UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-05426
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)
Sheri Morris
11 Greenway Plaza, Suite 1000
Houston, Texas 77046
(Name and address of agent for service)
Registrant’s telephone number, including area code: (713)626-1919
Date of fiscal year end: 10/31
Date of reporting period: 04/30/19
Item 1. Report to Stockholders.
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco All Cap Market Neutral Fund
Nasdaq:
A: CPNAX ■ C: CPNCX ■ R: CPNRX ■ Y: CPNYX ■ R5: CPNFX ■ R6: CPNSX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | –11.64% |
| Class C Shares | –12.01 |
| Class R Shares | –11.68 |
| Class Y Shares | –11.61 |
| Class R5 Shares | –11.45 |
| Class R6 Shares | –11.47 |
| FTSE US 3-Month Treasury Bill Index▼ (Broad Market/Style-Specific Index) | 1.19 |
Lipper Alternative Equity Market Neutral Funds Index■
(Peer Group Index) | –1.34 |
| Source(s):▼RIMES Technologies Corp.;■ Lipper Inc. |
The FTSE US 3-Month Treasury Bill Index is an unmanaged index considered representative of three-month US Treasury Bills.
TheLipper Alternative Equity Market Neutral Funds Index is an unmanaged index considered representative of alternative equity market neutral funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco All Cap Market Neutral Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/17/13) | –1.31% |
| 5 Years | –2.18 |
| 1 Year | –12.94 |
| Class C Shares | |
| Inception (12/17/13) | –1.00% |
| 5 Years | –1.79 |
| 1 Year | –9.34 |
| Class R Shares | |
| Inception (12/17/13) | –0.49% |
| 5 Years | –1.28 |
| 1 Year | –7.92 |
| Class Y Shares | |
| Inception (12/17/13) | –0.02% |
| 5 Years | –0.83 |
| 1 Year | –7.62 |
| Class R5 Shares | |
| Inception (12/17/13) | 0.05% |
| 5 Years | –0.75 |
| 1 Year | –7.47 |
| Class R6 Shares | |
| Inception (12/17/13) | 0.03% |
| 5 Years | –0.77 |
| 1 Year | –7.48 |
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.51%, 2.26%, 1.76%, 1.26%, 1.13% and 1.13%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.52%, 2.27%, 1.77%, 1.27%, 1.14% and 1.14%, re-
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/17/13) | –0.79% |
| 5 Years | –1.17 |
| 1 Year | –11.73 |
| Class C Shares | |
| Inception (12/17/13) | –0.46% |
| 5 Years | –0.78 |
| 1 Year | –8.08 |
| Class R Shares | |
| Inception (12/17/13) | 0.05% |
| 5 Years | –0.29 |
| 1 Year | –6.70 |
| Class Y Shares | |
| Inception (12/17/13) | 0.53% |
| 5 Years | 0.20 |
| 1 Year | –6.20 |
| Class R5 Shares | |
| Inception (12/17/13) | 0.58% |
| 5 Years | 0.25 |
| 1 Year | –6.19 |
| Class R6 Shares | |
| Inception (12/17/13) | 0.56% |
| 5 Years | 0.23 |
| 1 Year | –6.20 |
spectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | Invesco All Cap Market Neutral Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco All Cap Market Neutral Fund |
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–88.27% |
| Advertising–0.50% |
| National CineMedia, Inc. | 58,700 | $409,726 |
| Airlines–0.23% |
| United Continental Holdings, Inc.(b) | 2,150 | 191,049 |
| Alternative Carriers–1.37% |
| Intelsat S.A.(b) | 55,650 | 1,126,356 |
| Apparel Retail–2.36% |
| Abercrombie & Fitch Co., Class A | 24,500 | 732,305 |
| Cato Corp. (The), Class A | 4,550 | 68,978 |
| Foot Locker, Inc. | 18,000 | 1,029,780 |
| Tilly’s, Inc., Class A | 8,850 | 104,076 |
| | | | 1,935,139 |
| Apparel, Accessories & Luxury Goods–0.85% |
| Fossil Group, Inc.(b) | 48,150 | 629,321 |
| Vera Bradley, Inc.(b) | 5,500 | 67,540 |
| | | | 696,861 |
| Application Software–0.28% |
| Intelligent Systems Corp.(b) | 8,250 | 233,145 |
| Asset Management & Custody Banks–0.13% |
| Victory Capital Holdings, Inc., Class A(b) | 6,250 | 103,063 |
| Auto Parts & Equipment–0.84% |
| Garrett Motion, Inc. (Switzerland)(b) | 8,850 | 166,380 |
| Shiloh Industries, Inc.(b) | 11,900 | 68,068 |
| Stoneridge, Inc.(b) | 12,300 | 386,589 |
| Tower International, Inc. | 2,900 | 67,686 |
| | | | 688,723 |
| Biotechnology–8.20% |
| AMAG Pharmaceuticals, Inc.(b) | 10,000 | 111,600 |
| ArQule, Inc.(b) | 42,650 | 254,621 |
| Arrowhead Pharmaceuticals, Inc.(b) | 70,500 | 1,267,590 |
| BioSpecifics Technologies Corp.(b) | 2,600 | 174,200 |
| CareDx, Inc.(b) | 32,850 | 893,848 |
| ChemoCentryx, Inc.(b) | 43,000 | 570,610 |
| Eagle Pharmaceuticals, Inc.(b) | 5,600 | 287,896 |
| Enanta Pharmaceuticals, Inc.(b) | 11,300 | 985,247 |
| Genomic Health, Inc.(b) | 15,050 | 968,166 |
| KalVista Pharmaceuticals, Inc.(b) | 16,800 | 386,400 |
| Myriad Genetics, Inc.(b) | 9,250 | 291,190 |
| Pfenex, Inc.(b) | 29,850 | 172,832 |
| Veracyte, Inc.(b) | 8,600 | 196,682 |
| Vericel Corp.(b) | 9,800 | 166,502 |
| | | | 6,727,384 |
| | Shares | Value |
| Building Products–0.16% |
| Resideo Technologies, Inc.(b) | 5,700 | $129,390 |
| Cable & Satellite–0.11% |
| MSG Networks, Inc., Class A(b) | 4,100 | 94,423 |
| Casinos & Gaming–0.20% |
| Everi Holdings, Inc.(b) | 15,700 | 161,553 |
| Coal & Consumable Fuels–2.06% |
| Arch Coal, Inc., Class A | 3,100 | 300,638 |
| CONSOL Energy, Inc.(b) | 13,550 | 459,345 |
| Hallador Energy Co. | 36,850 | 190,146 |
| NACCO Industries, Inc., Class A | 6,935 | 283,572 |
| Peabody Energy Corp. | 15,900 | 457,443 |
| | | | 1,691,144 |
| Commercial Printing–0.18% |
| Ennis, Inc. | 7,350 | 148,323 |
| Commodity Chemicals–0.40% |
| Methanex Corp. (Canada) | 6,050 | 332,266 |
| Communications Equipment–0.79% |
| Acacia Communications, Inc.(b) | 2,800 | 162,064 |
| Comtech Telecommunications Corp. | 17,450 | 410,598 |
| PC-Tel, Inc.(b) | 15,750 | 74,498 |
| | | | 647,160 |
| Computer & Electronics Retail–1.60% |
| Rent-A-Center, Inc.(b) | 52,600 | 1,311,318 |
| Construction & Engineering–0.79% |
| Great Lakes Dredge & Dock Corp.(b) | 63,650 | 651,140 |
| Construction Machinery & Heavy Trucks–0.55% |
| Commercial Vehicle Group, Inc.(b) | 18,200 | 162,344 |
| Meritor, Inc.(b) | 12,050 | 292,333 |
| | | | 454,677 |
| Consumer Electronics–0.44% |
| Turtle Beach Corp.(b) | 13,100 | 134,144 |
| ZAGG, Inc.(b) | 27,200 | 224,128 |
| | | | 358,272 |
| Consumer Finance–1.25% |
| Navient Corp. | 68,000 | 918,680 |
| Nelnet, Inc., Class A | 1,800 | 104,490 |
| | | | 1,023,170 |
| Copper–0.50% |
| Freeport-McMoRan, Inc. | 33,250 | 409,308 |
| Data Processing & Outsourced Services–1.99% |
| Cardtronics PLC, Class A(b) | 38,600 | 1,380,336 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco All Cap Market Neutral Fund |
| | Shares | Value |
| Data Processing & Outsourced Services–(continued) |
| Paysign, Inc.(b) | 31,150 | $253,249 |
| | | | 1,633,585 |
| Diversified Metals & Mining–0.65% |
| Teck Resources Ltd. Class B (Canada) | 22,450 | 530,943 |
| Education Services–0.99% |
| K12, Inc.(b) | 27,050 | 814,746 |
| Electric Utilities–0.24% |
| Genie Energy Ltd. Class B | 23,150 | 201,174 |
| Electrical Components & Equipment–1.30% |
| Atkore International Group, Inc.(b) | 6,000 | 148,560 |
| Enphase Energy, Inc.(b) | 75,200 | 755,008 |
| Vicor Corp.(b) | 4,250 | 159,417 |
| | | | 1,062,985 |
| Electronic Components–0.16% |
| Bel Fuse, Inc. Class B | 5,450 | 129,165 |
| Electronic Equipment & Instruments–1.18% |
| Control4 Corp.(b) | 25,300 | 440,473 |
| Napco Security Technologies, Inc.(b) | 3,150 | 78,057 |
| Zebra Technologies Corp., Class A(b) | 2,150 | 453,951 |
| | | | 972,481 |
| Environmental & Facilities Services–0.16% |
| CECO Environmental Corp.(b) | 16,800 | 130,368 |
| Fertilizers & Agricultural Chemicals–0.71% |
| CF Industries Holdings, Inc. | 13,100 | 586,618 |
| Food Retail–0.21% |
| Natural Grocers by Vitamin Cottage, Inc.(b) | 13,600 | 168,368 |
| Footwear–2.25% |
| Crocs, Inc.(b) | 13,500 | 375,975 |
| Deckers Outdoor Corp.(b) | 8,350 | 1,321,053 |
| Rocky Brands, Inc. | 5,800 | 147,958 |
| | | | 1,844,986 |
| Forest Products–0.24% |
| Norbord, Inc. (Canada) | 7,850 | 199,861 |
| Gold–0.73% |
| Kirkland Lake Gold Ltd. (Canada) | 18,450 | 596,304 |
| Health Care Equipment–3.22% |
| FONAR Corp.(b) | 5,000 | 99,200 |
| Glaukos Corp.(b) | 3,600 | 259,668 |
| iRadimed Corp.(b) | 9,700 | 242,597 |
| Mesa Laboratories, Inc. | 500 | 118,345 |
| Novocure Ltd.(b) | 11,650 | 513,416 |
| SurModics, Inc.(b) | 3,850 | 167,244 |
| Tandem Diabetes Care, Inc.(b) | 20,250 | 1,243,552 |
| | | | 2,644,022 |
| | Shares | Value |
| Health Care Facilities–1.32% |
| Community Health Systems, Inc.(b) | 106,500 | $366,360 |
| Quorum Health Corp.(b) | 35,750 | 73,287 |
| Tenet Healthcare Corp.(b) | 29,450 | 644,955 |
| | | | 1,084,602 |
| Health Care REITs–0.17% |
| CareTrust REIT, Inc. | 5,750 | 139,438 |
| Health Care Services–0.89% |
| Amedisys, Inc.(b) | 3,500 | 447,370 |
| Psychemedics Corp. | 7,650 | 87,899 |
| RadNet, Inc.(b) | 16,300 | 197,393 |
| | | | 732,662 |
| Health Care Supplies–1.88% |
| BioLife Solutions, Inc.(b) | 14,450 | 241,893 |
| Lantheus Holdings, Inc.(b) | 16,650 | 402,264 |
| STAAR Surgical Co.(b) | 27,550 | 894,824 |
| | | | 1,538,981 |
| Health Care Technology–0.80% |
| Simulations Plus, Inc. | 4,500 | 101,385 |
| Tabula Rasa HealthCare, Inc.(b) | 10,450 | 556,567 |
| | | | 657,952 |
| Homefurnishing Retail–0.60% |
| RH(b) | 4,600 | 490,866 |
| Hotel & Resort REITs–0.42% |
| Braemar Hotels & Resorts, Inc. | 24,800 | 344,720 |
| Hotels, Resorts & Cruise Lines–0.05% |
| Red Lion Hotels Corp.(b) | 5,300 | 41,976 |
| Industrial Machinery–1.32% |
| Harsco Corp.(b) | 38,650 | 875,036 |
| LB Foster Co., Class A(b) | 9,850 | 211,676 |
| | | | 1,086,712 |
| Industrial REITs–0.42% |
| Industrial Logistics Properties Trust | 17,350 | 344,398 |
| Insurance Brokers–0.38% |
| eHealth, Inc.(b) | 5,100 | 309,774 |
| Interactive Home Entertainment–1.71% |
| Glu Mobile, Inc.(b) | 128,400 | 1,404,696 |
| Interactive Media & Services–1.72% |
| Care.com, Inc.(b) | 11,550 | 193,463 |
| Meet Group, Inc. (The)(b) | 74,650 | 415,054 |
| Travelzoo(b) | 12,050 | 211,718 |
| TripAdvisor, Inc.(b) | 11,100 | 590,853 |
| | | | 1,411,088 |
| Internet & Direct Marketing Retail–2.41% |
| Etsy, Inc.(b) | 21,350 | 1,441,979 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco All Cap Market Neutral Fund |
| | Shares | Value |
| Internet & Direct Marketing Retail–(continued) |
| Expedia Group, Inc. | 1,600 | $207,744 |
| Leaf Group Ltd.(b) | 4,800 | 40,272 |
| Rubicon Project, Inc. (The)(b) | 45,650 | 291,703 |
| | | | 1,981,698 |
| Internet Services & Infrastructure–0.27% |
| Endurance International Group Holdings, Inc.(b) | 39,400 | 217,882 |
| Investment Banking & Brokerage–0.26% |
| Greenhill & Co., Inc. | 10,200 | 211,242 |
| IT Consulting & Other Services–0.60% |
| Unisys Corp.(b) | 44,000 | 493,240 |
| Leisure Facilities–1.63% |
| SeaWorld Entertainment, Inc.(b) | 45,550 | 1,212,541 |
| Town Sports International Holdings, Inc.(b) | 35,050 | 127,231 |
| | | | 1,339,772 |
| Leisure Products–0.06% |
| MasterCraft Boat Holdings, Inc.(b) | 1,850 | 45,769 |
| Life Sciences Tools & Services–1.14% |
| Champions Oncology, Inc.(b) | 12,950 | 117,586 |
| Fluidigm Corp.(b) | 19,200 | 263,808 |
| Medpace Holdings, Inc.(b) | 9,850 | 553,274 |
| | | | 934,668 |
| Motorcycle Manufacturers–0.36% |
| Harley-Davidson, Inc. | 7,850 | 292,256 |
| Office Services & Supplies–0.06% |
| Pitney Bowes, Inc. | 6,850 | 48,704 |
| Oil & Gas Drilling–0.02% |
| Noble Corp. PLC(b) | 7,700 | 20,251 |
| Oil & Gas Equipment & Services–1.14% |
| DMC Global, Inc. | 10,200 | 706,860 |
| ION Geophysical Corp.(b) | 5,350 | 68,426 |
| KLX Energy Services Holdings, Inc.(b) | 4,950 | 138,847 |
| Mammoth Energy Services, Inc. | 1,550 | 24,165 |
| | | | 938,298 |
| Oil & Gas Exploration & Production–3.14% |
| Bonanza Creek Energy, Inc.(b) | 5,800 | 139,606 |
| California Resources Corp.(b) | 25,050 | 528,054 |
| Comstock Resources, Inc.(b) | 19,100 | 116,510 |
| Evolution Petroleum Corp. | 35,400 | 248,862 |
| Panhandle Oil & Gas, Inc., Class A | 3,350 | 50,250 |
| SM Energy Co. | 3,800 | 60,534 |
| W&T Offshore, Inc.(b) | 137,700 | 878,526 |
| Whiting Petroleum Corp.(b) | 20,250 | 554,647 |
| | | | 2,576,989 |
| Oil & Gas Refining & Marketing–1.22% |
| Adams Resources & Energy, Inc. | 3,200 | 115,680 |
| | Shares | Value |
| Oil & Gas Refining & Marketing–(continued) |
| Renewable Energy Group, Inc.(b) | 36,650 | $883,998 |
| | | | 999,678 |
| Oil & Gas Storage & Transportation–0.10% |
| Overseas Shipholding Group, Inc., Class A(b) | 47,200 | 85,904 |
| Packaged Foods & Meats–0.60% |
| Freshpet, Inc.(b) | 7,900 | 352,814 |
| TreeHouse Foods, Inc.(b) | 2,100 | 140,658 |
| | | | 493,472 |
| Paper Products–1.83% |
| Domtar Corp. | 10,600 | 518,340 |
| Resolute Forest Products, Inc. | 70,050 | 554,095 |
| Verso Corp., Class A(b) | 19,200 | 428,544 |
| | | | 1,500,979 |
| Personal Products–0.10% |
| Herbalife Nutrition Ltd.(b) | 1,600 | 84,560 |
| Pharmaceuticals–4.77% |
| Assertio Therapeutics, Inc.(b) | 44,350 | 184,940 |
| Cerecor, Inc.(b) | 25,900 | 140,896 |
| Chiasma, Inc.(b) | 9,950 | 60,496 |
| Corcept Therapeutics, Inc.(b) | 25,400 | 314,452 |
| Endo International PLC(b) | 65,550 | 491,625 |
| Horizon Pharma PLC(b) | 17,050 | 435,286 |
| Innoviva, Inc.(b) | 66,150 | 928,084 |
| Mallinckrodt PLC(b) | 24,550 | 379,543 |
| Pacira BioSciences, Inc.(b) | 22,500 | 895,950 |
| SIGA Technologies, Inc.(b) | 9,200 | 48,208 |
| Supernus Pharmaceuticals, Inc.(b) | 850 | 31,221 |
| | | | 3,910,701 |
| Property & Casualty Insurance–0.34% |
| Ambac Financial Group, Inc.(b) | 14,950 | 279,565 |
| Real Estate Development–0.17% |
| Maui Land & Pineapple Co., Inc.(b) | 11,600 | 138,852 |
| Real Estate Services–0.26% |
| Altisource Portfolio Solutions S.A.(b) | 8,950 | 211,847 |
| Regional Banks–3.06% |
| ACNB Corp. | 3,550 | 134,438 |
| Bank of Commerce Holdings | 3,500 | 37,870 |
| Bank of Marin Bancorp | 2,550 | 107,993 |
| C&F Financial Corp. | 1,500 | 72,750 |
| First Financial Northwest, Inc. | 6,700 | 112,091 |
| Hawthorn Bancshares, Inc. | 1,700 | 39,967 |
| OFG Bancorp (Puerto Rico) | 51,500 | 1,039,270 |
| Popular, Inc. (Puerto Rico) | 16,800 | 969,528 |
| | | | 2,513,907 |
| Residential REITs–0.64% |
| Bluerock Residential Growth REIT, Inc. | 19,550 | 219,155 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco All Cap Market Neutral Fund |
| | Shares | Value |
| Residential REITs–(continued) |
| BRT Apartments Corp. | 13,850 | $194,316 |
| Clipper Realty, Inc. | 8,600 | 112,230 |
| | | | 525,701 |
| Restaurants–1.11% |
| BJ’s Restaurants, Inc. | 1,150 | 57,397 |
| Brinker International, Inc. | 11,400 | 487,578 |
| Chipotle Mexican Grill, Inc.(b) | 160 | 110,086 |
| Dine Brands Global, Inc. | 2,850 | 252,681 |
| | | | 907,742 |
| Semiconductor Equipment–2.09% |
| Nanometrics, Inc.(b) | 21,150 | 630,058 |
| Xperi Corp. | 43,600 | 1,083,460 |
| | | | 1,713,518 |
| Semiconductors–3.09% |
| Broadcom, Inc. | 2,280 | 725,952 |
| Intel Corp. | 1,850 | 94,424 |
| Lattice Semiconductor Corp.(b) | 90,850 | 1,176,507 |
| Pixelworks, Inc.(b) | 32,300 | 148,903 |
| SMART Global Holdings, Inc.(b) | 4,700 | 102,178 |
| Xilinx, Inc. | 2,400 | 288,336 |
| | | | 2,536,300 |
| Specialized REITs–1.61% |
| CoreCivic, Inc. | 25,950 | 540,019 |
| Lamar Advertising Co., Class A | 5,100 | 421,617 |
| Outfront Media, Inc. REIT | 12,900 | 307,407 |
| Safehold, Inc. | 2,100 | 52,983 |
| | | | 1,322,026 |
| Specialty Chemicals–0.13% |
| Livent Corp.(b) | 9,900 | 106,722 |
| Specialty Stores–1.58% |
| Barnes & Noble Education, Inc.(b) | 47,000 | 202,100 |
| Dick’s Sporting Goods, Inc. | 25,800 | 954,600 |
| Vitamin Shoppe, Inc.(b) | 22,200 | 139,416 |
| | | | 1,296,116 |
| Steel–1.53% |
| Warrior Met Coal, Inc. | 40,550 | 1,257,050 |
| | Shares | Value |
| Technology Distributors–0.40% |
| PCM, Inc.(b) | 12,000 | $331,080 |
| Technology Hardware, Storage & Peripherals–1.37% |
| Avid Technology, Inc.(b) | 22,600 | 171,760 |
| Xerox Corp. | 28,650 | 955,764 |
| | | | 1,127,524 |
| Thrifts & Mortgage Finance–0.42% |
| Federal Agricultural Mortgage Corp. Class C | 2,150 | 164,432 |
| FS Bancorp, Inc. | 2,300 | 118,887 |
| Severn Bancorp, Inc. | 1,087 | 10,066 |
| Sterling Bancorp, Inc./MI | 4,950 | 48,460 |
| | | | 341,845 |
| Tobacco–0.32% |
| Turning Point Brands, Inc. | 6,150 | 263,036 |
| Trading Companies & Distributors–0.66% |
| General Finance Corp.(b) | 18,150 | 168,795 |
| Systemax, Inc. | 1,600 | 36,336 |
| Titan Machinery, Inc.(b) | 6,750 | 116,100 |
| Transcat, Inc.(b) | 4,600 | 106,030 |
| Veritiv Corp.(b) | 4,000 | 111,560 |
| | | | 538,821 |
| Trucking–0.28% |
| YRC Worldwide, Inc.(b) | 33,950 | 231,200 |
| Total Common Stocks & Other Equity Interests (Cost $65,801,493) | 72,445,976 |
|
| Money Market Funds–8.91% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(c) | 2,558,513 | 2,558,513 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(c) | 1,827,520 | 1,828,069 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(c) | 2,924,014 | 2,924,014 |
| Total Money Market Funds (Cost $7,310,302) | 7,310,596 |
| TOTAL INVESTMENTS IN SECURITIES–97.18% (Cost $73,111,795) | 79,756,572 |
| OTHER ASSETS LESS LIABILITIES–2.82% | 2,311,454 |
| NET ASSETS–100.00% | $82,068,026 |
Investment Abbreviations:
| REIT | – Real Estate Investment Trust |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Non-income producing security. |
| (c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco All Cap Market Neutral Fund |
| Open Over-The-Counter Total Return Swap Agreements |
| Reference Entity | Counterparty | Maturity Date | Floating Rate
Index(1) | Payment
Frequency | Notional
Value | Upfront
Payments
Paid
(Received) | Value(2)(3) | Unrealized
Appreciation
(Depreciation)(2)(3) | Net Value of
Reference
Entities |
| Equity Risk | | | | | | | | | |
| Equity Securities — Short | Morgan Stanley & Co. LLC | 04/22/2021 | Federal Funds floating rate | Monthly | $(73,126,184) | $— | $(160,204) | $(160,204) | $(73,289,749) |
| (1) | The Fund receives or pays the total return on the long and short positions underlying the total return swap and pays or receives a specific Federal Funds floating rate. |
| (2) | Amount includes $3,361 of dividends payable and financing fees related to the reference entities. |
| (3) | Swap agreements collateralized by $123,059 cash held with Morgan Stanley & Co. LLC, the Counterparty. |
The following table represents the individual short positions and related values of equity securities underlying the total return swaps with Morgan Stanley & Co. LLC, as of April 30, 2019.
| | Shares | Value | Percentage
of
Reference
Entities |
| Equity Securities - Short |
| Advertising |
| Boston Omaha Corp., Class A | (7,000) | $ (164,850) | 0.24 |
| Aerospace & Defense |
| BWX Technologies, Inc. | (2,600) | ��� (132,860) | 0.19 |
| Airlines |
| American Airlines Group, Inc. | (7,150) | (244,387) | 0.33 |
| Alternative Carriers |
| Iridium Communications, Inc. | (15,900) | (436,614) | 0.61 |
| Aluminum |
| Century Aluminum Co. | (82,700) | (695,507) | 0.99 |
| Application Software |
| Asure Software, Inc. | (11,050) | (76,908) | 0.10 |
| Digimarc Corp. | (11,250) | (335,137) | 0.43 |
| Nutanix, Inc., Class A | (1,400) | (60,466) | 0.08 |
| Park City Group, Inc. | (10,250) | (79,233) | 0.11 |
| Veritone, Inc. | (18,750) | (116,062) | 0.15 |
| VirnetX Holding Corp. | (59,950) | (382,481) | 0.52 |
| | | (1,050,287) | |
| Asset Management & Custody Banks |
| Safeguard Scientifics, Inc. | (10,150) | (116,116) | 0.15 |
| WisdomTree Investments, Inc. | (42,100) | (303,120) | 0.45 |
| | | (419,236) | |
| Auto Parts & Equipment |
| Horizon Global Corp. | (25,250) | (70,195) | 0.10 |
| Kandi Technologies Group, Inc. | (4,950) | (26,136) | 0.04 |
| LCI Industries | (6,350) | (557,847) | 0.80 |
| | | (654,178) | |
| Automobile Manufacturers |
| Tesla, Inc. | (950) | (226,756) | 0.34 |
| | Shares | Value | Percentage
of
Reference
Entities |
| Automotive Retail |
| Camping World Holdings, Inc., Class A | (30,500) | $ (455,060) | 0.57 |
| CarMax, Inc. | (10,600) | (825,316) | 1.12 |
| Carvana Co. | (5,150) | (368,534) | 0.47 |
| | | (1,648,910) | |
| Biotechnology |
| Abeona Therapeutics, Inc. | (34,400) | (264,880) | 0.39 |
| ACADIA Pharmaceuticals, Inc. | (16,350) | (393,217) | 0.54 |
| Adamas Pharmaceuticals, Inc. | (24,450) | (154,524) | 0.21 |
| ADMA Biologics, Inc. | (29,950) | (138,668) | 0.19 |
| Alnylam Pharmaceuticals, Inc. | (12,350) | (1,103,349) | 1.48 |
| Bluebird Bio, Inc. | (1,300) | (184,379) | 0.25 |
| Clovis Oncology, Inc. | (14,400) | (263,088) | 0.41 |
| Corbus Pharmaceuticals Holdings, Inc. | (16,750) | (119,595) | 0.17 |
| Dynavax Technologies Corp. | (20,550) | (136,658) | 0.18 |
| Exact Sciences Corp. | (11,100) | (1,095,459) | 1.43 |
| Flexion Therapeutics, Inc. | (16,400) | (173,840) | 0.24 |
| Immunomedics, Inc. | (53,850) | (862,677) | 1.25 |
| Intrexon Corp. | (26,050) | (112,797) | 0.16 |
| La Jolla Pharmaceutical Co. | (21,950) | (176,697) | 0.23 |
| PolarityTE, Inc. | (20,900) | (188,936) | 0.24 |
| Portola Pharmaceuticals, Inc. | (19,000) | (670,700) | 0.92 |
| Proteostasis Therapeutics, Inc. | (35,350) | (38,885) | 0.06 |
| Sorrento Therapeutics, Inc. | (26,350) | (96,178) | 0.13 |
| Tyme Technologies, Inc. | (92,750) | (140,052) | 0.20 |
| Ultragenyx Pharmaceutical, Inc. | (4,600) | (303,600) | 0.43 |
| XOMA Corp. | (6,050) | (71,753) | 0.10 |
| | | (6,689,932) | |
| Building Products |
| Caesarstone Ltd. | (28,950) | (438,014) | 0.61 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco All Cap Market Neutral Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| Casinos & Gaming |
| Century Casinos, Inc. | (11,150) | $ (101,465) | 0.14 |
| Empire Resorts., Inc. | (3,150) | (43,880) | 0.06 |
| Golden Entertainment, Inc. | (6,750) | (106,177) | 0.15 |
| Scientific Games Corp. | (15,950) | (368,923) | 0.50 |
| Stars Group, Inc. (The) | (41,400) | (782,046) | 1.08 |
| Wynn Resorts, Ltd. | (6,400) | (924,480) | 1.25 |
| | | (2,326,971) | |
| Commodity Chemicals |
| Core Molding Technologies, Inc. | (3,469) | (28,168) | 0.04 |
| Loop Industries, Inc. | (14,200) | (100,536) | 0.15 |
| Trecora Resources | (7,750) | (72,463) | 0.10 |
| | | (201,167) | |
| Communications Equipment |
| Applied Optoelectronics, Inc. | (17,950) | (224,734) | 0.30 |
| EMCORE Corp. | (24,550) | (96,236) | 0.14 |
| ViaSat, Inc. | (7,600) | (690,232) | 0.92 |
| | | (1,011,202) | |
| Construction & Engineering |
| Argan, Inc. | (13,050) | (624,051) | 0.89 |
| Granite Construction, Inc. | (6,850) | (307,496) | 0.42 |
| | | (931,547) | |
| Construction Machinery & Heavy Trucks |
| FreightCar America, Inc. | (9,250) | (64,010) | 0.10 |
| Construction Materials |
| Forterra, Inc. | (58,300) | (270,512) | 0.38 |
| Martin Marietta Materials, Inc. | (4,450) | (987,455) | 1.29 |
| Summit Materials, Inc., Class A | (31,300) | (548,376) | 0.71 |
| US Concrete, Inc. | (6,150) | (289,849) | 0.39 |
| Vulcan Materials Co. | (800) | (100,888) | 0.13 |
| | | (2,197,080) | |
| Consumer Electronics |
| Universal Electronics, Inc. | (5,650) | (214,983) | 0.29 |
| Vuzix Corp. | (27,200) | (64,464) | 0.10 |
| | | (279,447) | |
| Distributors |
| LKQ Corp. | (4,800) | (144,480) | 0.21 |
| Pool Corp. | (700) | (128,618) | 0.17 |
| | | (273,098) | |
| Diversified Banks |
| Bank of NT Butterfield & Son Ltd. (The) | (26,800) | (1,072,536) | 1.38 |
| | Shares | Value | Percentage
of
Reference
Entities |
| Diversified Chemicals |
| LSB Industries, Inc. | (24,950) | $ (145,958) | 0.22 |
| Diversified Metals & Mining |
| Compass Minerals International, Inc. | (3,500) | (200,865) | 0.28 |
| Diversified Support Services |
| Healthcare Services Group, Inc. | (3,600) | (121,860) | 0.17 |
| Ritchie Bros Auctioneers, Inc. | (7,200) | (250,488) | 0.34 |
| | | (372,348) | |
| Electrical Components & Equipment |
| Sunrun, Inc. | (37,250) | (566,572) | 0.85 |
| Vivint Solar, Inc. | (30,150) | (163,112) | 0.24 |
| | | (729,684) | |
| Electronic Components |
| Akoustis Technologies, Inc. | (26,850) | (177,210) | 0.23 |
| Electronic Equipment & Instruments |
| Coherent, Inc. | (6,150) | (910,261) | 1.31 |
| Iteris, Inc. | (28,550) | (123,907) | 0.17 |
| | | (1,034,168) | |
| Electronic Manufacturing Services |
| IPG Photonics Corp. | (6,200) | (1,083,326) | 1.52 |
| Environmental & Facilities Services |
| Team, Inc. | (21,050) | (355,745) | 0.53 |
| Fertilizers & Agricultural Chemicals |
| Scotts Miracle-Gro Co. (The) | (600) | (51,012) | 0.07 |
| General Merchandise Stores |
| Big Lots, Inc. | (9,750) | (362,310) | 0.50 |
| Health Care Equipment |
| AxoGen, Inc. | (36,250) | (851,150) | 1.02 |
| Cantel Medical Corp. | (4,550) | (313,677) | 0.41 |
| CryoPort, Inc. | (22,850) | (321,499) | 0.44 |
| Helius Medical Technologies, Inc. | (13,700) | (33,565) | 0.05 |
| Insulet Corp. | (4,600) | (396,750) | 0.52 |
| Invacare Corp. | (31,450) | (232,730) | 0.32 |
| Nevro Corp. | (8,600) | (530,706) | 0.75 |
| NuVasive, Inc. | (11,650) | (705,990) | 0.91 |
| Oxford Immunotec Global PLC | (20,500) | (332,715) | 0.45 |
| Penumbra, Inc. | (3,350) | (450,575) | 0.60 |
| Pulse Biosciences, Inc. | (19,250) | (308,385) | 0.43 |
| SeaSpine Holdings Corp. | (4,750) | (69,968) | 0.09 |
| ViewRay, Inc. | (91,300) | (635,448) | 0.90 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco All Cap Market Neutral Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| Health Care Equipment—(continued) |
| Wright Medical Group NV | (22,600) | $ (668,282) | 0.89 |
| | | (5,851,440) | |
| Health Care Supplies |
| Align Technology, Inc. | (900) | (292,212) | 0.36 |
| Endologix, Inc. | (6,600) | (42,372) | 0.05 |
| Enzo Biochem, Inc. | (42,100) | (146,087) | 0.21 |
| Senseonics Holdings, Inc. | (71,100) | (165,663) | 0.21 |
| Sientra, Inc. | (24,900) | (209,658) | 0.29 |
| | | (855,992) | |
| Health Care Technology |
| Medidata Solutions, Inc. | (4,350) | (392,979) | 0.52 |
| Home Furnishings |
| Mohawk Industries, Inc. | (7,800) | (1,062,750) | 1.43 |
| Home Improvement Retail |
| Floor & Decor Holdings, Inc., Class A | (22,650) | (1,087,653) | 1.47 |
| Lumber Liquidators Holdings, Inc. | (26,200) | (346,364) | 0.45 |
| Tile Shop Holdings, Inc. | (41,450) | (201,447) | 0.31 |
| | | (1,635,464) | |
| Homebuilding |
| LGI Homes, Inc. | (2,800) | (194,068) | 0.27 |
| New Home Co., Inc. (The) | (15,050) | (69,380) | 0.10 |
| William Lyon Homes, Class A | (21,200) | (357,432) | 0.47 |
| | | (620,880) | |
| Homefurnishing Retail |
| At Home Group, Inc. | (47,300) | (1,111,077) | 1.46 |
| Hotels, Resorts & Cruise Lines |
| Marriott Vacations Worldwide Corp. | (5,750) | (607,373) | 0.85 |
| Hypermarkets & Super Centers |
| PriceSmart, Inc. | (1,950) | (116,630) | 0.16 |
| Industrial Machinery |
| CIRCOR International, Inc. | (7,800) | (263,016) | 0.39 |
| ExOne Co. (The) | (16,300) | (144,418) | 0.20 |
| John Bean Technologies Corp. | (600) | (65,874) | 0.08 |
| NN, Inc. | (39,350) | (355,724) | 0.51 |
| Welbilt, Inc. | (37,600) | (632,808) | 0.88 |
| | | (1,461,840) | |
| Integrated Telecommunication Services |
| IDT Corp., Class B | (11,546) | (82,208) | 0.11 |
| Interactive Media & Services |
| Facebook, Inc., Class A | (2,350) | (454,490) | 0.59 |
| | Shares | Value | Percentage
of
Reference
Entities |
| Interactive Media & Services—(continued) |
| Snap, Inc., Class A | (99,600) | $ (1,109,544) | 1.62 |
| Zillow Group, Inc., Class C | (31,700) | (1,058,780) | 1.54 |
| | | (2,622,814) | |
| Internet & Direct Marketing Retail |
| GrubHub, Inc. | (5,900) | (394,061) | 0.52 |
| Liquidity Services, Inc. | (24,650) | (167,373) | 0.22 |
| Wayfair, Inc., Class A | (6,700) | (1,086,405) | 1.38 |
| | | (1,647,839) | |
| Internet Services & Infrastructure |
| Shopify, Inc., Class A | (4,850) | (1,181,120) | 1.48 |
| Investment Banking & Brokerage |
| GAIN Capital Holdings, Inc. | (13,350) | (70,354) | 0.10 |
| Interactive Brokers Group, Inc., Class A | (13,300) | (721,392) | 1.00 |
| | | (791,746) | |
| IT Consulting & Other Services |
| Switch, Inc., Class A | (35,000) | (380,450) | 0.51 |
| Leisure Products |
| Mattel, Inc. | (53,300) | (649,727) | 0.89 |
| Life & Health Insurance |
| Trupanion, Inc. | (4,900) | (160,720) | 0.22 |
| Life Sciences Tools & Services |
| ChromaDex Corp. | (31,050) | (138,173) | 0.18 |
| Marine |
| Genco Shipping & Trading Ltd. | (5,250) | (53,025) | 0.07 |
| Matson, Inc. | (7,250) | (287,173) | 0.39 |
| | | (340,198) | |
| Movies & Entertainment |
| Lions Gate Entertainment Corp., Class A | (2,700) | (39,393) | 0.06 |
| Netflix, Inc. | (980) | (363,129) | 0.51 |
| | | (402,522) | |
| Multi-line Insurance |
| American International Group, Inc. | (2,100) | (99,897) | 0.13 |
| Multi-Utilities |
| Algonquin Power & Utilities Corp. | (5,200) | (59,280) | 0.08 |
| Oil & Gas Equipment & Services |
| Frank’s International NV | (5,400) | (31,536) | 0.05 |
| Gulf Island Fabrication, Inc. | (5,350) | (46,010) | 0.07 |
| Natural Gas Services Group, Inc. | (3,850) | (61,870) | 0.09 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco All Cap Market Neutral Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| Oil & Gas Equipment & Services—(continued) |
| Smart Sand, Inc. | (35,100) | $ (137,943) | 0.21 |
| | | (277,359) | |
| Oil & Gas Exploration & Production |
| Callon Petroleum Co. | (46,300) | (347,713) | 0.53 |
| Centennial Resource Development, Inc., Class A | (18,650) | (196,385) | 0.28 |
| Jagged Peak Energy, Inc. | (22,250) | (235,182) | 0.34 |
| Lilis Energy, Inc. | (64,000) | (81,920) | 0.10 |
| Matador Resources Co. | (30,350) | (597,591) | 0.90 |
| PDC Energy, Inc. | (2,300) | (100,027) | 0.15 |
| Ring Energy, Inc. | (50,700) | (262,626) | 0.38 |
| Tellurian, Inc. | (103,150) | (979,925) | 1.40 |
| | | (2,801,369) | |
| Oil & Gas Refining & Marketing |
| Green Plains, Inc. | (32,350) | (561,920) | 0.76 |
| Oil & Gas Storage & Transportation |
| Cheniere Energy, Inc. | (2,350) | (151,222) | 0.22 |
| Enbridge, Inc. | (9,850) | (363,859) | 0.51 |
| Frontline Ltd. | (79,200) | (648,648) | 0.87 |
| NextDecade Corp. | (11,350) | (62,993) | 0.08 |
| ONEOK, Inc. | (1,500) | (101,895) | 0.14 |
| Targa Resources Corp. | (10,900) | (437,635) | 0.61 |
| TransCanada Corp. | (3,250) | (155,220) | 0.21 |
| | | (1,921,472) | |
| Packaged Foods & Meats |
| Sanderson Farms, Inc. | (4,200) | (636,846) | 0.82 |
| Personal Products |
| Coty, Inc., Class A | (44,900) | (485,818) | 0.69 |
| Revlon, Inc., Class A | (9,950) | (212,432) | 0.26 |
| | | (698,250) | |
| Pharmaceuticals |
| Aclaris Therapeutics, Inc. | (33,150) | (208,845) | 0.28 |
| Aerie Pharmaceuticals, Inc. | (10,850) | (413,928) | 0.59 |
| Akorn, Inc. | (33,600) | (90,720) | 0.14 |
| Canopy Growth Corp. | (21,750) | (1,098,810) | 1.41 |
| Medicines Co. (The) | (19,850) | (634,207) | 0.80 |
| Ocular Therapeutix, Inc. | (36,600) | (137,250) | 0.19 |
| Paratek Pharmaceuticals, Inc. | (25,300) | (139,403) | 0.20 |
| Reata Pharmaceuticals, Inc., Class A | (10,300) | (808,138) | 1.13 |
| TherapeuticsMD, Inc. | (192,700) | (828,610) | 1.10 |
| Zynerba Pharmaceuticals, Inc. | (16,050) | (200,946) | 0.22 |
| | | (4,560,857) | |
| | Shares | Value | Percentage
of
Reference
Entities |
| Publishing |
| New York Times Co. (The), Class A | (1,850) | $ (61,328) | 0.08 |
| Real Estate Operating Companies |
| Trinity Place Holdings, Inc. | (16,100) | (63,112) | 0.09 |
| Real Estate Services |
| eXp World Holdings, Inc. | (7,400) | (80,660) | 0.10 |
| Regional Banks |
| Banc of California, Inc. | (3,850) | (55,864) | 0.08 |
| Farmers & Merchants Bancorp, Inc. | (3,000) | (95,220) | 0.13 |
| Howard Bancorp, Inc. | (7,691) | (115,596) | 0.15 |
| Live Oak Bancshares, Inc. | (37,400) | (653,378) | 0.84 |
| Mid Penn Bancorp, Inc. | (1,850) | (45,103) | 0.06 |
| MidSouth Bancorp, Inc. | (12,550) | (148,968) | 0.20 |
| Republic First Bancorp, Inc. | (50,900) | (260,608) | 0.38 |
| Triumph Bancorp, Inc. | (6,500) | (201,565) | 0.27 |
| | | (1,576,302) | |
| Reinsurance |
| Greenlight Capital Re Ltd., Class A | (14,200) | (170,116) | 0.21 |
| Restaurants |
| Del Friscos Restaurant Group, Inc. | (29,850) | (199,995) | 0.28 |
| Habit Restaurants, Inc. (The), Class A | (8,750) | (93,275) | 0.12 |
| Shake Shack, Inc., Class A | (1,350) | (82,755) | 0.11 |
| | | (376,025) | |
| Retail REITs |
| CBL & Associates Properties, Inc. | (133,100) | (134,431) | 0.19 |
| Macerich Co. (The) | (1,750) | (70,245) | 0.10 |
| Pennsylvania Real Estate Investment Trust | (47,700) | (287,154) | 0.39 |
| Washington Prime Group, Inc. | (173,600) | (772,520) | 1.10 |
| | | (1,264,350) | |
| Semiconductor Equipment |
| AXT, Inc. | (35,000) | (199,500) | 0.22 |
| PDF Solutions, Inc. | (27,000) | (350,460) | 0.49 |
| Ultra Clean Holdings, Inc. | (31,650) | (378,850) | 0.53 |
| | | (928,810) | |
| Semiconductors |
| Adesto Technologies Corp. | (25,350) | (161,479) | 0.23 |
| Alpha & Omega Semiconductor Ltd. | (8,600) | (106,640) | 0.15 |
| Everspin Technologies, Inc. | (10,000) | (84,800) | 0.12 |
| First Solar, Inc. | (17,600) | (1,082,928) | 1.48 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 12 | Invesco All Cap Market Neutral Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| Semiconductors—(continued) |
| GSI Technology, Inc. | (6,100) | $ (49,593) | 0.07 |
| Impinj, Inc. | (18,100) | (529,787) | 0.53 |
| NVIDIA Corp. | (6,050) | (1,095,050) | 1.58 |
| Universal Display Corp. | (6,450) | (1,029,420) | 1.51 |
| | | (4,139,697) | |
| Soft Drinks |
| Celsius Holdings, Inc. | (14,400) | (59,616) | 0.08 |
| Specialized REITs |
| CyrusOne, Inc. | (19,450) | (1,083,170) | 1.48 |
| Equinix, Inc. | (280) | (127,316) | 0.17 |
| PotlatchDeltic Corp. | (7,000) | (270,620) | 0.37 |
| Uniti Group, Inc. | (36,150) | (397,289) | 0.56 |
| | | (1,878,395) | |
| Specialty Chemicals |
| Advanced Emissions Solutions, Inc. | (16,700) | (188,710) | 0.30 |
| Albemarle Corp. | (2,850) | (213,921) | 0.31 |
| Flotek Industries, Inc. | (46,600) | (166,362) | 0.23 |
| Northern Technologies International Corp. | (1,900) | (50,312) | 0.07 |
| | | (619,305) | |
| Specialty Stores |
| Big 5 Sporting Goods Corp. | (22,250) | (58,518) | 0.08 |
| Tiffany & Co. | (1,300) | (140,166) | 0.19 |
| | | (198,684) | |
| Steel |
| Allegheny Technologies, Inc. | (1,950) | (48,594) | 0.07 |
| Ampco-Pittsburgh Corp. | (12,550) | (40,411) | 0.06 |
| | Shares | Value | Percentage
of
Reference
Entities |
| Steel—(continued) |
| Haynes International, Inc. | (1,650) | $ (53,312) | 0.07 |
| Ramaco Resources, Inc. | (25,550) | (171,696) | 0.21 |
| United States Steel Corp. | (28,250) | (440,700) | 0.62 |
| Worthington Industries, Inc. | (2,550) | (102,331) | 0.14 |
| | | (857,044) | |
| Systems Software |
| FireEye, Inc. | (11,800) | (189,036) | 0.25 |
| Technology Hardware, Storage & Peripherals |
| 3D Systems Corp. | (14,500) | (154,280) | 0.22 |
| Intevac, Inc. | (22,300) | (106,817) | 0.15 |
| | | (261,097) | |
| Thrifts & Mortgage Finance |
| Impac Mortgage Holdings, Inc. | (4,591) | (15,793) | 0.02 |
| Meta Financial Group, Inc. | (22,800) | (587,328) | 0.71 |
| | | (603,121) | |
| Tobacco |
| Pyxus International, Inc. | (7,750) | (176,933) | 0.21 |
| Trading Companies & Distributors |
| EVI Industries, Inc. | (5,300) | (193,450) | 0.27 |
| Huttig Building Products, Inc. | (11,741) | (32,053) | 0.05 |
| | | (225,503) | |
| Water Utilities |
| Cadiz, Inc. | (15,450) | (158,208) | 0.21 |
| Total Equity Securities - Short | $ (73,289,749) | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 13 | Invesco All Cap Market Neutral Fund |
Portfolio Composition
By sector, based on total net assets
as of April 30, 2019
| | Equity Securities | Gross
Exposure3 | Net
Exposure4 |
| | Long1 | Short2 |
| Health Care | 22.2% | 22.5% | 44.7% | -0.3% |
| Information Technology | 17.3 | 17.4 | 34.7 | -0.1 |
| Consumer Discretionary | 12.3 | 17.1 | 29.4 | -4.8 |
| Energy | 7.7 | 6.8 | 14.5 | 0.9 |
| Industrials | 6.7 | 6.1 | 12.8 | 0.6 |
| Financials | 5.8 | 5.9 | 11.7 | -0.1 |
| Materials | 5.7 | 6.5 | 12.2 | -0.8 |
| Communication Services | 5.4 | 0.6 | 6.0 | 4.8 |
| Consumer Staples | 3.7 | 4.0 | 7.7 | -0.3 |
| Real Estate | 1.2 | 2.1 | 3.3 | -0.9 |
| Utilities | 0.3 | 0.3 | 0.6 | 0.0 |
| Money Market Funds Plus Other Assets Less Liabilities | 11.7 | - | 11.7 | 11.7 |
| Total | 100.0% | 89.3% | 189.3% | 10.7% |
| 1 | Represents the value of the equity securities in the portfolio. |
| 2 | Represents the value of the equity securities underlying the Fund’s equity short portfolio swap. |
| 3 | Represents the cumulative exposure of the Fund’s long and short positions. |
| 4 | Represents the net exposure of the Fund’s long and short positions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 | Invesco All Cap Market Neutral Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $65,801,493) | $72,445,976 |
| Investments in affiliated money market funds, at value (Cost $7,310,302) | 7,310,596 |
| Other investments: | |
| Swaps receivable — OTC | 15,381 |
| Deposits with brokers: | |
| Cash collateral — OTC Derivatives | 123,059 |
| Foreign currencies, at value (Cost $351) | 350 |
| Receivable for: | |
| Investments sold | 11,051,397 |
| Fund shares sold | 9,083 |
| Dividends | 38,561 |
| Investment for trustee deferred compensation and retirement plans | 14,979 |
| Other assets | 38,648 |
| Total assets | 91,048,030 |
| Liabilities: | |
| Other investments: | |
| Unrealized depreciation on swap agreements—OTC | 160,204 |
| Payable for: | |
| Investments purchased | 1,852,130 |
| Dividends | 16,668 |
| Fund shares reacquired | 6,806,242 |
| Amount due custodian | 61,900 |
| Accrued fees to affiliates | 11,191 |
| Accrued trustees’ and officers’ fees and benefits | 1,598 |
| Accrued other operating expenses | 55,092 |
| Trustee deferred compensation and retirement plans | 14,979 |
| Total liabilities | 8,980,004 |
| Net assets applicable to shares outstanding | $82,068,026 |
| Net assets consist of: | |
| Shares of beneficial interest | $86,818,717 |
| Distributable earnings | (4,750,691) |
| | $82,068,026 |
| Net Assets: |
| Class A | $8,079,458 |
| Class C | $2,206,023 |
| Class R | $86,168 |
| Class Y | $19,546,776 |
| Class R5 | $7,198 |
| Class R6 | $52,142,403 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 1,163,416 |
| Class C | 333,086 |
| Class R | 12,598 |
| Class Y | 2,774,907 |
| Class R5 | 1,018 |
| Class R6 | 7,382,595 |
| Class A: | |
| Net asset value per share | $6.94 |
Maximum offering price per share
(Net asset value of $6.94 ÷ 94.50%) | $7.34 |
| Class C: | |
| Net asset value and offering price per share | $6.62 |
| Class R: | |
| Net asset value and offering price per share | $6.84 |
| Class Y: | |
| Net asset value and offering price per share | $7.04 |
| Class R5: | |
| Net asset value and offering price per share | $7.07 |
| Class R6: | |
| Net asset value and offering price per share | $7.06 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 15 | Invesco All Cap Market Neutral Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $3,507) | $488,086 |
| Dividends from affiliated money market funds | 118,436 |
| Total investment income | 606,522 |
| Expenses: | |
| Advisory fees | 385,858 |
| Administrative services fees | 12,542 |
| Custodian fees | 3,749 |
| Distribution fees: | |
| Class A | 10,972 |
| Class C | 13,007 |
| Class R | 226 |
| Transfer agent fees — A, C, R and Y | 28,410 |
| Transfer agent fees — R6 | 227 |
| Trustees’ and officers’ fees and benefits | 11,655 |
| Registration and filing fees | 40,912 |
| Reports to shareholders | 7,970 |
| Professional services fees | 27,580 |
| Other | 10,577 |
| Total expenses | 553,685 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (9,560) |
| Net expenses | 544,125 |
| Net investment income | 62,397 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (1,968,555) |
| Foreign currencies | (167) |
| Swap agreements | (6,517,898) |
| | (8,486,620) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | 99,495 |
| Foreign currencies | 15 |
| Swap agreements | (2,664,308) |
| | (2,564,798) |
| Net realized and unrealized gain (loss) | (11,051,418) |
| Net increase (decrease) in net assets resulting from operations | $(10,989,021) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 16 | Invesco All Cap Market Neutral Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income (loss) | $62,397 | $(450,459) |
| Net realized gain (loss) | (8,486,620) | 1,940,048 |
| Change in net unrealized appreciation (depreciation) | (2,564,798) | (4,298,348) |
| Net increase (decrease) in net assets resulting from operations | (10,989,021) | (2,808,759) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (912,531) | (1,336,998) |
| Class C | (285,692) | (538,114) |
| Class R | (9,315) | (12,967) |
| Class Y | (2,160,772) | (4,735,077) |
| Class R5 | (845) | (1,189) |
| Class R6 | (5,706,725) | (8,552,565) |
| Total distributions to shareholders from distributable earnings | (9,075,880) | (15,176,910) |
| Share transactions–net: | | |
| Class A | 721,775 | (82,857) |
| Class C | 141,540 | (1,463,076) |
| Class R | 20,236 | (6,467) |
| Class Y | (403,173) | (10,331,816) |
| Class R6 | 3,801,095 | (988,459) |
| Net increase (decrease) in net assets resulting from share transactions | 4,281,473 | (12,872,675) |
| Net increase (decrease) in net assets | (15,783,428) | (30,858,344) |
| Net assets: | | |
| Beginning of period | 97,851,454 | 128,709,798 |
| End of period | $82,068,026 | $97,851,454 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 17 | Invesco All Cap Market Neutral Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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
(including
interest
expense and
dividends on
short sales
expense)
with fee
waivers
and/or expenses
absorbed | Ratio of
expenses
to average
net assets
(including
interest
expense and
dividends on
short sales
expense)
without fee
waivers
and/or expenses
absorbed | Ratio of
expenses
to average
net assets
(excluding
interest
expense and
dividends on
short sales
expense)
with fee
waivers
and/or expenses
absorbed | Ratio of
expenses
to average
net assets
(excluding
interest
expense and
dividends on
short sales
expense)
without fee
waivers
and/or expenses
absorbed | Ratio of net
investment
(loss)
to average
net assets | Portfolio
turnover(c) |
| Class A |
| Six months ended 04/30/19 | $8.70 | $(0.01)(d) | $(0.92) | $(0.93) | $— | $(0.83) | $(0.83) | $6.94 | (11.64)% | $8,079 | 1.49%(e) | 1.53%(e) | 1.49%(e) | 1.53%(e) | (0.15)%(d)(e) | 35% |
| Year ended 10/31/18 | 10.07 | (0.06) | (0.14) | (0.20) | — | (1.17) | (1.17) | 8.70 | (1.65) | 9,364 | 1.49 | 1.50 | 1.49 | 1.50 | (0.68) | 125 |
| Year ended 10/31/17 | 9.80 | (0.05) | 0.33 | 0.28 | — | (0.01) | (0.01) | 10.07 | 2.81 | 11,085 | 1.43 | 1.48 | 1.43 | 1.48 | (0.50) | 162 |
| Year ended 10/31/16 | 11.92 | (0.03) | (0.76) | (0.79) | (1.33) | — | (1.33) | 9.80 | (7.42) | 42,539 | 1.61 | 1.85 | 1.61 | 1.85 | (0.26) | 168 |
| Year ended 10/31/15 | 10.70 | (0.20) | 1.42 | 1.22 | — | — | — | 11.92 | 11.40 | 12,812 | 3.69(f) | 4.62(f) | 1.60 | 2.53 | (1.85) | 175 |
| Year ended 10/31/14(g) | 10.00 | (0.27) | 0.97 | 0.70 | — | — | — | 10.70 | 7.00 | 9,742 | 4.53(f)(h) | 7.28(f)(h) | 1.60(h) | 4.35(h) | (3.03)(h) | 105 |
| Class C |
| Six months ended 04/30/19 | 8.37 | (0.03)(d) | (0.89) | (0.92) | — | (0.83) | (0.83) | 6.62 | (12.01) | 2,206 | 2.24(e) | 2.28(e) | 2.24(e) | 2.28(e) | (0.90)(d)(e) | 35 |
| Year ended 10/31/18 | 9.80 | (0.12) | (0.14) | (0.26) | — | (1.17) | (1.17) | 8.37 | (2.37) | 2,683 | 2.24 | 2.25 | 2.24 | 2.25 | (1.43) | 125 |
| Year ended 10/31/17 | 9.60 | (0.12) | 0.33 | 0.21 | — | (0.01) | (0.01) | 9.80 | 2.14 | 4,856 | 2.18 | 2.23 | 2.18 | 2.23 | (1.25) | 162 |
| Year ended 10/31/16 | 11.76 | (0.10) | (0.76) | (0.86) | (1.30) | — | (1.30) | 9.60 | (8.19) | 10,136 | 2.36 | 2.60 | 2.36 | 2.60 | (1.01) | 168 |
| Year ended 10/31/15 | 10.63 | (0.28) | 1.41 | 1.13 | — | — | — | 11.76 | 10.63 | 1,772 | 4.44(f) | 5.37(f) | 2.35 | 3.28 | (2.60) | 175 |
| Year ended 10/31/14(g) | 10.00 | (0.34) | 0.97 | 0.63 | — | — | — | 10.63 | 6.30 | 857 | 5.28(f)(h) | 8.03(f)(h) | 2.35(h) | 5.10(h) | (3.78)(h) | 105 |
| Class R |
| Six months ended 04/30/19 | 8.59 | (0.02)(d) | (0.90) | (0.92) | — | (0.83) | (0.83) | 6.84 | (11.68) | 86 | 1.74(e) | 1.78(e) | 1.74(e) | 1.78(e) | (0.40)(d)(e) | 35 |
| Year ended 10/31/18 | 9.98 | (0.08) | (0.14) | (0.22) | — | (1.17) | (1.17) | 8.59 | (1.87) | 87 | 1.74 | 1.75 | 1.74 | 1.75 | (0.93) | 125 |
| Year ended 10/31/17 | 9.73 | (0.07) | 0.33 | 0.26 | — | (0.01) | (0.01) | 9.98 | 2.63 | 109 | 1.68 | 1.73 | 1.68 | 1.73 | (0.75) | 162 |
| Year ended 10/31/16 | 11.86 | (0.05) | (0.76) | (0.81) | (1.32) | — | (1.32) | 9.73 | (7.66) | 104 | 1.86 | 2.10 | 1.86 | 2.10 | (0.51) | 168 |
| Year ended 10/31/15 | 10.68 | (0.22) | 1.40 | 1.18 | — | — | — | 11.86 | 11.05 | 23 | 3.94(f) | 4.87(f) | 1.85 | 2.78 | (2.10) | 175 |
| Year ended 10/31/14(g) | 10.00 | (0.29) | 0.97 | 0.68 | — | — | — | 10.68 | 6.80 | 40 | 4.78(f)(h) | 7.53(f)(h) | 1.85(h) | 4.60(h) | (3.28)(h) | 105 |
| Class Y |
| Six months ended 04/30/19 | 8.81 | 0.00(d) | (0.94) | (0.94) | — | (0.83) | (0.83) | 7.04 | (11.61) | 19,547 | 1.24(e) | 1.28(e) | 1.24(e) | 1.28(e) | 0.10(d)(e) | 35 |
| Year ended 10/31/18 | 10.15 | (0.04) | (0.13) | (0.17) | — | (1.17) | (1.17) | 8.81 | (1.30) | 24,669 | 1.24 | 1.25 | 1.24 | 1.25 | (0.43) | 125 |
| Year ended 10/31/17 | 9.85 | (0.03) | 0.34 | 0.31 | — | (0.01) | (0.01) | 10.15 | 3.10 | 40,875 | 1.18 | 1.23 | 1.18 | 1.23 | (0.25) | 162 |
| Year ended 10/31/16 | 11.97 | (0.00) | (0.77) | (0.77) | (1.35) | — | (1.35) | 9.85 | (7.24) | 41,369 | 1.36 | 1.60 | 1.36 | 1.60 | (0.01) | 168 |
| Year ended 10/31/15 | 10.72 | (0.17) | 1.42 | 1.25 | — | — | — | 11.97 | 11.66 | 16,907 | 3.44(f) | 4.37(f) | 1.35 | 2.28 | (1.60) | 175 |
| Year ended 10/31/14(g) | 10.00 | (0.25) | 0.97 | 0.72 | — | — | — | 10.72 | 7.20 | 14,651 | 4.28(f)(h) | 7.03(f)(h) | 1.35(h) | 4.10(h) | (2.78)(h) | 105 |
| Class R5 |
| Six months ended 04/30/19 | 8.83 | 0.01(d) | (0.94) | (0.93) | — | (0.83) | (0.83) | 7.07 | (11.45) | 7 | 1.09(e) | 1.10(e) | 1.09(e) | 1.10(e) | 0.25(d)(e) | 35 |
| Year ended 10/31/18 | 10.18 | (0.02) | (0.16) | (0.18) | — | (1.17) | (1.17) | 8.83 | (1.38) | 9 | 1.11 | 1.12 | 1.11 | 1.12 | (0.30) | 125 |
| Year ended 10/31/17 | 9.86 | (0.02) | 0.35 | 0.33 | — | (0.01) | (0.01) | 10.18 | 3.30 | 10 | 1.10 | 1.12 | 1.10 | 1.12 | (0.17) | 162 |
| Year ended 10/31/16 | 11.97 | (0.00) | (0.76) | (0.76) | (1.35) | — | (1.35) | 9.86 | (7.15) | 493 | 1.36 | 1.45 | 1.36 | 1.45 | (0.01) | 168 |
| Year ended 10/31/15 | 10.72 | (0.17) | 1.42 | 1.25 | — | — | — | 11.97 | 11.66 | 599 | 3.44(f) | 4.28(f) | 1.35 | 2.19 | (1.60) | 175 |
| Year ended 10/31/14(g) | 10.00 | (0.25) | 0.97 | 0.72 | — | — | — | 10.72 | 7.20 | 648 | 4.28(f)(h) | 7.00(f)(h) | 1.35(h) | 4.07(h) | (2.78)(h) | 105 |
| Class R6 |
| Six months ended 04/30/19 | 8.82 | 0.01(d) | (0.94) | (0.93) | — | (0.83) | (0.83) | 7.06 | (11.47) | 52,142 | 1.09(e) | 1.10(e) | 1.09(e) | 1.10(e) | 0.25(d)(e) | 35 |
| Year ended 10/31/18 | 10.16 | (0.03) | (0.14) | (0.17) | — | (1.17) | (1.17) | 8.82 | (1.29) | 61,040 | 1.11 | 1.12 | 1.11 | 1.12 | (0.30) | 125 |
| Year ended 10/31/17 | 9.85 | (0.02) | 0.34 | 0.32 | — | (0.01) | (0.01) | 10.16 | 3.20 | 71,774 | 1.10 | 1.12 | 1.10 | 1.12 | (0.17) | 162 |
| Year ended 10/31/16 | 11.97 | (0.00) | (0.77) | (0.77) | (1.35) | — | (1.35) | 9.85 | (7.24) | 73,442 | 1.36 | 1.44 | 1.36 | 1.44 | (0.01) | 168 |
| Year ended 10/31/15 | 10.72 | (0.17) | 1.42 | 1.25 | — | — | — | 11.97 | 11.66 | 745 | 3.44(f) | 4.28(f) | 1.35 | 2.19 | (1.60) | 175 |
| Year ended 10/31/14(g) | 10.00 | (0.25) | 0.97 | 0.72 | — | — | — | 10.72 | 7.20 | 584 | 4.28(f)(h) | 6.99(f)(h) | 1.35(h) | 4.06(h) | (2.78)(h) | 105 |
| (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) | 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 April 30, 2019. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $(0.02) and (0.32)%, $(0.04) and (1.07)%, $(0.03) and (0.57)%, $(0.01) and (0.07)%, $(0.00) and 0.08% and $(0.00) and 0.08% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $8,850, $2,623, $91, $21,548, $8 and $58,422 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (f) | Ratio of interest expense and dividends on short sales to average net assets for the years ended October 31, 2015 and October 31, 2014 were 2.09% and 2.93%, respectively. |
| (g) | Commencement date of December 17, 2013. |
| (h) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 18 | Invesco All Cap Market Neutral Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco All Cap Market Neutral 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 a positive return over a full market cycle from a broadly diversified portfolio of stocks while seeking to limit exposure to the general risks associated with stock market investing.
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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
| 19 | Invesco All Cap Market Neutral Fund |
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. 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 and dividend expense on short sales are 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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major |
| 20 | Invesco All Cap Market Neutral Fund |
| | 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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. | 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 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 NAV 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.
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 equity 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 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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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.
| 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. |
| 21 | Invesco All Cap Market Neutral Fund |
| M. | 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.85% |
| Next $250 million | 0.82% |
| Next $500 million | 0.80% |
| Next $1.5 billion | 0.77% |
| Next $2.5 billion | 0.75% |
| Next $2.5 billion | 0.72% |
| Next $2.5 billion | 0.70% |
| Over $10 billion | 0.67% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.85%.
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 29, 2020, 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 1.50%, 2.25%, 1.75%, 1.25%, 1.25% and 1.25%, 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 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $5,661 and reimbursed class level expenses of $998, $296, $10, $2,431, $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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $666 in front-end
| 22 | Invesco All Cap Market Neutral Fund |
sales commissions from the sale of Class A shares and $0 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 market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $72,445,976 | $— | $— | $72,445,976 |
| Money Market Funds | 7,310,596 | — | — | 7,310,596 |
| Total Investments in Securities | 79,756,572 | — | — | 79,756,572 |
| Other Investments - Liabilities* | | | | |
| Swap Agreements | — | (160,204) | — | (160,204) |
| Total Investments | $79,756,572 | $(160,204) | $— | $79,596,368 |
| * | 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 April 30, 2019:
| | Value |
| Derivative Liabilities | Equity
Risk |
| Unrealized depreciation on swap agreements — OTC | $(160,204) |
| Derivatives not subject to master netting agreements | - |
| Total Derivative Liabilities subject to master netting agreements | $(160,204) |
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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 April 30, 2019.
| | Financial
Derivative
Liabilities | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | Non-Cash | Cash | Net
Amount |
| Morgan Stanley & Co. LLC | $(160,204) | $– | $123,059 | $(37,145) |
Effect of Derivative Investments for the six months ended April 30, 2019
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 |
| | Equity
Risk |
| Realized Gain (Loss): | |
| Swap agreements | $(6,517,898) |
| Change in Net Unrealized Appreciation (Depreciation): | |
| Swap agreements | (2,664,308) |
| Total | $(9,182,206) |
The table below summarizes the average notional value of derivatives held during the period.
| | Swap
Agreements |
| Average notional value | $81,590,579 |
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. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
NOTE 6—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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $164.
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
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NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $30,015,536 and $41,145,325, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $8,804,587 |
| Aggregate unrealized (depreciation) of investments | (4,908,013) |
| Net unrealized appreciation of investments | $3,896,574 |
Cost of investments for tax purposes is $75,699,794.
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NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 92,080 | $729,133 | | 524,639 | $4,575,171 |
| Class C | 82,839 | 635,615 | | 21,237 | 175,852 |
| Class R | 2,602 | 20,443 | | 2,743 | 22,967 |
| Class Y | 797,170 | 6,184,873 | | 971,026 | 8,552,867 |
| Class R6 | 1,353,508 | 10,063,292 | | 1,177,387 | 10,296,649 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 112,270 | 865,605 | | 158,231 | 1,335,466 |
| Class C | 35,418 | 261,383 | | 65,856 | 537,385 |
| Class R | 1,116 | 8,484 | | 1,414 | 11,798 |
| Class Y | 212,696 | 1,663,279 | | 555,587 | 4,733,602 |
| Class R6 | 728,720 | 5,705,879 | | 1,003,683 | 8,551,375 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 8,358 | 62,715 | | - | - |
| Class C | (8,754) | (62,715) | | - | - |
| Reacquired: | | | | | |
| Class A | (125,109) | (935,678) | | (707,531) | (5,993,494) |
| Class C | (97,027) | (692,743) | | (262,116) | (2,176,313) |
| Class R | (1,211) | (8,691) | | (5,029) | (41,232) |
| Class Y | (1,036,462) | (8,251,325) | | (2,750,700) | (23,618,285) |
| Class R6 | (1,619,479) | (11,968,076) | | (2,326,599) | (19,836,483) |
| Net increase (decrease) in share activity | 538,735 | $4,281,473 | | (1,570,172) | $(12,872,675) |
| (a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 16% 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. |
| | In addition, 63% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| 26 | Invesco All Cap Market Neutral Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $883.60 | $6.96 | $1,017.41 | $7.45 | 1.49% |
| Class C | 1,000.00 | 879.90 | 10.44 | 1,013.69 | 11.18 | 2.24 |
| Class R | 1,000.00 | 883.20 | 8.12 | 1,016.17 | 8.70 | 1.74 |
| Class Y | 1,000.00 | 883.90 | 5.79 | 1,018.65 | 6.21 | 1.24 |
| Class R5 | 1,000.00 | 885.50 | 5.10 | 1,019.39 | 5.46 | 1.09 |
| Class R6 | 1,000.00 | 885.30 | 5.10 | 1,019.39 | 5.46 | 1.09 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 27 | Invesco All Cap Market Neutral Fund |
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | ACMN-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Balanced-Risk Allocation Fund
Nasdaq:
A: ABRZX ■ C: ABRCX ■ R: ABRRX ■ Y: ABRYX ■ R5: ABRIX ■ R6: ALLFX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 7.93% |
| Class C Shares | 7.53 |
| Class R Shares | 7.78 |
| Class Y Shares | 8.10 |
| Class R5 Shares | 8.19 |
| Class R6 Shares | 8.17 |
| S&P 500 Index▼ (Broad Market Index) | 9.76 |
Custom Invesco Balanced-Risk Allocation Style Index■
(Style-Specific Index) | 7.62 |
Lipper Alternative Global Macro Funds Index♦
(Peer Group Index) | 5.12 |
| Source(s):▼FactSet Research Systems Inc.;■ Invesco, FactSet Research Systems Inc., RIMES Technologies Corp.;♦ Lipper Inc. |
The S&P 500® Indexis an unmanaged index considered representative of the US stock market.
The Custom Invesco Balanced-Risk Allocation Style Index is composed of 60% MSCI World Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index. Effective December 1, 2009, the fixed income component of the Custom Balanced-Risk Allocation Style Index changed from the JP Morgan GBI Global (Traded) Index to the Bloomberg Barclays U.S. Aggregate Bond Index.
TheLipper Alternative Global Macro Funds Indexis an unmanaged index considered representative of alternative global macro funds tracked by Lipper.
TheBloomberg Barclays U.S. Aggregate Bond Indexis considered representative of the US investment-grade, fixed-rate bond market.
The MSCI WorldSMIndexis considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Balanced-Risk Allocation Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (6/2/09) | 6.27% |
| 5 Years | 2.83 |
| 1 Year | -3.67 |
| Class C Shares | |
| Inception (6/2/09) | 6.07% |
| 5 Years | 3.21 |
| 1 Year | 0.16 |
| Class R Shares | |
| Inception (6/2/09) | 6.59% |
| 5 Years | 3.72 |
| 1 Year | 1.69 |
| Class Y Shares | |
| Inception (6/2/09) | 7.13 |
| 5 Years | 4.24 |
| 1 Year | 2.19 |
| Class R5 Shares | |
| Inception (6/2/09) | 7.17% |
| 5 Years | 4.30 |
| 1 Year | 2.28 |
| Class R6 Shares | |
| Inception | 7.13% |
| 5 Years | 4.39 |
| 1 Year | 2.37 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.31%, 2.06%, 1.56%, 1.06%, 1.02% and 0.96%, respectively.1,2 The total annual Fund operating expense ratio set forth in the
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (6/2/09) | 6.21% |
| 5 Years | 2.83 |
| 1 Year | –3.37 |
| Class C Shares | |
| Inception (6/2/09) | 6.01% |
| 5 Years | 3.21 |
| 1 Year | 0.47 |
| Class R Shares | |
| Inception (6/2/09) | 6.55% |
| 5 Years | 3.74 |
| 1 Year | 2.00 |
| Class Y Shares | |
| Inception (6/2/09) | 7.09% |
| 5 Years | 4.24 |
| 1 Year | 2.49 |
| Class R5 Shares | |
| Inception (6/2/09) | 7.11% |
| 5 Years | 4.29 |
| 1 Year | 2.59 |
| Class R6 Shares | |
| Inception | 7.08% |
| 5 Years | 4.37 |
| 1 Year | 2.58 |
most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.37%, 2.12%, 1.62%, 1.12%, 1.08% and 1.02%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns
would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 2 | The expense ratio includes acquired fund fees and expenses of the underlying funds in which the Fund invests of 0.10%. |
| 3 | Invesco Balanced-Risk Allocation Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Balanced-Risk Allocation Fund |
Consolidated Schedule of Investments
April 30, 2019
(Unaudited)
| | Interest
Rate | Maturity
Date | Principal
Amount
(000) | Value |
| U.S. Treasury Securities–39.25% | | |
| U.S. Treasury Bills–12.63%(a) |
| U.S. Treasury Bills | 2.39% | 05/07/2019 | | $ 122,000 | $ 121,951,404 |
| U.S. Treasury Bills | 2.48% | 06/13/2019 | | 150,000 | 149,556,294 |
| U.S. Treasury Bills | 2.38% | 07/25/2019 | | 165,000 | 164,081,557 |
| | | | | | 435,589,255 |
| U.S. Treasury Notes–26.62% |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate)(b) | 2.41% | 01/31/2020 | | 334,000 | 333,917,873 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.03%)(b) | 2.45% | 04/30/2020 | | 346,240 | 346,206,899 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.04%)(b) | 2.46% | 07/31/2020 | | 237,520 | 237,425,106 |
| | | | | | 917,549,878 |
| Total U.S. Treasury Securities (Cost $1,353,339,710) | 1,353,139,133 |
| | | Expiration
Date | | |
| Commodity - Linked Notes–3.86% |
| Canadian Imperial Bank of Commerce EMTN, U.S. Federal Funds Effective Rate minus 0.03% (linked to the Canadian Imperial Bank of Commerce Custom 7 Agriculture Commodity Index, multiplied by 2)(c)(d) (Canada) | | 08/23/2019 | | 68,200 | 57,243,513 |
| RBC Capital Markets, LLC, Commodity-Linked Notes, U.S. Federal Funds Effective Rate minus 0.04% (linked to the RBC Enhanced Agricultural Basket 07 Excess Return Index)(c)(d) (Canada) | | 08/30/2019 | | 88,700 | 75,680,225 |
| Total Commodity - Linked Notes (Cost $156,900,000) | 132,923,738 |
| | | | Shares | |
| Money Market Funds–51.04% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(e) | | | | 559,294,325 | 559,294,325 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(e) | | | | 122,684,464 | 122,721,269 |
| Invesco STIC (Global Series) PLC, U.S. Dollar Liquidity Portfolio (Ireland), Institutional Class, 2.51%(e) | | | | 176,125,209 | 176,125,209 |
| Invesco Treasury Obligations Portfolio, Institutional Class, 2.29%(e) | | | | 705,000,000 | 705,000,000 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(e) | | | | 196,249,514 | 196,249,514 |
| Total Money Market Funds (Cost $1,759,377,981) | 1,759,390,317 |
| TOTAL INVESTMENTS IN SECURITIES–94.15% (Cost $3,269,617,691) | 3,245,453,188 |
| OTHER ASSETS LESS LIABILITIES–5.85% | 201,726,671 |
| NET ASSETS–100.00% | $3,447,179,859 |
Investment Abbreviations:
| EMTN | – European Medium-Term Notes |
Notes to Consolidated Schedule of Investments:
| (a) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| (b) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2019. |
| (c) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2019 was $132,923,738, which represented 3.86% of the Fund’s Net Assets. |
| (d) | The table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
| (e) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Balanced-Risk Allocation Fund |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk |
| Brent Crude | 907 | June-2019 | $64,805,150 | $3,231,653 | $3,231,653 |
| Gasoline Reformulated Blendstock Oxygenate Blending | 1,077 | May-2019 | 93,489,631 | 2,335,170 | 2,335,170 |
| New York Harbor Ultra-Low Sulfur Diesel | 130 | May-2019 | 11,345,334 | 507,042 | 507,042 |
| Silver | 477 | July-2019 | 35,736,840 | (139,007) | (139,007) |
| WTI Crude | 575 | October-2019 | 36,443,500 | 1,382,617 | 1,382,617 |
| Subtotal | 7,317,475 | 7,317,475 |
| Equity Risk |
| E-Mini Russell 2000 Index | 2,500 | June-2019 | 199,275,000 | 8,206,187 | 8,206,187 |
| E-Mini S&P 500 Index | 1,590 | June-2019 | 234,405,750 | 15,392,563 | 15,392,563 |
| EURO STOXX 50 Index | 7,620 | June-2019 | 295,028,505 | 19,164,759 | 19,164,759 |
| FTSE 100 Index | 3,385 | June-2019 | 325,381,029 | 14,119,673 | 14,119,673 |
| Hang Seng Index | 1,010 | May-2019 | 189,696,869 | 432,836 | 432,836 |
| Tokyo Stock Price Index | 2,145 | June-2019 | 310,981,193 | 2,858,372 | 2,858,372 |
| Subtotal | 60,174,390 | 60,174,390 |
| Interest Rate Risk |
| Australia 10 Year Bonds | 9,420 | June-2019 | 918,266,055 | 15,162,673 | 15,162,673 |
| Canada 10 Year Bonds | 7,730 | June-2019 | 797,291,483 | 11,564,758 | 11,564,758 |
| Long Gilt | 2,355 | June-2019 | 390,989,619 | (434,100) | (434,100) |
| U.S. Treasury Long Bonds | 2,470 | June-2019 | 364,247,813 | 4,333,644 | 4,333,644 |
| Subtotal | 30,626,975 | 30,626,975 |
| Total Futures Contracts | $98,118,840 | $98,118,840 |
| (a) | Futures contracts collateralized by $189,320,000 cash held with Bank of America Merrill Lynch, 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 | | | | | | | | | | | |
| Cargill, Inc. | Receive | Monthly Rebalance Commodity Excess Return Index | 0.47% | Monthly | 11,500 | February—2020 | $ | 7,941,113 | $— | $0 | $0 |
| JPMorgan Chase Bank, N.A. | Receive | S&P GSCI Gold Index Excess Return | 0.09 | Monthly | 484,000 | October—2019 | | 48,370,767 | — | 306,662 | 306,662 |
| Merrill Lynch International | Receive | Merrill Lynch Gold Excess Return Index | 0.14 | Monthly | 340,000 | June—2019 | | 53,590,460 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCX Dynamic Enhanced Copper Excess Return Index | 0.25 | Monthly | 47,700 | September—2019 | | 29,003,341 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCX Natural Gas Annual Excess Return Index | 0.25 | Monthly | 67,000 | November—2019 | | 3,083,400 | — | 0 | 0 |
| Subtotal — Appreciation | | | | | — | 306,662 | 306,662 |
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) |
| Commodity Risk | | | | | | | | | | | |
| Barclays Bank PLC | Receive | Barclays Commodity Strategy 1452 Excess Return Index | 0.33% | Monthly | 78,300 | October—2019 | $ | 40,616,175 | $— | $(345,021) | $(345,021) |
| Canadian Imperial Bank of Commerce | Receive | CIBC Dynamic Roll LME Copper Excess Return Index 2 | 0.30 | Monthly | 655,000 | April—2020 | | 52,736,015 | — | (395,620) | (395,620) |
| JPMorgan Chase Bank, N.A. | Receive | J.P. Morgan Contag Beta Gas Oil Excess Return Index | 0.25 | Monthly | 100,000 | April—2020 | | 27,728,880 | — | (485,730) | (485,730) |
| Morgan Stanley Capital Services LLC | Receive | S&P GSCI Aluminum Dynamic Roll Index Excess Return | 0.38 | Monthly | 108,000 | October—2019 | | 9,923,956 | — | (323,635) | (323,635) |
| Subtotal — Depreciation | | | | | — | (1,550,006) | (1,550,006) |
| Total — Total Return Swap Agreements | | | | | $— | $(1,243,344) | $(1,243,344) |
| (a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $19,500,000. |
| (b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| (c) | The table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
| Reference Entity Components |
| Reference Entity | Underlying Components | Percentage |
| Canadian Imperial Bank of Commerce Custom 7 Agriculture Commodity Index | | |
| | Long Futures Contracts | |
| | Coffee ‘C’ | 4.39% |
| | Corn | 5.04 |
| | Cotton No. 2 | 20.55 |
| | Lean Hogs | 0.51 |
| | Live Cattle | 1.75 |
| | Soybean Meal | 19.44 |
| | Soybean Oil | 4.39 |
| | Soybeans | 19.15 |
| | Sugar No. 11 | 19.96 |
| | Wheat | 4.82 |
| | Total | 100.00% |
| RBC Enhanced Agricultural Basket 07 Excess Return Index | | |
| | Long Futures Contracts | |
| | Coffee ‘C’ | 4.39% |
| | Corn | 5.04 |
| | Cotton No. 2 | 20.55 |
| | Lean Hogs | 0.51 |
| | Live Cattle | 1.75 |
| | Soybean Meal | 19.44 |
| | Soybean Oil | 4.39 |
| | Soybeans | 19.15 |
| | Sugar No. 11 | 19.96 |
| | Wheat | 4.82 |
| | Total | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Balanced-Risk Allocation Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| Monthly Rebalance Commodity Excess Return Index | | |
| | Long Futures Contracts | |
| | Coffee ’C’ | 4.39% |
| | Corn | 5.04 |
| | Cotton No. 2 | 20.55 |
| | Lean Hogs | 0.51 |
| | Live Cattle | 1.75 |
| | Soybean Meal | 19.44 |
| | Soybean Oil | 4.39 |
| | Soybeans | 19.15 |
| | Sugar No. 11 | 19.96 |
| | Wheat | 4.82 |
| | Total | 100.00% |
| S&P GSCI Gold Index Excess Return | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Merrill Lynch Gold Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| MLCX Dynamic Enhanced Copper Excess Return Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| MLCX Natural Gas Annual Excess Return Index | | |
| | Long Futures Contracts | |
| | Natural Gas | 100.00% |
| Barclays Commodity Strategy 1452 Excess Return Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2 | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| J.P. Morgan Contag Beta Gas Oil Excess Return Index | | |
| | Long Futures Contracts | |
| | Gas Oil | 100.00% |
| S&P GSCI Aluminum Dynamic Roll Index Excess Return | | |
| | Long Futures Contracts | |
| | Aluminum | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Balanced-Risk Allocation Fund |
Target Risk Allocation and Notional Asset Weights as of April 30, 2019
By asset class
| Asset Class | Target Risk
Allocation* | Notional Asset
Weights** |
| Equities | 45.67% | 43.49% |
| Fixed Income | 37.52 | 71.74 |
| Commodities | 16.81 | 22.91 |
| Total | 100.00 | 138.14 |
| * | 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 Allocations. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $1,510,239,710) | $1,486,062,871 |
| Investments in affiliated money market funds, at value (Cost $1,759,377,981) | 1,759,390,317 |
| Other investments: | |
| Variation margin receivable — futures contracts | 1,276,702 |
| Unrealized appreciation on swap agreements — OTC | 306,662 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 189,320,000 |
| Cash collateral — OTC Derivatives | 19,500,000 |
| Receivable for: | |
| Investments sold | 14,299,998 |
| Fund shares sold | 1,485,881 |
| Dividends | 3,394,760 |
| Interest | 62,159 |
| Investment for trustee deferred compensation and retirement plans | 629,407 |
| Other assets | 91,727 |
| Total assets | 3,475,820,484 |
| Liabilities: | |
| Other investments: | |
| Swaps payable — OTC | 1,247,397 |
| Unrealized depreciation on swap agreements—OTC | 1,550,006 |
| Payable for: | |
| Fund shares reacquired | 20,388,161 |
| Amount due custodian | 2,981,808 |
| Accrued fees to affiliates | 1,557,010 |
| Accrued trustees’ and officers’ fees and benefits | 5,186 |
| Accrued other operating expenses | 206,267 |
| Trustee deferred compensation and retirement plans | 704,790 |
| Total liabilities | 28,640,625 |
| Net assets applicable to shares outstanding | $3,447,179,859 |
| Net assets consist of: | |
| Shares of beneficial interest | $3,237,145,732 |
| Distributable earnings | 210,034,127 |
| | $3,447,179,859 |
| Net Assets: |
| Class A | $967,227,762 |
| Class C | $641,650,060 |
| Class R | $19,243,195 |
| Class Y | $1,508,784,301 |
| Class R5 | $44,432,039 |
| Class R6 | $265,842,502 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 87,774,168 |
| Class C | 61,511,214 |
| Class R | 1,780,988 |
| Class Y | 134,542,679 |
| Class R5 | 3,958,278 |
| Class R6 | 23,635,572 |
| Class A: | |
| Net asset value per share | $11.02 |
Maximum offering price per share
(Net asset value of $11.02 ÷ 94.50%) | $11.66 |
| Class C: | |
| Net asset value and offering price per share | $10.43 |
| Class R: | |
| Net asset value and offering price per share | $10.80 |
| Class Y: | |
| Net asset value and offering price per share | $11.21 |
| Class R5: | |
| Net asset value and offering price per share | $11.23 |
| Class R6: | |
| Net asset value and offering price per share | $11.25 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends from affiliated money market funds | $20,543,067 |
| Interest | 17,570,593 |
| Total investment income | 38,113,660 |
| Expenses: | |
| Advisory fees | 15,708,273 |
| Administrative services fees | 262,112 |
| Custodian fees | 27,823 |
| Distribution fees: | |
| Class A | 1,207,380 |
| Class C | 3,345,070 |
| Class R | 48,318 |
| Transfer agent fees — A, C, R and Y | 2,034,390 |
| Transfer agent fees — R5 | 7,978 |
| Transfer agent fees — R6 | 6,524 |
| Trustees’ and officers’ fees and benefits | 38,549 |
| Registration and filing fees | 80,437 |
| Reports to shareholders | 94,539 |
| Professional services fees | 35,402 |
| Other | 16,441 |
| Total expenses | 22,913,236 |
| Less: Fees waived and expense offset arrangement(s) | (950,403) |
| Net expenses | 21,962,833 |
| Net investment income | 16,150,827 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (2,460) |
| Foreign currencies | (517) |
| Futures contracts | 49,092,801 |
| Swap agreements | (3,528,213) |
| | 45,561,611 |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | (19,041,782) |
| Foreign currencies | 824,613 |
| Futures contracts | 217,933,952 |
| Swap agreements | 7,126,099 |
| | 206,842,882 |
| Net realized and unrealized gain | 252,404,493 |
| Net increase in net assets resulting from operations | $268,555,320 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $16,150,827 | $14,051,496 |
| Net realized gain | 45,561,611 | 73,929,524 |
| Change in net unrealized appreciation (depreciation) | 206,842,882 | (231,169,368) |
| Net increase (decrease) in net assets resulting from operations | 268,555,320 | (143,188,348) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | — | (80,624,333) |
| Class B | — | (290,393) |
| Class C | — | (65,247,506) |
| Class R | — | (1,429,504) |
| Class Y | — | (128,170,205) |
| Class R5 | — | (7,249,597) |
| Class R6 | — | (19,300,763) |
| Total distributions to shareholders from distributable earnings | — | (302,312,301) |
| Share transactions–net: | | |
| Class A | (122,939,216) | (205,218,146) |
| Class B | — | (4,780,164) |
| Class C | (141,451,640) | (218,982,102) |
| Class R | (2,203,297) | (1,326,655) |
| Class Y | (327,446,905) | (241,935,544) |
| Class R5 | (9,653,013) | (60,343,625) |
| Class R6 | (156,678,810) | 113,427,949 |
| Net increase (decrease) in net assets resulting from share transactions | (760,372,881) | (619,158,287) |
| Net increase (decrease) in net assets | (491,817,561) | (1,064,658,936) |
| Net assets: | | |
| Beginning of period | 3,938,997,420 | 5,003,656,356 |
| End of period | $3,447,179,859 | $3,938,997,420 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Balanced-Risk Allocation Fund |
Consolidated Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $10.21 | $0.05 | $0.76 | $0.81 | $— | $— | $— | $11.02 | 7.93% | $967,228 | 1.24%(d) | 1.29%(d) | 0.89%(d) | 0% |
| Year ended 10/31/18 | 11.28 | 0.03 | (0.40) | (0.37) | — | (0.70) | (0.70) | 10.21 | (3.57) | 1,016,131 | 1.21 | 1.27 | 0.32 | 116 |
| Year ended 10/31/17 | 11.34 | (0.05) | 0.87 | 0.82 | (0.41) | (0.47) | (0.88) | 11.28 | 7.76 | 1,337,537 | 1.22 | 1.28 | (0.49) | 12 |
| Year ended 10/31/16 | 11.27 | (0.10) | 0.88 | 0.78 | (0.29) | (0.42) | (0.71) | 11.34 | 7.59 | 1,864,271 | 1.20 | 1.27 | (0.89) | 96 |
| Year ended 10/31/15 | 12.36 | (0.14) | (0.05) | (0.19) | (0.24) | (0.66) | (0.90) | 11.27 | (1.64) | 2,371,657 | 1.21 | 1.26 | (1.16) | 10 |
| Year ended 10/31/14 | 12.88 | (0.14) | 0.53 | 0.39 | — | (0.91) | (0.91) | 12.36 | 3.52 | 2,938,957 | 1.20 | 1.24 | (1.16) | 72 |
| Class C |
| Six months ended 04/30/19 | 9.70 | 0.01 | 0.72 | 0.73 | — | — | — | 10.43 | 7.53 | 641,650 | 1.99(d) | 2.04(d) | 0.14(d) | 0 |
| Year ended 10/31/18 | 10.83 | (0.04) | (0.39) | (0.43) | — | (0.70) | (0.70) | 9.70 | (4.31) | 735,308 | 1.96 | 2.02 | (0.43) | 116 |
| Year ended 10/31/17 | 10.90 | (0.12) | 0.84 | 0.72 | (0.32) | (0.47) | (0.79) | 10.83 | 7.05 | 1,051,038 | 1.97 | 2.03 | (1.24) | 12 |
| Year ended 10/31/16 | 10.85 | (0.17) | 0.83 | 0.66 | (0.19) | (0.42) | (0.61) | 10.90 | 6.67 | 1,278,218 | 1.95 | 2.02 | (1.64) | 96 |
| Year ended 10/31/15 | 11.91 | (0.22) | (0.04) | (0.26) | (0.14) | (0.66) | (0.80) | 10.85 | (2.32) | 1,584,982 | 1.96 | 2.01 | (1.91) | 10 |
| Year ended 10/31/14 | 12.53 | (0.23) | 0.52 | 0.29 | — | (0.91) | (0.91) | 11.91 | 2.77 | 1,930,318 | 1.95 | 1.99 | (1.91) | 72 |
| Class R |
| Six months ended 04/30/19 | 10.02 | 0.03 | 0.75 | 0.78 | — | — | — | 10.80 | 7.78 | 19,243 | 1.49(d) | 1.54(d) | 0.64(d) | 0 |
| Year ended 10/31/18 | 11.11 | 0.01 | (0.40) | (0.39) | — | (0.70) | (0.70) | 10.02 | (3.82) | 19,989 | 1.46 | 1.52 | 0.07 | 116 |
| Year ended 10/31/17 | 11.18 | (0.07) | 0.85 | 0.78 | (0.38) | (0.47) | (0.85) | 11.11 | 7.48 | 23,518 | 1.47 | 1.53 | (0.74) | 12 |
| Year ended 10/31/16 | 11.12 | (0.12) | 0.86 | 0.74 | (0.26) | (0.42) | (0.68) | 11.18 | 7.26 | 27,359 | 1.45 | 1.52 | (1.14) | 96 |
| Year ended 10/31/15 | 12.20 | (0.16) | (0.05) | (0.21) | (0.21) | (0.66) | (0.87) | 11.12 | (1.86) | 25,690 | 1.46 | 1.51 | (1.41) | 10 |
| Year ended 10/31/14 | 12.75 | (0.17) | 0.53 | 0.36 | — | (0.91) | (0.91) | 12.20 | 3.30 | 28,166 | 1.45 | 1.49 | (1.41) | 72 |
| Class Y |
| Six months ended 04/30/19 | 10.37 | 0.06 | 0.78 | 0.84 | — | — | — | 11.21 | 8.10 | 1,508,784 | 0.99(d) | 1.04(d) | 1.14(d) | 0 |
| Year ended 10/31/18 | 11.43 | 0.06 | (0.42) | (0.36) | — | (0.70) | (0.70) | 10.37 | (3.42) | 1,718,473 | 0.96 | 1.02 | 0.57 | 116 |
| Year ended 10/31/17 | 11.47 | (0.02) | 0.88 | 0.86 | (0.43) | (0.47) | (0.90) | 11.43 | 8.15 | 2,147,497 | 0.97 | 1.03 | (0.24) | 12 |
| Year ended 10/31/16 | 11.41 | (0.07) | 0.87 | 0.80 | (0.32) | (0.42) | (0.74) | 11.47 | 7.75 | 1,755,257 | 0.95 | 1.02 | (0.64) | 96 |
| Year ended 10/31/15 | 12.51 | (0.11) | (0.05) | (0.16) | (0.28) | (0.66) | (0.94) | 11.41 | (1.40) | 2,600,015 | 0.96 | 1.01 | (0.91) | 10 |
| Year ended 10/31/14 | 12.99 | (0.11) | 0.54 | 0.43 | — | (0.91) | (0.91) | 12.51 | 3.81 | 3,699,738 | 0.95 | 0.99 | (0.91) | 72 |
| Class R5 |
| Six months ended 04/30/19 | 10.38 | 0.07 | 0.78 | 0.85 | — | — | — | 11.23 | 8.19 | 44,432 | 0.90(d) | 0.95(d) | 1.23(d) | 0 |
| Year ended 10/31/18 | 11.43 | 0.07 | (0.42) | (0.35) | — | (0.70) | (0.70) | 10.38 | (3.34) | 50,691 | 0.92 | 0.98 | 0.61 | 116 |
| Year ended 10/31/17 | 11.48 | (0.01) | 0.87 | 0.86 | (0.44) | (0.47) | (0.91) | 11.43 | 8.12 | 119,103 | 0.92 | 0.98 | (0.19) | 12 |
| Year ended 10/31/16 | 11.41 | (0.06) | 0.88 | 0.82 | (0.33) | (0.42) | (0.75) | 11.48 | 7.88 | 144,960 | 0.89 | 0.96 | (0.58) | 96 |
| Year ended 10/31/15 | 12.51 | (0.10) | (0.06) | (0.16) | (0.28) | (0.66) | (0.94) | 11.41 | (1.39) | 158,826 | 0.93 | 0.98 | (0.88) | 10 |
| Year ended 10/31/14 | 12.99 | (0.11) | 0.54 | 0.43 | — | (0.91) | (0.91) | 12.51 | 3.81 | 186,943 | 0.93 | 0.97 | (0.89) | 72 |
| Class R6 |
| Six months ended 04/30/19 | 10.40 | 0.07 | 0.78 | 0.85 | — | — | — | 11.25 | 8.17 | 265,843 | 0.87(d) | 0.92(d) | 1.26(d) | 0 |
| Year ended 10/31/18 | 11.44 | 0.07 | (0.41) | (0.34) | — | (0.70) | (0.70) | 10.40 | (3.24) | 398,406 | 0.86 | 0.92 | 0.67 | 116 |
| Year ended 10/31/17 | 11.49 | (0.00) | 0.87 | 0.87 | (0.45) | (0.47) | (0.92) | 11.44 | 8.20 | 320,060 | 0.85 | 0.91 | (0.12) | 12 |
| Year ended 10/31/16 | 11.43 | (0.06) | 0.88 | 0.82 | (0.34) | (0.42) | (0.76) | 11.49 | 7.93 | 286,944 | 0.82 | 0.89 | (0.51) | 96 |
| Year ended 10/31/15 | 12.53 | (0.09) | (0.05) | (0.14) | (0.30) | (0.66) | (0.96) | 11.43 | (1.27) | 418,615 | 0.83 | 0.88 | (0.78) | 10 |
| Year ended 10/31/14 | 12.99 | (0.10) | 0.55 | 0.45 | — | (0.91) | (0.91) | 12.53 | 3.97 | 480,626 | 0.83 | 0.87 | (0.79) | 72 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $973,210, $674,108, $19,472, $1,560,226, $45,318 and $329,360 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Balanced-Risk Allocation Fund |
Notes to Consolidated Financial Statements
April 30, 2019
(Unaudited)
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. 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 Invesco Cayman Commodity Fund I Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. 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 ten 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 tenth 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 consolidated financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
| 14 | Invesco Balanced-Risk Allocation Fund |
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions 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.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. 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 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 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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the 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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The 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 |
| 15 | Invesco Balanced-Risk Allocation Fund |
| | 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. | Structured Securities — The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument. |
Structured securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference instruments. In addition to the credit risk of structured securities and the normal risks of price changes in response to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the value of the underlying reference instruments. Changes in the daily value of structured securities are recorded as unrealized gains (losses) in the Consolidated Statement of Operations. When the structured securities mature or are sold, the Fund recognizes a realized gain (loss) 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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, 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the 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 |
| 16 | Invesco Balanced-Risk Allocation Fund |
| | 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. | 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 NAV 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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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. | Other Risks – 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 commodities, 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. |
| 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 $250M | 0.95% |
| Next $250M | 0.925% |
| Next $500M | 0.90% |
| Next $1.5 billion | 0.875% |
| Next $2.5 billion | 0.85% |
| Next $2.5 billion | 0.825% |
| Next $2.5 billion | 0.80% |
| Over $10 billion | 0.775% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.88%.
| 17 | Invesco Balanced-Risk Allocation Fund |
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 June 30, 2020, 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 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, 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 June 30, 2020. 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $941,303.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, 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 six months ended April 30, 2019, IDI advised the Fund that IDI retained $58,314 in front-end sales commissions from the sale of Class A shares and $1,597 and $18,224 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used.
