (41,519,166) | | (1,784,801) | (43,725,780) |
| Class C | (86,989) | (1,867,771) | | (115,424) | (2,469,935) |
| Class R | (115,869) | (2,714,899) | | (66,214) | (1,539,174) |
| Class Y | (584,529) | (14,917,056) | | (1,013,263) | (25,455,084) |
| Class R5 | (3) | (107) | | - | - |
| Class R6 | (37,066) | (947,802) | | (58,769) | (1,486,971) |
| Net increase (decrease) in share activity | (1,478,391) | $(36,790,420) | | (2,110,742) | $(51,958,400) |
| (a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 5% 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. |
NOTE 14—Subsequent Event
At a meeting held on December 11, 2024, the Board of Trustees approved the following changes to the Fund, effective on or about February 28, 2025.
| 30 | Invesco Fundamental Alternatives Fund |
The name of the Fund and all references thereto will change from Invesco Fundamental Alternatives Fund to Invesco Multi-Strategy Fund. In addition, the principal investment strategy of the Fund will be updated to reflect investing in affiliated and unaffiliated exchange-traded funds, consistent with the Fund’s current investment objective.
| 31 | Invesco Fundamental Alternatives Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Fundamental Alternatives Fund
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of Invesco Fundamental Alternatives Fund and its subsidiary (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related consolidated statement of operations for the year ended October 31, 2024, the consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the consolidated financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent, agent banks, portfolio company investees and brokers; when replies were not received from agent banks, portfolio company investees or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 32 | Invesco Fundamental Alternatives Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Fundamental Alternatives Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC, Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the HFRX Global Hedge Fund Index (Index). The Board noted that performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board considered that the Fund was created in connection with Invesco Ltd.’s
| 33 | Invesco Fundamental Alternatives Fund |
acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board considered that the Fund’s lower equity market beta exposure versus peers and the use of certain hedging sub-strategies detracted from relative performance. The Board also considered that the Fund underwent portfolio management and corresponding investment strategy changes in 2020, and that performance results prior to such date were those of the prior portfolio management team. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each below the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund may benefit from
economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted
that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades
| 34 | Invesco Fundamental Alternatives Fund |
were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 35 | Invesco Fundamental Alternatives Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Long-Term Capital Gain Distributions | $11,821,314 |
| Qualified Dividend Income* | 84.70% |
| Corporate Dividends Received Deduction* | 84.49% |
| U.S. Treasury Obligations* | 28.01% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 15.41% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 36 | Invesco Fundamental Alternatives Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 37 | Invesco Fundamental Alternatives Fund |
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-FALT-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Global Allocation Fund
Nasdaq:
A: QVGIX ■ C: QGRCX ■ R: QGRNX ■ Y: QGRYX ■ R5: GLALX ■ R6: QGRIX
Consolidated Schedule of Investments(a)
October 31, 2024
| | Shares | Value |
| Exchange-Traded Funds–44.55% |
| Invesco Emerging Markets Sovereign Debt ETF(b) | 383,000 | $7,847,670 |
| Invesco High Yield Bond Factor ETF(b) | 1,076,000 | 24,226,140 |
| Invesco International Developed Dynamic Multifactor ETF(b)(c) | 5,817,300 | 141,476,736 |
| Invesco Russell 1000® Dynamic Multifactor ETF(b) | 4,151,760 | 218,091,953 |
| Invesco Russell 2000® Dynamic Multifactor ETF(b) | 1,607,300 | 63,118,671 |
| Total Exchange-Traded Funds (Cost $348,600,683) | 454,761,170 |
| | Principal
Amount | |
| U.S. Treasury Securities–33.57% |
| U.S. Treasury Notes–33.57% |
| 3.88%, 12/31/2027 | | $23,390,000 | 23,215,032 |
| 3.88%, 12/31/2029(d) | | 68,550,000 | 67,607,437 |
| 1.88%, 02/15/2032(d) | | 171,525,000 | 146,261,913 |
| 4.38%, 05/15/2034 | | 104,800,000 | 105,561,437 |
| Total U.S. Treasury Securities (Cost $345,507,973) | 342,645,819 |
| | Shares | |
| Common Stocks & Other Equity Interests–18.07% |
| Advertising–0.12% |
| Trade Desk, Inc. (The), Class A(e) | 10,519 | 1,264,489 |
| Aerospace & Defense–0.42% |
| Airbus SE (France) | 13,013 | 1,985,019 |
| Axon Enterprise, Inc.(e) | 1,921 | 813,543 |
| BAE Systems PLC (United Kingdom) | 34,020 | 548,311 |
| Curtiss-Wright Corp. | 984 | 339,441 |
| Howmet Aerospace, Inc. | 5,924 | 590,741 |
| | | | 4,277,055 |
| Air Freight & Logistics–0.06% |
| ZTO Express (Cayman), Inc., ADR (China)(c) | 27,037 | 624,825 |
| Airport Services–0.01% |
| Grupo Aeroportuario del Sureste S.A.B. de C.V., Class B (Mexico) | 5,160 | 138,008 |
| Apparel Retail–0.06% |
| Burlington Stores, Inc.(e) | 1,992 | 493,558 |
| TJX Cos., Inc. (The) | 963 | 108,848 |
| | | | 602,406 |
| Apparel, Accessories & Luxury Goods–0.50% |
| Brunello Cucinelli S.p.A. (Italy) | 4,298 | 425,162 |
| Cie Financiere Richemont S.A. (Switzerland) | 1,363 | 198,453 |
| Ermenegildo Zegna N.V. (Italy) | 15,443 | 117,367 |
| Hermes International S.C.A. (France) | 372 | 845,463 |
| LVMH Moet Hennessy Louis Vuitton SE (France) | 3,084 | 2,053,082 |
| Moncler S.p.A. (Italy) | 9,681 | 537,852 |
| | Shares | Value |
| Apparel, Accessories & Luxury Goods–(continued) |
| Prada S.p.A. (Italy) | 126,100 | $968,134 |
| | | | 5,145,513 |
| Application Software–1.15% |
| Adobe, Inc.(e) | 2,593 | 1,239,662 |
| AppLovin Corp., Class A(e) | 2,456 | 416,022 |
| Dassault Systemes SE (France) | 12,707 | 434,899 |
| Datadog, Inc., Class A(e) | 4,814 | 603,868 |
| Fair Isaac Corp.(e) | 311 | 619,857 |
| Guidewire Software, Inc.(e) | 5,243 | 976,561 |
| HubSpot, Inc.(e) | 897 | 497,647 |
| Intuit, Inc. | 2,703 | 1,649,641 |
| Manhattan Associates, Inc.(e) | 1,678 | 441,918 |
| Nice Ltd., ADR (Israel)(e) | 2,909 | 505,293 |
| OBIC Business Consultants Co. Ltd. (Japan) | 5,200 | 229,871 |
| Samsara, Inc., Class A(e) | 13,810 | 659,980 |
| SAP SE (Germany) | 10,004 | 2,335,783 |
| Synopsys, Inc.(e) | 235 | 120,698 |
| Tyler Technologies, Inc.(e) | 1,130 | 684,317 |
| Xero Ltd. (New Zealand)(e) | 3,630 | 352,675 |
| | | | 11,768,692 |
| Asset Management & Custody Banks–0.16% |
| Ares Management Corp., Class A | 7,531 | 1,262,798 |
| Blue Owl Capital, Inc. | 15,944 | 356,508 |
| | | | 1,619,306 |
| Automobile Manufacturers–0.03% |
| Ferrari N.V. (Italy) | 223 | 106,453 |
| Mahindra & Mahindra Ltd. (India) | 4,883 | 157,684 |
| Maruti Suzuki India Ltd. (India) | 646 | 84,789 |
| | | | 348,926 |
| Biotechnology–0.23% |
| Alnylam Pharmaceuticals, Inc.(e) | 1,818 | 484,661 |
| argenx SE, ADR (Netherlands)(e) | 934 | 547,604 |
| CSL Ltd. (Australia) | 2,388 | 448,359 |
| Legend Biotech Corp., ADR(e) | 5,446 | 245,179 |
| Natera, Inc.(e) | 5,502 | 665,522 |
| | | | 2,391,325 |
| Broadline Retail–0.66% |
| Alibaba Group Holding Ltd., ADR (China)(c) | 16,236 | 1,590,803 |
| Allegro.eu S.A. (Poland)(e)(f) | 45,140 | 397,211 |
| Amazon.com, Inc.(e) | 4,079 | 760,326 |
| Dollarama, Inc. (Canada) | 11,203 | 1,165,801 |
| JD.com, Inc., ADR (China)(c) | 36,233 | 1,471,784 |
| Next PLC (United Kingdom) | 8,971 | 1,134,962 |
| PDD Holdings, Inc., ADR (China)(e) | 1,836 | 221,403 |
| | | | 6,742,290 |
| Building Products–0.30% |
| Assa Abloy AB, Class B (Sweden) | 34,658 | 1,085,583 |
| Builders FirstSource, Inc.(e) | 1,902 | 326,003 |
| Carlisle Cos., Inc. | 993 | 419,275 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Global Allocation Fund |
| | Shares | Value |
| Building Products–(continued) |
| Daikin Industries Ltd. (Japan) | 4,500 | $540,255 |
| Lennox International, Inc. | 619 | 372,991 |
| Trane Technologies PLC | 958 | 354,613 |
| | | | 3,098,720 |
| Cargo Ground Transportation–0.06% |
| XPO, Inc.(e) | 4,648 | 606,703 |
| Casinos & Gaming–0.10% |
| Flutter Entertainment PLC (Ireland)(e) | 4,238 | 991,406 |
| Communications Equipment–0.09% |
| Motorola Solutions, Inc. | 2,156 | 968,799 |
| Construction & Engineering–0.19% |
| Comfort Systems USA, Inc. | 1,467 | 573,655 |
| EMCOR Group, Inc. | 996 | 444,286 |
| Quanta Services, Inc. | 3,060 | 922,988 |
| | | | 1,940,929 |
Construction Machinery & Heavy Transportation Equipment–
0.17% |
| Epiroc AB, Class A (Sweden) | 52,365 | 1,022,704 |
| Wabtec Corp. | 3,707 | 696,842 |
| | | | 1,719,546 |
| Construction Materials–0.06% |
| James Hardie Industries PLC, CDI (Australia)(e) | 20,585 | 656,523 |
| Consumer Electronics–0.05% |
| Garmin Ltd. | 2,406 | 477,230 |
| Consumer Finance–0.01% |
| Bajaj Finance Ltd. (India) | 860 | 70,245 |
| Consumer Staples Merchandise Retail–0.02% |
| Wal-Mart de Mexico S.A.B. de C.V., Series V (Mexico) | 87,313 | 240,084 |
| Copper–0.02% |
| Antofagasta PLC (Chile) | 9,685 | 216,330 |
| Distillers & Vintners–0.07% |
| Pernod Ricard S.A. (France) | 5,478 | 683,482 |
| Diversified Banks–0.79% |
| Akbank T.A.S. (Turkey) | 78,701 | 116,347 |
| Banco de Chile (Chile) | 2,627,933 | 305,256 |
| Credicorp Ltd. (Peru) | 2,867 | 527,901 |
| HDFC Bank Ltd. (India) | 85,743 | 1,762,422 |
| ICICI Bank Ltd. (India) | 37,692 | 578,178 |
| ICICI Bank Ltd., ADR (India) | 28,055 | 853,153 |
| Itau Unibanco Holding S.A., Preference Shares (Brazil) | 67,601 | 409,519 |
| Kotak Mahindra Bank Ltd. (India) | 115,874 | 2,378,917 |
| NU Holdings Ltd., Class A (Brazil)(e) | 33,489 | 505,349 |
| PT Bank Central Asia Tbk (Indonesia) | 1,039,600 | 677,797 |
| Sberbank of Russia PJSC (Russia)(e)(g) | 11,951 | 0 |
| | | | 8,114,839 |
| Diversified Capital Markets–0.04% |
| Banco BTG Pactual S.A., Series CPO (Brazil) | 73,000 | 410,656 |
| | Shares | Value |
| Diversified Financial Services–0.07% |
| Bajaj Finserv Ltd. (India) | 2,247 | $46,629 |
| FirstRand Ltd. (South Africa) | 157,275 | 691,018 |
| | | | 737,647 |
| Diversified Metals & Mining–0.12% |
| Grupo Mexico S.A.B. de C.V., Class B (Mexico) | 235,482 | 1,232,045 |
| Diversified Real Estate Activities–0.23% |
| DLF Ltd. (India) | 245,704 | 2,388,408 |
| Drug Retail–0.03% |
| Raia Drogasil S.A. (Brazil) | 75,100 | 316,202 |
| Education Services–0.04% |
| Duolingo, Inc.(e) | 1,275 | 373,537 |
| Electrical Components & Equipment–0.27% |
| Contemporary Amperex Technology Co. Ltd., A Shares (China) | 11,500 | 399,130 |
| Havells India Ltd. (India) | 11,575 | 225,264 |
| Schneider Electric SE (France) | 2,031 | 526,128 |
| Vertiv Holdings Co., Class A | 7,876 | 860,768 |
| Voltronic Power Technology Corp. (Taiwan) | 4,000 | 263,057 |
| WEG S.A. (Brazil) | 54,736 | 512,336 |
| | | | 2,786,683 |
| Electronic Components–0.14% |
| Coherent Corp.(e) | 8,547 | 790,085 |
| TDK Corp. (Japan) | 50,500 | 593,642 |
| | | | 1,383,727 |
| Electronic Equipment & Instruments–0.25% |
| Keyence Corp. (Japan) | 4,600 | 2,076,501 |
| Zebra Technologies Corp., Class A(e) | 1,364 | 521,007 |
| | | | 2,597,508 |
| Electronic Manufacturing Services–0.07% |
| Flex Ltd.(e) | 13,380 | 463,885 |
| Hon Hai Precision Industry Co. Ltd. (Taiwan) | 38,000 | 243,569 |
| | | | 707,454 |
| Environmental & Facilities Services–0.08% |
| Clean Harbors, Inc.(e) | 2,749 | 635,734 |
| Rentokil Initial PLC (United Kingdom) | 37,359 | 187,384 |
| | | | 823,118 |
| Financial Exchanges & Data–0.39% |
| London Stock Exchange Group PLC (United Kingdom) | 8,308 | 1,126,032 |
| S&P Global, Inc. | 4,424 | 2,125,113 |
| Tradeweb Markets, Inc., Class A | 5,681 | 721,487 |
| | | | 3,972,632 |
| Food Retail–0.14% |
| Alimentation Couche-Tard, Inc. (Canada) | 13,304 | 693,794 |
| BIM Birlesik Magazalar A.S. (Turkey) | 8,471 | 115,584 |
| Kobe Bussan Co. Ltd. (Japan) | 15,600 | 382,663 |
| Migros Ticaret A.S. (Turkey) | 2,231 | 26,504 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Global Allocation Fund |
| | Shares | Value |
| Food Retail–(continued) |
| Zabka Group S.A. (Luxembourg)(e) | 42,943 | $230,124 |
| | | | 1,448,669 |
| Footwear–0.07% |
| Deckers Outdoor Corp.(e) | 4,688 | 754,252 |
| Health Care Distributors–0.06% |
| Cencora, Inc. | 2,795 | 637,484 |
| Health Care Equipment–0.26% |
| Boston Scientific Corp.(e) | 3,909 | 328,434 |
| IDEXX Laboratories, Inc.(e) | 401 | 163,175 |
| Insulet Corp.(e) | 1,731 | 400,779 |
| Intuitive Surgical, Inc.(e) | 1,461 | 736,110 |
| ResMed, Inc. | 4,051 | 982,246 |
| | | | 2,610,744 |
| Health Care Facilities–0.20% |
| Encompass Health Corp. | 9,216 | 916,623 |
| Tenet Healthcare Corp.(e) | 7,053 | 1,093,356 |
| | | | 2,009,979 |
| Health Care REITs–0.02% |
| Ventas, Inc. | 3,776 | 247,290 |
| Health Care Services–0.07% |
| Dr Lal PathLabs Ltd. (India)(f) | 18,965 | 700,593 |
| New Horizon Health Ltd. (China)(e)(f)(g) | 81,000 | 36,832 |
| | | | 737,425 |
| Health Care Supplies–0.28% |
| ConvaTec Group PLC (United Kingdom)(f) | 117,796 | 324,932 |
| Cooper Cos., Inc. (The)(e) | 7,650 | 800,802 |
| EssilorLuxottica S.A. (France) | 4,334 | 1,016,574 |
| Hoya Corp. (Japan) | 5,000 | 668,970 |
| | | | 2,811,278 |
| Homebuilding–0.04% |
| PulteGroup, Inc. | 3,363 | 435,609 |
| Homefurnishing Retail–0.04% |
| Williams-Sonoma, Inc. | 2,961 | 397,159 |
| Hotels, Resorts & Cruise Lines–0.62% |
| Amadeus IT Group S.A. (Spain) | 21,497 | 1,558,387 |
| H World Group Ltd. (China) | 4,900 | 18,036 |
| H World Group Ltd., ADR (China)(c) | 67,203 | 2,465,678 |
| Hilton Worldwide Holdings, Inc. | 4,607 | 1,081,954 |
| Marriott International, Inc., Class A | 1,894 | 492,478 |
| Trainline PLC (United Kingdom)(e)(f) | 136,523 | 678,337 |
| | | | 6,294,870 |
| Independent Power Producers & Energy Traders–0.04% |
| Vistra Corp. | 3,148 | 393,374 |
| Industrial Conglomerates–0.25% |
| Hitachi Ltd. (Japan) | 36,500 | 917,057 |
| KOC Holding A.S. (Turkey) | 40,225 | 198,369 |
| Siemens AG (Germany) | 3,985 | 775,281 |
| SM Investments Corp. (Philippines) | 43,514 | 701,646 |
| | | | 2,592,353 |
| | Shares | Value |
| Industrial Gases–0.02% |
| Linde PLC | 356 | $162,389 |
| Industrial Machinery & Supplies & Components–0.43% |
| Aalberts N.V. (Netherlands) | 8,054 | 290,631 |
| Airtac International Group (China) | 9,000 | 249,119 |
| Atlas Copco AB, Class A (Sweden) | 124,772 | 2,059,163 |
| Ingersoll Rand, Inc. | 3,906 | 374,976 |
| ITT, Inc. | 4,389 | 614,987 |
| Parker-Hannifin Corp. | 637 | 403,903 |
| VAT Group AG (Switzerland)(f) | 1,054 | 438,879 |
| | | | 4,431,658 |
| Insurance Brokers–0.08% |
| Arthur J. Gallagher & Co. | 919 | 258,423 |
| Brown & Brown, Inc. | 4,860 | 508,550 |
| | | | 766,973 |
| Integrated Oil & Gas–0.20% |
| Galp Energia SGPS S.A. (Portugal) | 59,405 | 1,015,343 |
| TotalEnergies SE (France) | 16,988 | 1,066,093 |
| | | | 2,081,436 |
| Interactive Home Entertainment–0.04% |
| Capcom Co. Ltd. (Japan) | 11,400 | 225,588 |
| NetEase, Inc., ADR (China) | 2,670 | 214,962 |
| | | | 440,550 |
| Interactive Media & Services–1.44% |
| Alphabet, Inc., Class A | 32,860 | 5,622,674 |
| Auto Trader Group PLC (United Kingdom)(f) | 67,295 | 726,617 |
| Kakao Corp. (South Korea) | 3,789 | 100,847 |
| Meta Platforms, Inc., Class A | 7,981 | 4,529,856 |
| NAVER Corp. (South Korea) | 1,038 | 126,970 |
| Rightmove PLC (United Kingdom) | 70,473 | 536,621 |
| Tencent Holdings Ltd. (China) | 58,717 | 3,061,627 |
| | | | 14,705,212 |
| Internet Services & Infrastructure–0.07% |
| GoDaddy, Inc., Class A(e) | 4,363 | 727,748 |
| Investment Banking & Brokerage–0.13% |
| Evercore, Inc., Class A | 3,145 | 830,814 |
| Jefferies Financial Group, Inc. | 8,167 | 522,525 |
| | | | 1,353,339 |
| IT Consulting & Other Services–0.34% |
| Capgemini SE (France) | 2,175 | 377,321 |
| EPAM Systems, Inc.(e) | 2,789 | 526,145 |
| Gartner, Inc.(e) | 1,112 | 558,780 |
| HCL Technologies Ltd. (India) | 14,270 | 298,594 |
| Infosys Ltd. (India) | 24,421 | 509,535 |
| Tata Consultancy Services Ltd. (India) | 25,078 | 1,179,596 |
| | | | 3,449,971 |
| Life & Health Insurance–0.05% |
| AIA Group Ltd. (Hong Kong) | 60,600 | 478,275 |
| Life Sciences Tools & Services–0.31% |
| Avantor, Inc.(e) | 3,093 | 69,190 |
| Danaher Corp. | 983 | 241,484 |
| Illumina, Inc.(e) | 644 | 92,826 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Global Allocation Fund |
| | Shares | Value |
| Life Sciences Tools & Services–(continued) |
| IQVIA Holdings, Inc.(e) | 2,238 | $460,625 |
| Lonza Group AG (Switzerland) | 1,310 | 806,080 |
| Samsung Biologics Co. Ltd. (South Korea)(e)(f) | 1,191 | 861,379 |
| Sartorius Stedim Biotech (France) | 2,190 | 439,320 |
| Thermo Fisher Scientific, Inc. | 358 | 195,583 |
| | | | 3,166,487 |
| Marine Ports & Services–0.02% |
| Adani Ports & Special Economic Zone Ltd. (India) | 13,636 | 222,480 |
| Movies & Entertainment–0.24% |
| CTS Eventim AG & Co. KGaA (Germany) | 3,430 | 360,202 |
| Netflix, Inc.(e) | 477 | 360,626 |
| Spotify Technology S.A. (Sweden)(e) | 2,358 | 908,066 |
| Universal Music Group N.V. (Netherlands) | 31,376 | 789,614 |
| | | | 2,418,508 |
| Multi-line Insurance–0.03% |
| Allianz SE (Germany) | 1,000 | 314,805 |
| Oil & Gas Equipment & Services–0.02% |
| TechnipFMC PLC (United Kingdom) | 9,492 | 253,342 |
| Oil & Gas Exploration & Production–0.03% |
| Diamondback Energy, Inc. | 1,505 | 266,039 |
| Oil & Gas Refining & Marketing–0.11% |
| Reliance Industries Ltd. (India) | 33,934 | 536,564 |
| Reliance Industries Ltd. (India), | 33,934 | 537,564 |
| | | | 1,074,128 |
| Oil & Gas Storage & Transportation–0.11% |
| Targa Resources Corp. | 6,564 | 1,095,926 |
| Other Specialty Retail–0.11% |
| JD Sports Fashion PLC (United Kingdom) | 523,724 | 839,784 |
| Tractor Supply Co. | 878 | 233,118 |
| | | | 1,072,902 |
| Paper & Plastic Packaging Products & Materials–0.09% |
| Avery Dennison Corp. | 2,208 | 457,122 |
| Packaging Corp. of America | 2,008 | 459,712 |
| | | | 916,834 |
| Passenger Ground Transportation–0.05% |
| Localiza Rent a Car S.A. (Brazil) | 65,616 | 476,947 |
| Personal Care Products–0.06% |
| L’Oreal S.A. (France) | 1,548 | 580,763 |
| Pharmaceuticals–0.62% |
| AstraZeneca PLC (United Kingdom) | 9,143 | 1,300,990 |
| Chugai Pharmaceutical Co. Ltd. (Japan) | 6,800 | 323,554 |
| Daiichi Sankyo Co. Ltd. (Japan) | 21,800 | 709,551 |
| Eli Lilly and Co. | 1,259 | 1,044,643 |
| Novo Nordisk A/S, Class B (Denmark) | 23,594 | 2,646,421 |
| Phathom Pharmaceuticals, Inc.(e) | 11,047 | 189,456 |
| Zoetis, Inc. | 529 | 94,574 |
| | | | 6,309,189 |
| | Shares | Value |
| Property & Casualty Insurance–0.06% |
| Arch Capital Group Ltd.(e) | 6,061 | $597,372 |
| Rail Transportation–0.03% |
| Canadian Pacific Kansas City Ltd. (Canada) | 3,783 | 291,896 |
| Real Estate Development–0.11% |
| Macrotech Developers Ltd. (India)(f) | 20,302 | 290,246 |
| Oberoi Realty Ltd. (India) | 34,674 | 807,900 |
| | | | 1,098,146 |
| Real Estate Operating Companies–0.02% |
| SM Prime Holdings, Inc. (Philippines) | 327,100 | 172,049 |
| Real Estate Services–0.09% |
| Jones Lang LaSalle, Inc.(e) | 3,397 | 920,451 |
| Research & Consulting Services–0.19% |
| Equifax, Inc. | 3,239 | 858,400 |
| Experian PLC | 10,457 | 510,362 |
| Parsons Corp.(e) | 4,888 | 528,686 |
| | | | 1,897,448 |
| Restaurants–0.44% |
| Americana Restaurants International PLC (United Arab Emirates) | 184,132 | 111,515 |
| Cava Group, Inc.(e) | 3,800 | 507,528 |
| Compass Group PLC (United Kingdom) | 31,622 | 1,026,969 |
| Meituan, B Shares (China)(e)(f) | 69,000 | 1,630,496 |
| Texas Roadhouse, Inc. | 4,205 | 803,660 |
| Wingstop, Inc. | 1,071 | 308,116 |
| Yum China Holdings, Inc. (China) | 1,981 | 87,382 |
| | | | 4,475,666 |
| Semiconductor Materials & Equipment–0.28% |
| AIXTRON SE (Germany) | 6,189 | 98,272 |
| ASM International N.V. (Netherlands) | 955 | 533,374 |
| ASML Holding N.V. (Taiwan) | 2,319 | 1,560,991 |
| BE Semiconductor Industries N.V. (Netherlands) | 1,031 | 109,746 |
| Lam Research Corp. | 3,400 | 252,790 |
| Onto Innovation, Inc.(e) | 1,291 | 256,044 |
| | | | 2,811,217 |
| Semiconductors–1.66% |
| Analog Devices, Inc. | 10,090 | 2,251,180 |
| Astera Labs, Inc.(e) | 7,436 | 521,710 |
| Broadcom, Inc. | 2,688 | 456,342 |
| Global Unichip Corp. (Taiwan) | 5,000 | 186,916 |
| MACOM Technology Solutions Holdings, Inc.(e) | 6,821 | 766,680 |
| Marvell Technology, Inc. | 14,532 | 1,164,158 |
| MediaTek, Inc. (Taiwan) | 27,000 | 1,051,060 |
| Monolithic Power Systems, Inc. | 1,258 | 955,199 |
| NVIDIA Corp. | 14,180 | 1,882,537 |
| QUALCOMM, Inc. | 599 | 97,499 |
| SK hynix, Inc. (South Korea) | 5,225 | 684,025 |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | 222,000 | 6,961,805 |
| | | | 16,979,111 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Global Allocation Fund |
| | Shares | Value |
| Soft Drinks & Non-alcoholic Beverages–0.16% |
| Fomento Economico Mexicano S.A.B. de C.V., Series CPO (Mexico) | 166,066 | $1,611,984 |
| Specialty Chemicals–0.06% |
| Ecolab, Inc. | 944 | 231,969 |
| Sika AG (Switzerland)(e) | 1,252 | 348,704 |
| | | | 580,673 |
| Steel–0.05% |
| Steel Dynamics, Inc. | 3,549 | 463,144 |
| Vale S.A., ADR (Brazil) | 2,111 | 22,588 |
| | | | 485,732 |
| Systems Software–0.20% |
| CyberArk Software Ltd.(e) | 2,201 | 608,620 |
| Microsoft Corp. | 2,719 | 1,104,866 |
| Monday.com Ltd.(e) | 1,195 | 351,175 |
| | | | 2,064,661 |
| Technology Hardware, Storage & Peripherals–0.16% |
| Samsung Electronics Co. Ltd. (South Korea) | 37,289 | 1,583,328 |
| Trading Companies & Distributors–0.48% |
| Ashtead Group PLC (United Kingdom) | 10,245 | 766,405 |
| Beijer Ref AB (Sweden) | 25,257 | 380,462 |
| Ferguson Enterprises, Inc. | 4,589 | 902,282 |
| FTAI Aviation Ltd. | 3,643 | 489,765 |
| MonotaRO Co. Ltd. (Japan) | 32,700 | 493,323 |
| RS Group PLC (United Kingdom) | 42,405 | 380,174 |
| United Rentals, Inc. | 994 | 807,923 |
| W.W. Grainger, Inc. | 601 | 666,647 |
| | | | 4,886,981 |
| Transaction & Payment Processing Services–0.25% |
| Affirm Holdings, Inc.(e) | 2,691 | 118,001 |
| Edenred SE (France) | 10,915 | 353,020 |
| Fidelity National Information Services, Inc. | 4,784 | 429,268 |
| Toast, Inc., Class A(e) | 11,190 | 336,036 |
| Visa, Inc., Class A | 4,619 | 1,338,817 |
| | | | 2,575,142 |
| Wireless Telecommunication Services–0.08% |
| America Movil S.A.B. de C.V., ADR (Mexico) | 38,989 | 613,687 |
| | Shares | Value |
| Wireless Telecommunication Services–(continued) |
| Bharti Airtel Ltd. (India) | 11,676 | $223,484 |
| | | | 837,171 |
| Total Common Stocks & Other Equity Interests (Cost $144,829,762) | 184,442,703 |
| Preferred Stocks–0.01% |
| Diversified Banks–0.00% |
| Socium Re Ltd., Series 2019-1, Pfd.(g) | 264,345 | 16,128 |
| Diversified Support Services–0.01% |
| Harambee Re Ltd., Pfd.(g) | 42 | 15,176 |
| Kinesis Reinsurance I Ltd., Series 2019-1, Pfd.(g) | 116,394 | 29,066 |
| Viribus Re Ltd., Pfd.(g) | 351,642 | 23,400 |
| | | | 67,642 |
| Total Preferred Stocks (Cost $1,810,906) | 83,770 |
| Money Market Funds–2.24% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(b)(h) | 8,017,675 | 8,017,675 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(b)(h) | 14,891,654 | 14,891,654 |
| Total Money Market Funds (Cost $22,909,329) | 22,909,329 |
| TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-98.44% (Cost $863,658,653) | | | 1,004,842,791 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–0.57% |
| Invesco Private Government Fund, 4.84%(b)(h)(i) | 1,606,200 | 1,606,200 |
| Invesco Private Prime Fund, 4.99%(b)(h)(i) | 4,199,336 | 4,200,596 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $5,806,809) | 5,806,796 |
| TOTAL INVESTMENTS IN SECURITIES–99.01% (Cost $869,465,462) | 1,010,649,587 |
| OTHER ASSETS LESS LIABILITIES—0.99% | 10,060,818 |
| NET ASSETS–100.00% | $1,020,710,405 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| CDI | – CREST Depository Interest |
| CPO | – Certificates of Ordinary Participation |
| ETF | – Exchange-Traded Fund |
| Pfd. | – Preferred |
| REIT | – Real Estate Investment Trust |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Global Allocation Fund |
Notes to Consolidated Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Invesco Emerging Markets Sovereign Debt ETF | $30,311,000 | $- | $(26,154,893) | $3,112,810 | $578,753 | $7,847,670 | $1,695,518 |
| Invesco High Yield Bond Factor ETF | 22,483,020 | - | - | 1,743,120 | - | 24,226,140 | 1,741,334 |
| Invesco International Developed Dynamic Multifactor ETF | 129,667,617 | - | - | 11,809,119 | - | 141,476,736 | 6,771,221 |
| Invesco Russell 1000® Dynamic Multifactor ETF | 201,179,679 | - | (23,530,020) | 28,817,742 | 11,624,552 | 218,091,953 | 3,084,063 |
| Invesco Russell 2000® Dynamic Multifactor ETF | 51,819,352 | - | - | 11,299,319 | - | 63,118,671 | 999,323 |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | 23,371,061 | 56,735,528 | (72,088,914) | - | - | 8,017,675 | 863,027 |
| Invesco Liquid Assets Portfolio, Institutional Class | 16,694,264 | 27,199,365 | (43,894,667) | (2,051) | 3,089 | - | 501,997 |
| Invesco Treasury Portfolio, Institutional Class | 26,709,785 | 89,768,011 | (101,586,142) | - | - | 14,891,654 | 1,108,442 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 19,124,283 | 310,110,411 | (327,628,494) | - | - | 1,606,200 | 405,477* |
| Invesco Private Prime Fund | 49,970,320 | 710,700,450 | (756,469,347) | 1,036 | (1,863) | 4,200,596 | 1,125,816* |
| Total | $571,330,381 | $1,194,513,765 | $(1,351,352,477) | $56,781,095 | $12,204,531 | $483,477,295 | $18,296,218 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1M. |
| (e) | Non-income producing security. |
| (f) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $6,085,522, which represented less than 1% of the Fund’s Net Assets. |
| (g) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
| (h) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (i) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
| Open Futures Contracts |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Equity Risk |
| E-Mini S&P 500 Index | 659 | December-2024 | $189,083,575 | $1,578,911 | $1,578,911 |
| Interest Rate Risk |
| U.S. Treasury 5 Year Notes | 1,769 | December-2024 | 189,697,609 | (4,246,746) | (4,246,746) |
| U.S. Treasury 10 Year Notes | 554 | December-2024 | 61,199,688 | (1,974,827) | (1,974,827) |
| Subtotal | (6,221,573) | (6,221,573) |
| Subtotal—Long Futures Contracts | (4,642,662) | (4,642,662) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Global Allocation Fund |
| Open Futures Contracts—(continued) |
| Short Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Equity Risk |
| E-Mini Russell 2000 Index | 613 | December-2024 | $(67,693,590) | $(68,503) | $(68,503) |
| MSCI Emerging Markets Index | 379 | December-2024 | (21,347,175) | (516,020) | (516,020) |
| Nikkei 225 Index | 76 | December-2024 | (19,537,712) | (1,600,787) | (1,600,787) |
| S&P/TSX 60 Index | 42 | December-2024 | (8,731,512) | (155,282) | (155,282) |
| SPI 200 Index | 64 | December-2024 | (8,602,683) | 13,625 | 13,625 |
| STOXX Europe 600 Index | 2,702 | December-2024 | (74,403,320) | 2,067,515 | 2,067,515 |
| Subtotal—Short Futures Contracts | (259,452) | (259,452) |
| Total Futures Contracts | $(4,902,114) | $(4,902,114) |
| Open Forward Foreign Currency Contracts |
Settlement
Date | Counterparty | Contract to | Unrealized
Appreciation
(Depreciation) |
| Deliver | Receive |
| Currency Risk | | | | | | |
| 12/18/2024 | BNP Paribas S.A. | NZD | 25,915,000 | USD | 15,930,153 | $434,580 |
| 12/18/2024 | Deutsche Bank AG | THB | 510,640,000 | USD | 15,252,091 | 74,799 |
| 12/18/2024 | Deutsche Bank AG | USD | 9,616,273 | MXN | 195,900,000 | 100,564 |
| 12/18/2024 | Goldman Sachs International | CLP | 1,243,000,000 | USD | 1,305,179 | 12,703 |
| 12/18/2024 | J.P. Morgan Chase Bank, N.A. | CAD | 11,845,000 | USD | 8,735,354 | 214,724 |
| 12/18/2024 | J.P. Morgan Chase Bank, N.A. | EUR | 9,415,000 | USD | 10,417,870 | 157,561 |
| 12/18/2024 | J.P. Morgan Chase Bank, N.A. | KRW | 29,795,810,000 | USD | 22,323,189 | 614,767 |
| 12/18/2024 | Merrill Lynch International | CNY | 34,895,000 | USD | 4,943,175 | 11,769 |
| 12/18/2024 | Merrill Lynch International | PHP | 841,900,000 | USD | 14,926,577 | 484,322 |
| 12/18/2024 | Merrill Lynch International | USD | 1,819,843 | ZAR | 32,835,000 | 35,616 |
| 12/18/2024 | Morgan Stanley and Co. International PLC | CHF | 20,690,000 | USD | 24,691,555 | 614,621 |
| 12/18/2024 | Morgan Stanley and Co. International PLC | JPY | 4,459,540,000 | USD | 31,663,289 | 2,144,132 |
| 12/18/2024 | Morgan Stanley and Co. International PLC | USD | 14,324,802 | INR | 1,207,280,000 | 9,051 |
| 12/18/2024 | Morgan Stanley and Co. International PLC | USD | 428,515 | PEN | 1,620,000 | 592 |
| 12/18/2024 | Standard Chartered Bank PLC | CZK | 337,450,000 | USD | 14,861,213 | 348,272 |
| 12/18/2024 | UBS AG | AUD | 28,035,000 | USD | 18,651,321 | 193,560 |
| 12/18/2024 | UBS AG | DKK | 61,155,000 | USD | 9,078,096 | 139,674 |
| Subtotal—Appreciation | 5,591,307 |
| Currency Risk | | | | | | |
| 12/18/2024 | Barclays Bank PLC | HKD | 1,420,000 | USD | 182,747 | (50) |
| 12/18/2024 | BNP Paribas S.A. | USD | 15,413,430 | SGD | 20,025,000 | (218,704) |
| 12/18/2024 | Deutsche Bank AG | USD | 246,175 | HUF | 88,770,000 | (10,158) |
| 12/18/2024 | Deutsche Bank AG | USD | 15,877,264 | IDR | 246,264,300,000 | (223,877) |
| 12/18/2024 | Deutsche Bank AG | USD | 458,586 | PLN | 1,790,000 | (12,044) |
| 12/18/2024 | Deutsche Bank AG | USD | 6,961,165 | TWD | 221,285,000 | (1,161) |
| 12/18/2024 | Goldman Sachs International | USD | 14,716,911 | BRL | 84,185,000 | (227,741) |
| 12/18/2024 | J.P. Morgan Chase Bank, N.A. | USD | 1,684,923 | GBP | 1,290,000 | (21,672) |
| 12/18/2024 | Merrill Lynch International | USD | 13,056,733 | COP | 56,638,800,000 | (332,379) |
| 12/18/2024 | Morgan Stanley and Co. International PLC | ILS | 1,470,000 | USD | 392,785 | (1,280) |
| 12/18/2024 | Morgan Stanley and Co. International PLC | USD | 1,212,454 | MYR | 5,220,000 | (18,674) |
| 12/18/2024 | UBS AG | USD | 14,436,480 | NOK | 156,460,000 | (209,926) |
| 12/18/2024 | UBS AG | USD | 7,029,713 | SEK | 72,705,000 | (190,085) |
| Subtotal—Depreciation | (1,467,751) |
| Total Forward Foreign Currency Contracts | $4,123,556 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Global Allocation Fund |
| Open Over-The-Counter Total Return Swap Agreements(a) |
| Counterparty | Pay/
Receive | Reference Entity | Floating
Rate
Index | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Equity Risk | | | | | | | | | | | |
| Goldman Sachs International | Pay | MSCI ACWI ex USA Growth Net Total Return Index | SOFR - 0.06% | Quarterly | 272,000 | May—2025 | USD | 83,618,240 | $— | $2,034,560 | $2,034,560 |
| Goldman Sachs International | Pay | Russell Midcap Growth Total Return Index | SOFR + 0.06% | Monthly | 8,300 | September—2025 | USD | 49,872,733 | — | 731,660 | 731,660 |
| Subtotal — Appreciation | | | | | — | 2,766,220 | 2,766,220 |
| Equity Risk | | | | | | | | | | | |
| Goldman Sachs International | Receive | MSCI ACWI Daily Total Return Net ex USA | SOFR + 3.15% | Quarterly | 261,000 | May—2025 | USD | 83,904,975 | — | (1,612,710) | (1,612,710) |
| Total — Total Return Swap Agreements | | | | | $— | $1,153,510 | $1,153,510 |
| (a) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| Abbreviations: |
| AUD | —Australian Dollar |
| BRL | —Brazilian Real |
| CAD | —Canadian Dollar |
| CHF | —Swiss Franc |
| CLP | —Chile Peso |
| CNY | —Chinese Yuan Renminbi |
| COP | —Colombia Peso |
| CZK | —Czech Koruna |
| DKK | —Danish Krone |
| EUR | —Euro |
| GBP | —British Pound Sterling |
| HKD | —Hong Kong Dollar |
| HUF | —Hungarian Forint |
| IDR | —Indonesian Rupiah |
| ILS | —Israel Shekel |
| INR | —Indian Rupee |
| JPY | —Japanese Yen |
| KRW | —South Korean Won |
| MXN | —Mexican Peso |
| MYR | —Malaysian Ringgit |
| NOK | —Norwegian Krone |
| NZD | —New Zealand Dollar |
| PEN | —Peruvian Sol |
| PHP | —Philippines Peso |
| PLN | —Polish Zloty |
| SEK | —Swedish Krona |
| SGD | —Singapore Dollar |
| SOFR | —Secured Overnight Financing Rate |
| THB | —Thai Baht |
| TWD | —New Taiwan Dollar |
| USD | —U.S. Dollar |
| ZAR | —South African Rand |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Global Allocation Fund |
Consolidated Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $492,148,641)* | $527,172,292 |
Investments in affiliates, at value
(Cost $377,316,821) | 483,477,295 |
| Other investments: | |
| Variation margin receivable — futures contracts | 1,048,647 |
| Swaps receivable — OTC | 904,252 |
| Unrealized appreciation on swap agreements — OTC | 2,766,220 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 5,591,307 |
| Cash | 5,736,679 |
| Foreign currencies, at value (Cost $1,115,438) | 1,117,314 |
| Receivable for: | |
| Investments sold | 301,136 |
| Fund shares sold | 181,179 |
| Dividends | 655,325 |
| Interest | 3,768,929 |
| Investment for trustee deferred compensation and retirement plans | 224,549 |
| Other assets | 47,482 |
| Total assets | 1,032,992,606 |
| Liabilities: | |
| Other investments: | |
| Unrealized depreciation on forward foreign currency contracts outstanding | 1,467,751 |
| Swaps payable — OTC | 825,236 |
| Unrealized depreciation on swap agreements—OTC | 1,612,710 |
| Payable for: | |
| Investments purchased | 155,024 |
| Fund shares reacquired | 747,064 |
| Accrued foreign taxes | 689,438 |
| Collateral upon return of securities loaned | 5,806,809 |
| Accrued fees to affiliates | 458,341 |
| Accrued trustees’ and officers’ fees and benefits | 1,677 |
| Accrued other operating expenses | 137,168 |
| Trustee deferred compensation and retirement plans | 380,983 |
| Total liabilities | 12,282,201 |
| Net assets applicable to shares outstanding | $1,020,710,405 |
| Net assets consist of: | |
| Shares of beneficial interest | $894,039,684 |
| Distributable earnings | 126,670,721 |
| | $1,020,710,405 |
| Net Assets: |
| Class A | $885,830,287 |
| Class C | $36,225,615 |
| Class R | $33,484,504 |
| Class Y | $47,788,454 |
| Class R5 | $11,277 |
| Class R6 | $17,370,268 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 45,672,876 |
| Class C | 2,021,590 |
| Class R | 1,785,070 |
| Class Y | 2,453,927 |
| Class R5 | 576 |
| Class R6 | 888,492 |
| Class A: | |
| Net asset value per share | $19.40 |
Maximum offering price per share
(Net asset value of $19.40 ÷ 94.50%) | $20.53 |
| Class C: | |
| Net asset value and offering price per share | $17.92 |
| Class R: | |
| Net asset value and offering price per share | $18.76 |
| Class Y: | |
| Net asset value and offering price per share | $19.47 |
| Class R5: | |
| Net asset value and offering price per share | $19.58 |
| Class R6: | |
| Net asset value and offering price per share | $19.55 |
| * | At October 31, 2024, securities with an aggregate value of $5,640,365 were on loan to brokers. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Global Allocation Fund |
Consolidated Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $10,501,770 |
| Dividends (net of foreign withholding taxes of $246,518) | 5,653,067 |
| Dividends from affiliates (includes net securities lending income of $208,934) | 16,973,859 |
| Foreign withholding tax claims | 88,358 |
| Total investment income | 33,217,054 |
| Expenses: | |
| Advisory fees | 8,209,647 |
| Administrative services fees | 150,767 |
| Custodian fees | 111,761 |
| Distribution fees: | |
| Class A | 2,262,750 |
| Class C | 405,822 |
| Class R | 171,616 |
| Transfer agent fees — A, C, R and Y | 1,522,592 |
| Transfer agent fees — R5 | 4 |
| Transfer agent fees — R6 | 4,885 |
| Trustees’ and officers’ fees and benefits | 75,166 |
| Registration and filing fees | 89,588 |
| Reports to shareholders | 168,352 |
| Professional services fees | 214,820 |
| Other | 111,899 |
| Total expenses | 13,499,669 |
| Less: Fees waived and/or expense offset arrangement(s) | (1,739,071) |
| Net expenses | 11,760,598 |
| Net investment income | 21,456,456 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities (net of foreign taxes of $424,373) | 11,001,461 |
| Affiliated investment securities | 12,204,531 |
| Foreign currencies | 3,026,680 |
| Forward foreign currency contracts | 5,414,827 |
| Futures contracts | 25,934,021 |
| Swap agreements | (11,596,965) |
| | 45,984,555 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities (net of foreign taxes of $311,255) | 52,699,347 |
| Affiliated investment securities | 56,781,095 |
| Foreign currencies | (3,547,724) |
| Forward foreign currency contracts | 1,750,175 |
| Futures contracts | 2,703,408 |
| Swap agreements | (3,318,053) |
| | 107,068,248 |
| Net realized and unrealized gain | 153,052,803 |
| Net increase in net assets resulting from operations | $174,509,259 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Global Allocation Fund |
Consolidated Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $21,456,456 | $19,174,786 |
| Net realized gain (loss) | 45,984,555 | (21,539,143) |
| Change in net unrealized appreciation | 107,068,248 | 61,174,330 |
| Net increase in net assets resulting from operations | 174,509,259 | 58,809,973 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (20,416,379) | (47,881,874) |
| Class C | (658,729) | (2,520,753) |
| Class R | (701,791) | (1,702,221) |
| Class Y | (1,319,836) | (2,864,646) |
| Class R5 | (285) | (683) |
| Class R6 | (401,828) | (2,193,824) |
| Total distributions from distributable earnings | (23,498,848) | (57,164,001) |
| Share transactions–net: | | |
| Class A | (76,413,006) | (30,802,811) |
| Class C | (10,207,978) | (9,452,770) |
| Class R | (2,952,074) | 544,280 |
| Class Y | (7,432,865) | (2,105,706) |
| Class R5 | — | (1,582) |
| Class R6 | 1,577,195 | (24,334,807) |
| Net increase (decrease) in net assets resulting from share transactions | (95,428,728) | (66,153,396) |
| Net increase (decrease) in net assets | 55,581,683 | (64,507,424) |
| Net assets: | | |
| Beginning of year | 965,128,722 | 1,029,636,146 |
| End of year | $1,020,710,405 | $965,128,722 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Global Allocation Fund |
Consolidated Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed(c) | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed(c) | Ratio of net
investment
income
to average
net assets | Portfolio
turnover (d) |
| Class A |
| Year ended 10/31/24 | $16.74 | $0.39 | $2.69 | $3.08 | $(0.42) | $— | $(0.42) | $19.40 | 18.55% | $885,830 | 1.10% | 1.27% | 2.07% | 30% |
| Year ended 10/31/23 | 16.79 | 0.32 | 0.57 | 0.89 | (0.94) | — | (0.94) | 16.74 | 5.30 | 831,967 | 1.11 | 1.27 | 1.84 | 77 |
| Year ended 10/31/22 | 23.79 | 0.26 | (4.25) | (3.99) | (0.47) | (2.54) | (3.01) | 16.79 | (19.06) | 862,663 | 1.15 | 1.23 | 1.36 | 151 |
| Year ended 10/31/21 | 18.75 | 0.22 | 4.82 | 5.04 | — | — | — | 23.79 | 26.88 | 1,173,186 | 1.15 | 1.25 | 1.01 | 51 |
| Year ended 10/31/20 | 18.21 | 0.15 | 0.39 | 0.54 | — | — | — | 18.75 | 2.97 | 999,336 | 1.20 | 1.32 | 0.85 | 82 |
| Class C |
| Year ended 10/31/24 | 15.47 | 0.23 | 2.48 | 2.71 | (0.26) | — | (0.26) | 17.92 | 17.62 | 36,226 | 1.85 | 2.02 | 1.32 | 30 |
| Year ended 10/31/23 | 15.56 | 0.17 | 0.54 | 0.71 | (0.80) | — | (0.80) | 15.47 | 4.51 | 40,307 | 1.86 | 2.02 | 1.09 | 77 |
| Year ended 10/31/22 | 22.23 | 0.11 | (3.95) | (3.84) | (0.29) | (2.54) | (2.83) | 15.56 | (19.63) | 49,615 | 1.90 | 1.98 | 0.61 | 151 |
| Year ended 10/31/21 | 17.66 | 0.05 | 4.52 | 4.57 | — | — | — | 22.23 | 25.88 | 72,605 | 1.90 | 2.00 | 0.26 | 51 |
| Year ended 10/31/20 | 17.28 | 0.02 | 0.36 | 0.38 | — | — | — | 17.66 | 2.20 | 77,710 | 1.95 | 2.07 | 0.10 | 82 |
| Class R |
| Year ended 10/31/24 | 16.20 | 0.33 | 2.59 | 2.92 | (0.36) | — | (0.36) | 18.76 | 18.20 | 33,485 | 1.35 | 1.52 | 1.82 | 30 |
| Year ended 10/31/23 | 16.27 | 0.27 | 0.56 | 0.83 | (0.90) | — | (0.90) | 16.20 | 5.05 | 31,487 | 1.36 | 1.52 | 1.59 | 77 |
| Year ended 10/31/22 | 23.13 | 0.20 | (4.11) | (3.91) | (0.41) | (2.54) | (2.95) | 16.27 | (19.22) | 31,034 | 1.40 | 1.48 | 1.11 | 151 |
| Year ended 10/31/21 | 18.28 | 0.16 | 4.69 | 4.85 | — | — | — | 23.13 | 26.53 | 39,793 | 1.40 | 1.50 | 0.76 | 51 |
| Year ended 10/31/20 | 17.79 | 0.11 | 0.38 | 0.49 | — | — | — | 18.28 | 2.75 | 34,012 | 1.45 | 1.57 | 0.60 | 82 |
| Class Y |
| Year ended 10/31/24 | 16.81 | 0.44 | 2.69 | 3.13 | (0.47) | — | (0.47) | 19.47 | 18.82 | 47,788 | 0.85 | 1.02 | 2.32 | 30 |
| Year ended 10/31/23 | 16.87 | 0.36 | 0.57 | 0.93 | (0.99) | — | (0.99) | 16.81 | 5.52 | 47,784 | 0.86 | 1.02 | 2.09 | 77 |
| Year ended 10/31/22 | 23.89 | 0.31 | (4.26) | (3.95) | (0.53) | (2.54) | (3.07) | 16.87 | (18.84) | 49,841 | 0.90 | 0.98 | 1.61 | 151 |
| Year ended 10/31/21 | 18.78 | 0.28 | 4.83 | 5.11 | — | — | — | 23.89 | 27.21 | 72,519 | 0.90 | 1.00 | 1.26 | 51 |
| Year ended 10/31/20 | 18.21 | 0.20 | 0.38 | 0.58 | (0.01) | — | (0.01) | 18.78 | 3.27 | 65,397 | 0.95 | 1.07 | 1.10 | 82 |
| Class R5 |
| Year ended 10/31/24 | 16.90 | 0.46 | 2.72 | 3.18 | (0.50) | — | (0.50) | 19.58 | 19.00 | 11 | 0.74 | 0.90 | 2.43 | 30 |
| Year ended 10/31/23 | 16.96 | 0.39 | 0.57 | 0.96 | (1.02) | — | (1.02) | 16.90 | 5.64 | 10 | 0.74 | 0.89 | 2.21 | 77 |
| Year ended 10/31/22 | 24.02 | 0.33 | (4.29) | (3.96) | (0.56) | (2.54) | (3.10) | 16.96 | (18.77) | 11 | 0.78 | 0.86 | 1.73 | 151 |
| Year ended 10/31/21 | 18.85 | 0.32 | 4.85 | 5.17 | — | — | — | 24.02 | 27.43 | 15 | 0.76 | 0.86 | 1.40 | 51 |
| Year ended 10/31/20 | 18.24 | 0.24 | 0.39 | 0.63 | (0.02) | — | (0.02) | 18.85 | 3.45 | 11 | 0.76 | 0.87 | 1.29 | 82 |
| Class R6 |
| Year ended 10/31/24 | 16.89 | 0.46 | 2.70 | 3.16 | (0.50) | — | (0.50) | 19.55 | 18.90 | 17,370 | 0.74 | 0.90 | 2.43 | 30 |
| Year ended 10/31/23 | 16.93 | 0.38 | 0.60 | 0.98 | (1.02) | — | (1.02) | 16.89 | 5.77 | 13,573 | 0.74 | 0.89 | 2.21 | 77 |
| Year ended 10/31/22 | 23.98 | 0.33 | (4.28) | (3.95) | (0.56) | (2.54) | (3.10) | 16.93 | (18.77) | 36,473 | 0.78 | 0.86 | 1.73 | 151 |
| Year ended 10/31/21 | 18.83 | 0.31 | 4.84 | 5.15 | — | — | — | 23.98 | 27.35 | 45,281 | 0.76 | 0.86 | 1.40 | 51 |
| Year ended 10/31/20 | 18.22 | 0.24 | 0.39 | 0.63 | (0.02) | — | (0.02) | 18.83 | 3.46 | 36,260 | 0.76 | 0.87 | 1.29 | 82 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Does not include estimated acquired fund fees from underlying funds of 0.18%, 0.20%, 0.15%, 0.17% and 0.14% for the years ended October 31, 2024, 2023, 2022, 2021 and 2020, respectively. |
| (d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Global Allocation Fund |
Notes to Consolidated Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Global Allocation Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Global Allocation Fund (Cayman) Ltd. (the “Subsidiary”), a wholly-owned and controlled subsidiary by the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to commodity-linked derivatives primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives (including commodity futures, financial futures, options and swap contracts), and certain fixed-income securities and other investments that may serve as margin or collateral for its derivatives positions. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures ("Valuation Procedures"). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income 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 consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Consolidated Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all. |
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Consolidated Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Consolidated Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund did not enter into any closing agreements.