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Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $— | $1,353,139,133 | $— | $1,353,139,133 |
| Commodity - Linked Notes | — | 132,923,738 | — | 132,923,738 |
| Money Market Funds | 1,759,390,317 | — | — | 1,759,390,317 |
| Total Investments in Securities | 1,759,390,317 | 1,486,062,871 | — | 3,245,453,188 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 98,691,947 | — | — | 98,691,947 |
| Swap Agreements | — | 306,662 | — | 306,662 |
| | 98,691,947 | 306,662 | — | 98,998,609 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (573,107) | — | — | (573,107) |
| Swap Agreements | — | (1,550,006) | — | (1,550,006) |
| | (573,107) | (1,550,006) | — | (2,123,113) |
| Total Other Investments | 98,118,840 | (1,243,344) | — | 96,875,496 |
| Total Investments | $1,857,509,157 | $1,484,819,527 | $— | $3,342,328,684 |
| * | 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 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 April 30, 2019:
| | Value |
| Derivative Assets | Commodity
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized appreciation on futures contracts — Exchange-Traded(a) | $7,456,482 | $60,174,390 | $31,061,075 | $98,691,947 |
| Unrealized appreciation on swap agreements — OTC | 306,662 | - | - | 306,662 |
| Total Derivative Assets | 7,763,144 | 60,174,390 | 31,061,075 | 98,998,609 |
| Derivatives not subject to master netting agreements | (7,456,482) | (60,174,390) | (31,061,075) | (98,691,947) |
| Total Derivative Assets subject to master netting agreements | $306,662 | $- | $- | $306,662 |
| | Value |
| Derivative Liabilities | Commodity
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts — Exchange-Traded(a) | $(139,007) | $- | $(434,100) | $(573,107) |
| Unrealized depreciation on swap agreements — OTC | (1,550,006) | - | - | (1,550,006) |
| Total Derivative Liabilities | (1,689,013) | - | (434,100) | (2,123,113) |
| Derivatives not subject to master netting agreements | 139,007 | - | 434,100 | 573,107 |
| Total Derivative Liabilities subject to master netting agreements | $(1,550,006) | $- | $- | $(1,550,006) |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
| 19 | 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 April 30, 2019.
| | Financial
Derivative
Assets | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount(a) |
| Subsidiary | | | | | | |
| Barclays Bank PLC | $– | $(350,978) | $(350,978) | $– | $350,978 | $– |
| Canadian Imperial Bank of Commerce | – | (404,835) | (404,835) | – | 404,835 | – |
| Cargill, Inc. | 0 | (196,802) | (196,802) | - | - | (196,802) |
| JPMorgan Chase Bank, N.A. | 306,662 | (491,084) | (184,422) | – | 184,422 | – |
| Merrill Lynch International | 0 | (1,011,386) | (1,011,386) | - | 1,011,386 | - |
| Morgan Stanley Capital Services LLC | – | (342,318) | (342,318) | – | – | (342,318) |
| Total | $306,662 | $(2,797,403) | $(2,490,741) | $– | $1,951,621 | $(539,120) |
| (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 six months ended April 30, 2019
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 | $(27,772,192) | $(26,061,494) | $102,926,487 | $49,092,801 |
| Swap agreements | - | (3,524,687) | (3,526) | (3,528,213) |
| Change in Net Unrealized Appreciation (Depreciation): | | | | |
| Futures contracts | 25,925,557 | 133,958,026 | 58,050,369 | 217,933,952 |
| Swap agreements | 7,291,394 | (165,295) | - | 7,126,099 |
| Total | $5,444,759 | $104,206,550 | $160,973,330 | $270,624,639 |
The table below summarizes the average notional value of derivatives held during the period.
| | Futures
Contracts | Swap
Agreements |
| Average notional value | $4,407,891,929 | $437,033,242 |
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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $9,100.
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 captionAmount 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.
| 20 | Invesco Balanced-Risk Allocation Fund |
NOTE 8—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $8,439,747 | $21,782,869 | $30,222,616 |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
There were no securities purchased or sold by the Fund during the six months ended April 30, 2019. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $205,437,562 |
| Aggregate unrealized (depreciation) of investments | (26,309,497) |
| Net unrealized appreciation of investments | $179,128,065 |
Cost of investments for tax purposes is $3,163,200,619.
| 21 | Invesco Balanced-Risk Allocation Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 3,455,775 | $36,226,861 | | 9,872,233 | $106,846,923 |
| Class B(b) | — | — | | 1,847 | 19,646 |
| Class C | 1,303,742 | 12,893,123 | | 3,832,309 | 39,477,858 |
| Class R | 155,092 | 1,598,108 | | 562,025 | 5,940,987 |
| Class Y | 14,661,599 | 155,914,738 | | 43,842,985 | 480,152,084 |
| Class R5 | 188,887 | 1,992,550 | | 1,599,242 | 17,705,659 |
| Class R6 | 1,251,433 | 13,168,606 | | 16,621,185 | 182,521,790 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | — | — | | 7,313,079 | 77,957,396 |
| Class B(b) | — | — | | 28,468 | 290,375 |
| Class C | — | — | | 5,839,115 | 59,558,974 |
| Class R | — | — | | 118,620 | 1,244,328 |
| Class Y | — | — | | 9,951,049 | 107,570,841 |
| Class R5 | — | — | | 667,562 | 7,223,017 |
| Class R6 | — | — | | 1,782,157 | 19,300,763 |
| Conversion of Class B shares to Class A shares:(c) | | | | | |
| Class A | — | — | | 393,583 | 4,329,415 |
| Class B | — | — | | (411,272) | (4,329,415) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 2,204,532 | 23,007,563 | | - | - |
| Class C | (2,325,548) | (23,007,563) | | - | - |
| Reacquired: | | | | | |
| Class A | (17,442,703) | (182,173,640) | | (36,587,811) | (394,351,880) |
| Class B(b) | — | — | | (71,742) | (760,770) |
| Class C | (13,287,978) | (131,337,200) | | (30,903,065) | (318,018,934) |
| Class R | (368,941) | (3,801,405) | | (801,950) | (8,511,970) |
| Class Y | (45,768,684) | (483,361,643) | | (76,062,071) | (829,658,469) |
| Class R5 | (1,114,404) | (11,645,563) | | (7,801,543) | (85,272,301) |
| Class R6 | (15,929,570) | (169,847,416) | | (8,064,923) | (88,394,604) |
| Net increase (decrease) in share activity | (73,016,768) | $(760,372,881) | | (58,278,918) | $(619,158,287) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 40% 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, 5% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| (b) | Reflects activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| (c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| 22 | Invesco Balanced-Risk Allocation Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which the Fund invests. The amount of fees and expenses incurred indirectly by the Fund will vary because the underlying funds have varied expenses and fee levels and the Fund may own different proportions of the underlying funds at different times. Estimated underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the underlying funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly are included in the Fund’s total return.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,079.30 | $6.39 | $1,018.65 | $6.21 | 1.24% |
| Class C | 1,000.00 | 1,075.30 | 10.24 | 1,014.93 | 9.94 | 1.99 |
| Class R | 1,000.00 | 1,077.80 | 7.68 | 1,017.41 | 7.45 | 1.49 |
| Class Y | 1,000.00 | 1,081.00 | 5.11 | 1,019.89 | 4.96 | 0.99 |
| Class R5 | 1,000.00 | 1,081.90 | 4.65 | 1,020.33 | 4.51 | 0.90 |
| Class R6 | 1,000.00 | 1,081.70 | 4.49 | 1,020.48 | 4.36 | 0.87 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 23 | Invesco Balanced-Risk Allocation Fund |
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | IBRA-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Balanced-Risk Commodity Strategy Fund
Nasdaq:
A: BRCAX ■ C: BRCCX ■ R: BRCRX ■ Y: BRCYX ■ R5: BRCNX ■ R6: IBRFX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | –0.60% |
| Class C Shares | –0.93 |
| Class R Shares | –0.66 |
| Class Y Shares | –0.51 |
| Class R5 Shares | –0.32 |
| Class R6 Shares | –0.41 |
| Bloomberg Commodity Index▼ (Broad Market/Style-Specific Index) | –1.97 |
| Source(s):▼Bloomberg L.P. |
TheBloomberg Commodity Index is an unmanaged index designed to be a highly liquid and diversified benchmark for the commodity futures market.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Balanced-Risk Commodity Strategy Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (11/30/10) | –5.26% |
| 5 Years | –6.91 |
| 1 Year | –13.63 |
| Class C Shares | |
| Inception (11/30/10) | –5.34% |
| 5 Years | –6.57 |
| 1 Year | –10.23 |
| Class R Shares | |
| Inception (11/30/10) | –4.83% |
| 5 Years | –6.09 |
| 1 Year | –8.78 |
| Class Y Shares | |
| Inception (11/30/10) | –4.35% |
| 5 Years | –5.62 |
| 1 Year | –8.39 |
| Class R5 Shares | |
| Inception (11/30/10) | –4.29% |
| 5 Years | –5.50 |
| 1 Year | –8.32 |
| Class R6 Shares | |
| Inception | –4.34% |
| 5 Years | –5.47 |
| 1 Year | –8.25 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.40%, 2.15%, 1.65%, 1.15%, 1.15% and 1.12%, respectively.1,2,3 The total annual Fund operating expense ratio set forth in the
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (11/30/10) | –5.40% |
| 5 Years | –6.88 |
| 1 Year | –12.42 |
| Class C Shares | |
| Inception (11/30/10) | –5.46% |
| 5 Years | –6.52 |
| 1 Year | –8.92 |
| Class R Shares | |
| Inception (11/30/10) | –4.96% |
| 5 Years | –6.07 |
| 1 Year | –7.64 |
| Class Y Shares | |
| Inception (11/30/10) | –4.48% |
| 5 Years | –5.58 |
| 1 Year | –7.15 |
| Class R5 Shares | |
| Inception (11/30/10) | –4.44% |
| 5 Years | –5.51 |
| 1 Year | –7.10 |
| Class R6 Shares | |
| Inception | –4.47% |
| 5 Years | –5.42 |
| 1 Year | –7.02 |
most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.62%, 2.37%, 1.87%, 1.37%, 1.30% and 1.20%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns
would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 2 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | The expense ratio includes acquired fund fees and expenses of the underlying funds in which the Fund invests of 0.11%. |
| 3 | Invesco Balanced-Risk Commodity Strategy Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Schedule of Investments
April 30, 2019
(Unaudited)
| | Interest
Rate | Maturity
Date | Principal
Amount
(000) | Value |
| U.S. Treasury Securities–28.63% | | |
| U.S. Treasury Bills–15.34%(a) |
| U.S. Treasury Bills(b) | 2.39% | 05/07/2019 | | $ 42,000 | $ 41,983,270 |
| U.S. Treasury Bills | 2.37% | 06/04/2019 | | 118,700 | 118,433,973 |
| U.S. Treasury Bills | 2.48% | 06/13/2019 | | 71,500 | 71,288,500 |
| | | | | | 231,705,743 |
| U.S. Treasury Notes–13.29%(c) |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate) | 2.41% | 01/31/2020 | | 62,880 | 62,864,538 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.03%) | 2.45% | 04/30/2020 | | 64,000 | 63,993,882 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.04%) | 2.46% | 07/31/2020 | | 74,000 | 73,970,436 |
| | | | | | 200,828,856 |
| Total U.S. Treasury Securities (Cost $432,585,744) | 432,534,599 |
| | | Expiration
Date | | |
| Commodity - Linked Notes–4.99% |
| Barclays Bank PLC, U.S. Federal Funds (Effective) rate minus 0.06% (linked to the Barclays Diversified Energy-Metals Total Return Index, multiplied by 3) (United Kingdom)(d)(e) | | 12/31/2019 | | 11,800 | 14,638,549 |
| Barclays Bank PLC, U.S. Federal Funds (Effective) rate minus 0.06% (linked to the Barclays Diversified Energy-Metals Total Return Index, multiplied by 3) (United Kingdom)(d)(e) | | 01/28/2020 | | 23,500 | 33,426,844 |
| International Bank for Reconstruction and Development, 3 month USD LIBOR rate minus 0.78% (linked to the Barclays Diversified Energy-Metals Total Return Index, multiplied by 2)(d)(e) (Supranational) | | 01/30/2020 | | 30,000 | 27,348,763 |
| Total Commodity - Linked Notes (Cost $65,300,000) | 75,414,156 |
| | | | Shares | |
| Money Market Funds–61.88% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(f) | | | | 312,059,329 | 312,059,329 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(f) | | | | 183,839,706 | 183,894,858 |
| Invesco STIC (Global Series) PLC, U.S. Dollar Liquidity Portfolio (Ireland), Institutional Class, 2.51%(f) | | | | 144,720,902 | 144,720,902 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(f) | | | | 294,178,662 | 294,178,662 |
| Total Money Market Funds (Cost $934,833,518) | 934,853,751 |
| TOTAL INVESTMENTS IN SECURITIES–95.50% (Cost $1,432,719,262) | 1,442,802,506 |
| OTHER ASSETS LESS LIABILITIES–4.50% | 67,938,955 |
| NET ASSETS–100.00% | $1,510,741,461 |
Investment Abbreviations:
| LIBOR | – London Interbank Offered Rate |
Notes to Consolidated Schedule of Investments:
| (a) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| (b) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J. |
| (c) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2019. |
| (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 April 30, 2019 was $75,414,156, which represented 4.99% of the Fund’s Net Assets. |
| (e) | Barclays Diversified Energy-Metals Total Return Index - a basket of indices that provide exposure to various components of the energy and metals markets. The underlying commodities comprising the indices are: Brent Crude Oil, Copper, Gasoil, Gold, Silver, Unleaded Gasoline, and WTI Crude Oil. |
| (f) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Balanced-Risk Commodity Strategy Fund |
| Open Futures Contracts |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk |
| Cocoa | 55 | July-2019 | $1,297,450 | $23,103 | $23,103 |
| Coffee "C" | 451 | July-2019 | 15,753,994 | (1,812,323) | (1,812,323) |
| Corn | 825 | July-2019 | 14,953,125 | (1,249,121) | (1,249,121) |
| Cotton No. 2 | 1,605 | December-2019 | 60,741,225 | 1,698,030 | 1,698,030 |
| Gasoline Reformulated Blendstock Oxygenate Blending | 1,117 | May-2019 | 96,961,855 | 2,421,865 | 2,421,865 |
| Gold | 268 | June-2019 | 34,456,760 | (653,555) | (653,555) |
| Lean Hogs | 155 | December-2019 | 5,082,450 | 543,136 | 543,136 |
| Soybean | 2,184 | July-2019 | 93,256,800 | (6,881,921) | (6,881,921) |
| Wheat | 1,013 | July-2019 | 21,716,188 | (5,345,671) | (5,345,671) |
| Total Futures Contracts | $(11,256,457) | $(11,256,457) |
| 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 Heating Oil Roll Yield Excess Return Index | 0.37% | Monthly | 152,000 | January—2020 | $ | 41,312,384 | $— | $300,413 | $300,413 |
| Canadian Imperial Bank of Commerce | Pay | CIBC Soybean Oil Excess Return Index | 0.09 | Monthly | 505,000 | January—2020 | | 22,755,401 | — | 1,110,192 | 1,110,192 |
| JPMorgan Chase Bank, N.A. | Receive | S&P GSCI Gold Index Excess Return | 0.09 | Monthly | 426,500 | October—2019 | | 42,624,239 | — | 270,230 | 270,230 |
| Macquarie Bank Ltd. | Pay | Macquarie Single Commodity Nickel type A ER Index | 0.17 | Monthly | 120,000 | December—2019 | | 9,591,288 | — | 99,648 | 99,648 |
| Macquarie Bank Ltd. | Receive | Macquarie Single Commodity Silver type A Excess Return Index | 0.16 | Monthly | 200,500 | December—2019 | | 33,313,917 | — | 53,453 | 53,453 |
| Merrill Lynch International | Receive | MLCIRXB6 Excess Return Index | 0.21 | Monthly | 126,000 | April—2020 | | 10,822,354 | — | 3 | 3 |
| Merrill Lynch International | Receive | Merrill Lynch Gold Excess Return Index | 0.14 | Monthly | 272,000 | June—2019 | | 42,872,368 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCX Dynamic Enhanced Copper Excess Return Index | 0.25 | Monthly | 112,600 | September—2019 | | 68,464,910 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCX Natural Gas Annual Excess Return Index | 0.25 | Monthly | 472,000 | November—2019 | | 21,721,865 | — | 0 | 0 |
| Merrill Lynch International | Pay | MLCX2KCE Excess Return Index | 0.00 | Monthly | 3,730,000 | January—2020 | | 25,868,669 | — | 0 | 0 |
| Merrill Lynch International | Receive | MLCI3LNE Excess Return Index | 0.18 | Monthly | 24,800 | January—2020 | | 5,868,915 | — | 0 | 0 |
| Merrill Lynch International | Pay | Merrill Lynch Gold Excess Return Index | 0.01 | Monthly | 4,500 | July—2019 | | 709,286 | — | 0 | 0 |
| Morgan Stanley Capital Services LLC | Pay | Morgan Stanley MSCY2WH0 Index | 0.05 | Monthly | 95,500 | January—2020 | | 21,738,971 | — | 957,292 | 957,292 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 6 | 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) |
| Morgan Stanley Capital Services LLC | Pay | Morgan Stanley MSCY2KW0 Index | 0.05% | Monthly | 71,000 | January—2020 | $ | 11,966,432 | $— | $807,199 | $807,199 |
| Morgan Stanley Capital Services LLC | Pay | Morgan Stanley MSCY2SY0 Index | 0.05 | Monthly | 31,200 | January—2020 | | 11,733,384 | — | 621,314 | 621,314 |
| Morgan Stanley Capital Services LLC | Pay | Morgan Stanley MSCY2CN0 Index | 0.05 | Monthly | 122,000 | January—2020 | | 33,847,290 | — | 483,205 | 483,205 |
| Royal Bank of Canada | Receive | RBC Enhanced Copper LME 01 Excess Return Index | 0.28 | Monthly | 13,400 | May—2019 | | 7,619,659 | — | 0 | 0 |
| Royal Bank of Canada | Receive | RBC Enhanced Brent Crude Oil 01 Excess Return Index | 0.35 | Monthly | 258,100 | March—2020 | | 87,490,402 | — | 0 | 0 |
| Subtotal — Appreciation | | | | | — | 4,702,949 | 4,702,949 |
| Commodity Risk | | | | | | | | | | | |
| Barclays Bank PLC | Receive | Barclays Cocoa Roll Yield Excess Return Index | 0.43 | Monthly | 91,500 | February—2020 | | 12,343,213 | — | (190,595) | (190,595) |
| Barclays Bank PLC | Receive | Barclays Live Cattle Roll Yield Excess Return Index | 0.47 | Monthly | 78,000 | January—2020 | | 10,365,638 | — | (616,512) | (616,512) |
| Barclays Bank PLC | Receive | Barclays Soybean Meal Seasonal Excess Return Index | 0.52 | Monthly | 400 | January—2020 | | 399,728 | — | (18,545) | (18,545) |
| Barclays Bank PLC | Receive | Barclays WTI Crude Roll Yield Excess Return Index | 0.35 | Monthly | 109,300 | March—2020 | | 32,161,602 | — | (20,516) | (20,516) |
| Canadian Imperial Bank of Commerce | Receive | CIBC Dynamic Roll LME Copper Excess Return Index 2 | 0.30 | Monthly | 961,500 | April—2020 | | 77,413,249 | — | (580,746) | (580,746) |
| Canadian Imperial Bank of Commerce | Pay | CIBC Silver Index | 0.10 | Monthly | 55,000 | April—2020 | | 4,473,001 | — | (8,074) | (8,074) |
| Goldman Sachs International | Receive | Enhanced Strategy AB31 on the S&P GSCI Cotton Excess Return Index | 0.37 | Monthly | 433,000 | March—2020 | | 69,646,794 | — | (853,616) | (853,616) |
| Goldman Sachs International | Receive | S&P GSCI Cotton Excess Return Index | 0.45 | Monthly | 1,068,000 | September—2019 | | 45,877,724 | — | (816,614) | (816,614) |
| Goldman Sachs International | Receive | S&P GSCI Soybean Meal Excess Return Index | 0.30 | Monthly | 102,200 | June—2019 | | 100,539,475 | — | (4,119,805) | (4,119,805) |
| JPMorgan Chase Bank, N.A. | Receive | J.P. Morgan Contag Beta Gas Oil Excess Return Index | 0.25 | Monthly | 147,400 | April—2020 | | 40,872,369 | — | (715,966) | (715,966) |
| Macquarie Bank Ltd. | Receive | Macquarie Aluminum Dynamic Selection Index | 0.30 | Monthly | 1,575,000 | December—2019 | | 74,967,165 | — | (2,391,165) | (2,391,165) |
| Macquarie Bank Ltd. | Pay | Macquarie Single Commodity Zinc type A ER Index | 0.12 | Monthly | 79,000 | January—2020 | | 13,616,203 | — | (460,649) | (460,649) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | 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) |
| Macquarie Bank Ltd. | Receive | Modified Macquarie Single Commodity Sugar type A Excess Return Index | 0.34% | Monthly | 274,000 | January—2020 | $ | 41,065,860 | $— | $(561,727) | $(561,727) |
| Morgan Stanley Capital Services LLC | Receive | MS Soybean Oil Dynamic Roll Index | 0.30 | Monthly | 127,000 | April—2020 | | 15,627,147 | — | (69,367) | (69,367) |
| Morgan Stanley Capital Services LLC | Receive | S&P GSCI Aluminum Dynamic Roll Index Excess Return | 0.38 | Monthly | 75,000 | October—2019 | | 6,891,636 | — | (224,746) | (224,746) |
| Subtotal — Depreciation | | | | | — | (11,648,643) | (11,648,643) |
| Total — Total Return Swap Agreements | | | | | $— | $(6,945,694) | $(6,945,694) |
| (a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $68,419,780. |
| (b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| (c) | The table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
| Reference Entity Components |
| Reference Entity | Underlying Components | Percentage |
| Barclays Heating Oil Roll Yield Excess Return Index | | |
| | Long Futures Contracts | |
| | Heating Oil | 100.00% |
| CIBC Soybean Oil Excess Return Index | | |
| | Long Futures Contracts | |
| | Soybean Oil | 100.00% |
| S&P GSCI Gold Index Excess Return | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Macquarie Single Commodity Nickel type A ER Index | | |
| | Long Futures Contracts | |
| | Nickel | 100.00% |
| Macquarie Single Commodity Silver type A Excess Return Index | | |
| | Long Futures Contracts | |
| | Silver | 100.00% |
| MLCIRXB6 Excess Return Index | | |
| | Long Futures Contracts | |
| | Unleaded Gasoline | 100.00% |
| Merrill Lynch Gold Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| MLCX Dynamic Enhanced Copper Excess Return Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| MLCX Natural Gas Annual Excess Return Index | | |
| | Long Futures Contracts | |
| | Natural Gas | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Balanced-Risk Commodity Strategy Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| MLCX2KCE Excess Return Index | | |
| | Long Futures Contracts | |
| | Coffee | 100.00% |
| MLCI3LNE Excess Return Index | | |
| | Long Futures Contracts | |
| | Nickel | 100.00% |
| Merrill Lynch Gold Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| Morgan Stanley MSCY2KW0 Index | | |
| | Long Futures Contracts | |
| | Kansas Wheat | 100.00% |
| MS Wheat Excess Return Index | | |
| | Long Futures Contracts | |
| | Wheat | 100.00% |
| Morgan Stanley MSCY2SY0 Index | | |
| | Long Futures Contracts | |
| | Soybean | 100.00% |
| Morgan Stanley MSCY2CN0 Index | | |
| | Long Futures Contracts | |
| | Corn | 100.00% |
| RBC Enhanced Copper LME 01 Excess Return Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| RBC Enhanced Brent Crude Oil 01 Excess Return Index | | |
| | Long Futures Contracts | |
| | Brent Crude | 100.00% |
| Barclays WTI Crude Roll Yield Excess Return Index | | |
| | Long Futures Contracts | |
| | WTI Crude | 100.00% |
| Barclays Cocoa Roll Yield Excess Return Index | | |
| | Long Futures Contracts | |
| | Cocoa | 100.00% |
| Barclays Soybean Meal Seasonal Excess Return Index | | |
| | Long Futures Contracts | |
| | Soybean Meal | 100.00% |
| Barclays Live Cattle Roll Yield Excess Return Index | | |
| | Long Futures Contracts | |
| | Live Cattle | 100.00% |
| CIBC Dynamic Roll LME Copper Excess Return Index 2 | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Balanced-Risk Commodity Strategy Fund |
| Reference Entity Components—(continued) |
| Reference Entity | Underlying Components | Percentage |
| CIBC Silver Index | | |
| | Long Futures Contracts | |
| | Silver | 100.00% |
| S&P GSCI Cotton 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% |
| S&P GSCI Soybean Meal Excess Return Index | | |
| | Long Futures Contracts | |
| | Soybean Meal | 100.00% |
| J.P. Morgan Contag Beta Gas Oil Excess Return Index | | |
| | Long Futures Contracts | |
| | Gas Oil | 100.00% |
| Modified Macquarie Single Commodity Sugar type A Excess Return Index | | |
| | Long Futures Contracts | |
| | Sugar | 100.00% |
| Macquarie Single Commodity Zinc type A ER Index | | |
| | Long Futures Contracts | |
| | Zinc | 100.00% |
| Macquarie Aluminum Dynamic Selection Index | | |
| | Long Futures Contracts | |
| | Aluminum | 100.00% |
| S&P GSCI Aluminum Dynamic Roll Index Excess Return | | |
| | Long Futures Contracts | |
| | Aluminum | 100.00% |
Target Risk Allocation and Notional Asset Weights as of April 30, 2019
By asset class
| Asset Class | Target Risk
Allocation* | Notional Asset
Weights** |
| Agriculture | 24.42% | 26.03% |
| Energy | 48.97 | 27.79 |
| Industrial Metals | 17.60 | 16.63 |
| Precious Metals | 9.01 | 13.44 |
| Total | 100.00 | 83.89 |
| * | 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 Allocations. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $497,885,744) | $507,948,755 |
| Investments in affiliated money market funds, at value (Cost $934,833,518) | 934,853,751 |
| Other investments: | |
| Variation margin receivable — futures contracts | 863,193 |
| Swaps receivable — OTC | 7,115,371 |
| Unrealized appreciation on swap agreements — OTC | 4,702,949 |
| Deposits with brokers: | |
| Cash collateral — OTC Derivatives | 68,419,780 |
| Receivable for: | |
| Fund shares sold | 1,238,876 |
| Fund expenses absorbed | 413,268 |
| Dividends | 1,808,181 |
| Interest | 13,621 |
| Investment for trustee deferred compensation and retirement plans | 80,980 |
| Other assets | 92,842 |
| Total assets | 1,527,551,567 |
| Liabilities: | |
| Other investments: | |
| Swaps payable — OTC | 2,765,389 |
| Unrealized depreciation on swap agreements—OTC | 11,648,643 |
| Payable for: | |
| Fund shares reacquired | 720,477 |
| Amount due custodian | 708,610 |
| Accrued fees to affiliates | 561,837 |
| Accrued trustees’ and officers’ fees and benefits | 2,548 |
| Accrued other operating expenses | 265,733 |
| Trustee deferred compensation and retirement plans | 136,869 |
| Total liabilities | 16,810,106 |
| Net assets applicable to shares outstanding | $1,510,741,461 |
| Net assets consist of: | |
| Shares of beneficial interest | $1,552,104,841 |
| Distributable earnings | (41,363,380) |
| | $1,510,741,461 |
| Net Assets: |
| Class A | $30,201,929 |
| Class C | $7,712,546 |
| Class R | $1,526,931 |
| Class Y | $1,302,824,700 |
| Class R5 | $149,342,984 |
| Class R6 | $19,132,371 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 4,685,952 |
| Class C | 1,264,516 |
| Class R | 240,493 |
| Class Y | 198,110,215 |
| Class R5 | 22,622,437 |
| Class R6 | 2,890,831 |
| Class A: | |
| Net asset value per share | $6.45 |
Maximum offering price per share
(Net asset value of $6.45 ÷ 94.50%) | $6.83 |
| Class C: | |
| Net asset value and offering price per share | $6.10 |
| Class R: | |
| Net asset value and offering price per share | $6.35 |
| Class Y: | |
| Net asset value and offering price per share | $6.58 |
| Class R5: | |
| Net asset value and offering price per share | $6.60 |
| Class R6: | |
| Net asset value and offering price per share | $6.62 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends from affiliated money market funds | $10,628,072 |
| Interest | 5,179,825 |
| Total investment income | 15,807,897 |
| Expenses: | |
| Advisory fees | 7,297,955 |
| Administrative services fees | 128,826 |
| Custodian fees | 36,167 |
| Distribution fees: | |
| Class A | 39,417 |
| Class C | 42,527 |
| Class R | 3,805 |
| Transfer agent fees — A, C, R and Y | 1,270,728 |
| Transfer agent fees — R5 | 75,074 |
| Transfer agent fees — R6 | 277 |
| Trustees’ and officers’ fees and benefits | 23,042 |
| Registration and filing fees | 109,154 |
| Reports to shareholders | 140,564 |
| Professional services fees | 79,156 |
| Other | 37,300 |
| Total expenses | 9,283,992 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (1,573,015) |
| Net expenses | 7,710,977 |
| Net investment income | 8,096,920 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (15,618,686) |
| Futures contracts | (10,844,586) |
| Swap agreements | (16,133,344) |
| | (42,596,616) |
| Change in net unrealized appreciation of: | |
| Investment securities | 15,961,875 |
| Futures contracts | 682,281 |
| Swap agreements | 8,036,106 |
| | 24,680,262 |
| Net realized and unrealized gain (loss) | (17,916,354) |
| Net increase (decrease) in net assets resulting from operations | $(9,819,434) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $8,096,920 | $4,222,687 |
| Net realized gain (loss) | (42,596,616) | (9,000,011) |
| Change in net unrealized appreciation (depreciation) | 24,680,262 | (44,459,216) |
| Net increase (decrease) in net assets resulting from operations | (9,819,434) | (49,236,540) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (53,472) | — |
| Class C | (4,111) | — |
| Class R | (1,974) | — |
| Class Y | (2,935,782) | (89,361) |
| Class R5 | (420,320) | (66,877) |
| Class R6 | (62,452) | (5,557) |
| Total distributions to shareholders from distributable earnings | (3,478,111) | (161,795) |
| Share transactions–net: | | |
| Class A | (4,003,425) | (20,804,780) |
| Class B | — | (65,998) |
| Class C | (1,714,637) | 2,992,241 |
| Class R | (82,189) | 6,455 |
| Class Y | (13,997,578) | 793,450,503 |
| Class R5 | (16,834,018) | (33,782,869) |
| Class R6 | 67,348 | 7,744,011 |
| Net increase (decrease) in net assets resulting from share transactions | (36,564,499) | 749,539,563 |
| Net increase (decrease) in net assets | (49,862,044) | 700,141,228 |
| Net assets: | | |
| Beginning of period | 1,560,603,505 | 860,462,277 |
| End of period | $1,510,741,461 | $1,560,603,505 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Balanced-Risk Commodity Strategy Fund |
Consolidated Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $6.50 | $0.03 | $(0.07) | $(0.04) | $(0.01) | $(0.00) | $(0.01) | $6.45 | (0.60)% | $30,202 | 1.30%(d)(e) | 1.53%(d)(e) | 0.88%(d)(e) | 9% |
| Year ended 10/31/18 | 6.70 | 0.01 | (0.21) | (0.20) | — | — | — | 6.50 | (2.98) | 34,543 | 1.42 | 1.51 | 0.14 | 96 |
| Year ended 10/31/17 | 6.84 | (0.05) | 0.08 | 0.03 | (0.17) | — | (0.17) | 6.70 | 0.47 | 56,532 | 1.49 | 1.56 | (0.78) | 10 |
| Year ended 10/31/16 | 6.54 | (0.07) | 0.37 | 0.30 | — | — | — | 6.84 | 4.59 | 40,844 | 1.47 | 1.56 | (1.11) | 98 |
| Year ended 10/31/15 | 8.04 | (0.10) | (1.40) | (1.50) | — | — | — | 6.54 | (18.66) | 34,892 | 1.55 | 1.59 | (1.47) | 17 |
| Year ended 10/31/14 | 9.05 | (0.11) | (0.90) | (1.01) | — | — | — | 8.04 | (11.16) | 47,339 | 1.30 | 1.57 | (1.25) | 21 |
| Class C |
| Six months ended 04/30/19 | 6.16 | 0.00 | (0.06) | (0.06) | (0.00) | (0.00) | (0.00) | 6.10 | (0.93) | 7,713 | 2.05%(d)(e) | 2.28%(d)(e) | 0.13%(d)(e) | 9 |
| Year ended 10/31/18 | 6.40 | (0.04) | (0.20) | (0.24) | — | — | — | 6.16 | (3.75) | 9,555 | 2.17 | 2.26 | (0.61) | 96 |
| Year ended 10/31/17 | 6.57 | (0.10) | 0.08 | (0.02) | (0.15) | — | (0.15) | 6.40 | (0.34) | 7,086 | 2.24 | 2.31 | (1.53) | 10 |
| Year ended 10/31/16 | 6.33 | (0.12) | 0.36 | 0.24 | — | — | — | 6.57 | 3.79 | 5,915 | 2.22 | 2.31 | (1.86) | 98 |
| Year ended 10/31/15 | 7.84 | (0.15) | (1.36) | (1.51) | — | — | — | 6.33 | (19.26) | 2,544 | 2.30 | 2.34 | (2.22) | 17 |
| Year ended 10/31/14 | 8.89 | (0.17) | (0.88) | (1.05) | — | — | — | 7.84 | (11.81) | 3,612 | 2.05 | 2.32 | (2.00) | 21 |
| Class R |
| Six months ended 04/30/19 | 6.40 | 0.02 | (0.06) | (0.04) | (0.01) | (0.00) | (0.01) | 6.35 | (0.66) | 1,527 | 1.55%(d)(e) | 1.78%(d)(e) | 0.63%(d)(e) | 9 |
| Year ended 10/31/18 | 6.62 | (0.01) | (0.21) | (0.22) | — | — | — | 6.40 | (3.32) | 1,622 | 1.67 | 1.76 | (0.11) | 96 |
| Year ended 10/31/17 | 6.76 | (0.07) | 0.09 | 0.02 | (0.16) | — | (0.16) | 6.62 | 0.35 | 1,683 | 1.74 | 1.81 | (1.03) | 10 |
| Year ended 10/31/16 | 6.48 | (0.09) | 0.37 | 0.28 | — | — | — | 6.76 | 4.32 | 782 | 1.72 | 1.81 | (1.36) | 98 |
| Year ended 10/31/15 | 7.99 | (0.12) | (1.39) | (1.51) | — | — | — | 6.48 | (18.90) | 363 | 1.80 | 1.84 | (1.72) | 17 |
| Year ended 10/31/14 | 9.02 | (0.13) | (0.90) | (1.03) | — | — | — | 7.99 | (11.42) | 371 | 1.55 | 1.82 | (1.50) | 21 |
| Class Y |
| Six months ended 04/30/19 | 6.63 | 0.04 | (0.08) | (0.04) | (0.01) | (0.00) | (0.01) | 6.58 | (0.51) | 1,302,825 | 1.05%(d)(e) | 1.28%(d)(e) | 1.13%(d)(e) | 9 |
| Year ended 10/31/18 | 6.82 | 0.03 | (0.22) | (0.19) | (0.00) | — | (0.00) | 6.63 | (2.77) | 1,327,952 | 1.17 | 1.26 | 0.39 | 96 |
| Year ended 10/31/17 | 6.95 | (0.04) | 0.10 | 0.06 | (0.19) | — | (0.19) | 6.82 | 0.80 | 577,236 | 1.24 | 1.31 | (0.53) | 10 |
| Year ended 10/31/16 | 6.63 | (0.06) | 0.38 | 0.32 | — | — | — | 6.95 | 4.83 | 574,878 | 1.22 | 1.31 | (0.86) | 98 |
| Year ended 10/31/15 | 8.13 | (0.09) | (1.41) | (1.50) | — | — | — | 6.63 | (18.45) | 217,528 | 1.30 | 1.34 | (1.22) | 17 |
| Year ended 10/31/14 | 9.13 | (0.09) | (0.91) | (1.00) | — | — | — | 8.13 | (10.95) | 268,106 | 1.05 | 1.32 | (1.00) | 21 |
| Class R5 |
| Six months ended 04/30/19 | 6.65 | 0.04 | (0.07) | (0.03) | (0.02) | (0.00) | (0.02) | 6.60 | (0.47) | 149,343 | 1.05%(d)(e) | 1.18%(d)(e) | 1.13%(d)(e) | 9 |
| Year ended 10/31/18 | 6.84 | 0.03 | (0.22) | (0.19) | (0.00) | — | (0.00) | 6.65 | (2.74) | 167,687 | 1.11 | 1.19 | 0.45 | 96 |
| Year ended 10/31/17 | 6.97 | (0.03) | 0.09 | 0.06 | (0.19) | — | (0.19) | 6.84 | 0.83 | 205,568 | 1.16 | 1.23 | (0.45) | 10 |
| Year ended 10/31/16 | 6.64 | (0.05) | 0.38 | 0.33 | — | — | — | 6.97 | 4.97 | 195,777 | 1.13 | 1.22 | (0.77) | 98 |
| Year ended 10/31/15 | 8.13 | (0.08) | (1.41) | (1.49) | — | — | — | 6.64 | (18.33) | 259,674 | 1.15 | 1.19 | (1.07) | 17 |
| Year ended 10/31/14 | 9.13 | (0.09) | (0.91) | (1.00) | — | — | — | 8.13 | (10.95) | 269,490 | 1.02 | 1.19 | (0.97) | 21 |
| Class R6 |
| Six months ended 04/30/19 | 6.67 | 0.04 | (0.07) | (0.03) | (0.02) | (0.00) | (0.02) | 6.62 | (0.41) | 19,132 | 1.01%(d)(e) | 1.08%(d)(e) | 1.17%(d)(e) | 9 |
| Year ended 10/31/18 | 6.86 | 0.04 | (0.23) | (0.19) | (0.00) | — | (0.00) | 6.67 | (2.72) | 19,244 | 1.01 | 1.09 | 0.55 | 96 |
| Year ended 10/31/17 | 6.98 | (0.02) | 0.09 | 0.07 | (0.19) | — | (0.19) | 6.86 | 1.04 | 12,293 | 1.08 | 1.15 | (0.37) | 10 |
| Year ended 10/31/16 | 6.65 | (0.04) | 0.37 | 0.33 | — | — | — | 6.98 | 4.96 | 1,971 | 1.03 | 1.12 | (0.67) | 98 |
| Year ended 10/31/15 | 8.13 | (0.07) | (1.41) | (1.48) | — | — | — | 6.65 | (18.20) | 117,504 | 1.05 | 1.09 | (0.97) | 17 |
| Year ended 10/31/14 | 9.13 | (0.08) | (0.92) | (1.00) | — | — | — | 8.13 | (10.95) | 131,076 | 0.99 | 1.10 | (0.94) | 21 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $31,795, $8,576, $1,535, $1,252,608, $151,395 and $18,643 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Because the underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. Estimated underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the Fund’s total return. Estimated acquired fund fees from underlying funds were 0.11%. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 14 | Invesco Balanced-Risk Commodity Strategy Fund |
Notes to Consolidated Financial Statements
April 30, 2019
(Unaudited)
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. 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 Invesco Cayman Commodity Fund III Ltd. (the "Subsidiary"), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. 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 ten 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 tenth 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. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
| 15 | Invesco Balanced-Risk Commodity Strategy Fund |
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions 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.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. 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 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 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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the 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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The 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 |
| 16 | Invesco Balanced-Risk Commodity Strategy Fund |
| | 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. | Structured Securities — The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument. |
Structured securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference instruments. In addition to the credit risk of structured securities and the normal risks of price changes in response to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the value of the underlying reference instruments. Changes in the daily value of structured securities are recorded as unrealized gains (losses) in the Consolidated Statement of Operations. When the structured securities mature or are sold, the Fund recognizes a realized gain (loss) on the Consolidated Statement of Operations.
| J. | 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made 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 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. 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. |
| K. | 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 NAV 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,
| 17 | Invesco Balanced-Risk Commodity Strategy Fund |
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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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.
| L. | Other Risks — 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 commodities, 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. |
| M. | 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. |
| N. | 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 1.05% |
| Next $250 million | 1.025% |
| Next $500 million | 1.00% |
| Next $1.5 billion | 0.975% |
| Next $2.5 billion | 0.95% |
| Next $2.5 billion | 0.925% |
| Next $2.5 billion | 0.90% |
| Over $10 billion | 0.875% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 1.00%.
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 29, 2020, 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 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $535,404 and reimbursed class level expenses of $24,422, $6,587, $1,179, $962,140, $42,805 and $0 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
| 18 | Invesco Balanced-Risk Commodity Strategy Fund |
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, 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 six months ended April 30, 2019, IDI advised the Fund that IDI retained $1,683 in front-end sales commissions from the sale of Class A shares and $0 and $2,798 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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. Treasury Securities | $— | $432,534,599 | $— | $432,534,599 |
| Commodity - Linked Notes | — | 75,414,156 | — | 75,414,156 |
| Money Market Funds | 934,853,751 | — | — | 934,853,751 |
| Total Investments in Securities | 934,853,751 | 507,948,755 | — | 1,442,802,506 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 4,686,134 | — | — | 4,686,134 |
| Swap Agreements | — | 4,702,949 | — | 4,702,949 |
| | 4,686,134 | 4,702,949 | — | 9,389,083 |
| 19 | Invesco Balanced-Risk Commodity Strategy Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | $(15,942,591) | $— | $— | $(15,942,591) |
| Swap Agreements | — | (11,648,643) | — | (11,648,643) |
| | (15,942,591) | (11,648,643) | — | (27,591,234) |
| Total Other Investments | (11,256,457) | (6,945,694) | — | (18,202,151) |
| Total Investments | $923,597,294 | $501,003,061 | $— | $1,424,600,355 |
| * | 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 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 April 30, 2019:
| | Value |
| Derivative Assets | Commodity
Risk |
| Unrealized appreciation on futures contracts — Exchange-Traded(a) | $4,686,134 |
| Unrealized appreciation on swap agreements — OTC | 4,702,949 |
| Total Derivative Assets | 9,389,083 |
| Derivatives not subject to master netting agreements | (4,686,134) |
| Total Derivative Assets subject to master netting agreements | $4,702,949 |
| | Value |
| Derivative Liabilities | Commodity
Risk |
| Unrealized depreciation on futures contracts — Exchange-Traded(a) | $(15,942,591) |
| Unrealized depreciation on swap agreements — OTC | (11,648,643) |
| Total Derivative Liabilities | (27,591,234) |
| Derivatives not subject to master netting agreements | 15,942,591 |
| Total Derivative Liabilities subject to master netting agreements | $(11,648,643) |
| (a) | The daily variation margin receivable 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 April 30, 2019.
| | Financial
Derivative
Assets | | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount |
| Subsidiary | | | | | | | |
| Barclays Bank PLC | $ 300,413 | | $ (846,168) | $ (545,755) | $ - | $ 545,755 | $ - |
| Canadian Imperial Bank of Commerce | 1,110,192 | | (588,820) | 521,372 | - | - | 521,372 |
| Goldman Sachs International | - | | (5,790,035) | (5,790,035) | - | 5,790,035 | - |
| JPMorgan Chase Bank, N.A. | 270,230 | | (715,966) | (445,736) | - | 445,736 | - |
| Macquarie Bank Ltd. | 153,101 | | (3,413,541) | (3,260,440) | - | 3,260,440 | - |
| Merrill Lynch International | 1,799,384 | | (2,765,389) | (966,005) | - | 966,005 | - |
| Morgan Stanley Capital Services LLC | 2,869,010 | | (294,113) | 2,574,897 | - | (2,460,000) | 114,897 |
| 20 | Invesco Balanced-Risk Commodity Strategy Fund |
| | Financial
Derivative
Assets | | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount |
| Royal Bank of Canada | 5,315,990 | | - | 5,315,990 | - | - | 5,315,990 |
| Total | $ 11,818,320 | | $ (14,414,032) | $ (2,595,712) | $– | $ 8,547,971 | $ 5,952,259 |
Effect of Derivative Investments for the six months ended April 30, 2019
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 | $(10,844,586) |
| Swap agreements | (16,133,344) |
| Change in Net Unrealized Appreciation: | |
| Futures contracts | 682,281 |
| Swap agreements | 8,036,106 |
| Total | $(18,259,543) |
The table below summarizes the average notional value of derivatives held during the period.
| | Futures
Contracts | Swap
Agreements |
| Average notional value | $412,130,795 | $821,688,727 |
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—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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $478.
NOTE 7—Cash Balances and Borrowings
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date
| 21 | Invesco Balanced-Risk Commodity Strategy Fund |
will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $21,714,571 | $— | $21,714,571 |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $35,300,000 and $24,493,261, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $90,938,342 |
| Aggregate unrealized (depreciation) of investments | (72,747,346) |
| Net unrealized appreciation of investments | $18,190,996 |
Cost of investments for tax purposes is $1,406,409,359.
| 22 | Invesco Balanced-Risk Commodity Strategy Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 404,834 | $2,566,922 | | 3,169,241 | $21,780,368 |
| Class C | 126,108 | 745,259 | | 810,035 | 5,371,717 |
| Class R | 35,456 | 222,570 | | 106,098 | 722,955 |
| Class Y | 44,071,569 | 284,967,405 | | 158,005,872 | 1,087,459,862 |
| Class R5 | 242,683 | 1,564,442 | | 1,200,171 | 8,268,870 |
| Class R6 | 420,272 | 2,743,178 | | 1,550,041 | 10,982,304 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 7,648 | 48,335 | | — | — |
| Class C | 644 | 3,858 | | — | — |
| Class R | 316 | 1,965 | | — | — |
| Class Y | 211,248 | 1,360,440 | | 8,118 | 54,310 |
| Class R5 | 64,628 | 417,496 | | 9,913 | 66,518 |
| Class R6 | 9,615 | 62,307 | | 825 | 5,556 |
| Conversion of Class B shares to Class A shares:(b) | | | | | |
| Class A | — | — | | 8,756 | 62,252 |
| Class B | — | — | | (9,155) | (62,252) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 106,667 | 674,035 | | - | - |
| Class C | (112,562) | (674,035) | | - | - |
| Reacquired: | | | | | |
| Class A | (1,149,192) | (7,292,717) | | (6,299,545) | (42,647,400) |
| Class B(c) | — | — | | (568) | (3,746) |
| Class C | (299,624) | (1,789,719) | | (366,650) | (2,379,476) |
| Class R | (48,577) | (306,724) | | (107,098) | (716,500) |
| Class Y | (46,566,385) | (300,325,423) | | (42,291,714) | (294,063,669) |
| Class R5 | (2,882,519) | (18,815,956) | | (6,060,828) | (42,118,257) |
| Class R6 | (422,157) | (2,738,137) | | (461,003) | (3,243,849) |
| Net increase (decrease) in share activity | (5,779,328) | $(36,564,499) | | 109,272,509 | $749,539,563 |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 87% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| (b) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| (c) | Reflects activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| 23 | Invesco Balanced-Risk Commodity Strategy Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro-rata share of the fees and expenses of the underlying funds in which the Fund invests. The amount of fees and expenses incurred indirectly by the Fund will vary because the underlying funds have varied expenses and fee levels and the Fund may own different proportions of the underlying funds at different times. Estimated underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the underlying funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly are included in the Fund’s total return.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio1 |
Ending
Account Value
(04/30/19)2 | Expenses
Paid During
Period1 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period1 |
| Class A | $1,000.00 | $994.00 | $6.43 | $1,018.35 | $6.51 | 1.30% |
| Class C | 1,000.00 | 990.70 | 10.12 | 1,014.63 | 10.24 | 2.05 |
| Class R | 1,000.00 | 993.40 | 7.66 | 1,017.11 | 7.75 | 1.55 |
| Class Y | 1,000.00 | 994.90 | 5.19 | 1,019.59 | 5.26 | 1.05 |
| Class R5 | 1,000.00 | 996.80 | 5.20 | 1,019.59 | 5.26 | 1.05 |
| Class R6 | 1,000.00 | 995.90 | 5.00 | 1,019.79 | 5.06 | 1.01 |
| 1 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 2 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 24 | Invesco Balanced-Risk Commodity Strategy Fund |
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| • | Fund reports and prospectuses |
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Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | BRCS-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Developing Markets Fund
Nasdaq:
A: GTDDX ■ C: GTDCX ■ Y: GTDYX ■ R5: GTDIX ■ R6: GTDFX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 15.54% |
| Class C Shares | 15.14 |
| Class Y Shares | 15.71 |
| Class R5 Shares | 15.74 |
| Class R6 Shares | 15.77 |
| MSCI Emerging Markets Index▼ (Broad Market/Style-Specific Index) | 13.76 |
Lipper Emerging Market Funds Index■
(Peer Group Index) | 14.61 |
| Source(s):▼RIMES Technologies Corp.;■ Lipper Inc. |
The MSCI Emerging Markets Index is an unmanaged index considered representative of stocks of developing countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheLipper Emerging Market Funds Indexis an unmanaged index representative of emerging market funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Developing Markets Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (1/11/94) | 5.04% |
| 10 Years | 7.51 |
| 5 Years | 1.31 |
| 1 Year | –6.93 |
| Class C Shares | |
| Inception (3/1/99) | 8.98% |
| 10 Years | 7.32 |
| 5 Years | 1.70 |
| 1 Year | –3.22 |
| Class Y Shares | |
| Inception (10/3/08) | 7.19% |
| 10 Years | 8.39 |
| 5 Years | 2.72 |
| 1 Year | –1.27 |
| Class R5 Shares | |
| Inception (10/25/05) | 7.96% |
| 10 Years | 8.55 |
| 5 Years | 2.84 |
| 1 Year | –1.18 |
| Class R6 Shares | |
| Inception | 8.42% |
| 5 Years | 2.89 |
| 1 Year | –1.14 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class Y, Class R5 and Class R6 shares was 1.41%, 2.16%, 1.16%, 1.06% and 1.01%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (1/11/94) | 4.93% |
| 10 Years | 8.89 |
| 5 Years | 0.92 |
| 1 Year | –14.32 |
| Class C Shares | |
| Inception (3/1/99) | 8.85% |
| 10 Years | 8.69 |
| 5 Years | 1.31 |
| 1 Year | –10.87 |
| Class Y Shares | |
| Inception (10/3/08) | 6.93% |
| 10 Years | 9.78 |
| 5 Years | 2.33 |
| 1 Year | –9.10 |
| Class R5 Shares | |
| Inception (10/25/05) | 7.77% |
| 10 Years | 9.94 |
| 5 Years | 2.46 |
| 1 Year | –8.98 |
| Class R6 Shares | |
| Inception | 9.81% |
| 5 Years | 2.50 |
| 1 Year | –8.94 |
of the date of this report for Class A, Class C, Class Y, Class R5 and Class R6 shares was 1.42%, 2.17%, 1.17%, 1.07% and 1.02%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns
would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | Invesco Developing Markets Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Developing Markets Fund |
Schedule of Investments
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–94.94% |
| Brazil–15.72% |
| Ambev S.A., ADR | 13,652,112 | $64,301,448 |
| Arcos Dorados Holdings, Inc., Class A | 5,721,029 | 39,932,782 |
| B3 S.A.–Brasil, Bolsa, Balcao | 8,234,120 | 72,343,331 |
| Banco Bradesco S.A., ADR | 6,513,229 | 59,009,855 |
| Fleury S.A. | 8,997,500 | 47,613,712 |
| Kroton Educacional S.A. | 5,538,289 | 13,771,217 |
| Multiplan Empreendimentos Imobiliarios S.A. | 3,463,029 | 21,160,943 |
| Raia Drogasil S.A. | 1,039,300 | 18,325,776 |
| TOTVS S.A. | 1,387,900 | 15,768,775 |
| | | | 352,227,839 |
| China–18.62% |
| Baidu, Inc., ADR(a) | 66,233 | 11,009,912 |
| China Mengniu Dairy Co. Ltd.(a) | 15,291,000 | 56,526,489 |
| China Mobile Ltd. | 2,332,500 | 22,225,471 |
| Henan Shuanghui Investment & Development Co., Ltd., Class A | 9,709,983 | 40,112,342 |
| Industrial & Commercial Bank of China Ltd., Class H | 22,488,000 | 16,884,346 |
| Kweichow Moutai Co., Ltd., Class A | 300,356 | 43,425,179 |
| New Oriental Education & Technology Group, Inc., ADR(a) | 287,362 | 27,431,576 |
| Sunny Optical Technology Group Co., Ltd. | 3,739,600 | 45,429,732 |
| Weibo Corp., ADR(a) | 423,603 | 29,016,805 |
| Wuliangye Yibin Co., Ltd., Class A | 4,894,947 | 73,735,494 |
| Yum China Holdings, Inc. | 1,077,170 | 51,208,662 |
| | | | 417,006,008 |
| Egypt–1.57% |
| Eastern Co. S.A.E. | 16,856,490 | 17,838,231 |
| Egyptian Financial Group-Hermes Holding Co.(a) | 18,652,502 | 17,272,847 |
| | | | 35,111,078 |
| France–1.72% |
| Bollore S.A. | 8,068,041 | 38,442,921 |
| Hungary–2.83% |
| Gedeon Richter PLC | 3,200,162 | 63,323,984 |
| Indonesia–8.59% |
| PT Bank Central Asia Tbk | 32,947,600 | 66,473,228 |
| PT Bank Mandiri Persero Tbk | 123,459,800 | 66,928,207 |
| PT Telekomunikasi Indonesia Persero Tbk | 221,321,600 | 59,061,857 |
| | | | 192,463,292 |
| Israel–0.74% |
| Israel Chemicals Ltd. | 3,112,588 | 16,511,920 |
| | Shares | Value |
| Macau–2.27% |
| Galaxy Entertainment Group Ltd. | 6,779,000 | $50,755,511 |
| Malaysia–1.79% |
| Public Bank Bhd. | 7,354,200 | 40,021,647 |
| Mexico–10.67% |
| Bolsa Mexicana de Valores, S.A.B. de C.V. | 20,598,400 | 42,472,944 |
| Fomento Economico Mexicano, S.A.B. de C.V., ADR | 506,804 | 49,459,003 |
| GMexico Transportes, S.A.B. de C.V., REGS(b) | 27,888,930 | 34,129,745 |
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | 4,871,798 | 30,015,482 |
| Grupo Aeroportuario del Pacifico, S.A.B. de C.V., Class B | 4,969,897 | 50,533,283 |
| Kimberly-Clark de Mexico, S.A.B. de C.V., Class A(a) | 18,817,001 | 32,526,704 |
| | | | 239,137,161 |
| Nigeria–1.33% |
| Zenith Bank PLC | 504,865,834 | 29,809,126 |
| Peru–2.31% |
| Credicorp Ltd. | 218,960 | 51,871,624 |
| Philippines–1.60% |
| SM Investments Corp. | 726,700 | 13,247,589 |
| SM Prime Holdings, Inc. | 28,374,300 | 22,568,765 |
| | | | 35,816,354 |
| Russia–10.42% |
| Gazprom PJSC, ADR | 4,284,513 | 21,485,654 |
| Mobile TeleSystems PJSC, ADR | 2,786,494 | 21,957,573 |
| Sberbank of Russia PJSC | 9,159,044 | 31,897,021 |
| Sberbank of Russia PJSC, Preference Shares | 27,163,190 | 83,347,016 |
| Yandex N.V., Class A(a) | 1,998,426 | 74,801,085 |
| | | | 233,488,349 |
| South Korea–3.70% |
| NAVER Corp. | 137,204 | 14,035,764 |
| Samsung Electronics Co., Ltd. | 1,758,553 | 68,905,345 |
| | | | 82,941,109 |
| Taiwan–3.12% |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 8,276,000 | 69,907,989 |
| Thailand–2.61% |
| Kasikornbank PCL | 9,800,200 | 58,478,875 |
| Turkey–3.75% |
| Haci Omer Sabanci Holding A.S. | 35,295,870 | 45,547,638 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Developing Markets Fund |
| | Shares | Value |
| Turkey–(continued) |
| Tupras-Turkiye Petrol Rafinerileri A.S. | 1,857,272 | $38,378,662 |
| | | | 83,926,300 |
| United Arab Emirates–1.58% |
| Emaar Properties PJSC | 27,110,100 | 35,426,944 |
| Total Common Stocks & Other Equity Interests (Cost $1,718,687,063) | 2,126,668,031 |
| Money Market Funds–5.55% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(c) | 43,525,501 | 43,525,501 |
| | Shares | Value |
| Money Market Funds (continued)–5.55% |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(c) | 31,082,839 | $31,092,164 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(c) | 49,743,430 | 49,743,430 |
| Total Money Market Funds (Cost $124,357,574) | 124,361,095 |
| TOTAL INVESTMENTS IN SECURITIES—100.49% (Cost $1,843,044,637) | 2,251,029,126 |
| OTHER ASSETS LESS LIABILITIES–(0.49)% | (11,019,722) |
| NET ASSETS–100.00% | $2,240,009,404 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| REGS | – Regulation S |
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 value of this security at April 30, 2019 represented 1.52% of the Fund’s Net Assets. |
| (c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Financials | 30.46% |
| Consumer Staples | 17.69 |
| Communication Services | 10.36 |
| Information Technology | 8.92 |
| Consumer Discretionary | 8.19 |
| Industrials | 7.42 |
| Health Care | 4.96 |
| Real Estate | 3.53 |
| Energy | 2.67 |
| Materials | 0.74 |
| Money Market Funds Plus Other Assets Less Liabilities | 5.06 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Developing Markets Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $1,718,687,063) | $2,126,668,031 |
| Investments in affiliated money market funds, at value (Cost $124,357,574) | 124,361,095 |
| Foreign currencies, at value (Cost $4,775,966) | 4,603,593 |
| Receivable for: | |
| Investments sold | 7,969,857 |
| Fund shares sold | 1,978,187 |
| Dividends | 4,674,607 |
| Investment for trustee deferred compensation and retirement plans | 361,612 |
| Other assets | 59,512 |
| Total assets | 2,270,676,494 |
| Liabilities: | |
| Payable for: | |
| Investments purchased | 4,796,472 |
| Fund shares reacquired | 18,768,734 |
| Amount due custodian | 1,630,346 |
| Accrued foreign taxes | 3,445,199 |
| Accrued fees to affiliates | 834,814 |
| Accrued trustees’ and officers’ fees and benefits | 3,946 |
| Accrued other operating expenses | 788,080 |
| Trustee deferred compensation and retirement plans | 399,499 |
| Total liabilities | 30,667,090 |
| Net assets applicable to shares outstanding | $2,240,009,404 |
| Net assets consist of: | |
| Shares of beneficial interest | $1,884,001,906 |
| Distributable earnings | 356,007,498 |
| | $2,240,009,404 |
| Net Assets: |
| Class A | $605,653,483 |
| Class C | $28,240,898 |
| Class Y | $986,379,153 |
| Class R5 | $234,790,271 |
| Class R6 | $384,945,599 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 17,431,776 |
| Class C | 831,778 |
| Class Y | 28,393,025 |
| Class R5 | 6,777,722 |
| Class R6 | 11,117,159 |
| Class A: | |
| Net asset value per share | $34.74 |
Maximum offering price per share
(Net asset value of $34.74 ÷ 94.50%) | $36.76 |
| Class C: | |
| Net asset value and offering price per share | $33.95 |
| Class Y: | |
| Net asset value and offering price per share | $34.74 |
| Class R5: | |
| Net asset value and offering price per share | $34.64 |
| Class R6: | |
| Net asset value and offering price per share | $34.63 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Developing Markets Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $2,742,744) | $25,077,590 |
| Dividends from affiliated money market funds | 992,223 |
| Total investment income | 26,069,813 |
| Expenses: | |
| Advisory fees | 9,600,161 |
| Administrative services fees | 178,987 |
| Custodian fees | 375,434 |
| Distribution fees: | |
| Class A | 707,574 |
| Class C | 209,267 |
| Transfer agent fees — A, C and Y | 1,355,328 |
| Transfer agent fees — R5 | 106,306 |
| Transfer agent fees — R6 | 25,274 |
| Trustees’ and officers’ fees and benefits | 27,541 |
| Registration and filing fees | 77,474 |
| Reports to shareholders | 165,655 |
| Professional services fees | 40,179 |
| Other | 25,000 |
| Total expenses | 12,894,180 |
| Less: Fees waived and expense offset arrangement(s) | (53,851) |
| Net expenses | 12,840,329 |
| Net investment income | 13,229,484 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities (net of foreign taxes of $199,049) | (17,388,703) |
| Foreign currencies | (615,940) |
| | (18,004,643) |
| Change in net unrealized appreciation of: | |
| Investment securities (net of foreign taxes of $1,378,475) | 319,792,306 |
| Foreign currencies | 61,757 |
| | 319,854,063 |
| Net realized and unrealized gain | 301,849,420 |
| Net increase in net assets resulting from operations | $315,078,904 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Developing Markets Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $13,229,484 | $44,355,942 |
| Net realized gain (loss) | (18,004,643) | 53,404,323 |
| Change in net unrealized appreciation (depreciation) | 319,854,063 | (580,328,081) |
| Net increase (decrease) in net assets resulting from operations | 315,078,904 | (482,567,816) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (7,969,116) | (5,600,298) |
| Class B | — | (237) |
| Class C | (262,493) | (4,392) |
| Class Y | (16,922,299) | (16,530,978) |
| Class R5 | (5,436,248) | (5,045,947) |
| Class R6 | (7,119,345) | (4,921,857) |
| Total distributions to shareholders from distributable earnings | (37,709,501) | (32,103,709) |
| Share transactions–net: | | |
| Class A | (12,113,767) | (217,263,166) |
| Class B | — | (5,577,356) |
| Class C | (33,890,448) | (19,884,658) |
| Class Y | (122,970,354) | (350,973,354) |
| Class R5 | (83,341,881) | (116,212,674) |
| Class R6 | (24,502,127) | 18,721,617 |
| Net increase (decrease) in net assets resulting from share transactions | (276,818,577) | (691,189,591) |
| Net increase (decrease) in net assets | 550,826 | (1,205,861,116) |
| Net assets: | | |
| Beginning of period | 2,239,458,578 | 3,445,319,694 |
| End of period | $2,240,009,404 | $2,239,458,578 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Developing Markets Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $30.54 | $0.16 | $4.50 | $4.66 | $(0.46) | $— | $(0.46) | $34.74 | 15.50% | $605,653 | 1.38%(d) | 1.38%(d) | 1.01%(d) | 3% |
| Year ended 10/31/18 | 36.66 | 0.44 | (6.29) | (5.85) | (0.27) | — | (0.27) | 30.54 | (16.09) | 544,574 | 1.39 | 1.40 | 1.23 | 20 |
| Year ended 10/31/17 | 30.67 | 0.28 | 5.96 | 6.24 | (0.25) | — | (0.25) | 36.66 | 20.55 | 878,910 | 1.41 | 1.43 | 0.86 | 16 |
| Year ended 10/31/16 | 25.84 | 0.27 | 4.80 | 5.07 | (0.24) | — | (0.24) | 30.67 | 19.88 | 824,702 | 1.40 | 1.41 | 1.01 | 3 |
| Year ended 10/31/15 | 33.77 | 0.28 | (7.32) | (7.04) | (0.33) | (0.56) | (0.89) | 25.84 | (21.20) | 795,042 | 1.43 | 1.44 | 0.96 | 9 |
| Year ended 10/31/14 | 34.42 | 0.38 | (0.65) | (0.27) | (0.28) | (0.10) | (0.38) | 33.77 | (0.73) | 1,251,018 | 1.39 | 1.41 | 1.13 | 13 |
| Class C |
| Six months ended 04/30/19 | 29.64 | 0.04 | 4.41 | 4.45 | (0.14) | — | (0.14) | 33.95 | 15.10 | 28,241 | 2.13(d) | 2.13(d) | 0.26(d) | 3 |
| Year ended 10/31/18 | 35.59 | 0.17 | (6.12) | (5.95) | (0.00) | — | (0.00) | 29.64 | (16.71) | 55,823 | 2.14 | 2.15 | 0.48 | 20 |
| Year ended 10/31/17 | 29.78 | 0.03 | 5.81 | 5.84 | (0.03) | — | (0.03) | 35.59 | 19.65 | 88,231 | 2.16 | 2.18 | 0.11 | 16 |
| Year ended 10/31/16 | 25.03 | 0.07 | 4.68 | 4.75 | — | — | — | 29.78 | 18.98 | 82,513 | 2.15 | 2.16 | 0.26 | 3 |
| Year ended 10/31/15 | 32.68 | 0.06 | (7.10) | (7.04) | (0.05) | (0.56) | (0.61) | 25.03 | (21.80) | 82,395 | 2.18 | 2.19 | 0.21 | 9 |
| Year ended 10/31/14 | 33.27 | 0.12 | (0.61) | (0.49) | (0.00) | (0.10) | (0.10) | 32.68 | (1.47) | 137,867 | 2.14 | 2.16 | 0.38 | 13 |
| Class Y |
| Six months ended 04/30/19 | 30.60 | 0.20 | 4.50 | 4.70 | (0.56) | — | (0.56) | 34.74 | 15.67 | 986,379 | 1.13(d) | 1.13(d) | 1.26(d) | 3 |
| Year ended 10/31/18 | 36.74 | 0.53 | (6.31) | (5.78) | (0.36) | — | (0.36) | 30.60 | (15.89) | 986,550 | 1.14 | 1.15 | 1.48 | 20 |
| Year ended 10/31/17 | 30.74 | 0.37 | 5.95 | 6.32 | (0.32) | — | (0.32) | 36.74 | 20.84 | 1,575,401 | 1.16 | 1.18 | 1.11 | 16 |
| Year ended 10/31/16 | 25.92 | 0.35 | 4.79 | 5.14 | (0.32) | — | (0.32) | 30.74 | 20.18 | 1,055,132 | 1.15 | 1.16 | 1.26 | 3 |
| Year ended 10/31/15 | 33.90 | 0.36 | (7.35) | (6.99) | (0.43) | (0.56) | (0.99) | 25.92 | (21.00) | 1,016,382 | 1.18 | 1.19 | 1.21 | 9 |
| Year ended 10/31/14 | 34.55 | 0.46 | (0.64) | (0.18) | (0.37) | (0.10) | (0.47) | 33.90 | (0.47) | 1,463,586 | 1.14 | 1.16 | 1.38 | 13 |
| Class R5 |
| Six months ended 04/30/19 | 30.55 | 0.22 | 4.48 | 4.70 | (0.61) | — | (0.61) | 34.64 | 15.70 | 234,790 | 1.04(d) | 1.04(d) | 1.35(d) | 3 |
| Year ended 10/31/18 | 36.68 | 0.56 | (6.29) | (5.73) | (0.40) | — | (0.40) | 30.55 | (15.80) | 287,511 | 1.04 | 1.05 | 1.58 | 20 |
| Year ended 10/31/17 | 30.69 | 0.41 | 5.94 | 6.35 | (0.36) | — | (0.36) | 36.68 | 20.97 | 470,436 | 1.04 | 1.06 | 1.23 | 16 |
| Year ended 10/31/16 | 25.90 | 0.38 | 4.79 | 5.17 | (0.38) | — | (0.38) | 30.69 | 20.33 | 331,079 | 1.03 | 1.04 | 1.38 | 3 |
| Year ended 10/31/15 | 33.87 | 0.40 | (7.33) | (6.93) | (0.48) | (0.56) | (1.04) | 25.90 | (20.87) | 352,779 | 1.03 | 1.04 | 1.36 | 9 |
| Year ended 10/31/14 | 34.52 | 0.51 | (0.66) | (0.15) | (0.40) | (0.10) | (0.50) | 33.87 | (0.35) | 686,180 | 0.99 | 1.01 | 1.53 | 13 |
| Class R6 |
| Six months ended 04/30/19 | 30.55 | 0.23 | 4.48 | 4.71 | (0.63) | — | (0.63) | 34.63 | 15.76 | 384,946 | 0.98(d) | 0.98(d) | 1.41(d) | 3 |
| Year ended 10/31/18 | 36.67 | 0.57 | (6.27) | (5.70) | (0.42) | — | (0.42) | 30.55 | (15.74) | 365,000 | 0.99 | 1.00 | 1.63 | 20 |
| Year ended 10/31/17 | 30.68 | 0.42 | 5.94 | 6.36 | (0.37) | — | (0.37) | 36.67 | 21.04 | 427,243 | 1.00 | 1.02 | 1.27 | 16 |
| Year ended 10/31/16 | 25.90 | 0.39 | 4.78 | 5.17 | (0.39) | — | (0.39) | 30.68 | 20.35 | 160,816 | 0.98 | 0.99 | 1.43 | 3 |
| Year ended 10/31/15 | 33.87 | 0.41 | (7.33) | (6.92) | (0.49) | (0.56) | (1.05) | 25.90 | (20.84) | 180,773 | 1.00 | 1.01 | 1.39 | 9 |
| Year ended 10/31/14 | 34.52 | 0.52 | (0.65) | (0.13) | (0.42) | (0.10) | (0.52) | 33.87 | (0.31) | 179,467 | 0.97 | 0.99 | 1.55 | 13 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $570,750, $42,200, $968,334, $257,835 and $361,106 for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Developing Markets Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
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 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.
As of the open of business on June 8, 2017, the Fund has closed public sales of its shares to new investors.
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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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.
| 11 | Invesco Developing Markets Fund |
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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the |
| 12 | Invesco Developing Markets Fund |
| | 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.91% |
| Next $500 million | 0.885% |
| Next $1.5 billion | 0.86% |
| Next $2.5 billion | 0.835% |
| Next $2.5 billion | 0.81% |
| Next $2.5 billion | 0.785% |
| Over $10 billion | 0.76% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.88%.
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 June 30, 2020, 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 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 “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 June 30, 2020. 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $47,892.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration
| 13 | Invesco Developing Markets Fund |
agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $14,966 in front-end sales commissions from the sale of Class A shares and $2,814 and $902 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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.
| 14 | Invesco Developing Markets Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Brazil | $352,227,839 | $— | $— | $352,227,839 |
| China | 297,840,782 | 119,165,226 | — | 417,006,008 |
| Egypt | 35,111,078 | — | — | 35,111,078 |
| France | — | 38,442,921 | — | 38,442,921 |
| Hungary | 63,323,984 | — | — | 63,323,984 |
| Indonesia | 133,401,435 | 59,061,857 | — | 192,463,292 |
| Israel | — | 16,511,920 | — | 16,511,920 |
| Macau | — | 50,755,511 | — | 50,755,511 |
| Malaysia | 40,021,647 | — | — | 40,021,647 |
| Mexico | 239,137,161 | — | — | 239,137,161 |
| Nigeria | 29,809,126 | — | — | 29,809,126 |
| Peru | 51,871,624 | — | — | 51,871,624 |
| Philippines | 35,816,354 | — | — | 35,816,354 |
| Russia | 212,002,695 | 21,485,654 | — | 233,488,349 |
| South Korea | 14,035,764 | 68,905,345 | — | 82,941,109 |
| Taiwan | — | 69,907,989 | — | 69,907,989 |
| Thailand | 58,478,875 | — | — | 58,478,875 |
| Turkey | 83,926,300 | — | — | 83,926,300 |
| United Arab Emirates | 35,426,944 | — | — | 35,426,944 |
| Money Market Funds | 124,361,095 | — | — | 124,361,095 |
| Total Investments | $1,806,792,703 | $444,236,423 | $— | $2,251,029,126 |
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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $5,959.
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, andTrustees’ andOfficers’ 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’ andOfficers’ 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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
| 15 | Invesco Developing Markets Fund |
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $— | $44,672,626 | $44,672,626 |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $59,389,541 and $386,399,929, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $582,778,239 |
| Aggregate unrealized (depreciation) of investments | (176,655,912) |
| Net unrealized appreciation of investments | $406,122,327 |
Cost of investments for tax purposes is $1,844,906,799.
| 16 | Invesco Developing Markets Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 836,381 | $27,470,225 | | 2,110,745 | $75,597,388 |
| Class B(b) | — | — | | 966 | 35,601 |
| Class C | 24,838 | 792,970 | | 74,017 | 2,594,775 |
| Class Y | 3,775,967 | 122,616,604 | | 13,040,787 | 464,395,701 |
| Class R5 | 797,822 | 26,056,007 | | 2,789,818 | 98,466,621 |
| Class R6 | 1,825,231 | 60,854,842 | | 4,463,920 | 160,267,505 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 235,461 | 7,068,534 | | 140,820 | 5,158,251 |
| Class B(b) | — | — | | 5 | 189 |
| Class C | 7,897 | 232,233 | | 112 | 4,025 |
| Class Y | 378,031 | 11,337,175 | | 272,609 | 9,985,678 |
| Class R5 | 157,203 | 4,698,810 | | 114,412 | 4,179,476 |
| Class R6 | 202,111 | 6,037,061 | | 104,419 | 3,812,321 |
| Conversion of Class B shares to Class A shares:(c) | | | | | |
| Class A | — | — | | 119,310 | 4,815,368 |
| Class B | — | — | | (122,363) | (4,815,368) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 821,605 | 27,246,498 | | - | - |
| Class C | (839,440) | (27,246,498) | | - | - |
| Reacquired: | | | | | |
| Class A | (2,294,623) | (73,899,024) | | (8,514,057) | (302,834,173) |
| Class B(b) | — | — | | (21,675) | (797,778) |
| Class C | (244,878) | (7,669,153) | | (669,772) | (22,483,458) |
| Class Y | (8,001,540) | (256,924,133) | | (23,957,809) | (825,354,733) |
| Class R5 | (3,589,624) | (114,096,698) | | (6,318,851) | (218,858,771) |
| Class R6 | (2,859,692) | (91,394,030) | | (4,270,373) | (145,358,209) |
| Net increase (decrease) in share activity | (8,767,250) | $(276,818,577) | | (20,642,960) | $(691,189,591) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and own 43% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| (b) | Class B shares activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| (c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| 17 | Invesco Developing Markets Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,155.40 | $7.37 | $1,017.95 | $6.90 | 1.38% |
| Class C | 1,000.00 | 1,151.40 | 11.36 | 1,014.23 | 10.64 | 2.13 |
| Class Y | 1,000.00 | 1,157.10 | 6.04 | 1,019.19 | 5.66 | 1.13 |
| Class R5 | 1,000.00 | 1,157.40 | 5.56 | 1,019.64 | 5.21 | 1.04 |
| Class R6 | 1,000.00 | 1,157.70 | 5.24 | 1,019.93 | 4.91 | 0.98 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 18 | Invesco Developing Markets Fund |
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | DVM-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Emerging Markets Flexible Bond Fund
Nasdaq:
A: IAEMX ■ C: ICEMX ■ R: IREMX ■ Y: IYEMX ■ R5: IIEMX ■ R6: IFEMX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 4.18% |
| Class C Shares | 3.79 |
| Class R Shares | 4.05 |
| Class Y Shares | 4.31 |
| Class R5 Shares | 4.30 |
| Class R6 Shares | 4.31 |
| JP Morgan EMBI Global Diversified Index▼ (Broad Market Index) | 8.20 |
3-month USD LIBOR Index■
(Style-Specific Index) | 1.32 |
Lipper Emerging Markets Hard Currency Debt Funds Index♦
(Peer Group Index) | 6.90 |
| Source(s):▼FactSet Research Systems Inc.;■ Bloomberg L.P.;♦ Lipper Inc. |
TheJP Morgan EMBI Global Diversified Index is an unmanaged index that tracks the traded market for US dollar-denominated Brady bonds, eurobonds, traded loans and local market debt instruments issued by sovereign and quasi-sovereign entities.
The3-Month USD LIBOR Index is unmanaged index considered representative of the average interest rate at which a selection of banks in London are prepared to lend to one another in American dollars with a maturity of three months.
TheLipper Emerging Markets Hard Currency Debt Funds Index is an unmanaged index considered representative of emerging markets hard currency debt funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Emerging Markets Flexible Bond Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (6/16/10) | –0.98% |
| 5 Years | –4.53 |
| 1 Year | –7.73 |
| Class C Shares | |
| Inception (6/16/10) | –1.25% |
| 5 Years | –4.43 |
| 1 Year | –5.49 |
| Class R Shares | |
| Inception (6/16/10) | –0.77% |
| 5 Years | –3.95 |
| 1 Year | –4.09 |
| Class Y Shares | |
| Inception (6/16/10) | –0.25% |
| 5 Years | –3.45 |
| 1 Year | –3.44 |
| Class R5 Shares | |
| Inception (6/16/10) | –0.25% |
| 5 Years | –3.43 |
| 1 Year | –3.45 |
| Class R6 Shares | |
| Inception | –0.33% |
| 5 Years | –3.46 |
| 1 Year | –3.61 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.24%, 1.99%, 1.49%, 0.99%, 0.99% and 0.99%, respectively.1,2 The total annual Fund operating expense ratio set forth in the
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (6/16/10) | –1.01% |
| 5 Years | –4.37 |
| 1 Year | –9.51 |
| Class C Shares | |
| Inception (6/16/10) | –1.26% |
| 5 Years | –4.25 |
| 1 Year | –7.08 |
| Class R Shares | |
| Inception (6/16/10) | –0.79% |
| 5 Years | –3.79 |
| 1 Year | –5.73 |
| Class Y Shares | |
| Inception (6/16/10) | –0.27% |
| 5 Years | –3.28 |
| 1 Year | –5.24 |
| Class R5 Shares | |
| Inception (6/16/10) | –0.29% |
| 5 Years | –3.29 |
| 1 Year | –5.40 |
| Class R6 Shares | |
| Inception | –0.35% |
| 5 Years | –3.29 |
| 1 Year | –5.25 |
most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 2.01%, 2.76%, 2.26%, 1.76%, 1.46% and 1.46%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 4.25% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns
would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 2 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | Invesco Emerging Markets Flexible Bond Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Emerging Markets Flexible Bond Fund |
Consolidated Schedule of Investments
April 30, 2019
(Unaudited)
| | Principal
Amount | Value |
| U.S. Dollar Denominated Bonds & Notes–51.52% |
| Angola–1.01% |
| Angolan Government International Bond, REGS, 9.38% 05/08/2048(a) | | $300,000 | $322,993 |
| Argentina–0.99% |
| Argentine Republic Government International Bond, 6.63% 07/06/2028 | | 450,000 | 317,813 |
| Brazil–1.31% |
| Petrobras Global Finance B.V., | | |
| 5.75%, 02/01/2029 | | 134,000 | 134,670 |
| 6.90%, 03/19/2049 | | 284,000 | 284,707 |
| | | | 419,377 |
| Chile–1.66% |
| Empresa Nacional del Petroleo, 5.25% 11/06/2029(a) | | 276,000 | 300,281 |
| Latam Finance Ltd., 7.00% 03/01/2026(a) | | 225,000 | 230,906 |
| | | | 531,187 |
| China–4.47% |
| China Construction Bank Corp., REGS, 4.65% (a)(b) | | 200,000 | 201,800 |
| China Merchants Bank Co. Ltd., 4.40% (b) | | 200,000 | 196,012 |
| CIFI Holdings Group Co. Ltd., 5.50% 01/23/2022 | | 200,000 | 196,165 |
| Country Garden Holdings Co. Ltd., REGS, 5.13% 01/17/2025(a) | | 250,000 | 239,903 |
| Shimao Property Holdings Ltd., REGS, 5.20% 01/30/2025(a) | | 400,000 | 393,440 |
| Sunac China Holdings Ltd., REGS, 7.95% 08/08/2022(a) | | 200,000 | 204,560 |
| | | | 1,431,880 |
| Colombia–1.31% |
| Colombia Government International Bond, | | |
| 3.88%, 04/25/2027 | | 200,000 | 203,094 |
| 4.50%, 03/15/2029 | | 205,000 | 216,583 |
| | | | 419,677 |
| Ecuador–2.50% |
| Ecuador Government International Bond, REGS, | | |
| 9.65%, 12/13/2026(a) | | 400,000 | 427,500 |
| 9.63%, 06/02/2027(a) | | 350,000 | 372,312 |
| | | | 799,812 |
| | Principal
Amount | Value |
| Ghana–2.46% |
| Ghana Government International Bond, | | |
| 7.88%, 03/26/2027(a) | | $252,000 | $256,387 |
| 8.13%, 03/26/2032(a) | | 324,000 | 321,894 |
| 8.95%, 03/26/2051(a) | | 212,000 | 210,359 |
| | | | 788,640 |
| Guatemala–0.63% |
| Industrial Senior Trust, REGS, 5.50% 11/01/2022(a) | | 200,000 | 203,000 |
| Hong Kong–1.25% |
| Bank of East Asia Ltd. (The), REGS, 5.50% (a)(b) | | 200,000 | 201,464 |
| Industrial & Commercial Bank of China Asia Ltd., REGS, 4.25% (a)(b) | | 200,000 | 198,494 |
| | | | 399,958 |
| Indonesia–2.68% |
| Indonesia Government International Bond, | | |
| 4.75%, 02/11/2029 | | 200,000 | 214,498 |
| 5.35%, 02/11/2049 | | 206,000 | 230,564 |
| PT Indonesia Asahan Aluminium (Persero), 5.71% 11/15/2023(a) | | 200,000 | 214,804 |
| PT Perusahaan Listrik Negara, REGS, 4.13% 05/15/2027(a) | | 200,000 | 197,410 |
| | | | 857,276 |
| Jamaica–1.77% |
| Jamaica Government International Bond, 6.75% 04/28/2028 | | 505,000 | 566,863 |
| Kazakhstan–1.39% |
| KazMunayGas National Co. JSC, REGS, 6.38% 10/24/2048(a) | | 400,000 | 444,160 |
| Kenya–0.93% |
| Kenya Government International Bond, REGS, 7.25% 02/28/2028(a) | | 300,000 | 298,547 |
| Lebanon–0.81% |
| Lebanon Government International Bond, 6.40% 05/26/2023 | | 300,000 | 260,708 |
| Macau–0.65% |
| Studio City Finance Ltd., 7.25% 02/11/2024(a) | | 200,000 | 209,200 |
| Mexico–4.03% |
| America Movil S.A.B. de C.V., 5.00% 10/16/2019 | | 200,000 | 202,174 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Emerging Markets Flexible Bond Fund |
| | Principal
Amount | Value |
| Mexico–(continued) |
| Mexico Government International Bond, | | |
| 3.75%, 01/11/2028 | | $600,000 | $590,070 |
| 4.50%, 04/22/2029 | | 200,000 | 206,600 |
| Petroleos Mexicanos, | | |
| 5.35%, 02/12/2028 | | 104,000 | 97,635 |
| 6.75%, 09/21/2047 | | 210,000 | 193,935 |
| | | | 1,290,414 |
| Namibia–0.61% |
| Namibia International Bond, REGS, 5.25% 10/29/2025(a) | | 200,000 | 194,545 |
| Paraguay–1.32% |
| Paraguay Government International Bond, | | |
| 5.60%, 03/13/2048(a) | | 200,000 | 214,250 |
| 5.40%, 03/30/2050(a) | | 200,000 | 209,825 |
| | | | 424,075 |
| Peru–3.61% |
| Corp. Financiera de Desarrollo S.A., REGS, 3.25% 07/15/2019(a) | | 600,000 | 601,680 |
| Inkia Energy Ltd., REGS, 5.88% 11/09/2027(a) | | 350,000 | 352,104 |
| Peru Enhanced Pass-Through Finance Ltd., REGS, Class A-2, 0.00% 06/02/2025(a)(c) | | 228,089 | 201,859 |
| | | | 1,155,643 |
| Qatar–0.94% |
| Qatar Government International Bond, 4.82% 03/14/2049(a) | | 279,000 | 300,274 |
| Russia–4.30% |
| ALROSA Finance S.A., 4.65% 04/09/2024(a) | | 200,000 | 202,028 |
| Gazprom OAO Via Gaz Capital S.A., 5.15% 02/11/2026(a) | | 350,000 | 363,297 |
| Russian Foreign Bond, REGS, 4.25% 06/23/2027(a) | | 600,000 | 604,755 |
| Russian Foreign Bond - Eurobond, 5.10% 03/28/2035(a) | | 200,000 | 207,159 |
| | | | 1,377,239 |
| Saudi Arabia–2.28% |
| Dar Al-Arkan Sukuk Co. Ltd., REGS, 6.88% 03/21/2023(a) | | 350,000 | 335,019 |
| Saudi Arabian Oil Co., MTN, | | |
| 3.50%, 04/16/2029(a) | | 200,000 | 196,849 |
| 4.25%, 04/16/2039(a) | | 201,000 | 196,545 |
| | | | 728,413 |
| Senegal–0.75% |
| Senegal Government International Bond, 6.25% 05/23/2033(a) | | 250,000 | 241,494 |
| Singapore–0.82% |
| Puma International Financing S.A., 5.00% 01/24/2026(a) | | 300,000 | 260,889 |
| | Principal
Amount | Value |
| South Africa–1.59% |
| MTN Mauritius Investments Ltd., REGS, 5.37% 02/13/2022(a) | | $300,000 | $304,252 |
| Republic of South Africa Government International Bond, 5.88% 06/22/2030 | | 200,000 | 204,732 |
| | | | 508,984 |
| Sri Lanka–1.07% |
| Sri Lanka Government International Bond, REGS, 5.75% 04/18/2023(a) | | 350,000 | 344,139 |
| Supranational–0.77% |
| Africa Finance Corp., MTN, 4.38% 04/17/2026(a) | | 245,000 | 245,823 |
| Turkey–2.95% |
| Akbank T.A.S., REGS, 7.20% 03/16/2027(a) | | 350,000 | 287,061 |
| Turk Telekomunikasyon A.S., 6.88% 02/28/2025(a) | | 305,000 | 292,815 |
| Turkcell Iletisim Hizmetleri A.S., 5.80% 04/11/2028(a) | | 200,000 | 174,810 |
| Turkiye Vakiflar Bankasi T.A.O., 8.13% 03/28/2024(a) | | 200,000 | 188,310 |
| | | | 942,996 |
| United Arab Emirates–0.66% |
| DP World PLC, 5.63% 09/25/2048(a) | | 200,000 | 211,730 |
| Total U.S. Dollar Denominated Bonds & Notes (Cost $16,219,772) | 16,497,749 |
| Non-U.S. Dollar Denominated Bonds & Notes–42.91%(d) |
| Brazil–2.09% |
| Brazil Notas do Tesouro Nacional Series NTNF, 10.00%, 01/01/2027 | BRL | 2,400,000 | 669,304 |
| Colombia–2.49% |
| Colombian Titulos De Tesoreria, | | |
Series B,
10.00%, 07/24/2024 | COP | 1,620,000,000 | 591,993 |
| 7.00%, 06/30/2032 | COP | 658,300,000 | 204,194 |
| | | | 796,187 |
| Czech Republic–5.84% |
| Czech Republic Government Bond, | | |
| Series 52, REGS, 4.70%, 09/12/2022(a) | CZK | 6,000,000 | 288,661 |
| Series 58, REGS, 5.70%, 05/25/2024(a) | CZK | 4,200,000 | 220,145 |
| Series 89, REGS, 2.40%, 09/17/2025(a) | CZK | 900,000 | 40,836 |
| Series 97, REGS, 0.45%, 10/25/2023(a) | CZK | 31,900,000 | 1,322,246 |
| | | | 1,871,888 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Emerging Markets Flexible Bond Fund |
| | Principal
Amount | Value |
| Indonesia–9.75% |
| Indonesia Treasury Bond, | | |
| Series FR56, 8.38%, 09/15/2026 | IDR | 2,000,000,000 | $147,437 |
| Series FR63, 5.63%, 05/15/2023 | IDR | 8,375,000,000 | 556,737 |
| Series FR64, 6.13%, 05/15/2028 | IDR | 13,240,000,000 | 836,211 |
| Series FR77, 8.13%, 05/15/2024 | IDR | 14,145,000,000 | 1,028,118 |
| Series FR78, 8.25%, 05/15/2029 | IDR | 2,500,000,000 | 181,140 |
| Series FR79, 8.38%, 04/15/2039 | IDR | 5,273,000,000 | 372,348 |
| | | | 3,121,991 |
| Mexico–7.11% |
| Mexican Bonos, | | |
Series M,
6.50%, 06/09/2022 | MXN | 6,100,000 | 309,087 |
| 8.00%, 12/07/2023 | MXN | 9,000,000 | 475,889 |
| 7.50%, 06/03/2027 | MXN | 14,800,000 | 753,578 |
| 7.75%, 11/23/2034 | MXN | 7,730,000 | 386,146 |
| 7.75%, 11/13/2042 | MXN | 1,900,000 | 92,818 |
| Series M-20, 10.00%, 12/05/2024 | MXN | 4,500,000 | 259,552 |
| | | | 2,277,070 |
| Peru–2.25% |
| Peru Government Bond, REGS, 6.15%, 08/12/2032(a) | PEN | 700,000 | 223,299 |
| Peruvian Government International Bond, 5.94%, 02/12/2029(a) | PEN | 1,550,000 | 497,448 |
| | | | 720,747 |
| Poland–2.80% |
| Republic of Poland Government Bond, | | |
| Series 0726, 2.50%, 07/25/2026 | PLN | 600,000 | 155,625 |
| Series 422, 2.25%, 04/25/2022 | PLN | 1,900,000 | 502,614 |
| Series 424, 2.50%, 04/25/2024 | PLN | 900,000 | 237,245 |
| | | | 895,484 |
| Russia–1.44% |
| Russian Federal Bond - OFZ, | | |
| Series 6219, 7.75%, 09/16/2026 | RUB | 24,000,000 | 369,148 |
| Series 6221, 7.70%, 03/23/2033 | RUB | 6,100,000 | 90,842 |
| | | | 459,990 |
| South Africa–5.91% |
| Republic of South Africa Government Bond, | | |
| | Principal
Amount | Value |
| South Africa–(continued) |
| Series 2030, 8.00%, 01/31/2030 | ZAR | 3,600,000 | $232,635 |
| Series 2032, 8.25%, 03/31/2032 | ZAR | 3,300,000 | 211,989 |
| Series 2035, 8.88%, 02/28/2035 | ZAR | 2,000,000 | 131,626 |
| Series 2044, 8.75%, 01/31/2044 | ZAR | 4,200,000 | 265,190 |
| Series 2048, 8.75%, 02/28/2048 | ZAR | 11,500,000 | 727,784 |
| Series R186, 10.50%, 12/21/2026 | ZAR | 4,200,000 | 324,902 |
| | | | 1,894,126 |
| Thailand–2.43% |
| Thailand Government Bond, | | |
| 2.88%, 12/17/2028 | THB | 11,000,000 | 357,203 |
| 4.88%, 06/22/2029 | THB | 7,300,000 | 275,070 |
| 3.30%, 06/17/2038 | THB | 4,500,000 | 146,348 |
| | | | 778,621 |
| Turkey–0.36% |
| Turkey Government Bond, 10.60%, 02/11/2026 | TRY | 1,000,000 | 113,962 |
| United Arab Emirates–0.44% |
| DP World PLC, 2.38%, 09/25/2026(a) | EUR | 120,000 | 140,910 |
| Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $13,793,701) | 13,740,280 |
| | Shares | |
| Money Market Funds–18.37% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(e) | 2,059,148 | 2,059,148 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(e) | 1,470,379 | 1,470,820 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(e) | 2,353,313 | 2,353,313 |
| Total Money Market Funds (Cost $5,883,281) | 5,883,281 |
| TOTAL INVESTMENTS IN SECURITIES—112.80% (Cost $35,896,754) | 36,121,310 |
| OTHER ASSETS LESS LIABILITIES–(12.80)% | (4,098,674) |
| NET ASSETS–100.00% | $32,022,636 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Emerging Markets Flexible Bond Fund |
Investment Abbreviations:
| BRL | – Brazilian Real |
| COP | – Colombia Peso |
| CZK | – Czech Koruna |
| EUR | – Euro |
| IDR | – Indonesian Rupiah |
| MXN | – Mexican Peso |
| PEN | – Peruvian Sol |
| PLN | – Polish Zloty |
| REGS | – Regulation S |
| RUB | – Russian Ruble |
| THB | – Thai Baht |
| TRY | – Turkish Lira |
| ZAR | – South African Rand |
Notes to Consolidated Schedule of Investments:
| (a) | 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 April 30, 2019 was $14,914,471, which represented 46.57% of the Fund’s Net Assets. |
| (b) | Perpetual bond with no specified maturity date. |
| (c) | Zero coupon bond issued at a discount. The interest rate shown represents the yield to maturity at issue. |
| (d) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
| (e) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
| Open Futures Contracts |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation |
| Interest Rate Risk |
| U.S. Treasury 5 Year Notes | 15 | June-2019 | $1,734,609 | $12,386 | $12,386 |
| Open Forward Foreign Currency Contracts |
Settlement
Date | Counterparty | Contract to | Unrealized
Appreciation
(Depreciation) |
| Deliver | Receive |
| Currency Risk | | | | | | |
| 07/24/2019 | Bank of America, N.A. | USD | 196,736 | CNY | 1,350,000 | $3,639 |
| 05/28/2019 | Barclays Bank PLC | USD | 104,470 | RUB | 6,800,000 | 321 |
| 05/28/2019 | Barclays Bank PLC | USD | 185,017 | MXN | 3,600,000 | 4,114 |
| 05/28/2019 | Barclays Bank PLC | PLN | 1,400,000 | USD | 367,429 | 834 |
| 05/28/2019 | Citibank N.A. | CLP | 823,038,000 | USD | 1,256,719 | 41,768 |
| 05/28/2019 | Citibank N.A. | CZK | 43,206,000 | USD | 1,915,398 | 23,609 |
| 05/28/2019 | Citibank N.A. | USD | 442,279 | MXN | 8,500,000 | 4,280 |
| 05/28/2019 | Citibank N.A. | ZAR | 8,400,000 | USD | 590,082 | 4,610 |
| 05/28/2019 | Citibank N.A. | ARS | 8,260,000 | USD | 187,487 | 7,599 |
| 05/28/2019 | Citibank N.A. | USD | 1,224,771 | ZAR | 17,800,000 | 15,872 |
| 05/28/2019 | Citibank N.A. | TRY | 2,406,669 | USD | 416,158 | 19,260 |
| 05/28/2019 | Citibank N.A. | HUF | 208,993,000 | USD | 744,243 | 19,309 |
| 05/28/2019 | Citibank N.A. | THB | 24,000,000 | USD | 755,499 | 3,320 |
| 05/03/2019 | Citibank N.A. | BRL | 751,000 | USD | 192,544 | 1,016 |
| 05/03/2019 | Citibank N.A. | USD | 368,153 | BRL | 1,451,000 | 1,896 |
| 05/28/2019 | Citibank N.A. | USD | 181,138 | PEN | 600,000 | 119 |
| 05/28/2019 | Goldman Sachs International | ARS | 9,458,167 | USD | 209,202 | 3,219 |
| 05/28/2019 | Goldman Sachs International | IDR | 6,121,186,000 | USD | 430,312 | 2,010 |
| 05/28/2019 | Goldman Sachs International | EUR | 600,000 | USD | 685,163 | 10,745 |
| 05/28/2019 | Goldman Sachs International | USD | 332,787 | MXN | 6,500,000 | 8,699 |
| 05/31/2019 | Goldman Sachs International | TWD | 11,600,000 | USD | 376,281 | 207 |
| 05/28/2019 | Goldman Sachs International | USD | 221,174 | ZAR | 3,200,000 | 1,863 |
| 10/31/2019 | Morgan Stanley Bank, N.A. | USD | 784,722 | CNY | 5,430,234 | 20,820 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Emerging Markets Flexible Bond Fund |
| Open Forward Foreign Currency Contracts—(continued) |
Settlement
Date | Counterparty | Contract to | Unrealized
Appreciation
(Depreciation) |
| Deliver | Receive |
| 05/28/2019 | Morgan Stanley Bank, N.A. | ZAR | 18,060,000 | USD | 1,276,343 | $17,577 |
| 05/28/2019 | Morgan Stanley Bank, N.A. | TRY | 1,700,000 | USD | 303,295 | 22,937 |
| 05/28/2019 | Morgan Stanley Bank, N.A. | IDR | 2,100,000,000 | USD | 146,983 | 45 |
| 06/04/2019 | Morgan Stanley Bank, N.A. | USD | 735,997 | BRL | 2,906,010 | 3,308 |
| 05/03/2019 | Morgan Stanley Bank, N.A. | USD | 736,575 | BRL | 2,906,010 | 4,546 |
| Subtotal—Appreciation | 247,542 |
| Currency Risk | | | | | | |
| 07/24/2019 | Bank of America, N.A. | CNY | 1,350,000 | USD | 197,123 | (3,251) |
| 05/28/2019 | Bank of America, N.A. | MXN | 28,363,330 | USD | 1,452,727 | (37,376) |
| 05/28/2019 | Bank of America, N.A. | USD | 190,832 | HUF | 53,100,000 | (6,644) |
| 05/28/2019 | Bank of America, N.A. | USD | 96,752 | EUR | 84,582 | (1,679) |
| 10/31/2019 | Barclays Bank PLC | CNY | 4,065,000 | USD | 582,401 | (20,617) |
| 05/28/2019 | Barclays Bank PLC | RUB | 1,400,000 | USD | 21,109 | (465) |
| 05/28/2019 | Barclays Bank PLC | IDR | 14,000,000,000 | USD | 976,494 | (3,092) |
| 05/28/2019 | Barclays Bank PLC | USD | 1,075,953 | HUF | 305,000,000 | (17,999) |
| 05/28/2019 | Citibank N.A. | USD | 841,699 | TRY | 4,864,524 | (39,460) |
| 05/28/2019 | Citibank N.A. | USD | 625,294 | COP | 1,965,100,000 | (18,319) |
| 05/28/2019 | Citibank N.A. | PEN | 1,020,000 | USD | 306,435 | (1,701) |
| 05/28/2019 | Citibank N.A. | USD | 638,967 | HUF | 177,400,000 | (23,620) |
| 05/28/2019 | Citibank N.A. | USD | 264,327 | ARS | 11,300,000 | (18,233) |
| 05/28/2019 | Citibank N.A. | USD | 300,000 | EUR | 265,369 | (1,718) |
| 05/28/2019 | Citibank N.A. | USD | 350,017 | IDR | 5,000,000,000 | (165) |
| 05/28/2019 | Citibank N.A. | MXN | 4,288,573 | USD | 223,222 | (2,084) |
| 05/28/2019 | Citibank N.A. | USD | 210,881 | ZAR | 3,000,000 | (1,784) |
| 05/28/2019 | Citibank N.A. | TRY | 1,100,000 | USD | 180,435 | (973) |
| 05/03/2019 | Citibank N.A. | BRL | 700,000 | USD | 177,426 | (1,095) |
| 10/31/2019 | Goldman Sachs International | CNY | 1,365,234 | USD | 195,000 | (7,524) |
| 05/28/2019 | Goldman Sachs International | USD | 243,590 | THB | 7,600,000 | (5,400) |
| 05/28/2019 | Goldman Sachs International | MXN | 6,500,000 | USD | 333,465 | (8,021) |
| 05/28/2019 | Goldman Sachs International | IDR | 6,300,000,000 | USD | 439,484 | (1,330) |
| 05/28/2019 | Goldman Sachs International | USD | 156,232 | EUR | 136,797 | (2,468) |
| 05/28/2019 | Goldman Sachs International | USD | 304,817 | ZAR | 4,352,275 | (1,468) |
| 05/28/2019 | Goldman Sachs International | USD | 1,484,230 | MYR | 6,000,000 | (33,740) |
| 05/03/2019 | Goldman Sachs International | USD | 530,540 | BRL | 2,057,010 | (5,940) |
| 05/28/2019 | Goldman Sachs International | RUB | 23,700,000 | USD | 361,130 | (4,097) |
| 05/28/2019 | Goldman Sachs International | ZAR | 5,400,000 | USD | 375,480 | (895) |
| 05/03/2019 | Goldman Sachs International | BRL | 2,057,010 | USD | 521,382 | (3,218) |
| 05/28/2019 | Morgan Stanley Bank, N.A. | USD | 175,815 | PLN | 670,000 | (373) |
| 05/28/2019 | Morgan Stanley Bank, N.A. | USD | 230,393 | TRY | 1,300,000 | (16,002) |
| 05/28/2019 | Morgan Stanley Bank, N.A. | USD | 1,707,691 | CLP | 1,132,100,068 | (36,509) |
| 05/28/2019 | Morgan Stanley Bank, N.A. | ZAR | 2,200,000 | USD | 151,646 | (1,692) |
| 05/28/2019 | Morgan Stanley Bank, N.A. | IDR | 5,700,000,000 | USD | 395,559 | (3,273) |
| 05/03/2019 | Morgan Stanley Bank, N.A. | USD | 231,523 | BRL | 900,000 | (1,996) |
| 05/28/2019 | Morgan Stanley Bank, N.A. | USD | 164,258 | ARS | 7,500,000 | (920) |
| 05/28/2019 | Morgan Stanley Bank, N.A. | RUB | 13,300,000 | USD | 202,189 | (2,770) |
| 05/28/2019 | Morgan Stanley Bank, N.A. | MYR | 3,000,000 | USD | 722,717 | (2,528) |
| 05/03/2019 | Morgan Stanley Bank, N.A. | BRL | 3,806,010 | USD | 966,061 | (4,589) |
| Subtotal—Depreciation | (345,028) |
| Total Forward Foreign Currency Contracts | $(97,486) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Emerging Markets Flexible Bond Fund |
| Abbreviations: |
| ARS | —Argentina Peso |
| BRL | —Brazilian Real |
| CLP | —Chile Peso |
| CNY | —Chinese Yuan Renminbi |
| COP | —Colombia Peso |
| CZK | —Czech Koruna |
| EUR | —Euro |
| HUF | —Hungarian Forint |
| IDR | —Indonesian Rupiah |
| MXN | —Mexican Peso |
| MYR | —Malaysian Ringgit |
| PEN | —Peruvian Sol |
| PLN | —Polish Zloty |
| RUB | —Russian Ruble |
| THB | —Thai Baht |
| TRY | —Turkish Lira |
| TWD | —Taiwan New Dollar |
| USD | —U.S. Dollar |
| ZAR | —South African Rand |
Portfolio Composition
By industry, based on Net Assets
as of April 30, 2019
| Sovereign Debt | 66.00% |
| Diversified Banks | 5.38 |
| Integrated Oil & Gas | 4.84 |
| Real Estate Development | 3.23 |
| Other Diversified Financial Services | 2.51 |
| Wireless Telecommunication Services | 2.13 |
| Oil & Gas Refining & Marketing | 1.76 |
| Electric Utilities | 1.72 |
| Oil & Gas Exploration & Production | 1.13 |
| Marine Ports & Services | 1.10 |
| Diversified Real Estate Activities | 1.05 |
| Industry Type Each Less Than 1% of Net Assets | 3.58 |
| Money Market Funds Plus Other Assets Less Liabilities | 5.57 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Emerging Markets Flexible Bond Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $30,013,473) | $30,238,029 |
| Investments in affiliated money market funds, at value (Cost $5,883,281) | 5,883,281 |
| Other investments: | |
| Variation margin receivable — futures contracts | 17,344 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 247,542 |
| Cash | 126,033 |
| Foreign currencies, at value (Cost $759,657) | 741,337 |
| Receivable for: | |
| Fund shares sold | 241 |
| Dividends | 1,722 |
| Interest | 511,040 |
| Investment for trustee deferred compensation and retirement plans | 31,578 |
| Other assets | 55,924 |
| Total assets | 37,854,071 |
| Liabilities: | |
| Other investments: | |
| Unrealized depreciation on forward foreign currency contracts outstanding | 345,028 |
| Payable for: | |
| Fund shares reacquired | 5,317,592 |
| Accrued foreign taxes | 7,592 |
| Accrued fees to affiliates | 44,961 |
| Accrued trustees’ and officers’ fees and benefits | 1,543 |
| Accrued other operating expenses | 82,014 |
| Trustee deferred compensation and retirement plans | 32,705 |
| Total liabilities | 5,831,435 |
| Net assets applicable to shares outstanding | $32,022,636 |
| Net assets consist of: | |
| Shares of beneficial interest | $37,322,888 |
| Distributable earnings | (5,300,252) |
| | $32,022,636 |
| Net Assets: |
| Class A | $3,727,070 |
| Class C | $744,342 |
| Class R | $106,933 |
| Class Y | $1,053,614 |
| Class R5 | $6,031 |
| Class R6 | $26,384,646 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 632,009 |
| Class C | 126,119 |
| Class R | 18,148 |
| Class Y | 178,660 |
| Class R5 | 1,023 |
| Class R6 | 4,479,773 |
| Class A: | |
| Net asset value per share | $5.90 |
Maximum offering price per share
(Net asset value of $5.90 ÷ 95.75%) | $6.16 |
| Class C: | |
| Net asset value and offering price per share | $5.90 |
| Class R: | |
| Net asset value and offering price per share | $5.89 |
| Class Y: | |
| Net asset value and offering price per share | $5.90 |
| Class R5: | |
| Net asset value and offering price per share | $5.90 |
| Class R6: | |
| Net asset value and offering price per share | $5.89 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Emerging Markets Flexible Bond Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Interest (net of foreign withholding taxes of $11,333) | $1,088,532 |
| Dividends from affiliated money market funds | 20,345 |
| Total investment income | 1,108,877 |
| Expenses: | |
| Advisory fees | 138,305 |
| Administrative services fees | 10,092 |
| Custodian fees | 2,669 |
| Distribution fees: | |
| Class A | 4,515 |
| Class C | 4,189 |
| Class R | 241 |
| Transfer agent fees — A, C, R and Y | 10,434 |
| Transfer agent fees — R6 | 66 |
| Trustees’ and officers’ fees and benefits | 11,368 |
| Registration and filing fees | 40,593 |
| Reports to shareholders | 7,834 |
| Professional services fees | 27,538 |
| Other | 18,634 |
| Total expenses | 276,478 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (85,929) |
| Net expenses | 190,549 |
| Net investment income | 918,328 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities (net of foreign taxes of $7,328) | (545,783) |
| Foreign currencies | (37,946) |
| Forward foreign currency contracts | 82,745 |
| Futures contracts | 7,174 |
| Swap agreements | (24,768) |
| | (518,578) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities (net of foreign taxes of $7,592) | 1,516,802 |
| Foreign currencies | (30,636) |
| Forward foreign currency contracts | (357,789) |
| Futures contracts | 12,386 |
| | 1,140,763 |
| Net realized and unrealized gain | 622,185 |
| Net increase in net assets resulting from operations | $1,540,513 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Emerging Markets Flexible Bond Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $918,328 | $2,461,537 |
| Net realized gain (loss) | (518,578) | (4,522,117) |
| Change in net unrealized appreciation (depreciation) | 1,140,763 | (2,591,950) |
| Net increase (decrease) in net assets resulting from operations | 1,540,513 | (4,652,530) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (79,062) | (130,497) |
| Class C | (15,465) | (29,725) |
| Class R | (2,078) | (4,149) |
| Class Y | (24,491) | (70,981) |
| Class R5 | (140) | (219) |
| Class R6 | (738,709) | (1,376,683) |
| Total distributions to shareholders from distributable earnings | (859,945) | (1,612,254) |
| Return of capital: | | |
| Class A | — | (39,740) |
| Class C | — | (11,932) |
| Class R | — | (1,449) |
| Class Y | — | (19,145) |
| Class R5 | — | (61) |
| Class R6 | — | (391,475) |
| Total return of capital | — | (463,802) |
| Share transactions–net: | | |
| Class A | 223,284 | (803,791) |
| Class B | — | (68,467) |
| Class C | (218,872) | (95,207) |
| Class R | 14,837 | (176,276) |
| Class Y | (81,076) | (553,789) |
| Class R6 | (5,907,189) | (12,148,670) |
| Net increase (decrease) in net assets resulting from share transactions | (5,969,016) | (13,846,200) |
| Net increase (decrease) in net assets | (5,288,448) | (20,574,786) |
| Net assets: | | |
| Beginning of period | 37,311,084 | 57,885,870 |
| End of period | $32,022,636 | $37,311,084 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Emerging Markets Flexible Bond Fund |
Consolidated Financial Highlights
April 30, 2019
(Unaudited)
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 | Return of
capital | 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 |
| Six months ended 04/30/19 | $5.79 | $0.14 | $0.10 | $0.24 | $(0.13) | $- | $(0.13) | $5.90 | 4.18% | $3,727 | 1.23%(d) | 2.02%(d) | 4.78%(d) | 103% |
| Year ended 10/31/18 | 6.71 | 0.30 | (0.96) | (0.66) | (0.20) | (0.06) | (0.26) | 5.79 | (10.09) | 3,434 | 1.28 | 2.06 | 4.79 | 260 |
| Year ended 10/31/17 | 6.53 | 0.35 | 0.07 | 0.42 | (0.24) | - | (0.24) | 6.71 | 6.62 | 4,832 | 1.23 | 1.91 | 5.25 | 245 |
| Year ended 10/31/16 | 6.77 | 0.27 | (0.25) | 0.02 | — | (0.26) | (0.26) | 6.53 | 0.45 | 5,182 | 1.23 | 1.91 | 4.16 | 266 |
| Year ended 10/31/15 | 8.49 | 0.41 | (1.76) | (1.35) | — | (0.37) | (0.37) | 6.77 | (16.20) | 6,282 | 1.24 | 1.89 | 5.46 | 50 |
| Year ended 10/31/14 | 9.17 | 0.46 | (0.77) | (0.31) | (0.06) | (0.31) | (0.37) | 8.49 | (3.44) | 9,379 | 1.24 | 1.84 | 5.29 | 69 |
| Class C |
| Six months ended 04/30/19 | 5.79 | 0.12 | 0.10 | 0.22 | (0.11) | - | (0.11) | 5.90 | 3.79 | 744 | 1.98(d) | 2.77(d) | 4.03(d) | 103 |
| Year ended 10/31/18 | 6.71 | 0.26 | (0.97) | (0.71) | (0.16) | (0.05) | (0.21) | 5.79 | (10.77) | 946 | 2.03 | 2.81 | 4.04 | 260 |
| Year ended 10/31/17 | 6.54 | 0.30 | 0.06 | 0.36 | (0.19) | - | (0.19) | 6.71 | 5.66 | 1,221 | 1.98 | 2.66 | 4.50 | 245 |
| Year ended 10/31/16 | 6.77 | 0.22 | (0.24) | (0.02) | — | (0.21) | (0.21) | 6.54 | (0.21) | 1,195 | 1.98 | 2.66 | 3.41 | 266 |
| Year ended 10/31/15 | 8.49 | 0.35 | (1.75) | (1.40) | — | (0.32) | (0.32) | 6.77 | (16.82) | 1,385 | 1.99 | 2.64 | 4.71 | 50 |
| Year ended 10/31/14 | 9.17 | 0.40 | (0.78) | (0.38) | (0.05) | (0.25) | (0.30) | 8.49 | (4.16) | 2,244 | 1.99 | 2.59 | 4.54 | 69 |
| Class R |
| Six months ended 04/30/19 | 5.78 | 0.13 | 0.10 | 0.23 | (0.12) | - | (0.12) | 5.89 | 4.05 | 107 | 1.48(d) | 2.27(d) | 4.53(d) | 103 |
| Year ended 10/31/18 | 6.70 | 0.29 | (0.97) | (0.68) | (0.18) | (0.06) | (0.24) | 5.78 | (10.33) | 90 | 1.53 | 2.31 | 4.54 | 260 |
| Year ended 10/31/17 | 6.53 | 0.33 | 0.07 | 0.40 | (0.23) | - | (0.23) | 6.70 | 6.20 | 283 | 1.48 | 2.16 | 5.00 | 245 |
| Year ended 10/31/16 | 6.76 | 0.25 | (0.24) | 0.01 | — | (0.24) | (0.24) | 6.53 | 0.33 | 264 | 1.48 | 2.16 | 3.91 | 266 |
| Year ended 10/31/15 | 8.48 | 0.39 | (1.76) | (1.37) | — | (0.35) | (0.35) | 6.76 | (16.43) | 363 | 1.49 | 2.14 | 5.21 | 50 |
| Year ended 10/31/14 | 9.17 | 0.44 | (0.78) | (0.34) | (0.06) | (0.29) | (0.35) | 8.48 | (3.79) | 460 | 1.49 | 2.09 | 5.04 | 69 |
| Class Y |
| Six months ended 04/30/19 | 5.79 | 0.15 | 0.10 | 0.25 | (0.14) | - | (0.14) | 5.90 | 4.31 | 1,054 | 0.98(d) | 1.77(d) | 5.03(d) | 103 |
| Year ended 10/31/18 | 6.71 | 0.32 | (0.97) | (0.65) | (0.21) | (0.06) | (0.27) | 5.79 | (9.85) | 1,116 | 1.03 | 1.81 | 5.04 | 260 |
| Year ended 10/31/17 | 6.53 | 0.36 | 0.08 | 0.44 | (0.26) | - | (0.26) | 6.71 | 6.89 | 1,977 | 0.98 | 1.66 | 5.50 | 245 |
| Year ended 10/31/16 | 6.77 | 0.29 | (0.25) | 0.04 | — | (0.28) | (0.28) | 6.53 | 0.72 | 354 | 0.98 | 1.66 | 4.41 | 266 |
| Year ended 10/31/15 | 8.49 | 0.45 | (1.78) | (1.33) | — | (0.39) | (0.39) | 6.77 | (15.99) | 304 | 0.99 | 1.64 | 5.71 | 50 |
| Year ended 10/31/14 | 9.17 | 0.49 | (0.78) | (0.29) | (0.06) | (0.33) | (0.39) | 8.49 | (3.20) | 2,911 | 0.99 | 1.59 | 5.54 | 69 |
| Class R5 |
| Six months ended 04/30/19 | 5.79 | 0.15 | 0.10 | 0.25 | (0.14) | - | (0.14) | 5.90 | 4.30 | 6 | 0.98(d) | 1.39(d) | 5.03(d) | 103 |
| Year ended 10/31/18 | 6.71 | 0.32 | (0.97) | (0.65) | (0.21) | (0.06) | (0.27) | 5.79 | (9.85) | 6 | 0.98 | 1.45 | 5.09 | 260 |
| Year ended 10/31/17 | 6.53 | 0.36 | 0.08 | 0.44 | (0.26) | - | (0.26) | 6.71 | 6.89 | 7 | 0.98 | 1.31 | 5.50 | 245 |
| Year ended 10/31/16 | 6.77 | 0.29 | (0.25) | 0.04 | — | (0.28) | (0.28) | 6.53 | 0.72 | 7 | 0.98 | 1.28 | 4.41 | 266 |
| Year ended 10/31/15 | 8.48 | 0.45 | (1.77) | (1.32) | — | (0.39) | (0.39) | 6.77 | (15.89) | 7 | 0.99 | 1.34 | 5.71 | 50 |
| Year ended 10/31/14 | 9.16 | 0.49 | (0.78) | (0.29) | (0.06) | (0.33) | (0.39) | 8.48 | (3.20) | 186 | 0.99 | 1.31 | 5.54 | 69 |
| Class R6 |
| Six months ended 04/30/19 | 5.78 | 0.15 | 0.10 | 0.25 | (0.14) | - | (0.14) | 5.89 | 4.31 | 26,385 | 0.98(d) | 1.39(d) | 5.03(d) | 103 |
| Year ended 10/31/18 | 6.70 | 0.33 | (0.98) | (0.65) | (0.21) | (0.06) | (0.27) | 5.78 | (9.88) | 31,718 | 0.98 | 1.45 | 5.09 | 260 |
| Year ended 10/31/17 | 6.53 | 0.36 | 0.07 | 0.43 | (0.26) | - | (0.26) | 6.70 | 6.73 | 49,498 | 0.98 | 1.31 | 5.50 | 245 |
| Year ended 10/31/16 | 6.77 | 0.29 | (0.25) | 0.04 | — | (0.28) | (0.28) | 6.53 | 0.73 | 60,702 | 0.98 | 1.28 | 4.41 | 266 |
| Year ended 10/31/15 | 8.48 | 0.43 | (1.75) | (1.32) | — | (0.39) | (0.39) | 6.77 | (15.89) | 37,373 | 0.99 | 1.33 | 5.71 | 50 |
| Year ended 10/31/14 | 9.16 | 0.49 | (0.78) | (0.29) | (0.06) | (0.33) | (0.39) | 8.48 | (3.21) | 39,617 | 0.99 | 1.30 | 5.54 | 69 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $3,642, $845, $97, $1,050, $6 and $31,547 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 14 | Invesco Emerging Markets Flexible Bond Fund |
Notes to Consolidated Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Emerging Markets Flexible 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. 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 Invesco Emerging Markets Flexible Bond Cayman Ltd. (the "Subsidiary"), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. 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 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 ten 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 tenth 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 consolidated financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
| 15 | Invesco Emerging Markets Flexible Bond Fund |
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions 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.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. 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 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 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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions- Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the 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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The 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 |
| 16 | Invesco Emerging Markets Flexible Bond Fund |
| | 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. | Structured Securities — The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument. |
Structured securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference instruments. In addition to the credit risk of structured securities and the normal risks of price changes in response to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the value of the underlying reference instruments. Changes in the daily value of structured securities are recorded as unrealized gains (losses) in the Consolidated Statement of Operations. When the structured securities mature or are sold, the Fund recognizes a realized gain (loss) 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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, 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the 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 |
| 17 | Invesco Emerging Markets Flexible Bond Fund |
| | 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. 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 NAV 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 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.
| 18 | Invesco Emerging Markets Flexible Bond Fund |
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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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. | Other Risks – 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 commodities, 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. |
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.
| P. | 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. |
| Q. | 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.75% |
| Next $500 million | 0.70% |
| Next $500 million | 0.67% |
| Over $1.5 billion | 0.65% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.75%.
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 29, 2020, 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 1.24%, 1.99%, 1.49%, 0.99%, 0.99% and 0.99%, 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
| 19 | Invesco Emerging Markets Flexible Bond Fund |
expense limits above. Unless Invesco continues the fee waiver agreement, it will terminate on February 29, 2020. 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 June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $75,429 and reimbursed class level expenses of $6,640, $1,540, $177, $1,915, $0 and $66 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, 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 six months ended April 30, 2019, IDI advised the Fund that IDI retained $340 in front-end sales commissions from the sale of Class A shares and $0 and $51 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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. Dollar Denominated Bonds & Notes | $— | $16,497,749 | $— | $16,497,749 |
| Non-U.S. Dollar Denominated Bonds & Notes | — | 13,740,280 | — | 13,740,280 |
| Money Market Funds | 5,883,281 | — | — | 5,883,281 |
| Total Investments in Securities | 5,883,281 | 30,238,029 | — | 36,121,310 |
| 20 | Invesco Emerging Markets Flexible Bond Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Other Investments - Assets* | | | | |
| Futures Contracts | $12,386 | $— | $— | $12,386 |
| Forward Foreign Currency Contracts | — | 247,542 | — | 247,542 |
| | 12,386 | 247,542 | — | 259,928 |
| Other Investments - Liabilities* | | | | |
| Forward Foreign Currency Contracts | — | (345,028) | — | (345,028) |
| Total Other Investments | 12,386 | (97,486) | — | (85,100) |
| Total Investments | $5,895,667 | $30,140,543 | $— | $36,036,210 |
| * | 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 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 April 30, 2019:
| | Value |
| Derivative Assets | Currency
Risk | Interest
Rate Risk | Total |
| Unrealized appreciation on futures contracts — Exchange-Traded(a) | $- | $12,386 | $12,386 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 247,542 | - | 247,542 |
| Total Derivative Assets | 247,542 | 12,386 | 259,928 |
| Derivatives not subject to master netting agreements | - | (12,386) | (12,386) |
| Total Derivative Assets subject to master netting agreements | $247,542 | $- | $247,542 |
| | Value |
| Derivative Liabilities | Currency
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on forward foreign currency contracts outstanding | $(345,028) | $- | $(345,028) |
| Derivatives not subject to master netting agreements | - | - | - |
| Total Derivative Liabilities subject to master netting agreements | $(345,028) | $- | $(345,028) |
| (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 April 30, 2019.
| | 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 |
| Bank of America, N.A. | $3,639 | $(48,950) | $(45,311) | $– | $– | $(45,311) |
| Barclays Bank PLC | 5,269 | (42,173) | (36,904) | – | – | (36,904) |
| Citibank, N.A. | 142,658 | (109,152) | 33,506 | – | – | 33,506 |
| Goldman Sachs International | 26,743 | (74,101) | (47,358) | – | – | (47,358) |
| Morgan Stanley Bank, N.A. | 69,233 | (70,652) | (1,419) | – | – | (1,419) |
| Total | $247,542 | $(345,028) | $(97,486) | $– | $– | $(97,486) |
| 21 | Invesco Emerging Markets Flexible Bond Fund |
Effect of Derivative Investments for the six months ended April 30, 2019
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 |
| | Credit
Risk | Currency
Risk | Interest
Rate Risk | Total |
| Realized Gain (Loss): | | | | |
| Forward foreign currency contracts | $- | $82,745 | $- | $82,745 |
| Futures contracts | - | - | 7,174 | 7,174 |
| Options purchased(a) | - | (3,774) | - | (3,774) |
| Swap agreements | (24,768) | - | - | (24,768) |
| Change in Net Unrealized Appreciation (Depreciation): | | | | |
| Forward foreign currency contracts | - | (357,789) | - | (357,789) |
| Futures contracts | - | - | 12,386 | 12,386 |
| Options purchased(a) | - | (1,160) | - | (1,160) |
| Total | $(24,768) | $(279,978) | $19,560 | $(285,186) |
| (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 six month average notional of forward foreign currency contracts, four month average notional of futures contracts and the two month average notional of options purchased and swap agreements outstanding during the period.
| | Forward
Foreign Currency
Contracts | Futures
Contracts | Options
Purchased | Swap
Agreements |
| Average notional value | $27,185,999 | $1,757,055 | $695,000 | $2,400,000 |
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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $162.
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date
| 22 | Invesco Emerging Markets Flexible Bond Fund |
will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $2,645,329 | $1,655,623 | $4,300,952 |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $34,877,456 and $38,459,322, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $304,961 |
| Aggregate unrealized (depreciation) of investments | (796,611) |
| Net unrealized appreciation (depreciation) of investments | $(491,650) |
Cost of investments for tax purposes is $36,527,860.
| 23 | Invesco Emerging Markets Flexible Bond Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 69,361 | $403,274 | | 152,537 | $990,105 |
| Class C | 20,248 | 119,484 | | 85,800 | 570,891 |
| Class R | 5,062 | 29,650 | | 2,305 | 14,868 |
| Class Y | 23,683 | 139,094 | | 121,362 | 779,423 |
| Class R6 | 1,403 | 8,075 | | 486,839 | 3,083,982 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 11,422 | 66,606 | | 23,667 | 147,792 |
| Class B(b) | — | — | | 42 | 280 |
| Class C | 1,461 | 8,523 | | 4,371 | 27,284 |
| Class R | 334 | 1,949 | | 846 | 5,353 |
| Class Y | 2,729 | 15,905 | | 8,469 | 52,556 |
| Class R6 | 127,006 | 738,709 | | 282,356 | 1,767,650 |
| Conversion of Class B shares to Class A shares:(c) | | | | | |
| Class A | — | — | | 9,784 | 65,942 |
| Class B | — | — | | (9,790) | (65,942) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 34,929 | 205,052 | | - | - |
| Class C | (34,929) | (205,052) | | - | - |
| Reacquired: | | | | | |
| Class A | (77,078) | (451,648) | | (312,825) | (2,007,630) |
| Class B(b) | — | — | | (420) | (2,805) |
| Class C | (24,040) | (141,827) | | (108,717) | (693,382) |
| Class R | (2,875) | (16,762) | | (29,682) | (196,497) |
| Class Y | (40,641) | (236,075) | | (231,698) | (1,385,768) |
| Class R6 | (1,136,032) | (6,653,973) | | (2,666,822) | (17,000,302) |
| Net increase (decrease) in share activity | (1,017,957) | $(5,969,016) | | (2,181,576) | $(13,846,200) |
| (a) | 82% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| (b) | Class B shares activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| (c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| 24 | Invesco Emerging Markets Flexible Bond Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,041.80 | $6.23 | $1,018.70 | $6.16 | 1.23% |
| Class C | 1,000.00 | 1,037.90 | 10.00 | 1,014.98 | 9.89 | 1.98 |
| Class R | 1,000.00 | 1,040.50 | 7.49 | 1,017.46 | 7.40 | 1.48 |
| Class Y | 1,000.00 | 1,043.10 | 4.96 | 1,019.93 | 4.91 | 0.98 |
| Class R5 | 1,000.00 | 1,043.00 | 4.96 | 1,019.93 | 4.91 | 0.98 |
| Class R6 | 1,000.00 | 1,043.10 | 4.96 | 1,019.93 | 4.91 | 0.98 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 25 | Invesco Emerging Markets Flexible Bond Fund |
Distribution Information
Correction notice
The following table sets forth on a per share basis the distribution that was paid in March 2019. Included in the table is a written statement of the sources of the distribution on a generally accepted accounting principles (“GAAP”) basis.
| | | Net Income | Gain from
Sale of Securities | Return of Principal | Total Distribution |
| 12/14/2018 | Class A | $0.0467 | $0.000 | $0.0180 | $0.0647 |
| 12/14/2018 | Class C | $0.0359 | $0.000 | $0.0180 | $0.0539 |
| 12/14/2018 | Class R | $0.0431 | $0.000 | $0.0180 | $0.0611 |
| 12/14/2018 | Class Y | $0.0503 | $0.000 | $0.0180 | $0.0683 |
| 12/14/2018 | Class R5 | $0.0503 | $0.000 | $0.0180 | $0.0683 |
| 12/14/2018 | Class R6 | $0.0503 | $0.000 | $0.0180 | $0.0683 |
Please note that the information in the preceding chart is for financial accounting purposes only. Shareholders should be aware that the tax treatment of distributions likely differs from GAAP treatment. Form 1099-DIV for the calendar year will report distributions for federal income tax purposes. This Notice is sent to comply with certain Securities and Exchange Commission requirements.
| 26 | Invesco Emerging Markets Flexible Bond Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | EMFB-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Emerging Markets Select Equity Fund
Nasdaq:
A: IEMAX ■ C: IEMCX ■ R: IEMRX ■ Y: IEMYX ■ R5: IEMIX ■ R6: EMEFX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 22.11% |
| Class C Shares | 21.54 |
| Class R Shares | 21.85 |
| Class Y Shares | 22.12 |
| Class R5 Shares | 22.12 |
| Class R6 Shares | 22.15 |
| MSCI EAFE Index▼ (Broad Market Index) | 7.45 |
| MSCI Emerging Markets Index▼ (Style-Specific Index) | 13.76 |
Lipper Emerging Markets Funds Index■
(Peer Group Index) | 14.61 |
| Source(s):▼RIMES Technologies Corp.;■Lipper Inc. |
The MSCI EAFE®Index is an unmanaged index considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheMSCI Emerging Markets Index is an unmanaged index considered representative of stocks of developing countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheLipper Emerging Markets Index is an unmanaged index considered representative of emerging market funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Emerging Markets Select Equity Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (5/31/11) | -1.05 |
| 5 Years | 3.86 |
| 1 Year | -9.07 |
| Class C Shares | |
| Inception (5/31/11) | -1.09 |
| 5 Years | 4.26 |
| 1 Year | -5.41 |
| Class R Shares | |
| Inception (5/31/11) | -0.62 |
| 5 Years | 4.75 |
| 1 Year | -3.96 |
| Class Y Shares | |
| Inception (5/31/11) | -0.11 |
| 5 Years | 5.31 |
| 1 Year | -3.53 |
| Class R5 Shares | |
| Inception (5/31/11) | -0.11 |
| 5 Years | 5.31 |
| 1 Year | -3.53 |
| Class R6 Shares | |
| Inception | -0.17 |
| 5 Years | 5.26 |
| 1 Year | -3.54 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.33%, 2.08%, 1.58%, 1.08%, 1.08% and 1.08%, respectively.1 The total annual Fund operating expense ratio set forth in the
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (5/31/11) | -1.45 |
| 5 Years | 3.60 |
| 1 Year | -14.25 |
| Class C Shares | |
| Inception (5/31/11) | -1.49 |
| 5 Years | 3.96 |
| 1 Year | -10.83 |
| Class R Shares | |
| Inception (5/31/11) | -1.02 |
| 5 Years | 4.44 |
| 1 Year | -9.54 |
| Class Y Shares | |
| Inception (5/31/11) | -0.51 |
| 5 Years | 5.04 |
| 1 Year | -9.07 |
| Class R5 Shares | |
| Inception (5/31/11) | -0.51 |
| 5 Years | 5.04 |
| 1 Year | -9.07 |
| Class R6 Shares | |
| Inception | -0.56 |
| 5 Years | 4.98 |
| 1 Year | -9.08 |
most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 2.03%, 2.78%, 2.28%, 1.78%, 1.55% and 1.55%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns
would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 3 | Invesco Emerging Markets Select Equity Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Emerging Markets Select Equity Fund |
Schedule of Investments
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–96.10% |
| Argentina–0.93% |
| MercadoLibre, Inc.(a) | 1,363 | $659,883 |
| Brazil–4.58% |
| Cielo S.A. | 1,080,100 | 2,115,521 |
| Itau Unibanco Holding S.A., Preference Shares | 132,950 | 1,147,050 |
| | | | 3,262,571 |
| Chile–5.56% |
| Liberty Latin America Ltd., Class C(a) | 190,029 | 3,960,204 |
| China–38.96% |
| Alibaba Group Holding Ltd., ADR(a) | 20,713 | 3,843,711 |
| China Isotope & Radiation Corp. | 603,800 | 1,604,787 |
| Focus Media Information Technology Co., Ltd., Class A | 3,782,996 | 3,425,406 |
| Gree Electric Appliances, Inc. of Zhuhai, Class A | 253,000 | 2,087,303 |
| Inner Mongolia Yili Industrial Group Co., Ltd., Class A | 155,257 | 714,429 |
| Kweichow Moutai Co., Ltd., Class A | 31,909 | 4,613,372 |
| New Oriental Education & Technology Group, Inc., ADR(a) | 13,563 | 1,294,724 |
| Ping An Insurance (Group) Co. of China Ltd., Class H | 374,500 | 4,508,914 |
| Shandong Weigao Group Medical Polymer Co. Ltd., Class H | 364,000 | 357,281 |
| Tencent Holdings Ltd. | 72,500 | 3,591,850 |
| Vipshop Holdings Ltd., ADR(a) | 197,781 | 1,702,894 |
| | | | 27,744,671 |
| Egypt–2.56% |
| Eastern Co. S.A.E. | 1,723,005 | 1,823,355 |
| India–1.54% |
| Housing Development Finance Corp. Ltd. | 38,342 | 1,099,785 |
| Indonesia–1.87% |
| PT Media Nusantara Citra Tbk | 15,896,500 | 1,048,611 |
| PT United Tractors Tbk | 146,900 | 280,141 |
| | | | 1,328,752 |
| Kenya–1.96% |
| East African Breweries Ltd. | 627,800 | 1,394,939 |
| Mexico–3.00% |
| Arca Continental S.A.B. de C.V. | 205,400 | 1,165,913 |
| Fomento Economico Mexicano, S.A.B. de C.V., ADR | 9,960 | 971,997 |
| | | | 2,137,910 |
| | Shares | Value |
| Nigeria–1.52% |
| Nigerian Breweries PLC | 6,007,225 | $1,082,383 |
| Philippines–1.60% |
| Bank of the Philippine Islands | 699,390 | 1,138,753 |
| Poland–1.16% |
| Benefit Systems S.A.(a) | 4,584 | 830,085 |
| Russia–7.72% |
| Moscow Exchange MICEX-RTS PJSC | 1,014,501 | 1,428,638 |
| Sberbank of Russia PJSC, ADR | 102,211 | 1,469,366 |
| Sberbank of Russia PJSC, ADR | 75,285 | 1,087,868 |
| Yandex N.V., Class A(a) | 40,479 | 1,515,129 |
| | | | 5,501,001 |
| South Africa–5.03% |
| Naspers Ltd., Class N | 14,016 | 3,581,257 |
| South Korea–8.07% |
| Amorepacific Corp., Preference Shares | 13,456 | 1,350,824 |
| Muhak Co., Ltd. | 93,559 | 1,089,246 |
| NAVER Corp. | 8,021 | 820,536 |
| Samsung Electronics Co., Ltd., Preference Shares | 77,988 | 2,483,546 |
| | | | 5,744,152 |
| Taiwan–4.83% |
| King Slide Works Co., Ltd. | 123,000 | 1,291,657 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 254,000 | 2,145,557 |
| | | | 3,437,214 |
| Thailand–3.62% |
| Kasikornbank PCL | 178,800 | 1,066,919 |
| Thai Beverage PCL | 2,451,200 | 1,513,865 |
| | | | 2,580,784 |
| Turkey–1.59% |
| Ulker Biskuvi Sanayi A.S. | 355,868 | 1,134,359 |
| Total Common Stocks & Other Equity Interests (Cost $67,828,831) | 68,442,058 |
| Money Market Funds–4.24% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(b) | 1,056,537 | 1,056,537 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(b) | 754,503 | 754,729 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Emerging Markets Select Equity Fund |
| | Shares | Value |
| Money Market Funds (continued)–4.24% |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(b) | 1,207,470 | $1,207,470 |
| Total Money Market Funds (Cost $3,018,672) | 3,018,736 |
| TOTAL INVESTMENTS IN SECURITIES—100.34% (Cost $70,847,503) | 71,460,794 |
| OTHER ASSETS LESS LIABILITIES–(0.34)% | (242,999) |
| NET ASSETS–100.00% | $71,217,795 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
Notes to Schedule of Investments:
| (a) | Non-income producing security. |
| (b) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Consumer Staples | 23.66% |
| Consumer Discretionary | 18.50 |
| Financials | 18.17 |
| Communication Services | 15.36 |
| Information Technology | 14.28 |
| Industrials | 2.98 |
| Health Care | 2.75 |
| Energy | 0.40 |
| Money Market Funds Plus Other Assets Less Liabilities | 3.90 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Emerging Markets Select Equity Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $67,828,831) | $68,442,058 |
| Investments in affiliated money market funds, at value (Cost $3,018,672) | 3,018,736 |
| Foreign currencies, at value (Cost $122,077) | 122,702 |
| Receivable for: | |
| Investments sold | 311,439 |
| Fund shares sold | 178,614 |
| Fund expenses absorbed | 27,538 |
| Dividends | 95,853 |
| Investment for trustee deferred compensation and retirement plans | 25,008 |
| Other assets | 59,277 |
| Total assets | 72,281,225 |
| Liabilities: | |
| Payable for: | |
| Investments purchased | 746,406 |
| Fund shares reacquired | 131,912 |
| Amount due custodian | 26,565 |
| Accrued foreign taxes | 4,641 |
| Accrued fees to affiliates | 44,275 |
| Accrued trustees’ and officers’ fees and benefits | 1,568 |
| Accrued other operating expenses | 82,240 |
| Trustee deferred compensation and retirement plans | 25,823 |
| Total liabilities | 1,063,430 |
| Net assets applicable to shares outstanding | $71,217,795 |
| Net assets consist of: | |
| Shares of beneficial interest | $70,638,621 |
| Distributable earnings | 579,174 |
| | $71,217,795 |
| Net Assets: |
| Class A | $36,445,580 |
| Class C | $7,151,160 |
| Class R | $2,945,624 |
| Class Y | $22,131,186 |
| Class R5 | $1,981,828 |
| Class R6 | $562,417 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 4,105,651 |
| Class C | 835,463 |
| Class R | 335,105 |
| Class Y | 2,486,173 |
| Class R5 | 222,631 |
| Class R6 | 63,240 |
| Class A: | |
| Net asset value per share | $8.88 |
Maximum offering price per share
(Net asset value of $8.88 ÷ 94.50%) | $9.40 |
| Class C: | |
| Net asset value and offering price per share | $8.56 |
| Class R: | |
| Net asset value and offering price per share | $8.79 |
| Class Y: | |
| Net asset value and offering price per share | $8.90 |
| Class R5: | |
| Net asset value and offering price per share | $8.90 |
| Class R6: | |
| Net asset value and offering price per share | $8.89 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Emerging Markets Select Equity Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $40,599) | $545,594 |
| Dividends from affiliated money market funds | 24,502 |
| Total investment income | 570,096 |
| Expenses: | |
| Advisory fees | 284,103 |
| Administrative services fees | 11,349 |
| Custodian fees | 37,331 |
| Distribution fees: | |
| Class A | 37,906 |
| Class C | 35,388 |
| Class R | 5,961 |
| Transfer agent fees — A, C, R and Y | 80,678 |
| Transfer agent fees — R5 | 136 |
| Transfer agent fees — R6 | 32 |
| Trustees’ and officers’ fees and benefits | 11,566 |
| Registration and filing fees | 47,813 |
| Reports to shareholders | 10,642 |
| Professional services fees | 27,566 |
| Other | 8,350 |
| Total expenses | 598,821 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (192,328) |
| Net expenses | 406,493 |
| Net investment income | 163,603 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities (net of foreign taxes of $592) | (59,191) |
| Foreign currencies | 448 |
| | (58,743) |
| Change in net unrealized appreciation of: | |
| Investment securities (net of foreign taxes of $4,641) | 11,860,946 |
| Foreign currencies | 956 |
| | 11,861,902 |
| Net realized and unrealized gain | 11,803,159 |
| Net increase in net assets resulting from operations | $11,966,762 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Emerging Markets Select Equity Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $163,603 | $410,084 |
| Net realized gain (loss) | (58,743) | 6,477,127 |
| Change in net unrealized appreciation (depreciation) | 11,861,902 | (20,187,450) |
| Net increase (decrease) in net assets resulting from operations | 11,966,762 | (13,300,239) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (1,407,508) | (26,509) |
| Class C | (359,861) | — |
| Class R | (106,717) | — |
| Class Y | (925,480) | (20,895) |
| Class R5 | (89,220) | (4,874) |
| Class R6 | (12,749) | (30) |
| Total distributions to shareholders from distributable earnings | (2,901,535) | (52,308) |
| Share transactions–net: | | |
| Class A | 4,344,111 | 10,481,220 |
| Class C | (1,151,596) | 2,454,337 |
| Class R | 504,880 | 375,244 |
| Class Y | 2,618,658 | 12,898,628 |
| Class R5 | 88,257 | 4,821 |
| Class R6 | 248,735 | 275,011 |
| Net increase in net assets resulting from share transactions | 6,653,045 | 26,489,261 |
| Net increase in net assets | 15,718,272 | 13,136,714 |
| Net assets: | | |
| Beginning of period | 55,499,523 | 42,362,809 |
| End of period | $71,217,795 | $55,499,523 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Emerging Markets Select Equity Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $7.67 | $0.02 | $1.59 | $1.61 | $(0.03) | $(0.37) | $(0.40) | $8.88 | 22.11% | $36,446 | 1.33%(d) | 1.97%(d) | 0.55%(d) | 21% |
| Year ended 10/31/18 | 9.30 | 0.07 | (1.69) | (1.62) | (0.01) | — | (0.01) | 7.67 | (17.45) | 27,580 | 1.33 | 2.03 | 0.73 | 104 |
| Year ended 10/31/17 | 7.13 | 0.03 | 2.15 | 2.18 | (0.01) | — | (0.01) | 9.30 | 30.57 | 24,297 | 1.36 | 2.45 | 0.30 | 57 |
| Year ended 10/31/16 | 6.53 | 0.02 | 0.58 | 0.60 | — | — | — | 7.13 | 9.19 | 11,855 | 1.66 | 2.59 | 0.33 | 47 |
| Year ended 10/31/15 | 7.58 | 0.02 | (1.04) | (1.02) | (0.03) | — | (0.03) | 6.53 | (13.45) | 10,516 | 1.85 | 2.58 | 0.23 | 97 |
| Year ended 10/31/14 | 7.61 | 0.06 | (0.03) | 0.03 | (0.06) | — | (0.06) | 7.58 | 0.44 | 10,654 | 1.85 | 2.57 | 0.74 | 94 |
| Class C |
| Six months ended 04/30/19 | 7.41 | (0.01) | 1.53 | 1.52 | — | (0.37) | (0.37) | 8.56 | 21.54 | 7,151 | 2.08(d) | 2.72(d) | (0.20)(d) | 21 |
| Year ended 10/31/18 | 9.04 | (0.00) | (1.63) | (1.63) | — | — | — | 7.41 | (18.03) | 7,296 | 2.08 | 2.78 | (0.02) | 104 |
| Year ended 10/31/17 | 6.97 | (0.03) | 2.10 | 2.07 | — | — | — | 9.04 | 29.70 | 6,793 | 2.11 | 3.20 | (0.45) | 57 |
| Year ended 10/31/16 | 6.43 | (0.03) | 0.57 | 0.54 | — | — | — | 6.97 | 8.40 | 3,149 | 2.41 | 3.34 | (0.42) | 47 |
| Year ended 10/31/15 | 7.49 | (0.04) | (1.02) | (1.06) | — | — | — | 6.43 | (14.15) | 2,572 | 2.60 | 3.33 | (0.52) | 97 |
| Year ended 10/31/14 | 7.55 | (0.00) | (0.03) | (0.03) | (0.03) | — | (0.03) | 7.49 | (0.40) | 2,825 | 2.60 | 3.32 | (0.01) | 94 |
| Class R |
| Six months ended 04/30/19 | 7.59 | 0.01 | 1.57 | 1.58 | (0.01) | (0.37) | (0.38) | 8.79 | 21.85 | 2,946 | 1.58(d) | 2.22(d) | 0.30(d) | 21 |
| Year ended 10/31/18 | 9.21 | 0.05 | (1.67) | (1.62) | — | — | — | 7.59 | (17.59) | 2,077 | 1.58 | 2.28 | 0.48 | 104 |
| Year ended 10/31/17 | 7.07 | 0.00 | 2.14 | 2.14 | — | — | — | 9.21 | 30.27 | 2,190 | 1.61 | 2.70 | 0.05 | 57 |
| Year ended 10/31/16 | 6.50 | 0.01 | 0.56 | 0.57 | — | — | — | 7.07 | 8.77 | 1,263 | 1.91 | 2.84 | 0.08 | 47 |
| Year ended 10/31/15 | 7.55 | (0.00) | (1.03) | (1.03) | (0.02) | — | (0.02) | 6.50 | (13.71) | 1,188 | 2.10 | 2.83 | (0.02) | 97 |
| Year ended 10/31/14 | 7.59 | 0.04 | (0.03) | 0.01 | (0.05) | — | (0.05) | 7.55 | 0.17 | 1,341 | 2.10 | 2.82 | 0.49 | 94 |
| Class Y |
| Six months ended 04/30/19 | 7.71 | 0.03 | 1.59 | 1.62 | (0.06) | (0.37) | (0.43) | 8.90 | 22.12 | 22,131 | 1.08(d) | 1.72(d) | 0.80(d) | 21 |
| Year ended 10/31/18 | 9.33 | 0.09 | (1.69) | (1.60) | (0.02) | — | (0.02) | 7.71 | (17.17) | 16,697 | 1.08 | 1.78 | 0.98 | 104 |
| Year ended 10/31/17 | 7.15 | 0.04 | 2.16 | 2.20 | (0.02) | — | (0.02) | 9.33 | 30.94 | 7,111 | 1.11 | 2.20 | 0.55 | 57 |
| Year ended 10/31/16 | 6.53 | 0.04 | 0.58 | 0.62 | — | — | — | 7.15 | 9.49 | 4,858 | 1.41 | 2.34 | 0.58 | 47 |
| Year ended 10/31/15 | 7.59 | 0.03 | (1.04) | (1.01) | (0.05) | — | (0.05) | 6.53 | (13.28) | 3,607 | 1.60 | 2.33 | 0.48 | 97 |
| Year ended 10/31/14 | 7.62 | 0.08 | (0.04) | 0.04 | (0.07) | — | (0.07) | 7.59 | 0.60 | 3,295 | 1.60 | 2.32 | 0.99 | 94 |
| Class R5 |
| Six months ended 04/30/19 | 7.71 | 0.03 | 1.59 | 1.62 | (0.06) | (0.37) | (0.43) | 8.90 | 22.12 | 1,982 | 1.08(d) | 1.46(d) | 0.80(d) | 21 |
| Year ended 10/31/18 | 9.33 | 0.09 | (1.69) | (1.60) | (0.02) | — | (0.02) | 7.71 | (17.16) | 1,623 | 1.08 | 1.55 | 0.98 | 104 |
| Year ended 10/31/17 | 7.15 | 0.04 | 2.16 | 2.20 | (0.02) | — | (0.02) | 9.33 | 30.94 | 1,960 | 1.10 | 1.91 | 0.56 | 57 |
| Year ended 10/31/16 | 6.53 | 0.04 | 0.58 | 0.62 | — | — | — | 7.15 | 9.49 | 1,497 | 1.41 | 1.99 | 0.58 | 47 |
| Year ended 10/31/15 | 7.60 | 0.03 | (1.05) | (1.02) | (0.05) | — | (0.05) | 6.53 | (13.40) | 885 | 1.60 | 1.98 | 0.48 | 97 |
| Year ended 10/31/14 | 7.62 | 0.07 | (0.02) | 0.05 | (0.07) | — | (0.07) | 7.60 | 0.74 | 896 | 1.60 | 2.02 | 0.99 | 94 |
| Class R6 |
| Six months ended 04/30/19 | 7.70 | 0.03 | 1.59 | 1.62 | (0.06) | (0.37) | (0.43) | 8.89 | 22.15 | 562 | 1.08(d) | 1.46(d) | 0.80(d) | 21 |
| Year ended 10/31/18 | 9.32 | 0.09 | (1.69) | (1.60) | (0.02) | — | (0.02) | 7.70 | (17.18) | 227 | 1.08 | 1.55 | 0.98 | 104 |
| Year ended 10/31/17 | 7.15 | 0.04 | 2.15 | 2.19 | (0.02) | — | (0.02) | 9.32 | 30.80 | 12 | 1.10 | 1.91 | 0.56 | 57 |
| Year ended 10/31/16 | 6.54 | 0.04 | 0.57 | 0.61 | — | — | — | 7.15 | 9.33 | 6,604 | 1.41 | 1.99 | 0.58 | 47 |
| Year ended 10/31/15 | 7.60 | 0.03 | (1.04) | (1.01) | (0.05) | — | (0.05) | 6.54 | (13.26) | 7,171 | 1.60 | 1.98 | 0.48 | 97 |
| Year ended 10/31/14 | 7.62 | 0.07 | (0.02) | 0.05 | (0.07) | — | (0.07) | 7.60 | 0.73 | 8,116 | 1.60 | 2.00 | 0.99 | 94 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $30,576, $7,136, $2,404, $18,945, $1,793 and $420 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.
| 10 | Invesco Emerging Markets Select Equity Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Emerging Markets Select Equity 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 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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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
| 11 | Invesco Emerging Markets Select Equity Fund |
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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, |
| 12 | Invesco Emerging Markets Select Equity Fund |
| | 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.91% |
| Next $500 million | 0.885% |
| Next $1.5 billion | 0.86% |
| Next $2.5 billion | 0.835% |
| Next $2.5 billion | 0.81% |
| Next $2.5 billion | 0.785% |
| Over $10 billion | 0.76% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.935%.
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 29, 2020, 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 1.33%, 2.08%, 1.58%, 1.08%, 1.08% and 1.08%, 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 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $111,482 and reimbursed class level expenses of $41,250, $9,628, $3,244, $25,559, $136 and $32 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration
| 13 | Invesco Emerging Markets Select Equity Fund |
agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $6,397 in front-end sales commissions from the sale of Class A shares and $278 and $1,927 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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.
| 14 | Invesco Emerging Markets Select Equity Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Argentina | $659,883 | $— | $— | $659,883 |
| Brazil | 3,262,571 | — | — | 3,262,571 |
| Chile | 3,960,204 | — | — | 3,960,204 |
| China | 24,152,821 | 3,591,850 | — | 27,744,671 |
| Egypt | 1,823,355 | — | — | 1,823,355 |
| India | 1,099,785 | — | — | 1,099,785 |
| Indonesia | 1,328,752 | — | — | 1,328,752 |
| Kenya | 1,394,939 | — | — | 1,394,939 |
| Mexico | 2,137,910 | — | — | 2,137,910 |
| Nigeria | 1,082,383 | — | — | 1,082,383 |
| Philippines | 1,138,753 | — | — | 1,138,753 |
| Poland | 830,085 | — | — | 830,085 |
| Russia | 4,031,635 | 1,469,366 | — | 5,501,001 |
| South Africa | 3,581,257 | — | — | 3,581,257 |
| South Korea | 4,393,328 | 1,350,824 | — | 5,744,152 |
| Taiwan | 1,291,657 | 2,145,557 | — | 3,437,214 |
| Thailand | 2,580,784 | — | — | 2,580,784 |
| Turkey | 1,134,359 | — | — | 1,134,359 |
| Money Market Funds | 3,018,736 | — | — | 3,018,736 |
| Total Investments | $62,903,197 | $8,557,597 | $— | $71,460,794 |
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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $997.
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
| 15 | Invesco Emerging Markets Select Equity Fund |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $14,908,520 and $12,426,936, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $5,935,129 |
| Aggregate unrealized (depreciation) of investments | (5,342,712) |
| Net unrealized appreciation of investments | $592,417 |
Cost of investments for tax purposes is $70,868,377.
| 16 | Invesco Emerging Markets Select Equity Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 766,422 | $6,431,010 | | 2,894,364 | $28,256,246 |
| Class C | 99,657 | 780,841 | | 648,178 | 6,195,402 |
| Class R | 80,192 | 658,328 | | 153,410 | 1,471,972 |
| Class Y | 672,025 | 5,505,668 | | 2,160,435 | 19,944,351 |
| Class R6 | 33,898 | 251,801 | | 32,019 | 310,085 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 185,401 | 1,353,429 | | 2,661 | 25,488 |
| Class C | 48,563 | 342,856 | | — | — |
| Class R | 14,688 | 106,339 | | — | — |
| Class Y | 119,607 | 875,525 | | 2,036 | 19,542 |
| Class R5 | 12,057 | 88,257 | | 501 | 4,821 |
| Class R6 | 1,670 | 12,209 | | — | — |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 107,089 | 863,923 | | - | - |
| Class C | (110,821) | (863,923) | | - | - |
| Reacquired: | | | | | |
| Class A | (547,258) | (4,304,251) | | (1,916,105) | (17,800,514) |
| Class C | (186,819) | (1,411,370) | | (415,101) | (3,741,065) |
| Class R | (33,494) | (259,787) | | (117,506) | (1,096,728) |
| Class Y | (471,530) | (3,762,535) | | (758,662) | (7,065,265) |
| Class R6 | (1,782) | (15,275) | | (3,855) | (35,074) |
| Net increase in share activity | 789,565 | $6,653,045 | | 2,682,375 | $26,489,261 |
| (a) | 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. |
| 17 | Invesco Emerging Markets Select Equity Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,221.10 | $7.32 | $1,018.20 | $6.66 | 1.33% |
| Class C | 1,000.00 | 1,215.40 | 11.43 | 1,014.48 | 10.39 | 2.08 |
| Class R | 1,000.00 | 1,218.50 | 8.69 | 1,016.96 | 7.90 | 1.58 |
| Class Y | 1,000.00 | 1,221.20 | 5.95 | 1,019.44 | 5.41 | 1.08 |
| Class R5 | 1,000.00 | 1,221.20 | 5.95 | 1,019.44 | 5.41 | 1.08 |
| Class R6 | 1,000.00 | 1,221.50 | 5.95 | 1,019.44 | 5.41 | 1.08 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 18 | Invesco Emerging Markets Select Equity Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | EME-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Endeavor Fund
Nasdaq:
A: ATDAX ■ C: ATDCX ■ R: ATDRX ■ Y: ATDYX ■ R5: ATDIX ■ R6: ATDFX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 7.70% |
| Class C Shares | 7.30 |
| Class R Shares | 7.58 |
| Class Y Shares | 7.83 |
| Class R5 Shares | 7.85 |
| Class R6 Shares | 7.90 |
| S&P 500 Index▼ (Broad Market Index) | 9.76 |
Russell Midcap Index■
(Style-Specific Index) | 11.65 |
Lipper Mid-Cap Core Funds Index♦
(Peer Group Index) | 8.74 |
| Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
TheS&P 500® Index is an unmanaged index considered representative of the US stock market.
TheRussell Midcap® Index is an unmanaged index considered representative of mid-cap stocks. The Russell Midcap Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
TheLipper Mid-Cap Core Funds Indexis an unmanaged index considered representative of mid-cap core funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (11/04/03) | 8.68% |
| 10 Years | 12.47 |
| 5 Years | 4.31 |
| 1 Year | –3.55 |
| Class C Shares | |
| Inception (11/4/03) | 8.56% |
| 10 Years | 12.26 |
| 5 Years | 4.71 |
| 1 Year | 0.35 |
| Class R Shares | |
| Inception (4/30/04) | 8.51% |
| 10 Years | 12.83 |
| 5 Years | 5.24 |
| 1 Year | 1.81 |
| Class Y Shares | |
| Inception (10/3/08) | 11.11% |
| 10 Years | 13.39 |
| 5 Years | 5.76 |
| 1 Year | 2.29 |
| Class R5 Shares | |
| Inception (4/30/04) | 9.26% |
| 10 Years | 13.58 |
| 5 Years | 5.88 |
| 1 Year | 2.37 |
| Class R6 Shares | |
| 10 Years | 13.45% |
| 5 Years | 5.98 |
| 1 Year | 2.46 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C,
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (11/04/03) | 8.52% |
| 10 Years | 14.91 |
| 5 Years | 3.55 |
| 1 Year | –6.75 |
| Class C Shares | |
| Inception (11/4/03) | 8.41% |
| 10 Years | 14.71 |
| 5 Years | 3.95 |
| 1 Year | –2.97 |
| Class R Shares | |
| Inception (4/30/04) | 8.35% |
| 10 Years | 15.29 |
| 5 Years | 4.47 |
| 1 Year | –1.53 |
| Class Y Shares | |
| Inception (10/3/08) | 10.90% |
| 10 Years | 15.86 |
| 5 Years | 4.99 |
| 1 Year | –1.06 |
| Class R5 Shares | |
| Inception (4/30/04) | 9.10% |
| 10 Years | 16.06 |
| 5 Years | 5.12 |
| 1 Year | –0.98 |
| Class R6 Shares | |
| 10 Years | 15.91% |
| 5 Years | 5.21 |
| 1 Year | –0.88 |
Class R, Class Y, Class R5 and Class R6 shares was 1.34%, 2.09%, 1.59%, 1.09%, 0.99% and 0.91%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.36%, 2.11%, 1.61%, 1.11%, 1.01% and 0.93%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or
a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–92.47% |
| Aerospace & Defense–2.09% |
| Northrop Grumman Corp. | 12,797 | $3,709,978 |
| Agricultural & Farm Machinery–3.20% |
| Deere & Co. | 34,190 | 5,662,890 |
| Airlines–4.68% |
| Ryanair Holdings PLC ADR (Ireland)(b) | 69,961 | 5,431,772 |
| Spirit Airlines, Inc.(b) | 52,530 | 2,856,581 |
| | | | 8,288,353 |
| Apparel Retail–3.25% |
| Ross Stores, Inc. | 58,882 | 5,750,416 |
| Application Software–6.99% |
| CDK Global, Inc. | 109,011 | 6,575,544 |
| Open Text Corp. (Canada) | 151,076 | 5,808,872 |
| | | | 12,384,416 |
| Asset Management & Custody Banks–4.93% |
| Affiliated Managers Group, Inc. | 78,655 | 8,724,413 |
| Automotive Retail–6.61% |
| AutoZone, Inc.(b) | 4,415 | 4,539,989 |
| CarMax, Inc.(b) | 91,970 | 7,160,784 |
| | | | 11,700,773 |
| Construction & Engineering–1.25% |
| Orion Group Holdings, Inc.(b) | 853,890 | 2,211,575 |
| Construction Machinery & Heavy Trucks–3.32% |
| REV Group, Inc. | 463,529 | 5,882,183 |
| Consumer Finance–3.14% |
| Encore Capital Group, Inc.(b) | 197,111 | 5,570,357 |
| Data Processing & Outsourced Services–2.18% |
| Alliance Data Systems Corp. | 24,158 | 3,867,696 |
| Diversified Banks–2.28% |
| Bank of America Corp. | 131,850 | 4,031,973 |
| Environmental & Facilities Services–3.97% |
| Stericycle, Inc.(b) | 120,389 | 7,029,514 |
| Health Care Distributors–2.80% |
| McKesson Corp. | 41,571 | 4,957,342 |
| Health Care Equipment–2.28% |
| Zimmer Biomet Holdings, Inc. | 32,777 | 4,036,815 |
| | Shares | Value |
| Industrial Conglomerates–4.29% |
| DCC PLC (United Kingdom) | 84,998 | $7,599,801 |
| IT Consulting & Other Services–4.17% |
| Cognizant Technology Solutions Corp., Class A | 101,221 | 7,385,084 |
| Life & Health Insurance–3.08% |
| Unum Group | 147,531 | 5,446,844 |
| Managed Health Care–4.18% |
| UnitedHealth Group, Inc. | 31,733 | 7,396,010 |
| Oil & Gas Exploration & Production–3.13% |
| Devon Energy Corp. | 172,236 | 5,535,665 |
| Real Estate Operating Companies–6.82% |
| Brookfield Property Partners L.P. | 578,761 | 12,078,742 |
| Research & Consulting Services–3.18% |
| Nielsen Holdings PLC | 220,283 | 5,623,825 |
| Specialty Chemicals–3.06% |
| Axalta Coating Systems Ltd.(b) | 200,931 | 5,421,118 |
| Systems Software–2.77% |
| Check Point Software Technologies Ltd. (Israel)(b) | 40,587 | 4,901,286 |
| Trading Companies & Distributors–4.82% |
| Grafton Group PLC (United Kingdom)(c) | 273,481 | 3,145,382 |
| Titan Machinery, Inc.(b) | 313,847 | 5,398,169 |
| | | | 8,543,551 |
| Total Common Stocks & Other Equity Interests (Cost $128,542,197) | 163,740,620 |
|
| Money Market Funds–7.45% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d) | 4,615,852 | 4,615,852 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d) | 3,295,808 | 3,296,797 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(d) | 5,275,260 | 5,275,260 |
| Total Money Market Funds (Cost $13,187,689) | 13,187,909 |
| TOTAL INVESTMENTS IN SECURITIES–99.92% (Cost $141,729,886) | 176,928,529 |
| OTHER ASSETS LESS LIABILITIES–0.08% | 145,055 |
| NET ASSETS–100.00% | $177,073,584 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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) | Each unit represents one ordinary share, seventeen Class A shares and one Class C share. |
| (d) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Industrials | 30.80% |
| Information Technology | 16.11 |
| Financials | 13.43 |
| Consumer Discretionary | 9.86 |
| Health Care | 9.26 |
| Real Estate | 6.82 |
| Energy | 3.13 |
| Materials | 3.06 |
| Money Market Funds Plus Other Assets Less Liabilities | 7.53 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $128,542,197) | $163,740,620 |
| Investments in affiliated money market funds, at value (Cost $13,187,689) | 13,187,909 |
| Foreign currencies, at value (Cost $187) | 185 |
| Receivable for: | |
| Investments sold | 458,667 |
| Fund shares sold | 46,353 |
| Dividends | 156,298 |
| Investment for trustee deferred compensation and retirement plans | 72,123 |
| Other assets | 35,162 |
| Total assets | 177,697,317 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 239,683 |
| Amount due custodian | 111,346 |
| Accrued fees to affiliates | 127,352 |
| Accrued trustees’ and officers’ fees and benefits | 1,686 |
| Accrued other operating expenses | 63,627 |
| Trustee deferred compensation and retirement plans | 80,039 |
| Total liabilities | 623,733 |
| Net assets applicable to shares outstanding | $177,073,584 |
| Net assets consist of: | |
| Shares of beneficial interest | $136,826,179 |
| Distributable earnings | 40,247,405 |
| | $177,073,584 |
| Net Assets: |
| Class A | $121,156,555 |
| Class C | $14,903,372 |
| Class R | $9,701,610 |
| Class Y | $25,402,799 |
| Class R5 | $4,655,582 |
| Class R6 | $1,253,666 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 6,499,844 |
| Class C | 943,949 |
| Class R | 545,706 |
| Class Y | 1,314,775 |
| Class R5 | 233,077 |
| Class R6 | 62,340 |
| Class A: | |
| Net asset value per share | $18.64 |
Maximum offering price per share
(Net asset value of $18.64 ÷ 94.50%) | $19.72 |
| Class C: | |
| Net asset value and offering price per share | $15.79 |
| Class R: | |
| Net asset value and offering price per share | $17.78 |
| Class Y: | |
| Net asset value and offering price per share | $19.32 |
| Class R5: | |
| Net asset value and offering price per share | $19.97 |
| Class R6: | |
| Net asset value and offering price per share | $20.11 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $8,873) | $1,406,665 |
| Dividends from affiliated money market funds | 122,086 |
| Total investment income | 1,528,751 |
| Expenses: | |
| Advisory fees | 663,232 |
| Administrative services fees | 16,679 |
| Custodian fees | 3,098 |
| Distribution fees: | |
| Class A | 145,840 |
| Class C | 91,147 |
| Class R | 23,982 |
| Transfer agent fees — A, C, R and Y | 200,591 |
| Transfer agent fees — R5 | 2,552 |
| Transfer agent fees — R6 | 696 |
| Trustees’ and officers’ fees and benefits | 12,481 |
| Registration and filing fees | 43,021 |
| Reports to shareholders | 17,677 |
| Professional services fees | 25,563 |
| Other | 10,975 |
| Total expenses | 1,257,534 |
| Less: Fees waived and expense offset arrangement(s) | (7,773) |
| Net expenses | 1,249,761 |
| Net investment income | 278,990 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | 6,396,215 |
| Foreign currencies | (3,706) |
| | 6,392,509 |
| Change in net unrealized appreciation of: | |
| Investment securities | 6,115,239 |
| Foreign currencies | 71 |
| | 6,115,310 |
| Net realized and unrealized gain | 12,507,819 |
| Net increase in net assets resulting from operations | $12,786,809 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $278,990 | $246,729 |
| Net realized gain | 6,392,509 | 10,210,474 |
| Change in net unrealized appreciation (depreciation) | 6,115,310 | (17,533,830) |
| Net increase (decrease) in net assets resulting from operations | 12,786,809 | (7,076,627) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (6,472,601) | (3,714,684) |
| Class B | — | (17,894) |
| Class C | (1,491,159) | (970,910) |
| Class R | (580,920) | (405,139) |
| Class Y | (1,588,510) | (998,009) |
| Class R5 | (288,438) | (569,252) |
| Class R6 | (80,613) | (53,908) |
| Total distributions to shareholders from distributable earnings | (10,502,241) | (6,729,796) |
| Share transactions–net: | | |
| Class A | 2,664,037 | (7,883,151) |
| Class B | — | (662,373) |
| Class C | (8,043,379) | (5,977,107) |
| Class R | (460,814) | (3,578,420) |
| Class Y | (5,430,213) | (4,207,378) |
| Class R5 | (2,159,431) | (15,459,641) |
| Class R6 | (312,967) | (420,656) |
| Net increase (decrease) in net assets resulting from share transactions | (13,742,767) | (38,188,726) |
| Net increase (decrease) in net assets | (11,458,199) | (51,995,149) |
| Net assets: | | |
| Beginning of period | 188,531,783 | 240,526,932 |
| End of period | $177,073,584 | $188,531,783 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $18.42 | $0.03 | $1.23 | $1.26 | $— | $(1.04) | $(1.04) | $18.64 | 7.70% | $121,157 | 1.36%(d) | 1.37%(d) | 0.36%(d) | 8% |
| Year ended 10/31/18 | 19.81 | 0.03 | (0.88) | (0.85) | — | (0.54) | (0.54) | 18.42 | (4.48) | 116,080 | 1.32 | 1.34 | 0.14 | 34 |
| Year ended 10/31/17 | 17.19 | (0.03) | 4.57 | 4.54 | — | (1.92) | (1.92) | 19.81 | 27.44 | 132,670 | 1.34 | 1.36 | (0.13) | 19 |
| Year ended 10/31/16 | 19.30 | (0.02) | 0.21 | 0.19 | — | (2.30) | (2.30) | 17.19 | 2.08 | 115,588 | 1.34 | 1.36 | (0.12) | 28 |
| Year ended 10/31/15 | 22.57 | (0.01) | (1.25) | (1.26) | — | (2.01) | (2.01) | 19.30 | (5.80) | 147,504 | 1.26 | 1.29 | (0.04) | 27 |
| Year ended 10/31/14 | 21.18 | (0.09) | 2.35 | 2.26 | (0.01) | (0.86) | (0.87) | 22.57 | 11.13 | 192,326 | 1.26 | 1.29 | (0.43) | 27 |
| Class C |
| Six months ended 04/30/19 | 15.83 | (0.03) | 1.03 | 1.00 | — | (1.04) | (1.04) | 15.79 | 7.30 | 14,903 | 2.11(d) | 2.12(d) | (0.39)(d) | 8 |
| Year ended 10/31/18 | 17.22 | (0.11) | (0.74) | (0.85) | — | (0.54) | (0.54) | 15.83 | (5.18) | 23,490 | 2.07 | 2.09 | (0.61) | 34 |
| Year ended 10/31/17 | 15.26 | (0.15) | 4.03 | 3.88 | — | (1.92) | (1.92) | 17.22 | 26.52 | 31,548 | 2.09 | 2.11 | (0.88) | 19 |
| Year ended 10/31/16 | 17.53 | (0.13) | 0.16 | 0.03 | — | (2.30) | (2.30) | 15.26 | 1.27 | 30,857 | 2.09 | 2.11 | (0.87) | 28 |
| Year ended 10/31/15 | 20.83 | (0.15) | (1.14) | (1.29) | — | (2.01) | (2.01) | 17.53 | (6.49) | 42,965 | 2.01 | 2.04 | (0.79) | 27 |
| Year ended 10/31/14 | 19.75 | (0.24) | 2.18 | 1.94 | — | (0.86) | (0.86) | 20.83 | 10.27 | 53,542 | 2.01 | 2.04 | (1.18) | 27 |
| Class R |
| Six months ended 04/30/19 | 17.64 | 0.01 | 1.17 | 1.18 | — | (1.04) | (1.04) | 17.78 | 7.58 | 9,702 | 1.61(d) | 1.62(d) | 0.11(d) | 8 |
| Year ended 10/31/18 | 19.04 | (0.02) | (0.84) | (0.86) | — | (0.54) | (0.54) | 17.64 | (4.72) | 10,070 | 1.57 | 1.59 | (0.11) | 34 |
| Year ended 10/31/17 | 16.62 | (0.07) | 4.41 | 4.34 | — | (1.92) | (1.92) | 19.04 | 27.16 | 14,449 | 1.59 | 1.61 | (0.38) | 19 |
| Year ended 10/31/16 | 18.78 | (0.06) | 0.20 | 0.14 | — | (2.30) | (2.30) | 16.62 | 1.83 | 17,469 | 1.59 | 1.61 | (0.37) | 28 |
| Year ended 10/31/15 | 22.08 | (0.06) | (1.23) | (1.29) | — | (2.01) | (2.01) | 18.78 | (6.09) | 24,855 | 1.51 | 1.54 | (0.29) | 27 |
| Year ended 10/31/14 | 20.77 | (0.14) | 2.31 | 2.17 | — | (0.86) | (0.86) | 22.08 | 10.89 | 34,634 | 1.51 | 1.54 | (0.68) | 27 |
| Class Y |
| Six months ended 04/30/19 | 19.03 | 0.05 | 1.28 | 1.33 | — | (1.04) | (1.04) | 19.32 | 7.83 | 25,403 | 1.11(d) | 1.12(d) | 0.61(d) | 8 |
| Year ended 10/31/18 | 20.40 | 0.08 | (0.91) | (0.83) | — | (0.54) | (0.54) | 19.03 | (4.25) | 30,604 | 1.07 | 1.09 | 0.39 | 34 |
| Year ended 10/31/17 | 17.61 | 0.02 | 4.69 | 4.71 | — | (1.92) | (1.92) | 20.40 | 27.77 | 37,034 | 1.09 | 1.11 | 0.12 | 19 |
| Year ended 10/31/16 | 19.66 | 0.02 | 0.23 | 0.25 | — | (2.30) | (2.30) | 17.61 | 2.37 | 19,938 | 1.09 | 1.11 | 0.13 | 28 |
| Year ended 10/31/15 | 22.91 | 0.04 | (1.28) | (1.24) | — | (2.01) | (2.01) | 19.66 | (5.61) | 40,425 | 1.01 | 1.04 | 0.21 | 27 |
| Year ended 10/31/14 | 21.48 | (0.04) | 2.38 | 2.34 | (0.05) | (0.86) | (0.91) | 22.91 | 11.39 | 71,898 | 1.01 | 1.04 | (0.18) | 27 |
| Class R5 |
| Six months ended 04/30/19 | 19.63 | 0.07 | 1.31 | 1.38 | — | (1.04) | (1.04) | 19.97 | 7.85 | 4,656 | 0.98(d) | 0.99(d) | 0.74(d) | 8 |
| Year ended 10/31/18 | 21.00 | 0.10 | (0.93) | (0.83) | — | (0.54) | (0.54) | 19.63 | (4.13) | 6,762 | 0.97 | 0.99 | 0.49 | 34 |
| Year ended 10/31/17 | 18.06 | 0.05 | 4.81 | 4.86 | — | (1.92) | (1.92) | 21.00 | 27.92 | 22,158 | 0.96 | 0.98 | 0.25 | 19 |
| Year ended 10/31/16 | 20.08 | 0.05 | 0.23 | 0.28 | — | (2.30) | (2.30) | 18.06 | 2.49 | 21,192 | 0.94 | 0.96 | 0.28 | 28 |
| Year ended 10/31/15 | 23.32 | 0.07 | (1.30) | (1.23) | — | (2.01) | (2.01) | 20.08 | (5.46) | 33,854 | 0.89 | 0.92 | 0.33 | 27 |
| Year ended 10/31/14 | 21.84 | (0.02) | 2.43 | 2.41 | (0.07) | (0.86) | (0.93) | 23.32 | 11.51 | 49,356 | 0.90 | 0.93 | (0.07) | 27 |
| Class R6 |
| Six months ended 04/30/19 | 19.75 | 0.07 | 1.33 | 1.40 | — | (1.04) | (1.04) | 20.11 | 7.90 | 1,254 | 0.97(d) | 0.98(d) | 0.75(d) | 8 |
| Year ended 10/31/18 | 21.11 | 0.12 | (0.94) | (0.82) | — | (0.54) | (0.54) | 19.75 | (4.06) | 1,526 | 0.89 | 0.91 | 0.57 | 34 |
| Year ended 10/31/17 | 18.13 | 0.07 | 4.83 | 4.90 | — | (1.92) | (1.92) | 21.11 | 28.04 | 2,038 | 0.88 | 0.90 | 0.33 | 19 |
| Year ended 10/31/16 | 20.13 | 0.06 | 0.24 | 0.30 | — | (2.30) | (2.30) | 18.13 | 2.59 | 50,645 | 0.85 | 0.87 | 0.37 | 28 |
| Year ended 10/31/15 | 23.35 | 0.09 | (1.30) | (1.21) | — | (2.01) | (2.01) | 20.13 | (5.36) | 91,275 | 0.80 | 0.83 | 0.42 | 27 |
| Year ended 10/31/14 | 21.86 | 0.01 | 2.42 | 2.43 | (0.08) | (0.86) | (0.94) | 23.35 | 11.62 | 100,410 | 0.81 | 0.84 | 0.02 | 27 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $117,639, $18,380, $9,672, $27,181, $5,148 and $1,504 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.
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Endeavor 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 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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, |
| | interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.745% |
| Next $250 million | 0.730% |
| Next $500 million | 0.715% |
| Next $1.5 billion | 0.700% |
| Next $2.5 billion | 0.685% |
| Next $2.5 billion | 0.670% |
| Next $2.5 billion | 0.655% |
| Over $10 billion | 0.640% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.745%.
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 contractually agreed, through at least June 30, 2020, 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 2.00%, 2.75%, 2.25%, 1.75%, 1.75% and 1.75%, 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 June 30, 2020. 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $5,806.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the
course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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, Investor Class, 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, Class R and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IDI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class shares. The fees are accrued daily and paid monthly. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six monthsended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $7,816 in front-end sales commissions from the sale of Class A shares and $2,246 and $470 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $156,140,819 | $7,599,801 | $— | $163,740,620 |
| Money Market Funds | 13,187,909 | — | — | 13,187,909 |
| Total Investments | $169,328,728 | $7,599,801 | $— | $176,928,529 |
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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,967.
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $13,870,130 and $36,835,918, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $40,412,491 |
| Aggregate unrealized (depreciation) of investments | (6,558,202) |
| Net unrealized appreciation of investments | $33,854,289 |
Cost of investments for tax purposes is $143,074,240.