| G. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| H. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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 |
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| | to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
| I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser $21,856 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Consolidated Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
| M. | Futures Contracts — The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund |
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| | currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities. |
| N. | Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer "par value" or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing
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additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of October 31, 2024, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
| O. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| P. | Collateral —To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions. |
| Q. | Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
By investing in the Subsidiary, the Fund is indirectly exposed to risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act, and, except as otherwise noted in the Fund’s prospectus, is not subject to the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or the Subsidiary to operate as intended, and could negatively affect the Fund and its shareholders.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser less the amount paid by the Subsidiary to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate* |
| First $1 billion | 0.800% |
| Next $2 billion | 0.760% |
| Next $1 billion | 0.710% |
| Next $1 billion | 0.660% |
| Next $1 billion | 0.600% |
| Next $1 billion | 0.550% |
| Next $2 billion | 0.500% |
| Over $9 billion | 0.480% |
| * | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.78%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund
| 18 | Invesco Global Allocation Fund |
operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of the Fund directly, but are fees and expenses, including management fees, of the investment companies in which the Fund invests. As a result, the total annual fund operating expenses after fee waiver and/or expense reimbursement may exceed the boundary limits above. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $1,649,015.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $58,092 in front-end sales commissions from the sale of Class A shares and $301 and $1,204 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Exchange-Traded Funds | $454,761,170 | $— | $— | $454,761,170 |
| U.S. Treasury Securities | — | 342,645,819 | — | 342,645,819 |
| Common Stocks & Other Equity Interests | 98,049,770 | 86,356,101 | 36,832 | 184,442,703 |
| Preferred Stocks | — | — | 83,770 | 83,770 |
| Money Market Funds | 22,909,329 | 5,806,796 | — | 28,716,125 |
| Total Investments in Securities | 575,720,269 | 434,808,716 | 120,602 | 1,010,649,587 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 3,660,051 | — | — | 3,660,051 |
| Forward Foreign Currency Contracts | — | 5,591,307 | — | 5,591,307 |
| Swap Agreements | — | 2,766,220 | — | 2,766,220 |
| | 3,660,051 | 8,357,527 | — | 12,017,578 |
| 19 | Invesco Global Allocation Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | $(8,562,165) | $— | $— | $(8,562,165) |
| Forward Foreign Currency Contracts | — | (1,467,751) | — | (1,467,751) |
| Swap Agreements | — | (1,612,710) | — | (1,612,710) |
| | (8,562,165) | (3,080,461) | — | (11,642,626) |
| Total Other Investments | (4,902,114) | 5,277,066 | — | 374,952 |
| Total Investments | $570,818,155 | $440,085,782 | $120,602 | $1,011,024,539 |
| * | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). |
NOTE 4—Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| | Value |
| Derivative Assets | Currency
Risk | Equity
Risk | Total |
| Unrealized appreciation on futures contracts —Exchange-Traded(a) | $— | $3,660,051 | $3,660,051 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 5,591,307 | — | 5,591,307 |
| Unrealized appreciation on swap agreements — OTC | — | 2,766,220 | 2,766,220 |
| Total Derivative Assets | 5,591,307 | 6,426,271 | 12,017,578 |
| Derivatives not subject to master netting agreements | — | (3,660,051) | (3,660,051) |
| Total Derivative Assets subject to master netting agreements | $5,591,307 | $2,766,220 | $8,357,527 |
| | Value |
| Derivative Liabilities | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts —Exchange-Traded(a) | $— | $(2,340,592) | $(6,221,573) | $(8,562,165) |
| Unrealized depreciation on forward foreign currency contracts outstanding | (1,467,751) | — | — | (1,467,751) |
| Unrealized depreciation on swap agreements — OTC | — | (1,612,710) | — | (1,612,710) |
| Total Derivative Liabilities | (1,467,751) | (3,953,302) | (6,221,573) | (11,642,626) |
| Derivatives not subject to master netting agreements | — | 2,340,592 | 6,221,573 | 8,562,165 |
| Total Derivative Liabilities subject to master netting agreements | $(1,467,751) | $(1,612,710) | $— | $(3,080,461) |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
| 20 | Invesco Global Allocation Fund |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| | Financial Derivative Assets | | Financial Derivative Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Forward
Foreign
Currency
Contracts | Swap
Agreements | Total
Assets | | Forward
Foreign
Currency
Contracts | Swap
Agreements | Total
Liabilities | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount |
| Barclays Bank PLC | $− | $— | $— | | $(50) | $— | $(50) | $(50) | $— | $— | $(50) |
| BNP Paribas S.A. | 434,580 | — | 434,580 | | (218,704) | — | (218,704) | 215,876 | — | — | 215,876 |
| Deutsche Bank AG | 175,363 | — | 175,363 | | (247,240) | — | (247,240) | (71,877) | — | — | (71,877) |
| Goldman Sachs International | 12,703 | 3,670,472 | 3,683,175 | | (227,741) | (2,437,946) | (2,665,687) | 1,017,488 | — | — | 1,017,488 |
| J.P. Morgan Chase Bank, N.A. | 987,052 | — | 987,052 | | (21,672) | — | (21,672) | 965,380 | (965,380) | — | — |
| Merrill Lynch International | 531,707 | — | 531,707 | | (332,379) | — | (332,379) | 199,328 | — | (199,328) | — |
| Morgan Stanley and Co. International PLC | 2,768,396 | — | 2,768,396 | | (19,954) | — | (19,954) | 2,748,442 | (2,748,442) | — | — |
| Standard Chartered Bank PLC | 348,272 | — | 348,272 | | − | — | — | 348,272 | (287,393) | — | 60,879 |
| UBS AG | 333,234 | — | 333,234 | | (400,011) | — | (400,011) | (66,777) | — | — | (66,777) |
| Total | $5,591,307 | $3,670,472 | $9,261,779 | | $(1,467,751) | $(2,437,946) | $(3,905,697) | $5,356,082 | $(4,001,215) | $(199,328) | $1,155,539 |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Consolidated Statement of Operations |
| | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Realized Gain (Loss): | | | | |
| Forward foreign currency contracts | $5,414,827 | $- | $- | $5,414,827 |
| Futures contracts | - | 19,390,243 | 6,543,778 | 25,934,021 |
| Swap agreements | - | 14,151,127 | (25,748,092) | (11,596,965) |
| Change in Net Unrealized Appreciation (Depreciation): | | | | |
| Forward foreign currency contracts | 1,750,175 | - | - | 1,750,175 |
| Futures contracts | - | 7,189,599 | (4,486,191) | 2,703,408 |
| Swap agreements | - | (3,318,053) | - | (3,318,053) |
| Total | $7,165,002 | $37,412,916 | $(23,690,505) | $20,887,413 |
The table below summarizes the average notional value of derivatives held during the period.
| | Forward
Foreign Currency
Contracts | Futures
Contracts | Swap
Agreements |
| Average notional value | $397,062,262 | $485,846,353 | $250,334,802 |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $90,056.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
| 21 | Invesco Global Allocation Fund |
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $23,498,848 | $57,164,001 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $9,078,767 |
| Net unrealized appreciation — investments | 139,601,400 |
| Net unrealized appreciation (depreciation) — foreign currencies | (56,766) |
| Temporary book/tax differences | (372,862) |
| Capital loss carryforward | (21,579,818) |
| Shares of beneficial interest | 894,039,684 |
| Total net assets | $1,020,710,405 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to derivative instruments and partnerships.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $21,579,818 | $— | $21,579,818 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $73,352,599 and $247,369,830, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $173,909,666 |
| Aggregate unrealized (depreciation) of investments | (34,308,266) |
| Net unrealized appreciation of investments | $139,601,400 |
Cost of investments for tax purposes is $871,423,139.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions and derivative instruments, on October 31, 2024, undistributed net investment income was decreased by $8,067,264, undistributed net realized gain (loss) was increased by $8,324,347 and shares of beneficial interest was decreased by $257,083. This reclassification had no effect on the net assets of the Fund.
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 1,586,906 | $29,772,699 | | 2,104,279 | $36,556,656 |
| Class C | 252,320 | 4,387,981 | | 394,070 | 6,361,218 |
| Class R | 229,618 | 4,152,877 | | 255,761 | 4,299,706 |
| Class Y | 497,495 | 9,383,583 | | 622,323 | 10,775,452 |
| Class R5 | - | - | | 24 | 411 |
| Class R6 | 322,542 | 6,131,641 | | 288,198 | 5,024,613 |
| 22 | Invesco Global Allocation Fund |
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 1,065,313 | $19,314,109 | | 2,688,808 | $45,171,947 |
| Class C | 37,957 | 639,959 | | 156,665 | 2,448,672 |
| Class R | 39,718 | 697,854 | | 103,808 | 1,691,039 |
| Class Y | 58,544 | 1,063,151 | | 135,028 | 2,273,865 |
| Class R5 | - | - | | 6 | 97 |
| Class R6 | 21,487 | 391,281 | | 127,802 | 2,158,573 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 421,665 | 7,914,243 | | 273,668 | 4,749,477 |
| Class C | (454,843) | (7,914,243) | | (295,264) | (4,749,477) |
| Reacquired: | | | | | |
| Class A | (7,096,804) | (133,414,057) | | (6,749,383) | (117,280,891) |
| Class C | (419,436) | (7,321,675) | | (839,249) | (13,513,183) |
| Class R | (428,384) | (7,802,805) | | (323,223) | (5,446,465) |
| Class Y | (943,880) | (17,879,599) | | (870,556) | (15,155,023) |
| Class R5 | - | - | | (117) | (2,090) |
| Class R6 | (259,189) | (4,945,727) | | (1,766,232) | (31,517,993) |
| Net increase (decrease) in share activity | (5,068,971) | $(95,428,728) | | (3,693,584) | $(66,153,396) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 12% 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. |
| 23 | Invesco Global Allocation Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Global Allocation Fund
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of Invesco Global Allocation Fund and its subsidiary (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related consolidated statement of operations for the year ended October 31, 2024, the consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the consolidated financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent, insurance companies and brokers; when replies were not received from insurance companies or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 24 | Invesco Global Allocation Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Global Allocation Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC, Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Custom Invesco Global Allocation Index (Index). The Board noted that performance of Class A shares of the Fund was in the first quintile of its performance universe for the one year period, the fourth quintile for the three year period and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year
| 25 | Invesco Global Allocation Fund |
periods. The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board considered that the Fund underwent a change in portfolio management in 2023. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and the same as, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also
shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’
or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 26 | Invesco Global Allocation Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Qualified Dividend Income* | 18.11% |
| Corporate Dividends Received Deduction* | 2.20% |
| U.S. Treasury Obligations* | 35.07% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 21.22% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 27 | Invesco Global Allocation Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 28 | Invesco Global Allocation Fund |
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-GLAL-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Global Infrastructure Fund
Nasdaq:
A: GIZAX ■ C: GIZCX ■ R: GIZRX ■ Y: GIZYX ■ R5: GIZFX ■ R6: GIZSX
Schedule of Investments
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–99.04% |
| Australia–1.62% |
| APA Group | 207,822 | $951,565 |
| Atlas Arteria Ltd. | 190,306 | 609,212 |
| | | | 1,560,777 |
| Canada–12.71% |
| Canadian Pacific Kansas City Ltd. | 11,045 | 852,044 |
| Enbridge, Inc. | 162,040 | 6,545,143 |
| Gibson Energy, Inc. | 103,755 | 1,721,363 |
| South Bow Corp.(a) | 12,241 | 305,684 |
| TC Energy Corp. | 60,059 | 2,793,422 |
| | | | 12,217,656 |
| China–2.24% |
| China Gas Holdings Ltd. | 232,200 | 199,402 |
| China Resources Gas Group Ltd. | 71,400 | 275,292 |
| China Tower Corp. Ltd., H Shares(b) | 7,566,000 | 1,020,887 |
| ENN Energy Holdings Ltd. | 93,600 | 659,439 |
| | | | 2,155,020 |
| France–9.00% |
| Aeroports de Paris S.A. | 7,244 | 861,799 |
| Getlink SE | 69,717 | 1,184,815 |
| Vinci S.A. | 58,927 | 6,601,043 |
| | | | 8,647,657 |
| Hong Kong–0.98% |
| Hong Kong & China Gas Co. Ltd. (The) | 1,215,000 | 941,097 |
| Italy–1.65% |
| Italgas S.p.A. | 257,591 | 1,580,219 |
| Japan–0.47% |
| Tokyo Gas Co. Ltd. | 18,200 | 449,047 |
| Mexico–1.26% |
| Grupo Aeroportuario del Sureste S.A.B. de C.V., ADR | 4,508 | 1,213,914 |
| Spain–4.85% |
| Aena SME S.A.(b) | 7,589 | 1,681,875 |
| Cellnex Telecom S.A.(b) | 81,103 | 2,978,569 |
| | | | 4,660,444 |
| United Kingdom–7.92% |
| National Grid PLC | 284,263 | 3,569,249 |
| Pennon Group PLC | 219,380 | 1,538,196 |
| Severn Trent PLC | 22,047 | 729,363 |
| SSE PLC | 78,198 | 1,776,924 |
| | | | 7,613,732 |
| United States–56.34% |
| American Tower Corp. | 27,080 | 5,782,663 |
| | Shares | Value |
| United States–(continued) |
| American Water Works Co., Inc. | 12,385 | $1,710,492 |
| Atmos Energy Corp.(c) | 7,868 | 1,091,921 |
| CenterPoint Energy, Inc.(c) | 74,125 | 2,188,911 |
| Cheniere Energy, Inc. | 17,752 | 3,397,378 |
| Consolidated Edison, Inc. | 19,137 | 1,945,850 |
| Crown Castle, Inc. | 19,982 | 2,147,865 |
| CSX Corp. | 27,427 | 922,644 |
| Dominion Energy, Inc. | 32,710 | 1,947,226 |
| Essential Utilities, Inc. | 38,330 | 1,479,538 |
| Evergy, Inc. | 13,174 | 796,237 |
| Eversource Energy | 30,063 | 1,979,649 |
| Ferrovial SE | 28,712 | 1,152,294 |
| Kinder Morgan, Inc. | 91,354 | 2,239,087 |
| National Fuel Gas Co. | 22,800 | 1,380,084 |
| NextEra Energy, Inc. | 23,922 | 1,895,819 |
| ONE Gas, Inc.(c) | 20,304 | 1,447,066 |
| ONEOK, Inc. | 47,422 | 4,594,243 |
| PG&E Corp. | 148,569 | 3,004,065 |
| SBA Communications Corp., Class A | 8,882 | 2,038,153 |
| Sempra | 52,992 | 4,417,943 |
| Targa Resources Corp. | 13,996 | 2,336,772 |
| Williams Cos., Inc. (The) | 51,452 | 2,694,541 |
| Xcel Energy, Inc. | 23,465 | 1,567,697 |
| | | | 54,158,138 |
| Total Common Stocks & Other Equity Interests (Cost $85,122,951) | 95,197,701 |
| Money Market Funds–0.75% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | 252,987 | 252,987 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(d)(e) | 469,825 | 469,825 |
| Total Money Market Funds (Cost $722,812) | 722,812 |
| TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-99.79% (Cost $85,845,763) | | | 95,920,513 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–4.06% |
| Invesco Private Government Fund, 4.84%(d)(e)(f) | 1,062,450 | 1,062,450 |
| Invesco Private Prime Fund, 4.99%(d)(e)(f) | 2,837,941 | 2,838,792 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $3,901,242) | 3,901,242 |
| TOTAL INVESTMENTS IN SECURITIES—103.85% (Cost $89,747,005) | 99,821,755 |
| OTHER ASSETS LESS LIABILITIES–(3.85)% | (3,696,971) |
| NET ASSETS–100.00% | $96,124,784 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Global Infrastructure Fund |
Notes to Schedule of Investments:
| (a) | Non-income producing security. |
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $5,681,331, which represented 5.91% of the Fund’s Net Assets. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $474,556 | $12,150,182 | $(12,371,751) | $- | $- | $252,987 | $16,817 |
| Invesco Liquid Assets Portfolio, Institutional Class | 338,991 | 6,857,948 | (7,196,888) | (30) | (21) | - | 9,950 |
| Invesco Treasury Portfolio, Institutional Class | 542,350 | 15,933,996 | (16,006,521) | - | - | 469,825 | 21,436 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 721,940 | 21,301,974 | (20,961,464) | - | - | 1,062,450 | 14,818* |
| Invesco Private Prime Fund | 1,856,413 | 42,705,621 | (41,722,796) | - | (446) | 2,838,792 | 38,298* |
| Total | $3,934,250 | $98,949,721 | $(98,259,420) | $(30) | $(467) | $4,624,054 | $101,319 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Global Infrastructure Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $85,122,951)* | $95,197,701 |
| Investments in affiliated money market funds, at value (Cost $4,624,054) | 4,624,054 |
| Foreign currencies, at value (Cost $142,673) | 142,526 |
| Receivable for: | |
| Fund shares sold | 44,452 |
| Dividends | 81,743 |
| Investment for trustee deferred compensation and retirement plans | 24,375 |
| Other assets | 37,918 |
| Total assets | 100,152,769 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 28,491 |
| Collateral upon return of securities loaned | 3,901,242 |
| Accrued fees to affiliates | 19,172 |
| Accrued trustees’ and officers’ fees and benefits | 1,219 |
| Accrued other operating expenses | 53,486 |
| Trustee deferred compensation and retirement plans | 24,375 |
| Total liabilities | 4,027,985 |
| Net assets applicable to shares outstanding | $96,124,784 |
| Net assets consist of: | |
| Shares of beneficial interest | $87,008,988 |
| Distributable earnings | 9,115,796 |
| | $96,124,784 |
| Net Assets: |
| Class A | $16,841,268 |
| Class C | $2,555,972 |
| Class R | $4,812,302 |
| Class Y | $8,549,318 |
| Class R5 | $141,007 |
| Class R6 | $63,224,917 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 1,343,574 |
| Class C | 204,254 |
| Class R | 384,324 |
| Class Y | 681,911 |
| Class R5 | 11,233 |
| Class R6 | 5,039,489 |
| Class A: | |
| Net asset value per share | $12.53 |
Maximum offering price per share
(Net asset value of $12.53 ÷ 94.50%) | $13.26 |
| Class C: | |
| Net asset value and offering price per share | $12.51 |
| Class R: | |
| Net asset value and offering price per share | $12.52 |
| Class Y: | |
| Net asset value and offering price per share | $12.54 |
| Class R5: | |
| Net asset value and offering price per share | $12.55 |
| Class R6: | |
| Net asset value and offering price per share | $12.55 |
| * | At October 31, 2024, securities with an aggregate value of $3,814,297 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Global Infrastructure Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Dividends (net of foreign withholding taxes of $206,017) | $3,208,513 |
| Dividends from affiliated money market funds (includes net securities lending income of $1,302) | 49,505 |
| Total investment income | 3,258,018 |
| Expenses: | |
| Advisory fees | 811,260 |
| Administrative services fees | 13,242 |
| Custodian fees | 10,979 |
| Distribution fees: | |
| Class A | 41,888 |
| Class C | 25,916 |
| Class R | 23,659 |
| Transfer agent fees — A, C, R and Y | 71,078 |
| Transfer agent fees — R5 | 121 |
| Transfer agent fees — R6 | 18,248 |
| Trustees’ and officers’ fees and benefits | 21,376 |
| Registration and filing fees | 77,004 |
| Reports to shareholders | 22,626 |
| Professional services fees | 73,572 |
| Other | 10,979 |
| Total expenses | 1,221,948 |
| Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (165,561) |
| Net expenses | 1,056,387 |
| Net investment income | 2,201,631 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | 7,538,523 |
| Affiliated investment securities | (467) |
| Foreign currencies | (2,439) |
| | 7,535,617 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 12,009,741 |
| Affiliated investment securities | (30) |
| Foreign currencies | (242) |
| | 12,009,469 |
| Net realized and unrealized gain | 19,545,086 |
| Net increase in net assets resulting from operations | $21,746,717 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Global Infrastructure Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $2,201,631 | $2,686,798 |
| Net realized gain (loss) | 7,535,617 | (4,488,820) |
| Change in net unrealized appreciation (depreciation) | 12,009,469 | (2,962,753) |
| Net increase (decrease) in net assets resulting from operations | 21,746,717 | (4,764,775) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (468,852) | (447,278) |
| Class C | (53,009) | (45,515) |
| Class R | (119,534) | (101,279) |
| Class Y | (365,010) | (540,136) |
| Class R5 | (3,721) | (2,984) |
| Class R6 | (1,816,576) | (1,384,676) |
| Total distributions from distributable earnings | (2,826,702) | (2,521,868) |
| Share transactions–net: | | |
| Class A | (3,222,247) | (4,688,089) |
| Class C | (712,484) | (206,620) |
| Class R | (660,103) | (345,438) |
| Class Y | (9,603,809) | (9,883,609) |
| Class R5 | 9,683 | (9,427) |
| Class R6 | (1,043,172) | 2,192,721 |
| Net increase (decrease) in net assets resulting from share transactions | (15,232,132) | (12,940,462) |
| Net increase (decrease) in net assets | 3,687,883 | (20,227,105) |
| Net assets: | | |
| Beginning of year | 92,436,901 | 112,664,006 |
| End of year | $96,124,784 | $92,436,901 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Global Infrastructure Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $10.30 | $0.25 | $2.30 | $2.55 | $(0.32) | $— | $(0.32) | $12.53 | 25.03% | $16,841 | 1.25% | 1.53% | 2.12% | 193% |
| Year ended 10/31/23 | 11.12 | 0.26 | (0.83) | (0.57) | (0.25) | — | (0.25) | 10.30 | (5.29) | 16,766 | 1.25 | 1.49 | 2.28 | 168 |
| Year ended 10/31/22 | 12.70 | 0.22 | (1.57) | (1.35) | (0.23) | — | (0.23) | 11.12 | (10.74) | 22,737 | 1.25 | 1.47 | 1.81 | 127 |
| Year ended 10/31/21 | 10.23 | 0.20(d) | 2.46 | 2.66 | (0.19) | — | (0.19) | 12.70 | 26.22 | 20,774 | 1.29 | 1.62 | 1.65(d) | 103 |
| Year ended 10/31/20 | 11.88 | 0.19 | (1.38) | (1.19) | (0.20) | (0.26) | (0.46) | 10.23 | (10.28) | 12,198 | 1.28 | 1.58 | 1.77 | 244 |
| Class C |
| Year ended 10/31/24 | 10.28 | 0.16 | 2.30 | 2.46 | (0.23) | — | (0.23) | 12.51 | 24.15 | 2,556 | 2.00 | 2.28 | 1.37 | 193 |
| Year ended 10/31/23 | 11.10 | 0.18 | (0.84) | (0.66) | (0.16) | — | (0.16) | 10.28 | (6.02) | 2,751 | 2.00 | 2.24 | 1.53 | 168 |
| Year ended 10/31/22 | 12.67 | 0.13 | (1.56) | (1.43) | (0.14) | — | (0.14) | 11.10 | (11.38) | 3,187 | 2.00 | 2.22 | 1.06 | 127 |
| Year ended 10/31/21 | 10.21 | 0.11(d) | 2.46 | 2.57 | (0.11) | — | (0.11) | 12.67 | 25.23 | 3,178 | 2.04 | 2.37 | 0.90(d) | 103 |
| Year ended 10/31/20 | 11.85 | 0.11 | (1.37) | (1.26) | (0.12) | (0.26) | (0.38) | 10.21 | (10.94) | 2,130 | 2.03 | 2.33 | 1.02 | 244 |
| Class R |
| Year ended 10/31/24 | 10.29 | 0.22 | 2.30 | 2.52 | (0.29) | — | (0.29) | 12.52 | 24.74 | 4,812 | 1.50 | 1.78 | 1.87 | 193 |
| Year ended 10/31/23 | 11.11 | 0.23 | (0.83) | (0.60) | (0.22) | — | (0.22) | 10.29 | (5.54) | 4,553 | 1.50 | 1.74 | 2.03 | 168 |
| Year ended 10/31/22 | 12.69 | 0.19 | (1.57) | (1.38) | (0.20) | — | (0.20) | 11.11 | (10.99) | 5,267 | 1.50 | 1.72 | 1.56 | 127 |
| Year ended 10/31/21 | 10.22 | 0.17(d) | 2.47 | 2.64 | (0.17) | — | (0.17) | 12.69 | 25.93 | 5,241 | 1.54 | 1.87 | 1.40(d) | 103 |
| Year ended 10/31/20 | 11.87 | 0.16 | (1.37) | (1.21) | (0.18) | (0.26) | (0.44) | 10.22 | (10.53) | 3,326 | 1.53 | 1.83 | 1.52 | 244 |
| Class Y |
| Year ended 10/31/24 | 10.30 | 0.27 | 2.32 | 2.59 | (0.35) | — | (0.35) | 12.54 | 25.44 | 8,549 | 1.00 | 1.28 | 2.37 | 193 |
| Year ended 10/31/23 | 11.13 | 0.29 | (0.84) | (0.55) | (0.28) | — | (0.28) | 10.30 | (5.13) | 15,740 | 1.00 | 1.24 | 2.53 | 168 |
| Year ended 10/31/22 | 12.70 | 0.26 | (1.56) | (1.30) | (0.27) | — | (0.27) | 11.13 | (10.44) | 26,747 | 1.00 | 1.22 | 2.06 | 127 |
| Year ended 10/31/21 | 10.23 | 0.23(d) | 2.46 | 2.69 | (0.22) | — | (0.22) | 12.70 | 26.53 | 21,558 | 1.04 | 1.37 | 1.90(d) | 103 |
| Year ended 10/31/20 | 11.89 | 0.22 | (1.39) | (1.17) | (0.23) | (0.26) | (0.49) | 10.23 | (10.11) | 11,910 | 1.03 | 1.33 | 2.02 | 244 |
| Class R5 |
| Year ended 10/31/24 | 10.31 | 0.28 | 2.31 | 2.59 | (0.35) | — | (0.35) | 12.55 | 25.42 | 141 | 1.00 | 1.18 | 2.37 | 193 |
| Year ended 10/31/23 | 11.14 | 0.29 | (0.84) | (0.55) | (0.28) | — | (0.28) | 10.31 | (5.12) | 107 | 1.00 | 1.16 | 2.53 | 168 |
| Year ended 10/31/22 | 12.72 | 0.26 | (1.57) | (1.31) | (0.27) | — | (0.27) | 11.14 | (10.50) | 125 | 1.00 | 1.13 | 2.06 | 127 |
| Year ended 10/31/21 | 10.24 | 0.23(d) | 2.47 | 2.70 | (0.22) | — | (0.22) | 12.72 | 26.61 | 37 | 1.02 | 1.14 | 1.92(d) | 103 |
| Year ended 10/31/20 | 11.89 | 0.22 | (1.39) | (1.17) | (0.22) | (0.26) | (0.48) | 10.24 | (10.11) | 10 | 1.03 | 1.15 | 2.02 | 244 |
| Class R6 |
| Year ended 10/31/24 | 10.31 | 0.28 | 2.31 | 2.59 | (0.35) | — | (0.35) | 12.55 | 25.42 | 63,225 | 1.00 | 1.11 | 2.37 | 193 |
| Year ended 10/31/23 | 11.14 | 0.29 | (0.84) | (0.55) | (0.28) | — | (0.28) | 10.31 | (5.12) | 52,519 | 1.00 | 1.09 | 2.53 | 168 |
| Year ended 10/31/22 | 12.71 | 0.26 | (1.56) | (1.30) | (0.27) | — | (0.27) | 11.14 | (10.43) | 54,601 | 1.00 | 1.06 | 2.06 | 127 |
| Year ended 10/31/21 | 10.24 | 0.23(d) | 2.47 | 2.70 | (0.23) | — | (0.23) | 12.71 | 26.53 | 67,617 | 1.02 | 1.14 | 1.92(d) | 103 |
| Year ended 10/31/20 | 11.89 | 0.22 | (1.39) | (1.17) | (0.22) | (0.26) | (0.48) | 10.24 | (10.10) | 48,033 | 1.00 | 1.15 | 2.05 | 244 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2020, the portfolio turnover calculation excludes the value of securities purchased of $109,495,771 and sold of $26,558,548 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Oppenheimer Global Infrastructure Fund into the Fund. |
| (d) | Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends for the year ended October 31, 2021 are $0.16 and 1.31%, $0.07 and 0.56%, $0.13 and 1.06%, $0.19 and 1.56%, $0.19 and 1.58% and $0.19 and 1.58% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Global Infrastructure Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Global Infrastructure Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is total return through growth of capital and current income.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 8 | Invesco Global Infrastructure Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions - Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of |
| 9 | Invesco Global Infrastructure Fund |
| | compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| J. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| K. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| L. | Other Risks – The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly. |
Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate |
| First $1 billion | 0.8400% |
| Next $1 billion | 0.8000% |
| Next $3 billion | 0.7800% |
| Over $5 billion | 0.7325% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.84%.
| 10 | Invesco Global Infrastructure Fund |
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least February 28, 2026, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 to 1.25%, 2.00%, 1.50%, 1.00%, 1.00% and 1.00%, respectively of the Fund’s average daily net assets (the "expense limits"). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2026. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $72,097 and reimbursed class level expenses of $33,812, $5,207, $9,505, $22,554, $121 and $18,248 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $2,737 in front-end sales commissions from the sale of Class A shares and $0 and $106 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $23,616 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 11 | Invesco Global Infrastructure Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Australia | $— | $1,560,777 | $— | $1,560,777 |
| Canada | 12,217,656 | — | — | 12,217,656 |
| China | — | 2,155,020 | — | 2,155,020 |
| France | — | 8,647,657 | — | 8,647,657 |
| Hong Kong | — | 941,097 | — | 941,097 |
| Italy | — | 1,580,219 | — | 1,580,219 |
| Japan | — | 449,047 | — | 449,047 |
| Mexico | 1,213,914 | — | — | 1,213,914 |
| Spain | — | 4,660,444 | — | 4,660,444 |
| United Kingdom | — | 7,613,732 | — | 7,613,732 |
| United States | 53,005,844 | 1,152,294 | — | 54,158,138 |
| Money Market Funds | 722,812 | 3,901,242 | — | 4,624,054 |
| Total Investments | $67,160,226 | $32,661,529 | $— | $99,821,755 |
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $4,017.
NOTE 5—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $2,640,766 | $2,521,868 |
| Long-term capital gain | 185,936 | — |
| Total distributions | $2,826,702 | $2,521,868 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed long-term capital gain | $270,869 |
| Net unrealized appreciation — investments | 8,862,748 |
| Net unrealized appreciation (depreciation) — foreign currencies | (419) |
| Temporary book/tax differences | (17,402) |
| Shares of beneficial interest | 87,008,988 |
| Total net assets | $96,124,784 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
| 12 | Invesco Global Infrastructure Fund |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $183,897,387 and $199,098,629, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $10,065,005 |
| Aggregate unrealized (depreciation) of investments | (1,202,257) |
| Net unrealized appreciation of investments | $8,862,748 |
Cost of investments for tax purposes is $90,959,007.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of partnerships and distributions, on October 31, 2024, undistributed net investment income was increased by $256,559, undistributed net realized gain (loss) was decreased by $256,392 and shares of beneficial interest was decreased by $167. This reclassification had no effect on the net assets of the Fund.
NOTE 10—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 106,330 | $1,242,749 | | 249,179 | $2,919,739 |
| Class C | 29,009 | 336,730 | | 51,835 | 601,604 |
| Class R | 46,951 | 542,423 | | 91,233 | 1,041,120 |
| Class Y | 333,152 | 3,775,502 | | 697,641 | 8,191,314 |
| Class R5 | 1,417 | 16,027 | | 1,819 | 21,191 |
| Class R6 | 280,734 | 3,191,961 | | 141,994 | 1,678,396 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 35,969 | 414,881 | | 34,004 | 378,449 |
| Class C | 4,310 | 49,560 | | 3,993 | 44,075 |
| Class R | 10,357 | 119,478 | | 9,132 | 101,192 |
| Class Y | 19,599 | 226,094 | | 23,551 | 263,782 |
| Class R5 | 292 | 3,391 | | 245 | 2,722 |
| Class R6 | 156,915 | 1,816,227 | | 124,736 | 1,384,398 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 19,703 | 224,996 | | 14,158 | 162,141 |
| Class C | (19,737) | (224,996) | | (14,181) | (162,141) |
| Reacquired: | | | | | |
| Class A | (446,509) | (5,104,873) | | (713,031) | (8,148,418) |
| Class C | (76,941) | (873,778) | | (61,024) | (690,158) |
| Class R | (115,524) | (1,322,004) | | (131,739) | (1,487,750) |
| Class Y | (1,198,897) | (13,605,405) | | (1,596,975) | (18,338,705) |
| Class R5 | (834) | (9,735) | | (2,907) | (33,340) |
| Class R6 | (493,567) | (6,051,360) | | (74,837) | (870,073) |
| Net increase (decrease) in share activity | (1,307,271) | $(15,232,132) | | (1,151,174) | $(12,940,462) |
| (a) | 66% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
NOTE 11—Subsequent Event
At a meeting held on December 11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will be closed to investments by new accounts after the close of business on January 17, 2025. The Fund will be liquidated on or about March 20, 2025.
| 13 | Invesco Global Infrastructure Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Global Infrastructure Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Global Infrastructure Fund (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 14 | Invesco Global Infrastructure Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Global Infrastructure Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement as well as the sub-advisory contracts for the Fund, as Invesco Asset Management Limited currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Dow Jones Brookfield Global Infrastructure Index (Index). The Board noted that performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one year period, the third quintile for the three year period and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board considered that underweight exposure to and stock selection in certain energy sectors detracted from Fund
| 15 | Invesco Global Infrastructure Fund |
performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and below, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.