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 773,446 | $13,736,703 | | 981,490 | $19,603,323 |
| Class B(b) | — | — | | 225 | 4,018 |
| Class C | 36,582 | 532,862 | | 105,922 | 1,841,025 |
| Class R | 94,713 | 1,597,116 | | 118,043 | 2,267,283 |
| Class Y | 74,001 | 1,341,306 | | 457,325 | 9,458,463 |
| Class R5 | 14,343 | 265,344 | | 140,568 | 2,995,624 |
| Class R6 | 6,987 | 132,583 | | 64,077 | 1,378,578 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 381,674 | 6,175,482 | | 180,366 | 3,600,097 |
| Class B(b) | — | — | | 1,018 | 17,563 |
| Class C | 102,251 | 1,404,937 | | 53,635 | 926,282 |
| Class R | 37,229 | 575,183 | | 21,115 | 404,560 |
| Class Y | 86,020 | 1,441,688 | | 42,480 | 874,239 |
| Class R5 | 16,460 | 284,922 | | 26,729 | 566,931 |
| Class R6 | 4,582 | 79,870 | | 2,510 | 53,507 |
| Conversion of Class B shares to Class A shares:(c) | | | | | |
| Class A | — | — | | 29,185 | 617,254 |
| Class B | — | — | | (33,929) | (617,254) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 342,647 | 5,945,792 | | - | - |
| Class C | (403,737) | (5,945,792) | | - | - |
| Reacquired: | | | | | |
| Class A | (1,298,511) | (23,193,940) | | (1,587,752) | (31,703,825) |
| Class B(b) | — | — | | (3,851) | (66,700) |
| Class C | (274,718) | (4,035,386) | | (507,719) | (8,744,414) |
| Class R | (156,959) | (2,633,113) | | (327,321) | (6,250,263) |
| Class Y | (453,140) | (8,213,207) | | (707,471) | (14,540,080) |
| Class R5 | (142,249) | (2,709,697) | | (877,735) | (19,022,196) |
| Class R6 | (26,467) | (525,420) | | (85,901) | (1,852,741) |
| Net increase (decrease) in share activity | (784,846) | $(13,742,767) | | (1,906,991) | $(38,188,726) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 33% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| (b) | Class B shares activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| (c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,077.00 | $7.00 | $1,018.05 | $6.80 | 1.36% |
| Class C | 1,000.00 | 1,073.00 | 10.85 | 1,014.33 | 10.54 | 2.11 |
| Class R | 1,000.00 | 1,075.80 | 8.29 | 1,016.81 | 8.05 | 1.61 |
| Class Y | 1,000.00 | 1,078.30 | 5.72 | 1,019.29 | 5.56 | 1.11 |
| Class R5 | 1,000.00 | 1,078.50 | 5.05 | 1,019.93 | 4.91 | 0.98 |
| Class R6 | 1,000.00 | 1,079.00 | 5.00 | 1,019.98 | 4.86 | 0.97 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | END-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Global Infrastructure Fund
Nasdaq:
A: GIZAX ■ C: GIZCX ■ R: GIZRX ■ Y: GIZYX ■ R5: GIZFX ■ R6: GIZSX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 12.26% |
| Class C Shares | 11.87 |
| Class R Shares | 12.02 |
| Class Y Shares | 12.39 |
| Class R5 Shares | 12.39 |
| Class R6 Shares | 12.39 |
| MSCI World Index▼ (Broad Market Index) | 8.83 |
| Dow Jones Brookfield Global Infrastructure Index▼ (Style-Specific Index) | 12.57 |
Lipper Global Infrastructure Funds Classification Average■
(Peer Group) | 12.60 |
| Source(s):▼RIMES Technologies Corp.;■ Lipper Inc. |
TheMSCI World Indexis an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheDow Jones Brookfield Global Infrastructure Index is designed to measure the stock performance of infrastructure companies domiciled globally and covers all sectors of the infrastructure market. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheLipper Global Infrastructure Funds Classification Average represents an average of all of the funds in the Lipper Global Infrastructure Funds classification.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Global Infrastructure Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (5/2/14) | 3.40% |
| 1 Year | 5.16 |
| Class C Shares | |
| Inception (5/2/14) | 3.79% |
| 1 Year | 9.46 |
| Class R Shares | |
| Inception (5/2/14) | 4.31% |
| 1 Year | 11.00 |
| Class Y Shares | |
| Inception (5/2/14) | 4.84% |
| 1 Year | 11.64 |
| Class R5 Shares | |
| Inception (5/2/14) | 4.84% |
| 1 Year | 11.64 |
| Class R6 Shares | |
| Inception (5/2/14) | 4.84% |
| 1 Year | 11.64 |
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.28%, 2.03%, 1.53%, 1.03%, 1.03% and 1.03%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 2.35%, 3.10%, 2.60%, 2.10%, 1.97% and 1.97%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (5/2/14) | 3.23% |
| 1 Year | 5.50 |
| Class C Shares | |
| Inception (5/2/14) | 3.63% |
| 1 Year | 9.68 |
| Class R Shares | |
| Inception (5/2/14) | 4.15% |
| 1 Year | 11.22 |
| Class Y Shares | |
| Inception (5/2/14) | 4.67% |
| 1 Year | 11.88 |
| Class R5 Shares | |
| Inception (5/2/14) | 4.67% |
| 1 Year | 11.77 |
| Class R6 Shares | |
| Inception (5/2/14) | 4.67% |
| 1 Year | 11.88 |
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 3 | Invesco Global Infrastructure Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Global Infrastructure Fund |
Schedule of Investments
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–98.81% |
| Australia–4.57% |
| APA Group | 22,859 | $155,021 |
| Atlas Arteria Ltd. | 48,516 | 239,410 |
| Sydney Airport | 25,614 | 137,591 |
| Transurban Group | 36,864 | 349,269 |
| | | | 881,291 |
| Belgium–0.28% |
| Elia System Operator S.A./N.V. | 795 | 53,589 |
| Brazil–0.16% |
| Cia de Saneamento Basico Do Estado de Sao Paulo, ADR | 2,631 | 31,467 |
| Canada–14.27% |
| Enbridge, Inc. | 19,106 | 705,797 |
| Fortis, Inc. | 5,830 | 215,497 |
| Inter Pipeline Ltd. | 15,457 | 251,752 |
| Keyera Corp. | 9,035 | 208,796 |
| Pembina Pipeline Corp. | 3,621 | 129,466 |
| TransCanada Corp. | 26,053 | 1,243,434 |
| | | | 2,754,742 |
| China–3.33% |
| Beijing Enterprises Water Group Ltd.(a) | 188,000 | 116,709 |
| China Merchants Port Holdings Co. Ltd. | 24,000 | 48,460 |
| China Resources Gas Group Ltd. | 20,000 | 92,545 |
| China Tower Corp. Ltd., Class H, REGS(b) | 822,000 | 222,140 |
| COSCO SHIPPING Ports Ltd. | 36,000 | 35,886 |
| Shenzhen Expressway Co. Ltd., Class H | 62,000 | 75,477 |
| Yuexiu Transport Infrastructure Ltd. | 64,000 | 52,131 |
| | | | 643,348 |
| Denmark–0.42% |
| Orsted A/S, REGS(b) | 1,049 | 80,310 |
| France–4.84% |
| Aeroports de Paris | 1,056 | 215,089 |
| Getlink S.E. | 8,461 | 136,462 |
| Vinci S.A. | 5,757 | 582,655 |
| | | | 934,206 |
| Germany–0.61% |
| Hamburger Hafen und Logistik AG | 4,647 | 116,921 |
| Hong Kong–3.30% |
| China Gas Holdings Ltd. | 68,600 | 220,802 |
| China Water Affairs Group Ltd. | 138,000 | 141,962 |
| Hong Kong & China Gas Co., Ltd. (The) | 115,100 | 274,451 |
| | | | 637,215 |
| | Shares | Value |
| Italy–5.01% |
| Atlantia S.p.A. | 19,698 | $537,309 |
| Infrastrutture Wireless Italiane S.p.A., REGS(b) | 21,079 | 174,814 |
| Italgas S.p.A. | 19,757 | 123,376 |
| Terna - Rete Elettrica Nazionale S.p.A. | 21,863 | 131,064 |
| | | | 966,563 |
| Japan–1.10% |
| Japan Airport Terminal Co., Ltd. | 1,300 | 54,445 |
| Tokyo Gas Co., Ltd. | 3,000 | 76,266 |
| West Japan Railway Co. | 1,100 | 81,849 |
| | | | 212,560 |
| Luxembourg–1.40% |
| SES S.A. | 15,909 | 270,687 |
| Mexico–0.89% |
| Grupo Aeroportuario del Sureste S.A.B. de C.V., ADR | 641 | 105,477 |
| Promotora y Operadora de Infraestructura S.A.B de C.V. | 6,610 | 67,237 |
| | | | 172,714 |
| Netherlands–0.81% |
| InterXion Holding N.V.(a) | 2,252 | 155,816 |
| New Zealand–0.47% |
| Auckland International Airport Ltd. | 16,976 | 90,366 |
| Spain–5.82% |
| Aena SME, S.A., REGS(b) | 628 | 116,748 |
| Atlantica Yield PLC | 8,437 | 172,874 |
| Cellnex Telecom S.A., REGS(a)(b) | 8,844 | 271,991 |
| Ferrovial, S.A. | 22,788 | 561,276 |
| | | | 1,122,889 |
| United Kingdom–6.26% |
| National Grid PLC | 56,512 | 617,327 |
| Pennon Group PLC | 18,456 | 180,163 |
| Severn Trent PLC | 11,534 | 306,221 |
| United Utilities Group PLC | 9,653 | 104,325 |
| | | | 1,208,036 |
| United States–45.27% |
| American Tower Corp. | 6,147 | 1,200,509 |
| American Water Works Co., Inc. | 910 | 98,453 |
| Aqua America, Inc. | 19,647 | 767,412 |
| Atmos Energy Corp. | 2,736 | 280,002 |
| Avangrid, Inc. | 6,943 | 355,551 |
| CenterPoint Energy, Inc. | 10,126 | 313,906 |
| Cheniere Energy, Inc.(a) | 9,936 | 639,382 |
| CMS Energy Corp. | 1,902 | 105,656 |
| Consolidated Edison, Inc. | 2,849 | 245,470 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Global Infrastructure Fund |
| | Shares | Value |
| United States–(continued) |
| Crown Castle International Corp. | 8,991 | $1,130,888 |
| Edison International | 8,786 | 560,283 |
| EnLink Midstream LLC(a) | 4,183 | 48,899 |
| Kinder Morgan, Inc. | 11,124 | 221,034 |
| ONEOK, Inc. | 9,512 | 646,150 |
| SBA Communications Corp., Class A(a) | 1,846 | 376,085 |
| Sempra Energy | 5,682 | 727,012 |
| Southwest Gas Holdings, Inc. | 1,836 | 152,737 |
| Targa Resources Corp. | 1,706 | 68,496 |
| Williams Cos., Inc. (The) | 28,284 | 801,286 |
| | | | 8,739,211 |
| Total Common Stocks & Other Equity Interests (Cost $16,322,459) | 19,071,931 |
| | Shares | Value |
| Money Market Funds–0.74% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(c) | 49,323 | $49,323 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(c) | 37,810 | 37,822 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(c) | 56,369 | 56,369 |
| Total Money Market Funds (Cost $143,508) | 143,514 |
| TOTAL INVESTMENTS IN SECURITIES—99.55% (Cost $16,465,967) | 19,215,445 |
| OTHER ASSETS LESS LIABILITIES–0.45% | 87,001 |
| NET ASSETS–100.00% | $19,302,446 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| REGS | – Regulation S |
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 April 30, 2019 was $866,003, which represented 4.49% of the Fund’s Net Assets. |
| (c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
Portfolio Composition
By Infrastructure Sector, based on Net Assets
as of April 30, 2019
| Midstream Services | 25.72% |
| Towers | 17.49 |
| Gas Distribution | 13.07 |
| Electric Utilities | 11.29 |
| Water | 9.05 |
| Tolls | 6.84 |
| Diversified | 5.93 |
| Airports | 3.73 |
| Infrastructure Sectors each less than 2.0% of net assets | 5.69 |
| Money Market Funds Plus Other Assets Less Liabilities | 1.19 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Global Infrastructure Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $16,322,459) | $19,071,931 |
| Investments in affiliated money market funds, at value (Cost $143,508) | 143,514 |
| Cash | 5,818 |
| Foreign currencies, at value (Cost $82,479) | 82,522 |
| Receivable for: | |
| Fund shares sold | 55,771 |
| Dividends | 20,327 |
| Investment for trustee deferred compensation and retirement plans | 11,445 |
| Other assets | 50,266 |
| Total assets | 19,441,594 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 55,436 |
| Accrued fees to affiliates | 4,424 |
| Accrued trustees’ and officers’ fees and benefits | 1,481 |
| Accrued other operating expenses | 66,363 |
| Trustee deferred compensation and retirement plans | 11,444 |
| Total liabilities | 139,148 |
| Net assets applicable to shares outstanding | $19,302,446 |
| Net assets consist of: | |
| Shares of beneficial interest | $17,204,143 |
| Distributable earnings | 2,098,303 |
| | $19,302,446 |
| Net Assets: |
| Class A | $7,042,450 |
| Class C | $1,206,872 |
| Class R | $463,944 |
| Class Y | $10,361,017 |
| Class R5 | $11,168 |
| Class R6 | $216,995 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 631,500 |
| Class C | 108,462 |
| Class R | 41,636 |
| Class Y | 928,787 |
| Class R5 | 1,001 |
| Class R6 | 19,453 |
| Class A: | |
| Net asset value per share | $11.15 |
Maximum offering price per share
(Net asset value of $11.15 ÷ 94.50%) | $11.80 |
| Class C: | |
| Net asset value and offering price per share | $11.13 |
| Class R: | |
| Net asset value and offering price per share | $11.14 |
| Class Y: | |
| Net asset value and offering price per share | $11.16 |
| Class R5: | |
| Net asset value and offering price per share | $11.16 |
| Class R6: | |
| Net asset value and offering price per share | $11.16 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Global Infrastructure Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $20,069) | $280,976 |
| Dividends from affiliated money market funds | 2,206 |
| Total investment income | 283,182 |
| Expenses: | |
| Advisory fees | 77,401 |
| Administrative services fees | 9,211 |
| Custodian fees | 8,345 |
| Distribution fees: | |
| Class A | 8,635 |
| Class C | 6,284 |
| Class R | 984 |
| Transfer agent fees — A, C, R and Y | 16,305 |
| Transfer agent fees — R5 | 4 |
| Transfer agent fees — R6 | 82 |
| Trustees’ and officers’ fees and benefits | 10,865 |
| Registration and filing fees | 44,806 |
| Reports to shareholders | 6,298 |
| Professional services fees | 34,802 |
| Other | 8,150 |
| Total expenses | 232,172 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (121,509) |
| Net expenses | 110,663 |
| Net investment income | 172,519 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (200,986) |
| Foreign currencies | (448) |
| | (201,434) |
| Change in net unrealized appreciation of: | |
| Investment securities | 2,079,498 |
| Foreign currencies | 452 |
| | 2,079,950 |
| Net realized and unrealized gain | 1,878,516 |
| Net increase in net assets resulting from operations | $2,051,035 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Global Infrastructure Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $172,519 | $396,791 |
| Net realized gain (loss) | (201,434) | 237,878 |
| Change in net unrealized appreciation (depreciation) | 2,079,950 | (1,175,484) |
| Net increase (decrease) in net assets resulting from operations | 2,051,035 | (540,815) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (56,581) | (376,949) |
| Class C | (5,455) | (68,541) |
| Class R | (2,464) | (12,164) |
| Class Y | (88,303) | (464,195) |
| Class R5 | (94) | (471) |
| Class R6 | (1,968) | (8,902) |
| Total distributions to shareholders from distributable earnings | (154,865) | (931,222) |
| Return of capital: | | |
| Class A | — | (14,744) |
| Class C | — | (2,979) |
| Class R | — | (557) |
| Class Y | — | (16,823) |
| Class R5 | — | (17) |
| Class R6 | — | (345) |
| Total return of capital | — | (35,465) |
| Share transactions–net: | | |
| Class A | (1,706,676) | (171,079) |
| Class C | (499,372) | (301,339) |
| Class R | 67,531 | 77,381 |
| Class Y | (461,454) | (205,683) |
| Class R6 | (34,896) | 48,757 |
| Net increase (decrease) in net assets resulting from share transactions | (2,634,867) | (551,963) |
| Net increase (decrease) in net assets | (738,697) | (2,059,465) |
| Net assets: | | |
| Beginning of period | 20,041,143 | 22,100,608 |
| End of period | $19,302,446 | $20,041,143 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Global Infrastructure Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 | Return of
capital | 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 |
| Six months ended 04/30/19 | $10.01 | $0.09 | $1.13 | $1.22 | $(0.08) | $- | $— | $(0.08) | $11.15 | 12.26% | $7,042 | 1.28%(d) | 2.60%(d) | 1.79%(d) | 53% |
| Year ended 10/31/18 | 10.74 | 0.18 | (0.45) | (0.27) | (0.19) | (0.02) | (0.25) | (0.46) | 10.01 | (2.65) | 8,098 | 1.28 | 2.56 | 1.76 | 114 |
| Year ended 10/31/17 | 9.62 | 0.25(e) | 1.06 | 1.31 | (0.19) | - | — | (0.19) | 10.74 | 13.74 | 8,899 | 1.29 | 2.87 | 2.40(e) | 99 |
| Year ended 10/31/16 | 9.50 | 0.17 | 0.11 | 0.28 | (0.16) | - | — | (0.16) | 9.62 | 3.01 | 4,194 | 1.40 | 4.29 | 1.76 | 85 |
| Year ended 10/31/15 | 10.66 | 0.17 | (1.11) | (0.94) | (0.21) | - | (0.01) | (0.22) | 9.50 | (8.85) | 3,262 | 1.40 | 6.36 | 1.68 | 84 |
| Year ended 10/31/14(f) | 10.00 | 0.08 | 0.63 | 0.71 | (0.05) | - | — | (0.05) | 10.66 | 7.12 | 2,497 | 1.39(g) | 8.60(g) | 1.51(g) | 19 |
| Class C |
| Six months ended 04/30/19 | 9.99 | 0.05 | 1.13 | 1.18 | (0.04) | - | — | (0.04) | 11.13 | 11.87 | 1,207 | 2.03(d) | 3.35(d) | 1.04(d) | 53 |
| Year ended 10/31/18 | 10.72 | 0.10 | (0.44) | (0.34) | (0.13) | (0.01) | (0.25) | (0.39) | 9.99 | (3.39) | 1,579 | 2.03 | 3.31 | 1.01 | 114 |
| Year ended 10/31/17 | 9.60 | 0.17(e) | 1.06 | 1.23 | (0.11) | - | — | (0.11) | 10.72 | 12.92 | 2,016 | 2.04 | 3.62 | 1.65(e) | 99 |
| Year ended 10/31/16 | 9.48 | 0.10 | 0.11 | 0.21 | (0.09) | - | — | (0.09) | 9.60 | 2.24 | 428 | 2.15 | 5.04 | 1.01 | 85 |
| Year ended 10/31/15 | 10.64 | 0.09 | (1.10) | (1.01) | (0.14) | - | (0.01) | (0.15) | 9.48 | (9.56) | 279 | 2.15 | 7.11 | 0.93 | 84 |
| Year ended 10/31/14(f) | 10.00 | 0.04 | 0.63 | 0.67 | (0.03) | - | — | (0.03) | 10.64 | 6.71 | 181 | 2.14(g) | 9.35(g) | 0.76(g) | 19 |
| Class R |
| Six months ended 04/30/19 | 10.01 | 0.08 | 1.12 | 1.20 | (0.07) | - | — | (0.07) | 11.14 | 12.02 | 464 | 1.53(d) | 2.85(d) | 1.54(d) | 53 |
| Year ended 10/31/18 | 10.73 | 0.16 | (0.44) | (0.28) | (0.18) | (0.01) | (0.25) | (0.44) | 10.01 | (2.80) | 351 | 1.53 | 2.81 | 1.51 | 114 |
| Year ended 10/31/17 | 9.61 | 0.22(e) | 1.06 | 1.28 | (0.16) | - | — | (0.16) | 10.73 | 13.47 | 296 | 1.54 | 3.12 | 2.15(e) | 99 |
| Year ended 10/31/16 | 9.49 | 0.14 | 0.11 | 0.25 | (0.13) | - | — | (0.13) | 9.61 | 2.76 | 69 | 1.65 | 4.54 | 1.51 | 85 |
| Year ended 10/31/15 | 10.66 | 0.14 | (1.11) | (0.97) | (0.19) | - | (0.01) | (0.20) | 9.49 | (9.18) | 27 | 1.65 | 6.61 | 1.43 | 84 |
| Year ended 10/31/14(f) | 10.00 | 0.07 | 0.64 | 0.71 | (0.05) | - | — | (0.05) | 10.66 | 7.05 | 13 | 1.64(g) | 8.85(g) | 1.26(g) | 19 |
| Class Y |
| Six months ended 04/30/19 | 10.02 | 0.11 | 1.12 | 1.23 | (0.09) | - | — | (0.09) | 11.16 | 12.39 | 10,361 | 1.03(d) | 2.35(d) | 2.04(d) | 53 |
| Year ended 10/31/18 | 10.74 | 0.21 | (0.44) | (0.23) | (0.22) | (0.02) | (0.25) | (0.49) | 10.02 | (2.31) | 9,775 | 1.03 | 2.31 | 2.01 | 114 |
| Year ended 10/31/17 | 9.62 | 0.27(e) | 1.06 | 1.33 | (0.21) | - | — | (0.21) | 10.74 | 14.02 | 10,685 | 1.04 | 2.62 | 2.65(e) | 99 |
| Year ended 10/31/16 | 9.50 | 0.19 | 0.11 | 0.30 | (0.18) | - | — | (0.18) | 9.62 | 3.27 | 5,177 | 1.15 | 4.04 | 2.01 | 85 |
| Year ended 10/31/15 | 10.67 | 0.20 | (1.12) | (0.92) | (0.24) | - | (0.01) | (0.25) | 9.50 | (8.70) | 4,223 | 1.15 | 6.11 | 1.93 | 84 |
| Year ended 10/31/14(f) | 10.00 | 0.09 | 0.64 | 0.73 | (0.06) | - | — | (0.06) | 10.67 | 7.29 | 2,287 | 1.14(g) | 8.35(g) | 1.76(g) | 19 |
| Class R5 |
| Six months ended 04/30/19 | 10.02 | 0.11 | 1.12 | 1.23 | (0.09) | - | — | (0.09) | 11.16 | 12.39 | 11 | 1.03(d) | 2.25(d) | 2.04(d) | 53 |
| Year ended 10/31/18 | 10.74 | 0.21 | (0.44) | (0.23) | (0.22) | (0.02) | (0.25) | (0.49) | 10.02 | (2.31) | 10 | 1.03 | 2.19 | 2.01 | 114 |
| Year ended 10/31/17 | 9.62 | 0.27(e) | 1.06 | 1.33 | (0.21) | - | — | (0.21) | 10.74 | 14.02 | 11 | 1.04 | 2.54 | 2.65(e) | 99 |
| Year ended 10/31/16 | 9.50 | 0.19 | 0.11 | 0.30 | (0.18) | - | — | (0.18) | 9.62 | 3.27 | 10 | 1.15 | 4.02 | 2.01 | 85 |
| Year ended 10/31/15 | 10.67 | 0.20 | (1.12) | (0.92) | (0.24) | - | (0.01) | (0.25) | 9.50 | (8.70) | 10 | 1.15 | 6.00 | 1.93 | 84 |
| Year ended 10/31/14(f) | 10.00 | 0.09 | 0.64 | 0.73 | (0.06) | - | — | (0.06) | 10.67 | 7.29 | 11 | 1.14(g) | 8.34(g) | 1.76(g) | 19 |
| Class R6 |
| Six months ended 04/30/19 | 10.02 | 0.11 | 1.12 | 1.23 | (0.09) | - | — | (0.09) | 11.16 | 12.39 | 217 | 1.03(d) | 2.25(d) | 2.04(d) | 53 |
| Year ended 10/31/18 | 10.74 | 0.21 | (0.44) | (0.23) | (0.22) | (0.02) | (0.25) | (0.49) | 10.02 | (2.31) | 229 | 1.03 | 2.19 | 2.01 | 114 |
| Year ended 10/31/17 | 9.62 | 0.27(e) | 1.06 | 1.33 | (0.21) | - | — | (0.21) | 10.74 | 14.02 | 194 | 1.04 | 2.54 | 2.65(e) | 99 |
| Year ended 10/31/16 | 9.50 | 0.19 | 0.11 | 0.30 | (0.18) | - | — | (0.18) | 9.62 | 3.27 | 114 | 1.15 | 4.02 | 2.01 | 85 |
| Year ended 10/31/15 | 10.67 | 0.20 | (1.12) | (0.92) | (0.24) | - | (0.01) | (0.25) | 9.50 | (8.70) | 69 | 1.15 | 6.00 | 1.93 | 84 |
| Year ended 10/31/14(f) | 10.00 | 0.09 | 0.64 | 0.73 | (0.06) | - | — | (0.06) | 10.67 | 7.29 | 38 | 1.14(g) | 8.34(g) | 1.76(g) | 19 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $6,965, $1,267, $397, $9,724, $10 and $217 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | 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 are $0.20 and 1.88%, $0.12 and 1.13%, $0.17 and 1.63%, $0.22 and 2.13%, $0.22 and 2.13% and $0.22 and 2.13% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (f) | Commencement date of May 2, 2014. |
| (g) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Global Infrastructure Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
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 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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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
| 11 | Invesco Global Infrastructure Fund |
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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions- Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Master Limited Partnerships– The Fund invests in Master Limited Partnerships (“MLPs”). MLPs are publicly traded partnerships and limited liability companies taxed as partnerships under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The Fund invests in MLPs engaged in, among other things, the transportation, storage, processing, refining, marketing, exploration, production and mining of minerals and natural resources. The Fund is a partner in each MLP; accordingly, the Fund is required to take into account the Fund’s allocable share of income, gains, losses, deductions, expenses, and tax credits recognized by each MLP. |
MLP’s may be less liquid and subject to more abrupt or erratic price movements than conventional publicly traded securities.
The Fund is non-diversified and will invest in securities of fewer issues than if it were diversified.
| F. | Return of Capital — Distributions received from the Fund’s investments in MLPs generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates made at the time such distributions are received. The return of capital portion of the distribution is a reduction to investment income that results in an equivalent reduction in the cost basis of the associated investments and increases net realized gains (losses) and change in unrealized appreciation (depreciation). Such estimates are based on historical information available from each MLP and other industry sources. These estimates will subsequently be revised and may materially differ primarily based on information received from the MLPs after their tax reporting periods are concluded. |
| G. | 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.
| H. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| I. | 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. |
| J. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified |
| 12 | Invesco Global Infrastructure Fund |
| | 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. |
| 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 $2.5 billion | 0.84% |
| Next $2 billion | 0.80% |
| Next $3.5 billion | 0.785% |
| Over $8 billion | 0.77% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.84%.
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 contractually agreed, through at least February 29, 2020, 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 1.28%, 2.03%, 1.53%, 1.03%, 1.03% and 1.03%, respectively, of 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, 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 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
| 13 | Invesco Global Infrastructure Fund |
The Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $77,401, reimbursed fund level expenses of $27,718 and reimbursed class level expenses of $6,120, $1,114, $349, $8,545, $4 and $82 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $712 in front-end sales commissions from the sale of Class A shares and $1 and $3 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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.
| 14 | Invesco Global Infrastructure Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Australia | $881,291 | $— | $— | $881,291 |
| Belgium | 53,589 | — | — | 53,589 |
| Brazil | 31,467 | — | — | 31,467 |
| Canada | 2,754,742 | — | — | 2,754,742 |
| China | 643,348 | — | — | 643,348 |
| Denmark | 80,310 | — | — | 80,310 |
| France | 215,089 | 719,117 | — | 934,206 |
| Germany | — | 116,921 | — | 116,921 |
| Hong Kong | 362,764 | 274,451 | — | 637,215 |
| Italy | 537,309 | 429,254 | — | 966,563 |
| Japan | — | 212,560 | — | 212,560 |
| Luxembourg | 270,687 | — | — | 270,687 |
| Mexico | 172,714 | — | — | 172,714 |
| Netherlands | 155,816 | — | — | 155,816 |
| New Zealand | 90,366 | — | — | 90,366 |
| Spain | 1,006,141 | 116,748 | — | 1,122,889 |
| United Kingdom | 590,709 | 617,327 | — | 1,208,036 |
| United States | 8,739,211 | — | — | 8,739,211 |
| Money Market Funds | 143,514 | — | — | 143,514 |
| Total Investments | $16,729,067 | $2,486,378 | $— | $19,215,445 |
NOTE 4—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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 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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $176.
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
| 15 | Invesco Global Infrastructure Fund |
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $60,984 | $— | $60,984 |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $9,862,533 and $12,335,113, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $2,426,536 |
| Aggregate unrealized (depreciation) of investments | (75,607) |
| Net unrealized appreciation of investments | $2,350,929 |
Cost of investments for tax purposes is $16,864,516.
| 16 | Invesco Global Infrastructure Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 71,497 | $755,456 | | 266,393 | $2,810,371 |
| Class C | 6,784 | 71,905 | | 30,397 | 316,866 |
| Class R | 7,475 | 76,894 | | 12,223 | 126,337 |
| Class Y | 63,183 | 675,717 | | 145,210 | 1,492,854 |
| Class R6 | 3,829 | 39,355 | | 7,840 | 80,995 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 3,915 | 40,365 | | 29,484 | 308,374 |
| Class C | 501 | 5,092 | | 6,559 | 68,810 |
| Class R | 231 | 2,396 | | 1,175 | 12,285 |
| Class Y | 5,414 | 56,765 | | 29,951 | 313,342 |
| Class R6 | 181 | 1,874 | | 839 | 8,759 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 19,561 | 200,157 | | - | - |
| Class C | (19,599) | (200,157) | | - | - |
| Reacquired: | | | | | |
| Class A | (272,323) | (2,702,654) | | (315,829) | (3,289,824) |
| Class C | (37,262) | (376,212) | | (67,022) | (687,015) |
| Class R | (1,109) | (11,759) | | (5,921) | (61,241) |
| Class Y | (115,832) | (1,193,936) | | (193,987) | (2,011,879) |
| Class R6 | (7,382) | (76,125) | | (3,925) | (40,997) |
| Net increase (decrease) in share activity | (270,936) | $(2,634,867) | | (56,613) | $(551,963) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 42% 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, 18% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| 17 | Invesco Global Infrastructure Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,122.60 | $6.74 | $1,018.45 | $6.41 | 1.28% |
| Class C | 1,000.00 | 1,118.70 | 10.66 | 1,014.73 | 10.14 | 2.03 |
| Class R | 1,000.00 | 1,120.20 | 8.04 | 1,017.21 | 7.65 | 1.53 |
| Class Y | 1,000.00 | 1,123.90 | 5.42 | 1,019.69 | 5.16 | 1.03 |
| Class R5 | 1,000.00 | 1,123.90 | 5.42 | 1,019.69 | 5.16 | 1.03 |
| Class R6 | 1,000.00 | 1,123.90 | 5.42 | 1,019.69 | 5.16 | 1.03 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 18 | Invesco Global Infrastructure Fund |
Distribution Information
Correction notice
The following table sets forth on a per share basis the distribution that was paid in March 2019. Included in the table is a written statement of the sources of the distribution on a generally accepted accounting principles (“GAAP”) basis.
| | | Net Income | Gain from
Sale of Securities | Return of Principal | Total Distribution |
| 03/21/2019 | Class A | $0.0207 | $0.000 | $0.0078 | $0.0285 |
| 03/21/2019 | Class C | $0.0006 | $0.000 | $0.0078 | $0.0084 |
| 03/21/2019 | Class R | $0.0140 | $0.000 | $0.0078 | $0.0218 |
| 03/21/2019 | Class Y | $0.0274 | $0.000 | $0.0078 | $0.0352 |
| 03/21/2019 | Class R5 | $0.0274 | $0.000 | $0.0078 | $0.0352 |
| 03/21/2019 | Class R6 | $0.0274 | $0.000 | $0.0078 | $0.0352 |
Please note that the information in the preceding chart is for financial accounting purposes only. Shareholders should be aware that the tax treatment of distributions likely differs from GAAP treatment. Form 1099-DIV for the calendar year will report distributions for federal income tax purposes. This Notice is sent to comply with certain Securities and Exchange Commission requirements.
| 19 | Invesco Global Infrastructure Fund |
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | GBLI-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Global Market Neutral Fund
Nasdaq:
A: MKNAX ■ C: MKNCX ■ R: MKNRX ■ Y: MKNYX ■ R5: MKNFX ■ R6: MKNSX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | –10.73% |
| Class C Shares | –11.17 |
| Class R Shares | –10.77 |
| Class Y Shares | –10.60 |
| Class R5 Shares | –10.60 |
| Class R6 Shares | –10.60 |
| FTSE US 3-Month Treasury Bill Index▼ (Broad Market/Style-Specific Index) | 1.19 |
Lipper Alternative Equity Market Neutral Funds Index■
(Peer Group Index) | –1.34 |
| Source(s):▼RIMES Technologies Corp.;■ Lipper Inc. |
The FTSE US 3-Month Treasury Bill Index is an unmanaged index considered representative of three-month US Treasury Bills.
TheLipper Alternative Equity Market Neutral Funds Indexis an unmanaged index considered representative of alternative equity market neutral funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Global Market Neutral Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | | |
| Inception (12/19/13) | –2.76% | * |
| 5 Years | –3.75 | * |
| 1 Year | –15.20 | |
| Class C Shares | | |
| Inception (12/19/13) | –2.47% | * |
| 5 Years | –3.35 | * |
| 1 Year | –11.65 | |
| Class R Shares | | |
| Inception (12/19/13) | –1.96% | * |
| 5 Years | –2.87 | * |
| 1 Year | –10.48 | |
| Class Y Shares | | |
| Inception (12/19/13) | –1.48% | * |
| 5 Years | –2.38 | * |
| 1 Year | –10.02 | |
| Class R5 Shares | | |
| Inception (12/19/13) | –1.49% | * |
| 5 Years | –2.38 | * |
| 1 Year | –10.12 | |
| Class R6 Shares | | |
| Inception (12/19/13) | –1.49% | * |
| 5 Years | –2.38 | * |
| 1 Year | –10.02 | |
| * Amount includes the effect of the Adviser pay-in for an economic loss of $0.41 per share for the fiscal period-end 2014 and $0.11 for fiscal period-end 2015. Had the pay-in not been made, average annual total returns for five-years and since inception were estimated at -5.41% and -4.33%, respectively for Class A; -5.09% and -4.10%, respectively for Class C; -4.57% and -3.57%, respectively for Class R; -4.05% and -3.06%, respectively for Class Y; -4.05% and -3.06% respectively for Class R5; and -4.05% and -3.06%, respectively for Class R6. |
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most re-
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | | |
| Inception (12/19/13) | –2.51% | ** |
| 5 Years | –3.05 | ** |
| 1 Year | –12.58 | |
| Class C Shares | | |
| Inception (12/19/13) | –2.20% | ** |
| 5 Years | –2.69 | ** |
| 1 Year | –8.95 | |
| Class R Shares | | |
| Inception (12/19/13) | –1.70% | ** |
| 5 Years | –2.18 | ** |
| 1 Year | –7.71 | |
| Class Y Shares |
| Inception (12/19/13) | –1.21% | ** |
| 5 Years | –1.71 | ** |
| 1 Year | –7.30 | |
| Class R5 Shares | | |
| Inception (12/19/13) | –1.21% | ** |
| 5 Years | –1.71 | ** |
| 1 Year | –7.40 | |
| Class R6 Shares | | |
| Inception (12/19/13) | –1.21% | ** |
| 5 Years | –1.71 | ** |
| 1 Year | –7.30 | |
| ** Amount includes the effect of the Adviser pay-in for an economic loss of $0.41 per share for the fiscal period-end 2014 and $0.11 for fiscal period-end 2015. Had the pay-in not been made, average annual total returns for five-years and since inception were estimated at -4.70% and -4.08%, respectively for Class A; -4.41% and -3.83%, respectively for Class C; -3.86% and -3.30%, respectively for Class R; -3.36% and -2.79%, respectively for Class Y; -3.36% and -2.79% respectively for Class R5; and -3.36% and -2.79%, respectively for Class R6. |
cent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.50%, 2.25%, 1.75%, 1.25%, 1.25% and 1.25%, respectively.1,2The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 3.05%, 3.80%, 3.30%, 2.80%, 2.74% and 2.74%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information.
| 2 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | Invesco Global Market Neutral Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Global Market Neutral Fund |
Schedule of Investments
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–93.12% |
| Australia–2.58% |
| Altium Ltd. | 3,055 | $72,792 |
| Beach Energy Ltd. | 14,679 | 22,041 |
| BHP Group PLC | 3,121 | 73,639 |
| BlueScope Steel Ltd. | 2,034 | 19,286 |
| Fortescue Metals Group Ltd. | 2,899 | 14,612 |
| St Barbara Ltd. | 7,410 | 16,716 |
| | | | 219,086 |
| Austria–0.97% |
| Verbund AG | 908 | 45,034 |
| Wienerberger AG | 1,642 | 37,681 |
| | | | 82,715 |
| Belgium–0.25% |
| Solvay S.A., Class A | 173 | 20,867 |
| Canada–4.22% |
| Canada Goose Holdings, Inc.(a) | 1,209 | 64,561 |
| Canadian Pacific Railway Ltd. | 224 | 50,189 |
| Kirkland Lake Gold Ltd. | 3,544 | 114,571 |
| Teck Resources Ltd., Class B | 2,681 | 63,398 |
| TFI International, Inc. | 1,999 | 65,653 |
| | | | 358,372 |
| China–0.97% |
| Yangzijiang Shipbuilding Holdings Ltd. | 71,200 | 82,188 |
| Denmark–2.05% |
| GN Store Nord A/S | 1,301 | 66,591 |
| Royal Unibrew A/S | 796 | 57,042 |
| Vestas Wind Systems A/S | 562 | 50,927 |
| | | | 174,560 |
| Finland–1.26% |
| UPM-Kymmene Oyj | 785 | 22,159 |
| Valmet Corp. | 3,079 | 84,609 |
| | | | 106,768 |
| France–3.72% |
| Dassault Aviation S.A. | 29 | 43,878 |
| Faurecia SA | 466 | 23,875 |
| Kering S.A. | 150 | 88,663 |
| Peugeot S.A. | 6,093 | 159,640 |
| | | | 316,056 |
| Germany–1.96% |
| Hella GmbH & Co.KGaA | 820 | 44,648 |
| HOCHTIEF AG | 451 | 67,277 |
| Siltronic AG | 559 | 54,772 |
| | | | 166,697 |
| | Shares | Value |
| Ireland–0.83% |
| AerCap Holdings N.V.(a) | 573 | $28,444 |
| Glanbia PLC | 976 | 17,942 |
| Smurfit Kappa Group PLC | 828 | 24,295 |
| | | | 70,681 |
| Japan–17.53% |
| Aeon Mall Co. Ltd. | 1,900 | 29,002 |
| AGC, Inc. | 2,200 | 74,975 |
| Brother Industries Ltd. | 3,100 | 61,098 |
| Capcom Co Ltd. | 1,000 | 22,616 |
| Citizen Watch Co. Ltd. | 10,900 | 60,838 |
| Dai Nippon Printing Co., Ltd. | 3,600 | 85,394 |
| Daicel Corp. | 1,900 | 21,252 |
| Daiwa House Industry Co., Ltd. | 2,000 | 56,092 |
| Denka Co., Ltd. | 2,200 | 66,335 |
| Electric Power Development Co. Ltd. | 1,300 | 30,193 |
| Ibiden Co. Ltd. | 3,900 | 69,938 |
| ITOCHU Corp. | 2,100 | 37,837 |
| JTEKT Corp. | 4,800 | 61,923 |
| Konica Minolta, Inc. | 7,000 | 70,003 |
| K’s Holdings Corp. | 6,700 | 59,870 |
| Marubeni Corp. | 8,200 | 58,770 |
| Mitsubishi Corp. | 2,300 | 63,303 |
| Mitsui & Co., Ltd. | 5,500 | 88,893 |
| Nippon Express Co., Ltd. | 900 | 49,444 |
| Nippon Telegraph & Telephone Corp. | 900 | 37,368 |
| Nishimatsu Construction Co., Ltd. | 2,600 | 56,318 |
| Ricoh Co. Ltd. | 3,100 | 31,155 |
| Seino Holdings Co., Ltd. | 5,000 | 68,008 |
| Sojitz Corp. | 18,900 | 65,215 |
| Sumitomo Chemical Co., Ltd. | 9,000 | 44,809 |
| Suzuken Co., Ltd. | 700 | 40,337 |
| Toppan Printing Co., Ltd. | 4,800 | 77,902 |
| | | | 1,488,888 |
| Jordan–0.69% |
| Hikma Pharmaceuticals PLC | 2,555 | 58,968 |
| Netherlands–0.86% |
| Koninklijke Ahold Delhaize N.V. | 2,213 | 53,266 |
| NXP Semiconductors NV | 186 | 19,645 |
| | | | 72,911 |
| Norway–1.58% |
| Salmar ASA | 1,725 | 78,378 |
| TGS NOPEC Geophysical Co. ASA | 2,126 | 55,543 |
| | | | 133,921 |
| Puerto Rico–1.09% |
| Popular, Inc. | 1,598 | 92,221 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Global Market Neutral Fund |
| | Shares | Value |
| Russia–0.79% |
| Evraz PLC | 8,211 | $67,198 |
| Spain–1.62% |
| ACS Actividades de Construccion y Servicios S.A. | 1,679 | 77,078 |
| Mediaset Espana Comunicacion S.A. | 7,751 | 60,197 |
| | | | 137,275 |
| Sweden–2.80% |
| Loomis AB, Class B | 1,489 | 55,031 |
| Peab AB | 2,476 | 22,630 |
| Sandvik AB | 3,799 | 70,263 |
| Svenska Cellulosa AB SCA, Class B | 7,592 | 66,206 |
| Volvo AB, Class B | 1,498 | 23,975 |
| | | | 238,105 |
| Switzerland–0.40% |
| Roche Holding AG | 128 | 33,741 |
| United Kingdom–5.28% |
| Dialog Semiconductor PLC(a) | 2,342 | 90,624 |
| Drax Group PLC | 5,936 | 26,395 |
| Fiat Chrysler Automobiles NV | 4,092 | 63,033 |
| GlaxoSmithKline PLC | 1,452 | 29,791 |
| Greggs PLC | 1,852 | 43,525 |
| Moneysupermarket.com Group PLC | 12,975 | 61,536 |
| PageGroup PLC | 10,980 | 77,031 |
| Pearson PLC | 5,232 | 56,641 |
| | | | 448,576 |
| United States–41.67% |
| Aaron’s, Inc. | 1,351 | 75,237 |
| AbbVie, Inc. | 258 | 20,483 |
| Akamai Technologies, Inc.(a) | 913 | 73,095 |
| Allison Transmission Holdings, Inc. | 1,572 | 73,664 |
| AMC Networks, Inc., Class A(a) | 459 | 26,810 |
| Amedisys, Inc.(a) | 566 | 72,346 |
| American Eagle Outfitters, Inc. | 2,016 | 47,940 |
| American Equity Investment Life Holding Co. | 998 | 29,351 |
| Amgen, Inc. | 366 | 65,631 |
| Athene Holding Ltd., Class A(a) | 699 | 31,567 |
| Biogen, Inc.(a) | 308 | 70,606 |
| Brinker International, Inc. | 1,708 | 73,051 |
| BRP, Inc. | 2,883 | 89,608 |
| CF Industries Holdings, Inc. | 1,524 | 68,245 |
| Chesapeake Energy Corp.(a) | 13,352 | 38,854 |
| Cisco Systems, Inc. | 1,506 | 84,261 |
| ConocoPhillips | 896 | 56,556 |
| CoreCivic, Inc. | 2,189 | 45,553 |
| Deckers Outdoor Corp.(a) | 405 | 64,075 |
| Dick’s Sporting Goods, Inc. | 1,710 | 63,270 |
| Domtar Corp. | 1,674 | 81,859 |
| Dover Corp. | 214 | 20,981 |
| Endo International PLC(a) | 5,158 | 38,685 |
| Foot Locker, Inc. | 458 | 26,202 |
| | Shares | Value |
| United States–(continued) |
| Fortinet, Inc.(a) | 792 | $73,989 |
| Freeport-McMoRan, Inc. | 2,413 | 29,704 |
| General Motors Co. | 488 | 19,008 |
| Gilead Sciences, Inc. | 1,069 | 69,528 |
| HCA Healthcare, Inc. | 390 | 49,620 |
| Herbalife Nutrition Ltd.(a) | 1,264 | 66,802 |
| HollyFrontier Corp. | 1,403 | 66,965 |
| HP, Inc. | 796 | 15,880 |
| Huntsman Corp. | 3,111 | 69,189 |
| Hyatt Hotels Corp., Class A | 1,187 | 91,079 |
| Kohl’s Corp. | 917 | 65,199 |
| Korn Ferry | 678 | 31,880 |
| Kroger Co. (The) | 1,387 | 35,757 |
| Lamar Advertising Co., Class A | 873 | 72,171 |
| Liberty Expedia Holdings, Inc., Series A(a) | 1,844 | 85,599 |
| Life Storage, Inc. | 445 | 42,404 |
| Louisiana-Pacific Corp. | 1,209 | 30,285 |
| LyondellBasell Industries N.V., Class A | 579 | 51,085 |
| Macy’s, Inc. | 753 | 17,726 |
| Mallinckrodt PLC(a) | 2,927 | 45,251 |
| Navient Corp. | 5,140 | 69,441 |
| NetApp, Inc. | 830 | 60,465 |
| PBF Energy, Inc., Class A | 933 | 31,330 |
| Peabody Energy Corp. | 2,112 | 60,762 |
| Radian Group, Inc. | 2,193 | 51,360 |
| Regeneron Pharmaceuticals, Inc.(a) | 148 | 50,785 |
| Retail Properties of America, Inc., Class A | 1,923 | 23,634 |
| Santander Consumer USA Holdings, Inc. | 2,194 | 46,842 |
| Seagate Technology PLC | 1,053 | 50,881 |
| Southwestern Energy Co.(a) | 21,150 | 83,542 |
| TEGNA, Inc. | 1,668 | 26,555 |
| Tenet Healthcare Corp.(a) | 2,418 | 52,954 |
| TreeHouse Foods, Inc.(a) | 286 | 19,156 |
| United Continental Holdings, Inc.(a) | 548 | 48,695 |
| United Therapeutics Corp.(a) | 551 | 56,516 |
| Uniti Group, Inc. | 2,388 | 26,244 |
| Vertex Pharmaceuticals, Inc.(a) | 297 | 50,187 |
| Viacom, Inc., Class B | 2,863 | 82,769 |
| Voya Financial, Inc. | 1,254 | 68,832 |
| W.W. Grainger, Inc. | 54 | 15,228 |
| Whiting Petroleum Corp.(a) | 1,429 | 39,140 |
| Xerox Corp. | 2,618 | 87,336 |
| Zebra Technologies Corp., Class A(a) | 333 | 70,310 |
| | | | 3,540,015 |
| Total Common Stocks & Other Equity Interests (Cost $7,527,383) | 7,909,809 |
| Money Market Funds–6.48% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(b) | 192,601 | 192,601 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(b) | 137,528 | 137,569 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Global Market Neutral Fund |
| | Shares | Value |
| Money Market Funds (continued)–6.48% |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(b) | 220,115 | $220,115 |
| Total Money Market Funds (Cost $550,285) | 550,285 |
| TOTAL INVESTMENTS IN SECURITIES—99.60% (Cost $8,077,668) | 8,460,094 |
| OTHER ASSETS LESS LIABILITIES–0.40% | 34,206 |
| NET ASSETS–100.00% | $8,494,300 |
Notes to Schedule of Investments:
| (a) | Non-income producing security. |
| (b) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
| Open Over-The-Counter Total Return Swap Agreements |
| Reference Entity | Counterparty | Maturity Date | Floating Rate
Index(1) | Payment
Frequency | Notional
Value | Upfront
Payments
Paid
(Received) | Value(2)(3) | Unrealized
Appreciation
(Depreciation)(2)(3) | Net Value of
Reference
Entities |
| Equity Risk | | | | | | | | | |
| Australia Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | $(59,133) | $— | $623 | $623 | $(58,535) |
| Euro Area Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | (959,334) | — | 2,373 | 2,373 | (955,364) |
| Singapore Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | (42,650) | — | 480 | 480 | (42,045) |
| Sweden Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | (162,157) | — | 2,455 | 2,455 | (159,749) |
| Switzerland Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | (99,066) | — | 866 | 866 | (98,245) |
| United Kingdom Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | (568,683) | — | 9,644 | 9,644 | (550,993) |
| Subtotal — Appreciation | | — | 16,441 | 16,441 | (1,864,931) |
| Equity Risk | | | | | | | | | |
| Canada Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | (539,819) | — | (4,204) | (4,204) | (543,000) |
| Denmark Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | (91,844) | — | (65) | (65) | (91,944) |
| Japan Equity Securities-Short | Morgan Stanley & Co. LLC | 01/22/2021 | Federal Funds floating rate | Monthly | (1,529,742) | — | (8,291) | (8,291) | (1,529,105) |
| Norway Equity Securities-Short | Morgan Stanley & Co. LLC | 01/23/2019 | Federal Funds floating rate | Monthly | (127,651) | — | (496) | (496) | (128,202) |
| Spain Equity Securities-Short | Morgan Stanley & Co. LLC | 02/22/2021 | Federal Funds floating rate | Monthly | (81,929) | — | (3,963) | (3,963) | (85,927) |
| United States Equity Securities-Short | Morgan Stanley & Co. LLC | 12/23/2019 | Federal Funds floating rate | Monthly | (3,771,157) | — | (59,495) | (59,495) | (3,830,160) |
| Subtotal — Depreciation | | — | (76,514) | (76,514) | (6,208,338) |
| Total — Total Return Swap Agreements | | $— | $(60,073) | $(60,073) | $(8,073,269) |
| (1) | The Fund receives or pays the total return on the short positions underlying the total return swap and receives a specific Federal Funds floating rate. The total return swaps are settled in U.S. Dollars. |
| (2) | Amount includes $(19,969) of dividends payable and financing fees related to the reference entities. |
| (3) | Swap agreements collateralized by $50,001 cash held with Morgan Stanley & Co. LLC, the Counterparty. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Global Market Neutral Fund |
The following table represents the individual short positions and related values of equity securities underlying the total return swaps with Morgan Stanley & Co. LLC, as of April 30, 2019.
| | Shares | Value | Percentage
of
Reference
Entities |
| Equity Securities - Short |
| Australia |
| Tabcorp Holdings Ltd. | (17,335) | $ (58,535) | 0.74 |
| Belgium |
| Umicore S.A. | (551) | (21,321) | 0.34 |
| Canada |
| Canadian Utilities Ltd., Class A | (1,001) | (27,594) | 0.35 |
| CCL Industries, Inc., Class B | (2,057) | (87,749) | 1.06 |
| Emera, Inc. | (1,714) | (64,366) | 0.81 |
| IAMGOLD Corp. | (5,880) | (17,688) | 0.22 |
| PrairieSky Royalty Ltd. | (4,273) | (61,590) | 0.77 |
| Premium Brands Holdings Corp. | (424) | (25,487) | 0.30 |
| Shopify, Inc., Class A | (146) | (35,500) | 0.41 |
| SNC-Lavalin Group, Inc. | (4,630) | (115,430) | 1.44 |
| Vermilion Energy, Inc. | (1,862) | (47,547) | 0.63 |
| Waste Connections, Inc. | (647) | (60,049) | 0.71 |
| | | (543,000) | |
| Denmark |
| Chr Hansen Holding A/S | (335) | (34,173) | 0.41 |
| Genmab A/S | (348) | (57,771) | 0.73 |
| | | (91,944) | |
| Finland |
| Huhtamaki OYJ | (1,285) | (49,017) | 0.58 |
| Outokumpu OYJ | (9,111) | (34,734) | 0.47 |
| | | (83,751) | |
| France |
| Danone S.A. | (824) | (66,616) | 0.81 |
| Getlink S.E. | (3,639) | (58,569) | 0.72 |
| Renault S.A. | (902) | (61,531) | 0.81 |
| Rubis SCA | (1,118) | (61,193) | 0.76 |
| TechnipFMC PLC | (682) | (16,913) | 0.21 |
| Valeo S.A. | (1,270) | (46,109) | 0.58 |
| | | (310,931) | |
| Germany |
| Aroundtown S.A. | (3,492) | (28,302) | 0.35 |
| Axel Springer S.E. | (927) | (52,506) | 0.66 |
| Daimler AG | (1,319) | (86,308) | 1.10 |
| Delivery Hero S.E. | (503) | (23,181) | 0.25 |
| Evotec AG | (579) | (14,339) | 0.18 |
| GEA Group AG | (585) | (16,351) | 0.21 |
| Grand City Properties S.A. | (941) | (22,122) | 0.28 |
| RWE AG | (822) | (20,993) | 0.26 |
| Siemens AG | (324) | (38,789) | 0.48 |
| | Shares | Value | Percentage
of
Reference
Entities |
| Germany—(continued) |
| Zalando S.E. | (639) | $ (30,058) | 0.37 |
| | | (332,949) | |
| Italy |
| Amplifon S.p.A. | (847) | (16,273) | 0.20 |
| Japan |
| Ain Holdings, Inc. | (300) | (23,807) | 0.29 |
| Daifuku Co., Ltd. | (1,300) | (79,124) | 0.97 |
| Kansai Paint Co., Ltd. | (3,400) | (64,554) | 0.82 |
| Keihan Holdings Co., Ltd. | (600) | (25,450) | 0.30 |
| Keyence Corp. | (200) | (124,099) | 1.62 |
| Koito Manufacturing Co., Ltd. | (900) | (53,485) | 0.69 |
| M3, Inc. | (3,200) | (56,563) | 0.66 |
| Makita Corp. | (1,600) | (58,171) | 0.73 |
| Maruichi Steel Tube Ltd. | (2,100) | (57,875) | 0.73 |
| MISUMI Group, Inc. | (3,700) | (95,593) | 1.18 |
| MonotaRO Co., Ltd. | (1,300) | (29,899) | 0.36 |
| Nidec Corp. | (600) | (85,022) | 1.06 |
| Nifco, Inc. | (2,400) | (67,436) | 0.86 |
| Nihon M&A Center, Inc. | (2,300) | (65,039) | 0.80 |
| Nippon Shinyaku Co., Ltd. | (900) | (61,888) | 0.70 |
| Nitori Holdings Co., Ltd. | (600) | (71,368) | 0.90 |
| Relo Group, Inc. | (2,200) | (59,841) | 0.73 |
| Ryohin Keikaku Co., Ltd. | (200) | (37,955) | 0.47 |
| Seria Co., Ltd. | (700) | (20,737) | 0.26 |
| Shimano, Inc. | (400) | (58,495) | 0.80 |
| SMC Corp. | (200) | (82,697) | 1.01 |
| SoftBank Group Corp. | (200) | (20,746) | 0.26 |
| Toshiba Corp. | (4,700) | (156,111) | 1.92 |
| TOTO Ltd. | (600) | (25,261) | 0.32 |
| Toyo Tire Corp. | (1,900) | (22,156) | 0.28 |
| Yaskawa Electric Corp. | (700) | (25,733) | 0.33 |
| | | (1,529,105) | |
| Netherlands |
| Galapagos N.V. | (592) | (67,760) | 0.84 |
| Takeaway.com N.V. | (618) | (53,165) | 0.66 |
| | | (120,925) | |
| Norway |
| Norsk Hydro ASA | (6,334) | (27,135) | 0.36 |
| Schibsted ASA, Class B | (458) | (10,957) | 0.15 |
| Yara International ASA | (1,998) | (90,110) | 1.08 |
| | | (128,202) | |
| Portugal |
| Jeronimo Martins SGPS, S.A. | (4,250) | (69,214) | 0.84 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Global Market Neutral Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| Singapore |
| Sembcorp Industries Ltd. | (9,700) | $ (18,971) | 0.24 |
| Singapore Telecommunications Ltd. | (9,900) | (23,074) | 0.29 |
| | | (42,045) | |
| Spain |
| Cellnex Telecom S.A. | (2,794) | (85,927) | 1.02 |
| Sweden |
| Husqvarna AB, Class B | (6,505) | (59,357) | 0.73 |
| Saab AB, Class B | (3,051) | (100,392) | 1.27 |
| | | (159,749) | |
| Switzerland |
| Compagnie Financiere Richemont S.A. | (277) | (20,253) | 0.26 |
| dormakaba Holding AG | (30) | (22,641) | 0.29 |
| Mobimo Holding AG | (240) | (55,351) | 0.69 |
| | | (98,245) | |
| United Kingdom |
| ASOS PLC | (549) | (28,070) | 0.35 |
| BBA Aviation PLC | (15,764) | (55,913) | 0.68 |
| British American Tobacco PLC | (1,391) | (54,235) | 0.69 |
| Capital & Counties Properties PLC | (10,606) | (33,483) | 0.41 |
| Coats Group PLC | (29,905) | (33,693) | 0.41 |
| Dechra Pharmaceuticals PLC | (816) | (28,304) | 0.35 |
| Fresnillo PLC | (6,616) | (64,601) | 0.81 |
| Glencore PLC | (8,054) | (31,964) | 0.44 |
| John Wood Group PLC | (3,501) | (21,480) | 0.30 |
| Just Eat PLC | (2,733) | (24,911) | 0.33 |
| KAZ Minerals PLC | (6,637) | (55,961) | 0.76 |
| Paddy Power Betfair PLC | (350) | (29,611) | 0.37 |
| Weir Group PLC (The) | (4,102) | (88,767) | 1.20 |
| | | (550,993) | |
| United States |
| ACADIA Pharmaceuticals, Inc. | (2,022) | (48,629) | 0.60 |
| Alnylam Pharmaceuticals, Inc. | (654) | (58,428) | 0.68 |
| American International Group, Inc. | (1,404) | (66,788) | 0.80 |
| AutoNation, Inc. | (1,265) | (53,041) | 0.59 |
| Avanos Medical, Inc. | (377) | (15,815) | 0.19 |
| Bank OZK | (864) | (28,210) | 0.34 |
| Big Lots, Inc. | (649) | (24,117) | 0.30 |
| Bluebird Bio, Inc. | (170) | (24,111) | 0.29 |
| Bunge Ltd. | (811) | (42,505) | 0.52 |
| BWX Technologies, Inc. | (1,575) | (80,482) | 1.01 |
| Callon Petroleum Co. | (8,690) | (65,262) | 0.91 |
| Cantel Medical Corp. | (910) | (62,735) | 0.73 |
| Cognex Corp. | (1,586) | (79,982) | 1.08 |
| Coherent, Inc. | (486) | (71,933) | 0.93 |
| | Shares | Value | Percentage
of
Reference
Entities |
| United States—(continued) |
| Compass Minerals International, Inc. | (512) | $ (29,384) | 0.36 |
| CyrusOne, Inc. | (1,237) | (68,889) | 0.86 |
| Diamondback Energy, Inc. | (910) | (96,815) | 1.25 |
| Equinix, Inc. | (126) | (57,292) | 0.70 |
| Exact Sciences Corp. | (787) | (77,669) | 0.89 |
| FireEye, Inc. | (3,073) | (49,229) | 0.60 |
| First Solar, Inc. | (1,116) | (68,667) | 0.83 |
| Flex Ltd. | (6,068) | (66,991) | 0.84 |
| Floor & Decor Holdings, Inc., Class A | (545) | (26,171) | 0.31 |
| Gartner, Inc. | (414) | (65,814) | 0.81 |
| Granite Construction, Inc. | (1,512) | (67,874) | 0.87 |
| Graphic Packaging Holding Co. | (1,917) | (26,608) | 0.31 |
| Healthcare Services Group, Inc. | (1,722) | (58,290) | 0.72 |
| Healthcare Trust of America, Inc., Class A | (1,165) | (32,131) | 0.39 |
| Howard Hughes Corp. (The) | (652) | (72,372) | 0.88 |
| Insulet Corp. | (705) | (60,806) | 0.72 |
| InterXion Holding N.V. | (937) | (64,831) | 0.78 |
| IPG Photonics Corp. | (422) | (73,736) | 0.93 |
| Iron Mountain, Inc. | (803) | (26,081) | 0.35 |
| Kilroy Realty Corp. | (860) | (66,143) | 0.80 |
| Knight-Swift Transportation Holdings, Inc. | (2,107) | (70,268) | 0.91 |
| LCI Industries | (746) | (65,536) | 0.84 |
| Liberty Broadband Corp., Class A | (677) | (66,610) | 0.80 |
| LKQ Corp. | (1,983) | (59,688) | 0.76 |
| Macerich Co. (The) | (475) | (19,067) | 0.24 |
| Markel Corp. | (81) | (86,792) | 1.02 |
| Marriott Vacations Worldwide Corp. | (494) | (52,181) | 0.65 |
| Martin Marietta Materials, Inc. | (341) | (75,668) | 0.90 |
| Mattel, Inc. | (1,229) | (14,982) | 0.18 |
| Medicines Co. (The) | (2,397) | (76,584) | 0.85 |
| Medidata Solutions, Inc. | (944) | (85,281) | 1.05 |
| Mohawk Industries, Inc. | (336) | (45,780) | 0.55 |
| Moody’s Corp. | (122) | (23,988) | 0.29 |
| ONEOK, Inc. | (338) | (22,960) | 0.29 |
| Pebblebrook Hotel Trust | (523) | (17,029) | 0.20 |
| PNC Financial Services Group, Inc. (The) | (505) | (69,150) | 0.84 |
| Pool Corp. | (373) | (68,535) | 0.83 |
| Portola Pharmaceuticals, Inc. | (2,068) | (73,000) | 0.89 |
| PriceSmart, Inc. | (886) | (52,992) | 0.65 |
| Sanderson Farms, Inc. | (524) | (79,454) | 0.92 |
| Sensient Technologies Corp. | (868) | (60,864) | 0.74 |
| South State Corp. | (799) | (60,452) | 0.71 |
| Spectrum Brands Holdings, Inc. | (361) | (22,227) | 0.27 |
| Stanley Black & Decker, Inc. | (184) | (26,974) | 0.33 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Global Market Neutral Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| United States—(continued) |
| Sterling Bancorp | (1,597) | $ (34,208) | 0.40 |
| Summit Materials, Inc., Class A | (1,654) | (28,978) | 0.33 |
| Targa Resources Corp. | (1,590) | (63,838) | 0.81 |
| Tiffany & Co. | (212) | (22,858) | 0.28 |
| United Bankshares, Inc. | (759) | (29,783) | 0.36 |
| United States Steel Corp. | (2,295) | (35,802) | 0.46 |
| Universal Display Corp. | (453) | (72,299) | 0.95 |
| ViaSat, Inc. | (1,133) | (102,899) | 1.24 |
| | Shares | Value | Percentage
of
Reference
Entities |
| United States—(continued) |
| Vulcan Materials Co. | (260) | $ (32,789) | 0.40 |
| Wayfair, Inc., Class A | (445) | (72,157) | 0.82 |
| Welbilt, Inc. | (2,489) | (41,890) | 0.53 |
| Wix.com Ltd. | (470) | (63,055) | 0.74 |
| Zillow Group, Inc., Class C | (1,668) | (55,711) | 0.73 |
| | | (3,830,160) | |
| Total Equity Securities - Short | $ (8,073,269) | |
Portfolio Composition
By sector, based on total net assets
as of April 30, 2019
| | Equity Securities | Gross
Exposure(3) | Net
Exposure(4) |
| | Long(1) | Short(2) |
| Industrials | 20.9% | 19.1% | 40.0% | 1.8% |
| Consumer Discretionary | 15.6 | 16.4 | 32.0 | (0.8) |
| Information Technology | 12.4 | 11.4 | 23.8 | 1.0 |
| Materials | 11.8 | 10.9 | 22.7 | 0.9 |
| Health Care | 10.2 | 10.4 | 20.6 | (0.2) |
| Energy | 5.4 | 4.7 | 10.1 | 0.7 |
| Financials | 4.6 | 4.7 | 9.3 | (0.1) |
| Consumer Staples | 3.8 | 5.1 | 8.9 | (1.3) |
| Communication Services | 3.7 | 3.7 | 7.4 | 0.0 |
| Real Estate | 3.5 | 6.6 | 10.1 | (3.1) |
| Utilities | 1.2 | 2.1 | 3.3 | (0.9) |
| Money Market Funds Plus Other Assets Less Liabilities | 6.9 | - | 6.9 | 6.9 |
| Total | 100.0% | 95.1% | 195.1% | 4.9% |
| 1 | Represents the value of the equity securities in the portfolio. |
| 2 | Represents the value of the equity securities underlying the Fund’s equity short portfolio swaps. |
| 3 | Represents the cumulative exposure of the Fund’s long and short positions. |
| 4 | Represents the net exposure of the Fund’s long and short positions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Global Market Neutral Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $7,527,383) | $7,909,809 |
| Investments in affiliated money market funds, at value (Cost $550,285) | 550,285 |
| Other investments: | |
| Unrealized appreciation on swap agreements — OTC | 16,441 |
| Deposits with brokers: | |
| Cash collateral — OTC Derivatives | 50,001 |
| Cash | 5,977 |
| Foreign currencies, at value (Cost $23,024) | 22,913 |
| Receivable for: | |
| Fund shares sold | 4 |
| Fund expenses absorbed | 9,602 |
| Dividends | 43,085 |
| Investment for trustee deferred compensation and retirement plans | 14,294 |
| Other assets | 37,654 |
| Total assets | 8,660,065 |
| Liabilities: | |
| Other investments: | |
| Swaps payable — OTC | 834 |
| Unrealized depreciation on swap agreements—OTC | 76,514 |
| Payable for: | |
| Accrued fees to affiliates | 1,995 |
| Accrued trustees’ and officers’ fees and benefits | 1,500 |
| Accrued other operating expenses | 70,628 |
| Trustee deferred compensation and retirement plans | 14,294 |
| Total liabilities | 165,765 |
| Net assets applicable to shares outstanding | $8,494,300 |
| Net assets consist of: | |
| Shares of beneficial interest | $9,610,770 |
| Distributable earnings | (1,116,470) |
| | $8,494,300 |
| Net Assets: |
| Class A | $3,063,841 |
| Class C | $86,851 |
| Class R | $33,739 |
| Class Y | $4,224,147 |
| Class R5 | $314,320 |
| Class R6 | $771,402 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 492,627 |
| Class C | 14,467 |
| Class R | 5,489 |
| Class Y | 672,032 |
| Class R5 | 50,001 |
| Class R6 | 122,668 |
| Class A: | |
| Net asset value per share | $6.22 |
Maximum offering price per share
(Net asset value of $6.22 ÷ 94.50%) | $6.58 |
| Class C: | |
| Net asset value and offering price per share | $6.00 |
| Class R: | |
| Net asset value and offering price per share | $6.15 |
| Class Y: | |
| Net asset value and offering price per share | $6.29 |
| Class R5: | |
| Net asset value and offering price per share | $6.29 |
| Class R6: | |
| Net asset value and offering price per share | $6.29 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Global Market Neutral Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $7,345) | $135,227 |
| Dividends from affiliated money market funds | 11,282 |
| Total investment income | 146,509 |
| Expenses: | |
| Advisory fees | 46,939 |
| Administrative services fees | 8,792 |
| Custodian fees | 3,443 |
| Distribution fees: | |
| Class A | 4,374 |
| Class C | 494 |
| Class R | 89 |
| Transfer agent fees — A, C, R and Y | 3,134 |
| Transfer agent fees — R5 | 22 |
| Transfer agent fees — R6 | 49 |
| Trustees’ and officers’ fees and benefits | 11,171 |
| Registration and filing fees | 39,334 |
| Reports to shareholders | 6,067 |
| Professional services fees | 44,483 |
| Other | 13,997 |
| Total expenses | 182,388 |
| Less: Fees waived and expenses reimbursed | (116,153) |
| Net expenses | 66,235 |
| Net investment income | 80,274 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (515,478) |
| Foreign currencies | 169,981 |
| Swap agreements | (1,141,064) |
| | (1,486,561) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | 205,415 |
| Foreign currencies | (261) |
| Swap agreements | 58,164 |
| | 263,318 |
| Net realized and unrealized gain (loss) | (1,223,243) |
| Net increase (decrease) in net assets resulting from operations | $(1,142,969) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Global Market Neutral Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $80,274 | $112,370 |
| Net realized gain (loss) | (1,486,561) | 2,986,942 |
| Change in net unrealized appreciation (depreciation) | 263,318 | (3,269,219) |
| Net increase (decrease) in net assets resulting from operations | (1,142,969) | (169,907) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (1,093,715) | (523,417) |
| Class C | (29,042) | (25,478) |
| Class R | (9,380) | (2,226) |
| Class Y | (1,538,072) | (505,288) |
| Class R5 | (112,272) | (34,326) |
| Class R6 | (227,701) | (65,827) |
| Total distributions to shareholders from distributable earnings | (3,010,182) | (1,156,562) |
| Share transactions–net: | | |
| Class A | (9,493) | (2,453,283) |
| Class C | 4,124 | (224,102) |
| Class R | 7,904 | 9,943 |
| Class Y | 1,628,772 | (2,205,488) |
| Class R6 | 173,947 | 24,608 |
| Net increase (decrease) in net assets resulting from share transactions | 1,805,254 | (4,848,322) |
| Net increase (decrease) in net assets | (2,347,897) | (6,174,791) |
| Net assets: | | |
| Beginning of period | 10,842,197 | 17,016,988 |
| End of period | $8,494,300 | $10,842,197 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Global Market Neutral Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $9.29 | $0.04 | $(0.90) | $(0.86) | $(0.24) | $(1.97) | $(2.21) | $6.22 | (10.73)% | $3,064 | 1.49%(d) | 3.85%(d) | 1.48%(d) | 53% |
| Year ended 10/31/18 | 10.06 | 0.06 | (0.14) | (0.08) | — | (0.69) | (0.69) | 9.29 | (0.79) | 4,592 | 1.49 | 3.38 | 0.68 | 64 |
| Year ended 10/31/17 | 9.91 | 0.05 | 0.10 | 0.15 | — | — | — | 10.06 | 1.51 | 7,654 | 1.52 | 2.93 | 0.51 | 35 |
| Year ended 10/31/16 | 10.31 | 0.10 | (0.47) | (0.37) | — | (0.03) | (0.03) | 9.91 | (3.64) | 7,729 | 1.61 | 2.89 | 1.00 | 79 |
| Year ended 10/31/15 | 10.49 | 0.07 | (0.06) | 0.01 | (0.18) | (0.01) | (0.19) | 10.31 | 0.16(e) | 5,716 | 1.61 | 3.28 | 0.69 | 77 |
| Year ended 10/31/14(f) | 10.00 | 0.04 | 0.45 | 0.49 | — | — | — | 10.49 | 4.90(g) | 5,197 | 1.61(h) | 4.61(h) | 0.43(h) | 46 |
| Class C |
| Six months ended 04/30/19 | 8.97 | 0.02 | (0.88) | (0.86) | (0.14) | (1.97) | (2.11) | 6.00 | (11.17) | 87 | 2.24(d) | 4.60(d) | 0.73(d) | 53 |
| Year ended 10/31/18 | 9.81 | (0.01) | (0.14) | (0.15) | — | (0.69) | (0.69) | 8.97 | (1.56) | 123 | 2.24 | 4.13 | (0.07) | 64 |
| Year ended 10/31/17 | 9.74 | (0.02) | 0.09 | 0.07 | — | — | — | 9.81 | 0.72 | 381 | 2.27 | 3.68 | (0.24) | 35 |
| Year ended 10/31/16 | 10.20 | 0.03 | (0.46) | (0.43) | — | (0.03) | (0.03) | 9.74 | (4.27) | 634 | 2.36 | 3.64 | 0.25 | 79 |
| Year ended 10/31/15 | 10.41 | (0.01) | (0.03) | (0.04) | (0.16) | (0.01) | (0.17) | 10.20 | (0.35)(e) | 603 | 2.36 | 4.03 | (0.06) | 77 |
| Year ended 10/31/14(f) | 10.00 | (0.03) | 0.44 | 0.41 | — | — | — | 10.41 | 4.10(g) | 123 | 2.36(h) | 5.36(h) | (0.32)(h) | 46 |
| Class R |
| Six months ended 04/30/19 | 9.19 | 0.04 | (0.90) | (0.86) | (0.21) | (1.97) | (2.18) | 6.15 | (10.87) | 34 | 1.74(d) | 4.10(d) | 1.23(d) | 53 |
| Year ended 10/31/18 | 9.98 | 0.04 | (0.14) | (0.10) | — | (0.69) | (0.69) | 9.19 | (1.00) | 39 | 1.74 | 3.63 | 0.43 | 64 |
| Year ended 10/31/17 | 9.86 | 0.03 | 0.09 | 0.12 | — | — | — | 9.98 | 1.22 | 32 | 1.77 | 3.18 | 0.26 | 35 |
| Year ended 10/31/16 | 10.27 | 0.08 | (0.46) | (0.38) | — | (0.03) | (0.03) | 9.86 | (3.75) | 23 | 1.86 | 3.14 | 0.75 | 79 |
| Year ended 10/31/15 | 10.46 | 0.05 | (0.05) | (0.00) | (0.18) | (0.01) | (0.19) | 10.27 | (0.01)(e) | 17 | 1.86 | 3.53 | 0.44 | 77 |
| Year ended 10/31/14(f) | 10.00 | 0.02 | 0.44 | 0.46 | — | — | — | 10.46 | 4.60(g) | 14 | 1.86(h) | 4.86(h) | 0.18(h) | 46 |
| Class Y |
| Six months ended 04/30/19 | 9.39 | 0.05 | (0.91) | (0.86) | (0.27) | (1.97) | (2.24) | 6.29 | (10.60) | 4,224 | 1.24(d) | 3.60(d) | 1.73(d) | 53 |
| Year ended 10/31/18 | 10.14 | 0.09 | (0.15) | (0.06) | — | (0.69) | (0.69) | 9.39 | (0.56) | 4,698 | 1.24 | 3.13 | 0.93 | 64 |
| Year ended 10/31/17 | 9.96 | 0.08 | 0.10 | 0.18 | — | — | — | 10.14 | 1.81 | 7,476 | 1.27 | 2.68 | 0.76 | 35 |
| Year ended 10/31/16 | 10.34 | 0.13 | (0.48) | (0.35) | — | (0.03) | (0.03) | 9.96 | (3.43) | 12,261 | 1.36 | 2.64 | 1.25 | 79 |
| Year ended 10/31/15 | 10.52 | 0.10 | (0.06) | 0.04 | (0.21) | (0.01) | (0.22) | 10.34 | 0.38(e) | 12,305 | 1.36 | 3.03 | 0.94 | 77 |
| Year ended 10/31/14(f) | 10.00 | 0.06 | 0.46 | 0.52 | — | — | — | 10.52 | 5.20(g) | 7,311 | 1.36(h) | 4.36(h) | 0.68(h) | 46 |
| Class R5 |
| Six months ended 04/30/19 | 9.39 | 0.05 | (0.91) | (0.86) | (0.27) | (1.97) | (2.24) | 6.29 | (10.60) | 314 | 1.24(d) | 3.54(d) | 1.73(d) | 53 |
| Year ended 10/31/18 | 10.14 | 0.09 | (0.15) | (0.06) | — | (0.69) | (0.69) | 9.39 | (0.57) | 470 | 1.24 | 3.07 | 0.93 | 64 |
| Year ended 10/31/17 | 9.96 | 0.08 | 0.10 | 0.18 | — | — | — | 10.14 | 1.81 | 507 | 1.26 | 2.60 | 0.77 | 35 |
| Year ended 10/31/16 | 10.34 | 0.13 | (0.48) | (0.35) | — | (0.03) | (0.03) | 9.96 | (3.43) | 498 | 1.36 | 2.56 | 1.25 | 79 |
| Year ended 10/31/15 | 10.51 | 0.10 | (0.05) | 0.05 | (0.21) | (0.01) | (0.22) | 10.34 | 0.47(e) | 517 | 1.36 | 2.97 | 0.94 | 77 |
| Year ended 10/31/14(f) | 10.00 | 0.06 | 0.45 | 0.51 | — | — | — | 10.51 | 5.10(g) | 671 | 1.36(h) | 4.33(h) | 0.68(h) | 46 |
| Class R6 |
| Six months ended 04/30/19 | 9.39 | 0.05 | (0.91) | (0.86) | (0.27) | (1.97) | (2.24) | 6.29 | (10.60) | 771 | 1.24(d) | 3.54(d) | 1.73(d) | 53 |
| Year ended 10/31/18 | 10.14 | 0.09 | (0.15) | (0.06) | — | (0.69) | (0.69) | 9.39 | (0.57) | 919 | 1.24 | 3.07 | 0.93 | 64 |
| Year ended 10/31/17 | 9.97 | 0.08 | 0.09 | 0.17 | — | — | — | 10.14 | 1.71 | 966 | 1.26 | 2.60 | 0.77 | 35 |
| Year ended 10/31/16 | 10.34 | 0.13 | (0.47) | (0.34) | — | (0.03) | (0.03) | 9.97 | (3.33) | 786 | 1.36 | 2.56 | 1.25 | 79 |
| Year ended 10/31/15 | 10.51 | 0.10 | (0.05) | 0.05 | (0.21) | (0.01) | (0.22) | 10.34 | 0.47(e) | 664 | 1.36 | 2.97 | 0.94 | 77 |
| Year ended 10/31/14(f) | 10.00 | 0.06 | 0.45 | 0.51 | — | — | — | 10.51 | 5.10(g) | 573 | 1.36(h) | 4.33(h) | 0.68(h) | 46 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $3,528, $100, $36, $5,128, $359 and $813 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | Amount includes the effect of the Adviser pay-in for an economic loss of $0.11 per share. Had the pay-in not been made, the total return would have been (0.91)%, (1.42)%, (1.09)%, (0.69)%, (0.60)% and (0.60)% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (f) | Commencement date of December 19, 2013. |
| (g) | Amount includes the effect of the Adviser pay-in for the economic loss of $0.41 per share. Had the pay-in not been made, the total return would have been 0.80%, 0.10%, 0.60%, 1.00%, 1.00% and 1.00% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (h) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 | Invesco Global Market Neutral Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Global Market Neutral 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 to provide a positive return over a full market cycle from a broadly diversified portfolio of stocks while seeking to limit exposure to the general risks associated with stock market investing.
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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
| 15 | Invesco Global Market Neutral Fund |
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in |
| 16 | Invesco Global Market Neutral Fund |
| | 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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. | 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 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 NAV 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.
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 equity 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 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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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.
| 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. | 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. |
| 17 | Invesco Global Market Neutral Fund |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.95% |
| Next $250 million | 0.93% |
| Next $500 million | 0.91% |
| Next $1.5 billion | 0.89% |
| Next $2.5 billion | 0.87% |
| Next $2.5 billion | 0.85% |
| Next $2.5 billion | 0.83% |
| Over $10 billion | 0.81% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.95%.
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 29, 2020, 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 1.50%, 2.25%, 1.75%, 1.25%, 1.25% and 1.25% of average daily net assets (the “expense limits”), respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause 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 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $46,939, reimbursed fund level expenses of $66,010 and reimbursed class level expenses of $1,257, $35, $13, $1,828, $22 and $49 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $108 in front-end sales commissions from the sale of Class A shares and $0 and $0 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
| 18 | Invesco Global Market Neutral 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | | | | |
| Australia | $219,086 | $— | $— | $219,086 |
| Austria | 82,715 | — | — | 82,715 |
| Belgium | — | 20,867 | — | 20,867 |
| Canada | 358,372 | — | — | 358,372 |
| China | 82,188 | — | — | 82,188 |
| Denmark | 123,633 | 50,927 | — | 174,560 |
| Finland | 84,609 | 22,159 | — | 106,768 |
| France | 292,181 | 23,875 | — | 316,056 |
| Germany | 122,049 | 44,648 | — | 166,697 |
| Ireland | 46,386 | 24,295 | — | 70,681 |
| Japan | 70,003 | 1,418,885 | — | 1,488,888 |
| Jordan | — | 58,968 | — | 58,968 |
| Netherlands | 72,911 | — | — | 72,911 |
| Norway | 133,921 | — | — | 133,921 |
| Puerto Rico | 92,221 | — | — | 92,221 |
| Russia | 67,198 | — | — | 67,198 |
| Spain | 77,078 | 60,197 | — | 137,275 |
| Sweden | 238,105 | — | — | 238,105 |
| Switzerland | 33,741 | — | — | 33,741 |
| United Kingdom | 405,051 | 43,525 | — | 448,576 |
| United States | 3,540,015 | — | — | 3,540,015 |
| Money Market Funds | 550,285 | — | — | 550,285 |
| Total Investments in Securities | 6,691,748 | 1,768,346 | — | 8,460,094 |
| Other Investments - Assets* | | | | |
| Swap Agreements | — | 16,441 | — | 16,441 |
| Other Investments - Liabilities* | | | | |
| Swap Agreements | — | (76,514) | — | (76,514) |
| Total Other Investments | — | (60,073) | — | (60,073) |
| Total Investments | $6,691,748 | $1,708,273 | $— | $8,400,021 |
| * | Unrealized appreciation (depreciation). |
| 19 | Invesco Global Market Neutral Fund |
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 April 30, 2019:
| | Value |
| Derivative Assets | Equity
Risk |
| Unrealized appreciation on swap agreements — OTC | $16,441 |
| Derivatives not subject to master netting agreements | - |
| Total Derivative Assets subject to master netting agreements | $16,441 |
| | Value |
| Derivative Liabilities | Equity
Risk |
| Unrealized depreciation on swap agreements — OTC | $(76,514) |
| Derivatives not subject to master netting agreements | - |
| Total Derivative Liabilities subject to master netting agreements | $(76,514) |
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 April 30, 2019.
| | | Financial
Derivative
Assets | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | Net
Amount | | | | |
| Counterparty | | Swap Agreements | Swap Agreements | Net Value of
Derivatives | Non-Cash | Cash | | | | |
| Morgan Stanley & Co. LLC | | $ 16,441 | $ (77,348) | $ (60,907) | $- | $ 50,001 | $ (10,906) | | | | |
Effect of Derivative Investments for the six months ended April 30, 2019
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 |
| | Equity
Risk |
| Realized Gain (Loss): | |
| Swap agreements | $(1,141,064) |
| Change in Net Unrealized Appreciation: | |
| Swap agreements | 58,164 |
| Total | $(1,082,900) |
The table below summarizes the average notional value of derivatives held during the period.
| | Swap
Agreements |
| Average notional value | $9,018,913 |
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
| 20 | Invesco Global Market Neutral Fund |
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 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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $4,836,286 and $6,436,815, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $889,559 |
| Aggregate unrealized (depreciation) of investments | (527,843) |
| Net unrealized appreciation of investments | $361,716 |
Cost of investments for tax purposes is $8,038,305.
| 21 | Invesco Global Market Neutral Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 4,994 | $33,335 | | 37,928 | $351,211 |
| Class C | 3,372 | 21,653 | | 568 | 5,059 |
| Class R | 105 | 707 | | 1,601 | 14,805 |
| Class Y | 460,591 | 3,586,119 | | 5,880 | 54,351 |
| Class R6 | 12,913 | 97,335 | | 17,152 | 159,607 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 14,626 | 97,116 | | 23,313 | 215,178 |
| Class C | 4,188 | 26,931 | | 1,398 | 12,539 |
| Class R | 1,096 | 7,197 | | 168 | 1,539 |
| Class Y | 78,642 | 527,688 | | 21,188 | 197,049 |
| Class R6 | 17,202 | 115,429 | | 3,384 | 31,502 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 35 | 231 | | - | - |
| Class C | (36) | (231) | | - | - |
| Reacquired: | | | | | |
| Class A | (21,190) | (140,175) | | (327,811) | (3,019,672) |
| Class C | (6,829) | (44,229) | | (27,069) | (241,700) |
| Class R | — | — | | (712) | (6,401) |
| Class Y | (367,546) | (2,485,035) | | (264,209) | (2,456,888) |
| Class R6 | (5,305) | (38,817) | | (17,887) | (166,501) |
| Net increase (decrease) in share activity | 196,858 | $1,805,254 | | (525,108) | $(4,848,322) |
| (a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 14% 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. |
| | In addition, 79% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| 22 | Invesco Global Market Neutral Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $892.70 | $6.99 | $1,017.41 | $7.45 | 1.49% |
| Class C | 1,000.00 | 888.30 | 10.49 | 1,013.69 | 11.18 | 2.24 |
| Class R | 1,000.00 | 892.30 | 8.16 | 1,016.17 | 8.70 | 1.74 |
| Class Y | 1,000.00 | 894.00 | 5.82 | 1,018.65 | 6.21 | 1.24 |
| Class R5 | 1,000.00 | 894.00 | 5.82 | 1,018.65 | 6.21 | 1.24 |
| Class R6 | 1,000.00 | 894.00 | 5.82 | 1,018.65 | 6.21 | 1.24 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 23 | Invesco Global Market Neutral Fund |
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | GMN-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Global Targeted Returns Fund
Nasdaq:
A: GLTAX ■ C: GLTCX ■ R: GLTRX ■ Y: GLTYX ■ R5: GLTFX ■ R6: GLTSX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 2.40% |
| Class C Shares | 1.95 |
| Class R Shares | 2.29 |
| Class Y Shares | 2.53 |
| Class R5 Shares | 2.53 |
| Class R6 Shares | 2.53 |
| FTSE US 3-Month Treasury Bill Index▼ (Broad Market/Style-Specific Index) | 1.19 |
| Source(s):▼RIMES Technologies Corp. |
TheFTSE US 3-Month Treasury Bill Index is an unmanaged index representative of three-month US Treasury bills.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Global Targeted Returns Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/19/13) | 0.20% |
| 5 Years | –0.42 |
| 1 Year | –5.81 |
| Class C Shares | |
| Inception (12/19/13) | 0.49% |
| 5 Years | –0.05 |
| 1 Year | –2.08 |
| Class R Shares | |
| Inception (12/19/13) | 1.01% |
| 5 Years | 0.46 |
| 1 Year | –0.52 |
| Class Y Shares | |
| Inception (12/19/13) | 1.50% |
| 5 Years | 0.95 |
| 1 Year | –0.05 |
| Class R5 Shares | |
| Inception (12/19/13) | 1.52% |
| 5 Years | 0.97 |
| 1 Year | –0.05 |
| Class R6 Shares | |
| Inception (12/19/13) | 1.50% |
| 5 Years | 0.95 |
| 1 Year | –0.05 |
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.44%, 2.19%, 1.69%, 1.19%, 1.19% and 1.19%, respectively.1,2 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 2.73%, 3.48%, 2.98%, 2.48%, 2.39% and 2.39%, re-
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/19/13) | 0.16% |
| 5 Years | –0.30 |
| 1 Year | –6.27 |
| Class C Shares | |
| Inception (12/19/13) | 0.49% |
| 5 Years | 0.10 |
| 1 Year | –2.49 |
| Class R Shares | |
| Inception (12/19/13) | 0.98% |
| 5 Years | 0.60 |
| 1 Year | –1.03 |
| Class Y Shares | |
| Inception (12/19/13) | 1.50% |
| 5 Years | 1.12 |
| 1 Year | –0.45 |
| Class R5 Shares | |
| Inception (12/19/13) | 1.50% |
| 5 Years | 1.12 |
| 1 Year | –0.55 |
| Class R6 Shares | |
| Inception (12/19/13) | 1.50% |
| 5 Years | 1.12 |
| 1 Year | –0.45 |
spectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 2 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | Invesco Global Targeted Returns Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Global Targeted Returns Fund |
Consolidated Schedule of Investments
April 30, 2019
(Unaudited)
| | | | | | | | |
| | | Shares | | | Value | |
Common Stocks & Other Equity Interests–29.03% | |
| Australia–0.92% | |
Alumina Ltd. | | | 20,625 | | | $ | 32,569 | |
Amcor Ltd. | | | 3,337 | | | | 37,709 | |
BHP Group PLC | | | 2,194 | | | | 51,766 | |
Metcash Ltd. | | | 31,787 | | | | 64,312 | |
Newcrest Mining Ltd. | | | 3,846 | | | | 67,808 | |
Nine Entertainment Co. Holdings Ltd. | | | 26,789 | | | | 33,049 | |
Origin Energy Ltd. | | | 7,343 | | | | 38,150 | |
QBE Insurance Group Ltd. | | | 11,613 | | | | 105,853 | |
Rio Tinto plc | | | 886 | | | | 51,693 | |
Telstra Corp. Ltd. | | | 17,792 | | | | 42,394 | |
Woodside Petroleum Ltd. | | | 4,220 | | | | 105,281 | |
| | | | | | | | 630,584 | |
|
| Austria–0.03% | |
Verbund AG | | | 462 | | | | 22,914 | |
|
| Belgium–0.14% | |
Colruyt S.A. | | | 704 | | | | 50,740 | |
UCB S.A. | | | 580 | | | | 46,005 | |
| | | | | | | | 96,745 | |
|
| Brazil–0.08% | |
EZ Tec Empreendimentos e Participacoes S.A. | | | 3,921 | | | | 21,609 | |
Kroton Educacional S.A. | | | 3,300 | | | | 8,206 | |
Telefonica Brasil S.A., Preference Shares | | | 1,887 | | | | 22,411 | |
| | | | | | | | 52,226 | |
|
| Canada–0.38% | |
Agnico Eagle Mines Ltd. | | | 1,247 | | | | 51,638 | |
Barrick Gold Corp. | | | 4,473 | | | | 56,860 | |
Canadian Natural Resources Ltd. | | | 3,103 | | | | 93,157 | |
Methanex Corp. | | | 369 | | | | 20,266 | |
Wheaton Precious Metals Corp. | | | 1,633 | | | | 35,403 | |
| | | | | | | | 257,324 | |
|
| China–1.48% | |
Baidu, Inc., ADR(a) | | | 764 | | | | 127,000 | |
Bank of China Ltd., Class H | | | 106,000 | | | | 50,462 | |
Beijing Capital International Airport Co. Ltd., Class H | | | 28,000 | | | | 24,913 | |
Bitauto Holdings Ltd., ADR(a) | | | 1,868 | | | | 23,985 | |
Changyou.com Ltd., ADR | | | 614 | | | | 11,942 | |
China Mobile Ltd. | | | 4,500 | | | | 42,879 | |
China Oilfield Services Ltd., Class H | | | 36,000 | | | | 38,548 | |
China Pacific Insurance (Group) Co., Ltd., Class H | | | 13,800 | | | | 56,556 | |
CNOOC Ltd. | | | 45,000 | | | | 81,341 | |
Dongfeng Motor Group Co. Ltd., Class H | | | 70,000 | | | | 67,785 | |
FIH Mobile Ltd.(a) | | | 6,000 | | | | 895 | |
| | | | | | | | |
| | | Shares | | | Value | |
| China–(continued) | |
JD.com, Inc., ADR(a) | | | 4,019 | | | $ | 121,655 | |
Minth Group Ltd. | | | 8,000 | | | | 25,240 | |
NetEase, Inc., ADR | | | 385 | | | | 109,544 | |
Qingdao Port International Co., Ltd., Class H, REGS(b) | | | 70,000 | | | | 48,631 | |
Sohu.com Ltd., ADR(a) | | | 639 | | | | 13,208 | |
Tencent Holdings Ltd. | | | 3,300 | | | | 163,491 | |
| | | | | | | | 1,008,075 | |
|
| Denmark–0.30% | |
AP Moller — Maersk A/S, Class B | | | 34 | | | | 44,296 | |
Carlsberg A/S, Class B | | | 420 | | | | 54,252 | |
Dfds A/S | | | 126 | | | | 5,986 | |
GN Store Nord A/S | | | 129 | | | | 6,603 | |
Novo Nordisk A/S, Class B | | | 960 | | | | 46,945 | |
Royal Unibrew A/S | | | 651 | | | | 46,651 | |
| | | | | | | | 204,733 | |
|
| Finland–0.41% | |
Nokia Oyj | | | 14,967 | | | | 78,546 | |
Stora Enso Oyj, Class R | | | 3,898 | | | | 48,457 | |
UPM-Kymmene Oyj | | | 3,347 | | | | 94,479 | |
Valmet Corp. | | | 2,023 | | | | 55,591 | |
| | | | | | | | 277,073 | |
|
| France–2.22% | |
Airbus S.E. | | | 129 | | | | 17,635 | |
Altran Technologies S.A. | | | 3,002 | | | | 39,257 | |
AXA S.A. | | | 2,149 | | | | 57,233 | |
BNP Paribas S.A. | | | 1,401 | | | | 74,561 | |
Capgemini SE | | | 666 | | | | 80,749 | |
Carrefour S.A. | | | 6,384 | | | | 124,374 | |
Cie Generale des Etablissements Michelin SCA | | | 779 | | | | 100,610 | |
Dassault Aviation S.A. | | | 24 | | | | 36,313 | |
Edenred | | | 138 | | | | 6,516 | |
Engie S.A. | | | 3,265 | | | | 48,357 | |
Kering S.A. | | | 49 | | | | 28,963 | |
L’Oreal S.A. | | | 199 | | | | 54,706 | |
Orange S.A. | | | 9,483 | | | | 148,534 | |
Peugeot S.A. | | | 2,079 | | | | 54,471 | |
Publicis Groupe S.A. | | | 172 | | | | 10,201 | |
Safran S.A. | | | 489 | | | | 71,245 | |
Sanofi | | | 2,122 | | | | 184,429 | |
Societe BIC S.A. | | | 155 | | | | 13,360 | |
TOTAL S.A. | | | 6,529 | | | | 364,356 | |
| | | | | | | | 1,515,870 | |
|
| Germany–1.11% | |
Allianz S.E. | | | 153 | | | | 36,861 | |
BASF S.E. | | | 984 | | | | 80,004 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 Invesco Global Targeted Returns Fund
| | | | | | | | |
| | | Shares | | | Value | |
| Germany–(continued) | |
Bayer AG | | | 2,174 | | | $ | 144,692 | |
Deutsche Post AG | | | 3,816 | | | | 132,458 | |
Deutsche Telekom AG | | | 5,968 | | | | 99,830 | |
Fielmann AG | | | 251 | | | | 17,843 | |
HOCHTIEF AG | | | 255 | | | | 38,039 | |
Merck KGaA | | | 466 | | | | 49,649 | |
SAP S.E. | | | 427 | | | | 54,801 | |
TAG Immobilien AG | | | 1,972 | | | | 44,324 | |
Volkswagen AG, Preference Shares | | | 325 | | | | 56,515 | |
| | | | | | | | 755,016 | |
|
| Hong Kong–0.49% | |
AIA Group Ltd. | | | 8,200 | | | | 83,704 | |
CK Asset Holdings Ltd. | | | 5,000 | | | | 40,154 | |
CK Hutchison Holdings Ltd. | | | 13,000 | | | | 136,345 | |
Standard Chartered PLC | | | 8,450 | | | | 76,697 | |
| | | | | | | | 336,900 | |
|
| India–0.58% | |
Bharat Heavy Electricals Ltd. | | | 36,541 | | | | 37,196 | |
HDFC Bank Ltd., ADR | | | 151 | | | | 17,312 | |
Housing Development Finance Corp. Ltd. | | | 2,765 | | | | 79,310 | |
ICICI Bank Ltd., ADR | | | 11,183 | | | | 128,045 | |
Infosys Ltd., ADR | | | 7,259 | | | | 78,107 | |
UPL Ltd. | | | 4,215 | | | | 58,731 | |
| | | | | | | | 398,701 | |
|
| Indonesia–0.05% | |
PT Bank Negara Indonesia (Persero) Tbk(a) | | | 51,500 | | | | 34,695 | |
|
| Ireland–0.20% | |
CRH PLC | | | 680 | | | | 22,862 | |
Glanbia PLC | | | 2,044 | | | | 37,575 | |
Kingspan Group PLC | | | 963 | | | | 50,635 | |
Ryanair Holdings PLC, ADR(a) | | | 369 | | | | 28,649 | |
| | | | | | | | 139,721 | |
|
| Israel–0.02% | |
Plus500 Ltd. | | | 2,258 | | | | 15,547 | |
|
| Italy–0.58% | |
Banco BPM S.p.A.(a) | | | 20,453 | | | | 48,633 | |
Enel S.p.A. | | | 8,166 | | | | 51,717 | |
Eni S.p.A. | | | 3,497 | | | | 59,592 | |
Hera S.p.A. | | | 12,010 | | | | 42,806 | |
Intesa Sanpaolo S.p.A. | | | 46,999 | | | | 123,193 | |
Saipem S.p.A.(a) | | | 2,885 | | | | 14,577 | |
Telecom Italia S.p.A.(a) | | | 98,345 | | | | 54,849 | |
| | | | | | | | 395,367 | |
|
| Japan–0.32% | |
INPEX Corp. | | | 5,700 | | | | 55,760 | |
Mitsubishi Estate Co., Ltd. | | | 1,000 | | | | 16,790 | |
NEXON Co., Ltd.(a) | | | 1,600 | | | | 22,850 | |
Sumitomo Mitsui Financial Group, Inc. | | | 1,300 | | | | 47,119 | |
| | | | | | | | |
| | | Shares | | | Value | |
| Japan–(continued) | |
Toyota Motor Corp. | | | 1,200 | | | $ | 74,586 | |
| | | | | | | | 217,105 | |
|
| Jordan–0.07% | |
Hikma Pharmaceuticals PLC | | | 2,191 | | | | 50,567 | |
|
| Luxembourg–0.05% | |
ArcelorMittal | | | 1,669 | | | | 36,378 | |
|
| Malaysia–0.03% | |
British American Tobacco Malaysia Bhd. | | | 2,400 | | | | 20,236 | |
|
| Mexico–0.10% | |
Fibra Uno Administracion S.A. de C.V.(a) | | | 45,000 | | | | 67,081 | |
|
| Netherlands–0.50% | |
ASM International N.V. | | | 102 | | | | 6,969 | |
Heineken Holding N.V. | | | 424 | | | | 43,132 | |
ING Groep N.V. | | | 8,579 | | | | 109,270 | |
Koninklijke Ahold Delhaize N.V. | | | 3,241 | | | | 78,009 | |
SBM Offshore N.V. | | | 2,589 | | | | 47,971 | |
Wolters Kluwer N.V. | | | 800 | | | | 55,882 | |
| | | | | | | | 341,233 | |
|
| Norway–0.40% | |
Equinor ASA | | | 4,825 | | | | 107,463 | |
Leroy Seafood Group ASA | | | 4,489 | | | | 32,530 | |
Salmar ASA | | | 1,040 | | | | 47,254 | |
Telenor ASA | | | 2,526 | | | | 50,710 | |
Yara International ASA | | | 739 | | | | 33,329 | |
| | | | | | | | 271,286 | |
|
| Portugal–0.02% | |
NOS, SGPS S.A. | | | 2,414 | | | | 16,224 | |
|
| Russia–0.16% | |
Evraz PLC | | | 6,594 | | | | 53,965 | |
Sberbank of Russia PJSC, ADR | | | 3,593 | | | | 51,652 | |
Sberbank of Russia PJSC, ADR | | | 6 | | | | 87 | |
| | | | | | | | 105,704 | |
|
| Singapore–0.18% | |
United Overseas Bank Ltd. | | | 6,000 | | | | 122,770 | |
|
| South Africa–0.27% | |
Anglo American PLC | | | 1,726 | | | | 44,917 | |
Naspers Ltd., Class N | | | 492 | | | | 125,712 | |
Old Mutual Ltd. | | | 9,637 | | | | 15,488 | |
| | | | | | | | 186,117 | |
|
| South Korea–1.38% | |
E-MART, Inc. | | | 266 | | | | 39,166 | |
Hyundai Motor Co. | | | 465 | | | | 55,132 | |
Hyundai Motor Co., Preference Shares | | | 731 | | | | 54,755 | |
Hyundai Steel Co. | | | 1,411 | | | | 55,926 | |
Kangwon Land, Inc. | | | 400 | | | | 11,642 | |
KB Financial Group, Inc. | | | 2,172 | | | | 85,902 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 Invesco Global Targeted Returns Fund
| | | | | | | | |
| | | Shares | | | Value | |
| South Korea–(continued) | |
Korea Electric Power Corp.(a) | | | 2,804 | | | $ | 67,931 | |
LG Corp. | | | 1,059 | | | | 66,179 | |
Samsung Electronics Co., Ltd. | | | 6,156 | | | | 241,210 | |
Samsung Electronics Co., Ltd., Preference Shares | | | 3,276 | | | | 104,325 | |
Samsung Fire & Marine Insurance Co., Ltd. | | | 357 | | | | 92,906 | |
Shinhan Financial Group Co., Ltd. | | | 1,851 | | | | 69,879 | |
| | | | | | | | 944,953 | |
|
| Spain–0.58% | |
ACS Actividades de Construccion y Servicios S.A. | | | 1,180 | | | | 54,170 | |
Banco Bilbao Vizcaya Argentaria, S.A. | | | 6,729 | | | | 41,013 | |
Banco Santander S.A. | | | 7,845 | | | | 39,878 | |
Bankia S.A. | | | 13,685 | | | | 37,956 | |
CaixaBank, S.A. | | | 27,794 | | | | 88,768 | |
Endesa, S.A. | | | 2,038 | | | | 50,768 | |
Industria de Diseno Textil, S.A. | | | 1,736 | | | | 52,607 | |
Mediaset Espana Comunicacion S.A. | | | 1,609 | | | | 12,496 | |
Merlin Properties SOCIMI, S.A. | | | 1,318 | | | | 17,961 | |
| | | | | | | | 395,617 | |
|
| Sweden–0.51% | |
Autoliv, Inc. | | | 808 | | | | 63,420 | |
Axfood AB | | | 710 | | | | 13,035 | |
Getinge AB, Class B | | | 1,640 | | | | 23,079 | |
Loomis AB, Class B | | | 634 | | | | 23,432 | |
Peab AB | | | 782 | | | | 7,147 | |
Sandvik AB | | | 1,216 | | | | 22,490 | |
Securitas AB, Class B | | | 3,113 | | | | 54,412 | |
SSAB AB, Class A | | | 3,114 | | | | 11,803 | |
SSAB AB, Class B | | | 8,942 | | | | 28,943 | |
Swedish Match AB | | | 1,106 | | | | 53,965 | |
Telefonaktiebolaget LM Ericsson, Class B | | | 4,730 | | | | 46,816 | |
| | | | | | | | 348,542 | |
|
| Switzerland–1.16% | |
Adecco Group AG | | | 421 | | | | 24,179 | |
Barry Callebaut AG | | | 9 | | | | 16,543 | |
Flughafen Zurich AG | | | 81 | | | | 13,380 | |
Forbo Holding AG | | | 5 | | | | 8,033 | |
Glencore PLC(a) | | | 33,374 | | | | 133,218 | |
Nestle S.A. | | | 168 | | | | 16,184 | |
Novartis AG | | | 1,626 | | | | 132,783 | |
PSP Swiss Property AG | | | 188 | | | | 19,188 | |
Roche Holding AG | | | 993 | | | | 261,759 | |
Sunrise Communications Group AG, REGS(a)(b) | | | 560 | | | | 37,179 | |
UBS Group AG(a) | | | 4,326 | | | | 58,133 | |
Zurich Insurance Group AG | | | 219 | | | | 70,004 | |
| | | | | | | | 790,583 | |
|
| Taiwan–0.99% | |
Asustek Computer, Inc. | | | 12,000 | | | | 91,648 | |
Delta Electronics, Inc. | | | 14,000 | | | | 73,622 | |
| | | | | | | | |
| | | Shares | | | Value | |
| Taiwan–(continued) | |
Gigabyte Technology Co., Ltd. | | | 27,000 | | | $ | 43,382 | |
Hon Hai Precision Industry Co., Ltd. | | | 13,400 | | | | 37,684 | |
MediaTek, Inc. | | | 15,000 | | | | 143,442 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | | | 18,000 | | | | 152,047 | |
Taiwan Semiconductor Manufacturing Co., Ltd., ADR | | | 3,037 | | | | 133,081 | |
| | | | | | | | 674,906 | |
|
| Thailand–0.20% | |
Bangkok Bank PCL | | | 3,400 | | | | 22,258 | |
Bangkok Bank PCL, NVDR | | | 8,100 | | | | 51,505 | |
Kasikornbank PCL, NVDR | | | 11,000 | | | | 65,811 | |
| | | | | | | | 139,574 | |
|
| United Arab Emirates–0.04% | |
Borr Drilling Ltd.(a) | | | 9,622 | | | | 27,369 | |
|
| United Kingdom–10.10% | |
Auto Trader Group PLC, REGS(b) | | | 7,512 | | | | 55,385 | |
Aviva PLC | | | 38,127 | | | | 213,805 | |
Babcock International Group PLC | | | 10,397 | | | | 71,178 | |
BAE Systems PLC | | | 44,795 | | | | 288,969 | |
Balfour Beatty PLC | | | 10,492 | | | | 34,368 | |
Barclays PLC | | | 89,763 | | | | 192,291 | |
BCA Marketplace PLC | | | 18,501 | | | | 49,746 | |
Beazley PLC | | | 11,643 | | | | 87,700 | |
BP PLC | | | 92,839 | | | | 675,042 | |
British American Tobacco PLC | | | 8,063 | | | | 316,264 | |
British Land Co. PLC (The) | | | 9,229 | | | | 71,486 | |
Britvic PLC | | | 1,741 | | | | 20,739 | |
BT Group PLC | | | 50,187 | | | | 149,899 | |
BTG PLC(a) | | | 7,311 | | | | 79,653 | |
Bunzl PLC | | | 1,542 | | | | 46,429 | |
Capita PLC(a) | | | 29,690 | | | | 49,343 | |
Derwent London PLC | | | 2,230 | | | | 92,276 | |
Dialog Semiconductor PLC(a) | | | 554 | | | | 21,437 | |
Drax Group PLC | | | 5,991 | | | | 26,640 | |
easyJet PLC | | | 11,647 | | | | 176,709 | |
Essentra PLC | | | 8,544 | | | | 47,083 | |
G4S PLC | | | 55,593 | | | | 157,122 | |
GlaxoSmithKline PLC | | | 8,483 | | | | 174,047 | |
Grafton Group PLC(c) | | | 994 | | | | 11,432 | |
Greene King PLC | | | 4,128 | | | | 34,504 | |
Greggs PLC | | | 1,167 | | | | 27,426 | |
Hiscox Ltd. | | | 4,799 | | | | 104,974 | |
HSBC Holdings PLC | | | 6,800 | | | | 58,683 | |
Imperial Brands PLC | | | 4,423 | | | | 140,825 | |
Inchcape PLC | | | 1,618 | | | | 12,980 | |
International Consolidated Airlines Group, S.A. | | | 5,499 | | | | 39,001 | |
International Consolidated Airlines Group, S.A. | | | 11,714 | | | | 82,794 | |
J Sainsbury PLC | | | 10,435 | | | | 30,276 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 Invesco Global Targeted Returns Fund
| | | | | | | | |
| | | Shares | | | Value | |
| United Kingdom–(continued) | |
Lancashire Holdings Ltd. | | | 6,351 | | | $ | 56,937 | |
Legal & General Group PLC | | | 63,039 | | | | 228,943 | |
Marks & Spencer Group PLC | | | 34,568 | | | | 128,874 | |
Melrose Industries PLC | | | 23,032 | | | | 61,049 | |
Moneysupermarket.com Group PLC | | | 2,287 | | | | 10,846 | |
N Brown Group PLC | | | 7,254 | | | | 10,216 | |
National Grid PLC | | | 4,241 | | | | 46,328 | |
NewRiver REIT PLC | | | 27,376 | | | | 81,928 | |
Next PLC | | | 2,680 | | | | 201,506 | |
PageGroup PLC | | | 3,809 | | | | 26,722 | |
Pearson PLC | | | 4,323 | | | | 46,800 | |
Persimmon PLC | | | 931 | | | | 27,146 | |
Phoenix Group Holdings PLC | | | 1,427 | | | | 13,457 | |
Provident Financial PLC | | | 9,823 | | | | 68,017 | |
RELX PLC | | | 1,244 | | | | 28,534 | |
Rentokil Initial PLC | | | 4,378 | | | | 22,315 | |
Rightmove PLC | | | 3,323 | | | | 23,465 | |
Rolls-Royce Holdings PLC(a) | | | 25,814 | | | | 308,387 | |
Rolls-Royce Holdings PLC, Class C(a) | | | 1,832,794 | | | | 2,390 | |
Royal Bank of Scotland Group PLC (The) | | | 76,598 | | | | 239,322 | |
Royal Dutch Shell PLC, Class A | | | 13,905 | | | | 443,167 | |
Royal Dutch Shell PLC, Class A | | | 5,319 | | | | 169,548 | |
Royal Dutch Shell PLC, Class B | | | 2,455 | | | | 78,707 | |
RSA Insurance Group PLC | | | 18,178 | | | | 128,476 | |
Smith & Nephew PLC | | | 1,875 | | | | 36,198 | |
SSP Group PLC | | | 1,550 | | | | 14,068 | |
Stagecoach Group PLC | | | 19,166 | | | | 32,915 | |
Standard Chartered PLC | | | 2,212 | | | | 20,225 | |
TalkTalk Telecom Group PLC | | | 25,936 | | | | 42,005 | |
Tate & Lyle PLC | | | 5,501 | | | | 55,143 | |
Tesco PLC | | | 63,773 | | | | 208,191 | |
Thomas Cook Group PLC(a) | | | 81,874 | | | | 28,693 | |
TP ICAP PLC | | | 126 | | | | 462 | |
Unilever N.V. | | | 910 | | | | 55,145 | |
Vectura Group PLC(a) | | | 14,452 | | | | 13,682 | |
Vodafone Group PLC | | | 120,344 | | | | 223,047 | |
WH Smith PLC | | | 565 | | | | 15,089 | |
Whitbread PLC | | | 1,130 | | | | 65,719 | |
| | | | | | | | 6,904,168 | |
|
| United States–2.96% | |
A.O. Smith Corp. | | | 706 | | | | 37,114 | |
Allergan PLC | | | 231 | | | | 33,957 | |
Altria Group, Inc. | | | 2,060 | | | | 111,920 | |
American Express Co. | | | 376 | | | | 44,079 | |
Amgen, Inc. | | | 178 | | | | 31,919 | |
Anthem, Inc. | | | 107 | | | | 28,144 | |
Aon PLC | | | 219 | | | | 39,451 | |
Apache Corp. | | | 702 | | | | 23,103 | |
Baker Hughes, a GE Co., Class A | | | 3,334 | | | | 80,083 | |
Berkshire Hathaway, Inc., Class B(a) | | | 218 | | | | 47,243 | |
Biogen, Inc.(a) | | | 77 | | | | 17,651 | |
| | | | | | | | |
| | | Shares | | | Value | |
| United States–(continued) | |
Booking Holdings, Inc.(a) | | | 33 | | | $ | 61,215 | |
Broadcom, Inc. | | | 200 | | | | 63,680 | |
Chevron Corp. | | | 822 | | | | 98,689 | |
Citigroup, Inc. | | | 1,876 | | | | 132,633 | |
eBay, Inc. | | | 564 | | | | 21,855 | |
First Republic Bank | | | 698 | | | | 73,723 | |
Gilead Sciences, Inc. | | | 910 | | | | 59,186 | |
JPMorgan Chase & Co. | | | 766 | | | | 88,894 | |
Las Vegas Sands Corp. | | | 1,830 | | | | 122,702 | |
Markel Corp.(a) | | | 39 | | | | 41,789 | |
Microsoft Corp. | | | 229 | | | | 29,907 | |
Nasdaq, Inc. | | | 817 | | | | 75,327 | |
National Oilwell Varco, Inc. | | | 1,788 | | | | 46,738 | |
Newmont Goldcorp Corp. | | | 1,081 | | | | 33,576 | |
Pfizer, Inc. | | | 1,546 | | | | 62,783 | |
Samsonite International S.A.(a)(b) | | | 9,600 | | | | 27,534 | |
TE Connectivity Ltd. | | | 684 | | | | 65,425 | |
Texas Instruments, Inc. | | | 872 | | | | 102,748 | |
United Rentals, Inc.(a) | | | 144 | | | | 20,292 | |
United Technologies Corp. | | | 969 | | | | 138,189 | |
Verizon Communications, Inc. | | | 1,258 | | | | 71,945 | |
Wells Fargo & Co. | | | 1,109 | | | | 53,687 | |
Williams-Sonoma, Inc. | | | 571 | | | | 32,644 | |
| | | | | | | | 2,019,825 | |
|
| Zambia–0.02% | |
First Quantum Minerals Ltd. | | | 1,556 | | | | 16,435 | |
Total Common Stocks & Other Equity Interests
(Cost $18,941,211) | | | | 19,838,164 | |
| | |
| | | Principal Amount | | | | |
Non-U.S. Dollar Denominated Bonds & Notes–16.92%(d) | |
| Belgium–0.19% | |
Solvay Finance S.A. REGS, 5.87%(b)(e) | | EUR | 100,000 | | | | 131,093 | |
|
| France–0.88% | |
Burger King France SAS, 5.25% (3 mo. EURIBOR + 5.25%), 05/01/2023(b)(f) | | EUR | 100,000 | | | | 114,332 | |
Electricite de France S.A., REGS, 5.88% (15 yr. GBP Swap Rate + 3.05%), 07/22/2049(b)(f) | | GBP | 100,000 | | | | 135,401 | |
La Financiere Atalian S.A., 6.63%, 05/15/2025(b) | | GBP | 100,000 | | | | 98,093 | |
Orange S.A. REGS, 5.88%(b)(e) | | GBP | 100,000 | | | | 141,784 | |
Picard Groupe SAS, 3.00% (3 mo. EURIBOR + 3.00%), 11/30/2023(b)(f) | | EUR | 100,000 | | | | 111,036 | |
| | | | | | | | 600,646 | |
|
| Germany–0.16% | |
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, REGS, 4.63%, 02/15/2026(b) | | EUR | 90,000 | | | | 109,830 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 Invesco Global Targeted Returns Fund
| | | | | | | | |
| | | Principal Amount | | | Value | |
| Israel–0.17% | |
Teva Pharmaceutical Finance Netherlands III B.V, 4.50%, 03/01/2025(b) | | EUR | 100,000 | | | $ | 116,366 | |
|
| Italy–0.16% | |
Pro-Gest S.p.A., 3.25%, 12/15/2024(b) | | EUR | 100,000 | | | | 107,965 | |
|
| Mexico–4.32% | |
Mexican Bonos, Series M, | | | | | | | | |
6.50%, 06/09/2022 | | MXN | 27,700,000 | | | | 1,403,560 | |
8.00%, 12/07/2023 | | MXN | 26,500,000 | | | | 1,401,228 | |
7.50%, 06/03/2027 | | MXN | 1,500,000 | | | | 76,376 | |
Petroleos Mexicanos, REGS, 8.25%, 06/02/2022(b) | | GBP | 50,000 | | | | 73,277 | |
| | | | | | | | 2,954,441 | |
|
| Netherlands–0.15% | |
HEMA Bondco I B.V., 6.25% (3 mo. EURIBOR + 6.25%), 07/15/2022(b)(f) | | EUR | 100,000 | | | | 104,594 | |
|
| Poland–4.17% | |
Republic of Poland Government Bond, Series 0726, 2.50%, 07/25/2026 | | PLN | 9,484,000 | | | | 2,459,916 | |
Series 428, 2.75%, 04/25/2028 | | PLN | 1,497,000 | | | | 386,585 | |
| | | | | | | | 2,846,501 | |
|
| Portugal–0.11% | |
Portugal Obrigacoes do Tesouro OT, REGS, 2.88%, 10/15/2025(b) | | EUR | 60,000 | | | | 77,867 | |
|
| South Africa–3.65% | |
Republic of South Africa Government Bond, | | | | | | | | |
Series 2048,
8.75%, 02/28/2048 | | ZAR | 2,800,000 | | | | 177,200 | |
Series R186, 10.50%, 12/21/2026 | | ZAR | 29,959,000 | | | | 2,317,555 | |
| | | | | | | | 2,494,755 | |
|
| Spain–0.71% | |
CaixaBank, S.A. REGS, 6.75%(b)(e) | | EUR | 200,000 | | | | 240,729 | |
Naviera Armas, S.A., 6.50% (3 mo. EURIBOR + 6.50%), 07/31/2023(b)(f) | | EUR | 100,000 | | | | 113,505 | |
Spain Government Bond, REGS, 1.95%, 04/30/2026(b) | | EUR | 55,000 | | | | 67,815 | |
Spain Government Inflation Linked Bond, REGS, 0.55%, 11/30/2019(b) | | EUR | 51,489 | | | | 59,083 | |
| | | | | | | | 481,132 | |
|
| United Kingdom–2.25% | |
Barclays Bank PLC, Series RCI, REGS, 14.00% (3 mo. GBP LIBOR + 13.40%), 11/29/2049(b)(f) | | GBP | 100,000 | | | | 132,389 | |
Boparan Finance PLC, REGS, 5.50%, 07/15/2021(b) | | GBP | 100,000 | | | | 90,615 | |
BP Capital Markets PLC, REGS, 1.18%, 08/12/2023(b) | | GBP | 100,000 | | | | 129,949 | |
| | | | | | | | |
| | | Principal Amount | | | Value | |
| United Kingdom–(continued) | |
CYBG PLC, REGS, 5.00% (5 yr. GBP Swap Rate + 3.52%), 02/09/2026(b)(f) | | GBP | 100,000 | | | $ | 131,565 | |
Fidelity International Ltd., REGS, 6.75%, 10/19/2020(b) | | GBP | 50,000 | | | | 69,725 | |
InterContinental Hotels Group PLC, REGS, 2.13%, 08/24/2026(b) | | GBP | 100,000 | | | | 125,621 | |
Nationwide Building Society REGS, 10.25%(b)(e) | | GBP | 38,000 | | | | 74,080 | |
NatWest Markets PLC, Series 352, 7.17% (5 yr. UK Gilt Rate + 2.05%), 12/31/2059(f) | | GBP | 13,000 | | | | 17,461 | |
Next PLC, REGS, 3.63%, 05/18/2028(b) | | GBP | 100,000 | | | | 133,616 | |
RAC Bond Co. PLC, REGS, 4.87%, 05/06/2026(b) | | GBP | 100,000 | | | | 128,921 | |
RL Finance Bonds No. 3 PLC, REGS, 6.13%, 11/13/2028(b) | | GBP | 100,000 | | | | 147,638 | |
Tesco Property Finance 2 PLC, REGS, 6.05%, 10/13/2039(b) | | GBP | 42,527 | | | | 69,642 | |
Travis Perkins PLC, REGS, 4.50%, 09/07/2023(b) | | GBP | 100,000 | | | | 134,968 | |
United Kingdom Gilt Inflation-Linked, REGS, 0.13%, 03/22/2026(b) | | GBP | 22,067 | | | | 33,777 | |
Vodafone Group PLC, REGS, 3.38%, 08/08/2049(b) | | GBP | 100,000 | | | | 119,289 | |
| | | | | | | | 1,539,256 | |
TotalNon-U.S. Dollar Denominated Bonds & Notes
(Cost $11,582,280) | | | | 11,564,446 | |
|
U.S. Dollar Denominated Bonds & Notes–11.02% | |
| Argentina–0.20% | |
Transportadora de Gas del Sur S.A., 6.75%, 05/02/2025(b) | | $ | 150,000 | | | | 136,500 | |
|
| Australia–0.02% | |
Nufarm Australia Ltd./Nufarm Americas, Inc., 5.75%, 04/30/2026(b) | | | 16,000 | | | | 14,960 | |
|
| Brazil–0.40% | |
MARB BondCo PLC,
7.00%, 03/15/2024(b) | | | 200,000 | | | | 204,462 | |
Petrobras Global Finance B.V., 8.75%, 05/23/2026 | | | 25,000 | | | | 30,015 | |
5.75%, 02/01/2029 | | | 39,000 | | | | 39,195 | |
| | | | | | | | 273,672 | |
|
| Canada–0.46% | |
1011778 BC ULC/ New Red Finance, Inc., 5.00%, 10/15/2025(b) | | | 32,000 | | | | 31,800 | |
Air Canada, 7.75%, 04/15/2021(b) | | | 25,000 | | | | 26,812 | |
Bombardier, Inc., 8.75%, 12/01/2021(b) | | | 14,000 | | | | 15,540 | |
5.75%, 03/15/2022(b) | | | 18,000 | | | | 18,293 | |
6.13%, 01/15/2023(b) | | | 25,000 | | | | 25,031 | |
7.50%, 03/15/2025(b) | | | 18,000 | | | | 18,113 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 Invesco Global Targeted Returns Fund
| | | | | | | | |
| | | Principal Amount | | | Value | |
| Canada–(continued) | |
Calfrac Holdings L.P., 8.50%, 06/15/2026(b) | | $ | 11,000 | | | $ | 9,185 | |
Ensign Drilling, Inc., 9.25%, 04/15/2024(b) | | | 13,000 | | | | 13,054 | |
GFL Environmental Inc.,
7.00%, 06/01/2026(b) | | | 54,000 | | | | 52,785 | |
Mercer International, Inc., 6.50%, 02/01/2024 | | | 22,000 | | | | 22,770 | |
5.50%, 01/15/2026 | | | 10,000 | | | | 9,925 | |
Parkland Fuel Corp., 6.00%, 04/01/2026(b) | | | 23,000 | | | | 23,517 | |
Precision Drilling Corp., 6.50%, 12/15/2021 | | | 6,092 | | | | 6,138 | |
5.25%, 11/15/2024 | | | 15,000 | | | | 14,288 | |
Taseko Mines Ltd., 8.75%, 06/15/2022(b) | | | 27,000 | | | | 26,089 | |
| | | | | | | | 313,340 | |
|
| Germany–0.26% | |
Allianz S.E., Series DIP, REGS, 3.88%(b)(e) | | | 200,000 | | | | 180,866 | |
|
| Israel–0.04% | |
Teva Pharmaceutical Finance IV, B.V., 3.65%, 11/10/2021 | | | 25,000 | | | | 24,574 | |
|
| Italy–0.33% | |
Telecom Italia Capital S.A., 6.38%, 11/15/2033 | | | 7,000 | | | | 6,840 | |
7.20%, 07/18/2036 | | | 16,000 | | | | 16,472 | |
Telecom Italia S.p.A., 5.30%, 05/30/2024(b) | | | 200,000 | | | | 200,000 | |
| | | | | | | | 223,312 | |
|
| Luxembourg–0.67% | |
Altice Financing S.A., 7.50%, 05/15/2026(b) | | | 200,000 | | | | 203,500 | |
FAGE International S.A. / FAGE USA Dairy Industry, Inc., 5.63%, 08/15/2026(b) | | | 200,000 | | | | 169,500 | |
Intelsat Jackson Holdings S.A., 5.50%, 08/01/2023 | | | 66,000 | | | | 59,813 | |
8.50%, 10/15/2024(b) | | | 23,000 | | | | 22,813 | |
| | | | | | | | 455,626 | |
|
| Spain–0.22% | |
Telefonica Emisiones S.A.U, 4.90%, 03/06/2048 | | | 150,000 | | | | 148,603 | |
|
| United Kingdom–1.06% | |
Barclays Bank PLC, 2.94%(e) | | | 20,000 | | | | 14,875 | |
Barclays PLC, 7.75% (5 yr. U.S. Swap Rate + 4.84%), 12/31/2049(f) | | | 200,000 | | | | 206,878 | |
HSBC Holdings PLC, 6.00% (5 yr. USD ICE Swap Rate + 3.75%), 12/31/2049(f) | | | 200,000 | | | | 200,719 | |
Royal Bank of Scotland Group PLC (The), 7.50% (5 yr. U.S. Swap Rate + 5.80%), 12/31/2049(f) | | | 200,000 | | | | 206,250 | |
4.92% (3 mo. USD LIBOR + 2.32%), 12/31/2049(f) | | | 100,000 | | | | 95,250 | |
| | | | | | | | 723,972 | |
| | | | | | | | |
| | | Principal Amount | | | Value | |
| United States–7.36% | |
Acrisure LLC / Acrisure Finance, Inc., 8.13%, 02/15/2024(b) | | $ | 4,000 | | | $ | 4,190 | |
Adient US LLC, 7.00%, 05/15/2026(b) | | | 10,000 | | | | 10,263 | |
AES Corp. (The), 5.50%, 04/15/2025 | | | 15,000 | | | | 15,607 | |
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, 6.63%, 06/15/2024 | | | 31,000 | | | | 32,124 | |
7.50%, 03/15/2026(b) | | | 17,000 | | | | 18,105 | |
Ally Financial, Inc., 8.00%, 03/15/2020 | | | 30,000 | | | | 31,313 | |
AMC Entertainment Holdings, Inc., 5.88%, 11/15/2026 | | | 30,000 | | | | 27,975 | |
AMC Networks, Inc., 5.00%, 04/01/2024 | | | 30,000 | | | | 30,450 | |
AmeriGas Partners, L.P./AmeriGas Finance Corp., 5.88%, 08/20/2026 | | | 40,000 | | | | 41,996 | |
Antero Resources Corp., 5.00%, 03/01/2025 | | | 24,000 | | | | 23,760 | |
Apple, Inc., 3.45%, 02/09/2045 | | | 50,000 | | | | 46,600 | |
Ascent Resources Utica Holdings, LLC/ARU Finance Corp., 10.00%, 04/01/2022(b) | | | 28,000 | | | | 30,800 | |
B&G Foods, Inc., 5.25%, 04/01/2025 | | | 12,000 | | | | 11,819 | |
Bausch Health Cos., Inc.,
6.13%, 04/15/2025(b) | | | 55,000 | | | | 55,825 | |
9.25%, 04/01/2026(b) | | | 14,000 | | | | 15,610 | |
5.75%, 08/15/2027(b) | | | 5,000 | | | | 5,223 | |
Beazer Homes USA, Inc., 8.75%, 03/15/2022 | | | 25,000 | | | | 26,188 | |
BMC East, LLC, 5.50%, 10/01/2024(b) | | | 40,000 | | | | 40,350 | |
Booking Holdings, Inc., 3.60%, 06/01/2026 | | | 100,000 | | | | 102,290 | |
Boyd Gaming Corp.,
6.38%, 04/01/2026 | | | 20,000 | | | | 21,125 | |
6.00%, 08/15/2026 | | | 12,000 | | | | 12,510 | |
Brazos Valley Longhorn LLC/Brazos Valley Longhorn Finance Corp., 6.88%, 02/01/2025 | | | 47,000 | | | | 47,411 | |
Brink’s Co. (The), 4.63%, 10/15/2027(b) | | | 22,000 | | | | 21,285 | |
California Resources Corp., 8.00%, 12/15/2022(b) | | | 10,000 | | | | 7,688 | |
Callon Petroleum Co., 6.13%, 10/01/2024 | | | 35,000 | | | | 36,127 | |
CCO Holdings LLC/CCO Holdings Capital Corp.,
5.75%, 09/01/2023 | | | 20,000 | | | | 20,500 | |
5.75%, 02/15/2026(b) | | | 54,000 | | | | 56,632 | |
5.13%, 05/01/2027(b) | | | 100,000 | | | | 101,750 | |
Centene Corp., 5.38%, 06/01/2026(b) | | | 16,000 | | | | 16,740 | |
Centennial Resource Production, LLC, 6.88%, 04/01/2027(b) | | | 20,000 | | | | 20,775 | |
CenturyLink, Inc., Series S, 6.45%, 06/15/2021 | | | 18,000 | | | | 18,810 | |
7.50%, 04/01/2024 | | | 30,000 | | | | 32,306 | |
Chemours Co. (The), 7.00%, 05/15/2025 | | | 20,000 | | | | 21,200 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 Invesco Global Targeted Returns Fund
| | | | | | | | |
| | | Principal Amount | | | Value | |
| United States–(continued) | |
Cincinnati Bell, Inc.,
7.00%, 07/15/2024(b) | | $ | 22,000 | | | $ | 20,406 | |
8.00%, 10/15/2025(b) | | | 6,000 | | | | 5,505 | |
Clear Channel Worldwide Holdings, Inc., 9.25%, 02/15/2024(b) | | | 12,000 | | | | 12,945 | |
Cleaver-Brooks, Inc., 7.88%, 03/01/2023(b) | | | 46,000 | | | | 45,080 | |
Cleveland-Cliffs, Inc., 5.75%, 03/01/2025 | | | 17,000 | | | | 16,936 | |
Colony Capital, Inc., 5.00%, 04/15/2023 | | | 4,000 | | | | 3,774 | |
CommScope, Inc.,
6.00%, 03/01/2026(b) | | | 13,000 | | | | 13,796 | |
8.25%, 03/01/2027(b) | | | 6,000 | | | | 6,495 | |
Community Health Systems, Inc., 6.25%, 03/31/2023 | | | 16,000 | | | | 15,640 | |
8.00%, 03/15/2026(b) | | | 15,000 | | | | 14,625 | |
Core & Main L.P., 6.13%, 08/15/2025(b) | | | 49,000 | | | | 48,877 | |
Coty, Inc., 6.50%, 04/15/2026(b) | | | 70,000 | | | | 69,212 | |
CSC Holdings, LLC, 6.75%, 11/15/2021 | | | 69,000 | | | | 74,002 | |
Dana, Inc., 5.50%, 12/15/2024 | | | 25,000 | | | | 25,438 | |
DaVita, Inc., 5.00%, 05/01/2025 | | | 10,000 | | | | 9,822 | |
Dell International LLC/EMC Corp., 7.13%, 06/15/2024(b) | | | 29,000 | | | | 30,681 | |
Diamond Offshore Drilling, Inc., 4.88%, 11/01/2043 | | | 12,000 | | | | 7,770 | |
DISH DBS Corp., 5.88%, 11/15/2024 | | | 81,000 | | | | 70,166 | |
Eagle Holding Co. II, LLC, 8.38% PIK Rate, 7.63% Cash Rate, 05/15/2022(b)(g) | | | 45,000 | | | | 45,281 | |
Element Solutions Inc., 5.88%, 12/01/2025(b) | | | 17,000 | | | | 17,489 | |
Energy Transfer Partners, L.P., Series A, 6.25%(e) | | | 12,000 | | | | 11,439 | |
EnerSys, 5.00%, 04/30/2023(b) | | | 25,000 | | | | 25,375 | |
EnPro Industries, Inc., 5.75%, 10/15/2026(b) | | | 15,000 | | | | 15,450 | |
Ensco Rowan plc,
4.50%, 10/01/2024 | | | 3,000 | | | | 2,415 | |
7.75%, 02/01/2026 | | | 45,000 | | | | 39,037 | |
EP Energy LLC/Everest Acquisition Finance, Inc., 8.00%, 11/29/2024(b) | | | 35,000 | | | | 23,975 | |
Equinix, Inc., 5.88%, 01/15/2026 | | | 12,000 | | | | 12,690 | |
Ferrellgas L.P./Ferrellgas Finance Corp., 6.50%, 05/01/2021 | | | 34,000 | | | | 30,515 | |
6.75%, 06/15/2023 | | | 6,000 | | | | 5,340 | |
First Data Corp., 5.75%, 01/15/2024(b) | | | 30,000 | | | | 31,031 | |
Flex Acquisition Co., Inc., 7.88%, 07/15/2026(b) | | | 28,000 | | | | 26,312 | |
Flexi-Van Leasing, Inc., 10.00%, 02/15/2023(b) | | | 19,000 | | | | 17,005 | |
Freeport-McMoRan, Inc., 5.40%, 11/14/2034 | | | 49,000 | | | | 46,244 | |
Frontier Communications Corp., 10.50%, 09/15/2022 | | | 41,000 | | | | 30,135 | |
11.00%, 09/15/2025 | | | 27,000 | | | | 17,618 | |
8.00%, 04/01/2027(b) | | | 26,000 | | | | 26,943 | |
| | | | | | | | |
| | | Principal Amount | | | Value | |
| United States–(continued) | |
GCP Applied Technologies, Inc., 5.50%, 04/15/2026(b) | | $ | 23,000 | | | $ | 23,439 | |
Gray Escrow, Inc., 7.00%, 05/15/2027(b) | | | 13,000 | | | | 14,068 | |
Gulfport Energy Corp., 6.00%, 10/15/2024 | | | 35,000 | | | | 30,866 | |
H&E Equipment Services, Inc., 5.63%, 09/01/2025 | | | 7,000 | | | | 7,131 | |
HCA, Inc.,
5.88%, 02/15/2026 | | | 35,000 | | | | 37,702 | |
5.38%, 09/01/2026 | | | 10,000 | | | | 10,575 | |
5.50%, 06/15/2047 | | | 28,000 | | | | 29,841 | |
Heartland Dental, LLC, 8.50%, 05/01/2026(b) | | | 37,000 | | | | 35,242 | |
Herc Rentals, Inc., 7.75%, 06/01/2024(b) | | | 25,000 | | | | 26,602 | |
Hertz Corp. (The), 7.63%, 06/01/2022(b) | | | 12,000 | | | | 12,413 | |
Hewlett Packard Enterprise Co., 4.90%, 10/15/2025 | | | 50,000 | | | | 53,395 | |
Hillman Group, Inc. (The), 6.38%, 07/15/2022(b) | | | 43,000 | | | | 39,990 | |
HLF Financing S.a.r.l. LLC/Herbalife International, Inc., 7.25%, 08/15/2026(b) | | | 21,000 | | | | 21,420 | |
Hot Topic, Inc., 9.25%, 06/15/2021(b) | | | 44,000 | | | | 44,000 | |
Hughes Satellite Systems Corp., 7.63%, 06/15/2021 | | | 40,000 | | | | 42,800 | |
IRB Holding Corp., 6.75%, 02/15/2026(b) | | | 31,000 | | | | 30,845 | |
Iron Mountain US Holdings, Inc., 5.38%, 06/01/2026(b) | | | 35,000 | | | | 34,825 | |
Iron Mountain, Inc., 5.25%, 03/15/2028(b) | | | 8,000 | | | | 7,920 | |
Itron, Inc., 5.00%, 01/15/2026(b) | | | 27,000 | | | | 26,865 | |
J. C. Penney Corp., Inc., 8.63%, 03/15/2025(b) | | | 50,000 | | | | 31,000 | |
6.38%, 10/15/2036 | | | 50,000 | | | | 19,625 | |
7.40%, 04/01/2037 | | | 50,000 | | | | 20,625 | |
J.B. Poindexter & Co., Inc.,
7.13%, 04/15/2026(b) | | | 48,000 | | | | 49,200 | |
Jagged Peak Energy LLC, 5.88%, 05/01/2026 | | | 39,000 | | | | 39,341 | |
JBS USA Lux S.A./JBS USA Finance, Inc., REGS, 5.75%, 06/15/2025(b) | | | 45,000 | | | | 46,350 | |
KB Home, 8.00%, 03/15/2020 | | | 11,000 | | | | 11,468 | |
Kenan Advantage Group, Inc. (The), 7.88%, 07/31/2023(b) | | | 50,000 | | | | 48,750 | |
Koppers, Inc., 6.00%, 02/15/2025(b) | | | 19,000 | | | | 18,483 | |
L Brands, Inc., 6.88%, 11/01/2035 | | | 30,000 | | | | 26,775 | |
Lennar Corp.,
4.75%, 11/15/2022 | | | 25,000 | | | | 25,683 | |
5.25%, 06/01/2026 | | | 10,000 | | | | 10,413 | |
Level 3 Financing, Inc., 5.25%, 03/15/2026 | | | 31,000 | | | | 31,552 | |
Lions Gate Capital Holdings LLC, 6.38%, 02/01/2024(b) | | | 29,000 | | | | 30,414 | |
Lithia Motors, Inc., 5.25%, 08/01/2025(b) | | | 17,000 | | | | 17,191 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 Invesco Global Targeted Returns Fund
| | | | | | | | |
| | | Principal Amount | | | Value | |
| United States–(continued) | |
LPL Holdings, Inc., 5.75%, 09/15/2025(b) | | $ | 18,000 | | | $ | 18,360 | |
Mattel, Inc., 6.75%, 12/31/2025(b) | | | 15,000 | | | | 15,042 | |
MEDNAX, Inc., 6.25%, 01/15/2027(b) | | | 36,000 | | | | 36,810 | |
Meredith Corp., 6.88%, 02/01/2026 | | | 49,000 | | | | 51,205 | |
Meritage Homes Corp., 6.00%, 06/01/2025 | | | 21,000 | | | | 22,365 | |
MGM Resorts International, 4.63%, 09/01/2026 | | | 35,000 | | | | 34,814 | |
MPH Acquisition Holdings LLC, 7.13%, 06/01/2024(b) | | | 27,000 | | | | 27,208 | |
MPT Operating Partnership L.P./MPT Finance Corp., 5.00%, 10/15/2027 | | | 40,000 | | | | 40,200 | |
Mueller Industries, Inc., 6.00%, 03/01/2027 | | | 35,000 | | | | 35,262 | |
Murphy Oil USA, Inc., 5.63%, 05/01/2027 | | | 28,000 | | | | 29,260 | |
Navient Corp.,
8.00%, 03/25/2020 | | | 25,000 | | | | 25,969 | |
7.25%, 01/25/2022 | | | 25,000 | | | | 26,875 | |
7.25%, 09/25/2023 | | | 12,000 | | | | 13,035 | |
Netflix, Inc.,
5.75%, 03/01/2024 | | | 12,000 | | | | 12,938 | |
5.88%, 11/15/2028 | | | 22,000 | | | | 23,265 | |
3.88%, 11/15/2029(b) | | EUR | 100,000 | | | | 115,102 | |
Noble Holding International Ltd., 7.75%, 01/15/2024 | | | 45,000 | | | | 40,950 | |
Novelis Corp., 6.25%, 08/15/2024(b) | | | 40,000 | | | | 41,750 | |
NRG Energy, Inc., 6.63%, 01/15/2027 | | | 15,000 | | | | 16,106 | |
Oasis Petroleum, Inc., 6.88%, 01/15/2023 | | | 35,000 | | | | 35,350 | |
OI European Group B.V., 4.00%, 03/15/2023(b) | | | 9,000 | | | | 8,910 | |
Parsley Energy, LLC/Parsley Finance Corp., 6.25%, 06/01/2024(b) | | | 19,000 | | | | 19,748 | |
5.63%, 10/15/2027(b) | | | 15,000 | | | | 15,413 | |
Penske Automotive Group, Inc., 5.50%, 05/15/2026 | | | 41,000 | | | | 41,051 | |
Plains All American Pipeline, L.P., Series B, 6.13%(e) | | | 25,000 | | | | 23,980 | |
Plastipak Holdings, Inc., 6.25%, 10/15/2025(b) | | | 34,000 | | | | 31,960 | |
Polaris Intermediate Corp., 8.50%, 12/01/2022(b) | | | 13,000 | | | | 12,984 | |
Prime Security Services Borrower LLC/ Prime Finance, Inc., 9.25%, 05/15/2023(b) | | | 18,000 | | | | 19,005 | |
Range Resources Corp., 4.88%, 05/15/2025 | | | 34,000 | | | | 31,450 | |
Rayonier A.M. Products, Inc., 5.50%, 06/01/2024(b) | | | 30,000 | | | | 28,725 | |
Reynolds Group Issuer, Inc./LLC, 7.00%, 07/15/2024(b) | | | 40,000 | | | | 41,425 | |
| | | | | | | | |
| | | Principal Amount | | | Value | |
| United States–(continued) | |
Schweitzer-Mauduit International, Inc., 6.88%, 10/01/2026(b) | | $ | 30,000 | | | $ | 30,900 | |
Scientific Games International, Inc., 10.00%, 12/01/2022 | | | 16,000 | | | | 16,900 | |
ServiceMaster Co., LLC (The), 5.13%, 11/15/2024(b) | | | 40,000 | | | | 40,500 | |
Southwestern Energy Co.,
7.50%, 04/01/2026 | | | 22,000 | | | | 22,440 | |
7.75%, 10/01/2027 | | | 15,000 | | | | 15,263 | |
Spectrum Brands, Inc., 5.75%, 07/15/2025 | | | 35,000 | | | | 35,919 | |
Sprint Capital Corp., 8.75%, 03/15/2032 | | | 4,000 | | | | 4,210 | |
Sprint Communications, Inc., 11.50%, 11/15/2021 | | | 40,000 | | | | 46,200 | |
Sprint Corp.,
7.88%, 09/15/2023 | | | 45,000 | | | | 46,912 | |
7.63%, 02/15/2025 | | | 6,000 | | | | 6,075 | |
Standard Industries, Inc., 6.00%, 10/15/2025(b) | | | 24,000 | | | | 25,175 | |
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., 5.50%, 06/01/2024 | | | 29,000 | | | | 28,928 | |
SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp., 7.50%, 06/15/2025(b) | | | 38,000 | | | | 38,475 | |
Surgery Center Holdings, Inc., 6.75%, 07/01/2025(b) | | | 14,000 | | | | 13,090 | |
10.00%, 04/15/2027(b) | | | 10,000 | | | | 10,300 | |
Targa Resources Partners L.P. / Targa Resources Partners Finance Corp., 5.13%, 02/01/2025 | | | 14,000 | | | | 14,420 | |
5.88%, 04/15/2026 | | | 15,000 | | | | 15,830 | |
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 6.75%, 06/01/2025(b) | | | 24,000 | | | | 24,630 | |
Tenet Healthcare Corp., 6.75%, 06/15/2023 | | | 51,000 | | | | 52,211 | |
Terex Corp., 5.63%, 02/01/2025(b) | | | 34,000 | | | | 34,467 | |
Titan International, Inc., 6.50%, 11/30/2023 | | | 47,000 | | | | 45,355 | |
T-Mobile USA, Inc., 6.50%, 01/15/2026 | | | 54,000 | | | | 57,899 | |
TransDigm, Inc.,
6.50%, 05/15/2025 | | | 46,000 | | | | 46,632 | |
6.25%, 03/15/2026(b) | | | 28,000 | | | | 29,225 | |
6.38%, 06/15/2026 | | | 9,000 | | | | 9,056 | |
Transocean, Inc., 7.50%, 04/15/2031 | | | 24,000 | | | | 21,000 | |
TreeHouse Foods, Inc., 6.00%, 02/15/2024(b) | | | 12,000 | | | | 12,540 | |
Triumph Group, Inc., 7.75%, 08/15/2025 | | | 42,000 | | | | 42,000 | |
United Rentals North America, Inc., 5.50%, 07/15/2025 | | | 35,000 | | | | 36,330 | |
6.50%, 12/15/2026 | | | 9,000 | | | | 9,653 | |
5.25%, 01/15/2030 | | | 16,000 | | | | 16,120 | |
United States Steel Corp., 6.88%, 08/15/2025 | | | 28,000 | | | | 26,415 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12 Invesco Global Targeted Returns Fund
| | | | | | | | |
| | | Principal Amount | | | Value | |
| United States–(continued) | |
US Foods, Inc., 5.88%, 06/15/2024(b) | | $ | 20,000 | | | $ | 20,525 | |
VFH Parent LLC/Orchestra Co-Issuer, Inc., 6.75%, 06/15/2022(b) | | | 12,000 | | | | 12,431 | |
Walmart, Inc., 2.65%, 12/15/2024 | | | 100,000 | | | | 99,400 | |
Walt Disney Co. (The), 3.00%, 02/13/2026 | | | 50,000 | | | | 50,127 | |
Waste Pro USA, Inc.,
5.50%, 02/15/2026(b) | | | 17,000 | | | | 17,000 | |
WellCare Health Plans, Inc., 5.25%, 04/01/2025 | | | 25,000 | | | | 25,906 | |
5.38%, 08/15/2026(b) | | | 15,000 | | | | 15,747 | |
Whiting Petroleum Corp., 6.25%, 04/01/2023 | | | 25,000 | | | | 25,656 | |
William Carter Co. (The), 5.63%, 03/15/2027(b) | | | 10,000 | | | | 10,375 | |
WPX Energy, Inc., 5.25%, 09/15/2024 | | | 40,000 | | | | 41,500 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., REGS, 5.25%, 05/15/2027(b) | | | 25,000 | | | | 24,438 | |
| | | | | | | | 5,032,312 | |
Total U.S. Dollar Denominated Bonds & Notes
(Cost $7,579,779) | | | | 7,527,737 | |
|
U.S. Treasury Securities–3.31% | |
| U.S. Treasury Inflation — Indexed Bonds–2.71% | |
0.75%, 07/15/2028 | | | 89,557 | (h) | | | 92,537 | |
1.00%, 02/15/2049 | | | 1,757,773 | (h) | | | 1,758,281 | |
| | | | | | | | 1,850,818 | |
|
| U.S. Treasury Inflation — Indexed Notes–0.14% | |
0.13%, 04/15/2021 | | | 99,614 | (h) | | | 99,254 | |
| | | | | | | | |
| | | Principal Amount | | | Value | |
| U.S. Treasury Notes–0.46% | |
2.25%, 02/29/2020 | | $ | 318,547 | | | $ | 313,057 | |
Total U.S. Treasury Securities (Cost $2,265,491) | | | | | | | 2,263,129 | |
| | |
| | | Shares | | | | |
Exchange-Traded Fund–0.13% | |
| United States–0.13% | | | | | | | | |
iShares MSCI China A ETF
(Cost $93,120) | | | 3,000 | | | | 89,069 | |
|
Money Market Funds–26.98% | |
Invesco Government & Agency Portfolio, Institutional Class, 2.34%(i) | | | 3,725,599 | | | | 3,725,599 | |
Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(i) | | | 3,090,044 | | | | 3,090,971 | |
Invesco STIC (Global Series) PLC, U.S. Dollar Liquidity Portfolio (Ireland), Institutional Class, 2.51%(i) | | | 7,358,281 | | | | 7,358,281 | |
Invesco Treasury Portfolio, Institutional Class, 2.32%(i) | | | 4,257,827 | | | | 4,257,827 | |
Total Money Market Funds (Cost $18,432,147) | | | | | | | 18,432,678 | |
| | |
Options Purchased–5.44% | | | | | | | | |
(Cost $3,677,089) | | | | | | | 3,713,693 | |
TOTAL INVESTMENTS IN SECURITIES–92.83%
(Cost $62,571,117) | | | | 63,428,916 | |
OTHER ASSETS LESS
LIABILITIES–7.17% | | | | | | | 4,900,173 | |
NET ASSETS–100.00% | | | | | | $ | 68,329,089 | |
Investment Abbreviations:
| | |
| ADR | | – American Depositary Receipt |
| DIP | | – Debtor-in-Possession |
| ETF | | – Exchange-Traded Fund |
| EUR | | – Euro |
| EURIBOR | | – Euro Interbank Offered Rate |
| GBP | | – British Pound Sterling |
| LIBOR | | – London Interbank Offered Rate |
| MXN | | – Mexican Peso |
| | |
| NVDR | | – Non-Voting Depositary Receipt |
| PIK | | – Pay-in-Kind |
| PLN | | – Polish Zloty |
| REGS | | – Regulation S |
| REIT | | – Real Estate Investment Trust |
| UK | | – United Kingdom |
| ZAR | | – South African Rand |
Notes to Consolidated 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 April 30, 2019 was $7,139,110, which represented 10.28% of the Fund’s Net Assets. |
| (c) | Each unit represents one ordinary share, seventeen Class A shares and one Class C share. |
| (d) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
| (e) | Perpetual bond with no specified maturity date. |
| (f) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2019. |
| (g) | All or a portion of this security isPay-in-Kind.Pay-in-Kind securities pay interest income in the form of securities. |
| (h) | Principal amount of security and interest payments are adjusted for inflation. See Note 1l. |
| (i) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the7-day SEC standardized yield as of April 30, 2019. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Index Options Purchased(a) | |
| Description | | Type of
Contract | | | Counterparty | | | Expiration Date | | | Number of
Contracts | | | Exercise Price | | | Notional Value(b) | | | Value | |
Equity Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Euro Stoxx 50 Index | | | Call | | | | J.P. Morgan Chase Bank, N.A. | | | | 05/17/2019 | | | | 98 | | | EUR | 3,550.00 | | | EUR | 17,395,000 | | | $ | 7,523 | |
Euro Stoxx 50 Index | | | Call | | | | UBS AG | | | | 09/20/2019 | | | | 712 | | | EUR | 3,550.00 | | | EUR | 126,380,000 | | | | 515,962 | |
Euro Stoxx Banks Index | | | Call | | | | Bank of America, N.A. | | | | 12/20/2019 | | | | 53 | | | EUR | 105.00 | | | EUR | 278,250 | | | | 10,847 | |
Euro Stoxx Banks Index | | | Call | | | | Goldman Sachs International | | | | 06/21/2019 | | | | 291 | | | EUR | 120.00 | | | EUR | 1,746,000 | | | | 653 | |
Euro Stoxx Banks Index | | | Call | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 45 | | | EUR | 95.00 | | | EUR | 213,750 | | | | 20,623 | |
Euro Stoxx Banks Index | | | Call | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 4 | | | EUR | 105.00 | | | EUR | 21,000 | | | | 819 | |
Euro Stoxx Banks Index | | | Call | | | | J.P. Morgan Chase Bank, N.A. | | | | 06/21/2019 | | | | 291 | | | EUR | 120.00 | | | EUR | 1,746,000 | | | | 653 | |
Euro Stoxx Banks Index | | | Call | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 236 | | | EUR | 95.00 | | | EUR | 1,121,000 | | | | 108,158 | |
Euro Stoxx Banks Index | | | Call | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 62 | | | EUR | 95.00 | | | EUR | 294,500 | | | | 28,414 | |
Euro Stoxx Banks Index | | | Call | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 91 | | | EUR | 105.00 | | | EUR | 477,750 | | | | 18,624 | |
Euro Stoxx Banks Index | | | Call | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 40 | | | EUR | 110.00 | | | EUR | 220,000 | | | | 5,135 | |
Euro Stoxx Banks Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 58 | | | EUR | 95.00 | | | EUR | 275,500 | | | | 26,581 | |
Euro Stoxx Banks Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 82 | | | EUR | 95.00 | | | EUR | 389,500 | | | | 37,580 | |
Euro Stoxx Banks Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 34 | | | EUR | 105.00 | | | EUR | 178,500 | | | | 6,959 | |
S&P 500 Index | | | Call | | | | Bank of America, N.A. | | | | 06/21/2019 | | | | 12 | | | USD | 2,850.00 | | | USD | 3,420,000 | | | | 145,392 | |
S&P 500 Index | | | Call | | | | Bank of America, N.A. | | | | 06/21/2019 | | | | 50 | | | USD | 2,920.00 | | | USD | 14,600,000 | | | | 334,487 | |
S&P 500 Index | | | Call | | | | Bank of America, N.A. | | | | 09/20/2019 | | | | 23 | | | USD | 3,025.00 | | | USD | 6,957,500 | | | | 117,461 | |
S&P 500 Index | | | Call | | | | Goldman Sachs International | | | | 07/19/2019 | | | | 11 | | | USD | 3,200.00 | | | USD | 3,520,000 | | | | 2,261 | |
S&P 500 Index | | | Call | | | | Goldman Sachs International | | | | 07/19/2019 | | | | 21 | | | USD | 3,200.00 | | | USD | 6,720,000 | | | | 4,317 | |
S&P 500 Index | | | Call | | | | Goldman Sachs International | | | | 07/19/2019 | | | | 11 | | | USD | 3,225.00 | | | USD | 3,547,500 | | | | 1,607 | |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 1 | | | USD | 3,075.00 | | | USD | 307,500 | | | | 6,036 | |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 1 | | | USD | 3,200.00 | | | USD | 320,000 | | | | 2,230 | |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 1 | | | USD | 3,300.00 | | | USD | 330,000 | | | | 844 | |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 3 | | | USD | 3,400.00 | | | USD | 1,020,000 | | | | 1,185 | |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 4 | | | USD | 3,500.00 | | | USD | 1,400,000 | | | | 823 | |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 3,075.00 | | | USD | 307,500 | | | | 6,036 | |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 3,200.00 | | | USD | 320,000 | | | | 2,230 | |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 3,200.00 | | | USD | 320,000 | | | | 2,230 | |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 3,250.00 | | | USD | 325,000 | | | | 1,349 | |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 3,300.00 | | | USD | 330,000 | | | | 844 | |
Subtotal — Index Call Options Purchased | | | | | | | | 2,240 | | | | | | | | | | | | 1,417,863 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Euro Stoxx Banks Index | | | Put | | | | Bank of America, N.A. | | | | 12/20/2019 | | | | 44 | | | EUR | 95.00 | | | EUR | 209,000 | | | | 15,068 | |
Euro Stoxx Banks Index | | | Put | | | | Goldman Sachs International | | | | 06/21/2019 | | | | 268 | | | EUR | 105.00 | | | EUR | 1,407,000 | | | | 116,610 | |
Euro Stoxx Banks Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 45 | | | EUR | 85.00 | | | EUR | 191,250 | | | | 7,368 | |
Euro Stoxx Banks Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 6 | | | EUR | 95.00 | | | EUR | 28,500 | | | | 2,055 | |
Euro Stoxx Banks Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 06/21/2019 | | | | 268 | | | EUR | 105.00 | | | EUR | 1,407,000 | | | | 116,610 | |
Euro Stoxx Banks Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 234 | | | EUR | 85.00 | | | EUR | 994,500 | | | | 38,316 | |
Euro Stoxx Banks Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 63 | | | EUR | 85.00 | | | EUR | 267,750 | | | | 10,316 | |
Euro Stoxx Banks Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 82 | | | EUR | 95.00 | | | EUR | 389,500 | | | | 28,082 | |
Euro Stoxx Banks Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 39 | | | EUR | 100.00 | | | EUR | 195,000 | | | | 18,684 | |
Euro Stoxx Banks Index | | | Put | | | | UBS AG | | | | 06/21/2019 | | | | 212 | | | EUR | 95.00 | | | EUR | 1,007,000 | | | | 24,503 | |
Euro Stoxx Banks Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 55 | | | EUR | 85.00 | | | EUR | 233,750 | | | | 9,006 | |
Euro Stoxx Banks Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 79 | | | EUR | 85.00 | | | EUR | 335,750 | | | | 12,936 | |
Euro Stoxx Banks Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 30 | | | EUR | 95.00 | | | EUR | 142,500 | | | | 10,274 | |
Hang Seng Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/30/2019 | | | | 14 | | | HKD | 7,900.00 | | | HKD | 5,530,000 | | | | 3,474 | |
Hang Seng Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/30/2019 | | | | 12 | | | HKD | 8,500.00 | | | HKD | 5,100,000 | | | | 4,862 | |
Hang Seng Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/30/2019 | | | | 12 | | | HKD | 9,000.00 | | | HKD | 5,400,000 | | | | 7,462 | |
Hang Seng Index | | | Put | | | | Societe Generale | | | | 12/30/2019 | | | | 14 | | | HKD | 7,900.00 | | | HKD | 5,530,000 | | | | 3,474 | |
Hang Seng Index | | | Put | | | | Societe Generale | | | | 12/30/2019 | | | | 13 | | | HKD | 8,500.00 | | | HKD | 5,525,000 | | | | 5,267 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Index Options Purchased(a)—(continued) | |
| Description | | Type of
Contract | | | Counterparty | | Expiration Date | | | Number of
Contracts | | | Exercise Price | | | Notional Value(b) | | | Value | |
Hang Seng Index | | | Put | | | Societe Generale | | | 12/30/2019 | | | | 12 | | | HKD | 9,000.00 | | | HKD | 5,400,000 | | | $ | 7,463 | |
Hang Seng Index | | | Put | | | UBS AG | | | 12/30/2019 | | | | 14 | | | HKD | 7,900.00 | | | HKD | 5,530,000 | | | | 3,474 | |
Hang Seng Index | | | Put | | | UBS AG | | | 12/30/2019 | | | | 13 | | | HKD | 7,900.00 | | | HKD | 5,135,000 | | | | 3,226 | |
Hang Seng Index | | | Put | | | UBS AG | | | 12/30/2019 | | | | 13 | | | HKD | 8,500.00 | | | HKD | 5,525,000 | | | | 5,267 | |
Hang Seng Index | | | Put | | | UBS AG | | | 12/30/2019 | | | | 13 | | | HKD | 8,500.00 | | | HKD | 5,525,000 | | | | 5,267 | |
Hang Seng Index | | | Put | | | UBS AG | | | 12/30/2019 | | | | 12 | | | HKD | 9,000.00 | | | HKD | 5,400,000 | | | | 7,462 | |
Hang Seng Index | | | Put | | | UBS AG | | | 12/30/2019 | | | | 12 | | | HKD | 9,000.00 | | | HKD | 5,400,000 | | | | 7,462 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 14 | | | USD | 1,300.00 | | | USD | 1,820,000 | | | | 921 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 9 | | | USD | 1,400.00 | | | USD | 1,260,000 | | | | 913 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 4 | | | USD | 1,700.00 | | | USD | 680,000 | | | | 1,274 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 3 | | | USD | 2,000.00 | | | USD | 600,000 | | | | 2,563 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 4 | | | USD | 2,400.00 | | | USD | 960,000 | | | | 10,962 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 5 | | | USD | 1,300.00 | | | USD | 650,000 | | | | 329 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 8 | | | USD | 1,300.00 | | | USD | 1,040,000 | | | | 526 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 1,400.00 | | | USD | 420,000 | | | | 304 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 1,400.00 | | | USD | 420,000 | | | | 304 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 7 | | | USD | 1,500.00 | | | USD | 1,050,000 | | | | 1,064 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 1,500.00 | | | USD | 450,000 | | | | 456 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 11 | | | USD | 1,500.00 | | | USD | 1,650,000 | | | | 1,672 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 4 | | | USD | 1,600.00 | | | USD | 640,000 | | | | 889 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 9 | | | USD | 1,600.00 | | | USD | 1,440,000 | | | | 2,000 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,700.00 | | | USD | 340,000 | | | | 637 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 1,700.00 | | | USD | 510,000 | | | | 955 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,800.00 | | | USD | 360,000 | | | | 897 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,800.00 | | | USD | 360,000 | | | | 897 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 6 | | | USD | 1,900.00 | | | USD | 1,140,000 | | | | 3,738 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 5 | | | USD | 1,900.00 | | | USD | 950,000 | | | | 3,115 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,000.00 | | | USD | 400,000 | | | | 1,709 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 2,000.00 | | | USD | 600,000 | | | | 2,563 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,100.00 | | | USD | 420,000 | | | | 2,317 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,100.00 | | | USD | 420,000 | | | | 2,317 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,250.00 | | | USD | 450,000 | | | | 3,593 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 4 | | | USD | 2,400.00 | | | USD | 960,000 | | | | 10,962 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,550.00 | | | USD | 510,000 | | | | 8,287 | |
Subtotal — Index Put Options Purchased | | | | | | | 1,703 | | | | | | | | | | | | 540,152 | |
Total Index Options Purchased | | | | | | | 3,943 | | | | | | | | | | | $ | 1,958,015 | |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| (b) | Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Foreign Currency Options Purchased(a) | |
| Description | | Type of
Contract | | | Counterparty | | | Expiration Date | | | Exercise
Price | | | Notional Value | | | Value | |
Currency Risk | | | | | | | | | | | | | | | | | | | | | | | | |
AUD versus USD | | | Call | | | | Citigroup Global Markets Inc. | | | | 09/12/2019 | | | USD | 0.72 | | | AUD | 1,198,539 | | | $ | 7,955 | |
AUD versus USD | | | Call | | | | Citigroup Global Markets Inc. | | | | 09/12/2019 | | | USD | 0.73 | | | AUD | 1,019,504 | | | | 22,901 | |
AUD versus USD | | | Call | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.72 | | | AUD | 990,746 | | | | 6,576 | |
AUD versus USD | | | Call | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | AUD | 793,389 | | | | 5,266 | |
AUD versus USD | | | Call | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | AUD | 396,694 | | | | 2,633 | |
AUD versus USD | | | Call | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | AUD | 595,042 | | | | 3,949 | |
AUD versus USD | | | Call | | | | Morgan Stanley & Co. LLC | | | | 12/09/2019 | | | USD | 0.73 | | | AUD | 82,280 | | | | 803 | |
EUR versus USD | | | Call | | | | Goldman Sachs International | | | | 07/17/2019 | | | USD | 1.17 | | | EUR | 2,111,328 | | | | 2,174 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Foreign Currency Options Purchased(a)—(continued) | |
| Description | | Type of
Contract | | | Counterparty | | | Expiration Date | | | Exercise
Price | | | Notional Value | | | Value | |
EUR versus USD | | | Call | | | | Goldman Sachs International | | | | 07/17/2019 | | | USD | 1.17 | | | EUR | 601,176 | | | $ | 619 | |
EUR versus USD | | | Call | | | | Goldman Sachs International | | | | 07/17/2019 | | | USD | 1.17 | | | EUR | 1,095,101 | | | | 1,128 | |
EUR versus USD | | | Call | | | | Goldman Sachs International | | | | 07/17/2019 | | | USD | 1.17 | | | EUR | 1,001,799 | | | | 1,032 | |
USD versus HKD | | | Call | | | | HSBC Bank, N.A. | | | | 04/08/2020 | | | HKD | 7.90 | | | USD | 620,885 | | | | 605 | |
USD versus HKD | | | Call | | | | HSBC Bank, N.A. | | | | 04/08/2020 | | | HKD | 7.90 | | | USD | 693,800 | | | | 676 | |
USD versus HKD | | | Call | | | | HSBC Bank, N.A. | | | | 04/08/2020 | | | HKD | 7.90 | | | USD | 559,600 | | | | 545 | |
USD versus HKD | | | Call | | | | HSBC Bank, N.A. | | | | 04/08/2020 | | | HKD | 7.90 | | | USD | 559,600 | | | | 545 | |
USD versus HKD | | | Call | | | | HSBC Bank, N.A. | | | | 04/08/2020 | | | HKD | 7.90 | | | USD | 1,034,900 | | | | 1,008 | |
Subtotal — Foreign Currency Call Options Purchased | | | | | | | | | | | | | | | | 58,415 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Currency Risk | | | | | | | | | | | | | | | | | | | | | | | | |
AUD versus USD | | | Put | | | | Citigroup Global Markets Inc. | | | | 09/12/2019 | | | USD | 0.72 | | | AUD | 1,198,539 | | | | 28,564 | |
AUD versus USD | | | Put | | | | Citigroup Global Markets Inc. | | | | 09/12/2019 | | | USD | 0.73 | | | AUD | 1,019,504 | | | | 143,088 | |
AUD versus USD | | | Put | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.72 | | | AUD | 990,746 | | | | 23,612 | |
AUD versus USD | | | Put | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | AUD | 793,389 | | | | 18,908 | |
AUD versus USD | | | Put | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | AUD | 396,694 | | | | 9,454 | |
AUD versus USD | | | Put | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | AUD | 595,042 | | | | 14,181 | |
AUD versus USD | | | Put | | | | Morgan Stanley & Co. LLC | | | | 12/09/2019 | | | USD | 0.73 | | | AUD | 82,280 | | | | 2,275 | |
Subtotal — Foreign Currency Put Options Purchased | | | | | | | | | | | | 240,082 | |
Total Foreign Currency Options Purchased | | | | | | | | | | | | | | | $ | 298,497 | |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Interest Rate Swaptions Purchased(a) | |
| Description | | Type of
Contract | | | Counterparty | | | Exercise
Rate | | | Pay/
Receive
Exercise
Rate | | | Floating Rate Index | | | Payment
Frequency | | | Expiration Date | | | Notional Value | | | Value | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
10 Year Interest Rate Swaption | | | Call | | | | Bank of America, N.A. | | | | 3.10 | % | | | Receive | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 03/01/2029 | | | $ | 6,828,191 | | | $ | 396,485 | |
10 Year Interest Rate Swaption | | | Call | | | | Citibank, N.A. | | | | 3.02 | | | | Receive | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 02/21/2029 | | | | 13,082,059 | | | | 722,548 | |
10 Year Interest Rate Swaption | | | Call | | |
| Morgan Stanley Capital
Services LLC |
| | | 2.97 | | | | Receive | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 02/20/2029 | | | | 1,551,650 | | | | 82,337 | |
10 Year Interest Rate Swaption | | | Call | | | | Societe Generale | | | | 2.99 | | | | Receive | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 02/20/2029 | | | | 4,730,100 | | | | 255,811 | |
Subtotal — Interest Rate Call Swaptions Purchased | | | | | | | | | | | | | | | | | | | | | | | | 1,457,181 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5 Year Interest Rate Swaption | | | Put | | | | Citibank, N.A. | | | | 3.45 | | | | Pay | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 05/02/2019 | | | | 1,455,174 | | | | 0 | |
5 Year Interest Rate Swaption | | | Put | | | | Citibank, N.A. | | | | 3.46 | | | | Pay | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 05/02/2019 | | | | 1,492,487 | | | | 0 | |
5 Year Interest Rate Swaption | | | Put | | |
| Morgan Stanley Capital
Services LLC |
| | �� | 3.46 | | | | Pay | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 05/07/2019 | | | | 592,554 | | | | 0 | |
Subtotal — Interest Rate Put Swaptions Purchased | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | |
Total Interest Rate Swaptions Purchased | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,457,181 | |
Total Options Purchased (Cost $3,677,089) | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,713,693 | |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Index Options Written(a) | |
| Description | | Type of
Contract | | | Counterparty | | | Expiration
Date | | | Number of
Contracts | | | Exercise Price | | | Premiums
Received | | | Notional Value(b) | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
Equity Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Euro Stoxx 50 Index | | | Call | | | | UBS AG | | | | 09/20/2019 | | | | 356 | | | EUR | 3,450.00 | | | $ | (299,630 | ) | | EUR | 137,754,982 | | | $ | (452,313 | ) | | $ | (152,683 | ) |
Euro Stoxx Banks Index | | | Call | | | | J.P. Morgan Chase Bank, N.A. | | | | 06/21/2019 | | | | 582 | | | EUR | 120.00 | | | | (3,346 | ) | | EUR | 7,833,258 | | | | (1,306 | ) | | | 2,040 | |
Euro Stoxx Banks Index | | | Call | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 30 | | | EUR | 95.00 | | | | (8,545 | ) | | EUR | 319,656 | | | | (13,749 | ) | | | (5,204 | ) |
Euro Stoxx Banks Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 57 | | | EUR | 95.00 | | | | (21,506 | ) | | EUR | 607,347 | | | | (26,123 | ) | | | (4,617 | ) |
Hang Seng Index | | | Call | | | | Societe Generale | | | | 12/30/2019 | | | | 9 | | | HKD | 11,800.00 | | | | (37,445 | ) | | HKD | 1,353,763 | | | | (27,289 | ) | | | 10,156 | |
Hang Seng Index | | | Call | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/30/2019 | | | | 9 | | | HKD | 11,800.00 | | | | (36,247 | ) | | HKD | 1,353,763 | | | | (27,289 | ) | | | 8,958 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Index Options Written(a)—(continued) | |
| Description | | Type of
Contract | | | Counterparty | | Expiration
Date | | | Number of
Contracts | | | Exercise Price | | | Premiums
Received | | | Notional Value(b) | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
Hang Seng Index | | | Call | | | UBS AG | | | 12/30/2019 | | | | 9 | | | HKD | 11,700.00 | | | $ | (35,488 | ) | | HKD | 1,342,290 | | | $ | (29,555 | ) | | $ | 5,933 | |
Hang Seng Index | | | Call | | | UBS AG | | | 12/30/2019 | | | | 10 | | | HKD | 11,600.00 | | | | (38,434 | ) | | HKD | 1,478,687 | | | | (35,512 | ) | | | 2,922 | |
S&P 500 Index | | | Call | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 3 | | | USD | 2,950.00 | | | | (37,641 | ) | | USD | 885,000 | | | | (39,057 | ) | | | (1,416 | ) |
S&P 500 Index | | | Call | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 2 | | | USD | 3,300.00 | | | | (4,360 | ) | | USD | 660,000 | | | | (1,689 | ) | | | 2,671 | |
S&P 500 Index | | | Call | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 3,600.00 | | | | (700 | ) | | USD | 360,000 | | | | (119 | ) | | | 581 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 2,700.00 | | | | (69,591 | ) | | USD | 810,000 | | | | (94,894 | ) | | | (25,303 | ) |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 3,200.00 | | | | (6,252 | ) | | USD | 640,000 | | | | (4,461 | ) | | | 1,791 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 3,500.00 | | | | (678 | ) | | USD | 700,000 | | | | (411 | ) | | | 267 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,700.00 | | | | (41 | ) | | USD | 370,000 | | | | (73 | ) | | | (32 | ) |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,825.00 | | | | (19,437 | ) | | USD | 282,500 | | | | (21,842 | ) | | | (2,405 | ) |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,075.00 | | | | (7,657 | ) | | USD | 307,500 | | | | (6,036 | ) | | | 1,621 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,400.00 | | | | (1,034 | ) | | USD | 340,000 | | | | (395 | ) | | | 639 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,500.00 | | | | (432 | ) | | USD | 350,000 | | | | (206 | ) | | | 226 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,600.00 | | | | (155 | ) | | USD | 360,000 | | | | (119 | ) | | | 36 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 2,825.00 | | | | (18,901 | ) | | USD | 282,500 | | | | (21,842 | ) | | | (2,941 | ) |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,075.00 | | | | (7,015 | ) | | USD | 307,500 | | | | (6,036 | ) | | | 979 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,250.00 | | | | (2,550 | ) | | USD | 325,000 | | | | (1,349 | ) | | | 1,201 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,400.00 | | | | (884 | ) | | USD | 340,000 | | | | (395 | ) | | | 489 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,500.00 | | | | (440 | ) | | USD | 350,000 | | | | (206 | ) | | | 234 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,600.00 | | | | (130 | ) | | USD | 360,000 | | | | (119 | ) | | | 11 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,300.00 | | | | (2,775 | ) | | USD | 330,000 | | | | (844 | ) | | | 1,931 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,400.00 | | | | (1,170 | ) | | USD | 340,000 | | | | (395 | ) | | | 775 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 3,200.00 | | | | (10,660 | ) | | USD | 640,000 | | | | (4,461 | ) | | | 6,199 | |
S&P 500 Index | | | Call | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 3,200.00 | | | | (5,787 | ) | | USD | 320,000 | | | | (2,230 | ) | | | 3,557 | |
S&P 500 Index | | | Call | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 3,500.00 | | | | (864 | ) | | USD | 350,000 | | | | (206 | ) | | | 658 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,200.00 | | | | (5,751 | ) | | USD | 320,000 | | | | (2,230 | ) | | | 3,521 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,250.00 | | | | (4,302 | ) | | USD | 325,000 | | | | (1,349 | ) | | | 2,953 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,300.00 | | | | (3,142 | ) | | USD | 330,000 | | | | (844 | ) | | | 2,298 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,400.00 | | | | (1,602 | ) | | USD | 340,000 | | | | (395 | ) | | | 1,207 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,500.00 | | | | (824 | ) | | USD | 350,000 | | | | (206 | ) | | | 618 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,600.00 | | | | (460 | ) | | USD | 360,000 | | | | (119 | ) | | | 341 | |
S&P 500 Index | | | Call | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 3,700.00 | | | | (285 | ) | | USD | 370,000 | | | | (73 | ) | | | 212 | |
S&P 500 Index | | | Call | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 3,200.00 | | | | (6,571 | ) | | USD | 320,000 | | | | (2,230 | ) | | | 4,341 | |
S&P 500 Index | | | Call | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 3,250.00 | | | | (4,903 | ) | | USD | 325,000 | | | | (1,349 | ) | | | 3,554 | |
S&P 500 Index | | | Call | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 3,300.00 | | | | (3,538 | ) | | USD | 330,000 | | | | (844 | ) | | | 2,694 | |
S&P 500 Index | | | Call | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 3,500.00 | | | | (737 | ) | | USD | 350,000 | | | | (206 | ) | | | 531 | |
S&P 500 Index | | | Call | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 3,600.00 | | | | (351 | ) | | USD | 360,000 | | | | (119 | ) | | | 232 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,300.00 | | | | (3,120 | ) | | USD | 330,000 | | | | (844 | ) | | | 2,276 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,700.00 | | | | (25 | ) | | USD | 370,000 | | | | (73 | ) | | | (48 | ) |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,200.00 | | | | (6,600 | ) | | USD | 320,000 | | | | (2,230 | ) | | | 4,370 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,400.00 | | | | (2,000 | ) | | USD | 340,000 | | | | (395 | ) | | | 1,605 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 3,500.00 | | | | (1,100 | ) | | USD | 350,000 | | | | (206 | ) | | | 894 | |
S&P 500 Index | | | Call | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 2,925.00 | | | | (19,206 | ) | | USD | 292,500 | | | | (14,685 | ) | | | 4,521 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 4 | | | USD | 3,200.00 | | | | (9,600 | ) | | USD | 1,280,000 | | | | (8,921 | ) | | | 679 | |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,825.00 | | | | (15,200 | ) | | USD | 282,500 | | | | (21,842 | ) | | | (6,642 | ) |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,700.00 | | | | (22,293 | ) | | USD | 270,000 | | | | (31,631 | ) | | | (9,338 | ) |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 3,075.00 | | | | (10,000 | ) | | USD | 615,000 | | | | (12,073 | ) | | | (2,073 | ) |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,925.00 | | | | (20,880 | ) | | USD | 585,000 | | | | (29,371 | ) | | | (8,491 | ) |
S&P 500 Index | | | Call | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,950.00 | | | | (18,000 | ) | | USD | 590,000 | | | | (26,038 | ) | | | (8,038 | ) |
S&P 500 Index | | | Call | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 2,700.00 | | | | (32,050 | ) | | USD | 540,000 | | | | (63,262 | ) | | | (31,212 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Index Options Written(a)—(continued) | |
| Description | | Type of
Contract | | | Counterparty | | | Expiration
Date | | | Number of
Contracts | | | Exercise Price | | | Premiums
Received | | | Notional Value(b) | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 2 | | | USD | 3,500.00 | | | $ | (270 | ) | | USD | 700,000 | | | $ | (411 | ) | | $ | (141 | ) |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 1 | | | USD | 3,600.00 | | | | (77 | ) | | USD | 360,000 | | | | (119 | ) | | | (42 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 3 | | | USD | 2,700.00 | | | | (50,960 | ) | | USD | 810,000 | | | | (94,894 | ) | | | (43,934 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 2 | | | USD | 3,500.00 | | | | (79 | ) | | USD | 700,000 | | | | (411 | ) | | | (332 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 3,600.00 | | | | (11 | ) | | USD | 360,000 | | | | (119 | ) | | | (108 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 3,500.00 | | | | (10 | ) | | USD | 350,000 | | | | (206 | ) | | | (196 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 3 | | | USD | 3,600.00 | | | | (30 | ) | | USD | 1,080,000 | | | | (356 | ) | | | (326 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/20/2019 | | | | 7 | | | USD | 3,700.00 | | | | (70 | ) | | USD | 2,590,000 | | | | (512 | ) | | | (442 | ) |
S&P 500 Index | | | Call | | | | Bank of America, N.A. | | | | 06/21/2019 | | | | 25 | | | USD | 2,850.00 | | | | (185,095 | ) | | USD | 7,125,000 | | | | (302,900 | ) | | | (117,805 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/18/2020 | | | | 1 | | | USD | 3,300.00 | | | | (6,000 | ) | | USD | 330,000 | | | | (7,638 | ) | | | (1,638 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/18/2020 | | | | 1 | | | USD | 3,250.00 | | | | (7,400 | ) | | USD | 325,000 | | | | (9,334 | ) | | | (1,934 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/18/2020 | | | | 1 | | | USD | 3,200.00 | | | | (9,000 | ) | | USD | 320,000 | | | | (11,279 | ) | | | (2,279 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/18/2020 | | | | 1 | | | USD | 3,075.00 | | | | (13,930 | ) | | USD | 307,500 | | | | (17,070 | ) | | | (3,140 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/18/2020 | | | | 1 | | | USD | 2,950.00 | | | | (20,170 | ) | | USD | 295,000 | | | | (24,074 | ) | | | (3,904 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/18/2020 | | | | 1 | | | USD | 2,925.00 | | | | (21,551 | ) | | USD | 292,500 | | | | (25,591 | ) | | | (4,040 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/18/2020 | | | | 1 | | | USD | 2,825.00 | | | | (26,618 | ) | | USD | 282,500 | | | | (31,931 | ) | | | (5,313 | ) |
S&P 500 Index | | | Call | | | | UBS AG | | | | 12/18/2020 | | | | 1 | | | USD | 2,700.00 | | | | (34,824 | ) | | USD | 270,000 | | | | (40,464 | ) | | | (5,640 | ) |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 1 | | | USD | 2,925.00 | | | | (12,368 | ) | | USD | 292,500 | | | | (14,685 | ) | | | (2,317 | ) |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 4 | | | USD | 3,700.00 | | | | (400 | ) | | USD | 1,480,000 | | | | (293 | ) | | | 107 | |
S&P 500 Index | | | Call | | | | Societe Generale | | | | 12/20/2019 | | | | 2 | | | USD | 3,250.00 | | | | (2,000 | ) | | USD | 650,000 | | | | (2,698 | ) | | | (698 | ) |
S&P 500 Index | | | Call | | | | Bank of America, N.A. | | | | 09/20/2019 | | | | 11 | | | USD | 2,925.00 | | | | (109,935 | ) | | USD | 3,217,500 | | | | (122,006 | ) | | | (12,071 | ) |
S&P 500 Index | | | Call | | | | Bank of America, N.A. | | | | 06/21/2019 | | | | 25 | | | USD | 2,920.00 | | | | (140,001 | ) | | USD | 7,300,000 | | | | (167,244 | ) | | | (27,243 | ) |
Subtotal — Index Call Options Written | | | | | | | | 1,221 | | | | | | | | (1,513,134 | ) | | | | | | | (1,916,291 | ) | | | (403,157 | ) |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Euro Stoxx 50 Index | | | Put | | | | UBS AG | | | | 09/20/2019 | | | | 89 | | | EUR | 3,100.00 | | | | (45,136 | ) | | EUR | 30,944,960 | | | | (36,078 | ) | | | 9,058 | |
Euro Stoxx 50 Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 05/17/2019 | | | | 98 | | | EUR | 3,125.00 | | | | (3,012 | ) | | EUR | 34,349,017 | | | | (1,457 | ) | | | 1,555 | |
Euro Stoxx Banks Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 06/21/2019 | | | | 536 | | | EUR | 105.00 | | | | (573,177 | ) | | EUR | 6,312,368 | | | | (233,220 | ) | | | 339,957 | |
Euro Stoxx Banks Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 06/21/2019 | | | | 212 | | | EUR | 95.00 | | | | (127,979 | ) | | EUR | 2,258,904 | | | | (24,503 | ) | | | 103,476 | |
Euro Stoxx Banks Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 31 | | | EUR | 85.00 | | | | (10,046 | ) | | EUR | 295,542 | | | | (5,076 | ) | | | 4,970 | |
Euro Stoxx Banks Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 68 | | | EUR | 85.00 | | | | (16,288 | ) | | EUR | 648,285 | | | | (11,135 | ) | | | 5,153 | |
S&P 500 Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 7 | | | USD | 1,500.00 | | | | (6,566 | ) | | USD | 1,050,000 | | | | (1,064 | ) | | | 5,502 | |
S&P 500 Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 7 | | | USD | 1,900.00 | | | | (21,000 | ) | | USD | 1,330,000 | | | | (4,361 | ) | | | 16,639 | |
S&P 500 Index | | | Put | | | | J.P. Morgan Chase Bank, N.A. | | | | 12/20/2019 | | | | 4 | | | USD | 2,400.00 | | | | (31,660 | ) | | USD | 960,000 | | | | (10,962 | ) | | | 20,698 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 6 | | | USD | 1,300.00 | | | | (3,192 | ) | | USD | 780,000 | | | | (395 | ) | | | 2,797 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 6 | | | USD | 1,700.00 | | | | (13,080 | ) | | USD | 1,020,000 | | | | (1,911 | ) | | | 11,169 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 5 | | | USD | 2,100.00 | | | | (28,403 | ) | | USD | 1,050,000 | | | | (5,793 | ) | | | 22,610 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 2 | | | USD | 1,400.00 | | | | (924 | ) | | USD | 280,000 | | | | (203 | ) | | | 721 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 2 | | | USD | 1,600.00 | | | | (2,029 | ) | | USD | 320,000 | | | | (445 | ) | | | 1,584 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 1,800.00 | | | | (1,913 | ) | | USD | 180,000 | | | | (449 | ) | | | 1,464 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 2 | | | USD | 2,000.00 | | | | (6,482 | ) | | USD | 400,000 | | | | (1,709 | ) | | | 4,773 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 1 | | | USD | 2,250.00 | | | | (5,695 | ) | | USD | 225,000 | | | | (1,797 | ) | | | 3,898 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 2 | | | USD | 2,550.00 | | | | (21,058 | ) | | USD | 510,000 | | | | (8,287 | ) | | | 12,771 | |
S&P 500 Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 2 | | | USD | 1,400.00 | | | | (984 | ) | | USD | 280,000 | | | | (203 | ) | | | 781 | |
S&P 500 Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 3 | | | USD | 1,600.00 | | | | (3,341 | ) | | USD | 480,000 | | | | (667 | ) | | | 2,674 | |
S&P 500 Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 2 | | | USD | 1,800.00 | | | | (3,823 | ) | | USD | 360,000 | | | | (897 | ) | | | 2,926 | |
S&P 500 Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 3 | | | USD | 2,000.00 | | | | (9,408 | ) | | USD | 600,000 | | | | (2,563 | ) | | | 6,845 | |
S&P 500 Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 2 | | | USD | 2,250.00 | | | | (11,167 | ) | | USD | 450,000 | | | | (3,593 | ) | | | 7,574 | |
S&P 500 Index | | | Put | | | | Goldman Sachs International | | | | 12/20/2019 | | | | 1 | | | USD | 2,550.00 | | | | (10,587 | ) | | USD | 255,000 | | | | (4,143 | ) | | | 6,444 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 5 | | | USD | 1,900.00 | | | | (8,150 | ) | | USD | 950,000 | | | | (3,115 | ) | | | 5,035 | |
S&P 500 Index | | | Put | | | | UBS AG | | | | 12/20/2019 | | | | 2 | | | USD | 1,800.00 | | | | (2,460 | ) | | USD | 360,000 | | | | (897 | ) | | | 1,563 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Index Options Written(a)—(continued) | |
| Description | | Type of
Contract | | | Counterparty | | Expiration
Date | | | Number of
Contracts | | | Exercise Price | | | Premiums
Received | | | Notional Value(b) | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 2,000.00 | | | $ | (6,420 | ) | | USD | 600,000 | | | $ | (2,563 | ) | | $ | 3,857 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 1,600.00 | | | | (2,190 | ) | | USD | 480,000 | | | | (667 | ) | | | 1,523 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 4 | | | USD | 1,700.00 | | | | (4,000 | ) | | USD | 680,000 | | | | (1,274 | ) | | | 2,726 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 4 | | | USD | 1,300.00 | | | | (720 | ) | | USD | 520,000 | | | | (263 | ) | | | 457 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 6 | | | USD | 1,500.00 | | | | (2,760 | ) | | USD | 900,000 | | | | (912 | ) | | | 1,848 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,400.00 | | | | (636 | ) | | USD | 280,000 | | | | (203 | ) | | | 433 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,550.00 | | | | (14,360 | ) | | USD | 510,000 | | | | (8,287 | ) | | | 6,073 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,100.00 | | | | (5,520 | ) | | USD | 420,000 | | | | (2,317 | ) | | | 3,203 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 2,400.00 | | | | (15,840 | ) | | USD | 720,000 | | | | (8,221 | ) | | | 7,619 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,250.00 | | | | (3,990 | ) | | USD | 225,000 | | | | (1,797 | ) | | | 2,193 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 1,400.00 | | | | (354 | ) | | USD | 140,000 | | | | (101 | ) | | | 253 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 1,500.00 | | | | (968 | ) | | USD | 300,000 | | | | (304 | ) | | | 664 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 1,800.00 | | | | (1,145 | ) | | USD | 180,000 | | | | (449 | ) | | | 696 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 1,900.00 | | | | (1,494 | ) | | USD | 190,000 | | | | (623 | ) | | | 871 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,000.00 | | | | (1,931 | ) | | USD | 200,000 | | | | (854 | ) | | | 1,077 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,400.00 | | | | (4,978 | ) | | USD | 240,000 | | | | (2,740 | ) | | | 2,238 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,550.00 | | | | (6,962 | ) | | USD | 255,000 | | | | (4,143 | ) | | | 2,819 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 2 | | | USD | 1,300.00 | | | | (412 | ) | | USD | 260,000 | | | | (132 | ) | | | 280 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 1,400.00 | | | | (335 | ) | | USD | 140,000 | | | | (101 | ) | | | 234 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 3 | | | USD | 1,500.00 | | | | (1,539 | ) | | USD | 450,000 | | | | (456 | ) | | | 1,083 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 2 | | | USD | 1,600.00 | | | | (1,495 | ) | | USD | 320,000 | | | | (445 | ) | | | 1,050 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 2 | | | USD | 1,700.00 | | | | (2,092 | ) | | USD | 340,000 | | | | (637 | ) | | | 1,455 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 1,800.00 | | | | (1,420 | ) | | USD | 180,000 | | | | (449 | ) | | | 971 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 3 | | | USD | 1,900.00 | | | | (5,631 | ) | | USD | 570,000 | | | | (1,869 | ) | | | 3,762 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 2,000.00 | | | | (2,431 | ) | | USD | 200,000 | | | | (854 | ) | | | 1,577 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 2,100.00 | | | | (3,097 | ) | | USD | 210,000 | | | | (1,159 | ) | | | 1,938 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 2 | | | USD | 2,400.00 | | | | (7,572 | ) | | USD | 480,000 | | | | (5,481 | ) | | | 2,091 | |
S&P 500 Index | | | Put | | | J.P. Morgan Chase Bank, N.A. | | | 12/20/2019 | | | | 1 | | | USD | 2,550.00 | | | | (8,172 | ) | | USD | 255,000 | | | | (4,143 | ) | | | 4,029 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 5 | | | USD | 1,300.00 | | | | (1,496 | ) | | USD | 650,000 | | | | (329 | ) | | | 1,167 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 3 | | | USD | 1,400.00 | | | | (1,233 | ) | | USD | 420,000 | | | | (304 | ) | | | 929 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 5 | | | USD | 1,500.00 | | | | (2,790 | ) | | USD | 750,000 | | | | (760 | ) | | | 2,030 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 3 | | | USD | 1,600.00 | | | | (2,255 | ) | | USD | 480,000 | | | | (667 | ) | | | 1,588 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 3 | | | USD | 1,700.00 | | | | (2,998 | ) | | USD | 510,000 | | | | (955 | ) | | | 2,043 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 2 | | | USD | 1,800.00 | | | | (2,622 | ) | | USD | 360,000 | | | | (897 | ) | | | 1,725 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 5 | | | USD | 1,900.00 | | | | (8,442 | ) | | USD | 950,000 | | | | (3,115 | ) | | | 5,327 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 3 | | | USD | 2,000.00 | | | | (6,600 | ) | | USD | 600,000 | | | | (2,563 | ) | | | 4,037 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 2 | | | USD | 2,100.00 | | | | (5,441 | ) | | USD | 420,000 | | | | (2,317 | ) | | | 3,124 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 1 | | | USD | 2,250.00 | | | | (3,840 | ) | | USD | 225,000 | | | | (1,797 | ) | | | 2,043 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 4 | | | USD | 2,400.00 | | | | (21,418 | ) | | USD | 960,000 | | | | (10,962 | ) | | | 10,456 | |
S&P 500 Index | | | Put | | | Goldman Sachs International | | | 12/20/2019 | | | | 2 | | | USD | 2,550.00 | | | | (14,813 | ) | | USD | 510,000 | | | | (8,287 | ) | | | 6,526 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 3 | | | USD | 1,300.00 | | | | (792 | ) | | USD | 390,000 | | | | (197 | ) | | | 595 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 1,400.00 | | | | (730 | ) | | USD | 280,000 | | | | (203 | ) | | | 527 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 3 | | | USD | 1,500.00 | | | | (1,485 | ) | | USD | 450,000 | | | | (456 | ) | | | 1,029 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 1,600.00 | | | | (1,327 | ) | | USD | 320,000 | | | | (445 | ) | | | 882 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 3 | | | USD | 1,700.00 | | | | (2,631 | ) | | USD | 510,000 | | | | (955 | ) | | | 1,676 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 1,800.00 | | | | (1,148 | ) | | USD | 180,000 | | | | (449 | ) | | | 699 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 3 | | | USD | 1,900.00 | | | | (4,467 | ) | | USD | 570,000 | | | | (1,869 | ) | | | 2,598 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 2,000.00 | | | | (3,826 | ) | | USD | 400,000 | | | | (1,709 | ) | | | 2,117 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,100.00 | | | | (2,437 | ) | | USD | 210,000 | | | | (1,159 | ) | | | 1,278 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,250.00 | | | | (3,454 | ) | | USD | 225,000 | | | | (1,797 | ) | | | 1,657 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
19 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Index Options Written(a)—(continued) | |
| Description | | Type of
Contract | | | Counterparty | | Expiration
Date | | | Number of
Contracts | | | Exercise Price | | | Premiums
Received | | | Notional Value(b) | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 2,400.00 | | | $ | (9,640 | ) | | USD | 480,000 | | | $ | (5,481 | ) | | $ | 4,159 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,550.00 | | | | (6,675 | ) | | USD | 255,000 | | | | (4,143 | ) | | | 2,532 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 1,300.00 | | | | (159 | ) | | USD | 130,000 | | | | (66 | ) | | | 93 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 1,400.00 | | | | (262 | ) | | USD | 140,000 | | | | (101 | ) | | | 161 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,500.00 | | | | (966 | ) | | USD | 300,000 | | | | (304 | ) | | | 662 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,600.00 | | | | (1,220 | ) | | USD | 320,000 | | | | (445 | ) | | | 775 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,700.00 | | | | (1,741 | ) | | USD | 340,000 | | | | (637 | ) | | | 1,104 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 1,800.00 | | | | (1,201 | ) | | USD | 180,000 | | | | (449 | ) | | | 752 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,900.00 | | | | (3,218 | ) | | USD | 380,000 | | | | (1,246 | ) | | | 1,972 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,000.00 | | | | (2,105 | ) | | USD | 200,000 | | | | (854 | ) | | | 1,251 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,250.00 | | | | (3,813 | ) | | USD | 225,000 | | | | (1,797 | ) | | | 2,016 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,400.00 | | | | (5,089 | ) | | USD | 240,000 | | | | (2,740 | ) | | | 2,349 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,300.00 | | | | (600 | ) | | USD | 260,000 | | | | (132 | ) | | | 468 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,500.00 | | | | (1,200 | ) | | USD | 300,000 | | | | (304 | ) | | | 896 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,600.00 | | | | (1,600 | ) | | USD | 320,000 | | | | (444 | ) | | | 1,156 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 1,700.00 | | | | (1,100 | ) | | USD | 170,000 | | | | (318 | ) | | | 782 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 1,800.00 | | | | (1,400 | ) | | USD | 180,000 | | | | (449 | ) | | | 951 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,900.00 | | | | (3,600 | ) | | USD | 380,000 | | | | (1,246 | ) | | | 2,354 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,000.00 | | | | (2,300 | ) | | USD | 200,000 | | | | (854 | ) | | | 1,446 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,100.00 | | | | (2,900 | ) | | USD | 210,000 | | | | (1,159 | ) | | | 1,741 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,400.00 | | | | (5,600 | ) | | USD | 240,000 | | | | (2,740 | ) | | | 2,860 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,550.00 | | | | (7,700 | ) | | USD | 255,000 | | | | (4,143 | ) | | | 3,557 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 5 | | | USD | 1,300.00 | | | | (1,123 | ) | | USD | 650,000 | | | | (329 | ) | | | 794 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 5 | | | USD | 1,400.00 | | | | (1,610 | ) | | USD | 700,000 | | | | (507 | ) | | | 1,103 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 5 | | | USD | 1,500.00 | | | | (2,365 | ) | | USD | 750,000 | | | | (760 | ) | | | 1,605 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 4 | | | USD | 1,600.00 | | | | (2,720 | ) | | USD | 640,000 | | | | (889 | ) | | | 1,831 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 1,700.00 | | | | (1,926 | ) | | USD | 340,000 | | | | (637 | ) | | | 1,289 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 1,800.00 | | | | (1,342 | ) | | USD | 180,000 | | | | (449 | ) | | | 893 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 1,900.00 | | | | (1,844 | ) | | USD | 190,000 | | | | (623 | ) | | | 1,221 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,000.00 | | | | (2,497 | ) | | USD | 200,000 | | | | (854 | ) | | | 1,643 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 2,100.00 | | | | (6,658 | ) | | USD | 420,000 | | | | (2,317 | ) | | | 4,341 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,400.00 | | | | (7,377 | ) | | USD | 240,000 | | | | (2,740 | ) | | | 4,637 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,550.00 | | | | (10,842 | ) | | USD | 255,000 | | | | (4,143 | ) | | | 6,699 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 1 | | | USD | 2,700.00 | | | | (15,839 | ) | | USD | 270,000 | | | | (6,217 | ) | | | 9,622 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 5 | | | USD | 1,300.00 | | | | (431 | ) | | USD | 650,000 | | | | (329 | ) | | | 102 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 4 | | | USD | 1,400.00 | | | | (671 | ) | | USD | 560,000 | | | | (406 | ) | | | 265 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 4 | | | USD | 1,500.00 | | | | (1,202 | ) | | USD | 600,000 | | | | (608 | ) | | | 594 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 4 | | | USD | 1,600.00 | | | | (2,009 | ) | | USD | 640,000 | | | | (889 | ) | | | 1,120 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 1,700.00 | | | | (791 | ) | | USD | 170,000 | | | | (318 | ) | | | 473 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,800.00 | | | | (2,373 | ) | | USD | 360,000 | | | | (897 | ) | | | 1,476 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,900.00 | | | | (3,410 | ) | | USD | 380,000 | | | | (1,246 | ) | | | 2,164 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,000.00 | | | | (4,730 | ) | | USD | 400,000 | | | | (1,709 | ) | | | 3,021 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,100.00 | | | | (6,371 | ) | | USD | 420,000 | | | | (2,317 | ) | | | 4,054 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,400.00 | | | | (13,970 | ) | | USD | 480,000 | | | | (5,481 | ) | | | 8,489 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,550.00 | | | | (10,133 | ) | | USD | 255,000 | | | | (4,143 | ) | | | 5,990 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,700.00 | | | | (29,583 | ) | | USD | 540,000 | | | | (12,434 | ) | | | 17,149 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 1,800.00 | | | | (792 | ) | | USD | 180,000 | | | | (449 | ) | | | 343 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 1,900.00 | | | | (2,288 | ) | | USD | 380,000 | | | | (1,246 | ) | | | 1,042 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,000.00 | | | | (1,600 | ) | | USD | 200,000 | | | | (854 | ) | | | 746 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,100.00 | | | | (2,185 | ) | | USD | 210,000 | | | | (1,159 | ) | | | 1,026 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
20 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Index Options Written(a)—(continued) | |
| Description | | Type of
Contract | | | Counterparty | | Expiration
Date | | | Number of
Contracts | | | Exercise Price | | | Premiums
Received | | | Notional Value(b) | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,250.00 | | | $ | (6,727 | ) | | USD | 450,000 | | | $ | (3,593 | ) | | $ | 3,134 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,400.00 | | | | (5,048 | ) | | USD | 240,000 | | | | (2,740 | ) | | | 2,308 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 1 | | | USD | 2,550.00 | | | | (7,505 | ) | | USD | 255,000 | | | | (4,143 | ) | | | 3,362 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 3 | | | USD | 2,700.00 | | | | (35,579 | ) | | USD | 810,000 | | | | (18,651 | ) | | | 16,928 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/20/2019 | | | | 2 | | | USD | 2,825.00 | | | | (32,828 | ) | | USD | 565,000 | | | | (17,475 | ) | | | 15,353 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/18/2020 | | | | 1 | | | USD | 2,700.00 | | | | (14,455 | ) | | USD | 270,000 | | | | (14,095 | ) | | | 360 | |
S&P 500 Index | | | Put | | | UBS AG | | | 12/18/2020 | | | | 1 | | | USD | 2,550.00 | | | | (10,816 | ) | | USD | 255,000 | | | | (10,735 | ) | | | 81 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 2,700.00 | | | | (13,200 | ) | | USD | 540,000 | | | | (12,434 | ) | | | 766 | |
S&P 500 Index | | | Put | | | Societe Generale | | | 12/20/2019 | | | | 2 | | | USD | 2,825.00 | | | | (18,600 | ) | | USD | 565,000 | | | | (17,475 | ) | | | 1,125 | |
Subtotal — Index Put Options Written | | | | 1,326 | | | | | | | | (1,519,798 | ) | | | | | | | (644,902 | ) | | | 874,896 | |
Total — Index Options Written | | | | 2,547 | | | | | | | $ | (3,032,932 | ) | | | | | | $ | (2,561,193 | ) | | $ | 471,739 | |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| (b) | Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Foreign Currency Options Written(a) | |
| Description | | Type of
Contract | | | Counterparty | | | Expiration
Date | | | Exercise
Price | | | Premiums
Received | | | Notional
Value | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
Currency Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AUD versus USD | | | Call | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.72 | | | | $ (7,262) | | | AUD | 1,248,478 | | | $ | (7,761 | ) | | | $ (499) | |
AUD versus USD | | | Call | | | | Citigroup Global Markets Inc. | | | | 12/09/2019 | | | USD | 0.73 | | | | (30,715 | ) | | AUD | 82,280 | | | | (19,474 | ) | | | 11,241 | |
AUD versus USD | | | Call | | | | Citigroup Global Markets Inc. | | | | 09/12/2019 | | | USD | 0.72 | | | | (14,401 | ) | | AUD | 1,248,478 | | | | (7,762 | ) | | | 6,639 | |
AUD versus USD | | | Call | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.72 | | | | (9,660 | ) | | AUD | 1,248,479 | | | | (7,762 | ) | | | 1,898 | |
AUD versus USD | | | Call | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | | (6,322 | ) | | AUD | 1,248,479 | | | | (7,762 | ) | | | (1,440 | ) |
Subtotal — Foreign Currency Call Options Written | | | | | | | | | | | | (68,360 | ) | | | | | | | (50,521 | ) | | | 17,839 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AUD versus USD | | | Put | | | | Citigroup Global Markets Inc. | | | | 09/12/2019 | | | USD | 0.72 | | | | (29,019 | ) | | AUD | 1,248,478 | | | | (29,413 | ) | | | (394 | ) |
AUD versus USD | | | Put | | | | Citigroup Global Markets Inc. | | | | 12/09/2019 | | | USD | 0.73 | | | | (101,904 | ) | | AUD | 82,280 | | | | (122,725 | ) | | | (20,821 | ) |
AUD versus USD | | | Put | | | | Citigroup Global Markets Inc. | | | | 09/12/2019 | | | USD | 0.72 | | | | (18,479 | ) | | AUD | 1,248,478 | | | | (29,413 | ) | | | (10,934 | ) |