| D. | Economies of Scale and Breakpoints |
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco
Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board
also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 16 | Invesco Global Infrastructure Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Long-Term Capital Gain Distributions | $185,936 |
| Qualified Dividend Income* | 100.00% |
| Corporate Dividends Received Deduction* | 50.84% |
| U.S. Treasury Obligations* | 0.00% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 0.00% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 17 | Invesco Global Infrastructure Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 18 | Invesco Global Infrastructure Fund |
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | GBLI-NCSR |
Annual Financial Statements and Other InformationOctober 31, 2024
Invesco Global Strategic Income Fund
A: OPSIX ■ C: OSICX ■ R: OSINX ■ Y: OSIYX ■ R5: GLSSX ■ R6: OSIIX
| Consolidated Schedule of Investments |
| Consolidated Financial Statements |
| Consolidated Financial Highlights |
| Notes to Consolidated Financial Statements |
| Report of Independent Registered Public Accounting Firm |
| Approval of Investment Advisory and Sub-Advisory Contracts |
| |
| Other Information Required in Form N-CSR (Items 8-11) |
Consolidated Schedule of Investments
| | |
U.S. Government Sponsored Agency Mortgage-Backed Securities–51.29% |
Fannie Mae Grantor Trust, | | |
| | | |
| | | |
Fannie Mae Interest STRIPS, | | |
| | | |
| | | |
| | | |
| | | |
| | |
IO,
2.63% (7.60% - (30 Day Average SOFR + 0.11%)), | | | |
2.88% (7.90% - (30 Day Average SOFR + 0.11%)), 11/18/2031 - | | | |
2.93% (7.90% - (30 Day Average SOFR + 0.11%)), | | | |
2.98% (7.95% - (30 Day Average SOFR + 0.11%)), | | | |
2.98% (8.00% - (30 Day Average SOFR + 0.11%)), | | | |
3.13% (8.10% - (30 Day Average SOFR + 0.11%)), 03/25/2032 - | | | |
2.03% (7.00% - (30 Day Average SOFR + 0.11%)), | | | |
2.83% (7.80% - (30 Day Average SOFR + 0.11%)), | | | |
3.03% (8.00% - (30 Day Average SOFR + 0.11%)), 07/25/2032 - | | | |
3.08% (8.10% - (30 Day Average SOFR + 0.11%)), | | | |
3.23% (8.20% - (30 Day Average SOFR + 0.11%)), | | | |
3.28% (8.25% - (30 Day Average SOFR + 0.11%)), 02/25/2033 - | | | |
| | | |
2.58% (7.55% - (30 Day Average SOFR + 0.11%)), | | | |
| | |
1.08% (6.05% - (30 Day Average SOFR + 0.11%)), 03/25/2035 - | | | |
1.78% (6.75% - (30 Day Average SOFR + 0.11%)), 03/25/2035 - | | | |
1.63% (6.60% - (30 Day Average SOFR + 0.11%)), | | | |
1.73% (6.70% - (30 Day Average SOFR + 0.11%)), | | | |
2.26% (7.23% - (30 Day Average SOFR + 0.11%)), | | | |
1.57% (6.54% - (30 Day Average SOFR + 0.11%)), | | | |
| | | |
1.58% (6.55% - (30 Day Average SOFR + 0.11%)), | | | |
1.18% (6.15% - (30 Day Average SOFR + 0.11%)), | | | |
| | | |
6.50%, 10/25/2028 - 04/25/2029 | | | |
6.00%, 05/25/2031 - 01/25/2032 | | | |
5.97% (30 Day Average SOFR + 1.11%), 04/25/2032 - | | | |
5.52% (30 Day Average SOFR + 0.61%), | | | |
5.47% (30 Day Average SOFR + 0.61%), | | | |
5.37% (30 Day Average SOFR + 0.51%), | | | |
6.34% (24.57% - (3.67 x (30 Day Average SOFR + | | | |
5.97% (24.20% - (3.67 x (30 Day Average SOFR + | | | |
5.91% (30 Day Average SOFR + 1.05%), | | | |
| | | |
Federal Home Loan Mortgage Corp., | | |
| | | |
| | | |
| | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
2
Invesco Global Strategic Income Fund
| | |
Federal National Mortgage Association, | | |
| | | |
| | | |
| | | |
| | | |
Freddie Mac Multifamily Structured Pass-Through Ctfs., | | |
Series K734, Class X1, IO, | | | |
Series K735, Class X1, IO, | | | |
Series K093, Class X1, IO, | | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
6.50%, 02/15/2028 - 06/15/2032 | | | |
5.57% (30 Day Average SOFR + 0.56%), | | | |
5.77% (30 Day Average SOFR + 0.76%), | | | |
6.12% (30 Day Average SOFR + 1.11%), 02/15/2032 - | | | |
| | | |
5.62% (30 Day Average SOFR + 0.61%), | | | |
5.96% (24.75% - (3.67 x (30 Day Average SOFR + | | | |
| | | |
| | | |
3.66% (8.70% - (30 Day Average SOFR + 0.11%)), | | | |
2.98% (8.10% - (30 Day Average SOFR + 0.11%)), | | | |
3.83% (8.95% - (30 Day Average SOFR + 0.11%)), | | | |
1.93% (7.05% - (30 Day Average SOFR + 0.11%)), | | | |
1.58% (6.70% - (30 Day Average SOFR + 0.11%)), | | | |
1.63% (6.75% - (30 Day Average SOFR + 0.11%)), | | | |
| | |
1.60% (6.72% - (30 Day Average SOFR + 0.11%)), | | | |
1.03% (6.15% - (30 Day Average SOFR + 0.11%)), | | | |
1.88% (7.00% - (30 Day Average SOFR + 0.11%)), | | | |
0.88% (6.00% - (30 Day Average SOFR + 0.11%)), | | | |
0.95% (6.07% - (30 Day Average SOFR + 0.11%)), | | | |
1.13% (6.25% - (30 Day Average SOFR + 0.11%)), | | | |
Government National Mortgage Association, | | |
ARM, 4.63% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), | | | |
7.00%, 01/15/2028 - 01/20/2030 | | | |
8.00%, 01/15/2028 - 09/15/2028 | | | |
IO,
1.65% (6.55% - (1 mo. Term SOFR + 0.11%)), | | | |
1.75% (6.65% - (1 mo. Term SOFR + 0.11%)), | | | |
| | | |
| | | |
Uniform Mortgage-Backed Securities, TBA, 6.00%, | | | |
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $798,678,115) | |
| | |
U.S. Dollar Denominated Bonds & Notes–35.80% |
|
Argentine Republic Government International Bond, 1.75%, | | | |
| | | |
| | |
| | | |
| | | |
| | | |
|
QBE Insurance Group Ltd., | | | |
|
Telenet Finance Luxembourg Notes S.a.r.l., 5.50%, | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
3
Invesco Global Strategic Income Fund
| | |
|
Braskem Netherlands Finance B.V., 8.00%, | | | |
Brazilian Government International Bond, 6.13%, 01/22/2032 | | | |
CSN Inova Ventures, 6.75%, | | | |
Minerva (Luxembourg) S.A., | | | |
Sitios Latinoamerica S.A.B. de C.V., 5.38%, | | | |
Suzano Austria GmbH, 2.50%, 09/15/2028 | | | |
| | | |
|
1011778 BC ULC/New Red Finance, Inc., 5.63%, | | | |
| | | |
Brookfield Finance, Inc., 5.97%, 03/04/2054 | | | |
Constellation Software, Inc., | | | |
Element Fleet Management Corp., | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Northriver Midstream Finance L.P., 6.75%, | | | |
Ritchie Bros. Holdings, Inc., | | | |
South Bow Canadian Infrastructure Holdings Ltd., 7.63%, | | | |
Transcanada Trust, Series 16-A, 5.88%, | | | |
| | | |
| | | |
|
| | | |
Banco de Credito e Inversiones S.A., | | | |
Banco del Estado de Chile, | | | |
Chile Electricity Lux MPC II S.a.r.l., 5.58%, | | | |
Mercury Chile Holdco LLC, | | | |
| | |
|
Sociedad Quimica y Minera de Chile S.A., 5.50%, | | | |
| | | |
|
| | | |
|
| | |
| | | |
| | | |
| | | |
|
Allwyn Entertainment Financing (UK) PLC, 7.88%, | | | |
|
Aeropuertos Dominicanos Siglo XXI S.A., 7.00%, | | | |
Dominican Republic International Bond, | | |
| | | |
| | | |
| | | |
|
Ecuador Government International Bond, | | | |
|
| | | |
Electricite de France S.A., | | | |
| | |
| | | |
| | | |
| | | |
| | | |
|
| | |
| | | |
| | | |
Cerdia Finanz GmbH, 9.38%, | | | |
ZF North America Capital, Inc., | | | |
| | | |
|
Melco Resorts Finance Ltd., | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
4
Invesco Global Strategic Income Fund
| | |
|
Adani Ports & Special Economic Zone Ltd., | | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
|
PT Bank Tabungan Negara (Persero) Tbk, 4.20%, | | | |
PT Perusahaan Perseroan (Persero) Perusahaan Listrik Negara, 4.13%, | | | |
| | | |
|
| | | |
|
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.95%, | | | |
BB Blue Financing DAC, Series A1, 4.40%, 09/20/2037 | | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
GGAM Finance Ltd., 6.88%, | | | |
| | | |
|
Telecom Italia Capital S.A., | | | |
|
| | |
| | | |
| | | |
Studio City Finance Ltd., | | | |
| | |
|
| | |
| | | |
| | | |
| | | |
|
Banco Mercantil del Norte | | | |
| | | |
CEMEX Materials LLC, 7.70%, | | | |
| | | |
FIEMEX Energia - Banco Actinver S.A. Institucion de Banca Multiple, 7.25%, | | | |
Nemak S.A.B. de C.V., 3.63%, | | | |
| | |
| | | |
| | | |
| | | |
|
IHS Netherlands Holdco B.V., | | | |
Nigeria Government International Bond, | | | |
| | | |
|
Sable International Finance Ltd., 7.13%, | | | |
Telecomunicaciones Digitales S.A., 4.50%, | | | |
| | | |
|
Senegal Government International Bond, | | |
| | | |
| | | |
| | | |
|
Telecommunications Co. Telekom Srbija Akcionarsko drustvo, Belgrade, 7.00%, | | | |
|
Republic of South Africa Government International Bond, 4.85%, 09/30/2029 | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5
Invesco Global Strategic Income Fund
| | |
|
California Buyer Ltd./Atlantica Sustainable Infrastructure PLC, 6.38%, | | | |
|
European Bank for Reconstruction & Development, 6.40%, 08/27/2025 | | | |
|
Stena International S.A., | | |
| | | |
| | | |
| | | |
|
Argentum Netherlands B.V. for Swiss Re Ltd., 5.63%, | | | |
| | | |
UBS Group AG, 6.88%(g)(h)(j) | | | |
Willow No 2 Ireland PLC for Zurich Insurance Co. Ltd., | | | |
| | | |
|
Turkcell Iletisim Hizmetleri A.S., 5.80%, | | | |
Zorlu Enerji Elektrik Uretim A.S., 11.00%, | | | |
| | | |
|
| | | |
B.A.T Capital Corp., 6.00%, 02/20/2034 | | | |
British Telecommunications PLC, 4.25%, | | | |
| | | |
Macquarie Airfinance Holdings Ltd., 6.50%, | | | |
| | | |
| | | |
Virgin Media Secured Finance PLC, 5.50%, | | | |
| | |
| | | |
| | | |
Zegona Finance PLC, 8.63%, | | | |
| | | |
| | |
|
Acrisure LLC/Acrisure Finance, Inc., 7.50%, | | | |
| | | |
Aethon United BR L.P./Aethon United Finance Corp., | | | |
| | |
| | | |
| | | |
| | | |
Aircastle Ltd., 5.25%(g)(h)(j) | | | |
Alcoa Nederland Holding B.V., | | | |
Alliant Holdings Intermediate LLC/ Alliant Holdings Co-Issuer, | | |
| | | |
| | | |
Allison Transmission, Inc., | | | |
AMC Networks, Inc., 10.25%, | | | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | |
| | | |
| | | |
| | | |
Ares Capital Corp., 5.88%, | | | |
Ashton Woods USA LLC/Ashton Woods Finance Co., | | | |
| | |
| | | |
| | | |
Bausch Health Cos., Inc., | | |
| | | |
| | | |
Becton, Dickinson and Co., 3.79%, 05/20/2050 | | | |
Berry Global, Inc., 5.65%, | | | |
| | | |
Boeing Co. (The), 4.88%, 05/01/2025 | | | |
| | | |
Brink’s Co. (The), 6.75%, | | | |
Cardinal Health, Inc., 5.13%, 02/15/2029 | | | |
| | | |
| | | |
Catalent Pharma Solutions, Inc., 3.50%, | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6
Invesco Global Strategic Income Fund
| | |
United States–(continued) |
CCO Holdings LLC/CCO Holdings Capital Corp., | | |
| | | |
| | | |
| | | |
| | | |
CD&R Smokey Buyer, Inc./Radio Systems Corp., | | | |
Charles Schwab Corp. (The), | | | |
Cheniere Energy, Inc., 5.65%, 04/15/2034 | | | |
Citigroup, Inc., Series CC, | | | |
| | |
| | | |
| | | |
| | | |
Cloud Software Group, Inc., | | |
| | | |
| | | |
Clydesdale Acquisition Holdings, Inc., 6.63%, | | | |
Community Health Systems, Inc., | | |
| | | |
| | | |
| | | |
| | | |
Concentra Escrow Issuer Corp., 6.88%, | | | |
| | | |
Coty, Inc./HFC Prestige Products, Inc./HFC Prestige International US LLC, | | | |
Cougar JV Subsidiary LLC, | | | |
Cox Communications, Inc., | | | |
| | | |
| | | |
Delek Logistics Partners L.P./Delek Logistics Finance Corp., 7.13%, | | | |
Dell International LLC/EMC Corp., 6.20%, 07/15/2030 | | | |
Diversified Healthcare Trust, | | | |
Duke Energy Corp., 6.45%, | | | |
EMRLD Borrower L.P./Emerald Co-Issuer, Inc., 6.63%, | | | |
Endo Finance Holdings, Inc., | | | |
| | |
United States–(continued) |
| | |
| | | |
| | | |
| | |
| | | |
| | | |
Enpro, Inc., 5.75%, 10/15/2026 | | | |
| | | |
| | | |
| | | |
Ford Motor Credit Co. LLC, 5.13%, 06/16/2025 | | | |
Fortress Transportation and Infrastructure Investors LLC, | | |
| | | |
| | | |
| | | |
Freeport-McMoRan, Inc., 4.63%, 08/01/2030 | | | |
| | | |
General Motors Co., 6.80%, | | | |
Genesis Energy L.P./Genesis Energy Finance Corp., | | |
| | | |
| | | |
| | | |
| | | |
Global Atlantic (Fin) Co., | | | |
Goldman Sachs Group, Inc. (The), Series X, 7.50%(h)(j) | | | |
Golub Capital Private Credit Fund, 5.80%, | | | |
| | | |
Greystar Real Estate Partners LLC, 7.75%, | | | |
Group 1 Automotive, Inc., | | | |
Harley-Davidson Financial Services, Inc., 3.35%, | | | |
Hilcorp Energy I L.P., 7.25%, | | | |
Hilcorp Energy I L.P./Hilcorp Finance Co., | | |
| | | |
| | | |
Hilton Domestic Operating Co., Inc., 6.13%, | | | |
Howard Midstream Energy Partners LLC, 7.38%, | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7
Invesco Global Strategic Income Fund
| | |
United States–(continued) |
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., 9.00%, 06/15/2030 | | | |
| | |
| | | |
| | | |
| | | |
| | | |
Jane Street Group/JSG Finance, Inc., | | |
| | | |
| | | |
Jefferson Capital Holdings LLC, 9.50%, | | | |
Kinder Morgan, Inc., 5.00%, 02/01/2029 | | | |
L3Harris Technologies, Inc., 5.40%, 01/15/2027 | | | |
| | | |
Lamar Media Corp., 4.88%, | | | |
LCM Investments Holdings II LLC, 8.25%, | | | |
| | |
| | | |
| | | |
| | | |
Lions Gate Capital Holdings 1, Inc., 5.50%, | | | |
Lithia Motors, Inc., 3.88%, | | | |
Macy’s Retail Holdings LLC, | | |
| | | |
| | | |
Marriott International, Inc., Series EE, 5.75%, 05/01/2025 | | | |
Match Group Holdings II LLC, | | | |
Mativ Holdings, Inc., 8.00%, | | | |
| | | |
| | | |
MPT Operating Partnership L.P./MPT Finance Corp., 3.50%, 03/15/2031 | | | |
Nationstar Mortgage Holdings, Inc., | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | |
| | | |
| | | |
| | |
United States–(continued) |
| | | |
| | | |
New Fortress Energy, Inc., | | | |
| | |
| | | |
| | | |
NextEra Energy Capital Holdings, Inc., 6.75%, | | | |
NGL Energy Operating LLC/NGL Energy Finance Corp., | | |
| | | |
| | | |
| | | |
Office Properties Income Trust, 9.00%, | | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
Owens-Brockway Glass Container, Inc., 7.25%, | | | |
| | |
| | | |
| | | |
Penske Truck Leasing Co. L.P./PTL Finance Corp., | | |
| | | |
| | | |
PetSmart, Inc./PetSmart Finance Corp., 7.75%, | | | |
Pfizer Investment Enterprises Pte. Ltd., 5.30%, 05/19/2053 | | | |
| | | |
| | |
| | | |
| | | |
Plains All American Pipeline L.P./PAA Finance Corp., 3.80%, 09/15/2030 | | | |
PNC Financial Services Group, Inc. (The), 6.62%, | | | |
Prairie Acquiror L.P., 9.00%, | | | |
Provident Funding Associates L.P./PFG Finance Corp., | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8
Invesco Global Strategic Income Fund
| | |
United States–(continued) |
RHP Hotel Properties L.P./RHP Finance Corp., 6.50%, | | | |
| | |
| | | |
| | | |
Roller Bearing Co. of America, Inc., 4.38%, | | | |
Royal Caribbean Cruises Ltd., | | | |
Scientific Games Holdings L.P./Scientific Games US FinCo, Inc., 6.63%, | | | |
| | |
| | | |
| | | |
| | | |
Sensata Technologies, Inc., | | |
| | | |
| | | |
Service Properties Trust, | | |
| | | |
| | | |
| | | |
Sinclair Television Group, Inc., | | | |
| | |
| | | |
| | | |
Six Flags Entertainment Corp./Six Flags Theme Parks, Inc., 6.63%, | | | |
Sixth Street Lending Partners, | | | |
| | |
| | | |
| | | |
| | |
| | | |
| | | |
Specialty Building Products Holdings LLC/SBP Finance Corp., 7.75%, | | | |
| | |
| | | |
| | | |
State Street Corp., Series I, | | | |
Summit Midstream Holdings LLC, 8.63%, | | | |
| | | |
Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., 7.38%, | | | |
| | |
United States–(continued) |
Taylor Morrison Communities, Inc., 5.13%, | | | |
Tenet Healthcare Corp., 6.75%, 05/15/2031 | | | |
| | |
| | | |
| | | |
| | | |
| | | |
Transocean Titan Financing Ltd., 8.38%, | | | |
| | | |
U.S. International Development Finance Corp., Series 4, 3.13%, 04/15/2028 | | | |
United AirLines, Inc., 4.38%, | | | |
Uniti Group L.P./Uniti Group Finance, Inc./CSL Capital LLC, 10.50%, | | | |
Univision Communications, Inc., | | |
| | | |
| | | |
| | | |
Velocity Vehicle Group LLC, | | | |
Venture Global LNG, Inc., | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Viking Cruises Ltd., 9.13%, | | | |
| | | |
Vistra Operations Co. LLC, | | |
| | | |
| | | |
| | | |
Walgreens Boots Alliance, Inc., 3.80%, 11/18/2024 | | | |
Windstream Escrow LLC/ Windstream Escrow Finance Corp., 7.75%, | | | |
Windstream Services LLC/ Windstream Escrow Finance Corp., 8.25%, | | | |
Yum! Brands, Inc., 5.38%, | | | |
| | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9
Invesco Global Strategic Income Fund
| | |
|
National Bank of Uzbekistan, | | | |
Navoi Mining & Metallurgical Combinat, 6.70%, | | | |
| | | |
|
First Quantum Minerals Ltd., | | | |
Total U.S. Dollar Denominated Bonds & Notes (Cost $563,301,641) | |
| | |
Non-U.S. Dollar Denominated Bonds & Notes–26.14%(n) |
|
Treasury Corporation of Victoria, 5.50%, 11/17/2026 | | | |
|
| | |
| | | |
| | | |
| | | |
|
Brazil Notas do Tesouro Nacional, | | |
Series B, 6.00%, 05/15/2055 | | | |
Series F, 10.00%, 01/01/2027 | | | |
| | | |
|
Province of Ontario, 5.85%, 03/08/2033 | | | |
|
China Government Bond, 3.32%, 04/15/2052 | | | |
|
| | |
Series B, 7.50%, 08/26/2026 | | | |
Series B, 6.00%, 04/28/2028 | | | |
Series B, 7.75%, 09/18/2030 | | | |
Series B, 7.00%, 06/30/2032 | | | |
Series B, 9.25%, 05/28/2042 | | | |
| | | |
|
| | | |
|
| | |
| | | |
| | | |
| | |
|
| | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
Electricite de France S.A., | | | |
| | | |
|
Volkswagen International Finance N.V., 4.63%(g)(h)(j) | | | |
|
| | | |
Hellenic Republic Government Bond, 0.00%, 10/15/2042 | | | |
| | | |
|
| | |
| | | |
| | | |
| | | |
|
| | | |
UniCredit S.p.A., 5.38%(g)(h)(j) | | | |
| | | |
|
Ivory Coast Government International Bond, | | | |
|
Malaysia Government Bond, Series 115, 3.96%, 09/15/2025 | | | |
|
Mexican Bonos, Series M, 7.75%, 05/29/2031 | | | |
|
| | | |
|
Peru Government Bond, 6.15%, 08/12/2032 | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10
Invesco Global Strategic Income Fund
| | |
|
Romanian Government International Bond, | | | |
|
Republic of South Africa Government Bond, | | |
Series 2032, 8.25%, 03/31/2032 | | | |
Series 2040, 9.00%, 01/31/2040 | | | |
| | | |
|
| | | |
| | | |
| | | |
|
African Development Bank, | | | |
International Finance Corp., | | | |
| | | |
|
HSBC Holdings PLC, 8.20%, | | | |
Lloyds Banking Group PLC, | | | |
Nationwide Building Society, | | | |
| | | |
| | | |
| | | |
|
| | | |
MPT Operating Partnership L.P./MPT Finance Corp., 3.33%, 03/24/2025 | | | |
| | | |
|
Uruguay Government International Bond, 9.75%, 07/20/2033 | | | |
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $415,614,779) | |
|
Asset-Backed Securities–8.44% |
Angel Oak Mortgage Trust, Series 2024-8, Class A3, | | | |
Bear Stearns Adjustable Rate Mortgage Trust, Series 2006-1, Class A1, 0.65% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), | | | |
| | |
|
Benchmark Mortgage Trust, Series 2018-B1, Class XA, IO, 0.53%, | | | |
CD Mortgage Trust, Series 2017-CD6, Class XA, IO, 0.87%, | | | |
Citigroup Commercial Mortgage Trust, Series 2017-C4, Class XA, | | | |
Citigroup Mortgage Loan Trust, Inc., | | |
Series 2005-2, Class 1A3, | | | |
Series 2006-AR1, Class 1A1, 7.20% (1 yr. U.S. Treasury Yield Curve Rate + 2.40%), | | | |
| | |
Series 2014-UBS6, Class AM, 4.05%, 12/10/2047 | | | |
Series 2014-CR21, Class AM, 3.99%, 12/10/2047 | | | |
Countrywide Home Loans Mortgage Pass-Through Trust, | | |
Series 2005-17, Class 1A8, 5.50%, 09/25/2035 | | | |
Series 2005-J4, Class A7, 5.50%, 11/25/2035 | | | |
CWHEQ Revolving Home Equity Loan Trust, Series 2006-H, Class 2A1A, 4.33% (1 mo. Term SOFR + 0.26%), | | | |
| | |
Series 2017-K62, Class B, | | | |
Series 2016-K54, Class C, | | | |
Frontier Issuer LLC, Series 2023-1, Class A2, | | | |
GSR Mortgage Loan Trust, Series 2005-AR4, Class 6A1, 5.27%, | | | |
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-LC11, Class AS, 3.22%, 04/15/2046 | | | |
JP Morgan Mortgage Trust, Series 2007-A1, Class 5A1, 5.04%, | | | |
JPMBB Commercial Mortgage Securities Trust, Series 2014-C24, Class B, | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11
Invesco Global Strategic Income Fund
| | |
|
MASTR Asset Backed Securities Trust, Series 2006-WMC3, Class A3, 5.05% (1 mo. Term SOFR + 0.31%), | | | |
Morgan Stanley Capital I Trust, Series 2017-HR2, Class XA, IO, 0.85%, | | | |
Morgan Stanley Re-REMIC Trust, Series 2012-R3, Class 1B, 6.00%, | | | |
| | |
Series 2022-NQM7, Class A3, 5.70%, | | | |
Series 2022-NQM7, Class A2, 5.70%, | | | |
Series 2024-NQM12, Class A1, 5.48%, | | | |
Series 2024-NQM12, Class A2, 5.78%, | | | |
Series 2024-NQM12, Class A3, 5.83%, | | | |
Series 2024-NQM12, Class M1, 5.93%, | | | |
Rate Mortgage Trust, Series 2024-J3, Class A2, | | | |
Residential Accredit Loans, Inc. Trust, Series 2006- QS13, Class 1A8, 6.00%, 09/25/2036 | | | |
UBS Commercial Mortgage Trust, Series 2017-C5, Class XA, IO, 1.06%, | | | |
| | |
| | | |
Series 1995-3, Class 1, IO, | | | |
Verus Securitization Trust, Series 2022-7, Class A3, | | | |
WaMu Mortgage Pass-Through Ctfs. Trust, Series 2003- AR10, Class A7, 6.57%, | | | |
Wells Fargo Commercial Mortgage Trust, Series 2017-C42, Class XA, IO, 0.86%, | | | |
WFRBS Commercial Mortgage Trust, Series 2013-C14, Class AS, 3.49%, 06/15/2046 | | | |
| | |
|
| | |
Series 2007-1, Class F, 8.35% (SONIA + 3.37%), | | | |
Series 2007-1, Class E, 6.30% (SONIA + 1.32%), | | | |
Series 2006-2, Class F, 8.35% (SONIA + 3.37%), | | | |
| | |
Series E, 6.96% (SONIA + 2.00%), | | | |
Series F, 7.46% (SONIA + 2.50%), | | | |
| | |
Series 2006-2X, Class E1C, 8.35% (SONIA + 3.37%), | | | |
Series 2006-4X, Class E1C, 8.10% (SONIA + 3.12%), | | | |
Series 2006-2X, Class D1A, 4.28% (3 mo. EURIBOR + 0.80%), | | | |
Eurosail-UK NC PLC, Series 2007-1X, Class D1C, 5.99% (SONIA + 1.01%), | | | |
Eurosail-UK NP PLC, Series 2007-2X, Class D1A, 4.27% (3 mo. EURIBOR + 0.80%), | | | |
Great Hall Mortgages No. 1 PLC, Series 2007-2X, Class EB, 7.24% (3 mo. EURIBOR + 3.75%), | | | |
Ludgate Funding PLC, Series 2007-1, Class MA, 5.34% (SONIA + 0.36%), | | | |
Mortgage Funding PLC, Series 2008-1, Class B2, 8.30% (SONIA + 3.32%), | | | |
Towd Point Mortgage Funding 2024 - Granite 6 PLC, Series 2024-GR6X, Class F, 9.48% (SONIA + 4.50%), | | | |
Prosil Acquisition S.A., Series 2019-1, Class A, 5.64% (3 mo. EURIBOR + 2.00%), | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12
Invesco Global Strategic Income Fund
| | |
|
SC Germany S.A. Compartment Consumer, Series 2021-1, Class E, 6.06% (1 mo. EURIBOR + 2.80%), | | | |
Alhambra SME Funding DAC, Series 2019-1, Class D, 12.40% (1 mo. EURIBOR + 9.25%), | | | |
| | |
Series 2024-1A, Class B, 0.00% (SONIA + 2.95%), | | | |
Series 2024-1A, Class C, 0.00% (SONIA + 3.75%), | | | |
Series 2024-1A, Class A, 0.00% (SONIA + 1.90%), | | | |
Lusitano Mortgages No. 5 PLC, Series D, 4.14% (3 mo. EURIBOR + 0.96%), | | | |
Fideicomiso Dorrego Y Libertador, | | |
| | | |
| | | |
Fideicomiso Financiero Invernea Proteina 2, Serie II, 0.00%, | | | |
Ares XXXVII CLO Ltd., Series 2015-4A, Class DR, 11.07% (3 mo. Term SOFR + 6.41%), | | | |
Total Asset-Backed Securities (Cost $136,542,629) | |
| | |
Agency Credit Risk Transfer Notes–4.76% |
|
Fannie Mae Connecticut Avenue Securities, | | |
Series 2022-R04, Class 1M2, 7.96% (30 Day Average SOFR + 3.10%), | | | |
Series 2022-R08, Class 1M2, 8.46% (30 Day Average SOFR + 3.60%), | | | |
Series 2023-R02, Class 1M1, 7.16% (30 Day Average SOFR + 2.30%), | | | |
Series 2023-R03, Class 2M1, 7.36% (30 Day Average SOFR + 2.50%), | | | |
Series 2023-R04, Class 1M1, 7.16% (30 Day Average SOFR + 2.30%), | | | |
Series 2023-R06, Class 1M1, 6.56% (30 Day Average SOFR + 1.70%), | | | |
Series 2023-R06, Class 1M2, 7.56% (30 Day Average SOFR + 2.70%), | | | |
Series 2023-R06, Class 1B1, 8.76% (30 Day Average SOFR + 3.90%), | | | |
Series 2023-R08, Class 1M2, 7.36% (30 Day Average SOFR + 2.50%), | | | |
Series 2023-R08, Class 1M1, 6.36% (30 Day Average SOFR + 1.50%), | | | |
Series 2024-R03, Class 2M2, 6.81% (30 Day Average SOFR + 1.95%), | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13
Invesco Global Strategic Income Fund
| | |
United States–(continued) |
| | |
Series 2022-DNA2, Class M1B, STACR®, 7.26% (30 Day Average SOFR + | | | |
Series 2022-DNA3, Class M1B, STACR®, 7.76% (30 Day Average SOFR + | | | |
Series 2022-DNA3, Class M1A, STACR®, 6.86% (30 Day Average SOFR + | | | |
Series 2022-HQA2, Class M1, STACR®, 8.86% (30 Day Average SOFR + | | | |
Series 2022-HQA3, Class M1, STACR®, 8.41% (30 Day Average SOFR + | | | |
Series 2022-HQA3, Class M2, STACR®, 10.21% (30 Day Average SOFR + | | | |
Series 2023-DNA1, Class M1, STACR®, 6.96% (30 Day Average SOFR + | | | |
Series 2023-HQA1, Class M1, STACR®, 8.36% (30 Day Average SOFR + | | | |
Series 2023-HQA2, Class M1, STACR®, 6.86% (30 Day Average SOFR + | | | |
Series 2023-HQA2, Class M1, STACR®, 8.21% (30 Day Average SOFR + | | | |
Series 2023-HQA3, Class M2, STACR®, 8.21% (30 Day Average SOFR + | | | |
Series 2024-DNA1, Class M2, STACR®, 6.81% (30 Day Average SOFR + | | | |
Series 2024-HQA1, Class M2, STACR®, 6.86% (30 Day Average SOFR + | | | |
Series 2024-DNA2, Class M2, STACR®, 6.56% (30 Day Average SOFR + | | | |
Series 2024-HQA2, Class M2, STACR®, 6.66% (30 Day Average SOFR + | | | |
Total Agency Credit Risk Transfer Notes (Cost $71,536,334) | |
| | |
U.S. Treasury Securities–2.44% |
U.S. Treasury Bills–0.19% |
| | | |
U.S. Treasury Notes–2.25% |
| | | |
Total U.S. Treasury Securities (Cost $37,448,081) | |
| | |
Common Stocks & Other Equity Interests–1.91% |
|
Banco BBVA Argentina S.A. | | |
Banco Macro S.A., Class B | | |
Grupo Financiero Galicia S.A., Class B | | |
| | |
| | |
| | |
| | | |
|
| | |
Claire’s Holdings LLC, Class S | | |
| | |
McDermott International Ltd.(r) | | |
McDermott International Ltd., Series A, Wts., expiring | | |
McDermott International Ltd., Series B, Wts., expiring | | |
Sabine Oil & Gas Holdings, Inc.(m)(r) | | |
Windstream Services LLC, Wts.(r) | | |
| | | |
Total Common Stocks & Other Equity Interests (Cost $24,534,326) | |
| | |
Variable Rate Senior Loan Interests–0.47%(s)(t) |
|
Camelot US Acquisition LLC, Term Loan, 7.44% (1 mo. Term SOFR + 2.75%), 01/31/2031 | | | |
Carnival Corp., Term Loan B, 7.44% (1 mo. Term SOFR + 2.75%), 10/18/2028 | | | |
Claire’s Stores, Inc., Term Loan, 11.29% (1 mo. Term SOFR + 6.50%), 12/18/2026 | | | |
Clear Channel Outdoor Holdings, Inc., Term Loan B, 8.80% (1 mo. Term SOFR + 4.00%), 08/23/2028 | | | |
Concentra Health Services, Inc., Term Loan B, 6.94% (1 mo. Term SOFR + | | | |
DTZ U.S. Borrower LLC, Term Loan, 7.94%, 01/31/2030 | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14
Invesco Global Strategic Income Fund
| | |
United States–(continued) |
Dun & Bradstreet Corp. (The), Incremental Term Loan B-2, 7.47% (1 mo. Term SOFR + 2.75%), 01/18/2029 | | | |
Greystar Real Estate Partners LLC, Term Loan B, 7.49% (1 mo. Term SOFR + 2.75%), 08/21/2030 | | | |
IRB Holding Corp., Term Loan B, 7.54% (1 mo. Term SOFR + 2.85%), 12/15/2027 | | | |
Mativ Holdings, Inc., Term Loan B, 8.55% (1 mo. Term SOFR + 3.86%), 04/20/2028 | | | |
Mozart Debt Merger Sub, Inc. (Medline Industries), Term Loan B, 7.44% (1 mo. Term SOFR + 2.75%), 10/23/2028 | | | |
Prairie ECI Acquiror L.P., Term Loan B-2, 9.44% (1 mo. Term SOFR + 4.75%), 08/01/2029 | | | |
Scientific Games Holdings L.P., Term Loan B, 7.59% (3 mo. Term SOFR + 3.00%), 04/04/2029 | | | |
Star Parent, Inc., Term Loan, 8.35% (3 mo. Term SOFR + 3.75%), 09/27/2030 | | | |
Total Variable Rate Senior Loan Interests (Cost $7,197,525) | |
| | |
|
|
Claire’s Holdings LLC, Series A, Pfd.
(Cost $97,198) | | |
| | |
|
Invesco Government & Agency Portfolio, Institutional Class, | | |
Invesco Treasury Portfolio, Institutional Class, 4.73%(u)(v) | | |
Total Money Market Funds (Cost $101,326,308) | |
|
|
| |
TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-140.05% (Cost $2,193,439,789) | | | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, | | |
Invesco Private Prime Fund, | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $74,062,179) | |
TOTAL INVESTMENTS IN SECURITIES—144.87% (Cost $2,267,501,968) | |
OTHER ASSETS LESS LIABILITIES–(44.87)% | |
| |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15
Invesco Global Strategic Income Fund
Investment Abbreviations:
| – American Depositary Receipt |
| – Adjustable Rate Mortgage |
| |
| |
| |
| |
| – Collateralized Loan Obligation |
| |
| |
| |
| |
| |
| – Euro Interbank Offered Rate |
| |
| |
| |
| |
| |
| |
| |
| – Real Estate Mortgage Investment Conduits |
| – Secured Overnight Financing Rate |
| – Sterling Overnight Index Average |
| – Structured Agency Credit Risk |
| – Separately Traded Registered Interest and Principal Security |
| |
| |
| |
| |
| |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16
Invesco Global Strategic Income Fund
Notes to Consolidated Schedule of Investments:
| Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on October 31, 2024. |
| Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. |
| Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2024. |
| All or a portion of the value was designated as collateral to cover margin requirements for swap agreements. See Note 1Q. |
| Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1R. |
| Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $592,044,785, which represented 38.50% of the Fund’s Net Assets. |
| Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Perpetual bond with no specified maturity date. |
| Zero coupon bond issued at a discount. |
| Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The value of this security at October 31, 2024 represented less than 1% of the Fund’s Net Assets. |
| Security valued using significant unobservable inputs (Level 3). See Note 3. |
| Foreign denominated security. Principal amount is denominated in the currency indicated. |
| Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on October 31, 2024. |
| All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1N. |
| Non-income producing security. |
| Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years. |
| Variable rate senior loan interests are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended (the “1933 Act”) and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the Secured Overnight Financing Rate ("SOFR"), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Invesco Liquid Assets Portfolio, Institutional Class | | | | | | | |
Invesco Treasury Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The table below details options purchased. |
| 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 1K. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17
Invesco Global Strategic Income Fund
Open Over-The-Counter Foreign Currency Options Purchased(a) |
| | | | | | |
|
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
Subtotal — Foreign Currency Call Options Purchased | |
|
| | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Standard Chartered Bank PLC | | | | | | |
Subtotal — Foreign Currency Put Options Purchased | |
Total Foreign Currency Options Purchased | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $37,001,588. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18
Invesco Global Strategic Income Fund
Open Over-The-Counter Interest Rate Swaptions Purchased(a) |
| | | | | | | | | |
|
10 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
15 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
30 Year Interest Rate Swap | | | | | | | | | | |
30 Year Interest Rate Swap | | | | | | | | | | |
Total Interest Rate Swaptions Purchased | | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $37,001,588. |
Open Over-The-Counter Credit Default Swaptions Written(a) |
| | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Markit CDX North America High Yield Index, Series 42, Version 1 | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | | | Markit CDX North America High Yield Index, Series 42, Version 1 | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | | | Markit CDX North America High Yield Index, Series 43, Version 1 | | | | | | | | | |
Total Credit Default Swaptions Written | | | | | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $37,001,588. |
| Implied credit spreads represent the current level, as of October 31, 2024, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Open Over-The-Counter Foreign Currency Options Written(a) |
| | | | | | | | |
|
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Standard Chartered Bank PLC | | | | | | | | |
Subtotal — Foreign Currency Call Options Written | | | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
19
Invesco Global Strategic Income Fund
Open Over-The-Counter Foreign Currency Options Written(a)—(continued) |
| | | | | | | | |
|
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
Subtotal — Foreign Currency Put Options Written | | | | | | | |
Total Foreign Currency Options Written | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $37,001,588. |
Open Over-The-Counter Interest Rate Swaptions Written(a) |
| | | | | | | | | | | |
|
30 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
10 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
30 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
5 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
30 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
30 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
Subtotal—Interest Rate Call Swaptions Written | | | | | | | | |
|
2 Year Interest Rate Swap | | | | | | | | | | | | |
10 Year Interest Rate Swap | | | | | | | | | | | | |
5 Year Interest Rate Swap | | | | | | | | | | | | |
2 Year Interest Rate Swap | | | | | | | | | | | | |
2 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
30 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
10 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
30 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
2 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
20
Invesco Global Strategic Income Fund
Open Over-The-Counter Interest Rate Swaptions Written(a)—(continued) |
| | | | | | | | | | | |
30 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
5 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
2 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
Subtotal—Interest Rate Put Swaptions Written | | | | | | | | |
Total Interest Rate Swaptions Written | | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $37,001,588. |
|
| | | | | Unrealized Appreciation (Depreciation) |
|
| | | | | |
U.S. Treasury 2 Year Notes | | | | | |
U.S. Treasury 10 Year Notes | | | | | |
Subtotal—Long Futures Contracts | | |
| | | | | |
|
U.S. Treasury 5 Year Notes | | | | | |
U.S. Treasury 10 Year Ultra Notes | | | | | |
| | | | | |
U.S. Treasury Ultra Bonds | | | | | |
Subtotal—Short Futures Contracts | | |
| | |
Open Forward Foreign Currency Contracts |
| | | Unrealized
Appreciation
(Depreciation) |
| |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
21
Invesco Global Strategic Income Fund
Open Forward Foreign Currency Contracts—(continued) |
| | | Unrealized Appreciation (Depreciation) |
| |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| | | | | | |
| |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
22
Invesco Global Strategic Income Fund
Open Forward Foreign Currency Contracts—(continued) |
| | | Unrealized Appreciation (Depreciation) |
| |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| | | | | | |
| | | | | | |
| |
Total Forward Foreign Currency Contracts | |
Open Centrally Cleared Credit Default Swap Agreements |
| | | | | | | Upfront
Payments Paid
(Received) | | Unrealized
Appreciation
(Depreciation) |
|
Markit iTraxx Europe Crossover Index, Series 42, Version 1 | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
23
Invesco Global Strategic Income Fund
Open Centrally Cleared Credit Default Swap Agreements—(continued) |
| | | | | | | Upfront Payments Paid (Received) | | Unrealized Appreciation (Depreciation) |
|
Brazil Government International Bonds | | | | | | | | | | |
Markit CDX Emerging Markets Index, Series 42, Version 1 | | | | | | | | | | |
Columbia Government International Bonds | | | | | | | | | | |
| | | | | | | | | | |
South Africa Government International Bonds | | | | | | | | | | |
| | | | | | | | |
Total Centrally Cleared Credit Default Swap Agreements | | | | | | |
| Implied credit spreads represent the current level, as of October 31, 2024, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Open Centrally Cleared Interest Rate Swap Agreements |
| | | | | | | Upfront
Payments
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) |
|
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
24
Invesco Global Strategic Income Fund
Open Centrally Cleared Interest Rate Swap Agreements—(continued) |
| | | | | | | Upfront Payments Paid (Received) | | Unrealized Appreciation (Depreciation) |
|
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | |
Total Centrally Cleared Interest Rate Swap Agreements | | | | | | |
Open Over-The-Counter Credit Default Swap Agreements(a) |
| | | | | | | | Upfront
Payments Paid
(Received) | | Unrealized
Appreciation
(Depreciation) |
|
| Assicurazioni Generali S.p.A. | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit CDX North America Investment Grade Index, Series 33, Version 1 | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit iTraxx Europe CrossoverIndex, Series 40, Version 2 | | | | | | | | | | |
| | | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
25
Invesco Global Strategic Income Fund
Open Over-The-Counter Credit Default Swap Agreements(a)—(continued) |
| | | | | | | | Upfront Payments Paid (Received) | | Unrealized Appreciation (Depreciation) |
|
| Assicurazioni Generali S.p.A. | | | | | | | | | | |
Goldman Sachs International | Markit iTraxx Europe Crossover Index, Series 32, Version 6 | | | | | | | | | | |
Goldman Sachs International | Markit CDX North America High Yield Index, Series 37, Version 1 | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit CDX North America High Yield Index, Series 39, Version 1 | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit iTraxx Europe CrossoverIndex, Series 42, Version 1 | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit iTraxx Europe CrossoverIndex, Series 42, Version 1 | | | | | | | | | | |
| | | | | | | |
Total Over-The-Counter Credit Default Swap Agreements | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $37,001,588. |
| Implied credit spreads represent the current level, as of October 31, 2024, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
26
Invesco Global Strategic Income Fund
|
| |
| |
| |
| —Brazil Ceptip DI Interbank Deposit Rate |
| |
| |
| |
| |
| |
| —Colombia IBR Overnight Nominal Interbank Reference Rate |
| |
| |
| |
| —Euro Interbank Offered Rate |
| —Financial Benchmarks India Private Ltd. |
| |
| |
| |
| |
| —Johannesburg Interbank Average Rate |
| |
| |
| —Mumbai Interbank Offered Rate |
| |
| |
| |
| |
| |
| —Prague Interbank Offerred Rate |
| |
| —Secured Overnight Financing Rate |
| —Sterling Overnight Index Average |
| —Singapore Overnight Rate Average |
| |
| —Interbank Equilibrium Interest Rate |
| —Tokyo Overnight Average Rate |
| |
| |
| |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
27
Invesco Global Strategic Income Fund
Consolidated Statement of Assets and Liabilities
| |
Investments in unaffiliated securities, at value
(Cost $2,092,113,481)* | |
Investments in affiliated money market funds, at value (Cost $175,388,487) | |
| |
| |
Unrealized appreciation on swap agreements — OTC | |
Premiums paid on swap agreements — OTC | |
Unrealized appreciation on forward foreign currency contracts outstanding | |
| |
Cash collateral — OTC Derivatives | |
Cash collateral — TBA commitments | |
| |
Foreign currencies, at value (Cost $18,362,026) | |
| |
| |
| |
| |
| |
| |
Investment for trustee deferred compensation and retirement plans | |
| |
| |
| |
| |
Options written, at value (premiums received $53,883,747) | |
Variation margin payable — futures contracts | |
Variation margin payable — centrally cleared swap agreements | |
Unrealized depreciation on forward foreign currency contracts outstanding | |
| |
Unrealized depreciation on swap agreements—OTC | |
| |
| |
| |
| |
| |
| |
Collateral upon return of securities loaned | |
Accrued fees to affiliates | |
Accrued trustees’ and officers’ fees and benefits | |
Accrued other operating expenses | |
Trustee deferred compensation and retirement plans | |
| |
Net assets applicable to shares outstanding | |
| |
Shares of beneficial interest | |
Distributable earnings (loss) | |
| |
|
| |
| |
| |
| |
| |
| |
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |
| |
| |
| |
| |
| |
| |
Net asset value per share | |
Maximum offering price per share
(Net asset value of $3.07 ÷ 95.75%) | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| At October 31, 2024, securities with an aggregate value of $71,132,937 were on loan to brokers. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
28
Invesco Global Strategic Income Fund
Consolidated Statement of Operations
For the year ended October 31, 2024
| |
Interest (net of foreign withholding taxes of $659,181) | |
Dividends (net of foreign withholding taxes of $84,117) | |
Dividends from affiliates (includes net securities lending income of $122,800) | |
| |
| |
| |
Administrative services fees | |
| |
| |
| |
| |
| |
Transfer agent fees — A, C, R and Y | |
| |
| |
Trustees’ and officers’ fees and benefits | |
Registration and filing fees | |
| |
Professional services fees | |
| |
| |
Less: Fees waived and/or expense offset arrangement(s) | |
| |
| |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Unaffiliated investment securities (net of foreign taxes of $96,465) | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
| |
| |
| |
Change in net unrealized appreciation (depreciation) of: | |
Unaffiliated investment securities (net of foreign taxes of $33,102) | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
| |
| |
| |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
29
Invesco Global Strategic Income Fund
Consolidated Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | |
| | |
| | |
| | |
Change in net unrealized appreciation | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders from distributable earnings: | | |
| | |
| | |
| | |
| | |
| | |
| | |
Total distributions from distributable earnings | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Net increase (decrease) in net assets resulting from share transactions | | |
Net increase (decrease) in net assets | | |
| | |
| | |
| | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
30
Invesco Global Strategic Income Fund
Consolidated Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Net asset
value,
beginning
of period | | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | | | Net asset
value, end
of period | | 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 | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Calculated using average shares outstanding. |
| 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. |
| Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for the years ended October 31, 2024, 2023, 2022, 2021 and 2020, respectively. |
| Includes Interest, facilities and maintenance fees of 0.08% for the year ended October 31, 2022. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
31
Invesco Global Strategic Income Fund
Notes to Consolidated Financial Statements
NOTE 1—Significant Accounting Policies
Invesco Global Strategic Income Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Global Strategic Income Fund (Cayman) Ltd. (the “Subsidiary”), a wholly-owned and controlled subsidiary by the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to Regulation S securities primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in Regulation S securities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A.
Security Valuations – Securities, including restricted securities, are valued according to the following policy.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
32
Invesco Global Strategic Income Fund
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.
Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Distributions – Distributions from net investment income, if any, are declared 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 consolidated financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.
Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation.
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H.
Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.
Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income
33
Invesco Global Strategic Income Fund
accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
J.
Treasury Inflation-Protected Securities — The Fund may invest in Treasury Inflation-Protected Securities (“TIPS”). TIPS are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The principal value of TIPS will be adjusted upward or downward, and any increase or decrease in the principal amount of TIPS will be included as interest income in the Consolidated Statement of Operations, even though investors do not receive their principal until maturity.
K.
Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, there were no securities lending transactions with the Adviser. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations.
L.
Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
M.
Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
N.
Futures Contracts — The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the
34
Invesco Global Strategic Income Fund
value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.
O.
Call Options Purchased and Written – The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Consolidated Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Consolidated Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
P.
Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Consolidated Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
Q.
Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and
35
Invesco Global Strategic Income Fund
thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer "par value" or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of October 31, 2024, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
R.
Dollar Rolls and Forward Commitment Transactions - The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.
The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate.
Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement.
S.
Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
T.
Collateral —To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions.
U.
Other Risks - Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities tend to be very volatile.
Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
36
Invesco Global Strategic Income Fund
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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
By investing in the Subsidiary, the Fund is indirectly exposed to risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act, and, except as otherwise noted in the Fund’s prospectus, is not subject to the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or the Subsidiary to operate as intended, and could negatively affect the Fund and its shareholders.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the risk that a borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund’s income. Mortgage- and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities at the time or price it desires.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.60%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a Sub-Advisory Agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.50%, 2.25%, 1.75%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of the Fund directly, but are fees and expenses, including management fees, of the investment companies in which the Fund invests. As a result, the total annual fund operating expenses after fee waiver and/or expense reimbursement may exceed the boundary limits above. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $58,935.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services.
37
Invesco Global Strategic Income Fund
IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $47,559 in front-end sales commissions from the sale of Class A shares and $630 and $2,939 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| | | | |
Investments in Securities | | | | |
U.S. Government Sponsored Agency Mortgage-Backed Securities | | | | |
U.S. Dollar Denominated Bonds & Notes | | | | |
Non-U.S. Dollar Denominated Bonds & Notes | | | | |
| | | | |
Agency Credit Risk Transfer Notes | | | | |
| | | | |
Common Stocks & Other Equity Interests | | | | |
Variable Rate Senior Loan Interests | | | | |
| | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
Other Investments - Assets* | | | | |
| | | | |
Forward Foreign Currency Contracts | | | | |
| | | | |
| | | | |
38
Invesco Global Strategic Income Fund
| | | | |
Other Investments - Liabilities* | | | | |
| | | | |
Forward Foreign Currency Contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Options written are shown at value. |
NOTE 4—Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| |
| | | | |
Unrealized appreciation on futures contracts —Exchange-Traded(a) | | | | |
Unrealized appreciation on swap agreements — Centrally Cleared(a) | | | | |
Unrealized appreciation on forward foreign currency contracts outstanding | | | | |
Unrealized appreciation on swap agreements — OTC | | | | |
Options purchased, at value — OTC(b) | | | | |
| | | | |
Derivatives not subject to master netting agreements | | | | |
Total Derivative Assets subject to master netting agreements | | | | |
| |
| | | | |
Unrealized depreciation on futures contracts —Exchange-Traded(a) | | | | |
Unrealized depreciation on swap agreements — Centrally Cleared(a) | | | | |
Unrealized depreciation on forward foreign currency contracts outstanding | | | | |
Unrealized depreciation on swap agreements — OTC | | | | |
Options written, at value — OTC | | | | |
Total Derivative Liabilities | | | | |
Derivatives not subject to master netting agreements | | | | |
Total Derivative Liabilities subject to master netting agreements | | | | |
| The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
| Options purchased, at value as reported in the Consolidated Schedule of Investments. |
39
Invesco Global Strategic Income Fund
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| Financial Derivative Assets | Financial Derivative Liabilities | | Collateral
(Received)/Pledged | |
| Forward
Foreign
Currency
Contracts | | | | Forward
Foreign
Currency
Contracts | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Goldman Sachs International | | | | | | | | | | | | |
| | | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | | | | | | | | | | | | |
Merrill Lynch International | | | | | | | | | | | | |
Morgan Stanley and Co. International PLC | | | | | | | | | | | | |
| | | | | | | | | | | | |
Standard Chartered Bank PLC | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on
Consolidated Statement of Operations |
| | | | |
| | | | |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Change in Net Unrealized Appreciation (Depreciation): | | | | |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) on investment securities. |
The table below summarizes the average notional value of derivatives held during the period.
| Forward
Foreign Currency
Contracts | | | Foreign
Currency
Options
Purchased | | Foreign
Currency
Options
Written | |
| | | | | | | |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $129,346.
40
Invesco Global Strategic Income Fund
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | |
| | |
| | |
| | |
| Includes short-term capital gain distributions, if any. |
Tax Components of Net Assets at Period-End: |
| |
Net unrealized appreciation (depreciation) — investments | |
Net unrealized appreciation — foreign currencies | |
Temporary book/tax differences | |
Capital loss carryforward | |
Shares of beneficial interest | |
| |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to partnerships and straddles.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
Capital Loss Carryforward* |
| | | |
Not subject to expiration | | | |
*
Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $976,741,953 and $1,055,910,504, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
Aggregate unrealized appreciation of investments | |
Aggregate unrealized (depreciation) of investments | |
Net unrealized appreciation (depreciation) of investments | |
Cost of investments for tax purposes is $2,242,294,746.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions, return of capital distributions and derivative instruments, on October 31, 2024, undistributed net investment income was increased by $17,681,819, undistributed net realized gain (loss) was increased by $11,679,367 and shares of beneficial interest was decreased by $29,361,186. This reclassification had no effect on the net assets of the Fund.
41
Invesco Global Strategic Income Fund
NOTE 11—Share Information
| Summary of Share Activity |
| | Year ended
October 31, 2023 |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Issued as reinvestment of dividends: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Automatic conversion of Class C shares to Class A shares: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in share activity | | | | |
| There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 17% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
42
Invesco Global Strategic Income Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Global Strategic Income Fund
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of Invesco Global Strategic Income Fund and its subsidiary (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related consolidated statement of operations for the year ended October 31, 2024, the consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the consolidated financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent, agent banks, portfolio company investees and brokers; when replies were not received from agent banks, portfolio company investees or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
43
Invesco Global Strategic Income Fund
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Global Strategic Income Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis, and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Bloomberg Global Aggregate Index (Index). The Board noted that performance of Class A shares of the Fund was in the first quintile of its performance universe for the one and five year periods and the second quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was above the performance of the Index for the one, three and five year periods. The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its
44
Invesco Global Strategic Income Fund
subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and above, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual management fees, actual management fees and total expense ratio were in the fourth, fourth and fifth quintile, respectively, of its expense group and discussed with management reasons for such relative actual and contractual management fees and total expenses. As previously noted, the independent Trustees reviewed and considered additional information in response to follow-up requests, including with respect the Fund’s total expenses relative to peers. The independent Trustees met and discussed those responses with legal counsel to the independent Trustees and the Senior Officer, and subsequently with representatives of management.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board
acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the
Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the
45
Invesco Global Strategic Income Fund
federal securities laws and consistent with best execution obligations.
46
Invesco Global Strategic Income Fund
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
Federal and State Income Tax | |
Qualified Dividend Income* | |
Corporate Dividends Received Deduction* | |
U.S. Treasury Obligations* | |
Qualified Business Income* | |
Business Interest Income* | |
*
The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
47
Invesco Global Strategic Income Fund
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
48
Invesco Global Strategic Income Fund
SEC file number(s): 811-05426 and 033-19338
Invesco Distributors, Inc.
O-GLSI-NCSR
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Greater China Fund
Nasdaq:
A: AACFX ■ C: CACFX ■ R: IGCRX ■ Y: AMCYX ■ R5: IACFX ■ R6: CACSX
Schedule of Investments(a)
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–95.01%(b) |
| Advertising–0.48% |
| Focus Media Information Technology Co. Ltd., A Shares | 259,300 | $262,849 |
| Apparel, Accessories & Luxury Goods–0.44% |
| ANTA Sports Products Ltd. | 17,600 | 187,848 |
| Shenzhou International Group Holdings Ltd. | 6,900 | 53,282 |
| | | | 241,130 |
| Automobile Manufacturers–1.09% |
| BYD Co. Ltd., A Shares | 5,600 | 230,746 |
| BYD Co. Ltd., H Shares | 5,500 | 198,652 |
| XPeng, Inc.(c) | 30,300 | 171,203 |
| | | | 600,601 |
| Automotive Parts & Equipment–1.08% |
| Fuyao Glass Industry Group Co. Ltd., A Shares | 74,300 | 594,505 |
| Biotechnology–1.03% |
| Innovent Biologics, Inc.(c)(d) | 109,500 | 476,016 |
| Keymed Biosciences, Inc.(c)(d) | 17,500 | 93,309 |
| | | | 569,325 |
| Brewers–0.42% |
| Tsingtao Brewery Co. Ltd., H Shares | 36,000 | 231,807 |
| Broadline Retail–6.59% |
| Alibaba Group Holding Ltd. | 212,800 | 2,603,035 |
| JD.com, Inc., A Shares | 29,750 | 603,307 |
| PDD Holdings, Inc., ADR(c) | 3,534 | 426,165 |
| | | | 3,632,507 |
| Coal & Consumable Fuels–1.40% |
| China Shenhua Energy Co. Ltd., A Shares | 67,800 | 381,612 |
| Shaanxi Coal Industry Co. Ltd., A Shares | 112,700 | 391,084 |
| | | | 772,696 |
Construction Machinery & Heavy Transportation Equipment–
0.35% |
| Weichai Power Co. Ltd., H Shares | 127,000 | 191,905 |
| Copper–0.82% |
| Tongling Nonferrous Metals Group Co. Ltd., A Shares | 945,200 | 449,845 |
| Distillers & Vintners–2.61% |
| Kweichow Moutai Co. Ltd., A Shares | 5,100 | 1,095,378 |
| Wuliangye Yibin Co. Ltd., A Shares | 16,500 | 340,681 |
| | | | 1,436,059 |
| Diversified Banks–6.12% |
| Bank of China Ltd., H Shares | 2,451,000 | 1,163,317 |
| China Construction Bank Corp., H Shares | 2,062,000 | 1,600,600 |
| | Shares | Value |
| Diversified Banks–(continued) |
| China Merchants Bank Co. Ltd., H Shares | 124,000 | $606,797 |
| | | | 3,370,714 |
| Diversified Metals & Mining–1.64% |
| CMOC Group Ltd., A Shares | 852,300 | 904,747 |
| Education Services–1.38% |
| New Oriental Education & Technology Group, Inc. | 121,800 | 762,231 |
| Electrical Components & Equipment–4.10% |
| Contemporary Amperex Technology Co. Ltd., A Shares | 7,100 | 246,419 |
| Sieyuan Electric Co. Ltd., A Shares | 176,800 | 1,898,703 |
| Sungrow Power Supply Co. Ltd., A Shares | 9,000 | 114,710 |
| | | | 2,259,832 |
| Electronic Components–4.84% |
| Luxshare Precision Industry Co. Ltd., A Shares | 352,564 | 2,077,205 |
| Zhejiang Crystal-Optech Co. Ltd., A Shares | 183,600 | 588,805 |
| | | | 2,666,010 |
| Electronic Manufacturing Services–1.68% |
| Foxconn Industrial Internet Co. Ltd., A Shares | 276,173 | 926,255 |
| Footwear–2.49% |
| Huali Industrial Group Co. Ltd., A Shares | 112,800 | 1,059,582 |
| Stella International Holdings Ltd. | 167,000 | 311,743 |
| | | | 1,371,325 |
| Gas Utilities–2.34% |
| China Resources Gas Group Ltd. | 51,600 | 198,950 |
| ENN Energy Holdings Ltd. | 26,400 | 185,996 |
| Enn Natural Gas Co. Ltd., A Shares | 350,900 | 905,153 |
| | | | 1,290,099 |
| Gold–6.82% |
| Chifeng Jilong Gold Mining Co. Ltd., A Shares | 349,200 | 924,236 |
| Zijin Mining Group Co. Ltd., A Shares | 796,400 | 1,868,090 |
| Zijin Mining Group Co. Ltd., H Shares | 454,000 | 967,053 |
| | | | 3,759,379 |
| Health Care Supplies–0.15% |
| Shandong Weigao Group Medical Polymer Co. Ltd., H Shares | 128,400 | 79,901 |
| Heavy Electrical Equipment–2.73% |
| NARI Technology Co. Ltd., A Shares | 411,100 | 1,502,148 |
| Hotels, Resorts & Cruise Lines–0.74% |
| Trip.com Group Ltd.(c) | 6,300 | 405,433 |
| Household Appliances–2.00% |
| Haier Smart Home Co. Ltd., A Shares | 268,207 | 1,102,241 |
| Industrial Machinery & Supplies & Components–1.75% |
| Haitian International Holdings Ltd. | 190,000 | 525,536 |
| Pengxin International Mining Co. Ltd., A Shares | 60,300 | 438,649 |
| | | | 964,185 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Greater China Fund |
| | Shares | Value |
| Integrated Oil & Gas–0.71% |
| PetroChina Co. Ltd., H Shares | 524,000 | $393,479 |
| Interactive Home Entertainment–2.19% |
| NetEase, Inc. | 74,800 | 1,203,442 |
| Interactive Media & Services–16.29% |
| Bilibili, Inc., ADR(c) | 7,635 | 168,886 |
| Bilibili, Inc., Z Shares(c) | 38,600 | 852,830 |
| Kanzhun Ltd., ADR | 6,553 | 95,346 |
| Kuaishou Technology(c)(d) | 41,200 | 242,792 |
| Tencent Holdings Ltd. | 144,500 | 7,534,532 |
| Weibo Corp., ADR | 8,946 | 80,961 |
| | | | 8,975,347 |
| Investment Banking & Brokerage–0.77% |
| Futu Holdings Ltd., ADR (Hong Kong)(c)(e) | 4,450 | 422,705 |
| Life & Health Insurance–1.91% |
| China Life Insurance Co. Ltd., H Shares | 444,000 | 941,165 |
| Ping An Insurance (Group) Co. of China Ltd., H Shares | 18,000 | 111,524 |
| | | | 1,052,689 |
| Marine Transportation–1.45% |
| SITC International Holdings Co. Ltd. | 282,000 | 797,019 |
| Movies & Entertainment–1.91% |
| Tencent Music Entertainment Group, ADR | 94,581 | 1,052,686 |
| Oil & Gas Drilling–0.44% |
| China Oilfield Services Ltd., H Shares | 256,000 | 239,531 |
| Packaged Foods & Meats–0.52% |
| China Mengniu Dairy Co. Ltd. | 129,000 | 288,890 |
| Paper Products–0.17% |
| Lee & Man Paper Manufacturing Ltd. | 296,000 | 91,320 |
| Pharmaceuticals–0.51% |
| Hansoh Pharmaceutical Group Co. Ltd.(d) | 26,000 | 60,620 |
| Jiangsu Hengrui Pharmaceuticals Co. Ltd., A Shares | 33,900 | 222,382 |
| | | | 283,002 |
| Property & Casualty Insurance–1.11% |
| PICC Property & Casualty Co. Ltd., H Shares | 402,000 | 609,822 |
| Real Estate Development–0.63% |
| Longfor Group Holdings Ltd.(d) | 215,000 | 348,301 |
| | Shares | Value |
| Real Estate Services–0.77% |
| KE Holdings, Inc., A shares | 57,700 | $424,272 |
| Renewable Electricity–4.63% |
| China Yangtze Power Co. Ltd., A Shares | 509,824 | 1,976,506 |
| Sichuan Chuantou Energy Co. Ltd., A Shares | 244,519 | 575,368 |
| | | | 2,551,874 |
| Restaurants–3.42% |
| Meituan, B Shares(c)(d) | 75,520 | 1,784,565 |
| Yum China Holdings, Inc. | 2,200 | 98,858 |
| | | | 1,883,423 |
| Specialty Chemicals–0.77% |
| Wanhua Chemical Group Co. Ltd., A Shares | 40,200 | 425,588 |
| Technology Hardware, Storage & Peripherals–1.72% |
| Lenovo Group Ltd. | 356,000 | 469,434 |
| Xiaomi Corp., B Shares(c)(d) | 139,400 | 478,128 |
| | | | 947,562 |
| Total Common Stocks & Other Equity Interests (Cost $42,801,667) | 52,338,681 |
|
| Money Market Funds–4.72% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(f)(g) | 910,580 | 910,580 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(f)(g) | 1,691,048 | 1,691,048 |
| Total Money Market Funds (Cost $2,601,628) | 2,601,628 |
| TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.73% (Cost $45,403,295) | | | 54,940,309 |
| Investments Purchased with Cash Collateral from Securities on Loan–0.78% |
| Money Market Funds–0.78% |
| Invesco Private Government Fund, 4.84%(f)(g)(h) | 119,217 | 119,217 |
| Invesco Private Prime Fund, 4.99%(f)(g)(h) | 310,908 | 311,001 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $430,224) | 430,218 |
| TOTAL INVESTMENTS IN SECURITIES–100.51% (Cost $45,833,519) | 55,370,527 |
| OTHER ASSETS LESS LIABILITIES–(0.51)% | (280,055) |
| NET ASSETS–100.00% | $55,090,472 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Greater China Fund |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Country of issuer and/or credit risk exposure listed in Common Stocks & Other Equity Interests has been determined to be China unless otherwise noted. |
| (c) | Non-income producing security. |
| (d) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $3,483,731, which represented 6.32% of the Fund’s Net Assets. |
| (e) | All or a portion of this security was out on loan at October 31, 2024. |
| (f) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $145,289 | $9,827,335 | $(9,062,044) | $- | $- | $910,580 | $21,100 |
| Invesco Liquid Assets Portfolio, Institutional Class | 103,766 | 4,767,570 | (4,871,333) | (9) | 6 | - | 8,881 |
| Invesco Treasury Portfolio, Institutional Class | 166,045 | 13,494,333 | (11,969,330) | - | - | 1,691,048 | 30,381 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 208,790 | 5,968,473 | (6,058,046) | - | - | 119,217 | 11,704* |
| Invesco Private Prime Fund | 537,124 | 14,897,928 | (15,124,638) | (12) | 599 | 311,001 | 31,395* |
| Total | $1,161,014 | $48,955,639 | $(47,085,391) | $(21) | $605 | $3,031,846 | $103,461 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (g) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (h) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Greater China Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $42,801,667)* | $52,338,681 |
| Investments in affiliated money market funds, at value (Cost $3,031,852) | 3,031,846 |
| Foreign currencies, at value (Cost $38,891) | 38,893 |
| Receivable for: | |
| Investments sold | 218,933 |
| Fund shares sold | 15,063 |
| Dividends | 4,849 |
| Investment for trustee deferred compensation and retirement plans | 58,122 |
| Other assets | 150,978 |
| Total assets | 55,857,365 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 61,744 |
| Collateral upon return of securities loaned | 430,224 |
| Accrued fees to affiliates | 36,099 |
| Accrued trustees’ and officers’ fees and benefits | 1,202 |
| Accrued other operating expenses | 138,946 |
| Trustee deferred compensation and retirement plans | 98,678 |
| Total liabilities | 766,893 |
| Net assets applicable to shares outstanding | $55,090,472 |
| Net assets consist of: | |
| Shares of beneficial interest | $82,404,096 |
| Distributable earnings (loss) | (27,313,624) |
| | $55,090,472 |
| Net Assets: |
| Class A | $48,499,259 |
| Class C | $1,850,788 |
| Class R | $705,895 |
| Class Y | $3,756,108 |
| Class R6 | $278,422 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 2,715,595 |
| Class C | 108,807 |
| Class R | 39,624 |
| Class Y | 209,932 |
| Class R6 | 15,539 |
| Class A: | |
| Net asset value per share | $17.86 |
Maximum offering price per share
(Net asset value of $17.86 ÷ 94.50%) | $18.90 |
| Class C: | |
| Net asset value and offering price per share | $17.01 |
| Class R: | |
| Net asset value and offering price per share | $17.81 |
| Class Y: | |
| Net asset value and offering price per share | $17.89 |
| Class R6: | |
| Net asset value and offering price per share | $17.92 |
| * | At October 31, 2024, security with a value of $415,866 was on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Greater China Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Dividends (net of foreign withholding taxes of $118,792) | $1,492,185 |
| Dividends from affiliated money market funds (includes net securities lending income of $1,156) | 61,518 |
| Total investment income | 1,553,703 |
| Expenses: | |
| Advisory fees | 497,666 |
| Administrative services fees | 8,201 |
| Custodian fees | 8,198 |
| Distribution fees: | |
| Class A | 126,168 |
| Class C | 18,854 |
| Class R | 2,486 |
| Transfer agent fees — A, C, R and Y | 127,271 |
| Transfer agent fees — R5 | 1 |
| Transfer agent fees — R6 | 60 |
| Trustees’ and officers’ fees and benefits | 25,008 |
| Registration and filing fees | 78,366 |
| Reports to shareholders | 48,413 |
| Professional services fees | 150,533 |
| Other | 12,498 |
| Total expenses | 1,103,723 |
| Less: Fees waived and/or expense offset arrangement(s) | (6,943) |
| Net expenses | 1,096,780 |
| Net investment income | 456,923 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | (7,734,733) |
| Affiliated investment securities | 605 |
| Foreign currencies | (42,156) |
| | (7,776,284) |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 10,663,650 |
| Affiliated investment securities | (21) |
| Foreign currencies | (862) |
| | 10,662,767 |
| Net realized and unrealized gain | 2,886,483 |
| Net increase in net assets resulting from operations | $3,343,406 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Greater China Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $456,923 | $759,718 |
| Net realized gain (loss) | (7,776,284) | (18,420,097) |
| Change in net unrealized appreciation | 10,662,767 | 29,196,995 |
| Net increase in net assets resulting from operations | 3,343,406 | 11,536,616 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (1,022,869) | (1,147,256) |
| Class C | (23,143) | (22,293) |
| Class R | (7,477) | (6,683) |
| Class Y | (97,974) | (117,984) |
| Class R5 | (162) | (151) |
| Class R6 | (8,656) | (8,833) |
| Total distributions from distributable earnings | (1,160,281) | (1,303,200) |
| Share transactions–net: | | |
| Class A | (9,620,630) | (8,406,321) |
| Class C | (465,131) | (212,608) |
| Class R | 211,220 | 85,057 |
| Class Y | (1,204,806) | (491,134) |
| Class R5 | (7,414) | — |
| Class R6 | (100,220) | (9,615) |
| Net increase (decrease) in net assets resulting from share transactions | (11,186,981) | (9,034,621) |
| Net increase (decrease) in net assets | (9,003,856) | 1,198,795 |
| Net assets: | | |
| Beginning of year | 64,094,328 | 62,895,533 |
| End of year | $55,090,472 | $64,094,328 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Greater China Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $17.05 | $0.14 | $0.99 | $1.13 | $(0.32) | $— | $(0.32) | $17.86 | 6.81% | $48,499 | 1.91% | 1.92% | 0.81% | 106% |
| Year ended 10/31/23 | 14.70 | 0.19 | 2.47 | 2.66 | (0.31) | — | (0.31) | 17.05 | 17.90 | 56,178 | 1.63 | 1.63 | 0.99 | 94 |
| Year ended 10/31/22 | 25.26 | 0.23(d) | (10.77) | (10.54) | (0.02) | — | (0.02) | 14.70 | (41.77) | 55,282 | 1.55 | 1.60 | 1.10(d) | 114 |
| Year ended 10/31/21 | 29.41 | 0.07 | (4.06) | (3.99) | — | (0.16) | (0.16) | 25.26 | (13.66) | 110,423 | 1.52 | 1.52 | 0.23 | 101 |
| Year ended 10/31/20 | 23.24 | 0.00(d) | 6.42 | 6.42 | (0.25) | — | (0.25) | 29.41 | 27.92 | 68,875 | 1.66 | 1.67 | 0.02(d) | 59 |
| Class C |
| Year ended 10/31/24 | 16.23 | 0.01 | 0.95 | 0.96 | (0.18) | — | (0.18) | 17.01 | 6.03(e) | 1,851 | 2.65(e) | 2.66(e) | 0.07(e) | 106 |
| Year ended 10/31/23 | 13.97 | 0.06 | 2.35 | 2.41 | (0.15) | — | (0.15) | 16.23 | 17.14(e) | 2,244 | 2.29(e) | 2.29(e) | 0.33(e) | 94 |
| Year ended 10/31/22 | 24.17 | 0.07(d) | (10.27) | (10.20) | — | — | — | 13.97 | (42.20) | 2,110 | 2.30 | 2.35 | 0.35(d) | 114 |
| Year ended 10/31/21 | 28.37 | (0.15) | (3.89) | (4.04) | — | (0.16) | (0.16) | 24.17 | (14.33) | 4,296 | 2.27 | 2.27 | (0.52) | 101 |
| Year ended 10/31/20 | 22.35 | (0.18)(d) | 6.21 | 6.03 | (0.01) | — | (0.01) | 28.37 | 26.98 | 3,647 | 2.41 | 2.42 | (0.73)(d) | 59 |
| Class R |
| Year ended 10/31/24 | 17.00 | 0.10 | 0.98 | 1.08 | (0.27) | — | (0.27) | 17.81 | 6.49 | 706 | 2.16 | 2.17 | 0.56 | 106 |
| Year ended 10/31/23 | 14.65 | 0.14 | 2.47 | 2.61 | (0.26) | — | (0.26) | 17.00 | 17.62 | 489 | 1.88 | 1.88 | 0.74 | 94 |
| Year ended 10/31/22 | 25.21 | 0.18(d) | (10.74) | (10.56) | — | — | — | 14.65 | (41.89) | 366 | 1.80 | 1.85 | 0.85(d) | 114 |
| Period ended 10/31/21(f) | 32.59 | 0.01 | (7.39) | (7.38) | — | — | — | 25.21 | (22.65) | 701 | 1.71(g) | 1.71(g) | 0.04(g) | 101 |
| Class Y |
| Year ended 10/31/24 | 17.10 | 0.18 | 0.98 | 1.16 | (0.37) | — | (0.37) | 17.89 | 7.01 | 3,756 | 1.66 | 1.67 | 1.06 | 106 |
| Year ended 10/31/23 | 14.74 | 0.24 | 2.49 | 2.73 | (0.37) | — | (0.37) | 17.10 | 18.27 | 4,809 | 1.38 | 1.38 | 1.24 | 94 |
| Year ended 10/31/22 | 25.34 | 0.28(d) | (10.80) | (10.52) | (0.08) | — | (0.08) | 14.74 | (41.64) | 4,805 | 1.30 | 1.35 | 1.35(d) | 114 |
| Year ended 10/31/21 | 29.44 | 0.14 | (4.08) | (3.94) | — | (0.16) | (0.16) | 25.34 | (13.47) | 10,703 | 1.27 | 1.27 | 0.48 | 101 |
| Year ended 10/31/20 | 23.26 | 0.06(d) | 6.43 | 6.49 | (0.31) | — | (0.31) | 29.44 | 28.26 | 7,754 | 1.41 | 1.42 | 0.27(d) | 59 |
| Class R6 |
| Year ended 10/31/24 | 17.12 | 0.21 | 1.00 | 1.21 | (0.41) | — | (0.41) | 17.92 | 7.31 | 278 | 1.47 | 1.47 | 1.25 | 106 |
| Year ended 10/31/23 | 14.76 | 0.27 | 2.49 | 2.76 | (0.40) | — | (0.40) | 17.12 | 18.42 | 368 | 1.20 | 1.20 | 1.42 | 94 |
| Year ended 10/31/22 | 25.37 | 0.31(d) | (10.81) | (10.50) | (0.11) | — | (0.11) | 14.76 | (41.55) | 326 | 1.18 | 1.18 | 1.47(d) | 114 |
| Year ended 10/31/21 | 29.43 | 0.18 | (4.08) | (3.90) | — | (0.16) | (0.16) | 25.37 | (13.34) | 981 | 1.13 | 1.13 | 0.62 | 101 |
| Year ended 10/31/20 | 23.26 | 0.11(d) | 6.42 | 6.53 | (0.36) | — | (0.36) | 29.43 | 28.46 | 867 | 1.25 | 1.26 | 0.43(d) | 59 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2021, the portfolio turnover calculation excludes the value of securities purchased of $64,937,627 in connection with the acquisition of Invesco Pacific Growth Fund into the Fund. |
| (d) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the year ended October 31, 2022. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.23 and 1.09%, $0.06 and 0.34%, $0.17 and 0.84%, $0.28 and 1.34%, $0.30 and 1.40% and $0.31 and 1.46% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the year ended October 31, 2020. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $(0.05) and (0.17)%, $(0.23) and (0.92)%, $0.01 and 0.08%, $0.06 and 0.23% and $0.06 and 0.24% for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.99% and 0.91% for the years ended October 31, 2024 and 2023, respectively. |
| (f) | Commencement date of April 23, 2021. |
| (g) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Greater China Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Greater China Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
The Fund currently consists of five different classes of shares: Class A, Class C, Class R, Class Y and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective as of October 9, 2024, Class R5 shares of the Fund were liquidated.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 9 | Invesco Greater China Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of |
| 10 | Invesco Greater China Fund |
| | compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| J. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| K. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| L. | Other Risks - Investing in a single-country or region mutual fund involves greater risk than investing in a more diversified fund due to lack of exposure to other countries or regions. |
Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; lack of willingness or ability of the Chinese government to support the economies and markets of the Greater China region; difficulty in obtaining information necessary for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; lack of publicly available information; limited legal remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts and the risk of war, either internal or with other countries; public health emergencies resulting in market closures, travel restrictions, quarantines or other interventions; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole.
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region. In addition, export growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products and services, the institution of tariffs, sanctions, capital controls, embargoes, trade wars or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. The current political climate has intensified concerns about a potential trade war between China and the U.S., as each country has recently imposed tariffs on the other country’s products. Further, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.
Certain securities issued by companies located or operating in Greater China, such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations, and operational, clearing and settlement risks. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events. The liquidity of Chinese securities may shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate.
Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
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NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate |
| First $1 billion | 0.870% |
| Next $1 billion | 0.820% |
| Next $49 billion | 0.770% |
| Over $51 billion | 0.760% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.87%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $1,188.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares, up to 1.00% of the average daily net assets of Class C shares, and up to 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $4,471 in front-end sales commissions from the sale of Class A shares and $0 and $134 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
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The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Common Stocks & Other Equity Interests | $2,246,749 | $50,091,932 | $— | $52,338,681 |
| Money Market Funds | 2,601,628 | 430,218 | — | 3,031,846 |
| Total Investments | $4,848,377 | $50,522,150 | $— | $55,370,527 |
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $5,755.
NOTE 5—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $1,160,281 | $1,303,200 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $544,654 |
| Net unrealized appreciation — investments | 8,408,424 |
| Net unrealized appreciation (depreciation) — foreign currencies | (25,347) |
| Temporary book/tax differences | (77,279) |
| Capital loss carryforward | (36,164,076) |
| Shares of beneficial interest | 82,404,096 |
| Total net assets | $55,090,472 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to passive foreign investment companies, distributions and wash sales.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $19,168,826 | $16,995,250 | $36,164,076 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
| 13 | Invesco Greater China Fund |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $59,480,935 and $73,763,569, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $9,605,635 |
| Aggregate unrealized (depreciation) of investments | (1,197,211) |
| Net unrealized appreciation of investments | $8,408,424 |
Cost of investments for tax purposes is $46,962,103.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions, on October 31, 2024, undistributed net investment income was decreased by $42,156 and undistributed net realized gain (loss) was increased by $42,156. This reclassification had no effect on the net assets or the distributable earnings (loss) of the Fund.
NOTE 10—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 246,340 | $4,324,999 | | 997,548 | $18,622,567 |
| Class C | 8,711 | 142,644 | | 16,309 | 306,867 |
| Class R | 18,754 | 344,037 | | 9,267 | 182,948 |
| Class Y | 142,873 | 2,438,924 | | 215,424 | 4,628,149 |
| Class R6 | 5,546 | 97,352 | | 9,350 | 178,763 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 55,382 | 904,394 | | 53,343 | 1,017,779 |
| Class C | 1,388 | 21,717 | | 1,174 | 21,445 |
| Class R | 458 | 7,477 | | 351 | 6,683 |
| Class Y | 5,231 | 85,372 | | 5,452 | 104,082 |
| Class R6 | 444 | 7,248 | | 426 | 8,124 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 5,417 | 90,479 | | 5,889 | 110,321 |
| Class C | (5,669) | (90,479) | | (6,166) | (110,321) |
| Reacquired: | | | | | |
| Class A | (886,322) | (14,940,502) | | (1,523,331) | (28,156,988) |
| Class C | (33,891) | (539,013) | | (24,044) | (430,599) |
| Class R | (8,335) | (140,294) | | (5,890) | (104,574) |
| Class Y | (219,473) | (3,729,102) | | (265,441) | (5,223,365) |
| Class R5 | (393) | (7,414) | | - | - |
| Class R6 | (11,952) | (204,820) | | (10,396) | (196,502) |
| Net increase (decrease) in share activity | (675,491) | $(11,186,981) | | (520,735) | $(9,034,621) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 44% 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. |
NOTE 11—Subsequent Event
At the meeting held September 9-11, 2024, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would transfer all of its assets and liabilities to Invesco EQV Asia Pacific Equity Fund (the “Acquiring Fund”).
The reorganization is expected to be consummated at the close of business on or about February 21, 2025. Upon closing of the reorganization, shareholders of the Fund will receive shares of the Acquiring Fund in exchange for their shares of the Fund, and the Fund will liquidate and cease operations.
| 14 | Invesco Greater China Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Greater China Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Greater China Fund (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 15 | Invesco Greater China Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Greater China Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees
are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back
office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement as well as the sub-advisory contracts for the Fund, as Invesco Hong Kong Limited currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI China All Shares Index (Index). The Board noted that performance of Class A shares of the Fund was in the second quintile of its performance universe for the one year period, the third quintile for the three year period and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one and five year periods and reasonably comparable to the performance of the Index for the three year period. The Board considered that overweight allocation to certain Chinese companies and stock selection within the Chinese healthcare sector were the primary detractors from the Fund’s longer-term performance.
| 16 | Invesco Greater China Fund |
The Board further considered that the Fund underwent a portfolio management team change in August 2023, and that performance results prior to such date were those of the prior portfolio management team. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
| C. | Advisory and Sub-Advisory Fees and Fund Expenses |
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and above, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the Fund’s contractual management fee schedule was reduced at certain breakpoint levels effective 2021. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. As previously noted, the Board noted that the Fund’s actual management fees and total expense ratio were in the fourth and fifth quintile, respectively, of its expense group and discussed with management reasons for such relative actual management fees and total expenses. The independent Trustees reviewed and considered additional information provided by management, including with respect to the Fund’s transfer agency fee. The independent Trustees met and discussed those responses with legal counsel to the independent Trustees and the Senior Officer, and subsequently with representatives of management.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and
maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
| E. | Profitability and Financial Resources |
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating
that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered
| 17 | Invesco Greater China Fund |
Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 18 | Invesco Greater China Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | | |
| Qualified Dividend Income* | 74.58% | |
| Corporate Dividends Received Deduction* | 0.00% | |
| U.S. Treasury Obligations* | 0.00% | |
| Qualified Business Income* | 0.00% | |
| Business Interest Income* | 0.00% | |
| Foreign Taxes | $0.0383 | per share |
| Foreign Source Income | $0.5209 | per share |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 19 | Invesco Greater China Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 20 | Invesco Greater China Fund |
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | CHI-NCSR |
Annual Financial Statements and Other InformationOctober 31, 2024
A: GGHCX ■ C: GTHCX ■ Y: GGHYX ■ Investor: GTHIX ■ R6: GGHSX
| |
| |
| |
| Notes to Financial Statements |
| Report of Independent Registered Public Accounting Firm |
| Approval of Investment Advisory and Sub-Advisory Contracts |
| |
| Other Information Required in Form N-CSR (Items 8-11) |
Schedule of Investments(a)
| | |
Common Stocks & Other Equity Interests–96.04% |
|
| | |
| | |
Alnylam Pharmaceuticals, Inc.(b) | | |
| | |
argenx SE, ADR (Netherlands)(b) | | |
Ascendis Pharma A/S, ADR (Denmark)(b) | | |
Blueprint Medicines Corp.(b) | | |
| | |
Crinetics Pharmaceuticals, Inc.(b)(c) | | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc.(b) | | |
| | |
| | |
Krystal Biotech, Inc.(b)(c) | | |
Merus N.V. (Netherlands)(b) | | |
| | |
Nuvalent, Inc., Class A(b) | | |
Protagonist Therapeutics, Inc.(b) | | |
Regeneron Pharmaceuticals, Inc.(b) | | |
Sarepta Therapeutics, Inc.(b) | | |
SpringWorks Therapeutics, Inc.(b)(c) | | |
Twist Bioscience Corp.(b) | | |
Ultragenyx Pharmaceutical, Inc.(b) | | |
United Therapeutics Corp.(b) | | |
| | |
| | |
Vertex Pharmaceuticals, Inc.(b) | | |
Viking Therapeutics, Inc.(b)(c) | | |
| | | |
Health Care Distributors–1.74% |
| | |
Health Care Equipment–18.11% |
Boston Scientific Corp.(b) | | |
| | |
Globus Medical, Inc., Class A(b)(c) | | |
Inspire Medical Systems, Inc.(b) | | |
| | |
Integer Holdings Corp.(b)(c) | | |
Intuitive Surgical, Inc.(b) | | |
PROCEPT BioRobotics Corp.(b) | | |
| | |
| | |
TransMedics Group, Inc.(b)(c) | | |
| | | |
Health Care Facilities–7.76% |
Brookdale Senior Living, Inc.(b) | | |
| | |
| | |
Select Medical Holdings Corp. | | |
| | |
Health Care Facilities–(continued) |
Tenet Healthcare Corp.(b) | | |
| | | |
|
| | |
Health Care Services–1.30% |
BrightSpring Health Services, Inc.(b)(c) | | |
| | |
| | |
| | | |
Health Care Supplies–3.20% |
| | |
Cooper Cos., Inc. (The)(b) | | |
Lantheus Holdings, Inc.(b) | | |
Merit Medical Systems, Inc.(b) | | |
| | |
| | | |
Life Sciences Tools & Services–10.06% |
| | |
| | |
| | |
Lonza Group AG (Switzerland) | | |
Mettler-Toledo International, Inc.(b) | | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | | |
Managed Health Care–7.35% |
| | |
| | |
| | |
| | | |
|
AstraZeneca PLC, ADR (United Kingdom) | | |
Axsome Therapeutics, Inc.(b)(c) | | |
Collegium Pharmaceutical, Inc.(b)(c) | | |
| | |
Intra-Cellular Therapies, Inc.(b) | | |
| | |
Novo Nordisk A/S, Class B (Denmark) | | |
Phathom Pharmaceuticals, Inc.(b)(c) | | |
| | |
Tarsus Pharmaceuticals, Inc.(b)(c) | | |
| | |
| | |
| | | |
Total Common Stocks & Other Equity Interests (Cost $792,899,812) | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
2
Invesco Health Care Fund
| | |
Money Market Funds–(continued) |
Invesco Treasury Portfolio, Institutional | | |
Total Money Market Funds (Cost $39,117,742) | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.03% (Cost $832,017,554) | | | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, | | |
| | |
Money Market Funds–(continued) |
Invesco Private Prime Fund, 4.99%(d)(e)(f) | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $67,678,530) | |
TOTAL INVESTMENTS IN SECURITIES–104.19% (Cost $899,696,084) | |
OTHER ASSETS LESS LIABILITIES—(4.19)% | |
| |
Investment Abbreviations:
| – American Depositary Receipt |
| – Real Estate Investment Trust |
Notes to Schedule of Investments:
| 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. |
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Invesco Liquid Assets Portfolio, Institutional Class | | | | | | | |
Invesco Treasury Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
3
Invesco Health Care Fund
Statement of Assets and Liabilities
| |
Investments in unaffiliated securities, at value
(Cost $792,899,812)* | |
Investments in affiliated money market funds, at value (Cost $106,796,272) | |
Foreign currencies, at value (Cost $16,336) | |
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Investment for trustee deferred compensation and retirement plans | |
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Collateral upon return of securities loaned | |
Accrued fees to affiliates | |
Accrued trustees’ and officers’ fees and benefits | |
Accrued other operating expenses | |
Trustee deferred compensation and retirement plans | |
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Net assets applicable to shares outstanding | |
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Shares of beneficial interest | |
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|
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Shares outstanding, no par value, with an unlimited number of shares authorized: |
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| |
Net asset value per share | |
Maximum offering price per share
(Net asset value of $39.45 ÷ 94.50%) | |
| |
Net asset value and offering price per share | |
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Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
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Net asset value and offering price per share | |
| At October 31, 2024, securities with an aggregate value of $65,234,941 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4
Invesco Health Care Fund
Statement of Operations
For the year ended October 31, 2024
| |
Dividends (net of foreign withholding taxes of $71,547) | |
Dividends from affiliated money market funds (includes net securities lending income of $124,281) | |
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Administrative services fees | |
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Transfer agent fees — A, C, Y and Investor | |
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Trustees’ and officers’ fees and benefits | |
Registration and filing fees | |
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Professional services fees | |
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Less: Fees waived and/or expense offset arrangement(s) | |
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Net investment income (loss) | |
Realized and unrealized gain (loss) from: | |
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Unaffiliated investment securities | |
Affiliated investment securities | |
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Change in net unrealized appreciation (depreciation) of: | |
Unaffiliated investment securities | |
Affiliated investment securities | |
| |
| |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5
Invesco Health Care Fund
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | |
| | |
Net investment income (loss) | | |
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Change in net unrealized appreciation (depreciation) | | |
Net increase (decrease) in net assets resulting from operations | | |
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| | |
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Net increase (decrease) in net assets resulting from share transactions | | |
Net increase (decrease) in net assets | | |
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| | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6
Invesco Health Care Fund
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Net asset
value,
beginning
of period | | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | | Net asset
value, end
of period | | 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 | |
|
| | | | | | | | | | | | | | |
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| Calculated using average shares outstanding. |
| 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. |
| Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7
Invesco Health Care Fund
Notes to Financial Statements
NOTE 1—Significant Accounting Policies
Invesco Health Care Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
The Fund currently consists of five different classes of shares: Class A, Class C, Class Y, Investor Class and Class R6. Class Y and Investor Class shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class Y, Investor Class and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A.
Security Valuations — Securities, including restricted securities, are valued according to the following policy.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
8
Invesco Health Care Fund
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.
Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.
Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.
Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.
Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.
Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of
9
Invesco Health Care Fund
compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser $8,213 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
J.
Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
K.
Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
L.
Other Risks - The Fund’s performance is vulnerable to factors affecting the health care sector, including significant government regulations, restrictions on government reimbursement for medical expenses, rising costs of medical products, services and facilities, pricing pressure, an increased emphasis on outpatient services, a limited number of products, industry innovation, costs associated with obtaining and protecting patents, product liability and other claims, changes in technologies and other market developments.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.63%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class Y, Investor Class and Class R6 shares to 2.00%, 2.75%, 1.75%, 2.00% and 1.75%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4)
10
Invesco Health Care Fund
extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $44,342.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y, Investor Class and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.25% of the average daily net assets of Investor Class shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $47,389 in front-end sales commissions from the sale of Class A shares and $413 and $627 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $61,256 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $58,104.
NOTE 5—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a
11
Invesco Health Care Fund
period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
Tax Components of Net Assets at Period-End: |
| |
Undistributed long-term capital gain | |
Net unrealized appreciation — investments | |
Net unrealized appreciation — foreign currencies | |
Temporary book/tax differences | |
Late-Year ordinary loss deferral | |
Shares of beneficial interest | |
| |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $720,500,278 and $828,129,344, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
Aggregate unrealized appreciation of investments | |
Aggregate unrealized (depreciation) of investments | |
Net unrealized appreciation of investments | |
Cost of investments for tax purposes is $901,554,293.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of net operating losses and equalization, on October 31, 2024, undistributed net investment income (loss) was increased by $654,696, undistributed net realized gain was decreased by $1,482,133 and shares of beneficial interest was increased by $827,437. This reclassification had no effect on the net assets of the Fund.
NOTE 10—Share Information
| Summary of Share Activity |
| | Year ended
October 31, 2023 |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Automatic conversion of Class C shares to Class A shares: | | | | |
| | | | |
| | | | |
12
Invesco Health Care Fund
| Summary of Share Activity |
| Year ended October 31, 2024(a) | Year ended October 31, 2023 |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in share activity | | | | |
| There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 14% 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. |
13
Invesco Health Care Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Health Care Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Health Care Fund (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
14
Invesco Health Care Fund
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Health Care Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees
are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back
office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the S&P Composite 1500® Health Care Index (Index). The Board noted that performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one and five year periods, and the third quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board considered that the Fund underwent a portfolio management and investment process change in November 2021, and that performance results prior to such date were those of the prior portfolio
15
Invesco Health Care Fund
management team. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each below the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated
measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for
16
Invesco Health Care Fund
executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
17
Invesco Health Care Fund
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | |
Qualified Dividend Income* | |
Corporate Dividends Received Deduction* | |
U.S. Treasury Obligations* | |
Qualified Business Income* | |
Business Interest Income* | |
*
The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
18
Invesco Health Care Fund
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
19
Invesco Health Care Fund
SEC file number(s): 811-05426 and 033-19338
Invesco Distributors, Inc.