AUD versus USD | | | Put | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | | (24,298 | ) | | AUD | 1,248,479 | | | | (29,414 | ) | | | (5,116 | ) |
AUD versus USD | | | Put | | | | J.P. Morgan Securities LLC | | | | 09/12/2019 | | | USD | 0.73 | | | | (33,483 | ) | | AUD | 1,248,479 | | | | (29,413 | ) | | | 4,070 | |
Subtotal — Foreign Currency Put Options Written | | | | | | | | | | | | (207,183 | ) | | | | | | | (240,378 | ) | | | (33,195 | ) |
Total Foreign Currency Options Written | | | | | | | | | | | | (275,543 | ) | | | | | | | (290,899 | ) | | | (15,356 | ) |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Interest Rate Swaptions Written(a) | | | | |
| Description | | Type of
Contract | | | Counterparty | | | Exercise
Rate | | | Pay/ Receive
Exercise
Rate | | | Floating Rate Index | | | Payment
Frequency | | | Expiration
Date | | | Premiums
Received | | | Notional
Value | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
10 Year Interest Rate Swaption | | | Call | | | | Citibank, N.A. | | | | 2.84 | % | | | Receive | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 02/21/2029 | | | $ | (213,971 | ) | | $ | 4,072,537 | | | $ | (197,750 | ) | | $ | 16,221 | |
10 Year Interest Rate Swaption | | | Call | | | | Citibank, N.A. | | | | 2.86 | | | | Receive | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 02/21/2029 | | | | (213,166 | ) | | | 4,071,926 | | | | (199,565 | ) | | | 13,601 | |
10 Year Interest Rate Swaption | | | Call | | | | Citibank, N.A. | | | | 2.91 | | | | Receive | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 02/21/2029 | | | | (205,052 | ) | | | 4,072,537 | | | | (207,545 | ) | | | (2,493 | ) |
Subtotal — Interest Rate Call Swaptions Written | | | | | | | | | | | | | | | | (632,189 | ) | | | | | | | (604,860 | ) | | | 27,329 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5 Year Interest Rate Swaption | | | Put | | |
| Barclays Bank
PLC |
| | | 3.30 | | | | Pay | | | | 3 Month USD LIBOR | | | | Quarterly | | | | 05/28/2019 | | | | (5,365 | ) | | | 1,369,000 | | | | 0 | | | | 5,365 | |
Subtotal — Interest Rate Put Swaptions Written | | | | | | | | | | | | | | | | | | | | (5,365 | ) | | | | | | | 0 | | | | 5,365 | |
Total — Interest Rate Swaptions Written | | | | | | | | | | | | | | | | | | | $ | (637,554 | ) | | | | | | $ | (604,860 | ) | | $ | 32,694 | |
Total Options Written | | | | | | | | | | | | | | | | | | | $ | (3,946,029 | ) | | | | | | $ | (3,456,952 | ) | | $ | 489,077 | |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
21 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | |
| Open Futures Contracts(a) | |
| Long Futures Contracts | | Number of
Contracts | | | Expiration
Month | | | Notional
Value | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
Equity Risk | | | | | | | | | | | | | | | | | | | | |
E-Mini S&P 500 Index | | | 17 | | | | June-2019 | | | $ | 2,506,225 | | | $ | 17,451 | | | $ | 17,451 | |
Hang Seng China Enterprise Index | | | 26 | | | | May-2019 | | | | 1,900,584 | | | | (2,956 | ) | | | (2,956 | ) |
IBEX 35 Index | | | 39 | | | | May-2019 | | | | 4,181,907 | | | | 45,513 | | | | 45,513 | |
MSCI Taiwan Index | | | 20 | | | | May-2019 | | | | 817,400 | | | | (3,780 | ) | | | (3,780 | ) |
Nikkei 225 Index | | | 28 | | | | June-2019 | | | | 2,805,781 | | | | 96,382 | | | | 96,382 | |
Subtotal | | | | | | | | | | | | | | | 152,610 | | | | 152,610 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | |
Euro-Buxl 30 Year Bonds | | | 2 | | | | June-2019 | | | | 423,382 | | | | 15,501 | | | | 15,501 | |
Euro Bund | | | 2 | | | | June-2019 | | | | 370,824 | | | | 5,698 | | | | 5,698 | |
Subtotal | | | | | | | | | | | | | | | 21,199 | | | | 21,199 | |
Subtotal — Long Futures Contracts | | | | | | | | | | | | | | | 173,809 | | | | 173,809 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | |
Short Futures Contracts | | | | | | | | | | | | | | | | | | | | |
Equity Risk | | | | | | | | | | | | | | | | | | | | |
Bovespa Index | | | 10 | | | | June-2019 | | | | (247,443 | ) | | | (7,766 | ) | | | (7,766 | ) |
CAC 40 Index | | | 34 | | | | May-2019 | | | | (2,115,126 | ) | | | (37,029 | ) | | | (37,029 | ) |
DAX Index | | | 6 | | | | June-2019 | | | | (2,077,933 | ) | | | (133,608 | ) | | | (133,608 | ) |
E-Mini Russell 2000 Index | | | 77 | | | | June-2019 | | | | (6,137,670 | ) | | | (229,494 | ) | | | (229,494 | ) |
EURO STOXX 50 Index | | | 115 | | | | June-2019 | | | | (4,452,530 | ) | | | (130,021 | ) | | | (130,021 | ) |
Euro Stoxx Bank | | | 121 | | | | June-2019 | | | | (665,676 | ) | | | 4,016 | | | | 4,016 | |
FTSE 100 Index | | | 56 | | | | June-2019 | | | | (5,382,965 | ) | | | (145,260 | ) | | | (145,260 | ) |
MSCI AC Asia ex Japan Index | | | 20 | | | | June-2019 | | | | (981,890 | ) | | | (28,088 | ) | | | (28,088 | ) |
Russell UK Mid 150 Index | | | 26 | | | | June-2019 | | | | (1,346,954 | ) | | | (72,603 | ) | | | (72,603 | ) |
Subtotal | | | | | | | | | | | | | | | (779,853 | ) | | | (779,853 | ) |
| | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | |
Euro-OAT | | | 22 | | | | June-2019 | | | | (3,997,385 | ) | | | (92,824 | ) | | | (92,824 | ) |
Long Gilt | | | 3 | | | | June-2019 | | | | (498,076 | ) | | | (208 | ) | | | (208 | ) |
U.S. Treasury 5 Year Notes | | | 2 | | | | June-2019 | | | | (231,281 | ) | | | (1,891 | ) | | | (1,891 | ) |
U.S. Treasury 10 Year Notes | | | 5 | | | | June-2019 | | | | (618,359 | ) | | | (6,727 | ) | | | (6,727 | ) |
U.S. Treasury Long Bond Future | | | 1 | | | | June-2019 | | | | (147,469 | ) | | | (2,102 | ) | | | (2,102 | ) |
Subtotal | | | | | | | | | | | | | | | (103,752 | ) | | | (103,752 | ) |
Subtotal — Short Futures Contracts | | | | | | | | | | | | | | | (883,605 | ) | | | (883,605 | ) |
Total Futures Contracts | | | | | | | | | | | | | | $ | (709,796 | ) | | $ | (709,796 | ) |
| (a) | Futures contracts collateralized by $3,167,734 cash held with Bank of America Merrill Lynch, the futures commission merchant. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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
(Depreciation)(c) | |
Credit Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Markit iTraxx Europe Crossover Index, Series 31, Version 1 | | | Buy | | | | (5.00 | )% | | | Quarterly | | | | 06/20/2024 | | | | 2.490 | % | | | EUR 100,000 | | | $ | (6,882 | ) | | | $ (13,234) | | | | $ (6,352) | |
Markit iTraxx Europe Index, Series 31, Version 1 | | | Sell | | | | 1.00 | | | | Quarterly | | | | 06/20/2024 | | | | 0.580 | | | EUR | 6,148,000 | | | | (125,851 | ) | | | (147,505 | ) | | | (21,654 | ) |
Total Credit Default Swap Agreements | | | | | | | | | | | | | | | | | | | $ | (132,733 | ) | | $ | (160,739 | ) | | $ | (28,006 | ) |
| (a) | Centrally cleared swap agreements collateralized by $575,704 cash held with Credit Suisse Securities (USA) LLC. |
| (b) | Implied credit spreads represent the current level, as of April 30, 2019, 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. |
| (c) | The daily variation margin receivable (payable) at period end is recorded in the Consolidated Statement of Assets and Liabilities. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
22 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Interest Rate Swap Agreements(a) | |
Pay/Receive Floating Rate | | Floating Rate Index | | Payment Frequency | | | (Pay)/ Receive Fixed Rate | | | Payment Frequency | | | Maturity Date | | | Notional
Value | | | Upfront Payments Paid (Received) | | | Value | | | Unrealized Appreciation (Depreciation)(b) | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 3.032 | % | | | Semi-Annually | | | | 09/16/2023 | | | USD | 2,287,000 | | | $ | — | | | $ | 51,484 | | | $ | 51,484 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 3.031 | | | | Semi-Annually | | | | 09/16/2023 | | | USD | 2,287,000 | | | | — | | | | 51,387 | | | | 51,387 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 2.542 | | | | Semi-Annually | | | | 03/17/2024 | | | USD | 6,329,353 | | | | — | | | | 48,188 | | | | 48,188 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 2.540 | | | | Semi-Annually | | | | 03/17/2024 | | | USD | 6,329,352 | | | | — | | | | 47,747 | | | | 47,747 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 2.516 | | | | Semi-Annually | | | | 03/17/2024 | | | USD | 6,329,352 | | | | — | | | | 43,603 | | | | 43,603 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 2.513 | | | | Semi-Annually | | | | 03/17/2024 | | | USD | 6,329,353 | | | | — | | | | 42,898 | | | | 42,898 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 2.501 | | | | Semi-Annually | | | | 03/17/2024 | | | USD | 6,481,867 | | | | — | | | | 41,900 | | | | 41,900 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.479 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 24,370 | | | | 24,370 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.478 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 24,294 | | | | 24,294 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.457 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 23,415 | | | | 23,415 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.454 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 23,311 | | | | 23,311 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.452 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 23,227 | | | | 23,227 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.451 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 23,198 | | | | 23,198 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.445 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 22,913 | | | | 22,913 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.442 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 22,808 | | | | 22,808 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.437 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 22,612 | | | | 22,612 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.427 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 22,193 | | | | 22,193 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.413 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 21,574 | | | | 21,574 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.408 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 21,385 | | | | 21,385 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.250 | | | | Semi-Annually | | | | 03/20/2022 | | | CAD | 2,720,500 | | | | — | | | | 20,262 | | | | 20,262 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.244 | | | | Semi-Annually | | | | 03/20/2022 | | | CAD | 2,720,500 | | | | — | | | | 19,904 | | | | 19,904 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.363 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 19,481 | | | | 19,481 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.475 | | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 876,000 | | | | — | | | | 18,985 | | | | 18,985 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.285 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,171,717 | | | | — | | | | 16,236 | | | | 16,236 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.370 | | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 1,080,000 | | | | — | | | | 15,731 | | | | 15,731 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.280 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 2,086,103 | | | | — | | | | 15,395 | | | | 15,395 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 2.585 | | | | Semi-Annually | | | | 03/17/2024 | | | USD | 1,500,343 | | | | — | | | | 13,199 | | | | 13,199 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 2.568 | | | | Semi-Annually | | | | 03/17/2024 | | | USD | 1,500,343 | | | | — | | | | 12,489 | | | | 12,489 | |
Pay | | 3 Month USD LIBOR | | | Semi-Annually | | | | 2.567 | | | | Semi-Annually | | | | 03/17/2024 | | | USD | 1,500,343 | | | | — | | | | 12,447 | | | | 12,447 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.462 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 12,129 | | | | 12,129 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.455 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 11,854 | | | | 11,854 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.454 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,814 | | | | 11,814 | |
Pay | | 3 Month CDOR | | | Semi-Annually | | | | 2.460 | | | | Semi-Annually | | | | 12/19/2021 | | | CAD | 1,085,859 | | | | — | | | | 11,781 | | | | 11,781 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.453 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,773 | | | | 11,773 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.451 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 11,672 | | | | 11,672 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.450 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,652 | | | | 11,652 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.450 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 11,652 | | | | 11,652 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.450 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,115 | | | | — | | | | 11,651 | | | | 11,651 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.449 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 11,591 | | | | 11,591 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.446 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,490 | | | | 11,490 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.445 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,450 | | | | 11,450 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.445 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 11,429 | | | | 11,429 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.444 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,389 | | | | 11,389 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.443 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,369 | | | | 11,369 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.442 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 11,328 | | | | 11,328 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.441 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,288 | | | | 11,288 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.441 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,288 | | | | 11,288 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.441 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 11,268 | | | | 11,268 | |
Pay | | 6 Month EUR LIBOR | | | Annually | | | | 0.440 | | | | Annually | | | | 03/17/2024 | | | EUR | 1,191,204 | | | | — | | | | 11,247 | | | | 11,247 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
23 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Interest Rate Swap Agreements(a)—(continued) | |
Pay/Receive Floating Rate | | Floating Rate Index | | Payment Frequency | | (Pay)/ Receive Fixed Rate | | | Payment Frequency | | Maturity Date | | | Notional
Value | | | Upfront Payments Paid (Received) | | | Value | | | Unrealized Appreciation (Depreciation)(b) | |
Pay | | 3 Month USD LIBOR | | Semi-Annually | | | 2.533 | % | | Semi-Annually | | | 03/17/2024 | | | USD | 1,500,342 | | | $ | — | | | $ | 11,026 | | | $ | 11,026 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.432 | | | Annually | | | 03/17/2024 | | | EUR | 1,191,205 | | | | — | | | | 10,903 | | | | 10,903 | |
Receive | | 3 Month USD LIBOR | | Quarterly | | | (2.133 | ) | | Quarterly | | | 06/16/2024 | | | USD | 2,409,000 | | | | — | | | | 10,789 | | | | 10,789 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.809 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 8,354 | | | | 8,354 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.795 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,746 | | | | — | | | | 8,001 | | | | 8,001 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.785 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 7,749 | | | | 7,749 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.775 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 829,990 | | | | — | | | | 7,535 | | | | 7,535 | |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.393 | ) | | Semi-Annually | | | 06/19/2029 | | | AUD | 2,041,000 | | | | — | | | | 7,350 | | | | 7,350 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.760 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 829,990 | | | | — | | | | 7,155 | | | | 7,155 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.746 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 829,990 | | | | — | | | | 6,813 | | | | 6,813 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.700 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 942,226 | | | | — | | | | 6,398 | | | | 6,398 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.368 | | | Annually | | | 03/17/2024 | | | EUR | 904,800 | | | | — | | | | 6,330 | | | | 6,330 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 1.239 | | | Annually | | | 03/20/2029 | | | EUR | 433,000 | | | | — | | | | 6,327 | | | | 6,327 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.728 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 6,312 | | | | 6,312 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.367 | | | Annually | | | 03/17/2024 | | | EUR | 904,800 | | | | — | | | | 6,300 | | | | 6,300 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.364 | | | Annually | | | 03/17/2024 | | | EUR | 904,800 | | | | — | | | | 6,207 | | | | 6,207 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.364 | | | Annually | | | 03/17/2024 | | | EUR | 904,800 | | | | — | | | | 6,207 | | | | 6,207 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.359 | | | Annually | | | 03/17/2024 | | | EUR | 904,800 | | | | — | | | | 6,048 | | | | 6,048 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.711 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 829,990 | | | | — | | | | 5,914 | | | | 5,914 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.707 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,746 | | | | — | | | | 5,796 | | | | 5,796 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.705 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 829,990 | | | | — | | | | 5,762 | | | | 5,762 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.702 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 829,990 | | | | — | | | | 5,699 | | | | 5,699 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.700 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 5,607 | | | | 5,607 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.695 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 829,990 | | | | — | | | | 5,509 | | | | 5,509 | |
Pay | | 3 Month USD LIBOR | | Semi-Annually | | | 2.487 | | | Semi-Annually | | | 03/17/2024 | | | USD | 885,059 | | | | — | | | | 5,364 | | | | 5,364 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.684 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 5,204 | | | | 5,204 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.640 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,746 | | | | — | | | | 4,095 | | | | 4,095 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.900 | | | Annually | | | 03/20/2030 | | | EUR | 150,000 | | | | — | | | | 4,041 | | | | 4,041 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 1.202 | | | Annually | | | 03/20/2029 | | | EUR | 317,000 | | | | — | | | | 3,991 | | | | 3,991 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.635 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 3,969 | | | | 3,969 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.635 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 3,969 | | | | 3,969 | |
Pay | | 3 Month CDOR | | Semi-Annually | | | 2.470 | | | Semi-Annually | | | 03/20/2029 | | | CAD | 183,000 | | | | — | | | | 3,904 | | | | 3,904 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.630 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,746 | | | | — | | | | 3,843 | | | | 3,843 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.628 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 3,793 | | | | 3,793 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.599 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 829,644 | | | | — | | | | 3,076 | | | | 3,076 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.596 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 2,999 | | | | 2,999 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.591 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,747 | | | | — | | | | 2,873 | | | | 2,873 | |
Pay | | 6 Month AUD BBSW | | Semi-Annually | | | 2.581 | | | Semi-Annually | | | 03/20/2029 | | | AUD | 825,746 | | | | — | | | | 2,608 | | | | 2,608 | |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.030 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 1,227,500 | | | | — | | | | 1,647 | | | | 1,647 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 1.090 | | | Annually | | | 03/20/2029 | | | EUR | 247,000 | | | | — | | | | 1,571 | | | | 1,571 | |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.031 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 1,227,501 | | | | — | | | | 1,570 | | | | 1,570 | |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.445 | ) | | Semi-Annually | | | 04/29/2029 | | | AUD | 722,512 | | | | — | | | | 1,051 | | | | 1,051 | |
Pay | | 3 Month USD LIBOR | | Semi-Annually | | | 2.910 | | | Semi-Annually | | | 02/23/2039 | | | USD | 1,934,009 | | | | — | | | | 925 | | | | 925 | |
Pay | | 3 Month CDOR | | Semi-Annually | | | 2.278 | | | Semi-Annually | | | 03/20/2022 | | | CAD | 109,900 | | | | — | | | | 882 | | | | 882 | |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.456 | ) | | Semi-Annually | | | 04/29/2029 | | | AUD | 722,512 | | | | — | | | | 809 | | | | 809 | |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.443 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 722,512 | | | | — | | | | 771 | | | | 771 | |
Pay | | 3 Month CDOR | | Semi-Annually | | | 2.250 | | | Semi-Annually | | | 03/20/2022 | | | CAD | 102,050 | | | | — | | | | 760 | | | | 760 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.985 | | | Annually | | | 12/20/2028 | | | EUR | 241,325 | | | | — | | | | 759 | | | | 759 | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 1.031 | | | Annually | | | 12/20/2028 | | | EUR | 120,663 | | | | — | | | | 688 | | | | 688 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
24 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Interest Rate Swap Agreements(a)—(continued) | |
Pay/Receive Floating Rate | | Floating Rate Index | | | Payment Frequency | | | (Pay)/ Receive Fixed Rate | | | Payment Frequency | | | Maturity Date | | | Notional
Value | | | Upfront Payments Paid (Received) | | | Value | | | Unrealized Appreciation (Depreciation)(b) | |
Pay | | | 3 Month CDOR | | | | Semi-Annually | | | | 2.215 | % | | | Semi-Annually | | | | 03/20/2022 | | | CAD | 102,050 | | | $ | — | | | $ | 685 | | | $ | 685 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.967 | | | | Annually | | | | 12/20/2028 | | | EUR | 241,325 | | | | — | | | | 518 | | | | 518 | |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.025 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,874 | | | | — | | | | 498 | | | | 498 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 1.001 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 487 | | | | 487 | |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.026 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,876 | | | | — | | | | 481 | | | | 481 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 1.000 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 480 | | | | 480 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.999 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,663 | | | | — | | | | 473 | | | | 473 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.974 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 306 | | | | 306 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.963 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 232 | | | | 232 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.962 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 225 | | | | 225 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.956 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 185 | | | | 185 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.955 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 178 | | | | 178 | |
Receive | | | 6 Month AUD BBSW | | | | Semi-Annually | | | | (2.485 | ) | | | Semi-Annually | | | | 04/30/2029 | | | AUD | 722,512 | | | | — | | | | 178 | | | | 178 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.953 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 165 | | | | 165 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.953 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 165 | | | | 165 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.951 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 152 | | | | 152 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.945 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 111 | | | | 111 | |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.048 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | 107 | | | | 107 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.944 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 105 | | | | 105 | |
Receive | | | 6 Month AUD BBSW | | | | Semi-Annually | | | | (2.489 | ) | | | Semi-Annually | | | | 05/01/2029 | | | AUD | 722,513 | | | | — | | | | 97 | | | | 97 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.942 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 91 | | | | 91 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.940 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,663 | | | | — | | | | 78 | | | | 78 | |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.050 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | 63 | | | | 63 | |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.053 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,876 | | | | — | | | | 11 | | | | 11 | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.929 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | 4 | | | | 4 | |
Subtotal — Appreciation | | | | | | | | | | | | | | | | | | | | — | | | | 1,239,079 | | | | 1,239,079 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.205 | | | | Annually | | | | 06/16/2024 | | | EUR | 348,766 | | | | — | | | | (45 | ) | | | (45 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.204 | | | | Annually | | | | 06/16/2024 | | | EUR | 348,766 | | | | — | | | | (57 | ) | | | (57 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | 1.538 | | | | Semi-Annually | | | | 06/21/2049 | | | GBP | 88,312 | | | | — | | | | (59 | ) | | | (59 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.058 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,874 | | | | — | | | | (75 | ) | | | (75 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | 1.536 | | | | Semi-Annually | | | | 06/21/2049 | | | GBP | 88,312 | | | | — | | | | (78 | ) | | | (78 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.202 | | | | Annually | | | | 06/16/2024 | | | EUR | 348,766 | | | | — | | | | (86 | ) | | | (86 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.915 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,663 | | | | — | | | | (90 | ) | | | (90 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.914 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | (96 | ) | | | (96 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.914 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | (96 | ) | | | (96 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.200 | | | | Annually | | | | 06/16/2024 | | | EUR | 348,766 | | | | — | | | | (104 | ) | | | (104 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.912 | | | | Annually | | | | 12/20/2028 | | | EUR | 120,662 | | | | — | | | | (110 | ) | | | (110 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Annually | | | | 0.199 | | | | Annually | | | | 06/16/2024 | | | EUR | 348,766 | | | | — | | | | (116 | ) | | | (116 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.072 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 117,650 | | | | — | | | | (122 | ) | | | (122 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | 1.531 | | | | Semi-Annually | | | | 06/21/2049 | | | GBP | 88,312 | | | | — | | | | (143 | ) | | | (143 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.062 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,876 | | | | — | | | | (145 | ) | | | (145 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.063 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (153 | ) | | | (153 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.069 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 189,225 | | | | — | | | | (166 | ) | | | (166 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.065 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,874 | | | | — | | | | (195 | ) | | | (195 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.065 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (197 | ) | | | (197 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.066 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (214 | ) | | | (214 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | 1.525 | | | | Semi-Annually | | | | 06/21/2049 | | | GBP | 88,312 | | | | — | | | | (221 | ) | | | (221 | ) |
Pay | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | 1.524 | | | | Semi-Annually | | | | 06/21/2049 | | | GBP | 88,312 | | | | — | | | | (241 | ) | | | (241 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.069 | ) | | | Semi-Annually | | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (266 | ) | | | (266 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
25 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Interest Rate Swap Agreements(a)—(continued) | |
Pay/Receive Floating Rate | | Floating Rate Index | | Payment Frequency | | (Pay)/ Receive Fixed Rate | | | Payment Frequency | | Maturity Date | | | Notional
Value | | | Upfront Payments Paid (Received) | | | Value | | | Unrealized Appreciation (Depreciation)(b) | |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.917 | % | | Annually | | | 12/20/2028 | | | EUR | 482,650 | | | $ | — | | | $ | (305 | ) | | $ | (305 | ) |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.997 | | | Annually | | | 06/19/2029 | | | EUR | 235,000 | | | | — | | | | (312 | ) | | | (312 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.073 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (336 | ) | | | (336 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.074 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (344 | ) | | | (344 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.076 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (388 | ) | | | (388 | ) |
Pay | | 6 Month EUR LIBOR | | Annually | | | 0.913 | | | Annually | | | 12/20/2028 | | | EUR | 482,650 | | | | — | | | | (412 | ) | | | (412 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.068 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 613,750 | | | | — | | | | (494 | ) | | | (494 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.083 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (507 | ) | | | (507 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.503 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 673,259 | | | | — | | | | (524 | ) | | | (524 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.085 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (542 | ) | | | (542 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.506 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 673,258 | | | | — | | | | (586 | ) | | | (586 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.088 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 306,874 | | | | — | | | | (596 | ) | | | (596 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.092 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 306,876 | | | | — | | | | (656 | ) | | | (656 | ) |
Pay | | 6 Month EUR LIBOR | | Semi-Annually | | | 1.505 | | | Semi-Annually | | | 03/15/2049 | | | GBP | 117,500 | | | | — | | | | (714 | ) | | | (714 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.516 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 643,530 | | | | — | | | | (756 | ) | | | (756 | ) |
Pay | | 6 Month EUR LIBOR | | Semi-Annually | | | 1.501 | | | Semi-Annually | | | 03/15/2049 | | | GBP | 117,500 | | | | — | | | | (783 | ) | | | (783 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.100 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 306,875 | | | | — | | | | (804 | ) | | | (804 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.079 | ) | | Semi-Annually | | | 06/19/2024 | | | EUR | 613,750 | | | | — | | | | (862 | ) | | | (862 | ) |
Pay | | 3 Month CDOR | | Semi-Annually | | | 1.818 | | | Semi-Annually | | | 06/19/2022 | | | CAD | 567,450 | | | | — | | | | (885 | ) | | | (885 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.583 | ) | | Semi-Annually | | | 06/21/2049 | | | GBP | 156,333 | | | | — | | | | (937 | ) | | | (937 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.584 | ) | | Semi-Annually | | | 06/21/2049 | | | GBP | 156,333 | | | | — | | | | (958 | ) | | | (958 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.528 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 673,259 | | | | — | | | | (1,038 | ) | | | (1,038 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.534 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 673,258 | | | | — | | | | (1,161 | ) | | | (1,161 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.593 | ) | | Semi-Annually | | | 06/21/2049 | | | GBP | 156,334 | | | | — | | | | (1,167 | ) | | | (1,167 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.538 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 673,259 | | | | — | | | | (1,243 | ) | | | (1,243 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.539 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 673,259 | | | | — | | | | (1,264 | ) | | | (1,264 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.648 | ) | | Semi-Annually | | | 06/15/2048 | | | GBP | 116,000 | | | | — | | | | (1,391 | ) | | | (1,391 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.551 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 673,258 | | | | — | | | | (1,510 | ) | | | (1,510 | ) |
Pay | | 28 Day MXN TIIE | | 28 Day | | | 6.925 | | | 28 Day | | | 06/16/2021 | | | MXN | 1,500,000 | | | | — | | | | (1,623 | ) | | | (1,623 | ) |
Receive | | 6 Month EUR LIBOR | | Semi-Annually | | | (0.240 | ) | | Semi-Annually | | | 06/16/2024 | | | EUR | 1,698,000 | | | | — | | | | (1,766 | ) | | | (1,766 | ) |
Pay | | 3 Month CDOR | | Semi-Annually | | | 1.755 | | | Semi-Annually | | | 06/19/2022 | | | CAD | 693,550 | | | | — | | | | (2,027 | ) | | | (2,027 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.600 | ) | | Semi-Annually | | | 09/21/2048 | | | GBP | 395,701 | | | | — | | | | (2,170 | ) | | | (2,170 | ) |
Receive | | 3 Month USD LIBOR | | Quarterly | | | (2.645 | ) | | Quarterly | | | 03/17/2028 | | | USD | 258,307 | | | | — | | | | (2,804 | ) | | | (2,804 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.614 | ) | | Semi-Annually | | | 09/21/2048 | | | GBP | 395,700 | | | | — | | | | (2,994 | ) | | | (2,994 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.610 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 780,143 | | | | — | | | | (3,155 | ) | | | (3,155 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.626 | ) | | Semi-Annually | | | 09/21/2048 | | | GBP | 395,701 | | | | — | | | | (3,729 | ) | | | (3,729 | ) |
Receive | | 6 Month AUD BBSW | | Semi-Annually | | | (2.605 | ) | | Semi-Annually | | | 03/20/2029 | | | AUD | 1,346,517 | | | | — | | | | (5,240 | ) | | | (5,240 | ) |
Pay | | 6 Month EUR LIBOR | | Semi-Annually | | | 1.357 | | | Semi-Annually | | | 06/21/2049 | | | GBP | 204,000 | | | | — | | | | (5,576 | ) | | | (5,576 | ) |
Pay | | 6 Month EUR LIBOR | | Semi-Annually | | | 1.355 | | | Semi-Annually | | | 06/21/2049 | | | GBP | 204,000 | | | | — | | | | (5,636 | ) | | | (5,636 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.660 | ) | | Semi-Annually | | | 09/21/2048 | | | GBP | 395,701 | | | | — | | | | (5,700 | ) | | | (5,700 | ) |
Pay | | 6 Month EUR LIBOR | | Semi-Annually | | | 1.360 | | | Semi-Annually | | | 06/21/2049 | | | GBP | 216,000 | | | | — | | | | (5,808 | ) | | | (5,808 | ) |
Pay | | 3 Month CDOR | | Semi-Annually | | | 2.012 | | | Semi-Annually | | | 06/19/2029 | | | CAD | 547,000 | | | | — | | | | (5,875 | ) | | | (5,875 | ) |
Pay | | 3 Month USD LIBOR | | Semi-Annually | | | 2.855 | | | Semi-Annually | | | 02/23/2039 | | | USD | 1,933,981 | | | | — | | | | (6,508 | ) | | | (6,508 | ) |
Receive | | 6 Month GBP LIBOR | | Semi-Annually | | | (1.880 | ) | | Semi-Annually | | | 12/21/2048 | | | GBP | 165,591 | | | | — | | | | (8,101 | ) | | | (8,101 | ) |
Pay | | 3 Month USD LIBOR | | Semi-Annually | | | 2.842 | | | Semi-Annually | | | 02/23/2039 | | | USD | 1,934,010 | | | | — | | | | (8,265 | ) | | | (8,265 | ) |
Receive | | 3 Month CDOR | | Semi-Annually | | | (2.273 | ) | | Semi-Annually | | | 03/20/2022 | | | CAD | 1,117,000 | | | | — | | | | (8,848 | ) | | | (8,848 | ) |
Receive | | 3 Month USD LIBOR | | Quarterly | | | (2.690 | ) | | Quarterly | | | 03/17/2028 | | | USD | 648,328 | | | | — | | | | (8,871 | ) | | | (8,871 | ) |
Receive | | 3 Month USD LIBOR | | Quarterly | | | (2.714 | ) | | Quarterly | | | 03/17/2028 | | | USD | 648,328 | | | | — | | | | (9,818 | ) | | | (9,818 | ) |
Receive | | 3 Month USD LIBOR | | Quarterly | | | (2.716 | ) | | Quarterly | | | 03/17/2028 | | | USD | 648,328 | | | | — | | | | (9,919 | ) | | | (9,919 | ) |
Receive | | 3 Month USD LIBOR | | Quarterly | | | (2.730 | ) | | Quarterly | | | 03/17/2028 | | | USD | 648,328 | | | | — | | | | (10,463 | ) | | | (10,463 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
26 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Interest Rate Swap Agreements(a)—(continued) | |
Pay/Receive Floating Rate | | Floating Rate Index | | | Payment Frequency | | | (Pay)/ Receive Fixed Rate | | | Payment Frequency | | | Maturity Date | | | Notional
Value | | | Upfront Payments Paid (Received) | | | Value | | | Unrealized Appreciation (Depreciation)(b) | |
Receive | | | 6 Month GBP LIBOR | | | | Semi-Annually | | | | (1.877 | ) % | | | Semi-Annually | | | | 12/21/2048 | | | GBP | 227,248 | | | $ | — | | | $ | (11,016 | ) | | $ | (11,016 | ) |
Receive | | | 6 Month GBP LIBOR | | | | Semi-Annually | | | | (1.878 | ) | | | Semi-Annually | | | | 12/21/2048 | | | GBP | 227,688 | | | | — | | | | (11,071 | ) | | | (11,071 | ) |
Receive | | | 6 Month GBP LIBOR | | | | Semi-Annually | | | | (1.875 | ) | | | Semi-Annually | | | | 12/21/2048 | | | GBP | 239,491 | | | | — | | | | (11,546 | ) | | | (11,546 | ) |
Receive | | | 6 Month GBP LIBOR | | | | Semi-Annually | | | | (1.877 | ) | | | Semi-Annually | | | | 12/21/2048 | | | GBP | 238,038 | | | | — | | | | (11,546 | ) | | | (11,546 | ) |
Receive | | | 6 Month GBP LIBOR | | | | Semi-Annually | | | | (1.882 | ) | | | Semi-Annually | | | | 12/21/2048 | | | GBP | 238,037 | | | | — | | | | (11,716 | ) | | | (11,716 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.665 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 349,890 | | | | — | | | | (12,083 | ) | | | (12,083 | ) |
Pay | | | 3 Month USD LIBOR | | | | Semi-Annually | | | | 2.326 | | | | Semi-Annually | | | | 06/16/2028 | | | USD | 1,194,000 | | | | — | | | | (12,333 | ) | | | (12,333 | ) |
Receive | | | 6 Month GBP LIBOR | | | | Semi-Annually | | | | (1.898 | ) | | | Semi-Annually | | | | 12/21/2048 | | | GBP | 239,300 | | | | — | | | | (12,335 | ) | | | (12,335 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.490 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 569,187 | | | | — | | | | (12,914 | ) | | | (12,914 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (0.320 | ) | | | Semi-Annually | | | | 03/17/2024 | | | EUR | 2,635,000 | | | | — | | | | (14,112 | ) | | | (14,112 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.520 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,781 | | | | — | | | | (17,297 | ) | | | (17,297 | ) |
Receive | | | 6 Month GBP LIBOR | | | | Semi-Annually | | | | (1.900 | ) | | | Semi-Annually | | | | 12/21/2048 | | | GBP | 341,532 | | | | — | | | | (17,721 | ) | | | (17,721 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.155 | ) | | | Semi-Annually | | | | 03/20/2022 | | | CAD | 3,282,000 | | | | — | | | | (17,880 | ) | | | (17,880 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.468 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 853,000 | | | | — | | | | (18,054 | ) | | | (18,054 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.480 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 853,000 | | | | — | | | | (18,775 | ) | | | (18,775 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.592 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,781 | | | | — | | | | (20,731 | ) | | | (20,731 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.597 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (20,944 | ) | | | (20,944 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.614 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (21,750 | ) | | | (21,750 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.614 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (21,773 | ) | | | (21,773 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.714 | ) | | | Semi-Annually | | | | 12/20/2028 | | | EUR | 499,500 | | | | — | | | | (21,792 | ) | | | (21,792 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.715 | ) | | | Semi-Annually | | | | 12/20/2028 | | | EUR | 499,500 | | | | — | | | | (21,806 | ) | | | (21,806 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.617 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (21,906 | ) | | | (21,906 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.618 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (21,939 | ) | | | (21,939 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.722 | ) | | | Semi-Annually | | | | 12/20/2028 | | | EUR | 499,500 | | | | — | | | | (22,000 | ) | | | (22,000 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.725 | ) | | | Semi-Annually | | | | 12/20/2028 | | | EUR | 499,500 | | | | — | | | | (22,097 | ) | | | (22,097 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.726 | ) | | | Semi-Annually | | | | 12/20/2028 | | | EUR | 499,500 | | | | — | | | | (22,125 | ) | | | (22,125 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.727 | ) | | | Semi-Annually | | | | 12/20/2028 | | | EUR | 499,500 | | | | — | | | | (22,139 | ) | | | (22,139 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.729 | ) | | | Semi-Annually | | | | 12/20/2028 | | | EUR | 499,500 | | | | — | | | | (22,194 | ) | | | (22,194 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.731 | ) | | | Semi-Annually | | | | 12/20/2028 | | | EUR | 499,500 | | | | — | | | | (22,264 | ) | | | (22,264 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.629 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (22,460 | ) | | | (22,460 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.629 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (22,484 | ) | | | (22,484 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.635 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (22,735 | ) | | | (22,735 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.645 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (23,218 | ) | | | (23,218 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.647 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (23,303 | ) | | | (23,303 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.539 | ) | | | Semi-Annually | | | | 09/20/2028 | | | EUR | 646,325 | | | | — | | | | (23,697 | ) | | | (23,697 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.661 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,781 | | | | — | | | | (23,990 | ) | | | (23,990 | ) |
Receive | | | 3 Month CDOR | | | | Semi-Annually | | | | (2.672 | ) | | | Semi-Annually | | | | 03/20/2029 | | | CAD | 699,780 | | | | — | | | | (24,520 | ) | | | (24,520 | ) |
Receive | | | 6 Month GBP LIBOR | | | | Semi-Annually | | | | (1.919 | ) | | | Semi-Annually | | | | 12/21/2048 | | | GBP | 476,075 | | | | — | | | | (26,061 | ) | | | (26,061 | ) |
Receive | | | 3 Month USD LIBOR | | | | Quarterly | | | | (2.658 | ) | | | Quarterly | | | | 03/17/2028 | | | USD | 2,937,037 | | | | — | | | | (34,303 | ) | | | (34,303 | ) |
Receive | | | 3 Month USD LIBOR | | | | Quarterly | | | | (2.672 | ) | | | Quarterly | | | | 03/17/2028 | | | USD | 2,867,931 | | | | — | | | | (35,946 | ) | | | (35,946 | ) |
Receive | | | 3 Month USD LIBOR | | | | Quarterly | | | | (2.673 | ) | | | Quarterly | | | | 03/17/2028 | | | USD | 2,867,930 | | | | — | | | | (36,213 | ) | | | (36,213 | ) |
Receive | | | 3 Month USD LIBOR | | | | Quarterly | | | | (3.042 | ) | | | Quarterly | | | | 09/16/2027 | | | USD | 1,041,500 | | | | — | | | | (40,205 | ) | | | (40,205 | ) |
Receive | | | 3 Month USD LIBOR | | | | Quarterly | | | | (3.044 | ) | | | Quarterly | | | | 09/16/2027 | | | USD | 1,041,500 | | | | — | | | | (40,303 | ) | | | (40,303 | ) |
Receive | | | 3 Month USD LIBOR | | | | Quarterly | | | | (2.698 | ) | | | Quarterly | | | | 03/17/2028 | | | USD | 2,867,930 | | | | — | | | | (40,579 | ) | | | (40,579 | ) |
Receive | | | 3 Month USD LIBOR | | | | Quarterly | | | | (2.703 | ) | | | Quarterly | | | | 03/17/2028 | | | USD | 2,867,930 | | | | — | | | | (41,559 | ) | | | (41,559 | ) |
Receive | | | 6 Month EUR LIBOR | | | | Semi-Annually | | | | (1.590 | ) | | | Semi-Annually | | | | 09/20/2028 | | | EUR | 1,156,591 | | | | — | | | | (45,688 | ) | | | (45,688 | ) |
Subtotal — Depreciation | | | | | | | | | | | | | | | | | | | | — | | | | (1,192,569 | ) | | | (1,192,569 | ) |
Total Centrally Cleared Interest Rate Swap Agreements | | | | | | | $ | — | | | $ | 46,510 | | | $ | 46,510 | |
| (a) | Centrally cleared swap agreements collateralized by $575,704 cash held with Credit Suisse Securities (USA) LLC. |
| (b) | The daily variation margin receivable (payable) at period end is recorded in the Consolidated Statement of Assets and Liabilities. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
27 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Credit Default Swap Agreements(a) | |
| Counterparty | | 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
(Depreciation) | |
Credit Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
JPMorgan Chase Bank, N.A. | | Jaguar Land Rover Automotive PLC | | | Sell | | | | 5.00 | % | | | Quarterly | | | | 12/20/2023 | | | | 5.669 | % | | EUR | 20,000 | | | $ | — | | | $ | (595 | ) | | $ | (595 | ) |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| (b) | Implied credit spreads represent the current level, as of April 30, 2019, 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. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Inflation Swap Agreements(a) | |
| Counterparty | | Pay/ Receive
Floating Rate | | | Floating Rate Index | | Payment
Frequency | | | Fixed
Rate | | | Payment
Frequency | | | Maturity
Date | | | Notional
Value | | | Upfront
Payments
Paid
(Received) | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goldman Sachs International | | | Pay | | | United Kingdom RPI | | | At Maturity | | | | 3.06 | % | | | At Maturity | | | | 12/29/2025 | | | GBP | 3,450,000 | | | $ | — | | | $ | (147,225 | ) | | $ | (147,225 | ) |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Inflation Rate Swap Agreements(a) | |
| Pay/Receive | | Floating Rate Index | | Payment
Frequency | | | Fixed
Rate | | | Payment
Frequency | | | Maturity
Date | | | Notional
Value | | | Upfront
Payments
Paid
(Received) | | | Value | | | Unrealized
Appreciation
(Depreciation)(b) | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.46 | % | | | At Maturity | | | | 08/15/2027 | | | EUR | 6,650,145 | | | $ | — | | | $ | 180,381 | | | $ | 180,381 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.41 | | | | At Maturity | | | | 07/15/2027 | | | EUR | 3,999,227 | | | | — | | | | 90,688 | | | | 90,688 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.55 | | | | At Maturity | | | | 08/15/2028 | | | EUR | 2,147,097 | | | | — | | | | 87,277 | | | | 87,277 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.47 | | | | At Maturity | | | | 08/15/2027 | | | EUR | 2,996,344 | | | | — | | | | 82,255 | | | | 82,255 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.39 | | | | At Maturity | | | | 07/15/2027 | | | EUR | 3,984,578 | | | | — | | | | 81,750 | | | | 81,750 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.38 | | | | At Maturity | | | | 07/15/2027 | | | EUR | 2,666,152 | | | | — | | | | 51,890 | | | | 51,890 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.38 | | | | At Maturity | | | | 07/15/2027 | | | EUR | 2,754,047 | | | | — | | | | 51,877 | | | | 51,877 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.56 | | | | At Maturity | | | | 08/15/2028 | | | EUR | 1,073,549 | | | | — | | | | 45,325 | | | | 45,325 | |
Pay | | United Kingdom RPI | | | At Maturity | | | | 3.63 | | | | At Maturity | | | | 01/15/2027 | | | GBP | 885,159 | | | | — | | | | 23,185 | | | | 23,185 | |
Pay | | United States CPI Urban
Consumers NSA | | | At Maturity | | | | 1.20 | | | | At Maturity | | | | 12/15/2023 | | | EUR | 1,567,000 | | | | — | | | | 18,938 | | | | 18,938 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.56 | | | | At Maturity | | | | 10/15/2028 | | | EUR | 387,282 | | | | — | | | | 17,149 | | | | 17,149 | |
Pay | | United Kingdom RPI | | | At Maturity | | | | 3.63 | | | | At Maturity | | | | 01/15/2027 | | | GBP | 644,420 | | | | — | | | | 17,093 | | | | 17,093 | |
Pay | | United Kingdom RPI | | | At Maturity | | | | 3.63 | | | | At Maturity | | | | 01/15/2027 | | | GBP | 644,421 | | | | — | | | | 16,559 | | | | 16,559 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.58 | | | | At Maturity | | | | 10/15/2028 | | | EUR | 238,437 | | | | — | | | | 10,873 | | | | 10,873 | |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.18 | ) | | | At Maturity | | | | 04/15/2028 | | | EUR | 1,476,636 | | | | — | | | | 8,556 | | | | 8,556 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.06 | | | | At Maturity | | | | 02/15/2024 | | | EUR | 1,619,000 | | | | — | | | | 6,778 | | | | 6,778 | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | 1.33 | | | | At Maturity | | | | 06/15/2027 | | | EUR | 338,000 | | | | — | | | | 4,751 | | | | 4,751 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
28 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Inflation Rate Swap Agreements(a)—(continued) | |
| Pay/Receive | | Floating Rate Index | | | Payment
Frequency | | Fixed
Rate | | | Payment
Frequency | | Maturity
Date | | | Notional
Value | | | Upfront
Payments
Paid
(Received) | | | Value | | | Unrealized
Appreciation
(Depreciation)(b) | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.19 | )% | | At Maturity | | | 04/15/2028 | | | EUR | 738,318 | | | $ | — | | | $ | 3,376 | | | $ | 3,376 | |
Receive | | | United Kingdom RPI | | | At Maturity | | | (3.47 | ) | | At Maturity | | | 02/15/2029 | | | GBP | 524,000 | | | | — | | | | 2,452 | | | | 2,452 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.18 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 369,159 | | | | — | | | | 2,239 | | | | 2,239 | |
Pay | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | 1.07 | | | At Maturity | | | 03/15/2024 | | | EUR | 1,414,000 | | | | — | | | | 2,086 | | | | 2,086 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.19 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 369,159 | | | | — | | | | 1,738 | | | | 1,738 | |
Pay | | | United Kingdom RPI | | | At Maturity | | | 3.25 | | | At Maturity | | | 07/15/2025 | | | GBP | 681,299 | | | | — | | | | 1,620 | | | | 1,620 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.19 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 919 | | | | 919 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.19 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 899 | | | | 899 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.19 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 899 | | | | 899 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.21 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,580 | | | | — | | | | 729 | | | | 729 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.20 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 719 | | | | 719 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.20 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 644 | | | | 644 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.21 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 628 | | | | 628 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.21 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 618 | | | | 618 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.21 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 618 | | | | 618 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.21 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,580 | | | | — | | | | 603 | | | | 603 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.21 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 603 | | | | 603 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.21 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 588 | | | | 588 | |
Pay | | | United Kingdom RPI | | | At Maturity | | | 3.51 | | | At Maturity | | | 02/15/2029 | | | GBP | 256,750 | | | | — | | | | 353 | | | | 353 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.23 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 327 | | | | 327 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.23 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 302 | | | | 302 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.23 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,580 | | | | — | | | | 277 | | | | 277 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.23 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,580 | | | | — | | | | 277 | | | | 277 | |
Receive | | | United Kingdom RPI | | | At Maturity | | | (3.48 | ) | | At Maturity | | | 01/15/2029 | | | GBP | 200,000 | | | | — | | | | 228 | | | | 228 | |
Pay | | | United Kingdom RPI | | | At Maturity | | | 3.51 | | | At Maturity | | | 02/15/2029 | | | GBP | 256,750 | | | | — | | | | 220 | | | | 220 | |
Receive | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | (1.24 | ) | | At Maturity | | | 04/15/2028 | | | EUR | 184,579 | | | | — | | | | 50 | | | | 50 | |
Subtotal — Appreciation | | | | | | | | | | | | | | | | | | | | — | | | | 819,337 | | | | 819,337 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay | | | United Kingdom RPI | | | At Maturity | | | 3.50 | | | At Maturity | | | 02/15/2029 | | | GBP | 256,750 | | | | — | | | | (220 | ) | | | (220 | ) |
Pay | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | 1.09 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,006 | | | | — | | | | (235 | ) | | | (235 | ) |
Pay | |
| Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA |
| | At Maturity | | | 1.04 | | | At Maturity | | | 04/15/2023 | | | EUR | 145,048 | | | | — | | | | (281 | ) | | | (281 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
29 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Inflation Rate Swap Agreements(a)—(continued) | |
| Pay/Receive | | Floating Rate Index | | Payment
Frequency | | Fixed
Rate | | | Payment
Frequency | | Maturity
Date | | | Notional
Value | | | Upfront
Payments
Paid
(Received) | | | Value | | | Unrealized
Appreciation
(Depreciation)(b) | |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.07 | % | | At Maturity | | | 04/15/2023 | | | EUR | 574,005 | | | $ | — | | | $ | (327 | ) | | $ | (327 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.08 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,006 | | | | — | | | | (369 | ) | | | (369 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.08 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,005 | | | | — | | | | (403 | ) | | | (403 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.08 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,005 | | | | — | | | | (403 | ) | | | (403 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.08 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,005 | | | | — | | | | (436 | ) | | | (436 | ) |
Pay | | United Kingdom RPI | | At Maturity | | | 3.49 | | | At Maturity | | | 02/15/2029 | | | GBP | 256,750 | | | | — | | | | (445 | ) | | | (445 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.08 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,006 | | | | — | | | | (470 | ) | | | (470 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.07 | | | At Maturity | | | 04/15/2023 | | | EUR | 944,588 | | | | — | | | | (495 | ) | | | (495 | ) |
Receive | | United Kingdom RPI | | At Maturity | | | (3.56 | ) | | At Maturity | | | 03/15/2029 | | | GBP | 327,000 | | | | — | | | | (497 | ) | | | (497 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.08 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,005 | | | | — | | | | (503 | ) | | | (503 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.07 | | | At Maturity | | | 04/15/2023 | | | EUR | 944,588 | | | | — | | | | (616 | ) | | | (616 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.07 | | | At Maturity | | | 04/15/2023 | | | EUR | 944,588 | | | | — | | | | (671 | ) | | | (671 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.07 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,006 | | | | — | | | | (772 | ) | | | (772 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.06 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,005 | | | | — | | | | (783 | ) | | | (783 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.06 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,005 | | | | — | | | | (783 | ) | | | (783 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.05 | | | At Maturity | | | 04/15/2023 | | | EUR | 574,005 | | | | — | | | | (1,174 | ) | | | (1,174 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.05 | | | At Maturity | | | 04/15/2023 | | | EUR | 944,588 | | | | — | | | | (1,444 | ) | | | (1,444 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | (1.13 | ) | | At Maturity | | | 03/15/2024 | | | EUR | 329,000 | | | | — | | | | (1,690 | ) | | | (1,690 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.07 | | | At Maturity | | | 04/15/2023 | | | EUR | 2,056,337 | | | | — | | | | (1,701 | ) | | | (1,701 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | (1.14 | ) | | At Maturity | | | 03/15/2024 | | | EUR | 329,000 | | | | — | | | | (1,845 | ) | | | (1,845 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.06 | | | At Maturity | | | 04/15/2023 | | | EUR | 1,889,177 | | | | — | | | | (2,667 | ) | | | (2,667 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | (1.25 | ) | | At Maturity | | | 03/15/2029 | | | EUR | 1,078,000 | | | | — | | | | (2,681 | ) | | | (2,681 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.06 | | | At Maturity | | | 04/15/2023 | | | EUR | 2,296,022 | | | | — | | | | (3,241 | ) | | | (3,241 | ) |
Pay | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | 1.04 | | | At Maturity | | | 04/15/2023 | | | EUR | 1,889,177 | | | | — | | | | (3,990 | ) | | | (3,990 | ) |
Receive | | United Kingdom RPI | | Semi-Annually | | | (1.68 | ) | | Semi-Annually | | | 09/21/2048 | | | GBP | 248,235 | | | | — | | | | (4,513 | ) | | | (4,513 | ) |
Receive | | United Kingdom RPI | | Semi-Annually | | | (1.68 | ) | | Semi-Annually | | | 09/21/2048 | | | GBP | 244,530 | | | | — | | | | (4,609 | ) | | | (4,609 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | (1.18 | ) | | At Maturity | | | 07/15/2022 | | | EUR | 2,754,047 | | | | — | | | | (5,071 | ) | | | (5,071 | ) |
Receive | | United Kingdom RPI | | Semi-Annually | | | (1.70 | ) | | Semi-Annually | | | 09/21/2048 | | | GBP | 248,235 | | | | — | | | | (5,465 | ) | | | (5,465 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | At Maturity | | | (1.18 | ) | | At Maturity | | | 07/15/2022 | | | EUR | 2,666,152 | | | | — | | | | (5,541 | ) | | | (5,541 | ) |
Pay | | United Kingdom RPI | | At Maturity | | | 3.41 | | | At Maturity | | | 05/15/2027 | | | GBP | 1,022,000 | | | | — | | | | (5,599 | ) | | | (5,599 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
30 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Open Centrally Cleared Inflation Rate Swap Agreements(a)—(continued) | |
| Pay/Receive | | Floating Rate Index | | Payment
Frequency | | | Fixed
Rate | | | Payment
Frequency | | | Maturity
Date | | | Notional
Value | | | Upfront
Payments
Paid
(Received) | | | Value | | | Unrealized
Appreciation
(Depreciation)(b) | |
Receive | | United States CPI Urban
Consumers NSA | | | At Maturity | | | | (1.30 | )% | | | At Maturity | | | | 01/15/2029 | | | EUR | 491,000 | | | $ | — | | | $ | (6,300 | ) | | $ | (6,300 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.25 | ) | | | At Maturity | | | | 02/15/2029 | | | EUR | 1,935,000 | | | | — | | | | (12,473 | ) | | | (12,473 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.20 | ) | | | At Maturity | | | | 07/15/2022 | | | EUR | 3,984,578 | | | | — | | | | (13,405 | ) | | | (13,405 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.22 | ) | | | At Maturity | | | | 07/15/2022 | | | EUR | 3,999,227 | | | | — | | | | (18,394 | ) | | | (18,394 | ) |
Receive | | United Kingdom RPI | | | At Maturity | | | | (3.71 | ) | | | At Maturity | | | | 12/15/2028 | | | GBP | 537,000 | | | | — | | | | (20,468 | ) | | | (20,468 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.32 | ) | | | At Maturity | | | | 08/15/2022 | | | EUR | 2,996,344 | | | | — | | | | (23,632 | ) | | | (23,632 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.43 | ) | | | At Maturity | | | | 08/15/2023 | | | EUR | 1,073,549 | | | | — | | | | (24,121 | ) | | | (24,121 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.48 | ) | | | At Maturity | | | | 05/15/2023 | | | EUR | 1,410,000 | | | | — | | | | (30,293 | ) | | | (30,293 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.46 | ) | | | At Maturity | | | | 10/15/2023 | | | EUR | 1,591,534 | | | | — | | | | (41,434 | ) | | | (41,434 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.46 | ) | | | At Maturity | | | | 10/15/2023 | | | EUR | 1,591,534 | | | | — | | | | (41,673 | ) | | | (41,673 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.41 | ) | | | At Maturity | | | | 08/15/2023 | | | EUR | 2,147,097 | | | | — | | | | (45,671 | ) | | | (45,671 | ) |
Receive | | United States CPI Urban
Consumers NSA | | | At Maturity | | | | (1.41 | ) | | | At Maturity | | | | 12/15/2028 | | | EUR | 1,819,000 | | | | — | | | | (46,864 | ) | | | (46,864 | ) |
Receive | | Eurostat Eurozone HICP Ex Tobacco
Unrevised Series NSA | | | At Maturity | | | | (1.31 | ) | | | At Maturity | | | | 08/15/2022 | | | EUR | 6,650,145 | | | | — | | | | (50,380 | ) | | | (50,380 | ) |
Pay | | United Kingdom RPI | | | At Maturity | | | | 3.11 | | | | At Maturity | | | | 06/15/2026 | | | GBP | 1,196,950 | | | | — | | | | (66,385 | ) | | | (66,385 | ) |
Subtotal — Depreciation | | | | | | | | | | | | | | | | | | | | | | | — | | | | (501,433 | ) | | | (501,433 | ) |
Total — Centrally Cleared Inflation Swap Agreements | | | | | | | | | | | | | | | $ | — | | | $ | 317,904 | | | $ | 317,904 | |
| (a) | Centrally cleared inflation swap agreements collateralized by $575,704 cash held with Credit Suisse Securities (USA) LLC. |
| (b) | The daily variation margin receivable (payable) at period end is recorded in the Consolidated Statement of Assets and Liabilities. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Variance Swap Agreements(a) | |
| Counterparty | | Reference Entity | | Pay/ Receive
Variance | | Volatility
Strike
Rate | | | Payment
Frequency | | | Maturity Date | | | Notional Value | | | Unrealized
Appreciation
(Depreciation) | |
Equity Risk | | | | | | | | | | | | | | | | | | | | | | | | |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 26.45 | % | | | At Maturity | | | | 12/30/2019 | | | HKD | 22,099 | | | $ | 16,257 | |
UBS AG | | S&P/ASX 200 Index | | Receive | | | 16.60 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 4,391 | | | | 9,490 | |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 22.40 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 44,962 | | | | 8,537 | |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 22.45 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 44,962 | | | | 8,192 | |
J.P. Morgan Securities LLC | | Hang Seng China Enterprise Index | | Receive | | | 22.20 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 44,962 | | | | 7,172 | |
UBS AG | | Hang Seng Index | | Receive | | | 24.95 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 7,441 | | | | 5,904 | |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 25.95 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 8,496 | | | | 5,494 | |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 22.00 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 44,961 | | | | 5,486 | |
J.P. Morgan Securities LLC | | S&P/ASX 200 Index | | Receive | | | 16.92 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 2,026 | | | | 4,904 | |
UBS AG | | KOSPI 200 Index | | Receive | | | 19.50 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 1,033,969 | | | | 3,436 | |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 22.15 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 16,467 | | | | 2,426 | |
J.P. Morgan Securities LLC | | KOSPI 200 Index | | Receive | | | 19.36 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 772,083 | | | | 2,369 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
31 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Variance Swap Agreements(a)—(continued) | |
| Counterparty | | Reference Entity | | Pay/ Receive
Variance | | | Volatility
Strike
Rate | | | Payment
Frequency | | | Maturity Date | | | Notional Value | | | Unrealized
Appreciation
(Depreciation) | |
UBS AG | | S&P/ASX 200 Index | | | Receive | | | | 14.40 | % | | | At Maturity | | | | 12/19/2019 | | | AUD | 2,334 | | | $ | 976 | |
BNP Paribas S.A. | | Nikkei 225 Index | | | Receive | | | | 23.21 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 269,435 | | | | 930 | |
UBS AG | | Hang Seng Index | | | Receive | | | | 19.50 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 3,968 | | | | 654 | |
BNP Paribas S.A. | | Nikkei 225 Index | | | Receive | | | | 22.94 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 205,944 | | | | 217 | |
UBS AG | | KOSPI 200 Index | | | Receive | | | | 16.15 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 557,297 | | | | 88 | |
Subtotal — Appreciation | | | | | | | | | | | | | | | | | | | | | | | 82,532 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Risk | | | | | | | | | | | | | | | | | | | | | | | | | | |
UBS AG | | Hang Seng Index | | | Receive | | | | 22.50 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 152 | | | | (69 | ) |
UBS AG | | KOSPI 200 Index | | | Receive | | | | 17.90 | | | | At Maturity | | | | 12/10/2020 | | | KRW | 3,687,422 | | | | (386 | ) |
BNP Paribas S.A. | | Nikkei 225 Index | | | Receive | | | | 23.95 | | | | At Maturity | | | | 12/10/2021 | | | JPY | 140,826 | | | | (786 | ) |
BNP Paribas S.A. | | Nikkei 225 Index | | | Receive | | | | 23.99 | | | | At Maturity | | | | 12/10/2021 | | | JPY | 148,665 | | | | (882 | ) |
UBS AG | | KOSPI 200 Index | | | Receive | | | | 17.70 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 747,249 | | | | (1,262 | ) |
UBS AG | | Nikkei 225 Index | | | Receive | | | | 24.00 | | | | At Maturity | | | | 12/10/2021 | | | JPY | 229,328 | | | | (1,381 | ) |
Societe Generale | | Nikkei 225 Index | | | Receive | | | | 23.90 | | | | At Maturity | | | | 12/10/2021 | | | JPY | 282,170 | | | | (1,452 | ) |
UBS AG | | Nikkei 225 Index | | | Receive | | | | 24.00 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 148,989 | | | | (1,538 | ) |
UBS AG | | Hang Seng Index | | | Receive | | | | 21.70 | | | | At Maturity | | | | 12/30/2020 | | | HKD | 23,514 | | | | (1,762 | ) |
Societe Generale | | Nikkei 225 Index | | | Receive | | | | 23.90 | | | | At Maturity | | | | 12/10/2021 | | | JPY | 358,910 | | | | (1,846 | ) |
UBS AG | | KOSPI 200 Index | | | Receive | | | | 19.00 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 734,506 | | | | (2,052 | ) |
Societe Generale | | KOSPI 200 Index | | | Receive | | | | 19.00 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 734,507 | | | | (2,070 | ) |
Societe Generale | | Nikkei 225 Index | | | Receive | | | | 24.00 | | | | At Maturity | | | | 12/10/2021 | | | JPY | 348,375 | | | | (2,098 | ) |
UBS AG | | Hang Seng China Enterprise Index | | | Receive | | | | 24.45 | | | | At Maturity | | | | 12/30/2020 | | | HKD | 56,839 | | | | (2,225 | ) |
J.P. Morgan Securities LLC | | S&P/ASX 200 Index | | | Receive | | | | 15.84 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 1,412 | | | | (2,611 | ) |
UBS AG | | Hang Seng Index | | | Receive | | | | 21.30 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 6,476 | | | | (2,613 | ) |
J.P. Morgan Securities LLC | | S&P/ASX 200 Index | | | Receive | | | | 15.40 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 2,337 | | | | (3,312 | ) |
Societe Generale | | KOSPI 200 Index | | | Receive | | | | 18.25 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 2,001,759 | | | | (3,429 | ) |
Goldman Sachs International | | Hang Seng China Enterprise Index | | | Receive | | | | 25.20 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 6,292 | | | | (3,590 | ) |
UBS AG | | Hang Seng China Enterprise Index | | | Receive | | | | 25.30 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 6,292 | | | | (3,671 | ) |
Societe Generale | | Hang Seng Index | | | Receive | | | | 22.80 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 6,291 | | | | (3,826 | ) |
UBS AG | | Hang Seng Index | | | Receive | | | | 23.00 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 6,291 | | | | (3,927 | ) |
Societe Generale | | Hang Seng China Enterprise Index | | | Receive | | | | 23.79 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 10,050 | | | | (4,090 | ) |
J.P. Morgan Securities LLC | | Hang Seng Index | | | Receive | | | | 22.64 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 8,943 | | | | (4,155 | ) |
UBS AG | | Nikkei 225 Index | | | Receive | | | | 24.00 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 422,672 | | | | (4,364 | ) |
UBS AG | | Hang Seng China Enterprise Index | | | Receive | | | | 23.60 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 12,776 | | | | (4,577 | ) |
Societe Generale | | Hang Seng Index | | | Receive | | | | 22.79 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 9,599 | | | | (4,618 | ) |
UBS AG | | Nikkei 225 Index | | | Receive | | | | 23.95 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 469,782 | | | | (4,649 | ) |
Societe Generale | | Nikkei 225 Index | | | Receive | | | | 23.95 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 469,781 | | | | (4,649 | ) |
UBS AG | | Hang Seng Index | | | Receive | | | | 22.40 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 10,300 | | | | (4,679 | ) |
Goldman Sachs International | | Hang Seng Index | | | Receive | | | | 22.50 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 10,300 | | | | (4,760 | ) |
UBS AG | | S&P/ASX 200 Index | | | Receive | | | | 15.10 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 3,959 | | | | (4,850 | ) |
UBS AG | | S&P/ASX 200 Index | | | Receive | | | | 15.80 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 2,969 | | | | (5,562 | ) |
Goldman Sachs International | | S&P/ASX 200 Index | | | Receive | | | | 16.00 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 2,968 | | | | (5,912 | ) |
Societe Generale | | Nikkei 225 Index | | | Receive | | | | 23.65 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 810,968 | | | | (5,926 | ) |
Goldman Sachs International | | S&P/ASX 200 Index | | | Receive | | | | 15.90 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 4,212 | | | | (6,836 | ) |
Societe Generale | | S&P/ASX 200 Index | | | Receive | | | | 15.99 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 3,468 | | | | (7,185 | ) |
UBS AG | | KOSPI 200 Index | | | Receive | | | | 17.70 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 5,376,546 | | | | (7,602 | ) |
UBS AG | | S&P/ASX 200 Index | | | Receive | | | | 15.60 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 5,607 | | | | (7,964 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
32 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Variance Swap Agreements(a)—(continued) | |
| Counterparty | | Reference Entity | | Pay/ Receive
Variance | | Volatility
Strike
Rate | | | Payment
Frequency | | | Maturity Date | | | Notional Value | | | Unrealized
Appreciation
(Depreciation) | |
Societe Generale | | S&P/ASX 200 Index | | Receive | | | 16.25 | % | | | At Maturity | | | | 12/19/2019 | | | AUD | 4,925 | | | $ | (8,538 | ) |
Societe Generale | | S&P/ASX 200 Index | | Receive | | | 15.60 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 5,901 | | | | (8,685 | ) |
UBS AG | | Nikkei 225 Index | | Receive | | | 24.10 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 806,694 | | | | (9,018 | ) |
J.P. Morgan Securities LLC | | S&P/ASX 200 Index | | Receive | | | 15.73 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 5,896 | | | | (9,082 | ) |
J.P. Morgan Securities LLC | | Hang Seng China Enterprise Index | | Receive | | | 24.39 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 19,923 | | | | (9,732 | ) |
Goldman Sachs International | | Hang Seng China Enterprise Index | | Receive | | | 24.53 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 19,923 | | | | (10,027 | ) |
Societe Generale | | Nikkei 225 Index | | Receive | | | 24.25 | | | | At Maturity | | | | 12/11/2020 | | | JPY | 808,475 | | | | (10,069 | ) |
Societe Generale | | S&P/ASX 200 Index | | Receive | | | 16.15 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 5,114 | | | | (10,547 | ) |
Societe Generale | | KOSPI 200 Index | | Receive | | | 17.60 | | | | At Maturity | | | | 12/12/2019 | | | KRW | 8,425,923 | | | | (10,678 | ) |
UBS AG | | S&P/ASX 200 Index | | Receive | | | 16.30 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 5,115 | | | | (10,904 | ) |
UBS AG | | S&P/ASX 200 Index | | Receive | | | 15.85 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 6,798 | | | | (11,097 | ) |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 25.00 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 20,410 | | | | (11,482 | ) |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 25.10 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 20,410 | | | | (11,636 | ) |
UBS AG | | S&P/ASX 200 Index | | Receive | | | 15.75 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 5,902 | | | | (12,308 | ) |
J.P. Morgan Securities LLC | | Hang Seng China Enterprise Index | | Receive | | | 25.10 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 22,970 | | | | (12,415 | ) |
J.P. Morgan Securities LLC | | Hang Seng China Enterprise Index | | Receive | | | 24.94 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 25,942 | | | | (13,461 | ) |
J.P. Morgan Securities LLC | | Hang Seng China Enterprise Index | | Receive | | | 25.00 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 25,349 | | | | (14,013 | ) |
Goldman Sachs International | | Hang Seng China Enterprise Index | | Receive | | | 25.20 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 25,999 | | | | (14,834 | ) |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 25.30 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 26,000 | | | | (15,168 | ) |
UBS AG | | Hang Seng Index | | Receive | | | 22.77 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 29,979 | | | | (15,300 | ) |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 24.20 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 35,793 | | | | (16,761 | ) |
UBS AG | | S&P/ASX 200 Index | | Receive | | | 15.84 | | | | At Maturity | | | | 12/19/2019 | | | AUD | 8,330 | | | | (16,816 | ) |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 24.40 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 35,793 | | | | (17,360 | ) |
J.P. Morgan Securities LLC | | Hang Seng China Enterprise Index | | Receive | | | 24.44 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 34,322 | | | | (17,735 | ) |
Goldman Sachs International | | Hang Seng China Enterprise Index | | Receive | | | 25.05 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 33,729 | | | | (17,792 | ) |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 25.00 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 32,612 | | | | (18,407 | ) |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 25.39 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 31,377 | | | | (18,860 | ) |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 24.70 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 36,236 | | | | (19,255 | ) |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 24.80 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 36,236 | | | | (19,717 | ) |
Societe Generale | | Hang Seng China Enterprise Index | | Receive | | | 25.33 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 35,247 | | | | (19,883 | ) |
Goldman Sachs International | | Hang Seng China Enterprise Index | | Receive | | | 25.00 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 36,236 | | | | (20,437 | ) |
J.P. Morgan Securities LLC | | Hang Seng Index | | Receive | | | 21.80 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 52,590 | | | | (20,955 | ) |
J.P. Morgan Securities LLC | | Hang Seng China Enterprise Index | | Receive | | | 25.00 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 48,859 | | | | (25,650 | ) |
Goldman Sachs International | | Hang Seng China Enterprise Index | | Receive | | | 25.05 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 51,400 | | | | (27,114 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
33 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Variance Swap Agreements(a)—(continued) | |
| Counterparty | | Reference Entity | | Pay/ Receive
Variance | | Volatility
Strike
Rate | | | Payment
Frequency | | | Maturity Date | | | Notional Value | | | Unrealized
Appreciation
(Depreciation) | |
J.P. Morgan Securities LLC | | Hang Seng China Enterprise Index | | Receive | | | 26.89 | % | | | At Maturity | | | | 12/30/2019 | | | HKD | 35,657 | | | $ | (27,386 | ) |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 25.70 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 44,329 | | | | (28,011 | ) |
UBS AG | | Hang Seng China Enterprise Index | | Receive | | | 24.80 | | | | At Maturity | | | | 12/30/2019 | | | HKD | 91,010 | | | | (45,875 | ) |
Subtotal — Depreciation | | | | | | | | | | | | | | | | | | | (746,174 | ) |
Total — Variance Swap Agreements | | | | | | | | | | | | | | | $ | (663,642 | ) |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-The-Counter Volatility Swap Agreements(a) | |
| Counterparty | | Reference Entity | | | Pay/
Receive
Variance | | | Volatility
Strike
Rate | | | Payment
Frequency | | | Maturity
Date | | | Notional
Value | | | Unrealized
Appreciation
(Depreciation) | |
Currency Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
J.P. Morgan Securities LLC | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 04/15/2020 | | | USD | 3,015 | | | $ | 547 | |
Citigroup Global Markets Inc. | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 04/15/2020 | | | USD | 3,015 | | | | 497 | |
Citigroup Global Markets Inc. | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 04/15/2020 | | | USD | 3,269 | | | | 158 | |
Subtotal — Appreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,202 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Merrill Lynch International | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 04/07/2020 | | | USD | 159 | | | | (13 | ) |
Merrill Lynch International | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 04/07/2020 | | | USD | 5,224 | | | | (424 | ) |
J.P. Morgan Securities LLC | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 04/15/2020 | | | USD | 2,634 | | | | (511 | ) |
Citigroup Global Markets Inc. | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 04/15/2020 | | | USD | 3,332 | | | | (873 | ) |
Citigroup Global Markets Inc. | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 04/15/2020 | | | USD | 4,325 | | | | (981 | ) |
J.P. Morgan Securities LLC | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 1,295 | | | | (1,028 | ) |
Bank of America, N.A. | | | AUD/USD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 04/07/2020 | | | USD | 5,224 | | | | (1,278 | ) |
Barclays Bank PLC | | | AUD/USD | | | | Receive | | | | 0.72 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 902 | | | | (1,512 | ) |
Goldman Sachs International | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 987 | | | | (1,806 | ) |
J.P. Morgan Securities LLC | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 1,304 | | | | (1,899 | ) |
Citigroup Global Markets Inc. | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 04/15/2020 | | | USD | 5,062 | | | | (1,976 | ) |
J.P. Morgan Securities LLC | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 1,128 | | | | (1,979 | ) |
Citigroup Global Markets Inc. | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 04/15/2020 | | | USD | 6,030 | | | | (2,236 | ) |
Citigroup Global Markets Inc. | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 1,954 | | | | (2,303 | ) |
J.P. Morgan Securities LLC | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 1,565 | | | | (2,625 | ) |
Citigroup Global Markets Inc. | | | AUD/USD | | | | Receive | | | | 0.71 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 2,930 | | | | (3,347 | ) |
Merrill Lynch International | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 04/07/2020 | | | USD | 18,701 | | | | (3,348 | ) |
Goldman Sachs International | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 3,663 | | | | (3,980 | ) |
Goldman Sachs International | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 3,663 | | | | (4,150 | ) |
Goldman Sachs International | | | AUD/USD | | | | Receive | | | | 0.72 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 2,316 | | | | (5,267 | ) |
J.P. Morgan Securities LLC | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 3,607 | | | | (5,649 | ) |
Barclays Bank PLC | | | USD/CAD | | | | Receive | | | | 1.25 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 3,607 | | | | (5,992 | ) |
J.P. Morgan Securities LLC | | | AUD/USD | | | | Receive | | | | 0.72 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 4,280 | | | | (7,131 | ) |
J.P. Morgan Securities LLC | | | AUD/USD | | | | Receive | | | | 0.72 | % | | | At Maturity | | | | 12/09/2019 | | | USD | 4,280 | | | | (7,446 | ) |
Subtotal — Depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | (67,754 | ) |
Total — Volatility Swap Agreements | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (66,552 | ) |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
34 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | % | | | Monthly | | | | 16,864 | | | | June-2019 | | | $ | 5,053,234 | | | $ | — | | | $ | 4,263 | | | $ | 4,263 | |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 1,261 | | | | June-2019 | | | | 377,854 | | | | — | | | | 319 | | | | 319 | |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 128 | | | | June-2019 | | | | 38,355 | | | | — | | | | 0 | | | | 0 | |
Macquarie Bank Ltd. | | | Receive | | |
| Macqarie MQCP641E
Index |
| | | 0.12 | | | | Monthly | | | | 11,853 | | | | February-2020 | | | | 2,482,351 | | | | — | | | | 34,209 | | | | 34,209 | |
Macquarie Bank Ltd. | | | Receive | | |
| Macquarie
MQCP625E Index |
| | | 0.24 | | | | Monthly | | | | 4,235 | | | | February-2020 | | | | 658,646 | | | | — | | | | 29 | | | | 29 | |
Macquarie Bank Ltd. | | | Receive | | |
| Macquarie
MQCP625E Index |
| | | 0.24 | | | | Monthly | | | | 3,959 | | | | February-2020 | | | | 615,721 | | | | — | | | | 28 | | | | 28 | |
Subtotal | | | | | | | | | | | | | | | | | | | | — | | | | 38,848 | | | | 38,848 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goldman Sachs International | | | Receive | | | | Bovespa Index | | | | — | | | | Monthly | | | | 29 | | | | June-2019 | | | | 2,726,969 | | | | — | | | | 0 | | | | 0 | |
Subtotal — Appreciation | | | | | | | | | | | | | | | | | | | | — | | | | 38,848 | | | | 38,848 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commodity Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 237 | | | | June-2019 | | | | 71,016 | | | | — | | | | (60 | ) | | | (60 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 244 | | | | June-2019 | | | | 73,114 | | | | — | | | | (62 | ) | | | (62 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 277 | | | | June-2019 | | | | 83,002 | | | | — | | | | (70 | ) | | | (70 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 380 | | | | June-2019 | | | | 113,866 | | | | — | | | | (96 | ) | | | (96 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 388 | | | | June-2019 | | | | 116,263 | | | | — | | | | (98 | ) | | | (98 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 439 | | | | June-2019 | | | | 131,545 | | | | — | | | | (111 | ) | | | (111 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 481 | | | | June-2019 | | | | 144,130 | | | | — | | | | (122 | ) | | | (122 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 523 | | | | June-2019 | | | | 156,715 | | | | — | | | | (132 | ) | | | (132 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 644 | | | | June-2019 | | | | 192,972 | | | | — | | | | (163 | ) | | | (163 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 698 | | | | June-2019 | | | | 209,153 | | | | — | | | | (177 | ) | | | (177 | ) |
BNP Paribas S.A. | | | Receive | | |
| BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index |
| | | 0.15 | | | | Monthly | | | | 748 | | | | June-2019 | | | | 224,135 | | | | — | | | | (189 | ) | | | (189 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
35 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-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) | |
BNP Paribas S.A. | | Receive | | BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index | | | 0.15 | % | | | Monthly | | | | 1,393 | | | | June-2019 | | | $ | 417,407 | | | $ | — | | | $ | (352 | ) | | $ | (352 | ) |
BNP Paribas S.A. | | Receive | | BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index | | | 0.15 | | | | Monthly | | | | 2,302 | | | | June-2019 | | | | 689,786 | | | | — | | | | (582 | ) | | | (582 | ) |
BNP Paribas S.A. | | Receive | | BNP Paribas DR Alpha
ex-Agriculture and
Livestock Index | | | 0.15 | | | | Monthly | | | | 4,673 | | | | June-2019 | | | | 1,400,247 | | | | — | | | | (1,181 | ) | | | (1,181 | ) |
Macquarie Bank Ltd. | | Receive | | Macqarie MQCP641E
Index | | | 0.12 | | | | Monthly | | | | 515 | | | | February-2020 | | | | 107,855 | | | | — | | | | (1,486 | ) | | | (1,486 | ) |
Macquarie Bank Ltd. | | Receive | | Macqarie MQCP641E
Index | | | 0.12 | | | | Monthly | | | | 669 | | | | February-2020 | | | | 140,107 | | | | — | | | | (1,931 | ) | | | (1,931 | ) |
Macquarie Bank Ltd. | | Receive | | Macqarie MQCP641E
Index | | | 0.12 | | | | Monthly | | | | 837 | | | | February-2020 | | | | 175,291 | | | | — | | | | (2,416 | ) | | | (2,416 | ) |
Macquarie Bank Ltd. | | Receive | | Macquarie
MQCP625E Index | | | 0.24 | | | | Monthly | | | | 78,665 | | | | February-2020 | | | | 12,234,335 | | | | — | | | | (543 | ) | | | (543 | ) |
Subtotal — Depreciation | | | | | | | | | | | | | | | | | | | | — | | | | (9,771 | ) | | | (9,771 | ) |
Total — Total Return Swap Agreements | | | | | | | | | | | | | | | $ | — | | | $ | 29,077 | | | $ | 29,077 | |
| (a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| (b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| (c) | The table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
| | | | | | |
| Reference Entity Components | |
| Reference Entity | | Underlying Components | | Percentage | |
Macquarie MQCP625E Index | |
| | Long Futures Contracts | | | | |
| | Aluminum | | | 13.76 | % |
| | Heating Oil | | | 8.57 | |
| | High Grade Copper | | | 19.16 | |
| | Natural Gas | | | 19.02 | |
| | Nickel | | | 6.75 | |
| | Unleaded Gasoline | | | 8.73 | |
| | WTI Crude | | | 16.18 | |
| | Zinc | | | 7.83 | |
| | |
| | Short Futures Contracts | | | | |
| | Aluminum | | | (13.76 | )% |
| | Heating Oil | | | (8.57 | ) |
| | High Grade Copper | | | (19.16 | ) |
| | Natural Gas | | | (19.02 | ) |
| | Nickel | | | (6.75 | ) |
| | Unleaded Gasoline | | | (8.73 | ) |
| | WTI Crude | | | (16.18 | ) |
| | Zinc | | | (7.83 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
36 Invesco Global Targeted Returns Fund
| | | | | | |
| Reference Entity Components—(continued) | |
| Reference Entity | | Underlying Components | | Percentage | |
Macquarie MQCP641E Index | |
| | Long Futures Contracts | | | | |
| | Aluminum | | | 13.76 | % |
| | Heating Oil | | | 8.57 | |
| | High Grade Copper | | | 19.16 | |
| | Natural Gas | | | 19.02 | |
| | Nickel | | | 6.75 | |
| | Unleaded Gasoline | | | 8.73 | |
| | WTI Crude | | | 16.18 | |
| | Zinc | | | 7.83 | |
| | |
| | Short Futures Contracts | | | | |
| | Aluminum | | | (13.76 | )% |
| | Heating Oil | | | (8.57 | ) |
| | High Grade Copper | | | (19.16 | ) |
| | Natural Gas | | | (19.02 | ) |
| | Nickel | | | (6.75 | ) |
| | Unleaded Gasoline | | | (8.73 | ) |
| | WTI Crude | | | (16.18 | ) |
| | Zinc | | | (7.83 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Societe Generale | | | Pay | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.300% |
| | | Monthly | | | | 828 | | | | October-2019 | | | $ | 822,162 | | | $ | — | | | $ | 4,480 | | | $ | 4,480 | |
Societe Generale | | | Pay | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.300% |
| | | Monthly | | | | 604 | | | | October-2019 | | | | 599,523 | | | | — | | | | 3,267 | | | | 3,267 | |
Societe Generale | | | Pay | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 545 | | | | October-2019 | | | | 541,123 | | | | — | | | | 2,953 | | | | 2,953 | |
Societe Generale | | | Pay | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 372 | | | | October-2019 | | | | 369,377 | | | | — | | | | 2,013 | | | | 2,013 | |
Societe Generale | | | Pay | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 371 | | | | October-2019 | | | | 368,207 | | | | — | | | | 2,005 | | | | 2,005 | |
Societe Generale | | | Pay | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 64 | | | | October-2019 | | | | 63,982 | | | | — | | | | 352 | | | | 352 | |
UBS AG | | | Receive | | |
| S&P Homebuilders
Select Industry
Total Return Index |
| |
| 3 Month USD
LIBOR + 0.280% |
| | | Monthly | | | | 80 | | | | November-2019 | | | | 396,121 | | | | — | | | | 1 | | | | 1 | |
Subtotal — Appreciation | | | | | | | | | | | | | | | | | | | | — | | | | 15,071 | | | | 15,071 | |
Equity Risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
J.P. Morgan Securities LLC | | | Pay | | |
| MSCI World Energy
Sector Total Return Index |
| |
| 3 Month USD
LIBOR - 0.540% |
| | | Monthly | | | | 1,291 | | | | September-2019 | | | | 431,923 | | | | — | | | | (6,477 | ) | | | (6,477 | ) |
Societe Generale | | | Receive | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 49 | | | | October-2019 | | | | 48,654 | | | | — | | | | (266 | ) | | | (266 | ) |
Societe Generale | | | Receive | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 133 | | | | October-2019 | | | | 132,063 | | | | — | | | | (719 | ) | | | (719 | ) |
Societe Generale | | | Receive | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 142 | | | | October-2019 | | | | 140,999 | | | | — | | | | (768 | ) | | | (768 | ) |
Societe Generale | | | Receive | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 189 | | | | October-2019 | | | | 187,668 | | | | — | | | | (1,022 | ) | | | (1,022 | ) |
Societe Generale | | | Receive | | |
| SG Strong Balance
Sheet 250 Index |
| |
| 3 Month USD
LIBOR + 0.230% |
| | | Monthly | | | | 213 | | | | October-2019 | | | | 211,551 | | | | — | | | | (1,150 | ) | | | (1,150 | ) |
UBS AG | | | Pay | | |
| MSCI World Energy
Sector Total Return
Index |
| |
| 3 Month USD
LIBOR - 0.300% |
| | | Monthly | | | | 66 | | | | September-2019 | | | | 21,748 | | | | — | | | | (23 | ) | | | (23 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
37 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OpenOver-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) | |
UBS AG | | Pay | | MSCI World Energy
Sector Total
Return Index | | 3 Month USD
LIBOR - 0.385% | | | Monthly | | | | 519 | | | | September-2019 | | | $ | 171,396 | | | $ | — | | | $ | (179 | ) | | $ | (179 | ) |
UBS AG | | Pay | | MSCI World Energy
Sector Total
Return Index | | 3 Month USD
LIBOR - 0.300% | | | Monthly | | | | 538 | | | | September-2019 | | | | 177,590 | | | | — | | | | (185 | ) | | | (185 | ) |
UBS AG | | Pay | | MSCI World Energy
Sector Total
Return Index | | 3 Month USD
LIBOR - 0.300% | | | Monthly | | | | 618 | | | | September-2019 | | | | 203,958 | | | | — | | | | (212 | ) | | | (212 | ) |
UBS AG | | Pay | | MSCI World Energy
Sector Total
Return Index | | 3 Month USD
LIBOR - 0.300% | | | Monthly | | | | 765 | | | | September-2019 | | | | 252,490 | | | | — | | | | (262 | ) | | | (262 | ) |
UBS AG | | Pay | | MSCI World Energy
Sector Total
Return Index | | 3 Month USD
LIBOR - 0.385% | | | Monthly | | | | 772 | | | | October-2019 | | | | 254,873 | | | | — | | | | (265 | ) | | | (265 | ) |
UBS AG | | Pay | | MSCI World Energy
Sector Total
Return Index | | 3 Month USD
LIBOR - 0.300% | | | Monthly | | | | 842 | | | | September-2019 | | | | 278,000 | | | | — | | | | (289 | ) | | | (289 | ) |
UBS AG | | Pay | | MSCI World Energy
Sector Total
Return Index | | 3 Month USD
LIBOR - 0.385% | | | Monthly | | | | 1,627 | | | | September-2019 | | | | 537,062 | | | | — | | | | (559 | ) | | | (559 | ) |
UBS AG | | Pay | | MSCI World Energy
Sector Total
Return Index | | 3 Month USD
LIBOR - 0.385% | | | Monthly | | | | 3,859 | | | | October-2019 | | | | 1,273,759 | | | | — | | | | (1,326 | ) | | | (1,326 | ) |
UBS AG | | Pay | | S&P Homebuilders
Select Industry
Total Return Index | | 3 Month USD
LIBOR + 0.280% | | | Monthly | | | | 103 | | | | November-2019 | | | | 510,006 | | | | — | | | | (1 | ) | | | (1 | ) |
UBS AG | | Pay | | S&P Homebuilders
Select Industry
Total Return Index | | 3 Month USD
LIBOR + 0.280% | | | Monthly | | | | 115 | | | | November-2019 | | | | 569,424 | | | | — | | | | (1 | ) | | | (1 | ) |
UBS AG | | Pay | | S&P Homebuilders
Select Industry
Total Return Index | | 3 Month USD
LIBOR + 0.280% | | | Monthly | | | | 162 | | | | November-2019 | | | | 802,145 | | | | — | | | | (1 | ) | | | (1 | ) |
UBS AG | | Pay | | S&P Homebuilders
Select Industry
Total Return Index | | 3 Month USD
LIBOR + 0.280% | | | Monthly | | | | 133 | | | | November-2019 | | | | 658,551 | | | | — | | | | (1 | ) | | | (1 | ) |
Subtotal — Depreciation | | | | — | | | | (13,706 | ) | | | (13,706 | ) |
Total — Total Return Swap Agreements — Equity Risk | | | | | | | | | | | $ | — | | | | 1,365 | | | | 1,365 | |
| (a) | Over-The-Counter options purchased, options written and Swap agreements are collateralized by cash held with Counterparties in the amount of $1,886,000. |
| (b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| | | | | | | | | | | | | | | | | | | | | | |
| Open Forward Foreign Currency Contracts | |
Settlement
Date | | Counterparty | | Contract to | | | Unrealized
Appreciation
(Depreciation) | |
| | Deliver | | | Receive | |
Currency Risk | | | | | | | | | | | | | | | | | | | | | | |
05/10/2019 | | Barclays Bank PLC | | | TWD | | | | 80,027,564 | | | | USD | | | | 2,615,707 | | | $ | 24,707 | |
05/10/2019 | | Barclays Bank PLC | | | KRW | | | | 3,033,978,287 | | | | USD | | | | 2,717,255 | | | | 119,271 | |
05/10/2019 | | Barclays Bank PLC | | | USD | | | | 1,067,275 | | | | MXN | | | | 20,672,050 | | | | 21,911 | |
06/13/2019 | | Barclays Bank PLC | | | EUR | | | | 3,231,201 | | | | USD | | | | 3,691,282 | | | | 54,267 | |
07/12/2019 | | Barclays Bank PLC | | | CAD | | | | 1,238,800 | | | | USD | | | | 931,800 | | | | 5,442 | |
07/12/2019 | | Barclays Bank PLC | | | KRW | | | | 2,089,947,287 | | | | USD | | | | 1,847,926 | | | | 54,120 | |
07/12/2019 | | Barclays Bank PLC | | | USD | | | | 318,947 | | | | MXN | | | | 6,221,500 | | | | 5,540 | |
05/10/2019 | | Barclays Bank PLC | | | SEK | | | | 186,270 | | | | EUR | | | | 169,476 | | | | 3,931 | |
06/13/2019 | | Barclays Bank PLC | | | NZD | | | | 847,900 | | | | USD | | | | 572,040 | | | | 5,299 | |
05/10/2019 | | Barclays Bank PLC | | | NZD | | | | 1,131,947 | | | | USD | | | | 758,911 | | | | 2,780 | |
05/10/2019 | | BNP Paribas S.A. | | | USD | | | | 127,449 | | | | AUD | | | | 181,801 | | | | 737 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
38 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | |
| Open Forward Foreign Currency Contracts—(continued) | |
Settlement
Date | | Counterparty | | Contract to | | | Unrealized
Appreciation
(Depreciation) | |
| | Deliver | | | Receive | |
05/10/2019 | | Citibank, N.A. | | | CAD | | | | 674,098 | | | | USD | | | | 509,607 | | | $ | 6,317 | |
05/16/2019 | | Citibank, N.A. | | | ZAR | | | | 5,133,861 | | | | USD | | | | 363,171 | | | | 4,838 | |
05/10/2019 | | Citibank, N.A. | | | AUD | | | | 1,992,135 | | | | USD | | | | 1,418,191 | | | | 13,562 | |
04/14/2020 | | Citibank, N.A. | | | HKD | | | | 27,545,934 | | | | USD | | | | 3,536,277 | | | | 5,299 | |