GHC-NCSR
Annual Financial Statements and Other InformationOctober 31, 2024
Invesco International Bond Fund
A: OIBAX ■ C: OIBCX ■ R: OIBNX ■ Y: OIBYX ■ R5: INBQX ■ R6: OIBIX
| Consolidated Schedule of Investments |
| Consolidated Financial Statements |
| Consolidated Financial Highlights |
| Notes to Consolidated Financial Statements |
| Report of Independent Registered Public Accounting Firm |
| Approval of Investment Advisory and Sub-Advisory Contracts |
| |
| Other Information Required in Form N-CSR (Items 8-11) |
Consolidated Schedule of Investments
| | |
Non-U.S. Dollar Denominated Bonds & Notes–55.76%(a) |
|
Argentine Bonos del Tesoro, 15.50%, 10/17/2026 | | | |
|
Australia Government Bond, Series 142, 4.25%, | | | |
Treasury Corporation of Victoria, 5.50%, 11/17/2026 | | | |
| | | |
|
| | | |
|
Brazil Notas do Tesouro Nacional, Series B, 6.00%, 05/15/2055 | | | |
|
Ontario Electricity Financial Corp., | | |
| | | |
| | | |
Province of Quebec, 5.35%, 06/01/2025 | | | |
| | | |
|
| | |
Series B, 7.50%, 08/26/2026 | | | |
Series B, 6.00%, 04/28/2028 | | | |
Series B, 7.75%, 09/18/2030 | | | |
Series B, 9.25%, 05/28/2042 | | | |
Fideicomiso PA Concesion Ruta al Mar, 6.75%, | | | |
Fideicomiso PA Costera, Series B, 6.25%, | | | |
PA Autopista Rio Magdalena, 6.05%, | | | |
| | | |
|
| | |
| | | |
| | | |
| | |
|
| | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
Hellenic Republic Government Bond, 0.00%, | | | |
| | | |
|
| | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
Ivory Coast Government International Bond, 5.25%, | | | |
|
| | | |
|
Peru Government Bond, 6.15%, 08/12/2032 | | | |
|
Romanian Government International Bond, 5.13%, | | | |
|
Republic of South Africa Government Bond, | | |
Series 2032, 8.25%, 03/31/2032 | | | |
Series 2040, 9.00%, 01/31/2040 | | | |
| | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
2
Invesco International Bond Fund
| | |
|
Spain Government Bond, 2.80%, 05/31/2026 | | | |
| | | |
| | | |
|
African Development Bank, | | |
| | | |
| | | |
Corporacion Andina de Fomento, 10.35%, | | | |
| | | |
|
| | | |
Gatwick Airport Finance PLC, 4.38%, | | | |
Lloyds Banking Group PLC, | | | |
| | | |
| | | |
United Kingdom Gilt, 3.50%, | | | |
| | | |
|
Uruguay Government International Bond, 9.75%, 07/20/2033 | | | |
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $622,859,270) | |
| | |
U.S. Dollar Denominated Bonds & Notes–16.05% |
|
Argentine Republic Government International Bond, 1.75%, | | | |
Telecom Argentina S.A., 9.50%, | | | |
| | |
| | | |
| | | |
| | | |
|
QBE Insurance Group Ltd., 6.75%, | | | |
| | |
|
Braskem Netherlands Finance B.V., 8.00%, | | | |
Brazilian Government International Bond, 6.13%, 01/22/2032 | | | |
CSN Inova Ventures, 6.75%, | | | |
Minerva (Luxembourg) S.A., 4.38%, | | | |
Nexa Resources S.A., 6.50%, | | | |
Sitios Latinoamerica S.A.B. de C.V., 5.38%, | | | |
| | | |
|
| | | |
Banco de Credito e Inversiones S.A., | | | |
Banco del Estado de Chile, | | | |
Chile Electricity Lux MPC II S.a.r.l., 5.58%, | | | |
Mercury Chile Holdco LLC, 6.50%, | | | |
Sociedad Quimica y Minera de Chile S.A., 5.50%, | | | |
| | | |
|
| | | |
|
| | |
| | | |
| | | |
| | | |
|
Aeropuertos Dominicanos Siglo XXI S.A., 7.00%, | | | |
|
Ecuador Government International Bond, 6.90%, | | | |
|
| | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
3
Invesco International Bond Fund
| | |
|
Electricite de France S.A., | | | |
| | | |
|
Melco Resorts Finance Ltd., 4.88%, | | | |
|
Adani Ports & Special Economic Zone Ltd., 4.20%, | | | |
Muthoot Finance Ltd., 7.13%, | | | |
| | | |
|
Iraq International Bond, 5.80%, | | | |
|
BB Blue Financing DAC, Series A1, 4.40%, 09/20/2037 | | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
MGM China Holdings Ltd., 5.88%, | | | |
| | | |
| | | |
|
Banco Mercantil del Norte | | | |
Braskem Idesa S.A.P.I., 7.45%, | | | |
| | | |
| | |
|
FIEMEX Energia - Banco Actinver S.A. Institucion de Banca Multiple, 7.25%, | | | |
Nemak S.A.B. de C.V., 3.63%, | | | |
Petroleos Mexicanos, 6.88%, | | | |
| | | |
|
Nigeria Government International Bond, 8.38%, | | | |
|
Senegal Government International Bond, | | |
| | | |
| | | |
| | | |
|
Telecommunications Co. Telekom Srbija Akcionarsko drustvo, Belgrade, 7.00%, | | | |
|
Republic of South Africa Government International Bond, 4.85%, 09/30/2029 | | | |
|
European Bank for Reconstruction & Development, 6.40%, 08/27/2025 | | | |
|
Argentum Netherlands B.V. for Swiss Re Ltd., 5.63%, | | | |
| | | |
| | | |
Willow No 2 Ireland PLC for Zurich Insurance Co. Ltd., 4.25%, | | | |
Zurich Finance (Ireland) DAC, 3.50%, | | | |
| | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
4
Invesco International Bond Fund
| | |
|
Turkcell Iletisim Hizmetleri A.S., 5.80%, | | | |
Zorlu Enerji Elektrik Uretim A.S., 11.00%, | | | |
| | | |
|
| | | |
British Telecommunications PLC, 4.25%, | | | |
| | | |
Vodafone Group PLC, 3.25%, | | | |
| | | |
|
| | | |
U.S. International Development Finance Corp., Series 4, 3.13%, 04/15/2028 | | | |
| | | |
|
National Bank of Uzbekistan, 8.50%, | | | |
Navoi Mining & Metallurgical Combinat, 6.70%, | | | |
| | | |
Total U.S. Dollar Denominated Bonds & Notes (Cost $180,560,258) | |
| | |
Asset-Backed Securities–8.13% |
| | |
Series 2007-1, Class F, 8.35% (SONIA + 3.37%), | | | |
Series 2006-2, Class F, 8.35% (SONIA + 3.37%), | | | |
| | |
Series E, 6.96% (SONIA + 2.00%), | | | |
Series F, 7.46% (SONIA + 2.50%), | | | |
| | |
Eurohome UK Mortgages PLC, | | |
Series 2007-1, Class M2, 5.60% (SONIA + 0.62%), | | | |
Series 2007-2, Class B2, 9.10% (SONIA + 4.12%), | | | |
Eurosail PLC, Series 2007-4X, Class D1A, 6.85% (SONIA + 1.87%), | | | |
Eurosail-UK NC PLC, Series 2007-1X, Class D1C, 5.99% (SONIA + 1.01%), | | | |
Ludgate Funding PLC, Series 2007-1, Class RES, 0.00%, | | | |
| | |
Series 2006-1X, Class B2, 8.60% (SONIA + 3.62%), | | | |
Series 2007-1X, Class B2, 8.10% (SONIA + 3.12%), | | | |
Mortgage Funding PLC, Series 2008-1, Class B2, 8.30% (SONIA + 3.32%), | | | |
| | |
Series 2006-2, Class CB, 3.76% (3 mo. EURIBOR + 0.43%), | | | |
Series 2007-2X, Class CB, 3.92% (3 mo. EURIBOR + 0.44%), | | | |
Series 2007-1X, Class CB, 3.89% (3 mo. EURIBOR + 0.38%), | | | |
RMAC Securities No. 1 PLC, Series 2006-NS4X, Class B1C, 4.31% (3 mo. EURIBOR + 0.85%), | | | |
Towd Point Mortgage Funding 2024 - Granite 6 PLC, Series 2024- GR6X, Class F, 9.48% (SONIA + 4.50%), | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5
Invesco International Bond Fund
| | |
Sestante Finance S.r.l., Series 2005, Class C1, 3.98% (3 mo. EURIBOR + 0.80%), | | | |
IM Pastor 4, FTA, Series B, 3.65% (3 mo. EURIBOR + 0.19%), | | | |
| | |
Series 2024-1A, Class B, 0.00% (SONIA + 2.95%), | | | |
Series 2024-1A, Class C, 0.00% (SONIA + 3.75%), | | | |
Series 2024-1A, Class A, 0.00% (SONIA + 1.90%), | | | |
Lusitano Mortgages No. 5 PLC, Series D, 4.14% (3 mo. EURIBOR + 0.96%), | | | |
Fideicomiso Dorrego Y Libertador, | | |
| | | |
| | | |
Fideicomiso Financiero Invernea Proteina 2, Serie II, 0.00%, | | | |
Total Asset-Backed Securities (Cost $91,845,764) | |
U.S. Treasury Securities–7.46% |
U.S. Treasury Bills–7.46% |
4.40 - 4.83%, 01/30/2025 (Cost $78,752,515)(f)(m)(n) | | | |
| | |
Common Stocks & Other Equity Interests–4.47% |
|
Banco BBVA Argentina S.A. | | |
| | |
|
Banco Macro S.A., Class B | | |
Grupo Financiero Galicia S.A., Class B | | |
| | |
| | |
| | |
Total Common Stocks & Other Equity Interests (Cost $27,596,390) | |
|
Invesco Government & Agency Portfolio, Institutional Class, (Cost $5) | | |
|
| |
TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-95.59% (Cost $1,044,675,016) | | | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, | | |
Invesco Private Prime Fund, | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $15,032,256) | |
TOTAL INVESTMENTS IN SECURITIES—97.01% (Cost $1,059,707,272) | |
OTHER ASSETS LESS LIABILITIES–2.99% | |
| |
Investment Abbreviations:
| – American Depositary Receipt |
| |
| |
| |
| |
| |
| – Designated Activity Co. |
| |
| |
| – Euro Interbank Offered Rate |
| |
| |
| |
| |
| – Sterling Overnight Index Average |
| |
| |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6
Invesco International Bond Fund
Notes to Consolidated Schedule of Investments:
| Foreign denominated security. Principal amount is denominated in the currency indicated. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $389,207,994, which represented 36.83% of the Fund’s Net Assets. |
| Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
| Perpetual bond with no specified maturity date. |
| Zero coupon bond issued at a discount. |
| Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The value of this security at October 31, 2024 represented less than 1% of the Fund’s Net Assets. |
| Security valued using significant unobservable inputs (Level 3). See Note 3. |
| Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2024. |
| Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on October 31, 2024. |
| All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 2M. |
| All or a portion of the value was designated as collateral to cover margin requirements for swap agreements. See Note 1P. |
| Non-income producing security. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Invesco Liquid Assets Portfolio, Institutional Class | | | | | | | |
Invesco Treasury Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The table below details options purchased. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
Open Over-The-Counter Foreign Currency Options Purchased(a) |
| | | | | | |
|
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
Subtotal — Foreign Currency Call Options Purchased | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7
Invesco International Bond Fund
Open Over-The-Counter Foreign Currency Options Purchased(a)—(continued) |
| | | | | | |
|
| | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Merrill Lynch International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | Goldman Sachs International | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | |
| | Standard Chartered Bank PLC | | | | | | |
Subtotal — Foreign Currency Put Options Purchased | |
Total Foreign Currency Options Purchased | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $39,695,000. |
Open Over-The-Counter Interest Rate Swaptions Purchased(a) |
| | | | | | | | | |
|
10 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
15 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
30 Year Interest Rate Swap | | | | | | | | | | |
30 Year Interest Rate Swap | | | | | | | | | | |
Total Interest Rate Swaptions Purchased | | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $39,695,000. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8
Invesco International Bond Fund
Open Over-The-Counter Credit Default Swaptions Written(a) |
| | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Markit CDX North America High Yield Index, Series 42, Version 1 | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | | | Markit CDX North America High Yield Index, Series 42, Version 1 | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | | | Markit CDX North America High Yield Index, Series 43, Version 1 | | | | | | | | | |
Total Credit Default Swaptions Written | | | | | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $39,695,000. |
| Implied credit spreads represent the current level, as of October 31, 2024, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Open Over-The-Counter Foreign Currency Options Written(a) |
| | | | | | | | |
|
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Standard Chartered Bank PLC | | | | | | | | |
Subtotal — Foreign Currency Call Options Written | | | | | | | |
|
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | Morgan Stanley and Co. International PLC | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | J.P. Morgan Chase Bank, N.A. | | | | | | | | |
| | | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Merrill Lynch International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
| | Goldman Sachs International | | | | | | | | |
Subtotal — Foreign Currency Put Options Written | | | | | | | |
Total Foreign Currency Options Written | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $39,695,000. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9
Invesco International Bond Fund
Open Over-The-Counter Interest Rate Swaptions Written(a) |
| | | | | | | | | | | |
|
30 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
10 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
30 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
5 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
30 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
30 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
Subtotal—Interest Rate Call Swaptions Written | | | | | | | | |
|
2 Year Interest Rate Swap | | | | | | | | | | | | |
10 Year Interest Rate Swap | | | | | | | | | | | | |
5 Year Interest Rate Swap | | | | | | | | | | | | |
2 Year Interest Rate Swap | | | | | | | | | | | | |
2 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
30 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
10 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
30 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
2 Year Interest Rate Swap | | J.P. Morgan Chase Bank, N.A. | | | | | | | | | | |
30 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
10 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
5 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
2 Year Interest Rate Swap | | Morgan Stanley and Co. International PLC | | | | | | | | | | |
Subtotal—Interest Rate Put Swaptions Written | | | | | | | | |
Total Interest Rate Swaptions Written | | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $39,695,000. |
|
| | | | | Unrealized Appreciation (Depreciation) |
|
| | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10
Invesco International Bond Fund
Open Futures Contracts—(continued) |
| | | | | Unrealized Appreciation (Depreciation) |
|
U.S. Treasury 5 Year Notes | | | | | |
U.S. Treasury 10 Year Ultra Notes | | | | | |
Subtotal—Short Futures Contracts | | |
| | |
Open Forward Foreign Currency Contracts |
| | | Unrealized
Appreciation
(Depreciation) |
| |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11
Invesco International Bond Fund
Open Forward Foreign Currency Contracts—(continued) |
| | | Unrealized Appreciation (Depreciation) |
| |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| | | | | | |
| | | | | | |
| |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| Goldman Sachs International | | | | | |
| | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| J.P. Morgan Chase Bank, N.A. | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Merrill Lynch International | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12
Invesco International Bond Fund
Open Forward Foreign Currency Contracts—(continued) |
| | | Unrealized Appreciation (Depreciation) |
| |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Morgan Stanley and Co. International PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| Standard Chartered Bank PLC | | | | | |
| | | | | | |
| | | | | | |
| |
Total Forward Foreign Currency Contracts | |
Open Centrally Cleared Credit Default Swap Agreements(a) |
| | | | | | | Upfront
Payments Paid
(Received) | | Unrealized
Appreciation
(Depreciation) |
|
Markit iTraxx Europe Crossover Index, Series 42, Version 1 | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | |
|
Brazil Government International Bonds | | | | | | | | | | |
Markit CDX Emerging Markets Index, Series 42, Version 1 | | | | | | | | | | |
Columbia Government International Bonds | | | | | | | | | | |
| | | | | | | | | | |
South Africa Government International Bonds | | | | | | | | | | |
| | | | | | | | |
Total Centrally Cleared Credit Default Swap Agreements | | | | | | |
| Centrally cleared swap agreements collateralized by $9,693,836 cash held with Counterparties. |
| Implied credit spreads represent the current level, as of October 31, 2024, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13
Invesco International Bond Fund
Open Centrally Cleared Interest Rate Swap Agreements(a) |
| | | | | | | Upfront
Payments
Paid
(Received) | | Unrealized
Appreciation
(Depreciation) |
|
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | |
|
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14
Invesco International Bond Fund
Open Centrally Cleared Interest Rate Swap Agreements(a)—(continued) |
| | | | | | | Upfront Payments Paid (Received) | | Unrealized Appreciation (Depreciation) |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | |
Total Centrally Cleared Interest Rate Swap Agreements | | | | | | |
| Centrally cleared swap agreements collateralized by $9,693,836 cash held with Counterparties. |
Open Over-The-Counter Credit Default Swap Agreements(a) |
| | | | | | | | Upfront
Payments Paid
(Received) | | Unrealized
Appreciation
(Depreciation) |
|
| Assicurazioni Generali S.p.A. | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit iTraxx Europe CrossoverIndex, Series 40, Version 2 | | | | | | | | | | |
| | | | | | | |
|
| Assicurazioni Generali S.p.A. | | | | | | | | | | |
Goldman Sachs International | Markit iTraxx Europe Crossover Index, Series 32, Version 6 | | | | | | | | | | |
Goldman Sachs International | Markit CDX North America High Yield Index, Series 37, Version 1 | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit CDX North America High Yield Index, Series 39, Version 1 | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit iTraxx Europe CrossoverIndex, Series 42, Version 1 | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | Markit iTraxx Europe CrossoverIndex, Series 42, Version 1 | | | | | | | | | | |
| | | | | | | |
Total Over-The-Counter Credit Default Swap Agreements | | | | | | | |
| Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $39,695,000. |
| Implied credit spreads represent the current level, as of October 31, 2024, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15
Invesco International Bond Fund
|
| |
| |
| |
| —Brazil Ceptip DI Interbank Deposit Rate |
| |
| |
| |
| |
| |
| —Colombia IBR Overnight Nominal Interbank Reference Rate |
| |
| |
| |
| —Euro Interbank Offered Rate |
| —Financial Benchmarks India Private Ltd. |
| |
| |
| |
| |
| —Johannesburg Interbank Average Rate |
| |
| |
| —Mumbai Interbank Offered Rate |
| |
| |
| |
| |
| |
| —Prague Interbank Offerred Rate |
| |
| —Secured Overnight Financing Rate |
| —Sterling Overnight Index Average |
| —Singapore Overnight Rate Average |
| |
| —Interbank Equilibrium Interest Rate |
| —Tokyo Overnight Average Rate |
| |
| |
| |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16
Invesco International Bond Fund
Consolidated Statement of Assets and Liabilities
| |
Investments in unaffiliated securities, at value
(Cost $1,044,675,011)* | |
Investments in affiliated money market funds, at value (Cost $15,032,261) | |
| |
Variation margin receivable — futures contracts | |
| |
Unrealized appreciation on swap agreements — OTC | |
Premiums paid on swap agreements — OTC | |
Unrealized appreciation on forward foreign currency contracts outstanding | |
| |
Cash collateral — centrally cleared swap agreements | |
Cash collateral — OTC Derivatives | |
| |
Foreign currencies, at value (Cost $5,421,364) | |
| |
| |
| |
| |
| |
Investment for trustee deferred compensation and retirement plans | |
| |
| |
| |
| |
Options written, at value (premiums received $58,255,382) | |
Variation margin payable — centrally cleared swap agreements | |
Unrealized depreciation on forward foreign currency contracts outstanding | |
| |
Unrealized depreciation on swap agreements—OTC | |
| |
| |
| |
| |
| |
Collateral upon return of securities loaned | |
Accrued fees to affiliates | |
Accrued trustees’ and officers’ fees and benefits | |
Accrued other operating expenses | |
Trustee deferred compensation and retirement plans | |
Collateral due to broker - centrally cleared swap agreements | |
| |
Net assets applicable to shares outstanding | |
| |
Shares of beneficial interest | |
Distributable earnings (loss) | |
| |
|
| |
| |
| |
| |
| |
| |
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |
| |
| |
| |
| |
| |
| |
Net asset value per share | |
Maximum offering price per share
(Net asset value of $4.28 ÷ 95.75%) | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| At October 31, 2024, securities with an aggregate value of $14,590,104 were on loan to brokers. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17
Invesco International Bond Fund
Consolidated Statement of Operations
For the year ended October 31, 2024
| |
Interest (net of foreign withholding taxes of $929,994) | |
Dividends (net of foreign withholding taxes of $156,448) | |
Dividends from affiliated money market funds (includes net securities lending income of $22,899) | |
| |
| |
| |
Administrative services fees | |
| |
| |
| |
| |
| |
Transfer agent fees — A, C, R and Y | |
| |
| |
Trustees’ and officers’ fees and benefits | |
Registration and filing fees | |
| |
Professional services fees | |
| |
| |
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | |
| |
| |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Unaffiliated investment securities (net of foreign taxes of $159,163) | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
| |
| |
| |
Change in net unrealized appreciation (depreciation) of: | |
Unaffiliated investment securities | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
| |
| |
| |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18
Invesco International Bond Fund
Consolidated Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | |
| | |
| | |
| | |
Change in net unrealized appreciation | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders from distributable earnings: | | |
| | |
| | |
| | |
| | |
| | |
| | |
Total distributions from distributable earnings | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Net increase (decrease) in net assets resulting from share transactions | | |
Net increase (decrease) in net assets | | |
| | |
| | |
| | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
19
Invesco International Bond Fund
Consolidated Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Net asset
value,
beginning
of period | | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | | | Net asset
value, end
of period | | 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 | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Calculated using average shares outstanding. |
| 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. |
| Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for the years ended October 31, 2024 and 2023, respectively. |
| Ratios include interest, facilities and maintenance fees of 0.15% for the year ended October 31, 2022. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
20
Invesco International Bond Fund
Notes to Consolidated Financial Statements
NOTE 1—Significant Accounting Policies
Invesco International Bond Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco International Bond Fund (Cayman) Ltd. (the “Subsidiary”), a wholly-owned and controlled subsidiary by the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to Regulation S securities primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in Regulation S securities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A.
Security Valuations – Securities, including restricted securities, are valued according to the following policy.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
21
Invesco International Bond Fund
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.
Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Distributions – Distributions from net investment income, if any, are declared 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 consolidated financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.
Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation.
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H.
Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. 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.
Treasury Inflation-Protected Securities — The Fund may invest in Treasury Inflation-Protected Securities (“TIPS”). TIPS are fixed income securities whose
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Invesco International Bond Fund
principal value is periodically adjusted to the rate of inflation. The principal value of TIPS will be adjusted upward or downward, and any increase or decrease in the principal amount of TIPS will be included as interest income in the Consolidated Statement of Operations, even though investors do not receive their principal until maturity.
J.
Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, there were no securities lending transactions with the Adviser. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations.
K.
Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
L.
Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
M.
Futures Contracts — The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to
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Invesco International Bond Fund
liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.
N.
Call Options Purchased and Written – The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Consolidated Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Consolidated Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
O.
Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Consolidated Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
P.
Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer "par value" or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add
24
Invesco International Bond Fund
leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of October 31, 2024, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
Q.
Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.
R.
Collateral —To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions.
S.
Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities tend to be very volatile.
The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
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. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
By investing in the Subsidiary, the Fund is indirectly exposed to risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act, and, except as otherwise noted in the Fund’s prospectus, is not subject to the investor protections of the 1940 Act. Changes in the laws of the
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Invesco International Bond Fund
United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or the Subsidiary to operate as intended, and could negatively affect the Fund and its shareholders.
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the risk that a borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund’s income. Mortgage- and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect the value of mortgage-backed securities and could result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities at the time or price it desires.
Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.64%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least February 28, 2026, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.04%, 1.79%, 1.29%, 0.79%, 0.79%, and 0.79%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waivers and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expenses on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate February 28, 2026. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $20,875 and reimbursed class level expenses of $543,476, $19,642, $53,665, $608,954, $685 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of
26
Invesco International Bond Fund
the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $12,073 in front-end sales commissions from the sale of Class A shares and $318 and $565 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| | | | |
Investments in Securities | | | | |
Non-U.S. Dollar Denominated Bonds & Notes | | | | |
U.S. Dollar Denominated Bonds & Notes | | | | |
| | | | |
| | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
Other Investments - Assets* | | | | |
| | | | |
Forward Foreign Currency Contracts | | | | |
| | | | |
| | | | |
Other Investments - Liabilities* | | | | |
| | | | |
Forward Foreign Currency Contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Options written are shown at value. |
A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the reporting period in relation to net assets.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the year ended October 31, 2024:
| | | | Accrued
Discounts/
Premiums | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
| | | | | | | | | |
U.S. Dollar Denominated Bonds & Notes | | | | | | | | | |
| | | | | | | | | |
27
Invesco International Bond Fund
The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as Level 3 at period end. The table does not include a Level 3 investment valued by applying a discount to the last vendor price in the amount of $700,700.
| | | | Range of
Unobservable
Inputs | Weighted Average of
Unobservable Inputs
Based on Fair Value | |
| | Restructured Allocated Value | | | | |
NOTE 4—Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| |
| | | | |
Unrealized appreciation on futures contracts —Exchange-Traded(a) | | | | |
Unrealized appreciation on swap agreements — Centrally Cleared(a) | | | | |
Unrealized appreciation on forward foreign currency contracts outstanding | | | | |
Unrealized appreciation on swap agreements — OTC | | | | |
Options purchased, at value — OTC(b) | | | | |
| | | | |
Derivatives not subject to master netting agreements | | | | |
Total Derivative Assets subject to master netting agreements | | | | |
| |
| | | | |
Unrealized depreciation on futures contracts —Exchange-Traded(a) | | | | |
Unrealized depreciation on swap agreements — Centrally Cleared(a) | | | | |
Unrealized depreciation on forward foreign currency contracts outstanding | | | | |
Unrealized depreciation on swap agreements — OTC | | | | |
Options written, at value — OTC | | | | |
Total Derivative Liabilities | | | | |
Derivatives not subject to master netting agreements | | | | |
Total Derivative Liabilities subject to master netting agreements | | | | |
| The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
| Options purchased, at value as reported in the Consolidated Schedule of Investments. |
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Invesco International Bond Fund
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| Financial Derivative Assets | Financial Derivative Liabilities | | Collateral
(Received)/Pledged | |
| Forward
Foreign
Currency
Contracts | | | | Forward
Foreign
Currency
Contracts | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Goldman Sachs International | | | | | | | | | | | | |
| | | | | | | | | | | | |
J.P. Morgan Chase Bank, N.A. | | | | | | | | | | | | |
Merrill Lynch International | | | | | | | | | | | | |
Morgan Stanley and Co. International PLC | | | | | | | | | | | | |
| | | | | | | | | | | | |
Standard Chartered Bank PLC | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on
Consolidated Statement of Operations |
| | | | |
| | | | |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Change in Net Unrealized Appreciation (Depreciation): | | | | |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities. |
The table below summarizes the average notional value of derivatives held during the period.
| Forward
Foreign Currency
Contracts | | | Foreign
Currency
Options
Purchased | | Foreign
Currency
Options
Written | |
| | | | | | | |
29
Invesco International Bond Fund
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $44,052.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | |
| | |
| | |
| | |
| Includes short-term capital gain distributions, if any. |
Tax Components of Net Assets at Period-End: |
| |
Net unrealized appreciation (depreciation) — investments | |
Net unrealized appreciation (depreciation) — foreign currencies | |
Temporary book/tax differences | |
Capital loss carryforward | |
Shares of beneficial interest | |
| |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to amortization and accretion on debt securities, derivative instruments and straddles.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
Capital Loss Carryforward* |
| | | |
Not subject to expiration | | | |
*
Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $924,247,356 and $1,041,928,464, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
Aggregate unrealized appreciation of investments | |
Aggregate unrealized (depreciation) of investments | |
Net unrealized appreciation (depreciation) of investments | |
30
Invesco International Bond Fund
Cost of investments for tax purposes is $1,000,788,101.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions, return of capital distributions and derivative instruments, on October 31, 2024, undistributed net investment income was increased by $4,146,194, undistributed net realized gain (loss) was increased by $42,240,723 and shares of beneficial interest was decreased by $46,386,917. This reclassification had no effect on the net assets of the Fund.
NOTE 11—Share Information
| Summary of Share Activity |
| | Year ended
October 31, 2023 |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Issued as reinvestment of dividends: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Automatic conversion of Class C shares to Class A shares: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in share activity | | | | |
| There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 41% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
31
Invesco International Bond Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco International Bond Fund
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of Invesco International Bond Fund and its subsidiary (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related consolidated statement of operations for the year ended October 31, 2024, the consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the consolidated financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
32
Invesco International Bond Fund
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco International Bond Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s).. The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis, and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Custom Invesco International Bond Index (Index). The Board noted that performance of Class A shares of the Fund was in the first quintile of its performance universe for the one year period and the third quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was reasonably comparable to the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. The Board considered that the Fund was
33
Invesco International Bond Fund
created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and the same as, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s contractual management fees and total expense ratio were each in the fourth quintile of its expense group and discussed with management the reasons for such relative contractual management fees and total expenses.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally
operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage
transactions through “soft dollar” arrangements to any significant degree.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
34
Invesco International Bond Fund
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
Federal and State Income Tax | |
Qualified Dividend Income* | |
Corporate Dividends Received Deduction* | |
U.S. Treasury Obligations* | |
Qualified Business Income* | |
Business Interest Income* | |
*
The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
35
Invesco International Bond Fund
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
36
Invesco International Bond Fund
SEC file number(s): 811-05426 and 033-19338
Invesco Distributors, Inc.
O-IBD-NCSR
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Macro Allocation Strategy Fund
Nasdaq:
A: GMSDX ■ C: GMSEX ■ R: GMSJX ■ Y: GMSHX ■ R5: GMSKX ■ R6: GMSLX
Consolidated Schedule of Investments
October 31, 2024
| | Interest
Rate | Maturity
Date | Principal
Amount
(000) | Value |
| U.S. Treasury Securities–29.95% | | |
| U.S. Treasury Floating Rate Notes–29.95% |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.25%)(a) | 4.74% | 01/31/2026 | | $ 23,030 | $ 23,041,111 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.15%)(a) | 4.64% | 04/30/2026 | | 24,000 | 23,982,257 |
| Total U.S. Treasury Securities (Cost $47,030,000) | | 47,023,368 |
| | | | Shares | |
| Exchange-Traded Funds–4.14% |
| Invesco Short Term Treasury ETF(b) (Cost $6,489,480) | | | | 61,500 | 6,490,710 |
|
| Money Market Funds–56.39% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(b)(c) | | | | 35,973,122 | 35,973,122 |
| Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio (Ireland), Agency Class, 5.04%(b)(c) | | | | 18,010,972 | 18,010,972 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(b)(c) | | | | 34,561,185 | 34,561,185 |
| Total Money Market Funds (Cost $88,545,279) | | 88,545,279 |
|
| Options Purchased–0.21% |
| (Cost $669,632)(d) | | 334,016 |
| TOTAL INVESTMENTS IN SECURITIES–90.69% (Cost $142,734,391) | | 142,393,373 |
| OTHER ASSETS LESS LIABILITIES–9.31% | | 14,620,225 |
| NET ASSETS–100.00% | | $157,013,598 |
Investment Abbreviations:
| ETF | – Exchange-Traded Fund |
Notes to Consolidated Schedule of Investments:
| (a) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2024. |
| (b) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Invesco Short Term Treasury ETF | $6,490,710 | $- | $- | $- | $- | $6,490,710 | $334,616 |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | 35,477,548 | 32,441,639 | (31,946,065) | - | - | 35,973,122 | 1,897,242 |
| Invesco Liquid Assets Portfolio, Institutional Class | 13,036,207 | 18,699,464 | (31,735,099) | (4,106) | 3,534 | - | 539,661 |
| Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Agency Class | 13,384,742 | 48,024,749 | (43,398,519) | - | - | 18,010,972 | 857,379 |
| Invesco Treasury Portfolio, Institutional Class | 20,605,197 | 55,473,419 | (41,517,431) | - | - | 34,561,185 | 1,322,401 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | - | 109,671,687 | (109,671,687) | - | - | - | 43,356* |
| Invesco Private Prime Fund | - | 237,372,671 | (237,373,026) | - | 355 | - | 117,067* |
| Total | $88,994,404 | $501,683,629 | $(495,641,827) | $(4,106) | $3,889 | $95,035,989 | $5,111,722 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (c) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (d) | The table below details options purchased. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Macro Allocation Strategy Fund |
| Open Exchange-Traded Index Options Purchased(a) |
| Description | Type of
Contract | Expiration
Date | Number of
Contracts | Exercise
Price | Notional
Value* | Value |
| Equity Risk |
| S&P 500 Mini Index | Put | 11/15/2024 | 21 | USD | 429.00 | USD | 900,900 | $557 |
| S&P 500 Mini Index | Put | 12/20/2024 | 21 | USD | 465.00 | USD | 976,500 | 3,024 |
| S&P 500 Mini Index | Put | 01/17/2025 | 21 | USD | 480.00 | USD | 1,008,000 | 6,069 |
| S&P 500 Mini Index | Put | 02/21/2025 | 21 | USD | 493.00 | USD | 1,035,300 | 10,521 |
| S&P 500 Mini Index | Put | 03/21/2025 | 21 | USD | 520.00 | USD | 1,092,000 | 18,816 |
| S&P 500 Mini Index | Put | 05/16/2025 | 21 | USD | 513.00 | USD | 1,077,300 | 22,292 |
| S&P 500 Mini Index | Put | 04/17/2025 | 21 | USD | 535.00 | USD | 1,123,500 | 26,240 |
| S&P 500 Mini Index | Put | 06/20/2025 | 21 | USD | 540.00 | USD | 1,134,000 | 34,629 |
| S&P 500 Mini Index | Put | 08/15/2025 | 21 | USD | 552.00 | USD | 1,159,200 | 45,234 |
| S&P 500 Mini Index | Put | 07/18/2025 | 21 | USD | 558.00 | USD | 1,171,800 | 45,391 |
| S&P 500 Mini Index | Put | 09/19/2025 | 21 | USD | 565.00 | USD | 1,186,500 | 54,978 |
| S&P 500 Mini Index | Put | 10/17/2025 | 21 | USD | 580.00 | USD | 1,218,000 | 66,265 |
| Total Index Options Purchased | | | | | | $334,016 |
| (a) | Open Exchange-Traded Index Options Purchased collateralized by $4,095,000 cash held with Morgan Stanley & Co. |
| * | Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier. |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Currency Risk |
| British Pound | 145 | December-2024 | $11,673,406 | $(158,627) | $(158,627) |
| Equity Risk |
| Amsterdam Index | 20 | November-2024 | 3,798,031 | (95,058) | (95,058) |
| E-Mini Russell 2000 Index | 45 | December-2024 | 4,969,350 | (44,805) | (44,805) |
| E-Mini S&P 500 Index | 17 | December-2024 | 4,877,725 | (52,007) | (52,007) |
| Eurex DAX Index | 14 | December-2024 | 7,291,405 | 252 | 252 |
| EURO STOXX 50 Index | 67 | December-2024 | 3,522,983 | (70,608) | (70,608) |
| FTSE 100 Index | 43 | December-2024 | 4,506,128 | (96,172) | (96,172) |
| FTSE MIB Index | 32 | December-2024 | 5,930,586 | 24,784 | 24,784 |
| Hang Seng Index | 32 | November-2024 | 4,188,266 | (30,368) | (30,368) |
| IBEX 35 Index | 56 | November-2024 | 7,095,445 | (182,023) | (182,023) |
| MSCI Emerging Markets Index | 103 | December-2024 | 5,801,475 | (16,441) | (16,441) |
| OMS Stockholm 30 Index | 212 | November-2024 | 5,042,550 | (94,691) | (94,691) |
| S&P/TSX 60 Index | 40 | December-2024 | 8,315,725 | 56,184 | 56,184 |
| SPI 200 Index | 67 | December-2024 | 9,005,933 | (57,962) | (57,962) |
| Tokyo Stock Price Index | 14 | December-2024 | 2,482,756 | (2,890) | (2,890) |
| Subtotal | (661,805) | (661,805) |
| Interest Rate Risk |
| Euro-BTP | 98 | December-2024 | 12,743,969 | (75,447) | (75,447) |
| Euro-Schatz | 17 | December-2024 | 1,970,111 | (6,854) | (6,854) |
| Subtotal | (82,301) | (82,301) |
| Subtotal—Long Futures Contracts | (902,733) | (902,733) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Macro Allocation Strategy Fund |
| Open Futures Contracts(a)—(continued) |
| Short Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Currency Risk |
| Australian Dollar | 106 | December-2024 | $(6,972,150) | $19,672 | $19,672 |
| Canadian Dollar | 161 | December-2024 | (11,592,000) | 159,604 | 159,604 |
| Euro | 86 | December-2024 | (11,706,750) | (4,330) | (4,330) |
| Japanese Yen | 97 | December-2024 | (8,018,262) | 130,603 | 130,603 |
| New Zealand Dollar | 113 | December-2024 | (6,746,665) | 70,356 | 70,356 |
| Swiss Franc | 36 | December-2024 | (5,232,150) | (3,319) | (3,319) |
| Subtotal | 372,586 | 372,586 |
| Equity Risk |
| CAC 40 Index | 41 | November-2024 | (3,282,840) | 52,730 | 52,730 |
| Interest Rate Risk |
| Australia 10 Year Bonds | 170 | December-2024 | (12,512,834) | 217,606 | 217,606 |
| Canada 10 Year Bonds | 27 | December-2024 | (2,365,591) | (743) | (743) |
| Euro-Bobl | 39 | December-2024 | (5,012,188) | 5,489 | 5,489 |
| Euro-Bund | 32 | December-2024 | (4,587,694) | 31,306 | 31,306 |
| Euro-Buxl | 25 | December-2024 | (3,599,364) | (23,036) | (23,036) |
| Euro-OAT | 75 | December-2024 | (10,169,917) | 68,155 | 68,155 |
| Long Gilt | 73 | December-2024 | (8,851,976) | 228,243 | 228,243 |
| SFE 3 Year Australian Bond | 100 | December-2024 | (6,947,725) | 21,133 | 21,133 |
| U.S. Treasury 2 Year Notes | 52 | December-2024 | (10,709,156) | 24,807 | 24,807 |
| U.S. Treasury 5 Year Notes | 82 | December-2024 | (8,793,219) | 54,855 | 54,855 |
| U.S. Treasury 10 Year Notes | 78 | December-2024 | (8,616,563) | 85,425 | 85,425 |
| U.S. Treasury Long Bonds | 40 | December-2024 | (4,718,750) | 32,914 | 32,914 |
| Subtotal | 746,154 | 746,154 |
| Subtotal—Short Futures Contracts | 1,171,470 | 1,171,470 |
| Total Futures Contracts | $268,737 | $268,737 |
| (a) | Futures contracts collateralized by $9,292,019 cash held with Goldman Sachs International, the futures commission merchant. |
| Open Over-The-Counter Total Return Swap Agreements(a) |
| Counterparty | Pay/
Receive | Reference Entity(b) | Fixed
Rate | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk | | | | | | | | | | | |
| Barclays Bank PLC | Receive | Barclays Commodity Strategy 1756 Excess Return Index | 0.42% | Monthly | 51,200 | March—2025 | USD | 11,510,139 | $— | $22,835 | $22,835 |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Gasoil Index | 0.04 | Monthly | 19,850 | July—2025 | USD | 2,444,841 | 124,699 | 144,062 | 19,363 |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Gasoline Index | 0.06 | Monthly | 12,670 | July—2025 | USD | 2,496,233 | 166,574 | 186,985 | 20,411 |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Heating Oil Index | 0.04 | Monthly | 20,950 | July—2025 | USD | 2,480,529 | 30,903 | 127,732 | 96,829 |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Wheat Index | 0.04 | Monthly | 210,000 | June—2025 | USD | 3,176,828 | 22,964 | 152,166 | 129,202 |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Silver Index | 0.08 | Monthly | 23,900 | March—2025 | USD | 3,458,019 | 25,276 | 112,533 | 87,257 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Macro Allocation Strategy Fund |
| Open Over-The-Counter Total Return Swap Agreements(a)—(continued) |
| Counterparty | Pay/
Receive | Reference Entity(b) | Fixed
Rate | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Citibank, N.A. | Pay | CITI Commodities Benchmark (Regular Roll) Mono Index Soybean Oil | 0.06% | Monthly | 13,950 | December—2024 | USD | 3,604,143 | $(2,804) | $12,611 | $15,415 |
| Macquarie Bank Ltd. | Receive | Macquarie F6 Carry Alpha Index | 0.32 | Monthly | 136,600 | April—2025 | USD | 41,613,141 | — | 318,660 | 318,660 |
| Royal Bank of Canada | Pay | RBC Commodity CNE0 Excess Return Custom Index | 0.06 | Monthly | 190,200 | November—2024 | USD | 4,048,559 | — | 0 | 0 |
| Royal Bank of Canada | Pay | RBC Commodity NGE0 Excess Return Custom Index | 0.05 | Monthly | 75,000,000 | November—2024 | USD | 1,425,000 | — | 0 | 0 |
| Royal Bank of Canada | Pay | RBC Commodity SME0 Excess Return Custom Index | 0.05 | Monthly | 4,260 | October—2025 | USD | 2,789,275 | — | 0 | 0 |
| Royal Bank of Canada | Receive | RBC Gold E0 Excess Return Index | 0.06 | Monthly | 13,690 | February—2025 | USD | 7,874,467 | — | 0 | 0 |
| Subtotal — Appreciation | | | | | 367,612 | 1,077,584 | 709,972 |
| Commodity Risk | | | | | | | | | | | |
| Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Brent Crude Oil Index | 0.04 | Monthly | 24,850 | October—2025 | USD | 2,879,728 | 46,774 | 39,004 | (7,770) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Aluminum Index | 0.10 | Monthly | 40,000 | September—2025 | USD | 3,533,596 | (630) | (25,644) | (25,014) |
| Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Copper Index | 0.08 | Monthly | 16,500 | September—2025 | USD | 2,906,731 | (4,326) | (91,357) | (87,031) |
| Citibank, N.A. | Pay | CITI Commodities Benchmark (Regular Roll) Mono Index Soybean Oil | 0.06 | Monthly | 48,300 | November—2024 | USD | 3,285,609 | (14,729) | (210,346) | (195,617) |
| Royal Bank of Canada | Pay | RBC Commodity CLE0 Excess Return Custom Index | 0.05 | Monthly | 53,000 | October—2025 | USD | 2,591,297 | 41,177 | 23,739 | (17,438) |
| Subtotal — Depreciation | | | | | 68,266 | (264,604) | (332,870) |
| Total — Total Return Swap Agreements | | | | | $435,878 | $812,980 | $377,102 |
| (a) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| (b) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Macro Allocation Strategy Fund |
| Reference Entity Components |
| Reference Entity | Underlying Components | Percentage |
| Barclays Commodity Strategy 1756 Excess Return Index | | |
| | Long Futures Contracts | |
| | Aluminum | 4.38% |
| | Brent Crude | 7.01% |
| | Coffee "C" | 3.77% |
| | Copper | 5.75% |
| | Corn | 4.70% |
| | Cotton | 1.30% |
| | Gold | 17.22% |
| | Heating Oil | 1.82% |
| | KC HRW Wheat | 1.61% |
| | Lean Hogs | 1.82% |
| | Live Cattle | 3.50% |
| | Low Sulphur GasOil | 2.40% |
| | Malaysian Palm Oil Futures | 0.80% |
| | NaturalGas | 8.86% |
| | Nickel | 2.59% |
| | RBOB Gasoline | 2.01% |
| | Silver | 5.60% |
| | Soybean Meal | 2.77% |
| | Soybean Oil | 2.80% |
| | Soybeans | 4.40% |
| | Sugar No.11 | 2.72% |
| | Wheat | 2.52% |
| | WTI Crude | 6.83% |
| | Zinc | 2.82% |
| | Total | 100.00% |
| Canadian Imperial Bank of Commerce Aluminum Index | | |
| | Long Futures Contracts | |
| | Aluminum | 100.00% |
| Canadian Imperial Bank of Commerce Brent Crude Oil Index | | |
| | Long Futures Contracts | |
| | Brent Crude Oil | 100.00% |
| Canadian Imperial Bank of Commerce Copper Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| Canadian Imperial Bank of Commerce Gasoil Index | | |
| | Long Futures Contracts | |
| | Gas Oil | 100.00% |
| Canadian Imperial Bank of Commerce Gasoline Index | | |
| | Long Futures Contracts | |
| | Gasoline | 100.00% |
| Canadian Imperial Bank of Commerce Heating Oil Index | | |
| | Long Futures Contracts | |
| | Heating Oil | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Macro Allocation Strategy Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| Canadian Imperial Bank of Commerce Silver Index | | |
| | Long Futures Contracts | |
| | Silver | 100.00% |
| Canadian Imperial Bank of Commerce Wheat Index | | |
| | Long Futures Contracts | |
| | Wheat | 100.00% |
| CITI Commodities Benchmark (Regular Roll) Mono Index Soybean Oil | | |
| | Long Futures Contracts | |
| | Soybean Oil | 100.00% |
| Macquarie F6 Carry Alpha Index | | |
| | Long Futures Contracts | |
| | Aluminum | 6.15% |
| | Coffee ’C’ | 5.11% |
| | Copper | 7.92% |
| | Corn | 6.89% |
| | Cotton No. 2 | 1.88% |
| | Heating Oil | 2.35% |
| | KC HRW Wheat | 2.26% |
| | Lean Hogs | 3.18% |
| | Live Cattle | 4.70% |
| | Low Sulphur Gas Oil | 3.12% |
| | Malaysian Palm Oil Futures | 1.10% |
| | Natural Gas | 15.91% |
| | Nickel | 3.28% |
| | RBOB Gasoline | 2.83% |
| | Soybean Meal | 3.84% |
| | Soybean Oil | 3.98% |
| | Soybeans | 6.21% |
| | Sugar No. 11 | 3.34% |
| | Wheat | 3.58% |
| | WTI Crude | 8.54% |
| | Zinc | 3.83% |
| | Total | 100.00% |
| RBC Commodity CLE0 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | WTI Crude Oil | 100.00% |
| RBC Commodity CNE0 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Corn | 100.00% |
| RBC Commodity NGE0 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Natural Gas | 100.00% |
| RBC Commodity SME0 Excess Return Custom Index | | |
| | Long Futures Contracts | |
| | Soybean Meal | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Macro Allocation Strategy Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| RBC Gold E0 Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Macro Allocation Strategy Fund |
Consolidated Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $47,699,632) | $47,357,384 |
Investments in affiliates, at value
(Cost $95,034,759) | 95,035,989 |
| Other investments: | |
| Swaps receivable — OTC | 988,342 |
| Unrealized appreciation on swap agreements — OTC | 709,972 |
| Premiums paid on swap agreements — OTC | 435,878 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 9,292,019 |
| Cash collateral — exchange-traded options contracts | 4,095,000 |
| Foreign currencies, at value (Cost $639) | 638 |
| Receivable for: | |
| Dividends | 371,892 |
| Interest | 6,217 |
| Investment for trustee deferred compensation and retirement plans | 27,712 |
| Other assets | 55,818 |
| Total assets | 158,376,861 |
| Liabilities: | |
| Other investments: | |
| Variation margin payable — futures contracts | 716,789 |
| Swaps payable — OTC | 189,564 |
| Unrealized depreciation on swap agreements—OTC | 332,870 |
| Payable for: | |
| Accrued fees to affiliates | 19,973 |
| Accrued trustees’ and officers’ fees and benefits | 1,248 |
| Accrued other operating expenses | 72,654 |
| Trustee deferred compensation and retirement plans | 30,165 |
| Total liabilities | 1,363,263 |
| Net assets applicable to shares outstanding | $157,013,598 |
| Net assets consist of: | |
| Shares of beneficial interest | $161,989,977 |
| Distributable earnings (loss) | (4,976,379) |
| | $157,013,598 |
| Net Assets: |
| Class A | $1,145,641 |
| Class C | $95,262 |
| Class R | $65,515 |
| Class Y | $3,199,364 |
| Class R5 | $7,317 |
| Class R6 | $152,500,499 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 150,966 |
| Class C | 12,825 |
| Class R | 8,667 |
| Class Y | 416,140 |
| Class R5 | 952 |
| Class R6 | 19,872,362 |
| Class A: | |
| Net asset value per share | $7.59 |
Maximum offering price per share
(Net asset value of $7.59 ÷ 94.50%) | $8.03 |
| Class C: | |
| Net asset value and offering price per share | $7.43 |
| Class R: | |
| Net asset value and offering price per share | $7.56 |
| Class Y: | |
| Net asset value and offering price per share | $7.69 |
| Class R5: | |
| Net asset value and offering price per share | $7.69 |
| Class R6: | |
| Net asset value and offering price per share | $7.67 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Macro Allocation Strategy Fund |
Consolidated Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $3,009,154 |
| Dividends from affiliates (includes net securities lending income of $10,883) | 4,962,182 |
| Total investment income | 7,971,336 |
| Expenses: | |
| Advisory fees | 1,727,714 |
| Administrative services fees | 22,724 |
| Custodian fees | 37,322 |
| Distribution fees: | |
| Class A | 3,091 |
| Class C | 1,229 |
| Class R | 399 |
| Transfer agent fees — A, C, R and Y | 7,783 |
| Transfer agent fees — R5 | 2 |
| Transfer agent fees — R6 | 45,808 |
| Trustees’ and officers’ fees and benefits | 23,444 |
| Registration and filing fees | 78,096 |
| Reports to shareholders | 10,174 |
| Professional services fees | 95,647 |
| Other | 14,763 |
| Total expenses | 2,068,196 |
| Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (277,640) |
| Net expenses | 1,790,556 |
| Net investment income | 6,180,780 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | (1,186,710) |
| Affiliated investment securities | 3,889 |
| Foreign currencies | (119,814) |
| Futures contracts | (6,749,313) |
| Swap agreements | 9,010,416 |
| | 958,468 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | (600,462) |
| Affiliated investment securities | (4,106) |
| Foreign currencies | 5,551 |
| Futures contracts | (2,073,227) |
| Swap agreements | 1,449,979 |
| | (1,222,265) |
| Net realized and unrealized gain (loss) | (263,797) |
| Net increase in net assets resulting from operations | $5,916,983 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Macro Allocation Strategy Fund |
Consolidated Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $6,180,780 | $5,268,152 |
| Net realized gain (loss) | 958,468 | (6,663,103) |
| Change in net unrealized appreciation (depreciation) | (1,222,265) | (713,074) |
| Net increase (decrease) in net assets resulting from operations | 5,916,983 | (2,108,025) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (17,453) | — |
| Class C | (1,123) | — |
| Class R | (912) | — |
| Class Y | (59,073) | — |
| Class R5 | (117) | — |
| Class R6 | (2,361,332) | — |
| Total distributions from distributable earnings | (2,440,010) | — |
| Share transactions–net: | | |
| Class A | (159,087) | (109,285) |
| Class C | (86,277) | (14,558) |
| Class R | (19,012) | (42,383) |
| Class Y | (346,113) | (756,813) |
| Class R6 | 4,676,732 | (3,614,708) |
| Net increase (decrease) in net assets resulting from share transactions | 4,066,243 | (4,537,747) |
| Net increase (decrease) in net assets | 7,543,216 | (6,645,772) |
| Net assets: | | |
| Beginning of year | 149,470,382 | 156,116,154 |
| End of year | $157,013,598 | $149,470,382 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Macro Allocation Strategy Fund |
Consolidated Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $7.42 | $0.28 | $(0.01) | $0.27 | $(0.10) | $— | $(0.10) | $7.59 | 3.71% | $1,146 | 1.39% | 1.69% | 3.69% | 76% |
| Year ended 10/31/23 | 7.54 | 0.24 | (0.36) | (0.12) | — | — | — | 7.42 | (1.59) | 1,278 | 1.39 | 1.67 | 3.17 | 20 |
| Year ended 10/31/22 | 9.16 | (0.05) | (0.76) | (0.81) | (0.49) | (0.32) | (0.81) | 7.54 | (9.88) | 1,411 | 1.41 | 1.58 | (0.67) | 104 |
| Year ended 10/31/21 | 8.18 | (0.12) | 1.10 | 0.98 | — | — | — | 9.16 | 11.98 | 1,982 | 1.42 | 1.62 | (1.36) | 86 |
| Year ended 10/31/20 | 9.47 | (0.06) | (0.56) | (0.62) | (0.67) | — | (0.67) | 8.18 | (7.02) | 2,111 | 1.38 | 1.85 | (0.75) | 120 |
| Class C |
| Year ended 10/31/24 | 7.26 | 0.22 | (0.01) | 0.21 | (0.04) | — | (0.04) | 7.43 | 2.97 | 95 | 2.14 | 2.44 | 2.94 | 76 |
| Year ended 10/31/23 | 7.43 | 0.18 | (0.35) | (0.17) | — | — | — | 7.26 | (2.29) | 178 | 2.14 | 2.42 | 2.42 | 20 |
| Year ended 10/31/22 | 8.98 | (0.11) | (0.77) | (0.88) | (0.35) | (0.32) | (0.67) | 7.43 | (10.66) | 197 | 2.16 | 2.33 | (1.42) | 104 |
| Year ended 10/31/21 | 8.08 | (0.19) | 1.09 | 0.90 | — | — | — | 8.98 | 11.14 | 364 | 2.17 | 2.37 | (2.11) | 86 |
| Year ended 10/31/20 | 9.30 | (0.13) | (0.54) | (0.67) | (0.55) | — | (0.55) | 8.08 | (7.61) | 828 | 2.13 | 2.60 | (1.50) | 120 |
| Class R |
| Year ended 10/31/24 | 7.38 | 0.26 | 0.00 | 0.26 | (0.08) | — | (0.08) | 7.56 | 3.57 | 66 | 1.64 | 1.94 | 3.44 | 76 |
| Year ended 10/31/23 | 7.52 | 0.22 | (0.36) | (0.14) | — | — | — | 7.38 | (1.86) | 82 | 1.64 | 1.92 | 2.92 | 20 |
| Year ended 10/31/22 | 9.12 | (0.07) | (0.76) | (0.83) | (0.45) | (0.32) | (0.77) | 7.52 | (10.11) | 127 | 1.66 | 1.83 | (0.92) | 104 |
| Year ended 10/31/21 | 8.17 | (0.15) | 1.10 | 0.95 | — | — | — | 9.12 | 11.63 | 151 | 1.67 | 1.87 | (1.61) | 86 |
| Year ended 10/31/20 | 9.44 | (0.08) | (0.56) | (0.64) | (0.63) | — | (0.63) | 8.17 | (7.22) | 98 | 1.63 | 2.10 | (1.00) | 120 |
| Class Y |
| Year ended 10/31/24 | 7.51 | 0.30 | 0.00 | 0.30 | (0.12) | — | (0.12) | 7.69 | 4.07 | 3,199 | 1.14 | 1.44 | 3.94 | 76 |
| Year ended 10/31/23 | 7.61 | 0.26 | (0.36) | (0.10) | — | — | — | 7.51 | (1.31) | 3,455 | 1.14 | 1.42 | 3.42 | 20 |
| Year ended 10/31/22 | 9.25 | (0.03) | (0.77) | (0.80) | (0.52) | (0.32) | (0.84) | 7.61 | (9.70) | 4,275 | 1.16 | 1.33 | (0.42) | 104 |
| Year ended 10/31/21 | 8.25 | (0.10) | 1.10 | 1.00 | — | — | — | 9.25 | 12.12 | 5,934 | 1.17 | 1.37 | (1.11) | 86 |
| Year ended 10/31/20 | 9.54 | (0.04) | (0.55) | (0.59) | (0.70) | — | (0.70) | 8.25 | (6.66) | 10,377 | 1.13 | 1.60 | (0.50) | 120 |
| Class R5 |
| Year ended 10/31/24 | 7.51 | 0.30 | 0.00 | 0.30 | (0.12) | — | (0.12) | 7.69 | 4.07 | 7 | 1.14 | 1.31 | 3.94 | 76 |
| Year ended 10/31/23 | 7.62 | 0.26 | (0.37) | (0.11) | — | — | — | 7.51 | (1.44) | 7 | 1.14 | 1.32 | 3.42 | 20 |
| Year ended 10/31/22 | 9.26 | (0.03) | (0.77) | (0.80) | (0.52) | (0.32) | (0.84) | 7.62 | (9.69) | 7 | 1.16 | 1.27 | (0.42) | 104 |
| Year ended 10/31/21 | 8.26 | (0.10) | 1.10 | 1.00 | — | — | — | 9.26 | 12.11 | 9 | 1.17 | 1.22 | (1.11) | 86 |
| Year ended 10/31/20 | 9.54 | (0.04) | (0.54) | (0.58) | (0.70) | — | (0.70) | 8.26 | (6.55) | 8 | 1.13 | 1.58 | (0.50) | 120 |
| Class R6 |
| Year ended 10/31/24 | 7.50 | 0.30 | (0.01) | 0.29 | (0.12) | — | (0.12) | 7.67 | 3.94 | 152,500 | 1.14 | 1.31 | 3.94 | 76 |
| Year ended 10/31/23 | 7.60 | 0.26 | (0.36) | (0.10) | — | — | — | 7.50 | (1.32) | 144,471 | 1.14 | 1.32 | 3.42 | 20 |
| Year ended 10/31/22 | 9.24 | (0.03) | (0.77) | (0.80) | (0.52) | (0.32) | (0.84) | 7.60 | (9.72) | 150,099 | 1.16 | 1.27 | (0.42) | 104 |
| Year ended 10/31/21 | 8.23 | (0.10) | 1.11 | 1.01 | — | — | — | 9.24 | 12.27 | 243,382 | 1.17 | 1.22 | (1.11) | 86 |
| Year ended 10/31/20 | 9.53 | (0.04) | (0.56) | (0.60) | (0.70) | — | (0.70) | 8.23 | (6.77) | 169,884 | 1.13 | 1.58 | (0.50) | 120 |
| (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. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Macro Allocation Strategy Fund |
Notes to Consolidated Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Macro Allocation Strategy Fund (the “Fund”), is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Cayman Commodity Fund V Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to the commodity markets primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives and other securities that may provide leveraged and non-leveraged exposure to commodities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek a positive absolute return over a complete economic and market cycle.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures ("Valuation Procedures"). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
| 13 | Invesco Macro Allocation Strategy Fund |
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income 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 consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which 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. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds |
| 14 | Invesco Macro Allocation Strategy Fund |
| | (collectively, "affiliated money market funds") and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Consolidated Statement of Operations.
| J. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| K. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
| L. | Futures Contracts — The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made on non-LME futures contracts depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. For LME contracts, subsequent or variation margin payments are not made and the value of the contracts is presented as unrealized appreciation or depreciation on the Consolidated Statement of Assets and Liabilities. When LME or non-LME contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. For settlement of LME commodity futures contracts, cash is not transferred until the settled futures contracts expire. Net realized gains or losses on LME contracts which have been closed out but for which the contract has not yet expired are reflected as a receivable or payable on the Consolidated Statements of Assets and Liabilities. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin |
| 15 | Invesco Macro Allocation Strategy Fund |
| | deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities. |
| M. | Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Consolidated Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased. |
| N. | Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
| O. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| P. | Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in exchange-traded funds and commodity-linked derivatives. The Subsidiary, unlike the Fund, may invest without limitation in commodity-linked derivatives and other securities, such as exchange-traded and commodity-linked notes, that may provide leveraged and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments.