07/12/2019 | | Citibank, N.A. | | | NZD | | | | 419,394 | | | | USD | | | | 281,237 | | | | 752 | |
05/10/2019 | | Goldman Sachs International | | | USD | | | | 3,629,549 | | | | INR | | | | 263,855,507 | | | | 160,457 | |
05/10/2019 | | Goldman Sachs International | | | EUR | | | | 1,378,000 | | | | USD | | | | 1,572,920 | | | | 26,403 | |
05/10/2019 | | Goldman Sachs International | | | GBP | | | | 970,000 | | | | USD | | | | 1,287,087 | | | | 21,664 | |
06/13/2019 | | Goldman Sachs International | | | USD | | | | 2,340,462 | | | | JPY | | | | 259,922,104 | | | | 913 | |
06/13/2019 | | Goldman Sachs International | | | EUR | | | | 1,631,266 | | | | NOK | | | | 14,214,833 | | | | 19,089 | |
06/13/2019 | | Goldman Sachs International | | | CAD | | | | 1,132,200 | | | | USD | | | | 853,202 | | | | 7,172 | |
06/13/2019 | | Goldman Sachs International | | | CNY | | | | 17,716,062 | | | | USD | | | | 2,642,098 | | | | 12,373 | |
06/13/2019 | | Goldman Sachs International | | | BRL | | | | 4,365,500 | | | | USD | | | | 1,143,934 | | | | 34,174 | |
07/12/2019 | | Goldman Sachs International | | | CNY | | | | 405,500 | | | | USD | | | | 60,396 | | | | 208 | |
07/12/2019 | | Goldman Sachs International | | | BRL | | | | 1,484,500 | | | | USD | | | | 383,117 | | | | 6,630 | |
06/21/2019 | | Goldman Sachs International | | | GBP | | | | 1,500,000 | | | | USD | | | | 1,975,050 | | | | 13,849 | |
06/21/2019 | | Goldman Sachs International | | | EUR | | | | 185,000 | | | | USD | | | | 208,800 | | | | 420 | |
05/16/2019 | | Goldman Sachs International | | | ZAR | | | | 11,123,365 | | | | USD | | | | 789,270 | | | | 12,880 | |
05/10/2019 | | Goldman Sachs International | | | NOK | | | | 179,250 | | | | EUR | | | | 160,373 | | | | 736 | |
06/21/2019 | | Goldman Sachs International | | | USD | | | | 169,589 | | | | GBP | | | | 130,000 | | | | 382 | |
05/10/2019 | | Goldman Sachs International | | | USD | | | | 67,252 | | | | AUD | | | | 95,936 | | | | 392 | |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | EUR | | | | 1,638,582 | | | | NOK | | | | 14,182,333 | | | | 5,776 | |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | EUR | | | | 2,680,842 | | | | USD | | | | 3,085,754 | | | | 77,070 | |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | BRL | | | | 4,126,000 | | | | USD | | | | 1,116,176 | | | | 64,591 | |
05/13/2019 | | J.P. Morgan Chase Bank, N.A. | | | USD | | | | 235,766 | | | | RUB | | | | 15,644,487 | | | | 5,843 | |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | CAD | | | | 1,047,900 | | | | USD | | | | 796,696 | | | | 14,320 | |
06/13/2019 | | J.P. Morgan Chase Bank, N.A. | | | USD | | | | 1,069,674 | | | | MXN | | | | 20,941,008 | | | | 27,634 | |
06/13/2019 | | J.P. Morgan Chase Bank, N.A. | | | KRW | | | | 2,441,608,287 | | | | USD | | | | 2,173,313 | | | | 80,087 | |
07/12/2019 | | J.P. Morgan Chase Bank, N.A. | | | EUR | | | | 1,520,560 | | | | USD | | | | 1,724,016 | | | | 8,205 | |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | AUD | | | | 1,128,089 | | | | USD | | | | 802,969 | | | | 7,568 | |
05/16/2019 | | J.P. Morgan Chase Bank, N.A. | | | ZAR | | | | 17,968,511 | | | | USD | | | | 1,282,534 | | | | 28,367 | |
06/13/2019 | | J.P. Morgan Chase Bank, N.A. | | | NZD | | | | 847,900 | | | | USD | | | | 573,370 | | | | 6,629 | |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | NZD | | | | 563,854 | | | | USD | | | | 378,743 | | | | 2,093 | |
07/12/2019 | | J.P. Morgan Chase Bank, N.A. | | | NZD | | | | 423,950 | | | | USD | | | | 285,941 | | | | 2,410 | |
05/10/2019 | | Merrill Lynch International | | | CAD | | | | 635,433 | | | | USD | | | | 474,909 | | | | 487 | |
05/13/2019 | | Morgan Stanley & Co. LLC | | | USD | | | | 289,457 | | | | RUB | | | | 19,237,313 | | | | 7,639 | |
05/28/2019 | | Morgan Stanley & Co. LLC | | | CAD | | | | 38,866 | | | | USD | | | | 29,561 | | | | 531 | |
06/13/2019 | | Morgan Stanley & Co. LLC | | | USD | | | | 419,061 | | | | RUB | | | | 27,908,400 | | | | 10,019 | |
07/12/2019 | | Morgan Stanley & Co. LLC | | | USD | | | | 412,017 | | | | RUB | | | | 27,231,000 | | | | 4,973 | |
05/10/2019 | | Morgan Stanley & Co. LLC | | | CAD | | | | 3,678,732 | | | | USD | | | | 2,763,111 | | | | 16,527 | |
06/13/2019 | | Standard Charted Bank PLC | | | TWD | | | | 78,067,138 | | | | USD | | | | 2,540,834 | | | | 7,709 | |
07/12/2019 | | Standard Charted Bank PLC | | | TWD | | | | 48,714,597 | | | | USD | | | | 1,587,984 | | | | 4,273 | |
04/14/2020 | | Standard Charted Bank PLC | | | HKD | | | | 26,910,066 | | | | USD | | | | 3,454,900 | | | | 5,432 | |
05/16/2019 | | State Street Bank & Trust Co. | | | DKK | | | | 1,149,671 | | | | USD | | | | 175,767 | | | | 2,825 | |
05/16/2019 | | State Street Bank & Trust Co. | | | THB | | | | 4,865,000 | | | | USD | | | | 153,315 | | | | 883 | |
05/16/2019 | | State Street Bank & Trust Co. | | | BRL | | | | 167,000 | | | | USD | | | | 43,915 | | | | 1,370 | |
05/16/2019 | | State Street Bank & Trust Co. | | | AUD | | | | 1,653,646 | | | | USD | | | | 1,174,807 | | | | 8,674 | |
05/16/2019 | | State Street Bank & Trust Co. | | | SGD | | | | 165,518 | | | | USD | | | | 122,650 | | | | 931 | |
05/16/2019 | | State Street Bank & Trust Co. | | | CAD | | | | 658,000 | | | | USD | | | | 493,919 | | | | 2,577 | |
05/16/2019 | | State Street Bank & Trust Co. | | | SEK | | | | 2,962,647 | | | | USD | | | | 323,657 | | | | 11,371 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
39 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | |
| Open Forward Foreign Currency Contracts—(continued) | |
Settlement
Date | | Counterparty | | Contract to | | | Unrealized
Appreciation
(Depreciation) | |
| | Deliver | | | Receive | |
05/16/2019 | | State Street Bank & Trust Co. | | | HKD | | | | 9,530,076 | | | | USD | | | | 1,215,702 | | | $ | 635 | |
05/16/2019 | | State Street Bank & Trust Co. | | | EUR | | | | 6,451,656 | | | | USD | | | | 7,350,950 | | | | 106,582 | |
05/16/2019 | | State Street Bank & Trust Co. | | | NOK | | | | 3,083,071 | | | | USD | | | | 362,053 | | | | 4,502 | |
05/16/2019 | | State Street Bank & Trust Co. | | | GBP | | | | 6,373,046 | | | | USD | | | | 8,451,118 | | | | 134,456 | |
05/16/2019 | | State Street Bank & Trust Co. | | | JPY | | | | 90,659,161 | | | | USD | | | | 818,114 | | | | 3,322 | |
05/16/2019 | | State Street Bank & Trust Co. | | | KRW | | | | 1,269,852,643 | | | | USD | | | | 1,125,769 | | | | 38,185 | |
05/16/2019 | | State Street Bank & Trust Co. | | | CNY | | | | 2,261,811 | | | | USD | | | | 337,626 | | | | 1,883 | |
05/16/2019 | | State Street Bank & Trust Co. | | | INR | | | | 16,931,000 | | | | USD | | | | 244,336 | | | | 1,324 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 292 | | | | IDR | | | | 4,163,000 | | | | 0 | |
05/16/2019 | | State Street Bank & Trust Co. | | | CHF | | | | 931,878 | | | | USD | | | | 937,440 | | | | 21,729 | |
05/16/2019 | | State Street Bank & Trust Co. | | | TWD | | | | 18,161,602 | | | | USD | | | | 590,696 | | | | 2,464 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 16,415 | | | | ZAR | | | | 241,000 | | | | 407 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 60,991 | | | | CAD | | | | 82,000 | | | | 239 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 1,854 | | | | MXN | | | | 36,000 | | | | 41 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 21,570 | | | | INR | | | | 1,506,000 | | | | 45 | |
05/16/2019 | | State Street Bank & Trust Co. | | | ZAR | | | | 143,000 | | | | USD | | | | 10,046 | | | | 66 | |
05/16/2019 | | State Street Bank & Trust Co. | | | MXN | | | | 33,000 | | | | USD | | | | 1,740 | | | | 3 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 274,725 | | | | GBP | | | | 211,000 | | | | 624 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 379,736 | | | | EUR | | | | 340,000 | | | | 2,039 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 6,864 | | | | CHF | | | | 7,000 | | | | 15 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 2,719 | | | | TWD | | | | 84,000 | | | | 1 | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 1,037 | | | | NOK | | | | 9,000 | | | | 7 | |
Subtotal — Appreciation | | | | | | | | | | | | | | | | | | | 1,381,898 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Currency Risk | | | | | | | | | | | | | | | | | | | | | | |
05/10/2019 | | Barclays Bank PLC | | | EUR | | | | 923,842 | | | | SEK | | | | 8,579,001 | | | | (19,990 | ) |
06/13/2019 | | Barclays Bank PLC | | | EUR | | | | 1,772,851 | | | | SEK | | | | 16,641,000 | | | | (14,801 | ) |
05/10/2019 | | Barclays Bank PLC | | | USD | | | | 3,149,187 | | | | CAD | | | | 4,193,183 | | | | (18,508 | ) |
07/12/2019 | | Barclays Bank PLC | | | EUR | | | | 2,489,268 | | | | SEK | | | | 23,039,000 | | | | (49,745 | ) |
07/12/2019 | | Barclays Bank PLC | | | EUR | | | | 1,892,855 | | | | NOK | | | | 16,223,833 | | | | (7,236 | ) |
07/12/2019 | | Citibank, N.A. | | | USD | | | | 1,892,851 | | | | JPY | | | | 209,371,104 | | | | (2,444 | ) |
05/10/2019 | | Citibank, N.A. | | | USD | | | | 82,940 | | | | BRL | | | | 320,000 | | | | (1,383 | ) |
05/10/2019 | | Goldman Sachs International | | | CNY | | | | 19,632,231 | | | | USD | | | | 2,902,673 | | | | (11,535 | ) |
05/10/2019 | | Goldman Sachs International | | | MXN | | | | 1,500,000 | | | | USD | | | | 77,411 | | | | (1,622 | ) |
05/10/2019 | | Goldman Sachs International | | | ZAR | | | | 2,000,000 | | | | USD | | | | 137,793 | | | | (1,902 | ) |
06/21/2019 | | Goldman Sachs International | | | USD | | | | 864,442 | | | | GBP | | | | 660,000 | | | | (1,513 | ) |
06/21/2019 | | Goldman Sachs International | | | USD | | | | 338,264 | | | | EUR | | | | 300,000 | | | | (350 | ) |
05/10/2019 | | Goldman Sachs International | | | USD | | | | 1,518,229 | | | | AUD | | | | 2,132,075 | | | | (14,930 | ) |
05/10/2019 | | Goldman Sachs International | | | USD | | | | 334,233 | | | | CAD | | | | 445,780 | | | | (1,409 | ) |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | USD | | | | 2,492,131 | | | | JPY | | | | 272,025,104 | | | | (48,526 | ) |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | USD | | | | 710,895 | | | | AUD | | | | 1,003,124 | | | | (3,605 | ) |
07/12/2019 | | J.P. Morgan Chase Bank, N.A. | | | NZD | | | | 852,456 | | | | USD | | | | 567,683 | | | | (2,426 | ) |
05/10/2019 | | J.P. Morgan Chase Bank, N.A. | | | AUD | | | | 292,712 | | | | USD | | | | 205,123 | | | | (1,265 | ) |
05/20/2019 | | J.P. Morgan Chase Bank, N.A. | | | USD | | | | 20,000 | | | | ARS | | | | 992,400 | | | | (558 | ) |
07/12/2019 | | Standard Charted Bank PLC | | | USD | | | | 1,946,079 | | | | INR | | | | 135,267,114 | | | | (18,127 | ) |
05/10/2019 | | Standard Charted Bank PLC | | | INR | | | | 13,565,400 | | | | USD | | | | 194,064 | | | | (788 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | MXN | | | | 906,000 | | | | USD | | | | 47,312 | | | | (378 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | ZAR | | | | 2,115,000 | | | | USD | | | | 145,563 | | | | (2,061 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 542,683 | | | | HKD | | | | 4,254,000 | | | | (304 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 137,072 | | | | KRW | | | | 155,223,295 | | | | (4,130 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | IDR | | | | 631,416,000 | | | | USD | | | | 44,234 | | | | (7 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 4,962 | | | | IDR | | | | 70,201,000 | | | | (43 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 638,707 | | | | AUD | | | | 899,000 | | | | (4,740 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 48,083 | | | | SEK | | | | 440,000 | | | | (1,704 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 62,723 | | | | NOK | | | | 534,000 | | | | (794 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 1,072,835 | | | | EUR | | | | 947,000 | | | | (9,476 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 605,896 | | | | GBP | | | | 461,000 | | | | (4,304 | ) |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
40 Invesco Global Targeted Returns Fund
| | | | | | | | | | | | | | | | | | | | | | |
| Open Forward Foreign Currency Contracts—(continued) | |
Settlement
Date | | Counterparty | | Contract to | | | Unrealized
Appreciation
(Depreciation) | |
| | Deliver | | | Receive | |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 102,393 | | | | CHF | | | | 102,000 | | | $ | (2,162 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 59,976 | | | | CAD | | | | 80,000 | | | | (239 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 179,666 | | | | JPY | | | | 19,802,000 | | | | (1,698 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 1,552 | | | | BRL | | | | 6,000 | | | | (24 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 39,644 | | | | INR | | | | 2,758,000 | | | | (58 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | JPY | | | | 7,390,000 | | | | USD | | | | 66,190 | | | | (227 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 48,902 | | | | TWD | | | | 1,506,000 | | | | (125 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 12,291 | | | | THB | | | | 391,000 | | | | (41 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | USD | | | | 1,795 | | | | MXN | | | | 34,000 | | | | (5 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | GBP | | | | 10,000 | | | | USD | | | | 13,021 | | | | (29 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | AUD | | | | 101,000 | | | | USD | | | | 70,903 | | | | (321 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | CAD | | | | 43,000 | | | | USD | | | | 31,991 | | | | (119 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | THB | | | | 194,000 | | | | USD | | | | 6,033 | | | | (46 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | SEK | | | | 112,000 | | | | USD | | | | 11,729 | | | | (76 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | SGD | | | | 7,000 | | | | USD | | | | 5,130 | | | | (17 | ) |
05/16/2019 | | State Street Bank & Trust Co. | | | TWD | | | | 71,000 | | | | USD | | | | 2,292 | | | | (8 | ) |
Subtotal — Depreciation | | | | | | | | | | | | | | | | | | | (255,799 | ) |
Total Forward Foreign Currency Contracts | | | | | | | | | | | | | | | | | | $ | 1,126,099 | |
Abbreviations:
| | |
| ARS | | – Argentina Peso |
| AUD | | – Australian Dollar |
| BBSW | | – Bank Bill Swap Rate |
| BRL | | – Brazilian Real |
| CAD | | – Canadian Dollar |
| CDOR | | – Canadian Dealer Offered Rate |
| CHF | | – Swiss Franc |
| CNY | | – Chinese Yuan Renminbi |
| CPI | | – Consumer Price Index |
| DKK | | – Denmark Krone |
| | |
| EUR | | – Euro |
| GBP | | – British Pound Sterling |
| HKD | | – Hong Kong Dollar |
| IDR | | – Indonesian Rupiah |
| INR | | – Indian Rupee |
| JPY | | – Japanese Yen |
| KRW | | – South Korean Won |
| LIBOR | | – London Interbank Offered Rate |
| MXN | | – Mexican Peso |
| NOK | | – Norwegian Krone |
| | |
| NSA | | –Non-Seasonally Adjusted |
| NZD | | – New Zealand Dollar |
| RUB | | – Russian Ruble |
| SEK | | – Swedish Krona |
| SGD | | – Singapore Dollar |
| THB | | – Thai Baht |
| TWD | | – Taiwan New Dollar |
| UK | | – United Kingdom |
| USD | | – U.S. Dollar |
| ZAR | | – South African Rand |
Portfolio Composition
By Asset Type
| | | | | | | | | | | | |
| | | Risk
Allocation(1) | | | Notional Value as % of
Total Net Assets(2) | | | Value as % of
Total Net Assets(3) | |
Commodity | | | 5.12 | % | | | 37.92 | % | | | 0.04 | % |
Credit | | | 4.88 | | | | 8.18 | | | | 15.52 | |
Currency | | | 29.26 | | | | 246.01 | | | | 2.04 | |
Equity | | | 30.61 | | | | 823.17 | | | | 31.80 | |
Inflation | | | 4.64 | | | | 135.61 | | | | 3.57 | |
Interest Rate | | | 18.10 | | | | 440.24 | | | | 14.51 | |
Volatility(4) | | | 7.39 | | | | 0.67 | | | | (1.07 | ) |
Money Market Funds Plus Other Assets less Liabilities | | | — | | | | — | | | | 33.59 | |
| (1) | The values in this column represent the Adviser’s proprietary measure of risk that each asset type contributes to the Fund. The risk associated with each asset type is calculated by aggregating the independent risk, as of the end of the fiscal period, of each of the Fund’s investment ideas that are included in that asset type. Independent risk is determined by measuring the historical price volatility of the assets or asset classes that comprise the investment idea using a statistical measurement called standard deviation. Standard deviation measures how much historical prices vary from their average over a certain period of time. The risk of each investment idea takes into account the Adviser’s evaluation of the risk dynamics and expected correlation of the components of the investment idea based on historical price movements. Historical price movements may not be representative of future price movements and, therefore, the actual risk of each asset type may be much greater or lower than the values shown. In addition, there are ways to measure risk other than standard deviation which, if used, may have resulted in a different risk allocation. |
| (2) | The values in this column represent the gross notional amount of the derivative instruments and other investments held by the Fund, including purchased and written options, futures, swaps and investment companies. The notional amount of a derivative is the nominal or face amount used to calculate payments made on the instrument. The gross notional amount does not reflect any offsetting or netting of long and short positions. The notional amounts of derivatives and other investments denominated in foreign currencies have been adjusted to the U.S. dollar equivalent using spot exchange rates. See the Consolidated Schedule of Investments for a complete list of derivative instruments held by the Fund as of April 30, 2019. |
| (3) | The percentages in this column were calculated by adding the market value of purchased options, the net unrealized appreciation/depreciation of written options, futures, swaps and forwards, and the net asset value of affiliated money market funds held by the Fund. See the Consolidated Schedule of Investments for the complete list of derivative instruments held by the Fund as of April 30, 2019. |
| (4) | Includes the volatility and variance swaps held by the Fund, the gains and losses on which are driven by the volatility (i.e., the positive and negative changes in value over time) of a particular asset, such as stocks or currencies, and not by the asset itself. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
41 Invesco Global Targeted Returns Fund
Consolidated Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| | | | |
Assets: | | | | |
Investments in securities, at value (Cost $44,395,247) | | $ | 44,996,238 | |
Investments in affiliated money market funds, at value (Cost $18,432,147) | | | 18,432,678 | |
Other investments: | | | | |
Variation margin receivable — centrally cleared swap agreements | | | 479,229 | |
Swaps receivable — OTC | | | 140,194 | |
Unrealized appreciation on swap agreements — OTC | | | 137,653 | |
Unrealized appreciation on forward foreign currency contracts outstanding | | | 1,381,898 | |
Deposits with brokers: | | | | |
Cash collateral — exchange-traded futures contracts | | | 3,167,734 | |
Cash collateral — centrally cleared swap agreements | | | 575,704 | |
Cash collateral — OTC Derivatives | | | 1,886,000 | |
Cash | | | 283,344 | |
Foreign currencies, at value (Cost $2,340,452) | | | 2,328,208 | |
Receivable for: | | | | |
Investments sold | | | 475,456 | |
Fund shares sold | | | 65,722 | |
Fund expenses absorbed | | | 168,515 | |
Dividends | | | 168,772 | |
Interest | | | 416,384 | |
Investment for trustee deferred compensation and retirement plans | | | 15,149 | |
Other assets | | | 38,353 | |
Total assets | | | 75,157,231 | |
|
Liabilities: | |
Other investments: | | | | |
Options written, at value (premiums received $3,946,029) | | | 3,456,952 | |
Swaps payable — OTC | | | 455,111 | |
Variation margin payable — futures contracts | | | 707,445 | |
Unrealized depreciation on forward foreign currency contracts outstanding | | | 255,799 | |
Unrealized depreciation on swap agreements — OTC | | | 985,225 | |
Payable for: | | | | |
Fund shares reacquired | | | 86,182 | |
Accrued foreign taxes | | | 3,211 | |
Accrued fees to affiliates | | | 22,094 | |
Accrued trustees’ and officers’ fees and benefits | | | 1,594 | |
Accrued other operating expenses | | | 839,380 | |
Trustee deferred compensation and retirement plans | | | 15,149 | |
Total liabilities | | | 6,828,142 | |
Net assets applicable to shares outstanding | | $ | 68,329,089 | |
|
Net assets consist of: | |
Shares of beneficial interest | | $ | 75,561,630 | |
Distributable earnings | | | (7,232,541 | ) |
| | | $ | 68,329,089 | |
| | | | |
Net Assets: | |
Class A | | $ | 9,786,852 | |
Class C | | $ | 5,911,012 | |
Class R | | $ | 21,556 | |
Class Y | | $ | 41,456,458 | |
Class R5 | | $ | 9,740 | |
Class R6 | | $ | 11,143,471 | |
|
Shares outstanding, no par value,
with an unlimited number of shares authorized: | |
Class A | | | 1,010,049 | |
Class C | | | 623,074 | |
Class R | | | 2,239 | |
Class Y | | | 4,258,231 | |
Class R5 | | | 1,000 | |
Class R6 | | | 1,144,941 | |
Class A: | | | | |
Net asset value per share | | $ | 9.69 | |
Maximum offering price per share | | | | |
(Net asset value of $9.69 ¸ 94.50%) | | $ | 10.25 | |
Class C: | | | | |
Net asset value and offering price per share | | $ | 9.49 | |
Class R: | | | | |
Net asset value and offering price per share | | $ | 9.63 | |
Class Y: | | | | |
Net asset value and offering price per share | | $ | 9.74 | |
Class R5: | | | | |
Net asset value and offering price per share | | $ | 9.74 | |
Class R6: | | | | |
Net asset value and offering price per share | | $ | 9.73 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
42 Invesco Global Targeted Returns Fund
Consolidated Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| | | | |
Investment income: | |
Interest | | $ | 424,808 | |
Dividends (net of foreign withholding taxes of $29,638) | | | 400,582 | |
Dividends from affiliated money market funds | | | 280,839 | |
Total investment income | | | 1,106,229 | |
| |
Expenses: | | | | |
Advisory fees | | | 439,044 | |
Administrative services fees | | | 11,881 | |
Custodian fees | | | 54,010 | |
Distribution fees: | | | | |
Class A | | | 13,181 | |
Class C | | | 32,416 | |
Class R | | | 52 | |
Transfer agent fees — A, C, R and Y | | | 31,496 | |
Transfer agent fees — R6 | | | 191 | |
Trustees’ and officers’ fees and benefits | | | 11,762 | |
Registration and filing fees | | | 40,596 | |
Licensing fees | | | 71,842 | |
Reports to shareholders | | | 13,100 | |
Professional services fees | | | 57,089 | |
Pricing fees | | | 473,533 | |
Other | | | 132,175 | |
Total expenses | | | 1,382,368 | |
Less: Fees waived and expenses reimbursed | | | (880,014 | ) |
Net expenses | | | 502,354 | |
Net investment income | | | 603,875 | |
| |
Realized and unrealized gain (loss) from: | | | | |
Net realized gain (loss) from: | | | | |
Investment securities (net of foreign taxes of $4,936) | | | (9,098,236 | ) |
Foreign currencies | | | (563,059 | ) |
Forward foreign currency contracts | | | 1,355,339 | |
Futures contracts | | | 39,496 | |
Option contracts written | | | 7,010,311 | |
Swap agreements | | | (621,462 | ) |
| | | | (1,877,611 | ) |
Change in net unrealized appreciation (depreciation) of: | | | | |
Investment securities (net of foreign taxes of $3,212) | | | 5,661,350 | |
Foreign currencies | | | 39,052 | |
Forward foreign currency contracts | | | 126,299 | |
Futures contracts | | | (2,638,972 | ) |
Option contracts written | | | (799,025 | ) |
Swap agreements | | | 631,984 | |
| | | | 3,020,688 | |
Net realized and unrealized gain | | | 1,143,077 | |
Net increase in net assets resulting from operations | | $ | 1,746,952 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
43 Invesco Global Targeted Returns Fund
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | | | | | | | |
| | | April 30,
2019 | | | October 31,
2018 | |
Operations: | | | | | |
Net investment income | | $ | 603,875 | | | $ | 1,877,806 | |
Net realized gain (loss) | | | (1,877,611 | ) | | | (5,888,031 | ) |
Change in net unrealized appreciation (depreciation) | | | 3,020,688 | | | | (105,703 | ) |
Net increase (decrease) in net assets resulting from operations | | | 1,746,952 | | | | (4,115,928 | ) |
| | |
Distributions to shareholders from distributable earnings: | | | | | | | | |
Class A | | | (209,288 | ) | | | — | |
Class C | | | (61,092 | ) | | | — | |
Class R | | | (310 | ) | | | — | |
Class Y | | | (1,197,534 | ) | | | — | |
Class R5 | | | (207 | ) | | | — | |
Class R6 | | | (232,723 | ) | | | — | |
Total distributions to shareholders from distributable earnings | | | (1,701,154 | ) | | | — | |
| | |
Share transactions–net: | | | | | | | | |
Class A | | | (1,667,480 | ) | | | (7,472,627 | ) |
Class C | | | (1,501,403 | ) | | | (4,529,099 | ) |
Class R | | | 1,066 | | | | (4,720 | ) |
Class Y | | | (28,931,562 | ) | | | (34,676,616 | ) |
Class R6 | | | 259,080 | | | | 2,569,725 | |
Net increase (decrease) in net assets resulting from share transactions | | | (31,840,299 | ) | | | (44,113,337 | ) |
Net increase (decrease) in net assets | | | (31,794,501 | ) | | | (48,229,265 | ) |
| | |
Net assets: | | | | | | | | |
Beginning of period | | | 100,123,590 | | | | 148,352,855 | |
End of period | | $ | 68,329,089 | | | $ | 100,123,590 | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
44 Invesco Global Targeted Returns Fund
Consolidated Financial Highlights
April 30, 2019
(Unaudited)
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 | | | Return of capital | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended 04/30/19 | | $ | 9.64 | | | $ | 0.06 | | | $ | 0.17 | | | $ | 0.23 | | | $ | (0.18 | ) | | $ | — | | | $ | — | | | $ | (0.18 | ) | | $ | 9.69 | | | | 2.40 | % | | $ | 9,787 | | | | 1.39 | %(d) | | | 3.61 | %(d) | | | 1.38 | %(d) | | | 35 | % |
Year ended 10/31/18 | | | 10.00 | | | | 0.13 | | | | (0.49 | ) | | | (0.36 | ) | | | — | | | | — | | | | — | | | | — | | | | 9.64 | | | | (3.60 | ) | | | 11,416 | | | | 1.40 | | | | 2.69 | | | | 1.26 | | | | 67 | |
Year ended 10/31/17 | | | 10.32 | | | | 0.12 | | | | 0.00 | | | | 0.12 | | | | (0.12 | ) | | | (0.01 | ) | | | (0.31 | ) | | | (0.44 | ) | | | 10.00 | | | | 1.32 | | | | 19,360 | | | | 1.29 | | | | 2.16 | | | | 1.24 | | | | 121 | |
Year ended 10/31/16 | | | 10.33 | | | | 0.05 | | | | 0.14 | | | | 0.19 | | | | (0.06 | ) | | | — | | | | (0.14 | ) | | | (0.20 | ) | | | 10.32 | | | | 1.90 | | | | 29,309 | | | | 1.31 | (e) | | | 2.35 | | | | 0.51 | | | | 23 | |
Year ended 10/31/15 | | | 10.44 | | | | 0.01 | | | | 0.04 | | | | 0.05 | | | | (0.06 | ) | | | — | | | | (0.10 | ) | | | (0.16 | ) | | | 10.33 | | | | 0.49 | | | | 23,688 | | | | 1.33 | (e) | | | 2.38 | | | | 0.05 | | | | 79 | |
Year ended 10/31/14(f) | | | 10.00 | | | | (0.02 | ) | | | 0.46 | | | | 0.44 | | | | — | | | | — | | | | — | | | | — | | | | 10.44 | | | | 4.40 | | | | 13,504 | | | | 1.29 | (e)(g) | | | 3.16 | (g) | | | (0.18 | )(g) | | | 20 | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended 04/30/19 | | | 9.38 | | | | 0.03 | | | | 0.16 | | | | 0.19 | | | | (0.08 | ) | | | — | | | | — | | | | (0.08 | ) | | | 9.49 | | | | 2.06 | | | | 5,911 | | | | 2.14 | (d | | | 4.36 | (d) | | | 0.63 | (d) | | | 35 | |
Year ended 10/31/18 | | | 9.80 | | | | 0.05 | | | | (0.47 | ) | | | (0.42 | ) | | | — | | | | — | | | | — | | | | — | | | | 9.38 | | | | (4.29 | ) | | | 7,351 | | | | 2.15 | | | | 3.44 | | | | 0.51 | | | | 67 | |
Year ended 10/31/17 | | | 10.13 | | | | 0.05 | | | | (0.01 | ) | | | 0.04 | | | | (0.06 | ) | | | (0.00 | ) | | | (0.31 | ) | | | (0.37 | ) | | | 9.80 | | | | 0.52 | | | | 12,263 | | | | 2.04 | | | | 2.91 | | | | 0.49 | | | | 121 | |
Year ended 10/31/16 | | | 10.19 | | | | (0.02 | ) | | | 0.14 | | | | 0.12 | | | | (0.04 | ) | | | — | | | | (0.14 | ) | | | (0.18 | ) | | | 10.13 | | | | 1.17 | | | | 16,428 | | | | 2.06 | (e) | | | 3.10 | | | | (0.24 | ) | | | 23 | |
Year ended 10/31/15 | | | 10.37 | | | | (0.07 | ) | | | 0.04 | | | | (0.03 | ) | | | (0.05 | ) | | | — | | | | (0.10 | ) | | | (0.15 | ) | | | 10.19 | | | | (0.27 | ) | | | 11,524 | | | | 2.08 | (e) | | | 3.13 | | | | (0.70 | ) | | | 79 | |
Year ended 10/31/14(f) | | | 10.00 | | | | (0.08 | ) | | | 0.45 | | | | 0.37 | | | | — | | | | — | | | | — | | | | — | | | | 10.37 | | | | 3.70 | | | | 444 | | | | 2.04 | (e)(g) | | | 3.91 | (g) | | | (0.93 | )(g) | | | 20 | |
Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended 04/30/19 | | | 9.56 | | | | 0.05 | | | | 0.16 | | | | 0.21 | | | | (0.14 | ) | | | — | | | | — | | | | (0.14 | ) | | | 9.63 | | | | 2.29 | | | | 22 | | | | 1.64 | (d) | | | 3.86 | (d) | | | 1.13 | (d) | | | 35 | |
Year ended 10/31/18 | | | 9.94 | | | | 0.10 | | | | (0.48 | ) | | | (0.38 | ) | | | — | | | | — | | | | — | | | | — | | | | 9.56 | | | | (3.82 | ) | | | 20 | | | | 1.65 | | | | 2.94 | | | | 1.01 | | | | 67 | |
Year ended 10/31/17 | | | 10.27 | | | | 0.10 | | | | (0.01 | ) | | | 0.09 | | | | (0.10 | ) | | | (0.01 | ) | | | (0.31 | ) | | | (0.42 | ) | | | 9.94 | | | | 0.99 | | | | 26 | | | | 1.54 | | | | 2.41 | | | | 0.99 | | | | 121 | |
Year ended 10/31/16 | | | 10.29 | | | | 0.03 | | | | 0.14 | | | | 0.17 | | | | (0.05 | ) | | | — | | | | (0.14 | ) | | | (0.19 | ) | | | 10.27 | | | | 1.65 | | | | 17 | | | | 1.56 | (e) | | | 2.60 | | | | 0.26 | | | | 23 | |
Year ended 10/31/15 | | | 10.42 | | | | (0.02 | ) | | | 0.04 | | | | 0.02 | | | | (0.05 | ) | | | — | | | | (0.10 | ) | | | (0.15 | ) | | | 10.29 | | | | 0.27 | | | | 10 | | | | 1.58 | (e) | | | 2.63 | | | | (0.20 | ) | | | 79 | |
Year ended 10/31/14(f) | | | 10.00 | | | | (0.04 | ) | | | 0.46 | | | | 0.42 | | | | — | | | | — | | | | — | | | | — | | | | 10.42 | | | | 4.20 | | | | 10 | | | | 1.54 | (e)(g) | | | 3.41 | (g) | | | (0.43 | )(g) | | | 20 | |
Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended 04/30/19 | | | 9.70 | | | | 0.08 | | | | 0.17 | | | | 0.25 | | | | (0.21 | ) | | | — | | | | — | | | | (0.21 | ) | | | 9.74 | | | | 2.63 | | | | 41,456 | | | | 1.14 | (d) | | | 3.36 | (d) | | | 1.63 | (d) | | | 35 | |
Year ended 10/31/18 | | | 10.04 | | | | 0.15 | | | | (0.49 | ) | | | (0.34 | ) | | | — | | | | — | | | | — | | | | — | | | | 9.70 | | | | (3.39 | ) | | | 70,488 | | | | 1.15 | | | | 2.44 | | | | 1.51 | | | | 67 | |
Year ended 10/31/17 | | | 10.37 | | | | 0.15 | | | | (0.01 | ) | | | 0.14 | | | | (0.15 | ) | | | (0.01 | ) | | | (0.31 | ) | | | (0.47 | ) | | | 10.04 | | | | 1.48 | | | | 108,068 | | | | 1.04 | | | | 1.91 | | | | 1.49 | | | | 121 | |
Year ended 10/31/16 | | | 10.37 | | | | 0.08 | | | | 0.15 | | | | 0.23 | | | | (0.09 | ) | | | — | | | | (0.14 | ) | | | (0.23 | ) | | | 10.37 | | | | 2.24 | | | | 175,284 | | | | 1.06 | (e) | | | 2.10 | | | | 0.76 | | | | 23 | |
Year ended 10/31/15 | | | 10.46 | | | | 0.03 | | | | 0.04 | | | | 0.07 | | | | (0.06 | ) | | | — | | | | (0.10 | ) | | | (0.16 | ) | | | 10.37 | | | | 0.72 | | | | 97,703 | | | | 1.08 | (e) | | | 2.13 | | | | 0.30 | | | | 79 | |
Year ended 10/31/14(f) | | | 10.00 | | | | 0.01 | | | | 0.45 | | | | 0.46 | | | | — | | | | — | | | | — | | | | — | | | | 10.46 | | | | 4.60 | | | | 16,352 | | | | 1.04 | (e)(g) | | | 2.91 | (g) | | | 0.07 | (g) | | | 20 | |
Class R5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended 04/30/19 | | | 9.71 | | | | 0.08 | | | | 0.16 | | | | 0.24 | | | | (0.21 | ) | | | — | | | | — | | | | (0.21 | ) | | | 9.74 | | | | 2.53 | | | | 10 | | | | 1.14 | (d) | | | 3.27 | (d) | | | 1.63 | (d) | | | 35 | |
Year ended 10/31/18 | | | 10.05 | | | | 0.15 | | | | (0.49 | ) | | | (0.34 | ) | | | — | | | | — | | | | — | | | | — | | | | 9.71 | | | | (3.38 | ) | | | 10 | | | | 1.15 | | | | 2.35 | | | | 1.51 | | | | 67 | |
Year ended 10/31/17 | | | 10.37 | | | | 0.15 | | | | 0.00 | | | | 0.15 | | | | (0.15 | ) | | | (0.01 | ) | | | (0.31 | ) | | | (0.47 | ) | | | 10.05 | | | | 1.58 | | | | 10 | | | | 1.04 | | | | 1.87 | | | | 1.49 | | | | 121 | |
Year ended 10/31/16 | | | 10.38 | | | | 0.08 | | | | 0.14 | | | | 0.22 | | | | (0.09 | ) | | | — | | | | (0.14 | ) | | | (0.23 | ) | | | 10.37 | | | | 2.15 | | | | 63 | | | | 1.06 | (e) | | | 2.09 | | | | 0.76 | | | | 23 | |
Year ended 10/31/15 | | | 10.46 | | | | 0.03 | | | | 0.05 | | | | 0.08 | | | | (0.06 | ) | | | — | | | | (0.10 | ) | | | (0.16 | ) | | | 10.38 | | | | 0.82 | | | | 62 | | | | 1.08 | (e) | | | 2.07 | | | | 0.30 | | | | 79 | |
Year ended 10/31/14(f) | | | 10.00 | | | | 0.01 | | | | 0.45 | | | | 0.46 | | | | — | | | | — | | | | — | | | | — | | | | 10.46 | | | | 4.60 | | | | 2,724 | | | | 1.04 | (e)(g) | | | 2.87 | (g) | | | 0.07 | (g) | | | 20 | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended 04/30/19 | | | 9.70 | | | | 0.08 | | | | 0.16 | | | | 0.24 | | | | (0.21 | ) | | | — | | | | — | | | | (0.21 | ) | | | 9.73 | | | | 2.53 | | | | 11,143 | | | | 1.14 | (d) | | | 3.27 | (d) | | | 1.63 | (d) | | | 35 | |
Year ended 10/31/18 | | | 10.04 | | | | 0.15 | | | | (0.49 | ) | | | (0.34 | ) | | | — | | | | — | | | | — | | | | — | | | | 9.70 | | | | (3.39 | ) | | | 10,839 | | | | 1.15 | | | | 2.35 | | | | 1.51 | | | | 67 | |
Year ended 10/31/17 | | | 10.36 | | | | 0.15 | | | | 0.00 | | | | 0.15 | | | | (0.15 | ) | | | (0.01 | ) | | | (0.31 | ) | | | (0.47 | ) | | | 10.04 | | | | 1.59 | | | | 8,626 | | | | 1.04 | | | | 1.81 | | | | 1.49 | | | | 121 | |
Year ended 10/31/16 | | | 10.37 | | | | 0.08 | | | | 0.14 | | | | 0.22 | | | | (0.09 | ) | | | — | | | | (0.14 | ) | | | (0.23 | ) | | | 10.36 | | | | 2.14 | | | | 10 | | | | 1.06 | (e) | | | 2.00 | | | | 0.76 | | | | 23 | |
Year ended 10/31/15 | | | 10.46 | | | | 0.03 | | | | 0.04 | | | | 0.07 | | | | (0.06 | ) | | | — | | | | (0.10 | ) | | | (0.16 | ) | | | 10.37 | | | | 0.73 | | | | 8,063 | | | | 1.08 | (e) | | | 2.07 | | | | 0.30 | | | | 79 | |
Year ended 10/31/14(f) | | | 10.00 | | | | 0.01 | | | | 0.45 | | | | 0.46 | | | | — | | | | — | | | | — | | | | — | | | | 10.46 | | | | 4.60 | | | | 9,298 | | | | 1.04 | (e)(g) | | | 2.87 | (g) | | | 0.07 | (g) | | | 20 | |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $10,632, $6,537, $21, $52,343, $10 and $10,945 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | In addition to the fees and expenses which the Fund bears directly; the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Because the underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. Estimated underlying fund expenses are not expenses that are incurred directly by your Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the funds your Fund invests in. The effect of the estimated underlying fund expenses that you bear indirectly is included in your Fund’s total return. Estimated acquired fund fees from underlying funds were 0.44%, 0.44% and 0.50% for the years ended October 31, 2016 and 2015 and the period ended October 31, 2014. |
| (f) | Commencement date of December 19, 2013. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
45 Invesco Global Targeted Returns Fund
Notes to Consolidated Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Global Targeted Returns 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 anopen-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. 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 Invesco Cayman Commodity Fund VII Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives and other securities that may provide leveraged andnon-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 total return over the long term in all market environments.
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 afront-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 ten 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 tenth 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 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments inopen-end andclosed-end registered investment companies that do not trade on an exchange are valued at theend-of-day net asset value per share. Investments inopen-end andclosed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may includeend-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.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
46 Invesco Global Targeted Returns Fund
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions 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.
| B. | Securities Transactions and Investment Income— Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on theex-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 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 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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions— Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on theex-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 Rule12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets.Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates— The 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. Theaccompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidatedbasis. All inter-company accounts and transactions have been eliminated in consolidation. |
47 Invesco Global Targeted Returns Fund
In addition, the Fund monitors for material events or transactions that may occur or become known after theperiod-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 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. | Structured Securities— The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument. |
Structured securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference instruments. In addition to the credit risk of structured securities and the normal risks of price changes in response to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the value of the underlying reference instruments. Changes in the daily value of structured securities are recorded as unrealized gains (losses) in the Consolidated Statement of Operations. When the structured securities mature or are sold, the Fund recognizes a realized gain (loss) 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the dailymark-to-market obligation for forward foreign currency contracts.
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 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain orloss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realizedgain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of |
48 Invesco Global Targeted Returns Fund
| | 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. | 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, 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 tradedover-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 apre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV 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 aretwo-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.
49 Invesco Global Targeted Returns Fund
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.
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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of the Fund under any swap transaction. 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. 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. 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 April 30, 2019 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.
50 Invesco Global Targeted Returns Fund
| Q. | Other Risks— 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 commodities, commodity-linked derivatives and other securities, such as exchange-traded and commodity-linked notes, that may provide leveraged andnon-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. |
| R. | 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. |
| S. | 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund 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 | | | 1.10% | |
Next $250 million | | | 1.08% | |
Next $500 million | | | 1.05% | |
Next $1.5 billion | | | 1.03% | |
Next $2.5 billion | | | 1.00% | |
Next $2.5 billion | | | 0.98% | |
Next $2.5 billion | | | 0.95% | |
Over $10 billion | | | 0.93% | |
For the six months ended April 30, 2019, the effective advisory fees 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 mastersub-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 separatesub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “AffiliatedSub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such AffiliatedSub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such AffiliatedSub-Adviser(s).
The Adviser has contractually agreed, through at least February 29, 2020, 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 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 ornon-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 29, 2020. 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 June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $848,327 and reimbursed class level expenses of $4,816, $2,961, $10, $23,709, $0 and $191 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asAdministrative services fees. Also, Invesco has entered into asub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
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 orsub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asTransfer agent fees.
51 Invesco Global Targeted Returns Fund
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 Rule12b-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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Consolidated Statement of Operations asDistribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund.Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $87 infront-end sales commissions from the sale of Class A shares and $0 and $32 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
| | Level 1 — | Prices are determined using quoted prices in an active market for identical assets. |
| | Level 2 — | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
| | Level 3 — | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | | $ | 12,151,423 | | | $ | 7,686,741 | | | $ | — | | | $ | 19,838,164 | |
Non-U.S. Dollar Denominated Bonds & Notes | | | — | | | | 11,564,446 | | | | — | | | | 11,564,446 | |
U.S. Dollar Denominated Bonds & Notes | | | — | | | | 7,527,737 | | | | — | | | | 7,527,737 | |
U.S. Treasury Securities | | | — | | | | 2,263,129 | | | | — | | | | 2,263,129 | |
Exchange-Traded Fund | | | 89,069 | | | | — | | | | — | | | | 89,069 | |
Money Market Funds | | | 18,432,678 | | | | — | | | | — | | | | 18,432,678 | |
Options Purchased | | | — | | | | 3,713,693 | | | | — | | | | 3,713,693 | |
Total Investments in Securities | | | 30,673,170 | | | | 32,755,746 | | | | — | | | | 63,428,916 | |
| | | | |
Other Investments — Assets* | | | | | | | | | | | | | | | | |
Futures Contracts | | | 184,561 | | | | — | | | | — | | | | 184,561 | |
Forward Foreign Currency Contracts | | | — | | | | 1,381,898 | | | | — | | | | 1,381,898 | |
Swap Agreements | | | — | | | | 2,196,069 | | | | — | | | | 2,196,069 | |
| | | | 184,561 | | | | 3,577,967 | | | | — | | | | 3,762,528 | |
| | | | |
Other Investments — Liabilities* | | | | | | | | | | | | | | | | |
Futures Contracts | | | (894,357 | ) | | | — | | | | — | | | | (894,357 | ) |
Forward Foreign Currency Contracts | | | — | | | | (255,799 | ) | | | — | | | | (255,799 | ) |
Options Written | | | — | | | | (3,456,952 | ) | | | — | | | | (3,456,952 | ) |
Swap Agreements | | | — | | | | (2,707,233 | ) | | | — | | | | (2,707,233 | ) |
| | | | (894,357 | ) | | | (6,419,984 | ) | | | — | | | | (7,314,341 | ) |
Total Other Investments | | | (709,796 | ) | | | (2,842,017 | ) | | | — | | | | (3,551,813 | ) |
Total Investments | | $ | 29,963,374 | | | $ | 29,913,729 | | | $ | — | | | $ | 59,877,103 | |
| * | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Options written are shown at value. |
52 Invesco Global Targeted Returns Fund
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.
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 April 30, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Value | |
| Derivative Assets | | Commodity
Risk | | | Credit Risk | | | Currency Risk | | | Equity Risk | | | Interest Rate
Risk | | | Total | |
Unrealized appreciation on futures contracts —Exchange-Traded(a) | | $ | — | | | $ | — | | | $ | — | | | $ | 163,362 | | | $ | 21,199 | | | $ | 184,561 | |
Unrealized appreciation on swap agreements — Centrally Cleared(a) | | | — | | | | — | | | | — | | | | — | | | | 2,058,416 | | | | 2,058,416 | |
Unrealized appreciation on forward foreign currency contracts outstanding | | | — | | | | — | | | | 1,381,898 | | | | — | | | | — | | | | 1,381,898 | |
Unrealized appreciation on swap agreements — OTC | | | 38,848 | | | | — | | | | 1,202 | | | | 97,603 | | | | — | | | | 137,653 | |
Options purchased, at value — OTC(b) | | | — | | | | — | | | | 298,497 | | | | 1,958,015 | | | | 1,457,181 | | | | 3,713,693 | |
Total Derivative Assets | | | 38,848 | | | | — | | | | 1,681,597 | | | | 2,218,980 | | | | 3,536,796 | | | | 7,476,221 | |
Derivatives not subject to master netting agreements | | | — | | | | — | | | | — | | | | (163,362 | ) | | | (2,079,615 | ) | | | (2,242,977 | ) |
Total Derivative Assets subject to master netting agreements | | $ | 38,848 | | | $ | — | | | $ | 1,681,597 | | | $ | 2,055,618 | | | $ | 1,457,181 | | | $ | 5,233,244 | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Value | |
| Derivative Liabilities | | Commodity
Risk | | | Credit Risk | | | Currency Risk | | | Equity Risk | | | Interest Rate
Risk | | | Total | |
Unrealized depreciation on futures contracts —Exchange-Traded(a) | | $ | — | | | $ | — | | | $ | — | | | $ | (790,605 | ) | | $ | (103,752 | ) | | $ | (894,357 | ) |
Unrealized depreciation on swap agreements — OTC | | | (9,771 | ) | | | (595 | ) | | | (67,754 | ) | | | (759,880 | ) | | | (147,225 | ) | | | (985,225 | ) |
Unrealized depreciation on swap agreements — Centrally Cleared(a) | | | — | | | | (28,006 | ) | | | — | | | | — | | | | (1,694,002 | ) | | | (1,722,008 | ) |
Unrealized depreciation on forward foreign currency contracts outstanding | | | — | | | | — | | | | (255,799 | ) | | | — | | | | — | | | | (255,799 | ) |
Options written, at value — OTC | | | — | | | | — | | | | (290,899 | ) | | | (2,561,193 | ) | | | (604,860 | ) | | | (3,456,952 | ) |
Total Derivative Liabilities | | | (9,771 | ) | | | (28,601 | ) | | | (614,452 | ) | | | (4,111,678 | ) | | | (2,549,839 | ) | | | (7,314,341 | ) |
Derivatives not subject to master netting agreements | | | — | | | | 28,006 | | | | — | | | | 790,605 | | | | 1,797,754 | | | | 2,616,365 | |
Total Derivative Liabilities subject to master netting agreements | | $ | (9,771 | ) | | $ | (595 | ) | | $ | (614,452 | ) | | $ | (3,321,073 | ) | | $ | (752,085 | ) | | $ | (4,697,976 | ) |
| (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. |
53 Invesco Global Targeted Returns 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 April 30, 2019.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Financial Derivative Assets | | | Financial Derivative Liabilities | | | | | | Collateral
(Received)/Pledged | | | Net
Amount(a) | |
| Counterparty | | Forward Foreign
Currency
Contracts | | | Options
Purchased | | | Swap
Agreements | | | Total Assets | | | Forward
Foreign
Currency
Contracts | | | Options
Written | | | Swap
Agreements | | | Total Liabilities | | | Net Value of
Derivatives | | | Non-Cash | | | Cash | |
| Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank of America, N.A. | | $ | — | | | $ | 1,019,740 | | | $ | — | | | $ | 1,019,740 | | | $ | — | | | $ | (592,150 | ) | | $ | (1,278 | ) | | $ | (593,428 | ) | | $ | 426,312 | | | $ | — | | | $ | (426,312 | ) | | $ | — | |
Bank of America Merrill Lynch | | | — | | | | — | | | | 58,203 | | | | 58,203 | | | | — | | | | — | | | | — | | | | — | | | | 58,203 | | | | — | | | | — | | | | 58,203 | |
Barclays Bank PLC | | | 297,268 | | | | — | | | | — | | | | 297,268 | | | | (110,280 | ) | | | 0 | | | | (7,504 | ) | | | (117,784 | ) | | | 179,484 | | | | — | | | | (179,484 | ) | | | — | |
BNP Paribas S.A. | | | 737 | | | | — | | | | 1,147 | | | | 1,884 | | | | — | | | | — | | | | (1,668 | ) | | | (1,668 | ) | | | 216 | | | | — | | | | — | | | | 216 | |
Citibank, N.A. | | | 30,768 | | | | 722,548 | | | | 81,991 | | | | 835,307 | | | | (3,827 | ) | | | (604,860 | ) | | | — | | | | (608,687 | ) | | | 226,620 | | | | — | | | | (150,000 | ) | | | 76,620 | |
Citigroup Global Markets Inc. | | | — | | | | 202,508 | | | | 655 | | | | 203,163 | | | | — | | | | (208,787 | ) | | | (11,716 | ) | | | (220,503 | ) | | | (17,340 | ) | | | — | | | | — | | | | (17,340 | ) |
Goldman Sachs International | | | 317,742 | | | | 161,266 | | | | 0 | | | | 479,008 | | | | (33,261 | ) | | | (98,682 | ) | | | (273,730 | ) | | | (405,673 | ) | | | 73,335 | | | | — | | | | (73,335 | ) | | | — | |
HSBC Bank, N.A. | | | — | | | | 3,379 | | | | — | | | | 3,379 | | | | — | | | | — | | | | — | | | | — | | | | 3,379 | | | | — | | | | — | | | | 3,379 | |
J.P. Morgan Chase Bank, N.A. | | | 330,593 | | | | 396,313 | | | | — | | | | 726,906 | | | | (56,380 | ) | | | (377,874 | ) | | | (595 | ) | | | (434,849 | ) | | | 292,057 | | | | — | | | | (170,000 | ) | | | 122,057 | |
J.P. Morgan
Securities LLC | | | — | | | | 84,579 | | | | 14,992 | | | | 99,571 | | | | — | | | | (82,112 | ) | | | (195,252 | ) | | | (277,364 | ) | | | (177,793 | ) | | | — | | | | — | | | | (177,793 | ) |
Merrill Lynch International | | | 487 | | | | — | | | | — | | | | 487 | | | | — | | | | — | | | | (3,785 | ) | | | (3,785 | ) | | | (3,298 | ) | | | — | | | | — | | | | (3,298 | ) |
Morgan Stanley & Co International PLC | | | — | | | | 3,078 | | | | — | | | | 3,078 | | | | — | | | | — | | | | — | | | | — | | | | 3,078 | | | | — | | | | — | | | | 3,078 | |
Morgan Stanley & Co. LLC | | | 39,689 | | | | — | | | | — | | | | 39,689 | | | | — | | | | — | | | | — | | | | — | | | | 39,689 | | | | — | | | | — | | | | 39,689 | |
Morgan Stanley Capital Services LLC | | | — | | | | 82,337 | | | | — | | | | 82,337 | | | | — | | | | — | | | | — | | | | — | | | | 82,337 | | | | — | | | | — | | | | 82,337 | |
Societe Generale | | | — | | | | 299,766 | | | | 29,101 | | | | 328,867 | | | | — | | | | (191,956 | ) | | | (210,377 | ) | | | (402,333 | ) | | | (73,466 | ) | | | — | | | | 73,466 | | | | — | |
Standard Charted Bank PLC | | | 17,414 | | | | — | | | | — | | | | 17,414 | | | | (18,915 | ) | | | — | | | | — | | | | (18,915 | ) | | | (1,501 | ) | | | — | | | | — | | | | (1,501 | ) |
State Street Bank & Trust Co. | | | 347,200 | | | | — | | | | — | | | | 347,200 | | | | (33,136 | ) | | | — | | | | — | | | | (33,136 | ) | | | 314,064 | | | | — | | | | (314,064 | ) | | | — | |
UBS AG | | | — | | | | 738,179 | | | | 52,910 | | | | 791,089 | | | | — | | | | (1,300,531 | ) | | | (724,660 | ) | | | (2,025,191 | ) | | | (1,234,102 | ) | | | — | | | | 800,000 | | | | (434,102 | ) |
Subtotal — Fund | | | 1,381,898 | | | | 3,713,693 | | | | 238,999 | | | | 5,334,590 | | | | (255,799 | ) | | | (3,456,952 | ) | | | (1,430,565 | ) | | | (5,143,316 | ) | | | 191,274 | | | | — | | | | (439,729 | ) | | | (248,455 | ) |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Subsidiary | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BNP Paribas S.A. | | | — | | | | — | | | | 4,582 | | | | 4,582 | | | | — | | | | — | | | | (3,395 | ) | | | (3,395 | ) | | | 1,187 | | | | — | | | | — | | | | 1,187 | |
Macquarie Bank Ltd. | | | — | | | | — | | | | 34,266 | | | | 34,266 | | | | — | | | | — | | | | (6,376 | ) | | | (6,376 | ) | | | 27,890 | | | | — | | | | — | | | | 27,890 | |
Subtotal — Subsidiary | | | — | | | | — | | | | 38,848 | | | | 38,848 | | | | — | | | | — | | | | (9,771 | ) | | | (9,771 | ) | | | 29,077 | | | | — | | | | — | | | | 29,077 | |
Total | | $ | 1,381,898 | | | $ | 3,713,693 | | | $ | 277,847 | | | $ | 5,373,438 | | | $ | (255,799 | ) | | $ | (3,456,952 | ) | | $ | (1,440,336 | ) | | $ | (5,153,087 | ) | | $ | 220,351 | | | $ | — | | | $ | (439,729 | ) | | $ | (219,378 | ) |
The Fund and the Subsidiary are recognized as separate legal entities and as such are subject to separate netting arrangements with the Counterparty.
54 Invesco Global Targeted Returns Fund
Effect of Derivative Investments for the six months ended April 30, 2019
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 | | $ | — | | | $ | — | | | $ | 1,355,339 | | | $ | — | | | $ | — | | | $ | 1,355,339 | |
Futures contracts | | | — | | | | — | | | | — | | | | (270,330 | ) | | | 309,826 | | | | 39,496 | |
Options purchased(a) | | | — | | | | — | | | | (664,659 | ) | | | (7,559,348 | ) | | | (150,223 | ) | | | (8,374,230 | ) |
Options written | | | — | | | | — | | | | 495,341 | | | | 6,626,839 | | | | (111,869 | ) | | | 7,010,311 | |
Swap agreements | | | (620,521 | ) | | | (9,091 | ) | | | — | | | | (431,709 | ) | | | 439,679 | | | | (621,642 | ) |
Change in Net Unrealized Appreciation (Depreciation): | | | | | | | | | | | | | | | | | | | | | |
Forward foreign currency contracts | | | — | | | | — | | | | 126,299 | | | | — | | | | — | | | | 126,299 | |
Futures contracts | | | — | | | | — | | | | — | | | | (2,554,554 | ) | | | (84,418 | ) | | | (2,638,972 | ) |
Options purchased(a) | | | — | | | | — | | | | (73,056 | ) | | | 2,348,616 | | | | 618,262 | | | | 2,893,822 | |
Options written | | | — | | | | — | | | | (166,503 | ) | | | (589,470 | ) | | | (43,052 | ) | | | (799,025 | ) |
Swap agreements | | | (169,044 | ) | | | (88,846 | ) | | | (66,552 | ) | | | 482,002 | | | | 474,424 | | | | 631,984 | |
Total | | $ | (789,565 | ) | | $ | (97,937 | ) | | $ | 1,006,209 | | | $ | (1,947,954 | ) | | $ | 1,452,629 | | | $ | (376,618 | ) |
| (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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Forward
Foreign Currency
Contracts | | | Futures
Contracts | | | Index
Options
Purchased | | | Swaptions
Purchased | | | Foreign
Currency
Options
Purchased | | | Index Options
Written | | | Swaptions
Written | | | Foreign
Currency
Options
Written | | | Swap
Agreements | |
Average notional value | | $ | 158,648,854 | | | $ | 42,907,526 | | | $ | 107,328,194 | | | $ | 71,288,948 | | | $ | 31,011,972 | | | $ | 124,371,052 | | | $ | 20,555,496 | | | $ | 2,682,781 | | | $ | 426,965,268 | |
Average Contracts | | | — | | | | — | | | | 3,391 | | | | — | | | | — | | | | 1,794 | | | | — | | | | — | | | | — | |
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. Obligations under the deferred compensation plan 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 Consolidated Statement of Assets and Liabilities under the payable captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
55 Invesco Global Targeted Returns Fund
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| | | | | | | | | | | | |
| Capital Loss Carryforward* | |
| Expiration | | Short-Term | | | Long-Term | | | Total | |
Not subject to expiration | | $ | — | | | $ | 2,316,331 | | | $ | 2,316,331 | |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $16,713,430 and $33,858,822, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| | | | |
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis | |
Aggregate unrealized appreciation of investments | | $ | 3,679,877 | |
Aggregate unrealized (depreciation) of investments | | | (6,815,040 | ) |
Net unrealized appreciation (depreciation) of investments | | $ | (3,135,163 | ) |
Cost of investments for tax purposes is $62,879,533.
NOTE 9—Share Information
| | | | | | | | | | | | | | | | |
| | | Summary of Share Activity | |
| | | Six months ended
April 30, 2019(a) | | | Year ended
October 31, 2018 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Sold: | | | | | | | | | | | | | | | | |
Class A | | | 139,593 | | | $ | 1,339,445 | | | | 242,971 | | | $ | 2,411,704 | |
Class C | | | 3,245 | | | | 30,001 | | | | 20,964 | | | | 203,906 | |
Class R | | | 95 | | | | 900 | | | | 168 | | | | 1,650 | |
Class Y | | | 355,436 | | | | 3,399,002 | | | | 2,738,953 | | | | 27,496,036 | |
Class R6 | | | 17,428 | | | | 168,179 | | | | 347,964 | | | | 3,462,293 | |
| | | | |
Issued as reinvestment of dividends: | | | | | | | | | | | | | | | | |
Class A | | | 15,830 | | | | 148,007 | | | | — | | | | — | |
Class C | | | 4,992 | | | | 45,826 | | | | — | | | | — | |
Class R | | | 18 | | | | 166 | | | | — | | | | — | |
Class Y | | | 114,033 | | | | 1,069,629 | | | | — | | | | — | |
Class R6 | | | 24,788 | | | | 232,515 | | | | — | | | | — | |
| | | | |
Automatic conversion of Class C shares to Class A shares: | | | | | | | | | | | | | | | | |
Class A | | | 13,100 | | | | 124,716 | | | | — | | | | — | |
Class C | | | (13,353 | ) | | | (124,716 | ) | | | — | | | | — | |
| | | | |
Reacquired: | | | | | | | | | | | | | | | | |
Class A | | | (343,078 | ) | | | (3,279,648 | ) | | | (994,972 | ) | | | (9,884,331 | ) |
Class C | | | (155,679 | ) | | | (1,452,514 | ) | | | (488,145 | ) | | | (4,733,005 | ) |
Class R | | | — | | | | — | | | | (661 | ) | | | (6,370 | ) |
Class Y | | | (3,475,849 | ) | | | (33,400,193 | ) | | | (6,237,453 | ) | | | (62,172,652 | ) |
Class R6 | | | (14,693 | ) | | | (141,614 | ) | | | (89,972 | ) | | | (892,568 | ) |
Net increase (decrease) in share activity | | | (3,314,094 | ) | | $ | (31,840,299 | ) | | | (4,460,183 | ) | | $ | (44,113,337 | ) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 65% 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, 16% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
56 Invesco Global Targeted Returns Fund
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | ACTUAL | | | HYPOTHETICAL (5% annual return before
expenses) | | | | |
| | Beginning
Account Value
(11/01/18) | | | Ending
Account Value
(04/30/19)1 | | | Expenses
Paid During
Period2 | | | Ending
Account Value
(04/30/19) | | | Expenses
Paid During
Period2 | | | Annualized
Expense
Ratio | |
| Class A | | $ | 1,000.00 | | | $ | 1,024.00 | | | $ | 6.98 | | | $ | 1,017.90 | | | $ | 6.95 | | | | 1.39 | % |
| Class C | | | 1,000.00 | | | | 1,019.50 | | | | 10.72 | | | | 1,014.18 | | | | 10.69 | | | | 2.14 | |
| Class R | | | 1,000.00 | | | | 1,022.90 | | | | 8.23 | | | | 1,016.66 | | | | 8.20 | | | | 1.64 | |
| Class Y | | | 1,000.00 | | | | 1,025.30 | | | | 5.72 | | | | 1,019.14 | | | | 5.71 | | | | 1.14 | |
| Class R5 | | | 1,000.00 | | | | 1,025.30 | | | | 5.72 | | | | 1,019.14 | | | | 5.71 | | | | 1.14 | |
| Class R6 | | | 1,000.00 | | | | 1,025.30 | | | | 5.72 | | | | 1,019.14 | | | | 5.71 | | | | 1.14 | |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
57 Invesco Global Targeted Returns Fund
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| • | Fund reports and prospectuses |
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| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | GTR-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Greater China Fund
Nasdaq:
A: AACFX ■ C: CACFX ■ Y: AMCYX ■ R5: IACFX ■ R6: CACSX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 14.65% |
| Class C Shares | 14.24 |
| Class Y Shares | 14.79 |
| Class R5 Shares | 14.93 |
| Class R6 Shares | 14.89 |
| MSCI Golden Dragon Index▼ (Broad Market/Style-Specific Index) | 19.71 |
Lipper China Region Funds Index■
(Peer Group Index) | 21.19 |
| Source(s):▼RIMES Technologies Corp.;■ Lipper Inc. |
TheMSCI Golden Dragon Index captures the equity market performance of large- and mid-cap China securities and non-domestic China securities listed in Hong Kong and Taiwan. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheLipper China Region Funds Index is an unmanaged index considered representative of China region funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Greater China Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (3/31/06) | 8.94% |
| 10 Years | 8.94 |
| 5 Years | 8.82 |
| 1 Year | –5.50 |
| Class C Shares | |
| Inception (3/31/06) | 8.78% |
| 10 Years | 8.76 |
| 5 Years | 9.24 |
| 1 Year | –1.57 |
| Class Y Shares | |
| Inception (10/3/08) | 9.72% |
| 10 Years | 9.84 |
| 5 Years | 10.34 |
| 1 Year | 0.25 |
| Class R5 Shares | |
| Inception (3/31/06) | 9.92% |
| 10 Years | 10.07 |
| 5 Years | 10.55 |
| 1 Year | 0.41 |
| Class R6 Shares | |
| 10 Years | 9.65% |
| 5 Years | 10.24 |
| 1 Year | 0.40 |
| Performance includes litigation proceeds. Had these proceeds not been received, total returns would have been lower. |
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (3/31/06) | 8.75% |
| 10 Years | 9.77 |
| 5 Years | 6.66 |
| 1 Year | –11.36 |
| Class C Shares | |
| Inception (3/31/06) | 8.60% |
| 10 Years | 9.58 |
| 5 Years | 7.07 |
| 1 Year | –7.72 |
| Class Y Shares | |
| Inception (10/3/08) | 9.49% |
| 10 Years | 10.68 |
| 5 Years | 8.14 |
| 1 Year | –5.98 |
| Class R5 Shares | |
| Inception (3/31/06) | 9.73% |
| 10 Years | 10.92 |
| 5 Years | 8.36 |
| 1 Year | –5.83 |
| Class R6 Shares | |
| 10 Years | 10.48% |
| 5 Years | 8.04 |
| 1 Year | –5.87 |
| Performance includes litigation proceeds. Had these proceeds not been received, total returns would have been lower. |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class Y, Class R5 and Class R6 shares was 1.79%, 2.54%, 1.54%, 1.40% and
1.40%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 3 | Invesco Greater China Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Greater China Fund |
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–99.44%(b) |
| Airport Services–3.02% |
| Shanghai International Airport Co. Ltd. | 256,150 | $2,685,529 |
| Apparel Retail–1.60% |
| Pou Sheng International (Holdings) Ltd. (Hong Kong) | 6,054,000 | 1,419,967 |
| Auto Parts & Equipment–4.24% |
| Hu Lane Associate, Inc. (Taiwan) | 257,000 | 718,579 |
| HUAYU Automotive Systems Co., Ltd. – Class A | 394,204 | 1,376,858 |
| Minth Group Ltd. | 532,000 | 1,678,437 |
| | | | 3,773,874 |
| Automobile Manufacturers–0.43% |
| Jiangling Motors Corp., Ltd. – Class B | 311,100 | 381,102 |
| Commodity Chemicals–3.88% |
| Formosa Chemicals & Fibre Corp. (Taiwan) | 457,000 | 1,641,597 |
| Formosa Plastics Corp. (Taiwan) | 499,000 | 1,808,615 |
| | | | 3,450,212 |
| Construction Materials–1.79% |
| Asia Cement China Holdings Corp. | 1,343,500 | 1,592,718 |
| Electrical Components & Equipment–1.31% |
| Voltronic Power Technology Corp. (Taiwan)(c) | 59,150 | 1,167,648 |
| Electronic Components–2.43% |
| Chin-Poon Industrial Co., Ltd. (Taiwan) | 647,000 | 804,013 |
| Largan Precision Co., Ltd. (Taiwan) | 9,000 | 1,354,325 |
| | | | 2,158,338 |
| Electronic Equipment & Instruments–2.03% |
| Flytech Technology Co., Ltd. (Taiwan)(c) | 195,000 | 494,110 |
| Universal Scientific Industrial (Shanghai) Co., Ltd. – Class A | 665,872 | 1,308,655 |
| | | | 1,802,765 |
| Electronic Manufacturing Services–0.15% |
| FIH Mobile Ltd.(c) | 877,000 | 130,799 |
| Food Retail–2.39% |
| President Chain Store Corp. (Taiwan) | 228,000 | 2,124,980 |
| Footwear–1.77% |
| Stella International Holdings Ltd. (Hong Kong) | 886,000 | 1,574,398 |
| Gas Utilities–2.94% |
| ENN Energy Holdings Ltd. | 102,000 | 963,466 |
| | Shares | Value |
| Gas Utilities–(continued) |
| Towngas China Co. Ltd.(c) | 2,082,000 | $1,656,088 |
| | | | 2,619,554 |
| Health Care Equipment–1.56% |
| MicroPort Scientific Corp. | 1,476,000 | 1,388,548 |
| Health Care Supplies–3.65% |
| Shandong Weigao Group Medical Polymer Co. Ltd. – Class H | 3,308,000 | 3,246,941 |
| Hotels, Resorts & Cruise Lines–0.95% |
| Shanghai Jinjiang International Hotels Development Co., Ltd. – Class B | 381,578 | 842,524 |
| Household Appliances–2.30% |
| Gree Electric Appliances, Inc. of Zhuhai – Class A | 247,999 | 2,046,043 |
| Hypermarkets & Super Centers–2.25% |
| Sun Art Retail Group Ltd. (Hong Kong) | 2,288,500 | 2,005,859 |
| Industrial Conglomerates–2.70% |
| CK Hutchison Holdings Ltd. (Hong Kong) | 229,000 | 2,401,768 |
| Industrial Machinery–1.30% |
| CIMC Enric Holdings Ltd. | 1,190,000 | 1,155,900 |
| Interactive Home Entertainment–1.24% |
| Changyou.com Ltd. – ADR | 56,500 | 1,098,925 |
| Interactive Media & Services–14.43% |
| Autohome, Inc. – ADR(c) | 21,600 | 2,494,584 |
| Tencent Holdings Ltd. | 89,800 | 4,448,939 |
| Weibo Corp. – ADR(c) | 44,214 | 3,028,659 |
| YY, Inc. – ADR(c) | 33,800 | 2,859,818 |
| | | | 12,832,000 |
| Internet & Direct Marketing Retail–15.73% |
| Alibaba Group Holding Ltd. – ADR(c) | 45,248 | 8,396,671 |
| Ctrip.com International, Ltd. – ADR(c) | 56,886 | 2,505,828 |
| PChome Online, Inc. (Taiwan)(c) | 268,305 | 1,141,779 |
| Vipshop Holdings Ltd. – ADR(c) | 225,599 | 1,942,408 |
| | | | 13,986,686 |
| Leisure Products–0.88% |
| Goodbaby International Holdings Ltd. | 2,750,000 | 781,728 |
| Marine Ports & Services–1.22% |
| Qingdao Port International Co., Ltd. – Class H, REGS(d) | 1,562,000 | 1,085,165 |
| Packaged Foods & Meats–2.65% |
| Qinqin Foodstuffs Group (Cayman) Co. Ltd.(c) | 55,600 | 18,144 |
| Toly Bread Co. Ltd. – Series A | 147,550 | 821,329 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Greater China Fund |
| | Shares | Value |
| Packaged Foods & Meats–(continued) |
| Uni-President China Holdings Ltd. | 1,654,000 | $1,513,833 |
| | | | 2,353,306 |
| Personal Products–2.87% |
| Hengan International Group Co. Ltd. | 289,500 | 2,551,872 |
| Pharmaceuticals–2.03% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. – Class H | 477,000 | 425,632 |
| Sino Biopharmaceutical Ltd. | 1,436,000 | 1,376,611 |
| | | | 1,802,243 |
| Renewable Electricity–2.28% |
| China Yangtze Power Co., Ltd. – Class A | 808,758 | 2,025,256 |
| Restaurants–2.87% |
| Ajisen (China) Holdings Ltd. (Hong Kong) | 3,195,000 | 1,356,230 |
| Cafe de Coral Holdings Ltd. (Hong Kong) | 332,000 | 817,642 |
| Xiabuxiabu Catering Management China Holdings Co. Ltd. – REGS(c)(d) | 217,000 | 381,730 |
| | | | 2,555,602 |
| Semiconductors–3.51% |
| Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan) | 370,000 | 3,125,418 |
| Specialty Stores–0.38% |
| Sa Sa International Holdings Ltd. (Hong Kong) | 990,000 | 335,687 |
| | Shares | Value |
| Steel–0.68% |
| Baoshan Iron & Steel Co., Ltd. – Class A | 571,509 | $608,259 |
| Technology Hardware, Storage & Peripherals–1.35% |
| Asustek Computer, Inc. (Taiwan) | 157,000 | 1,199,055 |
| Wireless Telecommunication Services–4.63% |
| China Mobile Ltd. | 432,000 | 4,116,357 |
| Total Common Stocks & Other Equity Interests (Cost $79,426,725) | 88,427,026 |
|
| Money Market Funds–1.78% |
| Invesco Government & Agency Portfolio,Institutional Class, 2.34%(e) | 554,201 | 554,201 |
| Invesco Liquid Assets Portfolio,Institutional Class, 2.48%(e) | 395,740 | 395,859 |
| Invesco Treasury Portfolio,Institutional Class, 2.32%(e) | 633,373 | 633,373 |
| Total Money Market Funds (Cost $1,583,428) | 1,583,433 |
| TOTAL INVESTMENTS IN SECURITIES–101.22% (Cost $81,010,153) | 90,010,459 |
| OTHER ASSETS LESS LIABILITIES–(1.22)% | (1,084,418) |
| NET ASSETS–100.00% | $88,926,041 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| REGS | – Regulation S |
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 April 30, 2019 was $1,466,895, which represented 1.65% of the Fund’s Net Assets. |
| (e) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Greater China Fund |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Consumer Discretionary | 31.15% |
| Communication Services | 20.30 |
| Consumer Staples | 10.16 |
| Industrials | 9.55 |
| Information Technology | 9.47 |
| Health Care | 7.24 |
| Materials | 6.35 |
| Utilities | 5.22 |
| Money Market Funds Plus Other Assets Less Liabilities | 0.56 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Greater China Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $79,426,725) | $88,427,026 |
| Investments in affiliated money market funds, at value (Cost $1,583,428) | 1,583,433 |
| Foreign currencies, at value (Cost $14,365) | 14,376 |
| Receivable for: | |
| Fund shares sold | 49,271 |
| Dividends | 5,888 |
| Investment for trustee deferred compensation and retirement plans | 56,277 |
| Other assets | 41,495 |
| Total assets | 90,177,766 |
| Liabilities: | |
| Payable for: | |
| Investments purchased | 884,906 |
| Fund shares reacquired | 97,821 |
| Amount due custodian | 68,210 |
| Accrued fees to affiliates | 67,230 |
| Accrued trustees’ and officers’ fees and benefits | 1,586 |
| Accrued other operating expenses | 69,957 |
| Trustee deferred compensation and retirement plans | 62,015 |
| Total liabilities | 1,251,725 |
| Net assets applicable to shares outstanding | $88,926,041 |
| Net assets consist of: | |
| Shares of beneficial interest | $83,793,379 |
| Distributable earnings | 5,132,662 |
| | $88,926,041 |
| Net Assets: |
| Class A | $69,572,478 |
| Class C | $7,283,866 |
| Class Y | $11,283,013 |
| Class R5 | $24,461 |
| Class R6 | $762,223 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 2,854,412 |
| Class C | 309,602 |
| Class Y | 462,990 |
| Class R5 | 1,004 |
| Class R6 | 31,311 |
| Class A: | |
| Net asset value per share | $24.37 |
Maximum offering price per share
(Net asset value of $24.37 ÷ 94.50%) | $25.79 |
| Class C: | |
| Net asset value and offering price per share | $23.53 |
| Class Y: | |
| Net asset value and offering price per share | $24.37 |
| Class R5: | |
| Net asset value and offering price per share | $24.36 |
| Class R6: | |
| Net asset value and offering price per share | $24.34 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Greater China Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $4,719) | $70,517 |
| Dividends from affiliated money market funds | 6,678 |
| Total investment income | 77,195 |
| Expenses: | |
| Advisory fees | 374,677 |
| Administrative services fees | 12,202 |
| Custodian fees | 10,950 |
| Distribution fees: | |
| Class A | 77,833 |
| Class C | 41,755 |
| Transfer agent fees — A, C and Y | 118,238 |
| Transfer agent fees — R5 | 11 |
| Transfer agent fees — R6 | 364 |
| Trustees’ and officers’ fees and benefits | 11,710 |
| Registration and filing fees | 35,538 |
| Reports to shareholders | 11,548 |
| Professional services fees | 27,869 |
| Other | 7,749 |
| Total expenses | 730,444 |
| Less: Fees waived and expense offset arrangement(s) | (1,851) |
| Net expenses | 728,593 |
| Net investment income (loss) | (651,398) |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (3,101,059) |
| Foreign currencies | (5,949) |
| | (3,107,008) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | 14,909,629 |
| Foreign currencies | (170) |
| | 14,909,459 |
| Net realized and unrealized gain | 11,802,451 |
| Net increase in net assets resulting from operations | $11,151,053 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Greater China Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income (loss) | $(651,398) | $1,047,014 |
| Net realized gain (loss) | (3,107,008) | 12,341,296 |
| Change in net unrealized appreciation (depreciation) | 14,909,459 | (25,170,440) |
| Net increase (decrease) in net assets resulting from operations | 11,151,053 | (11,782,130) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (9,832,850) | (385,286) |
| Class C | (1,650,954) | — |
| Class Y | (1,260,617) | (84,412) |
| Class R5 | (4,189) | (635) |
| Class R6 | (112,199) | (996) |
| Total distributions to shareholders from distributable earnings | (12,860,809) | (471,329) |
| Share transactions–net: | | |
| Class A | 11,022,639 | (688,606) |
| Class B | — | (834,194) |
| Class C | (2,210,646) | (1,704,943) |
| Class Y | 3,463,063 | (2,576,711) |
| Class R5 | 984 | (43,420) |
| Class R6 | 135,901 | 673,801 |
| Net increase (decrease) in net assets resulting from share transactions | 12,411,941 | (5,174,073) |
| Net increase (decrease) in net assets | 10,702,185 | (17,427,532) |
| Net assets: | | |
| Beginning of period | 78,223,856 | 95,651,388 |
| End of period | $88,926,041 | $78,223,856 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Greater China Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $25.52 | $(0.18) | $3.28 | $3.10 | $(0.21) | $(4.04) | $(4.25) | $24.37 | 14.65% | $69,572 | 1.77%(d) | 1.77%(d) | (1.58)%(d) | 23% |
| Year ended 10/31/18 | 29.40 | 0.34(e) | (4.06)(f) | (3.72) | (0.16) | — | (0.16) | 25.52 | (12.71)(f) | 59,615 | 1.79 | 1.80 | 1.15(e) | 45 |
| Year ended 10/31/17 | 22.23 | 0.05 | 7.27 | 7.32 | (0.15) | — | (0.15) | 29.40 | 33.19 | 69,843 | 1.93 | 1.93 | 0.22 | 56 |
| Year ended 10/31/16 | 21.10 | 0.15 | 1.20 | 1.35 | (0.22) | — | (0.22) | 22.23 | 6.51 | 52,479 | 1.93 | 1.93 | 0.74 | 52 |
| Year ended 10/31/15 | 19.93 | 0.18 | 1.08 | 1.26 | (0.09) | — | (0.09) | 21.10 | 6.36 | 53,087 | 1.88 | 1.88 | 0.85 | 130 |
| Year ended 10/31/14 | 20.31 | (0.03) | (0.13) | (0.16) | (0.22) | — | (0.22) | 19.93 | (0.87) | 62,957 | 1.85 | 1.85 | (0.15) | 124 |
| Class C |
| Six months ended 04/30/19 | 24.65 | (0.26) | 3.18 | 2.92 | — | (4.04) | (4.04) | 23.53 | 14.24 | 7,284 | 2.52(d) | 2.52(d) | (2.33)(d) | 23 |
| Year ended 10/31/18 | 28.45 | 0.11(e) | (3.91)(f) | (3.80) | — | — | — | 24.65 | (13.36)(f) | 10,155 | 2.54 | 2.55 | 0.40(e) | 45 |
| Year ended 10/31/17 | 21.52 | (0.13) | 7.06 | 6.93 | — | — | — | 28.45 | 32.20 | 13,422 | 2.68 | 2.68 | (0.53) | 56 |
| Year ended 10/31/16 | 20.39 | (0.00) | 1.16 | 1.16 | (0.03) | — | (0.03) | 21.52 | 5.73 | 11,879 | 2.68 | 2.68 | (0.01) | 52 |
| Year ended 10/31/15 | 19.32 | 0.02 | 1.05 | 1.07 | — | — | — | 20.39 | 5.54 | 13,922 | 2.63 | 2.63 | 0.10 | 130 |
| Year ended 10/31/14 | 19.68 | (0.18) | (0.14) | (0.32) | (0.04) | — | (0.04) | 19.32 | (1.62) | 15,978 | 2.60 | 2.60 | (0.90) | 124 |
| Class Y |
| Six months ended 04/30/19 | 25.57 | (0.15) | 3.28 | 3.13 | (0.29) | (4.04) | (4.33) | 24.37 | 14.79 | 11,283 | 1.52(d) | 1.52(d) | (1.33)(d) | 23 |
| Year ended 10/31/18 | 29.44 | 0.42(e) | (4.07)(f) | (3.65) | (0.22) | — | (0.22) | 25.57 | (12.48)(f) | 7,801 | 1.54 | 1.55 | 1.40(e) | 45 |
| Year ended 10/31/17 | 22.26 | 0.12 | 7.27 | 7.39 | (0.21) | — | (0.21) | 29.44 | 33.53 | 11,444 | 1.68 | 1.68 | 0.47 | 56 |
| Year ended 10/31/16 | 21.14 | 0.21 | 1.19 | 1.40 | (0.28) | — | (0.28) | 22.26 | 6.77 | 5,216 | 1.68 | 1.68 | 0.99 | 52 |
| Year ended 10/31/15 | 19.98 | 0.23 | 1.08 | 1.31 | (0.15) | — | (0.15) | 21.14 | 6.62 | 3,449 | 1.63 | 1.63 | 1.10 | 130 |
| Year ended 10/31/14 | 20.36 | 0.02 | (0.13) | (0.11) | (0.27) | — | (0.27) | 19.98 | (0.62) | 4,494 | 1.60 | 1.60 | 0.10 | 124 |
| Class R5 |
| Six months ended 04/30/19 | 25.58 | (0.13) | 3.29 | 3.16 | (0.34) | (4.04) | (4.38) | 24.36 | 14.93 | 24 | 1.33(d) | 1.33(d) | (1.14)(d) | 23 |
| Year ended 10/31/18 | 29.46 | 0.46(e) | (4.08)(f) | (3.62) | (0.26) | — | (0.26) | 25.58 | (12.38)(f) | 25 | 1.40 | 1.40 | 1.54(e) | 45 |
| Year ended 10/31/17 | 22.28 | 0.16 | 7.28 | 7.44 | (0.26) | — | (0.26) | 29.46 | 33.80 | 72 | 1.50 | 1.50 | 0.65 | 56 |
| Year ended 10/31/16 | 21.17 | 0.25 | 1.19 | 1.44 | (0.33) | — | (0.33) | 22.28 | 7.00 | 54 | 1.45 | 1.45 | 1.22 | 52 |
| Year ended 10/31/15 | 20.01 | 0.28 | 1.08 | 1.36 | (0.20) | — | (0.20) | 21.17 | 6.88 | 75 | 1.41 | 1.41 | 1.32 | 130 |
| Year ended 10/31/14 | 20.38 | 0.06 | (0.14) | (0.08) | (0.29) | — | (0.29) | 20.01 | (0.46) | 104 | 1.39 | 1.39 | 0.31 | 124 |
| Class R6 |
| Six months ended 04/30/19 | 25.57 | (0.13) | 3.28 | 3.15 | (0.34) | (4.04) | (4.38) | 24.34 | 14.89 | 762 | 1.33(d) | 1.33(d) | (1.14)(d) | 23 |
| Year ended 10/31/18 | 29.45 | 0.46(e) | (4.07)(f) | (3.61) | (0.27) | — | (0.27) | 25.57 | (12.36)(f) | 629 | 1.40 | 1.40 | 1.54(e) | 45 |
| Year ended 10/31/17(g) | 23.28 | 0.25 | 5.92 | 6.17 | — | — | — | 29.45 | 26.50 | 107 | 1.47(h) | 1.47(h) | 0.68(h) | 56 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $62,782, $8,420, $8,848, $23 and $735 for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the year ended October 31, 2018. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.18 and 0.60%, $(0.05) and (0.15)%, $0.26 and 0.85%, $0.30 and 0.99% and $0.30 and 0.99% for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. |
| (f) | Includes litigation proceeds received during the year. Had these litigation proceeds not been received, Net gains (losses) on securities (both realized and unrealized) per share would have been $(4.16), $(4.01), $(4.17), $(4.18) and $(4.17) for Class A, Class C, Class Y, Class R5, and Class R6 shares, respectively. Total returns would have been lower. |
| (g) | Commencement date of April 4, 2017. |
| (h) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Greater China Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
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 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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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
| 12 | Invesco Greater China Fund |
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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, |
| 13 | Invesco Greater China Fund |
| | 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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. | Other Risks - Investing in a single-country mutual fund involves greater risk than investing in a more diversified fund due to lack of exposure to other countries. The political and economic conditions and changes in regulatory, tax or economic policy in a single country could significantly affect the market in that country and in surrounding or related countries. |
Investing in developing countries can add additional risk, such as high rates of inflation or sharply devalued currencies against the U.S. dollar.
Transaction costs are often higher and there may be delays in settlement procedures.
Certain securities issued by companies in China may be less liquid, harder to sell or more volatile than U.S. securities.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.935%.
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 contractually agreed, through at least June 30, 2020, 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 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 “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 June 30, 2020. 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
The Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $290.
| 14 | Invesco Greater China Fund |
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $7,175 in front-end sales commissions from the sale of Class A shares and $0 and $133 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $77,074,290 | $11,352,736 | $— | $88,427,026 |
| Money Market Funds | 1,583,433 | — | — | 1,583,433 |
| Total Investments | $78,657,723 | $11,352,736 | $— | $90,010,459 |
NOTE 4—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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.
| 15 | Invesco Greater China 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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,561.
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $18,304,924 and $19,031,418, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $17,743,495 |
| Aggregate unrealized (depreciation) of investments | (8,743,240) |
| Net unrealized appreciation of investments | $9,000,255 |
Cost of investments for tax purposes is $81,010,204.
| 16 | Invesco Greater China Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 174,210 | $4,148,700 | | 537,510 | $16,196,961 |
| Class C | 26,724 | 599,290 | | 52,637 | 1,540,837 |
| Class Y | 186,134 | 4,256,020 | | 157,028 | 4,532,706 |
| Class R6 | 10,335 | 228,858 | | 35,950 | 1,119,985 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 440,672 | 9,337,827 | | 12,961 | 372,496 |
| Class C | 75,847 | 1,555,617 | | — | — |
| Class Y | 55,199 | 1,168,565 | | 2,244 | 64,471 |
| Class R5 | 46 | 984 | | 15 | 444 |
| Class R6 | 5,123 | 108,248 | | 31 | 881 |
| Conversion of Class B shares to Class A shares:(b) | | | | | |
| Class A | — | — | | 22,686 | 734,786 |
| Class B | — | — | | (23,444) | (734,786) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 157,819 | 3,465,758 | | - | - |
| Class C | (163,188) | (3,465,758) | | - | - |
| Reacquired: | | | | | |
| Class A | (254,078) | (5,929,646) | | (613,067) | (17,992,849) |
| Class B(c) | — | — | | (3,360) | (99,408) |
| Class C | (41,758) | (899,795) | | (112,428) | (3,245,780) |
| Class Y | (83,441) | (1,961,522) | | (242,905) | (7,173,888) |
| Class R5 | — | — | | (1,492) | (43,864) |
| Class R6 | (8,727) | (201,205) | | (15,034) | (447,065) |
| Net increase (decrease) in share activity | 580,917 | $12,411,941 | | (190,668) | $(5,174,073) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 26% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| (b) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| (c) | Class B shares activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| 17 | Invesco Greater China Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,146.50 | $9.42 | $1,016.02 | $8.85 | 1.77% |
| Class C | 1,000.00 | 1,142.40 | 13.39 | 1,012.30 | 12.57 | 2.52 |
| Class Y | 1,000.00 | 1,147.90 | 8.09 | 1,017.26 | 7.60 | 1.52 |
| Class R5 | 1,000.00 | 1,149.30 | 7.09 | 1,018.20 | 6.66 | 1.33 |
| Class R6 | 1,000.00 | 1,148.90 | 7.09 | 1,018.20 | 6.66 | 1.33 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 18 | Invesco Greater China Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | CHI-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Health Care Fund
Nasdaq:
A: GGHCX ■ C: GTHCX ■ Y: GGHYX ■ Investor: GTHIX ■ R6: GGHSX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 2.21% |
| Class C Shares | 1.83 |
| Class Y Shares | 2.33 |
| Investor Class Shares | 2.21 |
| Class R6 Shares | 2.36 |
| MSCI World Index▼ (Broad Market Index) | 8.83 |
| MSCI World Health Care Index▼ (Style-Specific Index) | 2.13 |
Lipper Global Health/Biotechnology Funds Index■
(Peer Group Index) | 3.20 |
| Source(s):▼RIMES Technologies Corp.;■ Lipper Inc. |
The MSCI World Index is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheMSCI World Health Care Index is an unmanaged index considered representative of health care stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheLipper Global Health/Biotechnology Funds Indexis an unmanaged index considered representative of global health/biotechnology funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Health Care Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (8/7/89) | 10.25% |
| 10 Years | 12.19 |
| 5 Years | 4.88 |
| 1 Year | 4.78 |
| Class C Shares | |
| Inception (3/1/99) | 8.15% |
| 10 Years | 11.98 |
| 5 Years | 5.28 |
| 1 Year | 9.09 |
| Class Y Shares | |
| Inception (10/3/08) | 10.44% |
| 10 Years | 13.10 |
| 5 Years | 6.33 |
| 1 Year | 11.16 |
| Investor Class Shares | |
| Inception (7/15/05) | 8.11% |
| 10 Years | 12.82 |
| 5 Years | 6.07 |
| 1 Year | 10.87 |
| Class R6 Shares | |
| 10 Years | 12.90% |
| 5 Years | 6.21 |
| 1 Year | 11.23 |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class Y, Investor Class and Class R6 shares was 1.10%, 1.85%, 0.85%, 1.10% and 0.80%, respectively. The expense ratios presented above may vary from the expense ratios presented
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (8/7/89) | 10.40% |
| 10 Years | 12.91 |
| 5 Years | 5.20 |
| 1 Year | 8.93 |
| Class C Shares | |
| Inception (3/1/99) | 8.35% |
| 10 Years | 12.70 |
| 5 Years | 5.60 |
| 1 Year | 13.45 |
| Class Y Shares | |
| Inception (10/3/08) | 10.84% |
| 10 Years | 13.83 |
| 5 Years | 6.66 |
| 1 Year | 15.57 |
| Investor Class Shares | |
| Inception (7/15/05) | 8.40% |
| 10 Years | 13.55 |
| 5 Years | 6.40 |
| 1 Year | 15.31 |
| Class R6 Shares | |
| 10 Years | 13.62% |
| 5 Years | 6.53 |
| 1 Year | 15.65 |
in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares, Investor Class shares and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 3 | Invesco Health Care Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Health Care Fund |
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–98.09% |
| Biotechnology–19.25% |
| ACADIA Pharmaceuticals, Inc.(b) | 227,070 | $5,461,034 |
| Alexion Pharmaceuticals, Inc.(b) | 180,638 | 24,590,251 |
| Amarin Corp. PLC ADR (Ireland)(b) | 403,082 | 7,537,633 |
| Array BioPharma, Inc.(b) | 649,673 | 14,689,107 |
| Ascendis Pharma A/S ADR (Denmark)(b) | 64,385 | 7,171,201 |
| Avrobio, Inc.(b) | 103,816 | 1,952,779 |
| BioCryst Pharmaceuticals, Inc.(b) | 639,339 | 4,750,289 |
| Biogen, Inc.(b) | 102,820 | 23,570,457 |
| Biohaven Pharmaceutical Holding Co., Ltd.(b) | 86,184 | 5,158,112 |
| BioMarin Pharmaceutical, Inc.(b) | 332,992 | 28,480,806 |
| Bluebird Bio, Inc.(b) | 58,211 | 8,256,066 |
| DBV Technologies S.A. ADR (France)(b) | 578,614 | 5,641,487 |
| Exact Sciences Corp.(b) | 213,885 | 21,108,311 |
| Global Blood Therapeutics, Inc.(b) | 145,162 | 8,041,975 |
| Heron Therapeutics, Inc.(b) | 209,431 | 4,540,464 |
| Immunomedics, Inc.(b) | 392,159 | 6,282,387 |
| Incyte Corp.(b) | 150,718 | 11,575,142 |
| Kadmon Holdings, Inc.(b) | 1,290,512 | 3,032,703 |
| KalVista Pharmaceuticals, Inc.(b) | 148,729 | 3,420,767 |
| Neurocrine Biosciences, Inc.(b) | 101,800 | 7,354,032 |
| REGENXBIO, Inc.(b) | 100,622 | 5,071,349 |
| Rocket Pharmaceuticals, Inc.(b) | 427,394 | 7,932,433 |
| Rubius Therapeutics, Inc.(b) | 275,076 | 4,811,079 |
| Sarepta Therapeutics, Inc.(b) | 76,875 | 8,989,762 |
| Vertex Pharmaceuticals, Inc.(b) | 145,436 | 24,575,775 |
| | | | 253,995,401 |
| Drug Retail–0.44% |
| Raia Drogasil S.A. (Brazil) | 331,578 | 5,846,651 |
| Health Care Equipment–18.22% |
| Abbott Laboratories | 446,542 | 35,526,882 |
| Baxter International, Inc. | 216,603 | 16,526,809 |
| Becton, Dickinson and Co. | 55,034 | 13,248,885 |
| Boston Scientific Corp.(b) | 831,578 | 30,868,175 |
| Edwards Lifesciences Corp.(b) | 85,964 | 15,135,681 |
| Koninklijke Philips N.V. (Netherlands) | 549,002 | 23,460,424 |
| Medtronic PLC | 585,317 | 51,982,003 |
| Wright Medical Group N.V.(b) | 787,696 | 23,292,171 |
| Zimmer Biomet Holdings, Inc. | 246,206 | 30,322,731 |
| | | | 240,363,761 |
| Health Care Facilities–1.59% |
| HCA Healthcare, Inc. | 164,633 | 20,946,257 |
| Health Care Services–2.48% |
| Cigna Corp. | 113,530 | 18,033,105 |
| | Shares | Value |
| Health Care Services–(continued) |
| CVS Health Corp. | 270,389 | $14,703,754 |
| | | | 32,736,859 |
| Health Care Supplies–2.26% |
| Alcon, Inc. (Switzerland)(b) | 137,760 | 8,017,632 |
| Align Technology, Inc.(b) | 45,256 | 14,693,718 |
| Silk Road Medical, Inc.(b) | 171,600 | 7,145,424 |
| | | | 29,856,774 |
| Health Care Technology–1.17% |
| HMS Holdings Corp.(b) | 215,816 | 6,567,281 |
| Inspire Medical Systems, Inc.(b) | 172,063 | 8,893,936 |
| | | | 15,461,217 |
| Life Sciences Tools & Services–7.97% |
| Agilent Technologies, Inc. | 110,427 | 8,668,519 |
| Bio-Rad Laboratories, Inc., Class A(b) | 41,326 | 12,436,233 |
| Eurofins Scientific S.E. (Luxembourg) | 25,957 | 11,924,789 |
| Illumina, Inc.(b) | 50,010 | 15,603,120 |
| Thermo Fisher Scientific, Inc. | 203,944 | 56,584,263 |
| | | | 105,216,924 |
| Managed Health Care–11.82% |
| Anthem, Inc. | 110,623 | 29,097,168 |
| Centene Corp.(b) | 406,696 | 20,969,246 |
| Hapvida Participacoes e Investimentos S.A. (Brazil)(c) | 1,026,700 | 7,923,272 |
| HealthEquity, Inc.(b) | 77,279 | 5,235,652 |
| Humana, Inc. | 100,281 | 25,612,770 |
| Notre Dame Intermedica Participacoes S.A. (Brazil)(b) | 1,026,461 | 9,193,673 |
| UnitedHealth Group, Inc. | 248,448 | 57,905,775 |
| | | | 155,937,556 |
| Pharmaceuticals–32.89% |
| Allergan PLC | 73,566 | 10,814,202 |
| AstraZeneca PLC ADR (United Kingdom) | 1,196,873 | 45,074,237 |
| Axsome Therapeutics, Inc.(b) | 372,256 | 6,600,099 |
| Bristol-Myers Squibb Co. | 535,806 | 24,877,473 |
| Elanco Animal Health, Inc.(b) | 392,352 | 12,359,088 |
| Eli Lilly and Co. | 269,707 | 31,566,507 |
| Jazz Pharmaceuticals PLC(b) | 65,531 | 8,503,958 |
| Johnson & Johnson | 420,518 | 59,377,142 |
| Merck & Co., Inc. | 561,618 | 44,204,953 |
| Nippon Shinyaku Co., Ltd. (Japan) | 199,000 | 13,735,932 |
| Novartis AG ADR (Switzerland) | 688,804 | 56,640,353 |
| Novo Nordisk A/S Class B (Denmark) | 483,201 | 23,629,032 |
| Odonate Therapeutics, Inc.(b) | 280,651 | 5,517,599 |
| Pfizer, Inc. | 616,358 | 25,030,298 |
| Roche Holding AG (Switzerland) | 86,253 | 22,736,695 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Health Care Fund |
| | Shares | Value |
| Pharmaceuticals–(continued) |
| Sanofi ADR (France) | 787,572 | $34,440,523 |
| Zogenix, Inc.(b) | 229,114 | 8,933,155 |
| | | | 434,041,246 |
| Total Common Stocks & Other Equity Interests (Cost $891,021,599) | 1,294,402,646 |
| Preferred Stocks–0.00% |
| Health Care Equipment–0.00% |
Intact Medical Corp., 3.33%, Series C, Pfd., (Acquired 03/26/2001)
(Cost $2,000,001)(c)(d)(e) | 2,439,026 | 3 |
|
| Money Market Funds–1.90% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(f) | 8,736,539 | 8,736,539 |
| | Shares | Value |
|
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(f) | 6,398,390 | $6,400,310 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(f) | 9,984,616 | 9,984,615 |
| Total Money Market Funds (Cost $25,120,089) | 25,121,464 |
| TOTAL INVESTMENTS IN SECURITIES–99.99% (Cost $918,141,689) | 1,319,524,113 |
| OTHER ASSETS LESS LIABILITIES–0.01% | 144,490 |
| NET ASSETS–100.00% | $1,319,668,603 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| Pfd. | – Preferred |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Non-income producing security. |
| (c) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2019 was $7,923,275, which represented less than 1% of the Fund’s Net Assets. |
| (d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
| (e) | Security is considered venture capital. See Note 1K. |
| (f) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Health Care | 97.65% |
| Consumer Staples | 0.44 |
| Money Market Funds Plus Other Assets Less Liabilities | 1.91% |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Health Care Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $893,021,600) | $1,294,402,649 |
| Investments in affiliated money market funds, at value (Cost $25,120,089) | 25,121,464 |
| Foreign currencies, at value (Cost $73,254) | 73,617 |
| Receivable for: | |
| Fund shares sold | 92,910 |
| Dividends | 2,205,874 |
| Investment for trustee deferred compensation and retirement plans | 267,798 |
| Other assets | 147,276 |
| Total assets | 1,322,311,588 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 810,019 |
| Amount due custodian | 680,877 |
| Accrued fees to affiliates | 677,906 |
| Accrued trustees’ and officers’ fees and benefits | 2,916 |
| Accrued other operating expenses | 128,691 |
| Trustee deferred compensation and retirement plans | 342,576 |
| Total liabilities | 2,642,985 |
| Net assets applicable to shares outstanding | $1,319,668,603 |
| Net assets consist of: | |
| Shares of beneficial interest | $900,843,989 |
| Distributable earnings | 418,824,614 |
| | $1,319,668,603 |
| Net Assets: |
| Class A | $682,808,579 |
| Class C | $25,446,478 |
| Class Y | $37,186,549 |
| Investor Class | $574,185,459 |
| Class R6 | $41,538 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 19,118,845 |
| Class C | 1,075,129 |
| Class Y | 1,017,424 |
| Investor Class | 16,074,638 |
| Class R6 | 1,135 |
| Class A: | |
| Net asset value per share | $35.71 |
Maximum offering price per share
(Net asset value of $35.71 ÷ 94.50%) | $37.79 |
| Class C: | |
| Net asset value and offering price per share | $23.67 |
| Class Y: | |
| Net asset value and offering price per share | $36.55 |
| Investor Class: | |
| Net asset value and offering price per share | $35.72 |
| Class R6: | |
| Net asset value and offering price per share | $36.60 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Health Care Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $479,700) | $9,006,110 |
| Dividends from affiliated money market funds | 412,493 |
| Total investment income | 9,418,603 |
| Expenses: | |
| Advisory fees | 4,168,824 |
| Administrative services fees | 117,144 |
| Custodian fees | 16,781 |
| Distribution fees: | |
| Class A | 851,422 |
| Class C | 176,609 |
| Investor Class | 718,105 |
| Transfer agent fees — A, C, Y and Investor | 1,087,340 |
| Transfer agent fees — R6 | 21 |
| Trustees’ and officers’ fees and benefits | 22,504 |
| Registration and filing fees | 45,930 |
| Reports to shareholders | 50,943 |
| Professional services fees | 27,092 |
| Other | 13,472 |
| Total expenses | 7,296,187 |
| Less: Fees waived and expense offset arrangement(s) | (36,874) |
| Net expenses | 7,259,313 |
| Net investment income | 2,159,290 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain from: | |
| Investment securities | 15,952,043 |
| Foreign currencies | 12,660 |
| | 15,964,703 |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | 10,336,786 |
| Foreign currencies | (4,884) |
| | 10,331,902 |
| Net realized and unrealized gain | 26,296,605 |
| Net increase in net assets resulting from operations | $28,455,895 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Health Care Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income (loss) | $2,159,290 | $(1,131,580) |
| Net realized gain | 15,964,703 | 107,880,549 |
| Change in net unrealized appreciation (depreciation) | 10,331,902 | (13,816,537) |
| Net increase in net assets resulting from operations | 28,455,895 | 92,932,432 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (52,354,830) | (45,906,721) |
| Class B | — | (174,565) |
| Class C | (5,049,774) | (4,951,203) |
| Class Y | (2,626,962) | (2,282,309) |
| Investor Class | (44,427,867) | (38,238,241) |
| Class R6 | (3,125) | (872) |
| Total distributions to shareholders from distributable earnings | (104,462,558) | (91,553,911) |
| Share transactions–net: | | |
| Class A | 32,907,621 | (36,463,447) |
| Class B | — | (2,032,988) |
| Class C | (15,800,255) | (8,958,431) |
| Class Y | 2,177,095 | 1,002,253 |
| Investor Class | 22,939,393 | (14,702,435) |
| Class R6 | 2,367 | 25,083 |
| Net increase (decrease) in net assets resulting from share transactions | 42,226,221 | (61,129,965) |
| Net increase (decrease) in net assets | (33,780,442) | (59,751,444) |
| Net assets: | | |
| Beginning of period | 1,353,449,045 | 1,413,200,489 |
| End of period | $1,319,668,603 | $1,353,449,045 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Health Care Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $37.89 | $0.06 | $0.66 | $0.72 | $— | $(2.90) | $(2.90) | $35.71 | 2.21% | $682,809 | 1.08%(d) | 1.08%(d) | 0.34%(d) | 9% |
| Year ended 10/31/18 | 37.84 | (0.02) | 2.52 | 2.50 | — | (2.45) | (2.45) | 37.89 | 7.03 | 687,513 | 1.09 | 1.09 | (0.06) | 36 |
| Year ended 10/31/17 | 32.93 | (0.05) | 5.77 | 5.72 | (0.07) | (0.74) | (0.81) | 37.84 | 17.73 | 722,643 | 1.12 | 1.12 | (0.12) | 36 |
| Year ended 10/31/16 | 43.70 | 0.08 | (5.09) | (5.01) | — | (5.76) | (5.76) | 32.93 | (12.87) | 725,053 | 1.09 | 1.09 | 0.23 | 21 |
| Year ended 10/31/15 | 47.08 | 0.02 | 1.53 | 1.55 | — | (4.93) | (4.93) | 43.70 | 3.56 | 981,963 | 1.04 | 1.05 | 0.04 | 47 |
| Year ended 10/31/14 | 40.38 | 0.01 | 10.15 | 10.16 | (0.01) | (3.45) | (3.46) | 47.08 | 27.20 | 906,858 | 1.07 | 1.08 | 0.04 | 24 |
| Class C |
| Six months ended 04/30/19 | 26.20 | (0.05) | 0.42 | 0.37 | — | (2.90) | (2.90) | 23.67 | 1.83 | 25,446 | 1.83(d) | 1.83(d) | (0.41)(d) | 9 |
| Year ended 10/31/18 | 27.10 | (0.21) | 1.76 | 1.55 | — | (2.45) | (2.45) | 26.20 | 6.24 | 45,895 | 1.84 | 1.84 | (0.81) | 36 |
| Year ended 10/31/17 | 23.91 | (0.22) | 4.15 | 3.93 | — | (0.74) | (0.74) | 27.10 | 16.84 | 56,741 | 1.87 | 1.87 | (0.87) | 36 |
| Year ended 10/31/16 | 33.56 | (0.14) | (3.75) | (3.89) | — | (5.76) | (5.76) | 23.91 | (13.53) | 66,699 | 1.84 | 1.84 | (0.52) | 21 |
| Year ended 10/31/15 | 37.54 | (0.25) | 1.20 | 0.95 | — | (4.93) | (4.93) | 33.56 | 2.78 | 107,976 | 1.79 | 1.80 | (0.71) | 47 |
| Year ended 10/31/14 | 33.09 | (0.24) | 8.14 | 7.90 | — | (3.45) | (3.45) | 37.54 | 26.26 | 81,439 | 1.82 | 1.83 | (0.71) | 24 |
| Class Y |
| Six months ended 04/30/19 | 38.67 | 0.11 | 0.67 | 0.78 | — | (2.90) | (2.90) | 36.55 | 2.33 | 37,187 | 0.83(d) | 0.83(d) | 0.59(d) | 9 |
| Year ended 10/31/18 | 38.47 | 0.07 | 2.58 | 2.65 | — | (2.45) | (2.45) | 38.67 | 7.32 | 36,930 | 0.84 | 0.84 | 0.19 | 36 |
| Year ended 10/31/17 | 33.48 | 0.05 | 5.85 | 5.90 | (0.17) | (0.74) | (0.91) | 38.47 | 18.01 | 35,924 | 0.87 | 0.87 | 0.13 | 36 |
| Year ended 10/31/16 | 44.24 | 0.17 | (5.17) | (5.00) | — | (5.76) | (5.76) | 33.48 | (12.67) | 22,548 | 0.84 | 0.84 | 0.48 | 21 |
| Year ended 10/31/15 | 47.51 | 0.14 | 1.53 | 1.67 | (0.01) | (4.93) | (4.94) | 44.24 | 3.82 | 39,443 | 0.79 | 0.80 | 0.29 | 47 |
| Year ended 10/31/14 | 40.71 | 0.13 | 10.22 | 10.35 | (0.10) | (3.45) | (3.55) | 47.51 | 27.52 | 31,016 | 0.82 | 0.83 | 0.29 | 24 |
| Investor Class |
| Six months ended 04/30/19 | 37.90 | 0.06 | 0.66 | 0.72 | — | (2.90) | (2.90) | 35.72 | 2.21 | 574,185 | 1.08(d) | 1.08(d) | 0.34(d) | 9 |
| Year ended 10/31/18 | 37.85 | (0.02) | 2.52 | 2.50 | — | (2.45) | (2.45) | 37.90 | 7.03 | 583,069 | 1.09 | 1.09 | (0.06) | 36 |
| Year ended 10/31/17 | 32.94 | (0.04) | 5.76 | 5.72 | (0.07) | (0.74) | (0.81) | 37.85 | 17.72 | 595,801 | 1.12 | 1.12 | (0.12) | 36 |
| Year ended 10/31/16 | 43.71 | 0.08 | (5.09) | (5.01) | — | (5.76) | (5.76) | 32.94 | (12.87) | 563,411 | 1.09 | 1.09 | 0.23 | 21 |
| Year ended 10/31/15 | 47.09 | 0.02 | 1.53 | 1.55 | — | (4.93) | (4.93) | 43.71 | 3.57 | 714,351 | 1.04 | 1.05 | 0.04 | 47 |
| Year ended 10/31/14 | 40.39 | 0.01 | 10.15 | 10.16 | (0.01) | (3.45) | (3.46) | 47.09 | 27.19 | 730,280 | 1.07 | 1.08 | 0.04 | 24 |
| Class R6 |
| Six months ended 04/30/19 | 38.71 | 0.12 | 0.67 | 0.79 | — | (2.90) | (2.90) | 36.60 | 2.36 | 42 | 0.77(d) | 0.77(d) | 0.65(d) | 9 |
| Year ended 10/31/18 | 38.49 | 0.09 | 2.58 | 2.67 | — | (2.45) | (2.45) | 38.71 | 7.37 | 41 | 0.79 | 0.79 | 0.24 | 36 |
| Year ended 10/31/17(e) | 36.35 | 0.05 | 2.09 | 2.14 | — | — | — | 38.49 | 5.89 | 14 | 0.78(f) | 0.78(f) | 0.22(f) | 36 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $686,782, $35,615, $35,906, $579,245 and $42 for Class A, Class C, Class Y, Investor Class and Class R6 shares, respectively. |
| (e) | Commencement date of April 04, 2017. |
| (f) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Health Care Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
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.