By investing in the Subsidiary, the Fund is indirectly exposed to risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act, and, except as otherwise noted in the Fund’s prospectus, is not subject to the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or the Subsidiary to operate as intended, and could negatively affect the Fund and its shareholders.
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
| 16 | Invesco Macro Allocation Strategy Fund |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser less the amount paid by the Subsidiary to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate |
| First $250 million | 1.100% |
| Next $250 million | 1.080% |
| Next $500 million | 1.050% |
| Next $1.5 billion | 1.030% |
| Next $2.5 billion | 1.000% |
| Next $2.5 billion | 0.980% |
| Next $2.5 billion | 0.950% |
| Over $10 billion | 0.930% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 1.10%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least February 28, 2025, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.44%, 2.19%, 1.69%, 1.19%, 1.19% and 1.19%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of a Fund directly, but are fees and expenses, including management fees, of the investment companies in which a Fund invests. As a result, the total annual fund operating expenses after expense reimbursement may exceed the expense limits above. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $223,676 and reimbursed class level expenses of $1,953, $194, $126, $5,510, $2 and $45,808 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Consolidated Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $1,267 in front-end sales commissions from the sale of Class A shares and $350 and $100 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when
| 17 | Invesco Macro Allocation Strategy Fund |
market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| U.S. Treasury Securities | $— | $47,023,368 | $— | $47,023,368 |
| Exchange-Traded Funds | 6,490,710 | — | — | 6,490,710 |
| Money Market Funds | 88,545,279 | — | — | 88,545,279 |
| Options Purchased | 334,016 | — | — | 334,016 |
| Total Investments in Securities | 95,370,005 | 47,023,368 | — | 142,393,373 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 1,284,118 | — | — | 1,284,118 |
| Swap Agreements | — | 709,972 | — | 709,972 |
| | 1,284,118 | 709,972 | — | 1,994,090 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (1,015,381) | — | — | (1,015,381) |
| Swap Agreements | — | (332,870) | — | (332,870) |
| | (1,015,381) | (332,870) | — | (1,348,251) |
| Total Other Investments | 268,737 | 377,102 | — | 645,839 |
| Total Investments | $95,638,742 | $47,400,470 | $— | $143,039,212 |
| * | Unrealized appreciation (depreciation). |
NOTE 4—Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| | Value |
| Derivative Assets | Commodity
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized appreciation on futures contracts —Exchange-Traded(a) | $— | $380,235 | $133,950 | $769,933 | $1,284,118 |
| Unrealized appreciation on swap agreements — OTC | 709,972 | — | — | — | 709,972 |
| Options purchased, at value — Exchange-Traded(b) | — | — | 334,016 | — | 334,016 |
| Total Derivative Assets | 709,972 | 380,235 | 467,966 | 769,933 | 2,328,106 |
| Derivatives not subject to master netting agreements | — | (380,235) | (467,966) | (769,933) | (1,618,134) |
| Total Derivative Assets subject to master netting agreements | $709,972 | $— | $— | $— | $709,972 |
| 18 | Invesco Macro Allocation Strategy Fund |
| | Value |
| Derivative Liabilities | Commodity
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts —Exchange-Traded(a) | $— | $(166,276) | $(743,025) | $(106,080) | $(1,015,381) |
| Unrealized depreciation on swap agreements — OTC | (332,870) | — | — | — | (332,870) |
| Total Derivative Liabilities | (332,870) | (166,276) | (743,025) | (106,080) | (1,348,251) |
| Derivatives not subject to master netting agreements | — | 166,276 | 743,025 | 106,080 | 1,015,381 |
| Total Derivative Liabilities subject to master netting agreements | $(332,870) | $— | $— | $— | $(332,870) |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
| (b) | Options purchased, at value as reported in the Consolidated Schedule of Investments. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| | Financial
Derivative
Assets | | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount |
| Barclays Bank PLC | $22,835 | | $(2,209) | $20,626 | $— | $— | $20,626 |
| Canadian Imperial Bank of Commerce | 400,441 | | (262,435) | 138,006 | (138,006) | — | — |
| Citibank, N.A. | 34,280 | | (195,827) | (161,547) | — | — | (161,547) |
| Macquarie Bank Ltd. | 318,660 | | (2,506) | 316,154 | — | (310,000) | 6,154 |
| Royal Bank of Canada | 922,098 | | (59,457) | 862,641 | — | (862,641) | — |
| Total | $1,698,314 | | $(522,434) | $1,175,880 | $(138,006) | $(1,172,641) | $(134,767) |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Consolidated Statement of Operations |
| | Commodity
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Realized Gain (Loss): | | | | | |
| Futures contracts | $268,547 | $(1,974,085) | $(2,733,320) | $(2,310,455) | $(6,749,313) |
| Options purchased(a) | - | - | (1,186,781) | - | (1,186,781) |
| Swap agreements | 3,442,423 | - | 5,567,993 | - | 9,010,416 |
| Change in Net Unrealized Appreciation (Depreciation): | | | | | |
| Futures contracts | (921,751) | 213,959 | (2,149,077) | 783,642 | (2,073,227) |
| Options purchased(a) | - | - | (594,502) | - | (594,502) |
| Swap agreements | 329,021 | - | 1,120,958 | - | 1,449,979 |
| Total | $3,118,240 | $(1,760,126) | $25,271 | $(1,526,813) | $(143,428) |
| (a) | Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities. |
The table below summarizes the average notional value of derivatives held during the period.
| | Futures
Contracts | Index
Options
Purchased | Swap
Agreements |
| Average notional value | $205,487,937 | $19,205,608 | $127,224,512 |
| Average contracts | — | 419 | — |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $371.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred
| 19 | Invesco Macro Allocation Strategy Fund |
compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $2,440,010 | $— |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $13,188,876 |
| Net unrealized appreciation (depreciation) — investments | (222,285) |
| Net unrealized appreciation — foreign currencies | 5,868 |
| Temporary book/tax differences | (21,760) |
| Capital loss carryforward | (17,927,078) |
| Shares of beneficial interest | 161,989,977 |
| Total net assets | $157,013,598 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to derivative instruments, straddles and subsidiary differences.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $5,886,455 | $12,040,623 | $17,927,078 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $1,089,780 and $258,181, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $1,479,326 |
| Aggregate unrealized (depreciation) of investments | (1,701,611) |
| Net unrealized appreciation (depreciation) of investments | $(222,285) |
Cost of investments for tax purposes is $143,697,375.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions, income from the subsidiary and derivative instruments, on October 31, 2024, undistributed net investment income was increased by $5,483,980 and undistributed net realized gain (loss) was decreased by $5,483,980. This reclassification had no effect on the net assets or the distributable earnings (loss) of the Fund.
| 20 | Invesco Macro Allocation Strategy Fund |
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 39,676 | $304,497 | | 37,042 | $275,645 |
| Class C | 1,920 | 14,208 | | 6,268 | 45,715 |
| Class R | 1,376 | 10,430 | | 1,726 | 12,759 |
| Class Y | 568,265 | 4,440,996 | | 23,587 | 176,838 |
| Class R6 | 643,431 | 5,039,705 | | 1,752,205 | 13,095,257 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 2,299 | 17,034 | | - | - |
| Class C | 140 | 1,024 | | - | - |
| Class R | 113 | 835 | | - | - |
| Class Y | 7,769 | 58,189 | | - | - |
| Class R6 | 315,670 | 2,361,215 | | - | - |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 3,689 | 28,051 | | 3,726 | 27,617 |
| Class C | (3,754) | (28,051) | | (3,795) | (27,617) |
| Reacquired: | | | | | |
| Class A | (66,932) | (508,669) | | (55,710) | (412,547) |
| Class C | (9,938) | (73,458) | | (4,476) | (32,656) |
| Class R | (3,986) | (30,277) | | (7,412) | (55,142) |
| Class Y | (619,747) | (4,845,298) | | (125,196) | (933,651) |
| Class R6 | (347,192) | (2,724,188) | | (2,233,900) | (16,709,965) |
| Net increase (decrease) in share activity | 532,799 | $4,066,243 | | (605,935) | $(4,537,747) |
| (a) | 97% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
NOTE 12—Subsequent Event
At a meeting held on December 11, 2024, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund will be closed to investments by new accounts after the close of business on January 17, 2025. The Fund will be liquidated on or about March 20, 2025.
| 21 | Invesco Macro Allocation Strategy Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Macro Allocation Strategy Fund
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of Invesco Macro Allocation Strategy Fund and its subsidiary (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related consolidated statement of operations for the year ended October 31, 2024, the consolidated statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the consolidated financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 22 | Invesco Macro Allocation Strategy Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Macro Allocation Strategy Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Bloomberg US Treasury Bellwethers 3 Month Index (Index). The Board noted that performance of Class Y shares of the Fund was in the third quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class Y shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board considered that the Fund’s tactical allocation, which underperforms in periods of short-term volatility, as
| 23 | Invesco Macro Allocation Strategy Fund |
well as the Fund’s commodity positioning, negatively impacted Fund performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class Y shares of the Fund were each the same as the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund
level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 24 | Invesco Macro Allocation Strategy Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Qualified Dividend Income* | 0.00% |
| Corporate Dividends Received Deduction* | 0.00% |
| U.S. Treasury Obligations* | 96.54% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 61.94% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 25 | Invesco Macro Allocation Strategy Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 26 | Invesco Macro Allocation Strategy Fund |
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | MAS-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Multi-Asset Income Fund
Nasdaq:
A: PIAFX ■ C: PICFX ■ R: PIRFX ■ Y: PIYFX ■ R5: IPNFX ■ R6: PIFFX
Schedule of Investments(a)
October 31, 2024
| | | Shares | Value |
| Exchange-Traded Funds–47.40% |
| Invesco MSCI EAFE Income Advantage ETF(b) | | 2,077,000 | $100,905,437 |
| Invesco QQQ Income Advantage ETF(b) | | 2,115,000 | 102,492,900 |
| Invesco S&P 500 Equal Weight Income Advantage ETF(b) | | 4,780,000 | 245,070,600 |
| iShares J.P. Morgan USD Emerging Markets Bond ETF(c) | | 174,000 | 15,820,080 |
| Total Exchange-Traded Funds (Cost $456,254,208) | | 464,289,017 |
| | | Principal
Amount | |
| U.S. Treasury Securities–26.95% |
| U.S. Treasury Bills–0.12% |
| 4.40% - 4.78%, 01/30/2025(d)(e) | | | $1,198,000 | 1,184,720 |
| U.S. Treasury Bonds–12.64% |
| 5.25%, 11/15/2028 | | | 400,000 | 416,406 |
| 4.75%, 11/15/2053 | | | 118,300,000 | 123,397,067 |
| | | | | 123,813,473 |
| U.S. Treasury Notes–14.19% |
| 2.88%, 05/31/2025 | | | 25,400,000 | 25,175,704 |
| 5.00%, 09/30/2025 | | | 12,000,000 | 12,067,724 |
| 0.38%, 12/31/2025 | | | 7,750,000 | 7,410,181 |
| 4.88%, 04/30/2026 | | | 1,000,000 | 1,009,453 |
| 4.63%, 06/30/2026 | | | 2,500,000 | 2,516,797 |
| 1.25%, 12/31/2026 | | | 14,300,000 | 13,457,082 |
| 4.50%, 04/15/2027 | | | 24,200,000 | 24,405,605 |
| 2.63%, 05/31/2027 | | | 1,050,000 | 1,011,691 |
| 4.63%, 06/15/2027 | | | 1,800,000 | 1,822,289 |
| 2.88%, 05/15/2028 | | | 25,500,000 | 24,436,172 |
| 4.63%, 04/30/2029 | | | 22,700,000 | 23,134,049 |
| 4.25%, 06/30/2029 | | | 2,500,000 | 2,509,277 |
| | | | | 138,956,024 |
| Total U.S. Treasury Securities (Cost $268,527,950) | | 263,954,217 |
| U.S. Dollar Denominated Bonds & Notes–19.64% |
| Advertising–0.08% |
| Advantage Sales & Marketing, Inc., 6.50%, 11/15/2028(f) | | | 220,000 | 206,190 |
| Belo Corp., 7.25%, 09/15/2027 | | | 573,000 | 591,048 |
| | | | | 797,238 |
| Aerospace & Defense–0.18% |
| Boeing Co. (The), | | | |
| 2.75%, 02/01/2026 | | | 119,000 | 115,411 |
| 2.25%, 06/15/2026 | | | 59,000 | 56,250 |
| 2.80%, 03/01/2027 | | | 900,000 | 849,717 |
| Moog, Inc., 4.25%, 12/15/2027(f) | | | 500,000 | 477,109 |
| Spirit AeroSystems, Inc., 9.38%, 11/30/2029(f) | | | 200,000 | 215,952 |
| | | | | 1,714,439 |
| | | Principal
Amount | Value |
| Agricultural & Farm Machinery–0.33% |
| CNH Industrial Capital LLC, | | | |
| 4.55%, 04/10/2028 | | | $155,000 | $153,871 |
| 5.10%, 04/20/2029 | | | 200,000 | 201,648 |
| John Deere Capital Corp., | | | |
| 4.85%, 03/05/2027 | | | 190,000 | 191,970 |
| 2.35%, 03/08/2027 | | | 760,000 | 724,551 |
| 4.95%, 07/14/2028(c) | | | 920,000 | 932,774 |
| 4.50%, 01/16/2029 | | | 200,000 | 199,758 |
| Titan International, Inc., 7.00%, 04/30/2028 | | | 850,000 | 825,187 |
| | | | | 3,229,759 |
| Agricultural Products & Services–0.06% |
| Darling Ingredients, Inc., 5.25%, 04/15/2027(f) | | | 622,000 | 616,565 |
| Air Freight & Logistics–0.04% |
| Rand Parent LLC, 8.50%, 02/15/2030(f) | | | 427,000 | 426,526 |
| Alternative Carriers–0.06% |
| Intelsat Jackson Holdings S.A. (Luxembourg), 6.50%, 03/15/2030(f) | | | 280,000 | 263,783 |
| Zayo Group Holdings, Inc., 4.00%, 03/01/2027(c)(f) | | | 408,000 | 363,456 |
| | | | | 627,239 |
| Aluminum–0.02% |
| Novelis Corp., 3.25%, 11/15/2026(f) | | | 156,000 | 150,204 |
| Apparel Retail–0.13% |
| Gap, Inc. (The), | | | |
| 3.63%, 10/01/2029(c)(f) | | | 545,000 | 489,681 |
| 3.88%, 10/01/2031(f) | | | 290,000 | 249,533 |
| Ross Stores, Inc., 0.88%, 04/15/2026 | | | 190,000 | 180,089 |
| Victoria’s Secret & Co., 4.63%, 07/15/2029(f) | | | 412,000 | 363,479 |
| | | | | 1,282,782 |
| Apparel, Accessories & Luxury Goods–0.03% |
| Tapestry, Inc., | | | |
| 7.00%, 11/27/2026 | | | 54,000 | 55,175 |
| 4.13%, 07/15/2027 | | | 59,000 | 57,455 |
| 7.35%, 11/27/2028 | | | 200,000 | 204,314 |
| | | | | 316,944 |
| Application Software–0.11% |
| Cloud Software Group, Inc., 9.00%, 09/30/2029(f) | | | 584,000 | 584,397 |
| Open Text Holdings, Inc. (Canada), | | | |
| 4.13%, 02/15/2030(f) | | | 320,000 | 294,027 |
| 4.13%, 12/01/2031(f) | | | 257,000 | 231,041 |
| | | | | 1,109,465 |
| Asset Management & Custody Banks–0.06% |
| Ares Capital Corp., 2.88%, 06/15/2028 | | | 110,000 | 100,434 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Multi-Asset Income Fund |
| | | Principal
Amount | Value |
| Asset Management & Custody Banks–(continued) |
| BrightSphere Investment Group, Inc., 4.80%, 07/27/2026 | | | $400,000 | $391,721 |
| Legg Mason, Inc., 4.75%, 03/15/2026 | | | 59,000 | 58,977 |
| | | | | 551,132 |
| Automobile Manufacturers–0.41% |
| American Honda Finance Corp., 2.35%, 01/08/2027 | | | 95,000 | 90,868 |
| Ford Motor Credit Co. LLC, | | | |
| 6.95%, 06/10/2026 | | | 500,000 | 511,131 |
| 6.80%, 05/12/2028 | | | 300,000 | 310,887 |
| Jaguar Land Rover Automotive PLC (United Kingdom), | | | |
| 7.75%, 10/15/2025(f) | | | 434,000 | 434,100 |
| 4.50%, 10/01/2027(f) | | | 212,000 | 205,136 |
| PACCAR Financial Corp., | | | |
| 5.05%, 08/10/2026 | | | 200,000 | 202,396 |
| 4.60%, 01/31/2029 | | | 230,000 | 230,763 |
| Toyota Motor Corp. (Japan), 5.12%, 07/13/2028(c) | | | 460,000 | 469,367 |
| Toyota Motor Credit Corp., | | | |
| 5.40%, 11/20/2026 | | | 230,000 | 234,260 |
| 3.20%, 01/11/2027 | | | 100,000 | 97,475 |
| 1.15%, 08/13/2027 | | | 300,000 | 274,452 |
| 4.65%, 01/05/2029 | | | 500,000 | 501,244 |
| 3.65%, 01/08/2029 | | | 460,000 | 445,173 |
| | | | | 4,007,252 |
| Automotive Parts & Equipment–0.20% |
| ANGI Group LLC, 3.88%, 08/15/2028(c)(f) | | | 330,000 | 298,921 |
| Dana, Inc., 4.50%, 02/15/2032 | | | 283,000 | 242,311 |
| Tenneco, Inc., 8.00%, 11/17/2028(c)(f) | | | 964,000 | 893,466 |
| United Rentals (North America), Inc., 4.88%, 01/15/2028(c) | | | 327,000 | 320,364 |
| ZF North America Capital, Inc. (Germany), 6.88%, 04/14/2028(f) | | | 200,000 | 201,918 |
| | | | | 1,956,980 |
| Automotive Retail–0.12% |
| Advance Auto Parts, Inc., 1.75%, 10/01/2027 | | | 560,000 | 498,095 |
| AutoNation, Inc., 1.95%, 08/01/2028(c) | | | 550,000 | 489,787 |
| Sonic Automotive, Inc., 4.63%, 11/15/2029(f) | | | 180,000 | 165,434 |
| | | | | 1,153,316 |
| Biotechnology–0.08% |
| AbbVie, Inc., | | | |
| 2.95%, 11/21/2026 | | | 570,000 | 552,960 |
| 4.80%, 03/15/2029 | | | 230,000 | 231,899 |
| | | | | 784,859 |
| Broadcasting–0.18% |
| Discovery Communications LLC, 3.95%, 03/20/2028 | | | 300,000 | 283,410 |
| Gray Television, Inc., 10.50%, 07/15/2029(f) | | | 500,000 | 519,813 |
| | | Principal
Amount | Value |
| Broadcasting–(continued) |
| Paramount Global, | | | |
| 3.70%, 06/01/2028 | | | $125,000 | $116,954 |
| 6.38%, 03/30/2062(c)(g) | | | 719,000 | 666,353 |
| Urban One, Inc., 7.38%, 02/01/2028(f) | | | 250,000 | 185,700 |
| | | | | 1,772,230 |
| Broadline Retail–0.38% |
| Amazon.com, Inc., 3.30%, 04/13/2027 | | | 150,000 | 146,530 |
| GrubHub Holdings, Inc., 5.50%, 07/01/2027(f) | | | 289,000 | 269,968 |
| Kohl’s Corp., 4.63%, 05/01/2031 | | | 840,000 | 697,732 |
| Macy’s Retail Holdings LLC, | | | |
| 5.88%, 03/15/2030(c)(f) | | | 410,000 | 396,989 |
| 6.70%, 07/15/2034(f) | | | 437,000 | 375,622 |
| Nordstrom, Inc., | | | |
| 6.95%, 03/15/2028(c) | | | 400,000 | 414,799 |
| 5.00%, 01/15/2044 | | | 360,000 | 271,331 |
| QVC, Inc., 6.88%, 04/15/2029(f) | | | 138,000 | 119,021 |
| Rakuten Group, Inc. (Japan), | | | |
| 11.25%, 02/15/2027(f) | | | 635,000 | 691,626 |
| 9.75%, 04/15/2029(f) | | | 350,000 | 379,181 |
| | | | | 3,762,799 |
| Building Products–0.33% |
| Adams Homes, Inc., 9.25%, 10/15/2028(f) | | | 285,000 | 298,423 |
| Builders FirstSource, Inc., 4.25%, 02/01/2032(f) | | | 310,000 | 277,564 |
| JELD-WEN, Inc., 4.88%, 12/15/2027(c)(f) | | | 651,000 | 630,402 |
| MIWD Holdco II LLC/MIWD Finance Corp., 5.50%, 02/01/2030(c)(f) | | | 840,000 | 804,660 |
| Standard Industries, Inc., | | | |
| 4.75%, 01/15/2028(f) | | | 667,000 | 643,922 |
| 4.38%, 07/15/2030(f) | | | 669,000 | 615,275 |
| | | | | 3,270,246 |
| Cable & Satellite–0.92% |
| Cable One, Inc., 4.00%, 11/15/2030(f) | | | 350,000 | 276,227 |
| CCO Holdings LLC/CCO Holdings Capital Corp., | | | |
| 5.50%, 05/01/2026(f) | | | 689,000 | 687,234 |
| 4.75%, 03/01/2030(f) | | | 720,000 | 655,560 |
| 4.25%, 02/01/2031(f) | | | 750,000 | 651,481 |
| 4.50%, 05/01/2032(c) | | | 755,000 | 642,994 |
| 4.50%, 06/01/2033(f) | | | 490,000 | 407,976 |
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 2.25%, 01/15/2029 | | | 230,000 | 202,095 |
| Comcast Corp., | | | |
| 3.30%, 04/01/2027 | | | 230,000 | 224,017 |
| 5.35%, 11/15/2027(c) | | | 300,000 | 307,198 |
| 4.55%, 01/15/2029 | | | 200,000 | 199,451 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Cable & Satellite–(continued) |
| CSC Holdings LLC, | | |
| 11.75%, 01/31/2029(f) | | $360,000 | $351,419 |
| 5.75%, 01/15/2030(f) | | 452,000 | 238,586 |
| Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.88%, 08/15/2027(c)(f) | | 980,000 | 944,663 |
| DISH DBS Corp., | | |
| 7.75%, 07/01/2026 | | 413,000 | 349,802 |
| 5.25%, 12/01/2026(f) | | 532,000 | 493,397 |
| 5.75%, 12/01/2028(f) | | 380,000 | 332,723 |
| DISH Network Corp., 11.75%, 11/15/2027(f) | | 530,000 | 558,296 |
| LCPR Senior Secured Financing DAC (Puerto Rico), | | |
| 6.75%, 10/15/2027(f) | | 682,000 | 639,893 |
| 5.13%, 07/15/2029(f) | | 525,000 | 441,645 |
| Scripps Escrow, Inc., 5.88%, 07/15/2027(f) | | 430,000 | 378,400 |
| | | | 8,983,057 |
| Cargo Ground Transportation–0.02% |
| Ryder System, Inc., 5.65%, 03/01/2028 | | 150,000 | 154,023 |
| Casinos & Gaming–0.26% |
| Codere Finance 2 (Luxembourg) S.A. (Spain), 11.63% PIK Rate, 2.00% Cash Rate, 11/30/2027(f)(h) | | 100,894 | 1,211 |
| International Game Technology PLC, | | |
| 4.13%, 04/15/2026(f) | | 227,000 | 223,897 |
| 6.25%, 01/15/2027(f) | | 241,000 | 243,562 |
| Melco Resorts Finance Ltd. (Hong Kong), | | |
| 5.25%, 04/26/2026(f) | | 310,000 | 304,254 |
| 5.75%, 07/21/2028(f) | | 319,000 | 305,171 |
| MGM China Holdings Ltd. (Macau), 4.75%, 02/01/2027(f) | | 446,000 | 431,385 |
| Mohegan Tribal Gaming Authority, 8.00%, 02/01/2026(f) | | 501,000 | 497,943 |
| Wynn Macau Ltd. (Macau), 5.63%, 08/26/2028(f) | | 520,000 | 499,566 |
| | | | 2,506,989 |
| Commercial & Residential Mortgage Finance–0.06% |
| PennyMac Financial Services, Inc., 5.38%, 10/15/2025(f) | | 252,000 | 251,021 |
| Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., 2.88%, 10/15/2026(c)(f) | | 357,000 | 340,032 |
| | | | 591,053 |
| Commercial Printing–0.04% |
| R.R. Donnelley & Sons Co., 9.50%, 08/01/2029(f) | | 400,000 | 403,152 |
| Commodity Chemicals–0.05% |
| Methanex Corp. (Canada), 5.13%, 10/15/2027 | | 540,000 | 525,978 |
| Communications Equipment–0.15% |
| Juniper Networks, Inc., 1.20%, 12/10/2025 | | 230,000 | 220,744 |
| | Principal
Amount | Value |
| Communications Equipment–(continued) |
| Viasat, Inc., | | |
| 5.63%, 04/15/2027(c)(f) | | $885,000 | $827,185 |
| 6.50%, 07/15/2028(f) | | 277,000 | 209,230 |
| Viavi Solutions, Inc., 3.75%, 10/01/2029(f) | | 190,000 | 172,590 |
| | | | 1,429,749 |
| Computer & Electronics Retail–0.06% |
| IBM International Capital Pte. Ltd., 4.60%, 02/05/2029 | | 600,000 | 598,758 |
| Construction & Engineering–0.13% |
| AECOM, 5.13%, 03/15/2027 | | 530,000 | 527,540 |
| Brand Industrial Services, Inc., 10.38%, 08/01/2030(c)(f) | | 675,000 | 716,443 |
| | | | 1,243,983 |
Construction Machinery & Heavy Transportation Equipment–
0.06% |
| Caterpillar Financial Services Corp., 1.10%, 09/14/2027 | | 130,000 | 118,925 |
| Trinity Industries, Inc., 7.75%, 07/15/2028(f) | | 350,000 | 362,091 |
| Wabtec Corp., 3.45%, 11/15/2026 | | 135,000 | 131,723 |
| | | | 612,739 |
| Construction Materials–0.10% |
| Camelot Return Merger Sub, Inc., 8.75%, 08/01/2028(f) | | 277,000 | 278,588 |
| Eco Material Technologies, Inc., 7.88%, 01/31/2027(f) | | 322,000 | 324,389 |
| Smyrna Ready Mix Concrete LLC, 8.88%, 11/15/2031(f) | | 400,000 | 420,538 |
| | | | 1,023,515 |
| Consumer Electronics–0.01% |
| Tyco Electronics Group S.A. (Switzerland), 3.13%, 08/15/2027 | | 75,000 | 72,304 |
| Consumer Finance–0.66% |
| Ally Financial, Inc., 6.99%, 06/13/2029(g) | | 500,000 | 522,110 |
| American Express Co., | | |
| 6.34%, 10/30/2026(g) | | 460,000 | 466,492 |
| 1.65%, 11/04/2026(c) | | 330,000 | 311,531 |
| 3.30%, 05/03/2027 | | 130,000 | 126,043 |
| Bread Financial Holdings, Inc., 9.75%, 03/15/2029(f) | | 335,000 | 354,141 |
| Discover Bank, | | |
| 3.45%, 07/27/2026 | | 550,000 | 536,257 |
| 4.65%, 09/13/2028 | | 500,000 | 491,778 |
| General Motors Financial Co., Inc., | | |
| 5.40%, 04/06/2026 | | 460,000 | 463,707 |
| 1.50%, 06/10/2026 | | 61,000 | 57,819 |
| 2.40%, 10/15/2028 | | 230,000 | 208,105 |
| 5.80%, 01/07/2029 | | 500,000 | 512,050 |
| Navient Corp., | | |
| 5.00%, 03/15/2027 | | 210,000 | 206,626 |
| 5.50%, 03/15/2029(c) | | 713,000 | 679,933 |
| 5.63%, 08/01/2033 | | 290,000 | 250,568 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Multi-Asset Income Fund |
| | | Principal
Amount | Value |
| Consumer Finance–(continued) |
| OneMain Finance Corp., | | | |
| 7.13%, 03/15/2026 | | | $242,000 | $248,083 |
| 3.50%, 01/15/2027 | | | 635,000 | 606,497 |
| PRA Group, Inc., 8.38%, 02/01/2028(f) | | | 441,000 | 453,737 |
| | | | | 6,495,477 |
| Copper–0.01% |
| Freeport-McMoRan, Inc., 5.00%, 09/01/2027 | | | 75,000 | 74,988 |
| Data Processing & Outsourced Services–0.08% |
| Concentrix Corp., | | | |
| 6.65%, 08/02/2026 | | | 230,000 | 234,211 |
| 6.60%, 08/02/2028(c) | | | 500,000 | 506,828 |
| | | | | 741,039 |
| Distillers & Vintners–0.01% |
| Constellation Brands, Inc., 3.70%, 12/06/2026 | | | 117,000 | 114,699 |
| Distributors–0.02% |
| Resideo Funding, Inc., 4.00%, 09/01/2029(f) | | | 250,000 | 229,704 |
| Diversified Banks–2.06% |
| Banco Santander S.A. (Spain), 4.18%, 03/24/2028(g) | | | 200,000 | 196,206 |
| Bank of America Corp., | | | |
| 4.45%, 03/03/2026 | | | 100,000 | 99,510 |
| 1.20%, 10/24/2026(c)(g) | | | 480,000 | 463,127 |
| 1.73%, 07/22/2027(g) | | | 630,000 | 598,168 |
| 5.93%, 09/15/2027(c)(g) | | | 300,000 | 306,452 |
| 3.71%, 04/24/2028(g) | | | 230,000 | 224,166 |
| 3.59%, 07/21/2028(g) | | | 400,000 | 387,564 |
| 3.42%, 12/20/2028(g) | | | 460,000 | 441,189 |
| 4.27%, 07/23/2029(c)(g) | | | 570,000 | 557,879 |
| Series L, 4.18%, 11/25/2027 | | | 100,000 | 98,232 |
| Barclays PLC (United Kingdom), 4.84%, 05/09/2028 | | | 920,000 | 908,689 |
| Citigroup, Inc., | | | |
| 1.12%, 01/28/2027(g) | | | 110,000 | 105,037 |
| 1.46%, 06/09/2027(g) | | | 140,000 | 132,780 |
| Comerica, Inc., 4.00%, 02/01/2029(c) | | | 500,000 | 475,850 |
| Freedom Mortgage Corp., 6.63%, 01/15/2027(f) | | | 300,000 | 296,739 |
| HSBC Holdings PLC (United Kingdom), | | | |
| 1.59%, 05/24/2027(g) | | | 400,000 | 380,160 |
| 5.21%, 08/11/2028(g) | | | 920,000 | 927,028 |
| 4.58%, 06/19/2029(g) | | | 1,060,000 | 1,042,578 |
| Huntington National Bank (The), 4.55%, 05/17/2028(g) | | | 250,000 | 248,334 |
| ING Groep N.V. (Netherlands), 1.73%, 04/01/2027(c)(g) | | | 460,000 | 440,129 |
| Intesa Sanpaolo S.p.A. (Italy), 5.71%, 01/15/2026(f) | | | 350,000 | 350,559 |
| JPMorgan Chase & Co., | | | |
| 1.05%, 11/19/2026(g) | | | 60,000 | 57,638 |
| 4.25%, 10/01/2027 | | | 75,000 | 74,388 |
| 2.18%, 06/01/2028(g) | | | 75,000 | 70,262 |
| JPMorgan Chase Bank N.A., 5.11%, 12/08/2026 | | | 750,000 | 758,909 |
| | | Principal
Amount | Value |
| Diversified Banks–(continued) |
| Lloyds Banking Group PLC (United Kingdom), | | | |
| 3.75%, 01/11/2027 | | | $230,000 | $225,267 |
| 5.46%, 01/05/2028(g) | | | 500,000 | 505,882 |
| Manufacturers & Traders Trust Co., 5.40%, 11/21/2025 | | | 500,000 | 502,960 |
| Mitsubishi UFJ Financial Group, Inc. (Japan), 3.29%, 07/25/2027 | | | 60,000 | 58,198 |
| Mizuho Financial Group, Inc. (Japan), | | | |
| 3.17%, 09/11/2027 | | | 230,000 | 220,931 |
| 5.67%, 05/27/2029(c)(g) | | | 920,000 | 943,859 |
| 5.78%, 07/06/2029(g) | | | 200,000 | 205,710 |
| Morgan Stanley Bank N.A., | | | |
| 5.88%, 10/30/2026 | | | 250,000 | 256,425 |
| 4.95%, 01/14/2028(c)(g) | | | 1,000,000 | 1,004,281 |
| National Australia Bank Ltd. (Australia), | | | |
| 4.94%, 01/12/2028 | | | 250,000 | 253,235 |
| 4.79%, 01/10/2029 | | | 800,000 | 807,025 |
| NatWest Group PLC (United Kingdom), | | | |
| 5.85%, 03/02/2027(g) | | | 230,000 | 232,760 |
| 5.52%, 09/30/2028(g) | | | 230,000 | 233,625 |
| PNC Bank N.A., 4.20%, 11/01/2025 | | | 275,000 | 273,682 |
| Royal Bank of Canada (Canada), 4.65%, 01/27/2026 | | | 125,000 | 124,531 |
| Santander UK Group Holdings PLC (United Kingdom), 6.83%, 11/21/2026(g) | | | 400,000 | 406,504 |
| Sumitomo Mitsui Financial Group, Inc. (Japan), | | | |
| 1.40%, 09/17/2026 | | | 460,000 | 433,711 |
| 3.35%, 10/18/2027 | | | 230,000 | 221,848 |
| Toronto-Dominion Bank (The) (Canada), | | | |
| 5.16%, 01/10/2028 | | | 100,000 | 101,094 |
| 5.52%, 07/17/2028 | | | 230,000 | 235,356 |
| U.S. Bancorp, | | | |
| 6.79%, 10/26/2027(g) | | | 230,000 | 238,826 |
| 4.55%, 07/22/2028(g) | | | 150,000 | 149,131 |
| 5.78%, 06/12/2029(c)(g) | | | 500,000 | 514,584 |
| UBS AG (Switzerland), 5.00%, 07/09/2027 | | | 400,000 | 403,512 |
| Wells Fargo & Co., | | | |
| 2.19%, 04/30/2026(g) | | | 150,000 | 147,855 |
| 4.54%, 08/15/2026(c)(g) | | | 600,000 | 597,690 |
| 3.53%, 03/24/2028(g) | | | 160,000 | 155,328 |
| 4.81%, 07/25/2028(g) | | | 100,000 | 99,910 |
| 6.30%, 10/23/2029(g) | | | 100,000 | 104,818 |
| Westpac Banking Corp. (Australia), | | | |
| 2.70%, 08/19/2026(c) | | | 460,000 | 446,943 |
| 3.40%, 01/25/2028 | | | 105,000 | 101,341 |
| 1.95%, 11/20/2028 | | | 400,000 | 362,072 |
| | | | | 20,210,467 |
| Diversified Capital Markets–0.06% |
| Deutsche Bank AG (Germany), 2.13%, 11/24/2026(g) | | | 610,000 | 591,070 |
| Diversified Chemicals–0.13% |
| Celanese US Holdings LLC, 6.17%, 07/15/2027(c) | | | 460,000 | 470,625 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Multi-Asset Income Fund |
| | | Principal
Amount | Value |
| Diversified Chemicals–(continued) |
| Chemours Co. (The), | | | |
| 5.38%, 05/15/2027 | | | $287,000 | $276,612 |
| 5.75%, 11/15/2028(f) | | | 213,000 | 196,874 |
| INEOS Finance PLC (Luxembourg), 6.75%, 05/15/2028(f) | | | 336,000 | 339,984 |
| | | | | 1,284,095 |
| Diversified Financial Services–0.53% |
| Albion Financing 1 S.a.r.l./Aggreko Holdings, Inc. (Luxembourg), 6.13%, 10/15/2026(f) | | | 239,000 | 239,395 |
| Block Financial LLC, 2.50%, 07/15/2028(c) | | | 380,000 | 347,583 |
| Corebridge Financial, Inc., 3.65%, 04/05/2027 | | | 130,000 | 126,691 |
| eG Global Finance PLC (United Kingdom), 12.00%, 11/30/2028(f) | | | 430,000 | 478,515 |
| GGAM Finance Ltd. (Ireland), 8.00%, 02/15/2027(c)(f) | | | 280,000 | 289,463 |
| Jefferies Finance LLC/JFIN Co-Issuer Corp., 5.00%, 08/15/2028(f) | | | 466,000 | 430,306 |
| Midcap Financial Issuer Trust, | | | |
| 6.50%, 05/01/2028(f) | | | 615,000 | 581,906 |
| 5.63%, 01/15/2030(f) | | | 285,000 | 252,287 |
| Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, 4.00%, 10/15/2027(c)(f) | | | 500,000 | 477,988 |
| PHH Mortgage Corp., 7.88%, 03/15/2026(c)(f) | | | 849,000 | 866,680 |
| Resorts World Las Vegas LLC/RWLV Capital, Inc., 4.63%, 04/06/2031(f) | | | 500,000 | 424,509 |
| United Wholesale Mortgage LLC, | | | |
| 5.50%, 11/15/2025(c)(f) | | | 477,000 | 474,927 |
| 5.75%, 06/15/2027(f) | | | 250,000 | 245,891 |
| | | | | 5,236,141 |
| Diversified Metals & Mining–0.14% |
| BHP Billiton Finance (USA) Ltd. (Australia), 6.42%, 03/01/2026 | | | 230,000 | 235,026 |
| Mineral Resources Ltd. (Australia), | | | |
| 8.00%, 11/01/2027(c)(f) | | | 650,000 | 667,134 |
| 9.25%, 10/01/2028(c)(f) | | | 450,000 | 474,312 |
| | | | | 1,376,472 |
| Diversified Real Estate Activities–0.00% |
| Five Point Operating Co. L.P./Five Point Capital Corp., 7.88%, 11/15/2025(f) | | | 4,000 | 3,996 |
| Diversified REITs–0.11% |
| Global Net Lease, Inc./Global Net Lease Operating Partnership L.P., 3.75%, 12/15/2027(c)(f) | | | 469,000 | 430,570 |
| MGM Growth Properties Operating Partnership L.P./MGP Finance Co-Issuer, Inc., 4.63%, 06/15/2025(f) | | | 630,000 | 627,190 |
| | | | | 1,057,760 |
| | | Principal
Amount | Value |
| Diversified Support Services–0.16% |
| MPH Acquisition Holdings LLC, 5.50%, 09/01/2028(f) | | | $396,000 | $269,494 |
| Neptune Bidco US, Inc., 9.29%, 04/15/2029(f) | | | 963,000 | 900,630 |
| Sabre GLBL, Inc., 8.63%, 06/01/2027(c)(f) | | | 364,000 | 351,617 |
| | | | | 1,521,741 |
| Drug Retail–0.13% |
| Walgreens Boots Alliance, Inc., | | | |
| 3.45%, 06/01/2026(c) | | | 1,115,000 | 1,073,423 |
| 8.13%, 08/15/2029 | | | 200,000 | 198,954 |
| | | | | 1,272,377 |
| Education Services–0.06% |
| Grand Canyon University, 5.13%, 10/01/2028(c) | | | 630,000 | 591,346 |
| Electric Utilities–0.66% |
| Alabama Power Co., 3.75%, 09/01/2027 | | | 460,000 | 452,322 |
| Edison International, | | | |
| 4.13%, 03/15/2028 | | | 100,000 | 97,700 |
| 5.25%, 11/15/2028 | | | 490,000 | 493,839 |
| 8.13%, 06/15/2053(c)(g) | | | 506,000 | 532,134 |
| 7.88%, 06/15/2054(g) | | | 450,000 | 471,802 |
| Entergy Louisiana LLC, 2.40%, 10/01/2026 | | | 230,000 | 221,193 |
| Eversource Energy, 5.95%, 02/01/2029 | | | 100,000 | 103,901 |
| FirstEnergy Corp., Series B, 3.90%, 07/15/2027 | | | 230,000 | 224,679 |
| Fortis, Inc. (Canada), 3.06%, 10/04/2026 | | | 190,000 | 184,145 |
| National Rural Utilities Cooperative Finance Corp., | | | |
| 5.45%, 10/30/2025(c) | | | 460,000 | 464,575 |
| 1.00%, 06/15/2026 | | | 18,000 | 17,027 |
| NextEra Energy Operating Partners L.P., | | | |
| 3.88%, 10/15/2026(f) | | | 800,000 | 771,854 |
| 4.50%, 09/15/2027(f) | | | 125,000 | 120,106 |
| Pacific Gas and Electric Co., | | | |
| 3.30%, 12/01/2027 | | | 300,000 | 286,190 |
| 3.00%, 06/15/2028 | | | 85,000 | 79,655 |
| 6.10%, 01/15/2029 | | | 230,000 | 238,953 |
| Public Service Co. of Colorado, 3.70%, 06/15/2028(c) | | | 690,000 | 669,850 |
| System Energy Resources, Inc., 6.00%, 04/15/2028 | | | 150,000 | 154,754 |
| Vistra Operations Co. LLC, | | | |
| 5.63%, 02/15/2027(f) | | | 559,000 | 557,907 |
| 5.00%, 07/31/2027(f) | | | 200,000 | 197,494 |
| Xcel Energy, Inc., 3.35%, 12/01/2026 | | | 150,000 | 145,913 |
| | | | | 6,485,993 |
| Electrical Components & Equipment–0.13% |
| Atkore, Inc., 4.25%, 06/01/2031(c)(f) | | | 420,000 | 378,924 |
| Emerson Electric Co., 1.80%, 10/15/2027 | | | 80,000 | 74,199 |
| EnerSys, 4.38%, 12/15/2027(f) | | | 600,000 | 577,808 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Multi-Asset Income Fund |
| | | Principal
Amount | Value |
| Electrical Components & Equipment–(continued) |
| Regal Rexnord Corp., 6.05%, 02/15/2026 | | | $250,000 | $252,696 |
| | | | | 1,283,627 |
| Electronic Manufacturing Services–0.04% |
| Jabil, Inc., 1.70%, 04/15/2026 | | | 460,000 | 438,868 |
| Environmental & Facilities Services–0.08% |
| Enviri Corp., 5.75%, 07/31/2027(c)(f) | | | 763,000 | 736,146 |
| Fertilizers & Agricultural Chemicals–0.09% |
| Consolidated Energy Finance S.A. (Switzerland), | | | |
| 5.63%, 10/15/2028(f) | | | 559,000 | 456,136 |
| 12.00%, 02/15/2031(f) | | | 480,000 | 468,743 |
| | | | | 924,879 |
| Financial Exchanges & Data–0.12% |
| Coinbase Global, Inc., 3.38%, 10/01/2028(f) | | | 505,000 | 449,362 |
| Intercontinental Exchange, Inc., 4.00%, 09/15/2027(c) | | | 460,000 | 453,537 |
| S&P Global, Inc., | | | |
| 2.45%, 03/01/2027 | | | 65,000 | 62,030 |
| 2.70%, 03/01/2029(c) | | | 200,000 | 184,876 |
| | | | | 1,149,805 |
| Food Distributors–0.08% |
| C&S Group Enterprises LLC, 5.00%, 12/15/2028(f) | | | 707,000 | 586,065 |
| Sysco Corp., 3.75%, 10/01/2025 | | | 230,000 | 228,186 |
| | | | | 814,251 |
| Food Retail–0.06% |
| Albertson’s Cos., Inc./Safeway, Inc./New Albertson’s L.P./Albertson’s LLC, 4.63%, 01/15/2027(f) | | | 640,000 | 628,325 |
| Gas Utilities–0.09% |
| AmeriGas Partners L.P./AmeriGas Finance Corp., | | | |
| 5.88%, 08/20/2026 | | | 316,000 | 309,914 |
| 9.38%, 06/01/2028(f) | | | 440,000 | 453,106 |
| Southwest Gas Corp., 5.45%, 03/23/2028 | | | 80,000 | 81,218 |
| | | | | 844,238 |
| Health Care Distributors–0.08% |
| Cencora, Inc., 3.45%, 12/15/2027(c) | | | 500,000 | 482,840 |
| Owens & Minor, Inc., 6.63%, 04/01/2030(f) | | | 300,000 | 286,559 |
| | | | | 769,399 |
| Health Care Equipment–0.10% |
| Baxter International, Inc., 2.27%, 12/01/2028(c) | | | 545,000 | 490,891 |
| Miter Brands Acquisition Holdco, Inc./MIWD Borrower LLC, 6.75%, 04/01/2032(f) | | | 280,000 | 285,005 |
| | Principal
Amount | Value |
| Health Care Equipment–(continued) |
| Smith & Nephew PLC (United Kingdom), 5.15%, 03/20/2027 | | $230,000 | $231,356 |
| | | | 1,007,252 |
| Health Care Facilities–0.10% |
| HCA, Inc., 5.63%, 09/01/2028(c) | | 150,000 | 153,065 |
| LifePoint Health, Inc., | | |
| 9.88%, 08/15/2030(f) | | 267,000 | 292,400 |
| 11.00%, 10/15/2030(c)(f) | | 349,000 | 389,468 |
| Universal Health Services, Inc., 1.65%, 09/01/2026 | | 134,000 | 126,367 |
| | | | 961,300 |
| Health Care REITs–0.10% |
| MPT Operating Partnership L.P./MPT Finance Corp., | | |
| 5.00%, 10/15/2027(c) | | 500,000 | 441,612 |
| 4.63%, 08/01/2029(c) | | 557,000 | 433,765 |
| Omega Healthcare Investors, Inc., 5.25%, 01/15/2026 | | 120,000 | 120,137 |
| | | | 995,514 |
| Health Care Services–0.29% |
| CommonSpirit Health, | | |
| 1.55%, 10/01/2025 | | 64,000 | 62,169 |
| 6.07%, 11/01/2027 | | 460,000 | 476,332 |
| Community Health Systems, Inc., | | |
| 5.63%, 03/15/2027(f) | | 597,000 | 582,751 |
| 5.25%, 05/15/2030(f) | | 636,000 | 555,541 |
| CVS Health Corp., | | |
| 2.88%, 06/01/2026 | | 230,000 | 222,915 |
| 4.30%, 03/25/2028(c) | | 500,000 | 487,559 |
| Prime Healthcare Services, Inc., 9.38%, 09/01/2029(f) | | 400,000 | 406,818 |
| | | | 2,794,085 |
| Health Care Supplies–0.06% |
| Embecta Corp., 5.00%, 02/15/2030(f) | | 700,000 | 634,146 |
| Health Care Technology–0.08% |
| athenahealth Group, Inc., 6.50%, 02/15/2030(f) | | 858,000 | 812,065 |
| Home Furnishings–0.07% |
| Tempur Sealy International, Inc., 3.88%, 10/15/2031(c)(f) | | 767,000 | 668,003 |
| Home Improvement Retail–0.06% |
| Home Depot, Inc. (The), 2.50%, 04/15/2027 | | 80,000 | 76,637 |
| Lowe’s Cos., Inc., 4.80%, 04/01/2026 | | 474,000 | 475,340 |
| | | | 551,977 |
| Homebuilding–0.28% |
| Beazer Homes USA, Inc., 5.88%, 10/15/2027 | | 305,000 | 303,749 |
| DR Horton, Inc., 2.60%, 10/15/2025(c) | | 920,000 | 902,445 |
| Installed Building Products, Inc., 5.75%, 02/01/2028(f) | | 300,000 | 298,084 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Multi-Asset Income Fund |
| | | Principal
Amount | Value |
| Homebuilding–(continued) |
| Lennar Corp., 4.75%, 11/29/2027 | | | $60,000 | $60,055 |
| LGI Homes, Inc., 4.00%, 07/15/2029(f) | | | 508,000 | 455,278 |
| Taylor Morrison Communities, Inc., | | | |
| 5.88%, 06/15/2027(f) | | | 640,000 | 644,099 |
| 5.75%, 01/15/2028(f) | | | 100,000 | 100,105 |
| | | | | 2,763,815 |
| Hotel & Resort REITs–0.07% |
| Host Hotels & Resorts L.P., Series F, 4.50%, 02/01/2026 | | | 50,000 | 49,719 |
| Service Properties Trust, | | | |
| 4.95%, 02/15/2027 | | | 197,000 | 183,665 |
| 4.95%, 10/01/2029(c) | | | 505,000 | 404,103 |
| | | | | 637,487 |
| Hotels, Resorts & Cruise Lines–0.15% |
| Booking Holdings, Inc., 3.55%, 03/15/2028 | | | 50,000 | 48,475 |
| Carnival Corp., 6.65%, 01/15/2028 | | | 200,000 | 203,967 |
| Royal Caribbean Cruises Ltd., 4.25%, 07/01/2026(f) | | | 540,000 | 530,101 |
| Studio City Co. Ltd. (Macau), 7.00%, 02/15/2027(f) | | | 200,000 | 201,382 |
| Travel + Leisure Co., 6.60%, 10/01/2025 | | | 444,000 | 447,635 |
| | | | | 1,431,560 |
| Housewares & Specialties–0.09% |
| Newell Brands, Inc., | | | |
| 6.38%, 09/15/2027(c) | | | 456,000 | 462,275 |
| 6.63%, 09/15/2029(c) | | | 436,000 | 442,893 |
| | | | | 905,168 |
| Human Resource & Employment Services–0.10% |
| AMN Healthcare, Inc., 4.00%, 04/15/2029(f) | | | 1,015,000 | 936,325 |
| Independent Power Producers & Energy Traders–0.04% |
| AES Corp. (The), 5.45%, 06/01/2028(c) | | | 80,000 | 80,800 |
| Calpine Corp., 4.50%, 02/15/2028(f) | | | 300,000 | 289,136 |
| | | | | 369,936 |
| Industrial Machinery & Supplies & Components–0.01% |
| Stanley Black & Decker, Inc., 3.40%, 03/01/2026 | | | 80,000 | 78,552 |
| Insurance Brokers–0.09% |
| Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 6.75%, 10/15/2027(f) | | | 349,000 | 348,004 |
| Ardonagh Finco Ltd. (United Kingdom), 7.75%, 02/15/2031(f) | | | 400,000 | 410,476 |
| Willis North America, Inc., 4.65%, 06/15/2027 | | | 75,000 | 74,763 |
| | | | | 833,243 |
| | Principal
Amount | Value |
| Integrated Oil & Gas–0.09% |
| Chevron USA, Inc., 1.02%, 08/12/2027 | | $100,000 | $91,440 |
| Delek Logistics Partners L.P./Delek Logistics Finance Corp., 8.63%, 03/15/2029(f) | | 765,000 | 785,484 |
| Exxon Mobil Corp., 3.29%, 03/19/2027 | | 50,000 | 49,019 |
| | | | 925,943 |
| Integrated Telecommunication Services–0.25% |
| Altice France S.A. (France), | | |
| 8.13%, 02/01/2027(f) | | 353,000 | 292,635 |
| 5.13%, 07/15/2029(f) | | 551,000 | 412,748 |
| 5.50%, 10/15/2029(f) | | 200,000 | 149,977 |
| British Telecommunications PLC (United Kingdom), 5.13%, 12/04/2028 | | 400,000 | 403,827 |
| CommScope LLC, 6.00%, 03/01/2026(f) | | 329,000 | 321,583 |
| Consolidated Communications, Inc., 6.50%, 10/01/2028(f) | | 292,000 | 277,796 |
| Iliad Holding S.A.S. (France), 6.50%, 10/15/2026(f) | | 629,000 | 634,518 |
| | | | 2,493,084 |
| Interactive Home Entertainment–0.02% |
| Jacobs Entertainment, Inc., 6.75%, 02/15/2029(f) | | 181,000 | 178,297 |
| Interactive Media & Services–0.06% |
| Baidu, Inc. (China), 4.38%, 03/29/2028 | | 300,000 | 296,413 |
| Nexstar Media, Inc., 5.63%, 07/15/2027(f) | | 268,000 | 263,592 |
| | | | 560,005 |
| Internet Services & Infrastructure–0.09% |
| Arches Buyer, Inc., 4.25%, 06/01/2028(c)(f) | | 650,000 | 596,732 |
| Cogent Communications Group, Inc., 3.50%, 05/01/2026(f) | | 261,000 | 253,928 |
| | | | 850,660 |
| Investment Banking & Brokerage–0.46% |
| Brookfield Finance, Inc. (Canada), 3.90%, 01/25/2028 | | 400,000 | 390,281 |
| Charles Schwab Corp. (The), 6.20%, 11/17/2029(c)(g) | | 500,000 | 525,466 |
| Goldman Sachs Group, Inc. (The), | | |
| 3.85%, 01/26/2027 | | 125,000 | 122,604 |
| 1.54%, 09/10/2027(g) | | 140,000 | 131,915 |
| 1.95%, 10/21/2027(g) | | 375,000 | 354,655 |
| 3.62%, 03/15/2028(g) | | 105,000 | 102,148 |
| Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | | |
| 6.25%, 05/15/2026 | | 499,000 | 490,914 |
| 5.25%, 05/15/2027(c) | | 580,000 | 540,906 |
| 4.38%, 02/01/2029(c) | | 400,000 | 334,144 |
| Morgan Stanley, | | |
| 3.63%, 01/20/2027 | | 130,000 | 127,578 |
| 1.59%, 05/04/2027(g) | | 110,000 | 104,895 |
| 6.30%, 10/18/2028(g) | | 600,000 | 625,213 |
| 6.41%, 11/01/2029(g) | | 460,000 | 484,512 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Investment Banking & Brokerage–(continued) |
| Nomura Holdings, Inc. (Japan), 1.65%, 07/14/2026 | | $200,000 | $189,342 |
| | | | 4,524,573 |
| IT Consulting & Other Services–0.27% |
| Conduent Business Services LLC/Conduent State & Local Solutions, Inc., 6.00%, 11/01/2029(f) | | 193,000 | 183,467 |
| EquipmentShare.com, Inc., 9.00%, 05/15/2028(f) | | 617,000 | 638,771 |
| International Business Machines Corp., | | |
| 3.45%, 02/19/2026 | | 150,000 | 147,994 |
| 3.30%, 05/15/2026 | | 100,000 | 98,158 |
| Kyndryl Holdings, Inc., | | |
| 2.05%, 10/15/2026 | | 200,000 | 189,489 |
| 2.70%, 10/15/2028(c) | | 920,000 | 839,499 |
| Unisys Corp., 6.88%, 11/01/2027(f) | | 580,000 | 567,589 |
| | | | 2,664,967 |
| Leisure Facilities–0.10% |
| Life Time, Inc., 5.75%, 01/15/2026(f) | | 366,000 | 366,027 |
| NCL Corp. Ltd., 5.88%, 02/15/2027(f) | | 634,000 | 633,771 |
| | | | 999,798 |
| Leisure Products–0.02% |
| Amer Sports Co. (Finland), 6.75%, 02/16/2031(f) | | 200,000 | 203,343 |
| Life & Health Insurance–0.15% |
| Brighthouse Financial, Inc., 3.70%, 06/22/2027 | | 460,000 | 445,997 |
| Genworth Holdings, Inc., 6.50%, 06/15/2034 | | 640,000 | 635,232 |
| Globe Life, Inc., 4.55%, 09/15/2028(c) | | 400,000 | 394,804 |
| | | | 1,476,033 |
| Life Sciences Tools & Services–0.04% |
| IQVIA, Inc., 5.00%, 05/15/2027(f) | | 419,000 | 413,983 |
| Managed Health Care–0.01% |
| Centene Corp., 2.45%, 07/15/2028 | | 60,000 | 54,052 |
| Marine Transportation–0.03% |
| Seaspan Corp. (Hong Kong), 5.50%, 08/01/2029(f) | | 276,000 | 262,790 |
| Metal, Glass & Plastic Containers–0.04% |
| Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 4.13%, 08/15/2026(f) | | 143,000 | 124,558 |
| OI European Group B.V., 4.75%, 02/15/2030(f) | | 280,000 | 253,913 |
| | | | 378,471 |
| | | Principal
Amount | Value |
| Mortgage REITs–0.02% |
| Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.25%, 02/01/2027(f) | | | $200,000 | $193,782 |
| Movies & Entertainment–0.14% |
| Live Nation Entertainment, Inc., 6.50%, 05/15/2027(f) | | | 326,000 | 330,736 |
| Odeon Finco PLC (United Kingdom), 12.75%, 11/01/2027(f) | | | 617,000 | 650,036 |
| TWDC Enterprises 18 Corp., | | | |
| 1.85%, 07/30/2026 | | | 200,000 | 191,343 |
| 2.95%, 06/15/2027 | | | 200,000 | 192,476 |
| | | | | 1,364,591 |
| Multi-Family Residential REITs–0.05% |
| Mid-America Apartments L.P., 3.60%, 06/01/2027 | | | 460,000 | 449,619 |
| Multi-line Insurance–0.04% |
| Acrisure LLC/Acrisure Finance, Inc., 7.50%, 11/06/2030(f) | | | 280,000 | 284,933 |
| Boardwalk Pipelines L.P., 5.95%, 06/01/2026 | | | 94,000 | 95,101 |
| | | | | 380,034 |
| Multi-Utilities–0.26% |
| AEP Texas, Inc., 3.95%, 06/01/2028 | | | 700,000 | 679,531 |
| Algonquin Power & Utilities Corp. (Canada), 4.75%, 01/18/2082(g) | | | 1,037,000 | 971,844 |
| Sempra, 3.25%, 06/15/2027 | | | 920,000 | 884,276 |
| | | | | 2,535,651 |
| Office REITs–0.09% |
| Boston Properties L.P., 4.50%, 12/01/2028 | | | 100,000 | 97,150 |
| Highwoods Realty L.P., 4.20%, 04/15/2029 | | | 260,000 | 246,773 |
| Office Properties Income Trust, 9.00%, 09/30/2029(f) | | | 635,000 | 537,117 |
| | | | | 881,040 |
| Office Services & Supplies–0.19% |
| ACCO Brands Corp., 4.25%, 03/15/2029(c)(f) | | | 870,000 | 799,071 |
| Pitney Bowes, Inc., | | | |
| 6.88%, 03/15/2027(f) | | | 378,000 | 374,335 |
| 7.25%, 03/15/2029(c)(f) | | | 350,000 | 345,074 |
| Steelcase, Inc., 5.13%, 01/18/2029(c) | | | 353,000 | 340,577 |
| | | | | 1,859,057 |
| Oil & Gas Drilling–0.12% |
| Nabors Industries, Inc., | | | |
| 7.38%, 05/15/2027(c)(f) | | | 290,000 | 290,446 |
| 9.13%, 01/31/2030(c)(f) | | | 483,000 | 499,242 |
| Rockies Express Pipeline LLC, 7.50%, 07/15/2038(f) | | | 366,000 | 374,001 |
| | | | | 1,163,689 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Multi-Asset Income Fund |
| | | Principal
Amount | Value |
| Oil & Gas Equipment & Services–0.07% |
| Baker Hughes Holdings LLC/Baker Hughes Co-Obligor, Inc., 3.34%, 12/15/2027 | | | $155,000 | $149,256 |
| Enerflex Ltd. (Canada), 9.00%, 10/15/2027(f) | | | 540,000 | 562,438 |
| | | | | 711,694 |
| Oil & Gas Exploration & Production–0.53% |
| Baytex Energy Corp. (Canada), 8.50%, 04/30/2030(c)(f) | | | 405,000 | 412,402 |
| California Resources Corp., 8.25%, 06/15/2029(f) | | | 310,000 | 313,319 |
| Civitas Resources, Inc., 5.00%, 10/15/2026(f) | | | 297,000 | 291,933 |
| Comstock Resources, Inc., | | | |
| 6.75%, 03/01/2029(c)(f) | | | 500,000 | 479,162 |
| 5.88%, 01/15/2030(c)(f) | | | 649,000 | 593,529 |
| ConocoPhillips Co., 6.95%, 04/15/2029 | | | 690,000 | 756,592 |
| Crescent Energy Finance LLC, | | | |
| 9.25%, 02/15/2028(c)(f) | | | 285,000 | 299,293 |
| 7.63%, 04/01/2032(c)(f) | | | 300,000 | 296,448 |
| Devon Energy Corp., 5.25%, 10/15/2027 | | | 75,000 | 75,346 |
| Hilcorp Energy I L.P./Hilcorp Finance Co., | | | |
| 8.38%, 11/01/2033(f) | | | 490,000 | 512,678 |
| 6.88%, 05/15/2034(f) | | | 400,000 | 383,177 |
| Pioneer Natural Resources Co., 1.13%, 01/15/2026 | | | 230,000 | 221,021 |
| SM Energy Co., | | | |
| 6.63%, 01/15/2027 | | | 293,000 | 293,170 |
| 6.75%, 08/01/2029(c)(f) | | | 300,000 | 298,385 |
| | | | | 5,226,455 |
| Oil & Gas Refining & Marketing–0.11% |
| HF Sinclair Corp., 5.88%, 04/01/2026 | | | 94,000 | 94,921 |
| NuStar Logistics L.P., | | | |
| 6.00%, 06/01/2026 | | | 422,000 | 422,626 |
| 5.63%, 04/28/2027 | | | 555,000 | 551,108 |
| | | | | 1,068,655 |
| Oil & Gas Storage & Transportation–0.55% |
| Cheniere Corpus Christi Holdings LLC, 5.13%, 06/30/2027 | | | 125,000 | 125,826 |
| Enbridge, Inc. (Canada), 4.25%, 12/01/2026 | | | 230,000 | 228,114 |
| Energy Transfer L.P., | | | |
| 4.40%, 03/15/2027 | | | 60,000 | 59,520 |
| 5.50%, 06/01/2027 | | | 50,000 | 50,773 |
| 4.95%, 06/15/2028 | | | 230,000 | 230,561 |
| ITT Holdings LLC, 6.50%, 08/01/2029(f) | | | 417,000 | 385,762 |
| New Fortress Energy, Inc., 6.50%, 09/30/2026(c)(f) | | | 617,000 | 572,025 |
| NGL Energy Operating LLC/NGL Energy Finance Corp., | | | |
| 8.13%, 02/15/2029(f) | | | 200,000 | 201,423 |
| 8.38%, 02/15/2032(c)(f) | | | 670,000 | 675,673 |
| ONEOK, Inc., 5.65%, 11/01/2028 | | | 100,000 | 102,736 |
| | | Principal
Amount | Value |
| Oil & Gas Storage & Transportation–(continued) |
| Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., 6.00%, 03/01/2027(f) | | | $200,000 | $198,648 |
| TransCanada PipeLines Ltd. (Canada), 4.25%, 05/15/2028 | | | 300,000 | 294,469 |
| Venture Global LNG, Inc., | | | |
| 9.50%, 02/01/2029(f) | | | 636,000 | 703,372 |
| 8.38%, 06/01/2031(c)(f) | | | 746,000 | 775,426 |
| 9.88%, 02/01/2032(f) | | | 712,000 | 777,612 |
| | | | | 5,381,940 |
| Other Specialized REITs–0.02% |
| EPR Properties, 4.75%, 12/15/2026 | | | 75,000 | 74,358 |
| Iron Mountain, Inc., 4.88%, 09/15/2027(f) | | | 168,000 | 165,224 |
| | | | | 239,582 |
| Other Specialty Retail–0.17% |
| Bath & Body Works, Inc., 6.69%, 01/15/2027 | | | 490,000 | 502,023 |
| Michaels Cos., Inc. (The), 5.25%, 05/01/2028(c)(f) | | | 237,000 | 170,839 |
| PetSmart, Inc./PetSmart Finance Corp., | | | |
| 4.75%, 02/15/2028(f) | | | 452,000 | 430,185 |
| 7.75%, 02/15/2029(f) | | | 372,000 | 361,462 |
| Victra Holdings LLC/Victra Finance Corp., 7.75%, 02/15/2026(f) | | | 247,000 | 249,523 |
| | | | | 1,714,032 |
| Packaged Foods & Meats–0.10% |
| Conagra Brands, Inc., 1.38%, 11/01/2027 | | | 300,000 | 271,588 |
| McCormick & Co., Inc., 3.40%, 08/15/2027 | | | 230,000 | 222,847 |
| TKC Holdings, Inc., 6.88%, 05/15/2028(c)(f) | | | 330,000 | 325,230 |
| Tyson Foods, Inc., 4.00%, 03/01/2026 | | | 127,000 | 125,639 |
| | | | | 945,304 |
| Paper & Plastic Packaging Products & Materials–0.26% |
| Berry Global, Inc., 1.57%, 01/15/2026 | | | 80,000 | 76,815 |
| Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 02/01/2026 | | | 879,000 | 873,278 |
| LABL, Inc., 5.88%, 11/01/2028(f) | | | 266,000 | 247,463 |
| Mauser Packaging Solutions Holding Co., 9.25%, 04/15/2027(f) | | | 205,000 | 209,824 |
| Sealed Air Corp., | | | |
| 6.13%, 02/01/2028(f) | | | 184,000 | 186,085 |
| 6.88%, 07/15/2033(c)(f) | | | 430,000 | 455,902 |
| WRKCo, Inc., 4.65%, 03/15/2026(c) | | | 460,000 | 458,168 |
| | | | | 2,507,535 |
| Paper Products–0.07% |
| Domtar Corp., 6.75%, 10/01/2028(f) | | | 699,000 | 639,941 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Passenger Airlines–0.32% |
| Air Canada (Canada), 3.88%, 08/15/2026(f) | | $400,000 | $387,278 |
| Air Canada Pass-Through Trust (Canada), Series 2020-1, Class C, 10.50%, 07/15/2026(f) | | 53,000 | 56,644 |
| Allegiant Travel Co., 7.25%, 08/15/2027(c)(f) | | 410,000 | 404,253 |
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.50%, 04/20/2026(f) | | 290,000 | 289,340 |
| Cargo Aircraft Management, Inc., 4.75%, 02/01/2028(c)(f) | | 434,000 | 414,493 |
| JetBlue Airways Corp./JetBlue Loyalty L.P., 9.88%, 09/20/2031(c)(f) | | 300,000 | 311,971 |
| Southwest Airlines Co., | | |
| 3.00%, 11/15/2026 | | 380,000 | 366,773 |
| 3.45%, 11/16/2027 | | 125,000 | 119,687 |
| United AirLines, Inc., 4.38%, 04/15/2026(f) | | 799,000 | 785,701 |
| | | | 3,136,140 |
| Pharmaceuticals–0.45% |
| AdaptHealth LLC, 5.13%, 03/01/2030(c)(f) | | 683,000 | 626,271 |
| AstraZeneca PLC (United Kingdom), 4.00%, 01/17/2029 | | 920,000 | 901,804 |
| Bausch Health Cos., Inc., 5.50%, 11/01/2025(f) | | 465,000 | 456,893 |
| Bristol-Myers Squibb Co., | | |
| 0.75%, 11/13/2025 | | 100,000 | 96,248 |
| 3.45%, 11/15/2027 | | 230,000 | 224,288 |
| 3.90%, 02/20/2028(c) | | 1,150,000 | 1,129,146 |
| Cheplapharm Arzneimittel GmbH (Germany), 5.50%, 01/15/2028(f) | | 400,000 | 386,221 |
| Organon & Co./Organon Foreign Debt Co-Issuer B.V., 6.75%, 05/15/2034(c)(f) | | 400,000 | 401,259 |
| Utah Acquisition Sub, Inc., 3.95%, 06/15/2026 | | 134,000 | 131,871 |
| Viatris, Inc., 2.30%, 06/22/2027 | | 85,000 | 79,267 |
| | | | 4,433,268 |
| Property & Casualty Insurance–0.05% |
| Fairfax Financial Holdings Ltd. (Canada), 4.85%, 04/17/2028 | | 75,000 | 74,703 |
| Hanover Insurance Group, Inc. (The), 4.50%, 04/15/2026 | | 230,000 | 228,574 |
| Loews Corp., 3.75%, 04/01/2026 | | 190,000 | 187,805 |
| | | | 491,082 |
| Rail Transportation–0.02% |
| CSX Corp., 3.25%, 06/01/2027 | | 230,000 | 223,262 |
| Real Estate Development–0.04% |
| Forestar Group, Inc., 3.85%, 05/15/2026(f) | | 388,000 | 378,507 |
| | Principal
Amount | Value |
| Real Estate Services–0.15% |
| Anywhere Real Estate Group LLC/Anywhere Co-Issuer Corp., 7.00%, 04/15/2030(c)(f) | | $614,254 | $538,924 |
| Newmark Group, Inc., 7.50%, 01/12/2029 | | 845,000 | 895,337 |
| | | | 1,434,261 |
| Regional Banks–0.23% |
| M&T Bank Corp., 7.41%, 10/30/2029(c)(g) | | 500,000 | 538,451 |
| Santander Holdings USA, Inc., | | |
| 2.49%, 01/06/2028(g) | | 100,000 | 94,316 |
| 6.50%, 03/09/2029(c)(g) | | 380,000 | 391,843 |
| Truist Bank, 3.30%, 05/15/2026 | | 920,000 | 898,740 |
| Truist Financial Corp., 4.87%, 01/26/2029(g) | | 100,000 | 99,653 |
| Verde Purchaser LLC, 10.50%, 11/30/2030(f) | | 235,000 | 251,126 |
| | | | 2,274,129 |
| Reinsurance–0.12% |
| Axis Specialty Finance PLC, 4.00%, 12/06/2027 | | 200,000 | 194,327 |
| Global Atlantic (Fin) Co., 4.70%, 10/15/2051(f)(g) | | 992,000 | 951,876 |
| | | | 1,146,203 |
| Research & Consulting Services–0.04% |
| Equifax, Inc., 2.60%, 12/15/2025 | | 230,000 | 224,561 |
| KBR, Inc., 4.75%, 09/30/2028(f) | | 200,000 | 191,515 |
| | | | 416,076 |
| Restaurants–0.05% |
| Darden Restaurants, Inc., 3.85%, 05/01/2027(c) | | 460,000 | 450,154 |
| Retail REITs–0.19% |
| Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC, | | |
| 5.75%, 05/15/2026(c)(f) | | 438,000 | 434,050 |
| 4.50%, 04/01/2027(c)(f) | | 321,000 | 309,636 |
| Kite Realty Group L.P., 4.00%, 10/01/2026 | | 400,000 | 392,484 |
| Necessity Retail REIT, Inc. (The)/American Finance Operating Partner L.P., 4.50%, 09/30/2028(c)(f) | | 594,000 | 547,674 |
| Realty Income Corp., 4.88%, 06/01/2026 | | 80,000 | 80,240 |
| Simon Property Group L.P., 3.30%, 01/15/2026 | | 64,000 | 62,998 |
| | | | 1,827,082 |
| Security & Alarm Services–0.11% |
| CoreCivic, Inc., | | |
| 4.75%, 10/15/2027 | | 327,000 | 312,622 |
| 8.25%, 04/15/2029(c) | | 280,000 | 294,463 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Security & Alarm Services–(continued) |
| Prime Security Services Borrower LLC/Prime Finance, Inc., 5.75%, 04/15/2026(f) | | $514,000 | $514,617 |
| | | | 1,121,702 |
| Semiconductors–0.14% |
| ams-OSRAM AG (Austria), 12.25%, 03/30/2029(f) | | 279,000 | 290,015 |
| Intel Corp., | | |
| 3.15%, 05/11/2027 | | 230,000 | 220,637 |
| 3.75%, 08/05/2027 | | 300,000 | 291,085 |
| Skyworks Solutions, Inc., 1.80%, 06/01/2026 | | 600,000 | 571,182 |
| | | | 1,372,919 |
| Single-Family Residential REITs–0.02% |
| Tanger Properties L.P., 3.13%, 09/01/2026 | | 230,000 | 221,465 |
| Soft Drinks & Non-alcoholic Beverages–0.09% |
| Keurig Dr Pepper, Inc., 2.55%, 09/15/2026 | | 250,000 | 240,601 |
| PepsiCo Singapore Financing I Pte. Ltd., 4.65%, 02/16/2027 | | 600,000 | 603,922 |
| | | | 844,523 |
| Specialized Consumer Services–0.04% |
| Sotheby’s, 7.38%, 10/15/2027(c)(f) | | 430,000 | 420,635 |
| Specialized Finance–0.04% |
| Blackstone Private Credit Fund, 3.25%, 03/15/2027 | | 235,000 | 222,630 |
| Jefferson Capital Holdings LLC, 6.00%, 08/15/2026(f) | | 171,000 | 170,571 |
| | | | 393,201 |
| Specialty Chemicals–0.10% |
| PPG Industries, Inc., 1.20%, 03/15/2026 | | 67,000 | 63,864 |
| SCIL IV LLC/SCIL USA Holdings LLC, 5.38%, 11/01/2026(f) | | 582,000 | 575,482 |
| WR Grace Holdings LLC, 5.63%, 08/15/2029(f) | | 400,000 | 369,857 |
| | | | 1,009,203 |
| Steel–0.15% |
| ArcelorMittal S.A. (Luxembourg), 4.55%, 03/11/2026 | | 264,000 | 262,973 |
| Cleveland-Cliffs, Inc., | | |
| 6.75%, 04/15/2030(f) | | 269,000 | 269,061 |
| 4.88%, 03/01/2031(f) | | 400,000 | 369,460 |
| 7.00%, 03/15/2032(f) | | 210,000 | 210,500 |
| Nucor Corp., 3.95%, 05/01/2028 | | 100,000 | 97,793 |
| SunCoke Energy, Inc., 4.88%, 06/30/2029(f) | | 300,000 | 271,171 |
| | | | 1,480,958 |
| Systems Software–0.07% |
| Gen Digital, Inc., 6.75%, 09/30/2027(f) | | 294,000 | 299,288 |
| | | Principal
Amount | Value |
| Systems Software–(continued) |
| McAfee Corp., 7.38%, 02/15/2030(f) | | | $310,000 | $299,123 |
| VMware LLC, 4.65%, 05/15/2027 | | | 130,000 | 129,854 |
| | | | | 728,265 |
| Technology Distributors–0.03% |
| Avnet, Inc., | | | |
| 4.63%, 04/15/2026 | | | 75,000 | 74,602 |
| 6.25%, 03/15/2028 | | | 230,000 | 237,690 |
| | | | | 312,292 |
| Technology Hardware, Storage & Peripherals–0.19% |
| Apple, Inc., | | | |
| 3.25%, 02/23/2026 | | | 150,000 | 147,952 |
| 2.05%, 09/11/2026(c) | | | 750,000 | 719,979 |
| 3.20%, 05/11/2027 | | | 135,000 | 131,549 |
| Western Digital Corp., 4.75%, 02/15/2026 | | | 438,000 | 433,139 |
| Xerox Holdings Corp., 5.50%, 08/15/2028(f) | | | 483,000 | 396,529 |
| | | | | 1,829,148 |
| Telecom Tower REITs–0.21% |
| American Tower Corp., | | | |
| 1.30%, 09/15/2025 | | | 134,000 | 129,955 |
| 3.65%, 03/15/2027(c) | | | 305,000 | 297,503 |
| 3.55%, 07/15/2027 | | | 105,000 | 101,790 |
| Crown Castle, Inc., | | | |
| 3.65%, 09/01/2027 | | | 230,000 | 222,693 |
| 4.80%, 09/01/2028(c) | | | 460,000 | 458,064 |
| 4.30%, 02/15/2029(c) | | | 400,000 | 389,402 |
| SBA Communications Corp., 3.88%, 02/15/2027 | | | 481,000 | 465,857 |
| | | | | 2,065,264 |
| Tires & Rubber–0.05% |
| Goodyear Tire & Rubber Co. (The), 4.88%, 03/15/2027(c) | | | 465,000 | 449,096 |
| Tobacco–0.11% |
| Altria Group, Inc., 4.40%, 02/14/2026 | | | 134,000 | 133,351 |
| B.A.T Capital Corp. (United Kingdom), 3.22%, 09/06/2026 | | | 134,000 | 130,344 |
| B.A.T. International Finance PLC (United Kingdom), 1.67%, 03/25/2026 | | | 460,000 | 440,557 |
| Philip Morris International, Inc., | | | |
| 4.88%, 02/15/2028 | | | 160,000 | 160,866 |
| 3.13%, 03/02/2028 | | | 230,000 | 219,020 |
| | | | | 1,084,138 |
| Trading Companies & Distributors–0.07% |
| Air Lease Corp., 4.63%, 10/01/2028 | | | 90,000 | 89,106 |
| Herc Holdings, Inc., 5.50%, 07/15/2027(c)(f) | | | 620,000 | 616,398 |
| | | | | 705,504 |
| Transaction & Payment Processing Services–0.11% |
| Block, Inc., 2.75%, 06/01/2026 | | | 276,000 | 265,985 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Transaction & Payment Processing Services–(continued) |
| Global Payments, Inc., 2.15%, 01/15/2027 | | $110,000 | $103,969 |
| NCR Atleos Corp., 9.50%, 04/01/2029(f) | | 615,000 | 677,395 |
| Western Union Co. (The), 1.35%, 03/15/2026 | | 75,000 | 71,340 |
| | | | 1,118,689 |
| Water Utilities–0.08% |
| United Utilities PLC (United Kingdom), 6.88%, 08/15/2028 | | 700,000 | 748,433 |
| Wireless Telecommunication Services–0.01% |
| Sprint Capital Corp., 6.88%, 11/15/2028 | | 70,000 | 75,136 |
| Total U.S. Dollar Denominated Bonds & Notes (Cost $190,619,793) | 192,371,941 |
| Non-U.S. Dollar Denominated Bonds & Notes–3.80%(i) |
| Advertising–0.01% |
| MMS USA Holdings, Inc. (France), 1.25%, 06/13/2028(f) | EUR | 100,000 | 102,150 |
| Agricultural & Farm Machinery–0.03% |
| CNH Industrial Finance Europe S.A., 1.63%, 07/03/2029(f) | EUR | 330,000 | 334,097 |
| Apparel, Accessories & Luxury Goods–0.01% |
| PVH Corp., 3.13%, 12/15/2027(f) | EUR | 100,000 | 107,962 |
| Application Software–0.03% |
| Dassault Systemes SE (France), 0.13%, 09/16/2026(f) | EUR | 300,000 | 310,082 |
| Automobile Manufacturers–0.18% |
| American Honda Finance Corp., 0.30%, 07/07/2028 | EUR | 480,000 | 471,999 |
| Nissan Motor Co. Ltd. (Japan), 2.65%, 03/17/2026(f) | EUR | 560,000 | 601,853 |
| RCI Banque S.A. (France), 3.88%, 01/12/2029(f) | EUR | 200,000 | 220,834 |
| Volkswagen Financial Services Overseas AG (Germany), | | |
| 0.13%, 02/12/2027(f) | EUR | 90,000 | 91,440 |
| 2.25%, 10/01/2027(f) | EUR | 49,000 | 51,829 |
| Volkswagen Leasing GmbH (Germany), | | |
| 0.38%, 07/20/2026(f) | EUR | 85,000 | 88,244 |
| 4.63%, 03/25/2029(f) | EUR | 200,000 | 226,034 |
| | | | 1,752,233 |
| Automotive Parts & Equipment–0.02% |
| Daimler Truck International Finance B.V. (Germany), 3.88%, 06/19/2029(f) | EUR | 200,000 | 223,970 |
| Automotive Retail–0.01% |
| Leasys S.p.A. (Italy), 4.63%, 02/16/2027(f) | EUR | 110,000 | 123,099 |
| Brewers–0.04% |
| Anheuser-Busch InBev S.A./N.V. (Belgium), 2.00%, 03/17/2028(f) | EUR | 100,000 | 106,247 |
| | Principal
Amount | Value |
| Brewers–(continued) |
| Carlsberg Breweries A/S (Denmark), | | |
| 3.50%, 11/26/2026(f) | EUR | 110,000 | $121,067 |
| 0.88%, 07/01/2029(f) | EUR | 110,000 | 108,160 |
| | | | 335,474 |
| Broadcasting–0.03% |
| Discovery Communications LLC, 1.90%, 03/19/2027 | EUR | 110,000 | 116,762 |
| TDF Infrastructure S.A.S.U. (France), 2.50%, 04/07/2026(f) | EUR | 200,000 | 215,977 |
| | | | 332,739 |
| Cable & Satellite–0.01% |
| SES S.A. (Luxembourg), 1.63%, 03/22/2026(f) | EUR | 120,000 | 127,509 |
| Casinos & Gaming–0.01% |
| Codere Finance 2 (Luxembourg) S.A. (Spain), 3.00% PIK Rate, 8.00% Cash Rate, 09/30/2026(f)(h) | EUR | 216,503 | 105,976 |
| Commercial & Residential Mortgage Finance–0.04% |
| Aareal Bank AG (Germany), 0.50%, 04/07/2027(f) | EUR | 100,000 | 101,654 |
| Berlin Hyp AG (Germany), 0.38%, 01/25/2027(f) | EUR | 300,000 | 309,066 |
| | | | 410,720 |
Construction Machinery & Heavy Transportation Equipment–
0.03% |
| Knorr-Bremse AG (Germany), 3.25%, 09/21/2027(f) | EUR | 300,000 | 329,097 |
| Construction Materials–0.04% |
| Danfoss Finance I B.V. (Denmark), 0.38%, 10/28/2028(f) | EUR | 100,000 | 97,120 |
| Heidelberg Materials Finance (Luxembourg) S.A. (Germany), 1.63%, 04/07/2026(f) | EUR | 60,000 | 64,195 |
| Holcim Finance (Luxembourg) S.A. (Switzerland), 0.50%, 11/29/2026(f) | EUR | 200,000 | 207,286 |
| | | | 368,601 |
| Consumer Electronics–0.04% |
| Whirlpool Finance (Luxembourg) S.a.r.l., 1.10%, 11/09/2027 | EUR | 340,000 | 347,426 |
| Consumer Finance–0.07% |
| CA Auto Bank S.p.A. (Italy), 4.38%, 06/08/2026(f) | EUR | 200,000 | 221,121 |
| General Motors Financial Co., Inc., 0.65%, 09/07/2028(f) | EUR | 480,000 | 474,031 |
| | | | 695,152 |
| Diversified Banks–1.11% |
| ANZ New Zealand (Int’l) Ltd. (New Zealand), 0.20%, 09/23/2027(f) | EUR | 230,000 | 231,606 |
| ASB Bank Ltd. (New Zealand), 0.25%, 09/08/2028(f) | EUR | 200,000 | 195,699 |
| Banco BPM S.p.A. (Italy), 4.63%, 11/29/2027(f) | EUR | 300,000 | 339,178 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Diversified Banks–(continued) |
| Banco Santander S.A. (Spain), | | |
| 3.13%, 01/19/2027(f) | EUR | 100,000 | $108,771 |
| 3.88%, 04/22/2029(f) | EUR | 200,000 | 221,826 |
| Bank of America Corp., 0.58%, 08/24/2028(f)(g) | EUR | 230,000 | 233,387 |
| Bankinter S.A. (Spain), 0.88%, 07/08/2026(f) | EUR | 100,000 | 105,132 |
| Banque Federative du Credit Mutuel S.A. (France), | | |
| 2.13%, 09/12/2026(f) | EUR | 100,000 | 106,399 |
| 1.63%, 11/15/2027(f) | EUR | 200,000 | 206,457 |
| 3.88%, 01/26/2028(f) | EUR | 300,000 | 332,029 |
| 4.13%, 03/13/2029(f) | EUR | 100,000 | 112,911 |
| BAWAG PSK Bank fuer Arbeit und Wirtschaft und Oesterreichische Postsparkasse AG (Austria), 0.38%, 09/03/2027(f) | EUR | 200,000 | 201,113 |
| BNP Paribas S.A. (France), | | |
| 1.50%, 11/17/2025(f) | EUR | 340,000 | 365,302 |
| 2.88%, 10/01/2026(f) | EUR | 100,000 | 108,260 |
| 0.25%, 04/13/2027(f)(g) | EUR | 100,000 | 104,426 |
| 0.50%, 02/19/2028(f)(g) | EUR | 300,000 | 306,750 |
| 1.50%, 05/25/2028(f) | EUR | 220,000 | 228,875 |
| Ceska sporitelna A.S. (Czech Republic), 5.94%, 06/29/2027(f)(g) | EUR | 300,000 | 339,445 |
| Citigroup, Inc., 1.50%, 07/24/2026(f)(g) | EUR | 320,000 | 344,550 |
| Credit Agricole S.A. (France), 1.13%, 02/24/2029(f) | EUR | 200,000 | 200,639 |
| Hamburg Commercial Bank AG (Germany), | | |
| 4.88%, 03/30/2027(f) | EUR | 220,000 | 247,021 |
| 4.75%, 05/02/2029(f) | EUR | 200,000 | 227,966 |
| ING Groep N.V. (Netherlands), 2.00%, 09/20/2028(f) | EUR | 200,000 | 208,469 |
| Intesa Sanpaolo S.p.A. (Italy), 4.50%, 10/02/2025(f) | EUR | 310,000 | 341,884 |
| Lloyds Bank Corporate Markets PLC (United Kingdom), 4.13%, 05/30/2027(f) | EUR | 200,000 | 223,546 |
| Mediobanca Banca di Credito Finanziario S.p.A. (Italy), 0.88%, 01/15/2026(f) | EUR | 250,000 | 265,054 |
| Muenchener Hypothekenbank eG (Germany), 0.88%, 09/12/2025(f) | EUR | 100,000 | 106,494 |
| NatWest Group PLC (United Kingdom), | | |
| 4.07%, 09/06/2028(f)(g) | EUR | 200,000 | 222,938 |
| 0.67%, 09/14/2029(f)(g) | EUR | 100,000 | 98,374 |
| NIBC Bank N.V. (Netherlands), 0.25%, 09/09/2026(f) | EUR | 100,000 | 103,311 |
| Nordea Bank Abp (Finland), 3.38%, 06/11/2029(f) | EUR | 110,000 | 121,528 |
| OP Corporate Bank PLC (Finland), 0.60%, 01/18/2027 | EUR | 100,000 | 103,241 |
| Raiffeisen Bank International AG (Austria), 5.75%, 01/27/2028(f) | EUR | 200,000 | 232,380 |
| Raiffeisen Schweiz Genossenschaft (Switzerland), 5.23%, 11/01/2027(f) | EUR | 400,000 | 459,630 |
| | Principal
Amount | Value |
| Diversified Banks–(continued) |
| Skandinaviska Enskilda Banken AB (Sweden), 0.75%, 08/09/2027(f) | EUR | 343,000 | $351,259 |
| Societe Generale S.A. (France), 4.25%, 09/28/2026(f) | EUR | 300,000 | 334,108 |
| SpareBank 1 Oestlandet (Norway), 0.13%, 03/03/2028(f) | EUR | 100,000 | 98,745 |
| Standard Chartered PLC (United Kingdom), | | |
| 0.90%, 07/02/2027(f)(g) | EUR | 100,000 | 104,969 |
| 0.80%, 11/17/2029(f)(g) | EUR | 480,000 | 471,074 |
| Svenska Handelsbanken AB (Sweden), 0.13%, 11/03/2026(f) | EUR | 110,000 | 113,387 |
| Swedbank AB (Sweden), | | |
| 0.25%, 11/02/2026(f) | EUR | 110,000 | 113,874 |
| 0.30%, 05/20/2027(f)(g) | EUR | 100,000 | 104,348 |
| 2.10%, 05/25/2027(f) | EUR | 220,000 | 235,470 |
| 4.13%, 11/13/2028(f) | EUR | 200,000 | 226,891 |
| Virgin Money UK PLC (United Kingdom), 4.63%, 10/29/2028(f)(g) | EUR | 300,000 | 338,770 |
| Wells Fargo & Co., 1.38%, 10/26/2026(f) | EUR | 390,000 | 411,432 |
| Westpac Banking Corp. (Australia), 1.45%, 07/17/2028(f) | EUR | 200,000 | 205,589 |
| Westpac Securities NZ Ltd. (New Zealand), 0.43%, 12/14/2026(f) | EUR | 340,000 | 351,575 |
| | | | 10,816,082 |
| Diversified Capital Markets–0.24% |
| Deutsche Bank AG (Germany), 2.63%, 02/12/2026(f) | EUR | 300,000 | 324,242 |
| Macquarie Group Ltd. (Australia), | | |
| 0.63%, 02/03/2027(f) | EUR | 100,000 | 103,238 |
| 0.94%, 01/19/2029(f) | EUR | 410,000 | 404,737 |
| Santander Consumer Finance S.A. (Spain), | | |
| 0.50%, 01/14/2027(f) | EUR | 400,000 | 412,415 |
| 3.75%, 01/17/2029(f) | EUR | 400,000 | 444,199 |
| UBS Group AG (Switzerland), | | |
| 0.25%, 02/24/2028(f) | EUR | 240,000 | 237,158 |
| 0.25%, 11/05/2028(f)(g) | EUR | 200,000 | 199,007 |
| 7.75%, 03/01/2029(f)(g) | EUR | 200,000 | 247,077 |
| | | | 2,372,073 |
| Diversified Chemicals–0.07% |
| BASF SE (Germany), | | |
| 0.88%, 11/15/2027(f) | EUR | 100,000 | 102,964 |
| 3.13%, 06/29/2028(f) | EUR | 100,000 | 109,659 |
| LANXESS AG (Germany), 1.75%, 03/22/2028(f) | EUR | 500,000 | 513,079 |
| | | | 725,702 |
| Diversified Financial Services–0.06% |
| JAB Holdings B.V. (Luxembourg), 1.00%, 12/20/2027(f) | EUR | 200,000 | 204,365 |
| NatWest Markets PLC (United Kingdom), 3.63%, 01/09/2029(f) | EUR | 100,000 | 110,904 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Diversified Financial Services–(continued) |
| Nykredit Realkredit A/S (Denmark), 4.00%, 07/17/2028(f) | EUR | 200,000 | $222,611 |
| | | | 537,880 |
| Diversified Metals & Mining–0.01% |
| Glencore Capital Finance DAC (Australia), 0.75%, 03/01/2029(f) | EUR | 110,000 | 107,222 |
| Diversified REITs–0.02% |
| Icade S.A. (France), 1.75%, 06/10/2026(f) | EUR | 200,000 | 213,221 |
| Electric Utilities–0.17% |
| Acciona Energia Financiacion Filiales S.A. (Spain), 0.38%, 10/07/2027(f) | EUR | 200,000 | 201,625 |
| AusNet Services Holdings Pty. Ltd. (Australia), 1.50%, 02/26/2027(f) | EUR | 100,000 | 105,297 |
| Duke Energy Corp., 3.10%, 06/15/2028 | EUR | 110,000 | 119,117 |
| EDP Finance B.V. (Portugal), | | |
| 0.38%, 09/16/2026(f) | EUR | 110,000 | 113,912 |
| 1.50%, 11/22/2027(f) | EUR | 100,000 | 104,303 |
| Elenia Verkko OYJ (Finland), 0.38%, 02/06/2027(f) | EUR | 470,000 | 479,060 |
| SSE PLC (United Kingdom), 0.88%, 09/06/2025(f) | EUR | 540,000 | 578,562 |
| | | | 1,701,876 |
| Electronic Components–0.05% |
| Corning, Inc., 3.88%, 05/15/2026 | EUR | 420,000 | 461,493 |
| Food Retail–0.01% |
| Alimentation Couche-Tard, Inc. (Canada), 1.88%, 05/06/2026(f) | EUR | 100,000 | 106,607 |
| Gas Utilities–0.04% |
| Italgas S.p.A. (Italy), 1.63%, 01/19/2027(f) | EUR | 100,000 | 105,875 |
| Snam S.p.A. (Italy), 3.38%, 02/19/2028(f) | EUR | 250,000 | 274,496 |
| | | | 380,371 |
| Health Care Equipment–0.06% |
| Baxter International, Inc., 1.30%, 05/15/2029 | EUR | 110,000 | 109,958 |
| Boston Scientific Corp., 0.63%, 12/01/2027 | EUR | 500,000 | 507,315 |
| | | | 617,273 |
| Health Care Services–0.07% |
| Fresenius Finance Ireland PLC (Germany), 0.50%, 10/01/2028(f) | EUR | 220,000 | 216,530 |
| Fresenius Medical Care AG (Germany), | | |
| 0.63%, 11/30/2026(f) | EUR | 30,000 | 31,133 |
| 3.88%, 09/20/2027(f) | EUR | 360,000 | 400,609 |
| | | | 648,272 |
| | Principal
Amount | Value |
| Highways & Railtracks–0.04% |
| Autostrade per l’Italia S.p.A. (Italy), | | |
| 1.75%, 06/26/2026(f) | EUR | 217,000 | $231,692 |
| 2.00%, 12/04/2028(f) | EUR | 100,000 | 103,157 |
| | | | 334,849 |
| Household Products–0.01% |
| Procter & Gamble Co. (The), 4.88%, 05/11/2027 | EUR | 75,000 | 85,771 |
| Human Resource & Employment Services–0.03% |
| Randstad N.V. (Netherlands), 3.61%, 03/12/2029(f) | EUR | 220,000 | 241,814 |
| Industrial Conglomerates–0.04% |
| Honeywell International, Inc., 2.25%, 02/22/2028 | EUR | 170,000 | 181,572 |
| Smiths Group PLC (United Kingdom), 2.00%, 02/23/2027(f) | EUR | 200,000 | 212,109 |
| | | | 393,681 |
| Industrial Machinery & Supplies & Components–0.10% |
| Highland Holdings S.a.r.l., 0.32%, 12/15/2026 | EUR | 270,000 | 278,336 |
| Sandvik AB (Sweden), 0.38%, 11/25/2028(f) | EUR | 110,000 | 107,505 |
| SKF AB (Sweden), 3.13%, 09/14/2028(f) | EUR | 500,000 | 546,766 |
| | | | 932,607 |
| Integrated Oil & Gas–0.12% |
| BP Capital Markets PLC, 1.59%, 07/03/2028(f) | EUR | 450,000 | 465,501 |
| Eni S.p.A. (Italy), | | |
| 1.25%, 05/18/2026(f) | EUR | 100,000 | 106,068 |
| 1.50%, 01/17/2027(f) | EUR | 421,000 | 444,758 |
| Shell International Finance B.V., 2.50%, 03/24/2026 | EUR | 100,000 | 108,356 |
| | | | 1,124,683 |
| Integrated Telecommunication Services–0.02% |
| Telefonica Emisiones S.A. (Spain), 1.50%, 09/11/2025(f) | EUR | 200,000 | 215,021 |
| Investment Banking & Brokerage–0.02% |
| Goldman Sachs Group, Inc. (The), 0.25%, 01/26/2028(f) | EUR | 72,000 | 71,919 |
| Morgan Stanley, 4.66%, 03/02/2029(g) | EUR | 110,000 | 124,882 |
| | | | 196,801 |
| IT Consulting & Other Services–0.04% |
| DXC Technology Co., 1.75%, 01/15/2026 | EUR | 200,000 | 213,850 |
| International Business Machines Corp., | | |
| 1.25%, 01/29/2027 | EUR | 100,000 | 105,067 |
| 1.50%, 05/23/2029 | EUR | 110,000 | 112,333 |
| | | | 431,250 |
| Life & Health Insurance–0.05% |
| Athene Global Funding, 0.37%, 09/10/2026(f) | EUR | 300,000 | 310,579 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 15 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Life & Health Insurance–(continued) |
| New York Life Global Funding, 0.25%, 01/23/2027(f) | EUR | 200,000 | $205,608 |
| | | | 516,187 |
| Life Sciences Tools & Services–0.04% |
| Thermo Fisher Scientific, Inc., 0.50%, 03/01/2028 | EUR | 410,000 | 413,088 |
| Multi-Sector Holdings–0.04% |
| Berkshire Hathaway, Inc., | | |
| 1.13%, 03/16/2027 | EUR | 100,000 | 105,100 |
| 2.15%, 03/15/2028 | EUR | 220,000 | 234,808 |
| | | | 339,908 |
| Multi-Utilities–0.03% |
| Cadent Finance PLC (United Kingdom), 4.25%, 07/05/2029(f) | EUR | 220,000 | 248,229 |
| Oil & Gas Exploration & Production–0.03% |
| APA Infrastructure Ltd. (Australia), 2.00%, 03/22/2027(f) | EUR | 100,000 | 105,941 |
| Wintershall Dea Finance B.V. (Germany), 1.33%, 09/25/2028(f) | EUR | 200,000 | 200,000 |
| | | | 305,941 |
| Oil & Gas Storage & Transportation–0.02% |
| Vier Gas Transport GmbH (Germany), 1.50%, 09/25/2028(f) | EUR | 200,000 | 205,076 |
| Packaged Foods & Meats–0.07% |
| General Mills, Inc., 0.13%, 11/15/2025 | EUR | 270,000 | 285,896 |
| JDE Peet’s N.V. (Netherlands), 0.63%, 02/09/2028(f) | EUR | 350,000 | 350,212 |
| | | | 636,108 |
| Paper & Plastic Packaging Products & Materials–0.02% |
| Amcor UK Finance PLC (Australia), 1.13%, 06/23/2027 | EUR | 200,000 | 207,249 |
| Passenger Airlines–0.08% |
| Deutsche Lufthansa AG (Germany), 2.88%, 05/16/2027(f) | EUR | 300,000 | 322,423 |
| easyJet FinCo B.V. (United Kingdom), 1.88%, 03/03/2028(f) | EUR | 400,000 | 414,456 |
| | | | 736,879 |
| Passenger Ground Transportation–0.07% |
| Ayvens S.A. (France), 4.75%, 10/13/2025(f) | EUR | 500,000 | 553,480 |
| Motability Operations Group PLC (United Kingdom), 3.63%, 07/24/2029(f) | EUR | 110,000 | 121,559 |
| | | | 675,039 |
| Pharmaceuticals–0.05% |
| Merck & Co., Inc., 1.88%, 10/15/2026 | EUR | 400,000 | 428,217 |
| | Principal
Amount | Value |
| Pharmaceuticals–(continued) |
| Merck Financial Services GmbH (Germany), 0.38%, 07/05/2027(f) | EUR | 100,000 | $102,277 |
| | | | 530,494 |
| Precious Metals & Minerals–0.01% |
| Anglo American Capital PLC (South Africa), 1.63%, 03/11/2026(f) | EUR | 100,000 | 106,873 |
| Rail Transportation–0.05% |
| Aurizon Network Pty. Ltd. (Australia), 3.13%, 06/01/2026(f) | EUR | 207,000 | 225,702 |
| Holding dInfrastructures de Transport S.A.S.U. (France), 2.50%, 05/04/2027(f) | EUR | 200,000 | 214,159 |
| | | | 439,861 |
| Real Estate Development–0.01% |
| Prologis International Funding II S.A. (Luxembourg), 0.88%, 07/09/2029(f) | EUR | 125,000 | 120,855 |
| Regional Banks–0.04% |
| Credit Mutuel Arkea S.A. (France), | | |
| 0.88%, 05/07/2027(f) | EUR | 100,000 | 103,319 |
| 0.38%, 10/03/2028(f) | EUR | 100,000 | 97,755 |
| SpareBank 1 SMN (Norway), | | |
| 3.13%, 12/22/2025(f) | EUR | 100,000 | 109,143 |
| 0.01%, 02/18/2028(f) | EUR | 100,000 | 98,872 |
| | | | 409,089 |
| Renewable Electricity–0.02% |
| EP Infrastructure A.S. (Czech Republic), 1.70%, 07/30/2026(f) | EUR | 110,000 | 115,547 |
| Southern Power Co., 1.85%, 06/20/2026 | EUR | 100,000 | 107,028 |
| | | | 222,575 |
| Retail REITs–0.02% |
| Mercialys S.A. (France), 2.50%, 02/28/2029(f) | EUR | 200,000 | 208,793 |
| Security & Alarm Services–0.02% |
| Securitas Treasury Ireland DAC (Sweden), 4.38%, 03/06/2029(f) | EUR | 200,000 | 225,450 |
| Self-Storage REITs–0.01% |
| Goodman Australia Finance Pty. Ltd. (Australia), 1.38%, 09/27/2025(f) | EUR | 100,000 | 107,005 |
| Soft Drinks & Non-alcoholic Beverages–0.03% |
| Coca-Cola Co. (The), 0.13%, 03/15/2029 | EUR | 220,000 | 212,663 |
| Coca-Cola Europacific Partners PLC (United Kingdom), 0.20%, 12/02/2028(f) | EUR | 110,000 | 106,851 |
| | | | 319,514 |
| Specialty Chemicals–0.04% |
| Brenntag Finance B.V. (Germany), 1.13%, 09/27/2025(f) | EUR | 400,000 | 428,570 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 16 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Telecom Tower REITs–0.05% |
| American Tower Corp., 1.95%, 05/22/2026 | EUR | 440,000 | $471,065 |
| Tobacco–0.05% |
| B.A.T. International Finance PLC (United Kingdom), 3.13%, 03/06/2029(f) | EUR | 325,000 | 352,220 |
| Imperial Brands Finance PLC (United Kingdom), 3.38%, 02/26/2026(f) | EUR | 100,000 | 109,173 |
| | | | 461,393 |
| Transaction & Payment Processing Services–0.02% |
| Euronet Worldwide, Inc., 1.38%, 05/22/2026 | EUR | 100,000 | 105,180 |
| Visa, Inc., 2.00%, 06/15/2029 | EUR | 110,000 | 115,319 |
| | | | 220,499 |
| Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $36,341,751) | 37,206,576 |
|
| U.S. Government Sponsored Agency Mortgage-Backed Securities–0.00% |
Fannie Mae REMICs, IO,
4.76%(9.80% - (30 Day Average SOFR + 0.11%)), 03/17/2031
(Cost $0)(j)(k) | | $2 | 0 |
| | Shares | Value |
| Money Market Funds–1.26% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(b)(l) | 4,328,801 | $4,328,801 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(b)(l) | 8,046,927 | 8,046,927 |
| Total Money Market Funds (Cost $12,375,728) | 12,375,728 |
| TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.05% (Cost $964,119,430) | | | 970,197,479 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–6.70% |
| Invesco Private Government Fund, 4.84%(b)(l)(m) | 18,198,442 | 18,198,442 |
| Invesco Private Prime Fund, 4.99%(b)(l)(m) | 47,417,437 | 47,431,662 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $65,633,657) | 65,630,104 |
| TOTAL INVESTMENTS IN SECURITIES–105.75% (Cost $1,029,753,087) | 1,035,827,583 |
| OTHER ASSETS LESS LIABILITIES—(5.75)% | (56,283,407) |
| NET ASSETS–100.00% | $979,544,176 |
Investment Abbreviations:
| ETF | – Exchange-Traded Fund |
| EUR | – Euro |
| IO | – Interest Only |
| PIK | – Pay-in-Kind |
| REIT | – Real Estate Investment Trust |
| REMICs | – Real Estate Mortgage Investment Conduits |
| SOFR | – Secured Overnight Financing Rate |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Invesco MSCI EAFE Income Advantage ETF | $- | $105,777,730 | $(4,319,668) | $(566,273) | $13,648 | $100,905,437 | $1,465,676 |
| Invesco NASDAQ 100 ETF | - | 81,010,324 | (84,044,188) | - | 3,033,864 | - | 127,320 |
| Invesco QQQ Income Advantage ETF | - | 103,870,379 | (3,449,154) | 2,201,711 | (130,036) | 102,492,900 | 2,686,326 |
| Invesco S&P 500 Equal Weight ETF | - | 187,121,431 | (190,343,384) | - | 3,221,953 | - | 745,021 |
| Invesco S&P 500 Equal Weight Income Advantage ETF | - | 244,888,907 | (5,736,850) | 5,927,743 | (9,200) | 245,070,600 | 5,789,149 |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | 54,873,700 | 188,132,722 | (238,677,621) | - | - | 4,328,801 | 2,454,195 |
| Invesco Liquid Assets Portfolio, Institutional Class | 39,204,104 | 126,315,673 | (165,518,898) | (7,497) | 6,618 | - | 1,709,056 |
| Invesco Treasury Portfolio, Institutional Class | 62,712,800 | 252,718,850 | (307,384,723) | - | - | 8,046,927 | 2,883,483 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 17 | Invesco Multi-Asset Income Fund |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | $14,854,024 | $309,788,760 | $(306,444,342) | $- | $- | $18,198,442 | $1,125,183* |
| Invesco Private Prime Fund | 38,687,262 | 648,965,206 | (640,222,806) | (4,861) | 6,861 | 47,431,662 | 3,044,365* |
| Total | $210,331,890 | $2,248,589,982 | $(1,946,141,634) | $7,550,823 | $6,143,708 | $526,474,769 | $22,029,774 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1M. |
| (e) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| (f) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $123,040,979, which represented 12.56% of the Fund’s Net Assets. |
| (g) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
| (h) | All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
| (i) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
| (j) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. |
| (k) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2024. |
| (l) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (m) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Equity Risk |
| E-Mini Russell 2000 Index | 18 | December-2024 | $1,987,740 | $8,884 | $8,884 |
| E-Mini S&P 500 Index | 6 | December-2024 | 1,721,550 | 35,092 | 35,092 |
| EURO STOXX 50 Index | 58 | December-2024 | 3,049,746 | (27,620) | (27,620) |
| FTSE 100 Index | 26 | December-2024 | 2,724,635 | (81,921) | (81,921) |
| MSCI Emerging Markets Index | 620 | December-2024 | 34,921,500 | 829,501 | 829,501 |
| Tokyo Stock Price Index | 29 | December-2024 | 5,142,853 | 298,724 | 298,724 |
| Subtotal | 1,062,660 | 1,062,660 |
| Interest Rate Risk |
| Euro-Bund | 11 | December-2024 | 1,577,020 | (26,609) | (26,609) |
| Long Gilt | 12 | December-2024 | 1,455,119 | (73,226) | (73,226) |
| U.S. Treasury 2 Year Notes | 127 | December-2024 | 26,155,055 | (247,994) | (247,994) |
| U.S. Treasury 5 Year Notes | 251 | December-2024 | 26,915,828 | (620,559) | (620,559) |
| U.S. Treasury 10 Year Notes | 56 | December-2024 | 6,186,250 | (193,071) | (193,071) |
| U.S. Treasury 10 Year Ultra Notes | 4 | December-2024 | 455,000 | (9,476) | (9,476) |
| U.S. Treasury Long Bonds | 8 | December-2024 | 943,750 | (49,262) | (49,262) |
| U.S. Treasury Ultra Bonds | 2 | December-2024 | 251,250 | (17,083) | (17,083) |
| Subtotal | (1,237,280) | (1,237,280) |
| Subtotal—Long Futures Contracts | (174,620) | (174,620) |
| Short Futures Contracts | | | | | |
| Interest Rate Risk |
| Euro-Bobl | 63 | December-2024 | (8,096,612) | 54,040 | 54,040 |
| Euro-Schatz | 256 | December-2024 | (29,667,551) | 24,666 | 24,666 |
| Subtotal—Short Futures Contracts | 78,706 | 78,706 |
| Total Futures Contracts | $(95,914) | $(95,914) |
| (a) | Futures contracts collateralized by $2,581,000 cash held with Goldman Sachs International, the futures commission merchant. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 18 | Invesco Multi-Asset Income Fund |
| Open Forward Foreign Currency Contracts |
Settlement
Date | Counterparty | Contract to | Unrealized
Appreciation
(Depreciation) |
| Deliver | Receive |
| Currency Risk | | | | | | |
| 11/25/2024 | Citibank, N.A. | EUR | 42,026,000 | USD | 46,256,560 | $503,418 |
| 11/25/2024 | J.P. Morgan Chase Bank, N.A. | EUR | 1,204,000 | USD | 1,344,835 | 34,057 |
| 11/25/2024 | Merrill Lynch International | USD | 49,996 | EUR | 46,000 | 83 |
| 11/25/2024 | State Street Bank & Trust Co. | EUR | 110,000 | USD | 123,186 | 3,430 |
| Subtotal—Appreciation | 540,988 |
| Currency Risk | | | | | | |
| 11/25/2024 | Barclays Bank PLC | USD | 146,082 | EUR | 131,000 | (3,464) |
| 11/25/2024 | Citibank, N.A. | USD | 8,634,663 | EUR | 7,758,000 | (188,633) |
| 11/25/2024 | Goldman Sachs International | USD | 59,103 | EUR | 53,000 | (1,403) |
| 11/25/2024 | J.P. Morgan Chase Bank, N.A. | EUR | 302,000 | USD | 327,997 | (786) |
| 11/25/2024 | J.P. Morgan Chase Bank, N.A. | USD | 373,917 | EUR | 335,000 | (9,206) |
| 11/25/2024 | Merrill Lynch International | USD | 488,497 | EUR | 440,000 | (9,475) |
| Subtotal—Depreciation | (212,967) |
| Total Forward Foreign Currency Contracts | $328,021 |
| Open Centrally Cleared Credit Default Swap Agreements(a) |
| Reference Entity | Buy/Sell
Protection | (Pay)/
Receive
Fixed
Rate | Payment
Frequency | Maturity Date | Implied
Credit
Spread(b) | Notional Value | Upfront
Payments Paid
(Received) | Value | Unrealized
Appreciation |
| Credit Risk |
| Markit CDX North America High Yield Index, Series 42, Version 1 | Sell | 5.00% | Quarterly | 06/20/2029 | 3.103% | USD | 2,510,000 | $155,758 | $183,396 | $27,638 |
| (a) | Swaps are collateralized by $172,837 cash held with Merrill Lynch International, the Counterparty. |
| (b) | Implied credit spreads represent the current level, as of October 31, 2024, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
| Abbreviations: |
| EUR | —Euro |
| USD | —U.S. Dollar |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 19 | Invesco Multi-Asset Income Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $510,837,947)* | $509,352,814 |
Investments in affiliates, at value
(Cost $518,915,140) | 526,474,769 |
| Other investments: | |
| Variation margin receivable—centrally cleared swap agreements | 270,443 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 540,988 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 2,581,000 |
| Cash collateral — centrally cleared swap agreements | 172,837 |
| Cash | 493,745 |
| Foreign currencies, at value (Cost $483,793) | 480,334 |
| Receivable for: | |
| Investments sold | 143,419 |
| Fund shares sold | 44,132 |
| Dividends | 256,279 |
| Interest | 6,752,595 |
| Investments matured, at value (Cost $1,618,563) | 0 |
| Investment for trustee deferred compensation and retirement plans | 177,021 |
| Other assets | 38,290 |
| Total assets | 1,047,778,666 |
| Liabilities: | |
| Other investments: | |
| Variation margin payable — futures contracts | 367,664 |
| Unrealized depreciation on forward foreign currency contracts outstanding | 212,967 |
| Payable for: | |
| Investments purchased | 493,745 |
| Dividends | 7 |
| Fund shares reacquired | 640,159 |
| Collateral upon return of securities loaned | 65,633,657 |
| Accrued fees to affiliates | 413,892 |
| Accrued trustees’ and officers’ fees and benefits | 1,725 |
| Accrued other operating expenses | 252,959 |
| Trustee deferred compensation and retirement plans | 217,715 |
| Total liabilities | 68,234,490 |
| Net assets applicable to shares outstanding | $979,544,176 |
| Net assets consist of: | |
| Shares of beneficial interest | $1,698,914,994 |
| Distributable earnings (loss) | (719,370,818) |
| | $979,544,176 |
| Net Assets: |
| Class A | $803,329,540 |
| Class C | $49,628,648 |
| Class R | $23,769,272 |
| Class Y | $96,045,628 |
| Class R5 | $9,581 |
| Class R6 | $6,761,507 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 101,552,917 |
| Class C | 6,276,044 |
| Class R | 3,002,438 |
| Class Y | 12,132,225 |
| Class R5 | 1,212 |
| Class R6 | 853,533 |
| Class A: | |
| Net asset value per share | $7.91 |
Maximum offering price per share
(Net asset value of $7.91 ÷ 94.50%) | $8.37 |
| Class C: | |
| Net asset value and offering price per share | $7.91 |
| Class R: | |
| Net asset value and offering price per share | $7.92 |
| Class Y: | |
| Net asset value and offering price per share | $7.92 |
| Class R5: | |
| Net asset value and offering price per share | $7.91 |
| Class R6: | |
| Net asset value and offering price per share | $7.92 |
| * | At October 31, 2024, securities with an aggregate value of $63,329,403 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 20 | Invesco Multi-Asset Income Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $52,642,086 |
| Dividends (net of foreign withholding taxes of $767) | 2,998,665 |
| Dividends from affiliated money market funds (includes net securities lending income of $367,068) | 18,227,294 |
| Total investment income | 73,868,045 |
| Expenses: | |
| Advisory fees | 4,922,407 |
| Administrative services fees | 148,742 |
| Custodian fees | 98,028 |
| Distribution fees: | |
| Class A | 1,902,769 |
| Class C | 579,187 |
| Class R | 119,545 |
| Transfer agent fees — A, C, R and Y | 1,365,005 |
| Transfer agent fees — R5 | 7 |
| Transfer agent fees — R6 | 6,985 |
| Trustees’ and officers’ fees and benefits | 42,090 |
| Registration and filing fees | 97,268 |
| Licensing fees | 93,915 |
| Reports to shareholders | 137,652 |
| Professional services fees | 86,736 |
| Other | 23,755 |
| Total expenses | 9,624,091 |
| Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (436,355) |
| Net expenses | 9,187,736 |
| Net investment income | 64,680,309 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | (66,742,681) |
| Affiliated investment securities | 6,143,708 |
| Foreign currencies | (482,524) |
| Forward foreign currency contracts | (83,496) |
| Futures contracts | 2,078,574 |
| Swap agreements | 141,801 |
| | (58,944,618) |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 144,851,593 |
| Affiliated investment securities | 7,550,823 |
| Foreign currencies | 22,540 |
| Forward foreign currency contracts | (14,386) |
| Futures contracts | (1,624,219) |
| Swap agreements | 48,366 |
| | 150,834,717 |
| Net realized and unrealized gain | 91,890,099 |
| Net increase in net assets resulting from operations | $156,570,408 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 21 | Invesco Multi-Asset Income Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $64,680,309 | $77,145,429 |
| Net realized gain (loss) | (58,944,618) | (63,118,839) |
| Change in net unrealized appreciation | 150,834,717 | 35,395,133 |
| Net increase in net assets resulting from operations | 156,570,408 | 49,421,723 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (51,337,239) | (58,444,286) |
| Class C | (3,215,453) | (4,626,634) |
| Class R | (1,437,462) | (1,605,955) |
| Class Y | (7,955,082) | (11,320,083) |
| Class R5 | (627) | (1,985) |
| Class R6 | (1,534,995) | (3,499,023) |
| Total distributions from distributable earnings | (65,480,858) | (79,497,966) |
| Share transactions–net: | | |
| Class A | (46,557,961) | (49,251,490) |
| Class C | (17,339,832) | (21,038,526) |
| Class R | (460,266) | (525,326) |
| Class Y | (59,647,284) | (24,691,098) |
| Class R5 | — | (55,170) |
| Class R6 | (38,399,012) | (6,897,140) |
| Net increase (decrease) in net assets resulting from share transactions | (162,404,355) | (102,458,750) |
| Net increase (decrease) in net assets | (71,314,805) | (132,534,993) |
| Net assets: | | |
| Beginning of year | 1,050,858,981 | 1,183,393,974 |
| End of year | $979,544,176 | $1,050,858,981 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 22 | Invesco Multi-Asset Income Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $7.26 | $0.49 | $0.65 | $1.14 | $(0.49) | $7.91 | 16.04%(d) | $803,330 | 0.86%(d) | 0.91%(d) | 6.22%(d) | 162% |
| Year ended 10/31/23 | 7.49 | 0.51 | (0.21) | 0.30 | (0.53) | 7.26 | 3.87(d) | 780,788 | 0.79(d) | 0.85(d) | 6.69(d) | 54 |
| Year ended 10/31/22 | 9.75 | 0.50 | (2.21) | (1.71) | (0.55) | 7.49 | (18.16)(d) | 852,899 | 0.82(d) | 0.87(d) | 5.68(d) | 94 |
| Year ended 10/31/21 | 9.26 | 0.48 | 0.59 | 1.07 | (0.58) | 9.75 | 11.73(d) | 1,178,389 | 0.82(d) | 0.91(d) | 4.93(d) | 53 |
| Year ended 10/31/20 | 10.79 | 0.58 | (1.55) | (0.97) | (0.56) | 9.26 | (8.97)(d) | 1,209,154 | 0.82(d) | 0.92(d) | 6.13(d) | 117 |
| Class C |
| Year ended 10/31/24 | 7.26 | 0.43 | 0.65 | 1.08 | (0.43) | 7.91 | 15.16 | 49,629 | 1.63 | 1.68 | 5.45 | 162 |
| Year ended 10/31/23 | 7.49 | 0.45 | (0.21) | 0.24 | (0.47) | 7.26 | 3.08 | 61,668 | 1.56 | 1.62 | 5.92 | 54 |
| Year ended 10/31/22 | 9.75 | 0.43 | (2.21) | (1.78) | (0.48) | 7.49 | (18.80) | 84,143 | 1.59 | 1.64 | 4.91 | 94 |
| Year ended 10/31/21 | 9.26 | 0.40 | 0.60 | 1.00 | (0.51) | 9.75 | 10.89 | 147,030 | 1.59 | 1.68 | 4.16 | 53 |
| Year ended 10/31/20 | 10.78 | 0.51 | (1.54) | (1.03) | (0.49) | 9.26 | (9.58) | 210,967 | 1.59 | 1.69 | 5.36 | 117 |
| Class R |
| Year ended 10/31/24 | 7.27 | 0.47 | 0.65 | 1.12 | (0.47) | 7.92 | 15.72 | 23,769 | 1.13 | 1.18 | 5.95 | 162 |
| Year ended 10/31/23 | 7.49 | 0.49 | (0.20) | 0.29 | (0.51) | 7.27 | 3.73 | 22,241 | 1.06 | 1.12 | 6.42 | 54 |
| Year ended 10/31/22 | 9.76 | 0.47 | (2.22) | (1.75) | (0.52) | 7.49 | (18.47) | 23,452 | 1.09 | 1.14 | 5.41 | 94 |
| Year ended 10/31/21 | 9.27 | 0.45 | 0.59 | 1.04 | (0.55) | 9.76 | 11.43 | 47,214 | 1.09 | 1.18 | 4.66 | 53 |
| Year ended 10/31/20 | 10.78 | 0.55 | (1.52) | (0.97) | (0.54) | 9.27 | (9.02) | 55,930 | 1.09 | 1.19 | 5.86 | 117 |
| Class Y |
| Year ended 10/31/24 | 7.27 | 0.50 | 0.66 | 1.16 | (0.51) | 7.92 | 16.30 | 96,046 | 0.63 | 0.68 | 6.45 | 162 |
| Year ended 10/31/23 | 7.49 | 0.53 | (0.20) | 0.33 | (0.55) | 7.27 | 4.26 | 143,870 | 0.56 | 0.62 | 6.92 | 54 |
| Year ended 10/31/22 | 9.76 | 0.52 | (2.22) | (1.70) | (0.57) | 7.49 | (18.05) | 172,528 | 0.59 | 0.64 | 5.91 | 94 |
| Year ended 10/31/21 | 9.27 | 0.50 | 0.59 | 1.09 | (0.60) | 9.76 | 11.99 | 274,095 | 0.59 | 0.68 | 5.16 | 53 |
| Year ended 10/31/20 | 10.79 | 0.62 | (1.55) | (0.93) | (0.59) | 9.27 | (8.65) | 360,565 | 0.59 | 0.69 | 6.36 | 117 |
| Class R5 |
| Year ended 10/31/24 | 7.26 | 0.51 | 0.66 | 1.17 | (0.52) | 7.91 | 16.41 | 10 | 0.59 | 0.61 | 6.49 | 162 |
| Year ended 10/31/23 | 7.49 | 0.54 | (0.22) | 0.32 | (0.55) | 7.26 | 4.13 | 9 | 0.53 | 0.58 | 6.95 | 54 |
| Year ended 10/31/22 | 9.75 | 0.52 | (2.21) | (1.69) | (0.57) | 7.49 | (17.97) | 63 | 0.59 | 0.62 | 5.91 | 94 |
| Year ended 10/31/21 | 9.27 | 0.50 | 0.58 | 1.08 | (0.60) | 9.75 | 11.89 | 78 | 0.59 | 0.60 | 5.16 | 53 |
| Year ended 10/31/20 | 10.79 | 0.62 | (1.55) | (0.93) | (0.59) | 9.27 | (8.63) | 85 | 0.59 | 0.63 | 6.36 | 117 |
| Class R6 |
| Year ended 10/31/24 | 7.27 | 0.51 | 0.66 | 1.17 | (0.52) | 7.92 | 16.40 | 6,762 | 0.55 | 0.57 | 6.53 | 162 |
| Year ended 10/31/23 | 7.49 | 0.54 | (0.21) | 0.33 | (0.55) | 7.27 | 4.32 | 42,283 | 0.49 | 0.51 | 6.99 | 54 |
| Year ended 10/31/22 | 9.76 | 0.52 | (2.22) | (1.70) | (0.57) | 7.49 | (18.01) | 50,310 | 0.54 | 0.55 | 5.96 | 94 |
| Year ended 10/31/21 | 9.27 | 0.51 | 0.59 | 1.10 | (0.61) | 9.76 | 12.05 | 64,850 | 0.54 | 0.55 | 5.21 | 53 |
| Year ended 10/31/20 | 10.79 | 0.62 | (1.55) | (0.93) | (0.59) | 9.27 | (8.59) | 65,618 | 0.53 | 0.54 | 6.42 | 117 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2020, the portfolio turnover calculation excludes the value of securities purchased of $1,279,950,104 in connection with the acquisition of Invesco Oppenheimer Capital Income Fund and Invesco Oppenheimer Global Multi-Asset Income Fund into the Fund. |
| (d) | The total return, ratios of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.23% for Class A for the years ended October 31, 2024, 2023, 2022, 2021 and 2020, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 23 | Invesco Multi-Asset Income Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Multi-Asset Income Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to provide current income.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or
| 24 | Invesco Multi-Asset Income Fund |
other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction of the cost of the related investment. These recharacterizations are reflected in the accompanying financial statements.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Equity-Linked Notes – The Fund may invest in Equity-Linked Notes (ELNs). ELNs are hybrid derivative-type instruments, in a single note form, that are specially designed to combine the characteristics of one or more reference securities (such as a single stock, an exchange traded fund or an index or basket of securities (underlying securities)) and one or more related equity derivatives, such as put or call options, or a combination thereof. Unlike a direct investment in equity securities, ELNs have a maturity date, potentially increasing the Fund’s turnover rate, transaction costs and tax liability. Upon the maturity of an ELN, the Fund generally receives an interest coupon payment and the par value of the note plus or minus a return based on the performance of the underlying securities and the related equity derivatives. If the underlying securities have depreciated in value or if their price appreciates or depreciates outside of a preset range, |
| 25 | Invesco Multi-Asset Income Fund |
| | depending on the type of ELN, the Fund may receive only the principal amount of the note or less than the principal amount of the note, or may even lose the entire principal invested in the ELN. Investments in ELNs possess the risks associated with the underlying securities, such as management risk, market risk and, as applicable, foreign securities and currency risks. In addition, as a note, ELNs are also subject to certain debt securities risks, such as interest rate and credit risk. An investment in an ELN also bears the risk that the ELN issuer will default or become bankrupt. In such an event, the Fund may have difficulty being repaid, or fail to be repaid, the principal amount of, or income from, its investment. As the holder of an ELN, the Fund generally has no rights to the underlying securities, including no voting rights or rights to receive dividends. |
ELNs utilized by the Fund may involve synthetic exposure to options that can create economic leverage risk which, depending on the performance of the underlying securities, could magnify or otherwise increase investment losses to the Fund and result in losses on the ELN that exceed the losses on the underlying securities. The economic leverage associated with investments in ELNs is distinguishable from indebtedness leverage in that it does not expose the Fund to losing more than the principal amount of the ELN. Should the prices of the underlying securities move in an unexpected manner, the Fund may not achieve the anticipated benefits of its ELN investments, and it may realize losses, which could be significant and could include the Fund’s entire principal investment. In addition, investments in ELNs allow for enhanced yield but are subject to limited upside appreciation potential based on movements of the underlying securities. Investing in ELNs may be more costly to the Fund than if the Fund had invested in the underlying securities directly.
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser $11,696 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| M. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency |
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| | risks. A futures contract is an agreement between two parties ("Counterparties") to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
| N. | Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s net asset value ("NAV") per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
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Notional amounts of each individual credit default swap agreement outstanding as of October 31, 2024, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
| O. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| P. | Collateral —To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions. |
| Q. | Other Risks - Investments in high yield debt securities (“junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. These securities are considered to be speculative with respect to the issuer’s ability to pay interest and principal when due, are more susceptible to default or decline in market value and are less liquid than investment grade debt securities. Prices of high yield debt securities tend to be very volatile. |
Fluctuations in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact the Fund, including its operations, universe of potential investment options, and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Obligations of U.S. Government agencies and authorities receive varying levels of support and may not be backed by the full faith and credit of the U.S. Government, which could affect the Fund’s ability to recover should they default. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate |
| First $500 million | 0.500% |
| Next $500 million | 0.450% |
| Next $500 million | 0.400% |
| Over $1.5 billion | 0.390% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.47%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least February 28, 2025, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.90%, 1.65%, 1.15%, 0.65%, 0.65% and 0.65%, respectively, of the Fund’s average daily net assets (the “expense limits”). Effective March 1, 2025, the Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.50%, 2.25%, 1.75%, 1.25%, 1.25% and 1.25%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $176,814 and reimbursed class level expenses of $147,433, $10,696, $4,299, $22,915, $0 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to
| 28 | Invesco Multi-Asset Income Fund |
customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $70,644 in front-end sales commissions from the sale of Class A shares and $9 and $1,163 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of Invesco.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Exchange-Traded Funds | $464,289,017 | $— | $— | $464,289,017 |
| U.S. Treasury Securities | — | 263,954,217 | — | 263,954,217 |
| U.S. Dollar Denominated Bonds & Notes | — | 192,371,941 | — | 192,371,941 |
| Non-U.S. Dollar Denominated Bonds & Notes | — | 37,206,576 | — | 37,206,576 |
| U.S. Government Sponsored Agency Mortgage-Backed Securities | — | 0 | — | 0 |
| Money Market Funds | 12,375,728 | 65,630,104 | — | 78,005,832 |
| Total Investments in Securities | 476,664,745 | 559,162,838 | — | 1,035,827,583 |
| Other Investments - Assets* | | | | |
| Investments Matured | — | — | 0 | 0 |
| Futures Contracts | 1,250,907 | — | — | 1,250,907 |
| Forward Foreign Currency Contracts | — | 540,988 | — | 540,988 |
| Swap Agreements | — | 27,638 | — | 27,638 |
| | 1,250,907 | 568,626 | 0 | 1,819,533 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (1,346,821) | — | — | (1,346,821) |
| Forward Foreign Currency Contracts | — | (212,967) | — | (212,967) |
| | (1,346,821) | (212,967) | — | (1,559,788) |
| Total Other Investments | (95,914) | 355,659 | 0 | 259,745 |
| Total Investments | $476,568,831 | $559,518,497 | $— | $1,036,087,328 |
| * | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Investments matured is shown at value. |
NOTE 4—Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
| 29 | Invesco Multi-Asset Income Fund |
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| | Value |
| Derivative Assets | Credit
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized appreciation on futures contracts —Exchange-Traded | $— | $— | $1,172,201 | $78,706 | $1,250,907 |
| Unrealized appreciation on swap agreements — Centrally Cleared(a) | 27,638 | — | — | — | 27,638 |
| Unrealized appreciation on forward foreign currency contracts outstanding | — | 540,988 | — | — | 540,988 |
| Total Derivative Assets | 27,638 | 540,988 | 1,172,201 | 78,706 | 1,819,533 |
| Derivatives not subject to master netting agreements | (27,638) | — | (1,172,201) | (78,706) | (1,278,545) |
| Total Derivative Assets subject to master netting agreements | $— | $540,988 | $— | $— | $540,988 |
| | Value |
| Derivative Liabilities | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts —Exchange-Traded | $— | $(109,541) | $(1,237,280) | $(1,346,821) |
| Unrealized depreciation on forward foreign currency contracts outstanding | (212,967) | — | — | (212,967) |
| Total Derivative Liabilities | (212,967) | (109,541) | (1,237,280) | (1,559,788) |
| Derivatives not subject to master netting agreements | — | 109,541 | 1,237,280 | 1,346,821 |
| Total Derivative Liabilities subject to master netting agreements | $(212,967) | $— | $— | $(212,967) |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| | Financial
Derivative
Assets | | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Forward Foreign
Currency Contracts | | Forward Foreign
Currency Contracts | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount |
| Barclays Bank PLC | $− | | $(3,464) | $(3,464) | $— | $— | $(3,464) |
| Citibank, N.A. | 503,418 | | (188,633) | 314,785 | — | — | 314,785 |
| Goldman Sachs International | − | | (1,403) | (1,403) | — | — | (1,403) |
| J.P. Morgan Chase Bank, N.A. | 34,057 | | (9,992) | 24,065 | — | — | 24,065 |
| Merrill Lynch International | 83 | | (9,475) | (9,392) | — | — | (9,392) |
| State Street Bank & Trust Co. | 3,430 | | − | 3,430 | — | — | 3,430 |
| Total | $540,988 | | $(212,967) | $328,021 | $— | $— | $328,021 |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Statement of Operations |
| | Credit
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Realized Gain (Loss): | | | | | |
| Forward foreign currency contracts | $- | $(83,496) | $- | $- | $(83,496) |
| Futures contracts | - | - | 3,857,572 | (1,778,998) | 2,078,574 |
| Swap agreements | 141,801 | - | - | - | 141,801 |
| Change in Net Unrealized Appreciation (Depreciation): | | | | | |
| Forward foreign currency contracts | - | (14,386) | - | - | (14,386) |
| Futures contracts | - | - | 2,399,102 | (4,023,321) | (1,624,219) |
| Swap agreements | 48,366 | - | - | - | 48,366 |
| Total | $190,167 | $(97,882) | $6,256,674 | $(5,802,319) | $546,640 |
| 30 | Invesco Multi-Asset Income Fund |
The table below summarizes the average notional value of derivatives held during the period.
| | Forward
Foreign Currency
Contracts | Futures
Contracts | Swap
Agreements |
| Average notional value | $31,010,572 | $252,308,741 | $2,038,183 |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $74,198.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $65,480,858 | $79,497,966 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Net unrealized appreciation — investments | $3,982,888 |
| Net unrealized appreciation (depreciation) — foreign currencies | (13,299) |
| Temporary book/tax differences | (202,277) |
| Capital loss carryforward | (723,138,130) |
| Shares of beneficial interest | 1,698,914,994 |
| Total net assets | $979,544,176 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales, derivative instruments and amortization and accretion on debt securities.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $408,001,901 | $315,136,229 | $723,138,130 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $1,080,619,983 and $907,804,093, respectively. As of October 31, 2024, the aggregate cost of
| 31 | Invesco Multi-Asset Income Fund |
investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $16,037,784 |
| Aggregate unrealized (depreciation) of investments | (12,054,896) |
| Net unrealized appreciation of investments | $3,982,888 |
Cost of investments for tax purposes is $1,032,104,440.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of distributions, partnerships and amortization and accretion on debt securities, on October 31, 2024, undistributed net investment income was increased by $3,763,279, undistributed net realized gain (loss) was decreased by $3,310,193 and shares of beneficial interest was decreased by $453,086. This reclassification had no effect on the net assets of the Fund.
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 4,423,272 | $34,531,715 | | 4,002,354 | $30,757,252 |
| Class C | 516,448 | 4,038,433 | | 591,278 | 4,557,505 |
| Class R | 408,311 | 3,200,902 | | 465,761 | 3,589,248 |
| Class Y | 2,719,300 | 21,279,723 | | 3,962,741 | 30,627,354 |
| Class R6 | 232,291 | 1,798,349 | | 259,652 | 1,988,962 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 5,811,831 | 45,266,112 | | 6,704,847 | 51,334,704 |
| Class C | 307,638 | 2,392,447 | | 448,775 | 3,437,889 |
| Class R | 181,004 | 1,411,437 | | 205,567 | 1,575,533 |
| Class Y | 712,046 | 5,535,818 | | 1,013,311 | 7,764,065 |
| Class R5 | - | - | | 170 | 1,318 |
| Class R6 | 182,973 | 1,412,424 | | 437,489 | 3,353,057 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 1,390,007 | 10,844,925 | | 1,551,820 | 11,884,183 |
| Class C | (1,390,415) | (10,844,925) | | (1,552,009) | (11,884,183) |
| Reacquired: | | | | | |
| Class A | (17,563,355) | (137,200,713) | | (18,650,298) | (143,227,629) |
| Class C | (1,650,372) | (12,925,787) | | (2,234,003) | (17,149,737) |
| Class R | (646,509) | (5,072,605) | | (740,749) | (5,690,107) |
| Class Y | (11,091,961) | (86,462,825) | | (8,202,752) | (63,082,517) |
| Class R5 | - | - | | (7,400) | (56,488) |
| Class R6 | (5,378,840) | (41,609,785) | | (1,593,389) | (12,239,159) |
| Net increase (decrease) in share activity | (20,836,331) | $(162,404,355) | | (13,336,835) | $(102,458,750) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 11% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| 32 | Invesco Multi-Asset Income Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM Investment Funds (Invesco Investment Funds) and Shareholders of Invesco Multi-Asset Income Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Multi-Asset Income Fund (one of the funds constituting AIM Investment Funds (Invesco Investment Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 33 | Invesco Multi-Asset Income Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM Investment Funds (Invesco Investment Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Multi-Asset Income Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement as well as the sub-advisory contracts for the Fund, as Invesco Capital Management LLC currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Custom Invesco Multi-Asset Income Index (Index). The Board noted that performance of Class A shares of the Fund was in the second quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board acknowledged limitations regarding the Broadridge data, in particular that differences may exist between the Fund’s investment objective, principal investment
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strategies and/or investment restrictions and those of the funds in its performance universe. The Board considered that the Fund’s emphasis on income generation results in a persistently lower equity beta relative to peers. The Board also considered how the Fund’s strategy is implemented using a multi-sleeve structure and discussed how each sleeve impacted Fund performance, noting that overweight exposure to U.S. master limited partnerships and equity real estate investment trusts at the outset of the COVID-10 pandemic has driven long-term underperformance. The Board further considered that the Fund’s credit beta in the emerging and high yield markets, as well as its tactical positioning during a time of elevated short-term volatility, also led to short-term underperformance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were below and reasonably comparable to, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
| F. | Collateral Benefits to Invesco Advisers and its Affiliates |
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the
performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided
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to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
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Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for their fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Qualified Dividend Income* | 2.54% |
| Corporate Dividends Received Deduction* | 2.38% |
| U.S. Treasury Obligations* | 15.35% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 43.69% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
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Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
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| SEC file number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | MAIN-NCSR |
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Item 10. Remuneration Paid to Directors, Officers, and Others for Open-End Management Investment Companies.
This information is filed under Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
This information is filed under Item 7 of this Form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Item 15. Submission of Matters to a Vote of Security Holders.
Item 16. Controls and Procedures.
(a) As of a date within 90 days of the filing date of this report, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant's disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Act. Based on that evaluation, the Registrant's officers, including the PEO and PFO, concluded that the Registrant's disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.
(b) There have been no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activity for Closed-End Management Investment Companies.
Item 18. Recovery of Erroneously Awarded Compensation.
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 Investment Funds (Invesco Investment Funds)
By: /s/ Glenn Brightman .
Name: Glenn Brightman
Title:Principal Executive Officer
Date: January 3, 2025
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Glenn Brightman ..
Name:Glenn Brightman
Title:Principal Executive Officer
Date: January 3, 2025
By: /s/ Adrien Deberghes ____
Name:Adrien Deberghes
Title:Principal Financial Officer
Date:January 3, 2025