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. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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.
| 11 | Invesco Health Care 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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. | 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. |
| 12 | Invesco Health Care Fund |
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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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. | Other Risks - The Fund’s performance is vulnerable to factors affecting the health care industry, including government regulation, obsolescence caused by scientific advances and technological innovations. |
The Fund has invested in non-publicly traded companies, some of which are in the startup or development stages. These investments are inherently risky, as the market for the technologies or products these companies are developing are typically in the early stages and may never materialize. The Fund could lose its entire investment in these companies. These investments are valued at fair value as determined in good faith in accordance with procedures approved by the Board of Trustees. Investments in privately held venture capital securities are illiquid.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 $350 million | 0.75% |
| Next $350 million | 0.65% |
| Next $1.3 billion | 0.55% |
| Next $2 billion | 0.45% |
| Next $2 billion | 0.40% |
| Next $2 billion | 0.375% |
| Over $8 billion | 0.35% |
For the six months ended April 30, 2019, the effective advisory fees 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 contractually agreed, through at least June 30, 2020, 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 Y, Investor Class and Class R6 shares to 2.00%, 2.75%, 1.75%, 2.00% and 1.75% of average daily net assets (the "expense limits"), respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause 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 June 30, 2020. 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $22,839.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
| 13 | Invesco Health Care Fund |
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plan are shown in the Statement of Operations asDistribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $26,778 in front-end sales commissions from the sale of Class A shares and $831 and $467 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $1,294,402,646 | $— | $— | $1,294,402,646 |
| Preferred Stocks | — | — | 3 | 3 |
| Money Market Funds | 25,121,464 | — | — | 25,121,464 |
| Total Investments | $1,319,524,110 | $— | $3 | $1,319,524,113 |
NOTE 4—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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 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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $14,035.
| 14 | Invesco Health Care 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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $116,921,795 and $143,171,884, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $435,642,067 |
| Aggregate unrealized (depreciation) of investments | (34,274,308) |
| Net unrealized appreciation of investments | $401,367,759 |
Cost of investments for tax purposes is $918,156,354.
| 15 | Invesco Health Care Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 553,800 | $20,038,365 | | 761,451 | $28,428,914 |
| Class B(b) | — | — | | 494 | 13,144 |
| Class C | 118,585 | 2,863,638 | | 169,045 | 4,411,958 |
| Class Y | 257,799 | 9,466,113 | | 378,223 | 14,462,686 |
| Investor Class | 97,940 | 3,533,000 | | 186,846 | 6,906,616 |
| Class R6 | 41 | 1,500 | | 828 | 29,709 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 1,402,255 | 48,153,429 | | 1,203,273 | 42,764,338 |
| Class B(b) | — | — | | 6,763 | 166,983 |
| Class C | 209,277 | 4,775,696 | | 191,734 | 4,743,503 |
| Class Y | 64,599 | 2,268,073 | | 52,405 | 1,896,535 |
| Investor Class | 1,226,589 | 42,121,076 | | 1,022,012 | 36,332,522 |
| Class R6 | 66 | 2,326 | | 5 | 199 |
| Conversion of Class B shares to Class A shares:(c) | | | | | |
| Class A | — | — | | 49,944 | 1,906,378 |
| Class B | — | — | | (72,114) | (1,906,378) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 527,388 | 18,387,053 | | - | - |
| Class C | (794,524) | (18,387,053) | | - | - |
| Reacquired: | | | | | |
| Class A | (1,507,459) | (53,671,226) | | (2,971,042) | (109,563,077) |
| Class B(b) | — | — | | (11,915) | (306,737) |
| Class C | (210,026) | (5,052,536) | | (702,791) | (18,113,892) |
| Class Y | (260,038) | (9,557,091) | | (409,319) | (15,356,968) |
| Investor Class | (633,846) | (22,714,683) | | (1,566,799) | (57,941,573) |
| Class R6 | (39) | (1,459) | | (123) | (4,825) |
| Net increase (decrease) in share activity | 1,052,407 | $42,226,221 | | (1,711,080) | $(61,129,965) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 13% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| (b) | Reflects activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| (c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| 16 | Invesco Health Care Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,022.10 | $5.41 | $1,019.44 | $5.41 | 1.08% |
| Class C | 1,000.00 | 1,018.30 | 9.16 | 1,015.72 | 9.15 | 1.83 |
| Class Y | 1,000.00 | 1,023.30 | 4.16 | 1,020.68 | 4.16 | 0.83 |
| Investor Class | 1,000.00 | 1,022.10 | 5.41 | 1,019.44 | 5.41 | 1.08 |
| Class R6 | 1,000.00 | 1,023.60 | 3.86 | 1,020.98 | 3.86 | 0.77 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 17 | Invesco Health Care Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | GHC-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Long/Short Equity Fund
Nasdaq:
A: LSQAX ■ C: LSQCX ■ R: LSQRX ■ Y: LSQYX ■ R5: LSQFX ■ R6: LSQSX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | –11.34% |
| Class C Shares | –11.66 |
| Class R Shares | –11.45 |
| Class Y Shares | –11.24 |
| Class R5 Shares | –11.22 |
| Class R6 Shares | –11.12 |
| S&P 500 Index▼ (Broad Market Index) | 9.76 |
FTSE US 3-Month Treasury Bill Index■
(Style-Specific Index) | 1.19 |
Lipper Alternative Long/Short Equity Funds Index♦
(Peer Group Index) | 3.77 |
| Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
TheS&P 500® Index is an unmanaged index considered representative of the US stock market.
The FTSE US 3-Month Treasury Bill Index is an unmanaged index considered representative of three-month US Treasury Bills.
TheLipper Alternative Long/Short Equity Funds Index is an unmanaged index considered representative of alternative long/short equity funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Long/Short Equity Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/19/13) | 2.51% |
| 5 Years | 0.65 |
| 1 Year | –20.48 |
| Class C Shares | |
| Inception (12/19/13) | 2.83% |
| 5 Years | 1.05 |
| 1 Year | –17.23 |
| Class R Shares | |
| Inception (12/19/13) | 3.33% |
| 5 Years | 1.53 |
| 1 Year | –16.05 |
| Class Y Shares | |
| Inception (12/19/13) | 3.85% |
| 5 Years | 2.04 |
| 1 Year | –15.64 |
| Class R5 Shares | |
| Inception (12/19/13) | 3.89% |
| 5 Years | 2.08 |
| 1 Year | –15.61 |
| Class R6 Shares | |
| Inception (12/19/13) | 3.93% |
| 5 Years | 2.13 |
| 1 Year | –15.43 |
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.57%, 2.32%, 1.82%, 1.32%, 1.24% and 1.17%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.58%, 2.33%, 1.83%, 1.33%, 1.25% and 1.18%, re-
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/19/13) | 2.44% |
| 5 Years | 1.49 |
| 1 Year | –20.54 |
| Class C Shares | |
| Inception (12/19/13) | 2.76% |
| 5 Years | 1.86 |
| 1 Year | –17.35 |
| Class R Shares | |
| Inception (12/19/13) | 3.28% |
| 5 Years | 2.38 |
| 1 Year | –16.17 |
| Class Y Shares | |
| Inception (12/19/13) | 3.80% |
| 5 Years | 2.89 |
| 1 Year | –15.74 |
| Class R5 Shares | |
| Inception (12/19/13) | 3.84% |
| 5 Years | 2.94 |
| 1 Year | –15.65 |
| Class R6 Shares | |
| Inception (12/19/13) | 3.86% |
| 5 Years | 2.96 |
| 1 Year | –15.56 |
spectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | Invesco Long/Short Equity Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Long/Short Equity Fund |
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–94.12% |
| Advertising–0.60% |
| Omnicom Group, Inc. | 4,750 | $380,143 |
| Airlines–2.00% |
| United Continental Holdings, Inc.(b) | 14,400 | 1,279,584 |
| Apparel Retail–1.91% |
| Foot Locker, Inc. | 21,300 | 1,218,573 |
| Apparel, Accessories & Luxury Goods–2.26% |
| lululemon athletica, Inc.(b) | 1,000 | 176,350 |
| Ralph Lauren Corp. | 9,650 | 1,269,747 |
| | | | 1,446,097 |
| Application Software–0.91% |
| Cadence Design Systems, Inc.(b) | 8,400 | 582,792 |
| Auto Parts & Equipment–0.30% |
| Garrett Motion, Inc. (Switzerland)(b) | 10,050 | 188,940 |
| Biotechnology–5.04% |
| Incyte Corp.(b) | 12,700 | 975,360 |
| United Therapeutics Corp.(b) | 10,800 | 1,107,756 |
| Vertex Pharmaceuticals, Inc.(b) | 6,700 | 1,132,166 |
| | | | 3,215,282 |
| Building Products–0.17% |
| Resideo Technologies, Inc.(b) | 4,850 | 110,095 |
| Cable & Satellite–1.82% |
| Altice USA, Inc., Class A(b) | 33,250 | 783,370 |
| Liberty Global PLC Class C (United Kingdom)(b) | 14,400 | 376,560 |
| | | | 1,159,930 |
| Construction Machinery & Heavy Trucks–1.93% |
| Allison Transmission Holdings, Inc. | 26,300 | 1,232,418 |
| Consumer Finance–3.87% |
| Ally Financial, Inc. | 42,000 | 1,247,820 |
| Santander Consumer USA Holdings, Inc. | 57,200 | 1,221,220 |
| | | | 2,469,040 |
| Copper–0.25% |
| Freeport-McMoRan, Inc. | 13,000 | 160,030 |
| Data Processing & Outsourced Services–0.13% |
| Sabre Corp. | 3,900 | 80,964 |
| Department Stores–3.42% |
| Kohl’s Corp. | 17,450 | 1,240,695 |
| Macy’s, Inc. | 40,050 | 942,777 |
| | | | 2,183,472 |
| | Shares | Value |
| Diversified Chemicals–0.97% |
| Huntsman Corp. | 27,800 | $618,272 |
| Diversified Metals & Mining–1.98% |
| Teck Resources Ltd. Class B (Canada) | 53,500 | 1,265,275 |
| Electric Utilities–1.41% |
| Entergy Corp. | 9,320 | 903,108 |
| Fertilizers & Agricultural Chemicals–1.96% |
| CF Industries Holdings, Inc. | 28,000 | 1,253,840 |
| Gas Utilities–0.23% |
| UGI Corp. | 2,700 | 147,177 |
| Health Care Distributors–1.54% |
| Cardinal Health, Inc. | 20,150 | 981,507 |
| Health Care Facilities–0.83% |
| Universal Health Services, Inc. Class B | 4,200 | 532,854 |
| Homebuilding–1.98% |
| PulteGroup, Inc. | 40,250 | 1,266,265 |
| Hotel & Resort REITs–1.78% |
| Host Hotels & Resorts, Inc. | 59,100 | 1,137,084 |
| Hotels, Resorts & Cruise Lines–4.90% |
| Hilton Worldwide Holdings, Inc. | 10,800 | 939,492 |
| Hyatt Hotels Corp., Class A | 16,450 | 1,262,208 |
| Norwegian Cruise Line Holdings Ltd.(b) | 16,450 | 927,616 |
| | | | 3,129,316 |
| Household Products–1.94% |
| Church & Dwight Co., Inc. | 16,550 | 1,240,423 |
| Human Resource & Employment Services–1.95% |
| Robert Half International, Inc. | 20,100 | 1,248,009 |
| Industrial Machinery–1.73% |
| Dover Corp. | 11,250 | 1,102,950 |
| Interactive Media & Services–1.44% |
| TripAdvisor, Inc.(b) | 17,300 | 920,879 |
| IT Consulting & Other Services–0.48% |
| Booz Allen Hamilton Holding Corp. | 5,200 | 308,308 |
| Life & Health Insurance–4.68% |
| Athene Holding Ltd., Class A(b) | 26,150 | 1,180,934 |
| Brighthouse Financial, Inc.(b) | 17,950 | 750,130 |
| MetLife, Inc. | 22,900 | 1,056,377 |
| | | | 2,987,441 |
| Office REITs–1.57% |
| Boston Properties, Inc. | 7,300 | 1,004,626 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Long/Short Equity Fund |
| | Shares | Value |
| Oil & Gas Exploration & Production–5.83% |
| Cabot Oil & Gas Corp. | 35,750 | $925,567 |
| ConocoPhillips | 7,100 | 448,152 |
| Devon Energy Corp. | 34,550 | 1,110,437 |
| Marathon Oil Corp. | 72,850 | 1,241,364 |
| | | | 3,725,520 |
| Packaged Foods & Meats–2.86% |
| Hershey Co. (The) | 6,600 | 824,010 |
| Lamb Weston Holdings, Inc. | 14,350 | 1,005,217 |
| | | | 1,829,227 |
| Regional Banks–6.90% |
| CIT Group, Inc. | 18,000 | 958,860 |
| Citizens Financial Group, Inc. | 34,150 | 1,236,230 |
| Comerica, Inc. | 14,100 | 1,108,119 |
| Zions Bancorp. N.A. | 22,300 | 1,100,059 |
| | | | 4,403,268 |
| Research & Consulting Services–1.06% |
| Thomson Reuters Corp. (Canada) | 10,950 | 677,148 |
| Residential REITs–2.83% |
| Equity LifeStyle Properties, Inc. | 10,800 | 1,260,360 |
| UDR, Inc. | 12,200 | 548,390 |
| | | | 1,808,750 |
| Restaurants–4.53% |
| Darden Restaurants, Inc. | 10,400 | 1,223,040 |
| Yum China Holdings, Inc. (China) | 21,150 | 1,005,471 |
| Yum! Brands, Inc. | 6,350 | 662,876 |
| | | | 2,891,387 |
| Retail REITs–2.35% |
| Kimco Realty Corp. | 37,300 | 648,647 |
| National Retail Properties, Inc. | 16,150 | 849,813 |
| | | | 1,498,460 |
| | Shares | Value |
| Semiconductor Equipment–0.98% |
| KLA-Tencor Corp. | 4,900 | $624,652 |
| Semiconductors–0.19% |
| Broadcom, Inc. | 200 | 63,680 |
| Xilinx, Inc. | 500 | 60,070 |
| | | | 123,750 |
| Specialized Consumer Services–2.90% |
| H&R Block, Inc. | 47,200 | 1,284,312 |
| ServiceMaster Global Holdings, Inc.(b) | 11,600 | 568,748 |
| | | | 1,853,060 |
| Specialty Chemicals–1.42% |
| Celanese Corp. Series A | 8,400 | 906,276 |
| Technology Distributors–2.05% |
| Avnet, Inc. | 26,350 | 1,280,874 |
| CDW Corp. | 250 | 26,400 |
| | | | 1,307,274 |
| Technology Hardware, Storage & Peripherals–3.77% |
| HP, Inc. | 55,400 | 1,105,230 |
| Xerox Corp. | 38,950 | 1,299,372 |
| | | | 2,404,602 |
| Trading Companies & Distributors–0.47% |
| HD Supply Holdings, Inc.(b) | 6,500 | 296,986 |
| TOTAL INVESTMENTS IN SECURITIES–94.12% (Cost $54,844,084) | 60,105,054 |
| OTHER ASSETS LESS LIABILITIES–5.88% | 3,753,726 |
| NET ASSETS–100.00% | $63,858,780 |
Investment Abbreviations:
| REIT | – Real Estate Investment Trust |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Non-income producing security. |
| Open Over-The-Counter Total Return Swap Agreements |
| Reference Entity | Counterparty | Maturity Date | Floating Rate
Index(1) | Payment
Frequency | Notional
Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) | Net Value of
Reference
Entities |
| Equity Risk | | | | | | | | | |
| Equity Securities — Long | Morgan Stanley & Co. LLC | 12/23/2019 | Federal Funds floating rate | Monthly | $62,628,033 | $— | $968,918(2) | $968,918(2) | $63,565,029 |
| Subtotal — Appreciation | | — | 968,918 | 968,918 | 63,565,029 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Long/Short Equity Fund |
| Open Over-The-Counter Total Return Swap Agreements—(continued) |
| Reference Entity | Counterparty | Maturity Date | Floating Rate
Index(1) | Payment
Frequency | Notional
Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) | Net Value of
Reference
Entities |
| Equity Risk | | | | | | | | | |
| Equity Securities — Short | Morgan Stanley & Co. LLC | 12/23/2019 | Federal Funds floating rate | Monthly | $(63,320,879) | $— | $(260,532)(3) | $(260,532)(3) | $(63,542,031) |
| Subtotal — Depreciation | | — | (260,532) | (260,532) | (63,542,031) |
| Total — Total Return Swap Agreements | | $— | $708,386(4) | $708,386(4) | $22,998 |
| (1) | The Fund receives or pays the total return on the long and short positions underlying the total return swap and pays or receives a specific Federal Funds floating rate. |
| (2) | Amount includes $31,923 of dividends receivable and financing fees related to the reference entities. |
| (3) | Amount includes $(39,381) of dividends payable and financing fees related to the reference entities. |
| (4) | Swap agreements collateralized by $171,918 cash held with Morgan Stanley & Co. LLC , the Counterparty. |
The following table represents the individual long and short positions and related values of equity securities underlying the total return swaps with Morgan Stanley & Co. LLC, as of April 30, 2019.
| | Shares | Value | Percentage
of
Reference
Entities |
| Equity Securities - Long |
| Advertising |
| Omnicom Group, Inc. | 9,700 | $ 776,291 | 1.27 |
| Aerospace & Defense |
| Textron, Inc. | 2,250 | 119,250 | 0.19 |
| Apparel, Accessories & Luxury Goods |
| lululemon athletica, Inc. | 6,150 | 1,084,553 | 1.70 |
| Application Software |
| Assurant, Inc. | 7,050 | 489,129 | 0.72 |
| Auto Parts & Equipment |
| Magna International, Inc. | 22,650 | 1,260,246 | 2.03 |
| Automobile Manufacturers |
| Ford Motor Co. | 91,450 | 955,653 | 1.51 |
| General Motors Co. | 28,050 | 1,092,547 | 1.77 |
| | | 2,048,200 | |
| Automotive Retail |
| AutoZone, Inc. | 1,225 | 1,259,680 | 2.02 |
| Biotechnology |
| AbbVie, Inc. | 14,900 | 1,182,911 | 1.86 |
| Alexion Pharmaceuticals, Inc. | 9,300 | 1,266,009 | 1.92 |
| Amgen, Inc. | 6,750 | 1,210,410 | 1.90 |
| Biogen, Inc. | 4,140 | 949,053 | 1.51 |
| Gilead Sciences, Inc. | 18,650 | 1,212,996 | 1.84 |
| Regeneron Pharmaceuticals, Inc. | 3,120 | 1,070,597 | 1.66 |
| | | 6,891,976 | |
| Cable & Satellite |
| Comcast Corp., Class A | 22,100 | 962,013 | 1.53 |
| Liberty Global PLC, Class C | 34,200 | 894,330 | 1.45 |
| | | 1,856,343 | |
| | Shares | Value | Percentage
of
Reference
Entities |
| Communications Equipment |
| Cisco Systems, Inc. | 22,650 | $ 1,267,267 | 2.04 |
| Consumer Electronics |
| Garmin Ltd. | 14,650 | 1,256,091 | 2.01 |
| Consumer Finance |
| Discover Financial Services | 15,550 | 1,267,170 | 1.91 |
| Copper |
| Freeport-McMoRan, Inc. | 87,600 | 1,078,356 | 1.91 |
| Data Processing & Outsourced Services |
| Automatic Data Processing, Inc. | 7,700 | 1,265,803 | 1.99 |
| PayPal Holdings, Inc. | 3,050 | 343,948 | 0.55 |
| | | 1,609,751 | |
| Department Stores |
| Macy’s, Inc. | 1,850 | 43,549 | 0.07 |
| Diversified Banks |
| Bank of Montreal | 14,050 | 1,109,528 | 1.77 |
| Canadian Imperial Bank of Commerce | 13,350 | 1,124,337 | 1.77 |
| Citigroup, Inc. | 13,700 | 968,590 | 1.57 |
| Toronto-Dominion Bank (The) | 2,150 | 122,486 | 0.19 |
| | | 3,324,941 | |
| Electric Utilities |
| Entergy Corp. | 180 | 17,442 | 0.03 |
| Exelon Corp. | 24,600 | 1,253,370 | 1.94 |
| FirstEnergy Corp. | 30,400 | 1,277,712 | 1.97 |
| | | 2,548,524 | |
| Health Care Distributors |
| McKesson Corp. | 5,800 | 691,650 | 1.04 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Long/Short Equity Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| Health Care Equipment |
| Medtronic PLC | 12,450 | $ 1,105,685 | 1.67 |
| Health Care Facilities |
| HCA Healthcare, Inc. | 9,500 | 1,208,685 | 1.74 |
| Hotel & Resort REITs |
| Host Hotels & Resorts, Inc. | 4,550 | 87,542 | 0.14 |
| Household Products |
| Procter & Gamble Co. (The) | 11,700 | 1,245,816 | 1.98 |
| Integrated Oil & Gas |
| Imperial Oil Ltd. | 9,700 | 282,076 | 0.46 |
| Integrated Telecommunication Services |
| Verizon Communications, Inc. | 21,050 | 1,203,850 | 1.96 |
| Interactive Media & Services |
| TripAdvisor, Inc. | 1,450 | 77,184 | 0.12 |
| Internet & Direct Marketing Retail |
| eBay, Inc. | 24,800 | 961,000 | 1.52 |
| Expedia Group, Inc. | 9,850 | 1,278,924 | 1.96 |
| | | 2,239,924 | |
| Life & Health Insurance |
| Aflac, Inc. | 22,800 | 1,148,664 | 1.77 |
| Managed Health Care |
| Anthem, Inc. | 3,340 | 878,520 | 1.30 |
| Oil & Gas Exploration & Production |
| ConocoPhillips | 11,500 | 725,880 | 1.23 |
| Packaged Foods & Meats |
| Hershey Co. (The) | 3,500 | 436,975 | 0.65 |
| Mondelez International, Inc., Class A | 19,350 | 983,947 | 1.55 |
| | | 1,420,922 | |
| Pharmaceuticals |
| Allergan PLC | 7,600 | 1,117,200 | 1.70 |
| Eli Lilly and Co. | 9,750 | 1,141,140 | 1.80 |
| Merck & Co., Inc. | 15,400 | 1,212,134 | 1.81 |
| | | 3,470,474 | |
| Railroads |
| CSX Corp. | 15,950 | 1,270,098 | 2.01 |
| Norfolk Southern Corp. | 6,200 | 1,264,924 | 1.99 |
| Union Pacific Corp. | 1,250 | 221,300 | 0.35 |
| | | 2,756,322 | |
| Regional Banks |
| Citizens Financial Group, Inc. | 650 | 23,530 | 0.04 |
| | Shares | Value | Percentage
of
Reference
Entities |
| Regional Banks—(continued) |
| Fifth Third Bancorp | 38,500 | $ 1,109,570 | 1.69 |
| | | 1,133,100 | |
| Research & Consulting Services |
| Thomson Reuters Corp. | 7,800 | 482,352 | 0.75 |
| Residential REITs |
| Camden Property Trust | 6,200 | 624,030 | 0.97 |
| Essex Property Trust, Inc. | 4,350 | 1,228,875 | 1.91 |
| | | 1,852,905 | |
| Restaurants |
| Starbucks Corp. | 16,350 | 1,270,068 | 1.97 |
| Yum! Brands, Inc. | 2,800 | 292,292 | 0.46 |
| | | 1,562,360 | |
| Retail REITs |
| Simon Property Group, Inc. | 7,050 | 1,224,585 | 1.96 |
| Semiconductor Equipment |
| KLA-Tencor Corp. | 2,650 | 337,822 | 0.52 |
| Semiconductors |
| Broadcom, Inc. | 3,500 | 1,114,400 | 1.76 |
| QUALCOMM, Inc. | 14,600 | 1,257,498 | 1.91 |
| Xilinx, Inc. | 7,850 | 943,099 | 1.69 |
| | | 3,314,997 | |
| Specialized REITs |
| American Tower Corp., Class A | 4,900 | 956,970 | 1.51 |
| Systems Software |
| Fortinet, Inc. | 13,600 | 1,270,512 | 1.99 |
| Oracle Corp. | 21,750 | 1,203,427 | 1.90 |
| | | 2,473,939 | |
| Technology Distributors |
| CDW Corp. | 11,750 | 1,240,800 | 1.97 |
| Technology Hardware, Storage & Peripherals |
| Hewlett Packard Enterprise Co. | 79,750 | 1,260,847 | 2.11 |
| HP, Inc. | 1,450 | 28,928 | 0.05 |
| | | 1,289,775 | |
| Trading Companies & Distributors |
| HD Supply Holdings, Inc. | 21,250 | 970,913 | 1.49 |
| Total Equity Securities - Long | $ 63,565,029 | |
| Equity Securities - Short |
| Aerospace & Defense |
| BWX Technologies, Inc. | (18,650) | (953,015) | 1.52 |
| General Dynamics Corp. | (5,300) | (947,216) | 1.48 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Long/Short Equity Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| Aerospace & Defense—(continued) |
| Northrop Grumman Corp. | (3,340) | $ (968,299) | 1.49 |
| | | (2,868,530) | |
| Agricultural Products |
| Bunge Ltd. | (18,550) | (972,206) | 1.50 |
| Air Freight & Logistics |
| XPO Logistics, Inc. | (14,000) | (953,120) | 1.48 |
| Airlines |
| American Airlines Group, Inc. | (28,700) | (980,966) | 1.52 |
| Apparel Retail |
| Burlington Stores, Inc. | (5,450) | (920,560) | 1.47 |
| Application Software |
| Nutanix, Inc., Class A | (21,900) | (945,861) | 1.48 |
| Asset Management & Custody Banks |
| Eaton Vance Corp. | (16,250) | (675,512) | 1.07 |
| State Street Corp. | (13,900) | (940,474) | 1.53 |
| | | (1,615,986) | |
| Auto Parts & Equipment |
| Autoliv, Inc. | (6,250) | (490,563) | 0.84 |
| Automobile Manufacturers |
| Tesla, Inc. | (3,160) | (754,260) | 1.31 |
| Biotechnology |
| Alnylam Pharmaceuticals, Inc. | (10,700) | (955,938) | 1.41 |
| Bluebird Bio, Inc. | (6,600) | (936,078) | 1.42 |
| Exact Sciences Corp. | (9,700) | (957,293) | 1.51 |
| | | (2,849,309) | |
| Building Products |
| A.O. Smith Corp. | (9,050) | (475,758) | 0.80 |
| Owens Corning | (18,700) | (958,749) | 1.60 |
| | | (1,434,507) | |
| Cable & Satellite |
| Liberty Broadband Corp., Class C | (4,550) | (449,130) | 0.68 |
| Sirius XM Holdings, Inc. | (164,300) | (954,583) | 1.52 |
| | | (1,403,713) | |
| Casinos & Gaming |
| Wynn Resorts, Ltd. | (6,350) | (917,258) | 1.40 |
| Communications Equipment |
| Arista Networks, Inc. | (2,960) | (924,378) | 1.53 |
| Construction Materials |
| Martin Marietta Materials, Inc. | (4,400) | (976,360) | 1.47 |
| | Shares | Value | Percentage
of
Reference
Entities |
| Construction Materials—(continued) |
| Vulcan Materials Co. | (7,700) | $ (971,047) | 1.50 |
| | | (1,947,407) | |
| Distillers & Vintners |
| Constellation Brands, Inc., Class A | (4,450) | (941,932) | 1.47 |
| Distributors |
| LKQ Corp. | (31,600) | (951,160) | 1.53 |
| Diversified Support Services |
| Copart, Inc. | (14,200) | (955,944) | 1.46 |
| Electronic Equipment & Instruments |
| Cognex Corp. | (17,250) | (869,918) | 1.50 |
| Electronic Manufacturing Services |
| Flex Ltd. | (88,250) | (974,280) | 1.55 |
| IPG Photonics Corp. | (5,450) | (952,278) | 1.52 |
| | | (1,926,558) | |
| Fertilizers & Agricultural Chemicals |
| Nutrien Ltd. | (7,650) | (414,477) | 0.65 |
| Financial Exchanges & Data |
| Cboe Global Markets, Inc. | (6,200) | (629,982) | 0.99 |
| CME Group, Inc., Class A | (5,300) | (948,170) | 1.50 |
| MarketAxess Holdings, Inc. | (3,500) | (974,155) | 1.45 |
| Moody’s Corp. | (4,850) | (953,607) | 1.44 |
| | | (3,505,914) | |
| Health Care Equipment |
| Intuitive Surgical, Inc. | (1,820) | (929,347) | 1.47 |
| Health Care Supplies |
| Align Technology, Inc. | (2,980) | (967,546) | 1.37 |
| Home Furnishings |
| Mohawk Industries, Inc. | (7,450) | (1,015,063) | 1.55 |
| Homebuilding |
| D.R. Horton, Inc. | (21,550) | (954,881) | 1.55 |
| Industrial Machinery |
| Middleby Corp. (The) | (3,300) | (436,029) | 0.69 |
| Xylem, Inc. | (11,400) | (950,760) | 1.50 |
| | | (1,386,789) | |
| Interactive Home Entertainment |
| Activision Blizzard, Inc. | (19,700) | (949,737) | 1.41 |
| Interactive Media & Services |
| Facebook, Inc., Class A | (4,950) | (957,330) | 1.42 |
| Snap, Inc., Class A | (86,950) | (968,623) | 1.58 |
| Zillow Group, Inc.,, Class c | (27,000) | (901,800) | 1.49 |
| | | (2,827,753) | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Long/Short Equity Fund |
| | Shares | Value | Percentage
of
Reference
Entities |
| Internet & Direct Marketing Retail |
| GrubHub, Inc. | (13,950) | $ (931,720) | 1.45 |
| Wayfair, Inc., Class A | (6,000) | (972,900) | 1.40 |
| | | (1,904,620) | |
| Internet Services & Infrastructure |
| Shopify, Inc., Class A | (4,250) | (1,035,003) | 1.51 |
| Leisure Products |
| Mattel, Inc. | (70,900) | (864,271) | 1.32 |
| Polaris Industries, Inc. | (6,950) | (669,980) | 1.06 |
| | | (1,534,251) | |
| Movies & Entertainment |
| Liberty Media Corp.-Liberty Formula One, Class C | (24,750) | (960,547) | 1.47 |
| Netflix, Inc. | (2,520) | (933,761) | 1.50 |
| | | (1,894,308) | |
| Multi-line Insurance |
| American International Group, Inc. | (20,600) | (979,942) | 1.50 |
| Office REITs |
| Kilroy Realty Corp. | (12,200) | (938,302) | 1.44 |
| Oil & Gas Exploration & Production |
| Concho Resources, Inc. | (8,000) | (923,040) | 1.52 |
| Noble Energy, Inc. | (30,600) | (828,036) | 1.35 |
| Pioneer Natural Resources Co. | (5,750) | (957,145) | 1.60 |
| | | (2,708,221) | |
| Oil & Gas Storage & Transportation |
| ONEOK, Inc. | (13,800) | (937,434) | 1.52 |
| Targa Resources Corp. | (23,350) | (937,502) | 1.51 |
| | | (1,874,936) | |
| Personal Products |
| Coty, Inc., Class A | (82,950) | (897,519) | 1.47 |
| | Shares | Value | Percentage
of
Reference
Entities |
| Property & Casualty Insurance |
| Markel Corp. | (920) | $ (985,789) | 1.48 |
| Real Estate Development |
| Howard Hughes Corp. (The) | (8,550) | (949,050) | 1.46 |
| Research & Consulting Services |
| TransUnion | (13,650) | (950,723) | 1.52 |
| Retail REITs |
| Macerich Co. (The) | (23,100) | (927,234) | 1.47 |
| Semiconductors |
| NVIDIA Corp. | (5,250) | (950,250) | 1.56 |
| Specialized REITs |
| Digital Realty Trust, Inc. | (8,050) | (947,565) | 1.52 |
| Equinix, Inc. | (2,080) | (945,776) | 1.47 |
| | | (1,893,341) | |
| Specialty Chemicals |
| Albemarle Corp. | (11,200) | (840,672) | 1.45 |
| Specialty Stores |
| Tiffany & Co. | (8,800) | (948,816) | 1.47 |
| Trading Companies & Distributors |
| Watsco, Inc. | (5,950) | (942,897) | 1.42 |
| Trucking |
| JB Hunt Transport Services, Inc. | (9,650) | (911,732) | 1.46 |
| Knight-Swift Transportation Holdings, Inc. | (26,950) | (898,782) | 1.48 |
| | | (1,810,514) | |
| Total Equity Securities - Short | $ (63,542,031) | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Long/Short Equity Fund |
Portfolio Composition
By sector, based on total net assets
as of April 30, 2019
| | Equity Securities | Gross
Exposure3 | Net
Exposure4 |
| | Long1 | Short2 |
| Consumer Discretionary | 42.9% | 16.3% | 59.2% | 26.7% |
| Health Care | 29.7 | 7.4 | 37.1 | 22.3 |
| Information Technology | 27.3 | 10.4 | 37.8 | 16.9 |
| Financials | 26.2 | 11.1 | 37.3 | 15.1 |
| Industrials | 16.1 | 19.2 | 35.3 | -3.2 |
| Real Estate | 15.0 | 7.4 | 22.4 | 7.6 |
| Communication Services | 10.0 | 11.1 | 21.1 | -1.1 |
| Materials | 8.3 | 5.0 | 13.3 | 3.3 |
| Energy | 7.4 | 7.2 | 14.6 | 0.2 |
| Utilities | 5.6 | 0.0 | 5.6 | 5.6 |
| Consumer Staples | 5.1 | 4.4 | 9.5 | 0.7 |
| Other Assets Less Liabilities | 5.9 | 0.0 | 5.9 | 5.9 |
| Total | 199.5% | 99.5% | 299.0% | 100.0% |
| 1 | Represents the value of equity securities in the portfolio and the equity securities underlying the Fund’s equity long portfolio swap. |
| 2 | Represents the value of the equity securities underlying the Fund’s equity short portfolio swap. |
| 3 | Represents the cumulative exposure of the Fund’s long and short positions. |
| 4 | Represents the net exposure of the Fund’s long and short positions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Long/Short Equity Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $54,844,084) | $60,105,054 |
| Other investments: | |
| Unrealized appreciation on swap agreements — OTC | 968,918 |
| Deposits with brokers: | |
| Cash collateral — OTC Derivatives | 171,918 |
| Foreign currencies, at value (Cost $809) | 804 |
| Receivable for: | |
| Investments sold | 9,488,782 |
| Fund shares sold | 1,030,099 |
| Fund expenses absorbed | 4,883 |
| Dividends | 52,049 |
| Investment for trustee deferred compensation and retirement plans | 14,591 |
| Other assets | 42,775 |
| Total assets | 71,879,873 |
| Liabilities: | |
| Other investments: | |
| Unrealized depreciation on swap agreements—OTC | 260,532 |
| Payable for: | |
| Investments purchased | 6,804,406 |
| Fund shares reacquired | 108,762 |
| Amount due custodian | 752,699 |
| Accrued fees to affiliates | 18,662 |
| Accrued trustees’ and officers’ fees and benefits | 1,579 |
| Accrued other operating expenses | 59,862 |
| Trustee deferred compensation and retirement plans | 14,591 |
| Total liabilities | 8,021,093 |
| Net assets applicable to shares outstanding | $63,858,780 |
| Net assets consist of: | |
| Shares of beneficial interest | $66,877,086 |
| Distributable earnings | (3,018,306) |
| | $63,858,780 |
| Net Assets: |
| Class A | $7,675,754 |
| Class C | $1,840,727 |
| Class R | $214,288 |
| Class Y | $10,096,241 |
| Class R5 | $7,211 |
| Class R6 | $44,024,559 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 861,319 |
| Class C | 213,597 |
| Class R | 24,311 |
| Class Y | 1,121,222 |
| Class R5 | 800 |
| Class R6 | 4,875,890 |
| Class A: | |
| Net asset value per share | $8.91 |
Maximum offering price per share
(Net asset value of $8.91 ÷ 94.50%) | $9.43 |
| Class C: | |
| Net asset value and offering price per share | $8.62 |
| Class R: | |
| Net asset value and offering price per share | $8.81 |
| Class Y: | |
| Net asset value and offering price per share | $9.00 |
| Class R5: | |
| Net asset value and offering price per share | $9.01 |
| Class R6: | |
| Net asset value and offering price per share | $9.03 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Long/Short Equity Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $1,838) | $833,119 |
| Dividends from affiliated money market funds | 61,189 |
| Total investment income | 894,308 |
| Expenses: | |
| Advisory fees | 280,262 |
| Administrative services fees | 11,519 |
| Custodian fees | 1,740 |
| Distribution fees: | |
| Class A | 14,739 |
| Class C | 13,246 |
| Class R | 510 |
| Transfer agent fees — A, C, R and Y | 34,283 |
| Transfer agent fees — R5 | 14 |
| Transfer agent fees — R6 | 319 |
| Trustees’ and officers’ fees and benefits | 11,684 |
| Registration and filing fees | 42,692 |
| Reports to shareholders | 6,972 |
| Professional services fees | 38,739 |
| Other | 6,940 |
| Total expenses | 463,659 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (9,021) |
| Net expenses | 454,638 |
| Net investment income | 439,670 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | 2,235,726 |
| Foreign currencies | 15,665 |
| Swap agreements | (12,198,029) |
| | (9,946,638) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | (636,541) |
| Foreign currencies | 39 |
| Swap agreements | 1,294,312 |
| | 657,810 |
| Net realized and unrealized gain (loss) | (9,288,828) |
| Net increase (decrease) in net assets resulting from operations | $(8,849,158) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Long/Short Equity Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $439,670 | $182,279 |
| Net realized gain (loss) | (9,946,638) | 1,726,221 |
| Change in net unrealized appreciation (depreciation) | 657,810 | (4,316,450) |
| Net increase (decrease) in net assets resulting from operations | (8,849,158) | (2,407,950) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (1,261,039) | (1,746,032) |
| Class C | (309,188) | (397,942) |
| Class R | (18,673) | (19,077) |
| Class Y | (1,424,351) | (1,815,559) |
| Class R5 | (3,504) | (6,829) |
| Class R6 | (3,584,007) | (6,658,511) |
| Total distributions to shareholders from distributable earnings | (6,600,762) | (10,643,950) |
| Share transactions–net: | | |
| Class A | (4,967,186) | 6,565,406 |
| Class C | (1,145,527) | 1,533,990 |
| Class R | 46,717 | 109,260 |
| Class Y | (5,778,184) | 9,860,608 |
| Class R5 | (27,716) | 3,429 |
| Class R6 | 10,027,026 | 2,307,755 |
| Net increase (decrease) in net assets resulting from share transactions | (1,844,870) | 20,380,448 |
| Net increase (decrease) in net assets | (17,294,790) | 7,328,548 |
| Net assets: | | |
| Beginning of period | 81,153,570 | 73,825,022 |
| End of period | $63,858,780 | $81,153,570 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 | Invesco Long/Short Equity Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $11.05 | $0.05 | $(1.27) | $(1.22) | $— | $(0.92) | $(0.92) | $8.91 | (11.34)% | $7,676 | 1.58%(d) | 1.63%(d) | 0.97%(d) | 41% |
| Year ended 10/31/18 | 13.15 | (0.00) | (0.22) | (0.22) | (0.93) | (0.95) | (1.88) | 11.05 | (2.49) | 15,528 | 1.56 | 1.57 | (0.01) | 92 |
| Year ended 10/31/17 | 10.45 | 0.03 | 2.74 | 2.77 | — | (0.07) | (0.07) | 13.15 | 26.62 | 11,457 | 1.57 | 1.62 | 0.27 | 95 |
| Year ended 10/31/16 | 11.50 | 0.06(e) | (0.50) | (0.44) | (0.55) | (0.06) | (0.61) | 10.45 | (4.03) | 11,562 | 1.85 | 2.08 | 0.58(e) | 102 |
| Year ended 10/31/15 | 11.00 | 0.01 | 0.49 | 0.50 | — | (0.00) | (0.00) | 11.50 | 4.57 | 12,854 | 1.85 | 2.76 | 0.11 | 89 |
| Year ended 10/31/14(f) | 10.00 | (0.02) | 1.02 | 1.00 | — | — | — | 11.00 | 10.00 | 16,796 | 1.85(g) | 3.04(g) | (0.25)(g) | 102 |
| Class C |
| Six months ended 04/30/19 | 10.76 | 0.01 | (1.23) | (1.22) | — | (0.92) | (0.92) | 8.62 | (11.66) | 1,841 | 2.33(d) | 2.38(d) | 0.22(d) | 41 |
| Year ended 10/31/18 | 12.86 | (0.09) | (0.22) | (0.31) | (0.84) | (0.95) | (1.79) | 10.76 | (3.24) | 3,696 | 2.31 | 2.32 | (0.76) | 92 |
| Year ended 10/31/17 | 10.30 | (0.06) | 2.69 | 2.63 | — | (0.07) | (0.07) | 12.86 | 25.65 | 2,812 | 2.32 | 2.37 | (0.48) | 95 |
| Year ended 10/31/16 | 11.34 | (0.02)(e) | (0.48) | (0.50) | (0.48) | (0.06) | (0.54) | 10.30 | (4.68) | 2,385 | 2.60 | 2.83 | (0.17)(e) | 102 |
| Year ended 10/31/15 | 10.92 | (0.07) | 0.49 | 0.42 | — | (0.00) | (0.00) | 11.34 | 3.87 | 2,350 | 2.60 | 3.51 | (0.64) | 89 |
| Year ended 10/31/14(f) | 10.00 | (0.10) | 1.02 | 0.92 | — | — | — | 10.92 | 9.20 | 2,618 | 2.60(g) | 3.79(g) | (1.00)(g) | 102 |
| Class R |
| Six months ended 04/30/19 | 10.95 | 0.03 | (1.25) | (1.22) | — | (0.92) | (0.92) | 8.81 | (11.45) | 214 | 1.83(d) | 1.88(d) | 0.72(d) | 41 |
| Year ended 10/31/18 | 13.06 | (0.03) | (0.23) | (0.26) | (0.90) | (0.95) | (1.85) | 10.95 | (2.81) | 211 | 1.81 | 1.82 | (0.26) | 92 |
| Year ended 10/31/17 | 10.40 | 0.00 | 2.73 | 2.73 | — | (0.07) | (0.07) | 13.06 | 26.37 | 132 | 1.82 | 1.87 | 0.02 | 95 |
| Year ended 10/31/16 | 11.45 | 0.04(e) | (0.50) | (0.46) | (0.53) | (0.06) | (0.59) | 10.40 | (4.27) | 83 | 2.10 | 2.33 | 0.33(e) | 102 |
| Year ended 10/31/15 | 10.98 | (0.02) | 0.49 | 0.47 | — | (0.00) | (0.00) | 11.45 | 4.31 | 40 | 2.10 | 3.01 | (0.14) | 89 |
| Year ended 10/31/14(f) | 10.00 | (0.04) | 1.02 | 0.98 | — | — | — | 10.98 | 9.80 | 27 | 2.10(g) | 3.29(g) | (0.50)(g) | 102 |
| Class Y |
| Six months ended 04/30/19 | 11.14 | 0.06 | (1.28) | (1.22) | — | (0.92) | (0.92) | 9.00 | (11.24) | 10,096 | 1.33(d) | 1.38(d) | 1.22(d) | 41 |
| Year ended 10/31/18 | 13.25 | 0.03 | (0.23) | (0.20) | (0.96) | (0.95) | (1.91) | 11.14 | (2.28) | 19,286 | 1.31 | 1.32 | 0.24 | 92 |
| Year ended 10/31/17 | 10.51 | 0.06 | 2.75 | 2.81 | — | (0.07) | (0.07) | 13.25 | 26.85 | 12,145 | 1.32 | 1.37 | 0.52 | 95 |
| Year ended 10/31/16 | 11.56 | 0.09(e) | (0.50) | (0.41) | (0.58) | (0.06) | (0.64) | 10.51 | (3.74) | 7,604 | 1.60 | 1.83 | 0.83(e) | 102 |
| Year ended 10/31/15 | 11.02 | 0.04 | 0.50 | 0.54 | — | (0.00) | (0.00) | 11.56 | 4.93 | 7,709 | 1.60 | 2.51 | 0.36 | 89 |
| Year ended 10/31/14(f) | 10.00 | 0.00 | 1.02 | 1.02 | — | — | — | 11.02 | 10.20 | 12,389 | 1.60(g) | 2.79(g) | 0.00(g) | 102 |
| Class R5 |
| Six months ended 04/30/19 | 11.15 | 0.06 | (1.28) | (1.22) | — | (0.92) | (0.92) | 9.01 | (11.22) | 7 | 1.23(d) | 1.24(d) | 1.32(d) | 41 |
| Year ended 10/31/18 | 13.26 | 0.04 | (0.23) | (0.19) | (0.97) | (0.95) | (1.92) | 11.15 | (2.17) | 42 | 1.23 | 1.24 | 0.32 | 92 |
| Year ended 10/31/17 | 10.50 | 0.07 | 2.76 | 2.83 | — | (0.07) | (0.07) | 13.26 | 27.07 | 47 | 1.22 | 1.25 | 0.62 | 95 |
| Year ended 10/31/16 | 11.56 | 0.09(e) | (0.51) | (0.42) | (0.58) | (0.06) | (0.64) | 10.50 | (3.83) | 543 | 1.60 | 1.71 | 0.83(e) | 102 |
| Year ended 10/31/15 | 11.02 | 0.04 | 0.50 | 0.54 | — | (0.00) | (0.00) | 11.56 | 4.93 | 578 | 1.60 | 2.38 | 0.36 | 89 |
| Year ended 10/31/14(f) | 10.00 | 0.00 | 1.02 | 1.02 | — | — | — | 11.02 | 10.20 | 718 | 1.60(g) | 2.69(g) | 0.00(g) | 102 |
| Class R6 |
| Six months ended 04/30/19 | 11.16 | 0.07 | (1.28) | (1.21) | — | (0.92) | (0.92) | 9.03 | (11.12) | 44,025 | 1.13(d) | 1.14(d) | 1.42(d) | 41 |
| Year ended 10/31/18 | 13.26 | 0.05 | (0.23) | (0.18) | (0.97) | (0.95) | (1.92) | 11.16 | (2.09) | 42,390 | 1.16 | 1.17 | 0.39 | 92 |
| Year ended 10/31/17 | 10.50 | 0.07 | 2.76 | 2.83 | — | (0.07) | (0.07) | 13.26 | 27.07 | 47,232 | 1.22 | 1.25 | 0.62 | 95 |
| Year ended 10/31/16 | 11.56 | 0.09(e) | (0.51) | (0.42) | (0.58) | (0.06) | (0.64) | 10.50 | (3.83) | 46,305 | 1.60 | 1.71 | 0.83(e) | 102 |
| Year ended 10/31/15 | 11.02 | 0.04 | 0.50 | 0.54 | — | (0.00) | (0.00) | 11.56 | 4.93 | 609 | 1.60 | 2.38 | 0.36 | 89 |
| Year ended 10/31/14(f) | 10.00 | 0.00 | 1.02 | 1.02 | — | — | — | 11.02 | 10.20 | 562 | 1.60(g) | 2.69(g) | 0.00(g) | 102 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $11,889, $2,671, $206, $14,600, $28 and $41,253 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | Net investment income per share and the ratio of net investment income to average net assets include 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 are $(0.00) and (0.00)%, $(0.08) and (0.75)%, $(0.02) and (0.25)%, $0.03 and 0.25%, $0.03 and 0.25% and $0.03 and 0.25% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (f) | Commencement date of December 19, 2013. |
| (g) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 15 | Invesco Long/Short Equity Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Long/Short Equity 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 long-term 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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends,
| 16 | Invesco Long/Short Equity Fund |
bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from |
| 17 | Invesco Long/Short Equity Fund |
| | 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.
| J. | 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 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 NAV 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.
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 equity 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 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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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. | 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.80% |
| Next $250 million | 0.77% |
| Next $500 million | 0.75% |
| Next $1.5 billion | 0.72% |
| Next $2.5 billion | 0.70% |
| Next $2.5 billion | 0.67% |
| Next $2.5 billion | 0.65% |
| Over $10 billion | 0.62% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.80%.
| 18 | Invesco Long/Short Equity Fund |
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco 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 29, 2020, 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 1.59%, 2.34%, 1.84%, 1.34%, 1.34% and 1.34%, 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. Unless Invesco continues the fee waiver agreement, it will terminate on February 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $3,220 and reimbursed class level expenses of $2,271, $510, $39, $2,789, $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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $1,396 in front-end sales commissions from the sale of Class A shares and $0 and $637 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
| 19 | Invesco Long/Short Equity Fund |
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $60,105,054 | $— | $— | $60,105,054 |
| Other Investments - Assets* | | | | |
| Swap Agreements | — | 968,918 | — | 968,918 |
| Other Investments - Liabilities* | | | | |
| Swap Agreements | — | (260,532) | — | (260,532) |
| Total Other Investments | — | 708,386 | — | 708,386 |
| Total Investments | $60,105,054 | $708,386 | $— | $60,813,440 |
| * | 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 April 30, 2019:
| | Value |
| Derivative Assets | Equity
Risk |
| Unrealized appreciation on swap agreements — OTC | $968,918 |
| Derivatives not subject to master netting agreements | - |
| Total Derivative Assets subject to master netting agreements | $968,918 |
| | Value |
| Derivative Liabilities | Equity
Risk |
| Unrealized depreciation on swap agreements — OTC | $(260,532) |
| Derivatives not subject to master netting agreements | - |
| Total Derivative Liabilities subject to master netting agreements | $(260,532) |
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 April 30, 2019.
| | Financial
Derivative
Assets | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount |
| Morgan Stanley & Co. LLC | $ 968,918 | $ (260,532) | $ 708,386 | $– | $– | $ 708,386 |
| 20 | Invesco Long/Short Equity Fund |
Effect of Derivative Investments for the six months ended April 30, 2019
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 |
| | Equity
Risk |
| Realized Gain (Loss): | |
| Swap agreements | $(12,198,029) |
| Change in Net Unrealized Appreciation: | |
| Swap agreements | 1,294,312 |
| Total | $(10,903,717) |
The table below summarizes the average notional value of derivatives held during the period.
| | Swap
Agreements |
| Average notional value | $139,754,934 |
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. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
NOTE 6—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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $192.
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $26,839,645 and $43,185,058, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $8,164,898 |
| Aggregate unrealized (depreciation) of investments | (1,618,503) |
| Net unrealized appreciation of investments | $6,546,395 |
Cost of investments for tax purposes is $54,267,045.
| 21 | Invesco Long/Short Equity Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 83,390 | $786,484 | | 863,426 | $10,478,814 |
| Class C | 9,612 | 88,445 | | 225,972 | 2,674,620 |
| Class R | 3,986 | 36,655 | | 10,110 | 120,120 |
| Class Y | 377,618 | 3,617,875 | | 1,705,351 | 20,464,440 |
| Class R5 | 44 | 420 | | 194 | 2,364 |
| Class R6 | 696,906 | 6,477,222 | | 343,585 | 3,990,803 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 114,693 | 1,059,760 | | 145,295 | 1,699,951 |
| Class C | 32,792 | 293,818 | | 32,792 | 375,798 |
| Class R | 1,940 | 17,752 | | 1,483 | 17,226 |
| Class Y | 135,852 | 1,267,502 | | 66,645 | 784,426 |
| Class R5 | 297 | 2,768 | | 450 | 5,291 |
| Class R6 | 383,648 | 3,583,271 | | 565,588 | 6,656,972 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 44,211 | 407,070 | | - | - |
| Class C | (45,598) | (407,070) | | - | - |
| Reacquired: | | | | | |
| Class A | (786,394) | (7,220,500) | | (474,277) | (5,613,359) |
| Class C | (126,849) | (1,120,720) | | (133,865) | (1,516,428) |
| Class R | (873) | (7,690) | | (2,410) | (28,086) |
| Class Y | (1,123,616) | (10,663,561) | | (957,042) | (11,388,258) |
| Class R5 | (3,345) | (30,904) | | (366) | (4,226) |
| Class R6 | (3,633) | (33,467) | | (670,861) | (8,340,020) |
| Net increase (decrease) in share activity | (205,319) | $(1,844,870) | | 1,722,070 | $20,380,448 |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 16% 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, 68% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| 22 | Invesco Long/Short Equity Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $886.60 | $7.39 | $1,016.96 | $7.90 | 1.58% |
| Class C | 1,000.00 | 883.40 | 10.88 | 1,013.24 | 11.63 | 2.33 |
| Class R | 1,000.00 | 885.50 | 8.56 | 1,015.72 | 9.15 | 1.83 |
| Class Y | 1,000.00 | 887.60 | 6.22 | 1,018.20 | 6.66 | 1.33 |
| Class R5 | 1,000.00 | 887.80 | 5.76 | 1,018.70 | 6.16 | 1.23 |
| Class R6 | 1,000.00 | 888.80 | 5.29 | 1,019.19 | 5.66 | 1.13 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 23 | Invesco Long/Short Equity Fund |
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | LSE-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Low Volatility Emerging Markets Fund
Nasdaq:
A: LVLAX ■ C: LVLCX ■ R: LVLRX ■ Y: LVLYX ■ R5: LVLFX ■ R6: LVLSX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 6.31% |
| Class C Shares | 5.91 |
| Class R Shares | 6.27 |
| Class Y Shares | 6.55 |
| Class R5 Shares | 6.55 |
| Class R6 Shares | 6.56 |
| MSCI All Country World Index▼ (Broad Market Index) | 9.37 |
| MSCI Emerging Markets Index▼ (Style-Specific Index) | 13.76 |
Lipper Emerging Market Funds Index■
(Peer Group Index) | 14.61 |
| Source(s):▼RIMES Technologies Corp.;■ Lipper Inc. |
TheMSCI All Country World Index is an unmanaged index considered representative of large- and mid-cap stocks across developed and emerging markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheMSCI Emerging Markets Index is an unmanaged index considered representative of stocks of developing countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheLipper Emerging Market Funds Index is an unmanaged index considered representative of emerging market funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Low Volatility Emerging Markets Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/17/13) | –1.37% |
| 5 Years | –2.14 |
| 1 Year | –17.65 |
| Class C Shares | |
| Inception (12/17/13) | –1.08% |
| 5 Years | –1.78 |
| 1 Year | –14.32 |
| Class R Shares | |
| Inception (12/17/13) | –0.56% |
| 5 Years | –1.26 |
| 1 Year | –13.17 |
| Class Y Shares | |
| Inception (12/17/13) | –0.07% |
| 5 Years | –0.78 |
| 1 Year | –12.66 |
| Class R5 Shares | |
| Inception (12/17/13) | –0.07% |
| 5 Years | –0.80 |
| 1 Year | –12.66 |
| Class R6 Shares | |
| Inception (12/17/13) | –0.09% |
| 5 Years | –0.80 |
| 1 Year | –12.68 |
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.33%, 2.08%, 1.58%, 1.08%, 1.08% and 1.08%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 2.25%, 3.00%, 2.50%, 2.00%, 1.77% and 1.77%, respectively. The expense ratios presented above may vary from the ex-
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/17/13) | –1.36% |
| 5 Years | –1.78 |
| 1 Year | –18.59 |
| Class C Shares | |
| Inception (12/17/13) | –1.07% |
| 5 Years | –1.45 |
| 1 Year | –15.27 |
| Class R Shares | |
| Inception (12/17/13) | –0.57% |
| 5 Years | –0.94 |
| 1 Year | –14.16 |
| Class Y Shares | |
| Inception (12/17/13) | –0.07% |
| 5 Years | –0.45 |
| 1 Year | –13.76 |
| Class R5 Shares | |
| Inception (12/17/13) | –0.07% |
| 5 Years | –0.45 |
| 1 Year | –13.76 |
| Class R6 Shares | |
| Inception (12/17/13) | –0.09% |
| 5 Years | –0.47 |
| 1 Year | –13.78 |
pense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 3 | Invesco Low Volatility Emerging Markets Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Low Volatility Emerging Markets Fund |
Schedule of Investments
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–95.93% |
| Brazil–6.87% |
| EcoRodovias Infraestrutura e Logistica S.A. | 156,900 | $324,516 |
| ENGIE Brasil Energia S.A. | 44,100 | 500,372 |
| Mahle-Metal Leve S.A. | 49,800 | 305,701 |
| SLC Agricola S.A. | 34,600 | 362,669 |
| Transmissora Alianca de Energia Eletrica S.A.(a) | 71,700 | 479,999 |
| Tupy S.A. | 69,100 | 308,396 |
| | | | 2,281,653 |
| Chile–0.82% |
| CAP S.A. | 14,010 | 160,061 |
| Cia Cervecerias Unidas S.A., ADR | 4,086 | 112,528 |
| | | | 272,589 |
| China–18.61% |
| Anhui Conch Cement Co. Ltd., Class A | 68,300 | 405,027 |
| Autohome, Inc., ADR(b) | 4,775 | 551,465 |
| China Lilang Ltd. | 118,000 | 123,042 |
| China Mobile Ltd. | 41,500 | 395,437 |
| China Railway Construction Corp. Ltd., Class A | 272,462 | 438,411 |
| China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A | 104,800 | 458,912 |
| China Telecom Corp. Ltd., Class H | 804,000 | 416,799 |
| Chlitina Holding Ltd. | 20,000 | 163,749 |
| Chongqing Rural Commercial Bank Co., Ltd., Class H | 483,000 | 281,575 |
| Daqin Railway Co. Ltd., Class A | 359,200 | 454,279 |
| Henan Shuanghui Investment & Development Co., Ltd., Class A | 109,300 | 451,523 |
| Jiangsu Expressway Co. Ltd., Class H | 134,000 | 190,628 |
| Maanshan Iron & Steel Co. Ltd. | 769,600 | 395,826 |
| Sany Heavy Industry Co. Ltd., Class A | 249,500 | 450,773 |
| Sinopec Shanghai Petrochemical Co., Ltd., Class A | 600,500 | 457,274 |
| Weichai Power Co., Ltd., Class A | 221,400 | 403,212 |
| Yantai Changyu Pioneer Wine Co. Ltd., Class B | 64,900 | 139,731 |
| | | | 6,177,663 |
| Hong Kong–0.30% |
| Kingboard Laminates Holdings Ltd. | 96,000 | 100,871 |
| India–8.85% |
| Bajaj Auto Ltd. | 4,612 | 197,871 |
| Bharti Infratel Ltd. | 103,942 | 392,358 |
| Colgate-Palmolive (India) Ltd. | 23,884 | 415,499 |
| Hero MotoCorp Ltd. | 10,660 | 384,973 |
| KEC International Ltd. | 13,458 | 55,455 |
| | Shares | Value |
| India–(continued) |
| NHPC Ltd. | 660,346 | $222,073 |
| NMDC Ltd. | 322,937 | 466,388 |
| Power Finance Corp. Ltd. | 265,111 | 440,621 |
| Sanofi India Ltd. | 1,052 | 84,867 |
| Sun TV Network Ltd. | 33,520 | 277,271 |
| | | | 2,937,376 |
| Indonesia–2.65% |
| PT Bukit Asam Tbk | 1,638,800 | 454,904 |
| PT United Tractors Tbk | 221,900 | 423,167 |
| | | | 878,071 |
| Malaysia–4.85% |
| AirAsia Group Bhd. | 512,700 | 338,535 |
| British American Tobacco Malaysia Bhd. | 15,400 | 129,845 |
| Carlsberg Brewery Malaysia Bhd., Class B | 19,600 | 119,747 |
| Petronas Chemicals Group Bhd. | 203,800 | 443,633 |
| Petronas Dagangan Bhd. | 31,300 | 183,053 |
| PPB Group Bhd. | 54,360 | 246,655 |
| Supermax Corp. Bhd. | 409,200 | 149,448 |
| | | | 1,610,916 |
| Mexico–7.00% |
| Alfa, S.A.B. de C.V., Class A | 388,400 | 392,544 |
| Coca-Cola FEMSA, S.A.B. de C.V., Series L | 60,300 | 383,536 |
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | 73,900 | 455,303 |
| Grupo Comercial Chedraui, S.A. de C.V. | 49,900 | 98,601 |
| Megacable Holdings S.A.B. de C.V., Series CPO(c) | 99,700 | 439,184 |
| Wal-Mart de Mexico S.A.B. de C.V., Series V | 188,500 | 553,933 |
| | | | 2,323,101 |
| Pakistan–0.86% |
| Engro Fertilizers Ltd. | 379,000 | 186,228 |
| Fauji Fertilizer Co. Ltd. | 133,500 | 98,174 |
| | | | 284,402 |
| Poland–1.68% |
| Play Communications S.A., REGS(d) | 21,548 | 133,021 |
| Powszechny Zaklad Ubezpieczen S.A. | 38,657 | 424,863 |
| | | | 557,884 |
| Russia–7.12% |
| Alrosa PJSC | 294,500 | 429,204 |
| LUKOIL PJSC, ADR | 5,886 | 500,813 |
| MMC Norilsk Nickel PJSC, ADR | 16,954 | 379,854 |
| Rosseti PJSC | 26,940,000 | 445,426 |
| Tatneft PJSC, ADR | 6,879 | 484,626 |
| Unipro PJSC | 3,070,000 | 123,881 |
| | | | 2,363,804 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Low Volatility Emerging Markets Fund |
| | Shares | Value |
| South Africa–5.52% |
| Absa Group Ltd. | 34,876 | $400,470 |
| African Rainbow Minerals Ltd. | 16,870 | 201,330 |
| Astral Foods Ltd. | 31,170 | 396,570 |
| Kumba Iron Ore Ltd. | 13,026 | 390,325 |
| Reunert Ltd. | 54,452 | 295,042 |
| Tsogo Sun Holdings Ltd. | 98,915 | 148,805 |
| | | | 1,832,542 |
| South Korea–13.62% |
| Binggrae Co. Ltd. | 2,987 | 188,709 |
| Chong Kun Dang Pharmaceutical Corp. | 4,665 | 407,336 |
| Daeduck Electronics Co., Ltd. | 9,172 | 83,228 |
| Daewon Pharmaceutical Co., Ltd. | 8,627 | 130,349 |
| Dong-A ST Co., Ltd. | 1,679 | 146,606 |
| Grand Korea Leisure Co., Ltd. | 19,374 | 385,606 |
| Korea United Pharm., Inc. | 8,850 | 199,405 |
| KT&G Corp. | 4,566 | 398,692 |
| Kwang Dong Pharmaceutical Co., Ltd. | 14,396 | 90,703 |
| LG Uplus Corp. | 37,081 | 453,930 |
| Lotte Food Co., Ltd. | 426 | 229,748 |
| Partron Co. Ltd. | 17,903 | 212,264 |
| Samjin Pharmaceutical Co., Ltd. | 10,328 | 345,254 |
| Seoul Semiconductor Co. Ltd. | 22,567 | 369,951 |
| SFA Engineering Corp. | 8,354 | 300,005 |
| SK Telecom Co., Ltd. | 1,935 | 409,975 |
| SL Corp. | 8,141 | 169,350 |
| | | | 4,521,111 |
| Taiwan–5.07% |
| Chipbond Technology Corp. | 209,000 | 473,448 |
| Eva Airways Corp. | 357,000 | 175,028 |
| Lite-On Technology Corp. | 59,000 | 83,151 |
| Makalot Industrial Co., Ltd. | 52,000 | 358,435 |
| | Shares | Value |
| Taiwan–(continued) |
| Radiant Opto-Electronics Corp. | 150,000 | $504,838 |
| Syncmold Enterprise Corp. | 31,500 | 88,992 |
| | | | 1,683,892 |
| Thailand–4.78% |
| Advanced Info Service PCL | 80,800 | 480,877 |
| Electricity Generating PCL, Foreign Shares | 55,800 | 517,363 |
| GFPT PCL | 165,482 | 80,344 |
| Major Cineplex Group PCL, Foreign Shares | 81,100 | 72,399 |
| Mega Lifesciences PCL | 74,800 | 84,348 |
| Ratch Group PCL, Foreign Shares | 133,300 | 259,919 |
| Thai Vegetable Oil PCL | 108,500 | 91,762 |
| | | | 1,587,012 |
| Turkey–3.89% |
| BIM Birlesik Magazalar A.S. | 26,973 | 375,422 |
| Soda Sanayii AS | 364,486 | 474,017 |
| Tekfen Holding A.S. | 98,591 | 440,538 |
| | | | 1,289,977 |
| United Arab Emirates–1.08% |
| Air Arabia PJSC(b) | 956,648 | 265,653 |
| Arabtec Holding PJSC | 164,964 | 92,965 |
| | | | 358,618 |
| United Kingdom–1.02% |
| Mondi Ltd. | 15,337 | 338,036 |
| United States–1.34% |
| JBS S.A. | 88,000 | 443,692 |
| TOTAL INVESTMENTS IN SECURITIES—95.93% (Cost $32,177,648) | 31,843,210 |
| OTHER ASSETS LESS LIABILITIES–4.07% | 1,349,878 |
| NET ASSETS–100.00% | $33,193,088 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| CPO | – Certificates of Ordinary Participation |
| REGS | – Regulation S |
Notes to Schedule of Investments:
| (a) | Each unit represents two preferred shares and one common share. |
| (b) | Non-income producing security. |
| (c) | Each CPO represents two Series A shares. |
| (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 value of this security at April 30, 2019 represented less than 1% of the Fund’s Net Assets. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Low Volatility Emerging Markets Fund |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Consumer Staples | 16.21% |
| Materials | 14.54 |
| Industrials | 14.39 |
| Communication Services | 12.12 |
| Utilities | 7.67 |
| Consumer Discretionary | 7.18 |
| Information Technology | 6.67 |
| Health Care | 6.31 |
| Energy | 6.17 |
| Financials | 4.67 |
| Other Assets Less Liabilities | 4.07 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Low Volatility Emerging Markets Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $32,177,648) | $31,843,210 |
| Other investments: | |
| Variation margin receivable — futures contracts | 72,160 |
| Foreign currencies, at value (Cost $2,754,865) | 2,719,452 |
| Receivable for: | |
| Fund shares sold | 596,678 |
| Dividends | 84,584 |
| Investment for trustee deferred compensation and retirement plans | 14,445 |
| Other assets | 39,761 |
| Total assets | 35,370,290 |
| Liabilities: | |
| Payable for: | |
| Investments purchased | 264,503 |
| Fund shares reacquired | 1,646,861 |
| Amount due custodian | 173,484 |
| Accrued foreign taxes | 16,238 |
| Accrued trustees’ and officers’ fees and benefits | 1,508 |
| Accrued other operating expenses | 60,163 |
| Trustee deferred compensation and retirement plans | 14,445 |
| Total liabilities | 2,177,202 |
| Net assets applicable to shares outstanding | $33,193,088 |
| Net assets consist of: | |
| Shares of beneficial interest | $35,542,527 |
| Distributable earnings | (2,349,439) |
| | $33,193,088 |
| Net Assets: |
| Class A | $1,701,116 |
| Class C | $84,903 |
| Class R | $29,006 |
| Class Y | $1,670,232 |
| Class R5 | $6,476 |
| Class R6 | $29,701,355 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 266,608 |
| Class C | 13,286 |
| Class R | 4,542 |
| Class Y | 262,793 |
| Class R5 | 1,019 |
| Class R6 | 4,679,777 |
| Class A: | |
| Net asset value per share | $6.38 |
Maximum offering price per share
(Net asset value of $6.38 ÷ 94.50%) | $6.75 |
| Class C: | |
| Net asset value and offering price per share | $6.39 |
| Class R: | |
| Net asset value and offering price per share | $6.39 |
| Class Y: | |
| Net asset value and offering price per share | $6.36 |
| Class R5: | |
| Net asset value and offering price per share | $6.36 |
| Class R6: | |
| Net asset value and offering price per share | $6.35 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Low Volatility Emerging Markets Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $70,798) | $650,183 |
| Dividends from affiliated money market funds | 76 |
| Total investment income | 650,259 |
| Expenses: | |
| Advisory fees | 160,235 |
| Administrative services fees | 9,961 |
| Custodian fees | 12,239 |
| Distribution fees: | |
| Class A | 2,399 |
| Class C | 592 |
| Class R | 71 |
| Transfer agent fees — A, C, R and Y | 5,781 |
| Transfer agent fees — R6 | 51 |
| Trustees’ and officers’ fees and benefits | 11,325 |
| Registration and filing fees | 39,696 |
| Reports to shareholders | 6,273 |
| Professional services fees | 31,979 |
| Other | 12,502 |
| Total expenses | 293,104 |
| Less: Fees waived and expenses reimbursed | (105,175) |
| Net expenses | 187,929 |
| Net investment income | 462,330 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities (net of foreign taxes of $4,984) | (2,057,882) |
| Foreign currencies | (29,692) |
| Futures contracts | 5,092 |
| | (2,082,482) |
| Change in net unrealized appreciation of: | |
| Investment securities (net of foreign taxes of $6,351) | 3,697,004 |
| Foreign currencies | 1,290 |
| Futures contracts | 56,295 |
| | 3,754,589 |
| Net realized and unrealized gain | 1,672,107 |
| Net increase in net assets resulting from operations | $2,134,437 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Low Volatility Emerging Markets Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $462,330 | $1,036,986 |
| Net realized gain (loss) | (2,082,482) | 4,163,617 |
| Change in net unrealized appreciation (depreciation) | 3,754,589 | (10,809,855) |
| Net increase (decrease) in net assets resulting from operations | 2,134,437 | (5,609,252) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (285,380) | (1,058,236) |
| Class C | (16,379) | (47,838) |
| Class R | (4,240) | (3,419) |
| Class Y | (267,768) | (287,090) |
| Class R5 | (1,151) | (1,463) |
| Class R6 | (4,826,089) | (5,381,200) |
| Total distributions to shareholders from distributable earnings | (5,401,007) | (6,779,246) |
| Share transactions–net: | | |
| Class A | (200,059) | (3,943,333) |
| Class C | (109,124) | (31,555) |
| Class R | 3,190 | 14,391 |
| Class Y | 124,901 | 486,772 |
| Class R6 | 2,055,015 | 4,260,549 |
| Net increase in net assets resulting from share transactions | 1,873,923 | 786,824 |
| Net increase (decrease) in net assets | (1,392,647) | (11,601,674) |
| Net assets: | | |
| Beginning of period | 34,585,735 | 46,187,409 |
| End of period | $33,193,088 | $34,585,735 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Low Volatility Emerging Markets Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $7.08 | $0.08 | $0.31 | $0.39 | $(0.17) | $(0.92) | $(1.09) | $6.38 | 6.31% | $1,701 | 1.32%(d) | 2.21%(d) | 2.47%(d) | 40% |
| Year ended 10/31/18 | 9.72 | 0.19 | (1.42) | (1.23) | (0.19) | (1.22) | (1.41) | 7.08 | (14.82) | 2,063 | 1.33 | 2.25 | 2.22 | 61 |
| Year ended 10/31/17 | 8.64 | 0.17 | 1.32 | 1.49 | (0.10) | (0.31) | (0.41) | 9.72 | 18.29 | 7,471 | 1.39 | 2.09 | 1.89 | 54 |
| Year ended 10/31/16 | 8.08 | 0.17 | 0.46 | 0.63 | (0.07) | — | (0.07) | 8.64 | 7.98 | 3,617 | 1.72 | 2.27 | 2.08 | 63 |
| Year ended 10/31/15 | 10.32 | 0.14 | (1.91) | (1.77) | (0.35) | (0.12) | (0.47) | 8.08 | (17.67) | 1,531 | 1.72 | 7.99 | 1.52 | 105 |
| Year ended 10/31/14(e) | 10.00 | 0.15 | 0.17 | 0.32 | — | — | — | 10.32 | 3.20 | 1,705 | 1.71(f) | 10.36(f) | 1.69(f) | 38 |
| Class C |
| Six months ended 04/30/19 | 7.01 | 0.05 | 0.31 | 0.36 | (0.06) | (0.92) | (0.98) | 6.39 | 5.91 | 85 | 2.07(d) | 2.96(d) | 1.72(d) | 40 |
| Year ended 10/31/18 | 9.65 | 0.12 | (1.40) | (1.28) | (0.14) | (1.22) | (1.36) | 7.01 | (15.49) | 203 | 2.08 | 3.00 | 1.47 | 61 |
| Year ended 10/31/17 | 8.55 | 0.10 | 1.32 | 1.42 | (0.01) | (0.31) | (0.32) | 9.65 | 17.38 | 323 | 2.14 | 2.84 | 1.14 | 54 |
| Year ended 10/31/16 | 8.00 | 0.11 | 0.45 | 0.56 | (0.01) | — | (0.01) | 8.55 | 7.08 | 250 | 2.47 | 3.02 | 1.33 | 63 |
| Year ended 10/31/15 | 10.26 | 0.07 | (1.90) | (1.83) | (0.31) | (0.12) | (0.43) | 8.00 | (18.29) | 41 | 2.47 | 8.74 | 0.77 | 105 |
| Year ended 10/31/14(e) | 10.00 | 0.09 | 0.17 | 0.26 | — | — | — | 10.26 | 2.60 | 57 | 2.46(f) | 11.11(f) | 0.94(f) | 38 |
| Class R |
| Six months ended 04/30/19 | 7.06 | 0.07 | 0.32 | 0.39 | (0.14) | (0.92) | (1.06) | 6.39 | 6.27 | 29 | 1.57(d) | 2.46(d) | 2.22(d) | 40 |
| Year ended 10/31/18 | 9.70 | 0.16 | (1.41) | (1.25) | (0.17) | (1.22) | (1.39) | 7.06 | (15.05) | 28 | 1.58 | 2.50 | 1.97 | 61 |
| Year ended 10/31/17 | 8.62 | 0.14 | 1.32 | 1.46 | (0.07) | (0.31) | (0.38) | 9.70 | 17.91 | 23 | 1.64 | 2.34 | 1.64 | 54 |
| Year ended 10/31/16 | 8.06 | 0.15 | 0.46 | 0.61 | (0.05) | — | (0.05) | 8.62 | 7.68 | 26 | 1.97 | 2.52 | 1.83 | 63 |
| Year ended 10/31/15 | 10.30 | 0.12 | (1.90) | (1.78) | (0.34) | (0.12) | (0.46) | 8.06 | (17.81) | 23 | 1.97 | 8.24 | 1.27 | 105 |
| Year ended 10/31/14(e) | 10.00 | 0.13 | 0.17 | 0.30 | — | — | — | 10.30 | 3.00 | 14 | 1.96(f) | 10.61(f) | 1.44(f) | 38 |
| Class Y |
| Six months ended 04/30/19 | 7.09 | 0.09 | 0.31 | 0.40 | (0.21) | (0.92) | (1.13) | 6.36 | 6.55 | 1,670 | 1.07(d) | 1.96(d) | 2.72(d) | 40 |
| Year ended 10/31/18 | 9.74 | 0.21 | (1.42) | (1.21) | (0.22) | (1.22) | (1.44) | 7.09 | (14.66) | 1,705 | 1.08 | 2.00 | 2.47 | 61 |
| Year ended 10/31/17 | 8.66 | 0.19 | 1.32 | 1.51 | (0.12) | (0.31) | (0.43) | 9.74 | 18.51 | 1,823 | 1.14 | 1.84 | 2.14 | 54 |
| Year ended 10/31/16 | 8.10 | 0.19 | 0.46 | 0.65 | (0.09) | — | (0.09) | 8.66 | 8.25 | 1,987 | 1.47 | 2.02 | 2.33 | 63 |
| Year ended 10/31/15 | 10.35 | 0.16 | (1.92) | (1.76) | (0.37) | (0.12) | (0.49) | 8.10 | (17.50) | 1,337 | 1.47 | 7.74 | 1.77 | 105 |
| Year ended 10/31/14(e) | 10.00 | 0.18 | 0.17 | 0.35 | — | — | — | 10.35 | 3.50 | 1,411 | 1.46(f) | 10.11(f) | 1.94(f) | 38 |
| Class R5 |
| Six months ended 04/30/19 | 7.09 | 0.09 | 0.31 | 0.40 | (0.21) | (0.92) | (1.13) | 6.36 | 6.55 | 6 | 1.08(d) | 1.66(d) | 2.71(d) | 40 |
| Year ended 10/31/18 | 9.74 | 0.21 | (1.42) | (1.21) | (0.22) | (1.22) | (1.44) | 7.09 | (14.66) | 7 | 1.08 | 1.77 | 2.47 | 61 |
| Year ended 10/31/17 | 8.66 | 0.19 | 1.32 | 1.51 | (0.12) | (0.31) | (0.43) | 9.74 | 18.51 | 10 | 1.14 | 1.65 | 2.14 | 54 |
| Year ended 10/31/16 | 8.10 | 0.18 | 0.47 | 0.65 | (0.09) | — | (0.09) | 8.66 | 8.25 | 130 | 1.47 | 1.87 | 2.33 | 63 |
| Year ended 10/31/15 | 10.35 | 0.16 | (1.92) | (1.76) | (0.37) | (0.12) | (0.49) | 8.10 | (17.50) | 122 | 1.47 | 7.64 | 1.77 | 105 |
| Year ended 10/31/14(e) | 10.00 | 0.18 | 0.17 | 0.35 | — | — | — | 10.35 | 3.50 | 477 | 1.46(f) | 10.06(f) | 1.94(f) | 38 |
| Class R6 |
| Six months ended 04/30/19 | 7.08 | 0.09 | 0.31 | 0.40 | (0.21) | (0.92) | (1.13) | 6.35 | 6.56 | 29,701 | 1.08(d) | 1.66(d) | 2.71(d) | 40 |
| Year ended 10/31/18 | 9.74 | 0.21 | (1.43) | (1.22) | (0.22) | (1.22) | (1.44) | 7.08 | (14.76) | 30,578 | 1.08 | 1.77 | 2.47 | 61 |
| Year ended 10/31/17 | 8.65 | 0.19 | 1.33 | 1.52 | (0.12) | (0.31) | (0.43) | 9.74 | 18.65 | 36,536 | 1.14 | 1.65 | 2.14 | 54 |
| Year ended 10/31/16 | 8.10 | 0.19 | 0.45 | 0.64 | (0.09) | — | (0.09) | 8.65 | 8.12 | 36,970 | 1.47 | 1.87 | 2.33 | 63 |
| Year ended 10/31/15 | 10.35 | 0.16 | (1.92) | (1.76) | (0.37) | (0.12) | (0.49) | 8.10 | (17.50) | 122 | 1.47 | 7.64 | 1.77 | 105 |
| Year ended 10/31/14(e) | 10.00 | 0.18 | 0.17 | 0.35 | — | — | — | 10.35 | 3.50 | 155 | 1.46(f) | 10.06(f) | 1.94(f) | 38 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $1,935, $119, $29, $1,723, $7 and $30,747 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | Commencement date of December 17, 2013. |
| (f) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Low Volatility Emerging Markets Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Low Volatility Emerging 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 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 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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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
| 12 | Invesco Low Volatility Emerging Markets Fund |
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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, |
| 13 | Invesco Low Volatility Emerging Markets Fund |
| | 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
| L. | 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.935%.
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 29, 2020, 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
| 14 | Invesco Low Volatility Emerging Markets Fund |
Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.33%, 2.08%, 1.58%, 1.08%, 1.08% and 1.08%, 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. Unless Invesco continues the fee waiver agreement, it will terminate on February 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $99,342 and reimbursed class level expenses of $2,939, $182, $44, $2,617, $0 and $51 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $141 in front-end sales commissions from the sale of Class A shares and $0 and $1 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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.
| 15 | Invesco Low Volatility Emerging Markets Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Brazil | $2,281,653 | $— | $— | $2,281,653 |
| Chile | 272,589 | — | — | 272,589 |
| China | 4,229,478 | 1,948,185 | — | 6,177,663 |
| Hong Kong | — | 100,871 | — | 100,871 |
| India | 1,967,078 | 970,298 | — | 2,937,376 |
| Indonesia | 423,167 | 454,904 | — | 878,071 |
| Malaysia | 1,610,916 | — | — | 1,610,916 |
| Mexico | 2,323,101 | — | — | 2,323,101 |
| Pakistan | 284,402 | — | — | 284,402 |
| Poland | 424,863 | 133,021 | — | 557,884 |
| Russia | 1,862,991 | 500,813 | — | 2,363,804 |
| South Africa | 1,631,212 | 201,330 | — | 1,832,542 |
| South Korea | 4,321,706 | 199,405 | — | 4,521,111 |
| Taiwan | 1,683,892 | — | — | 1,683,892 |
| Thailand | 1,587,012 | — | — | 1,587,012 |
| Turkey | 849,439 | 440,538 | — | 1,289,977 |
| United Arab Emirates | 358,618 | — | — | 358,618 |
| United Kingdom | 338,036 | — | — | 338,036 |
| United States | 443,692 | — | — | 443,692 |
| Total Investments | $26,893,845 | $4,949,365 | $— | $31,843,210 |
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.
Effect of Derivative Investments for the six months ended April 30, 2019
The table below summarizes the gains on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain on
Statement of Operations |
| | Equity
Risk |
| Realized Gain: | |
| Futures contracts | $5,092 |
| Change in Net Unrealized Appreciation: | |
| Futures contracts | 56,295 |
| Total | $61,387 |
The table below summarizes the four month average notional value of derivatives held during the period.
| | Futures
Contracts |
| Average notional value | $584,906 |
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. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
| 16 | Invesco Low Volatility Emerging Markets 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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $13,240,900 and $15,452,198, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $2,594,175 |
| Aggregate unrealized (depreciation) of investments | (2,977,613) |
| Net unrealized appreciation (depreciation) of investments | $(383,438) |
Cost of investments for tax purposes is $32,226,648.
| 17 | Invesco Low Volatility Emerging Markets Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 63,793 | $405,340 | | 381,199 | $3,446,533 |
| Class C | 1,056 | 6,890 | | 8,334 | 74,056 |
| Class R | 228 | 1,456 | | 2,403 | 21,202 |
| Class Y | 28,155 | 187,743 | | 89,593 | 785,974 |
| Class R6 | 98,497 | 624,900 | | 528,440 | 4,239,883 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 46,405 | 280,288 | | 124,439 | 1,036,572 |
| Class C | 2,541 | 15,397 | | 5,593 | 46,480 |
| Class R | 527 | 3,186 | | 243 | 2,025 |
| Class Y | 44,018 | 264,544 | | 33,652 | 280,324 |
| Class R6 | 804,156 | 4,824,939 | | 646,603 | 5,379,736 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 4,298 | 26,946 | | - | - |
| Class C | (4,284) | (26,946) | | - | - |
| Reacquired: | | | | | |
| Class A | (139,449) | (912,633) | | (982,782) | (8,426,438) |
| Class C | (15,031) | (104,465) | | (18,419) | (152,091) |
| Class R | (229) | (1,452) | | (1,052) | (8,836) |
| Class Y | (49,951) | (327,386) | | (69,785) | (579,526) |
| Class R6 | (540,920) | (3,394,824) | | (610,020) | (5,359,070) |
| Net increase in share activity | 343,810 | $1,873,923 | | 138,441 | $786,824 |
| (a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 6% 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. |
| | In addition, 90% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| 18 | Invesco Low Volatility Emerging Markets Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,063.10 | $6.75 | $1,018.25 | $6.61 | 1.32% |
| Class C | 1,000.00 | 1,059.10 | 10.57 | 1,014.53 | 10.34 | 2.07 |
| Class R | 1,000.00 | 1,062.70 | 8.03 | 1,017.01 | 7.85 | 1.57 |
| Class Y | 1,000.00 | 1,065.50 | 5.48 | 1,019.49 | 5.36 | 1.07 |
| Class R5 | 1,000.00 | 1,065.50 | 5.53 | 1,019.44 | 5.41 | 1.08 |
| Class R6 | 1,000.00 | 1,065.60 | 5.53 | 1,019.44 | 5.41 | 1.08 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 19 | Invesco Low Volatility Emerging Markets Fund |
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | LVEM-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Macro Allocation Strategy Fund
Nasdaq:
A: GMSDX ■ C: GMSEX ■ R: GMSJX ■ Y: GMSHX ■ R5: GMSKX ■ R6: GMSLX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 10.17% |
| Class C Shares | 9.81 |
| Class R Shares | 10.03 |
| Class Y Shares | 10.37 |
| Class R5 Shares | 10.25 |
| Class R6 Shares | 10.38 |
| Bloomberg Barclays 3-Month Treasury Bellwether Index▼ (Broad Market/Style-Specific Index) | 1.19 |
Lipper Absolute Return Funds Index■
(Peer Group Index) | 2.78 |
| Source(s):▼FactSet Research Systems Inc.;■ Lipper Inc. |
TheBloomberg Barclays 3-Month Treasury Bellwether Indexmeasures the performance of treasury bills with maturities of less than three months.
TheLipper Absolute Return Funds Index is an unmanaged index considered representative of absolute return funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Macro Allocation Strategy Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception | 3.24% |
| 5 Years | 3.35 |
| 1 Year | –3.51 |
| Class C Shares | |
| Inception | 3.37% |
| 5 Years | 3.75 |
| 1 Year | 0.32 |
| Class R Shares | |
| Inception | 3.90% |
| 5 Years | 4.28 |
| 1 Year | 1.81 |
| Class Y Shares | |
| Inception (9/26/12) | 4.41% |
| 5 Years | 4.81 |
| 1 Year | 2.30 |
| Class R5 Shares | |
| Inception | 4.41% |
| 5 Years | 4.79 |
| 1 Year | 2.30 |
| Class R6 Shares | |
| Inception | 4.40% |
| 5 Years | 4.80 |
| 1 Year | 2.30 |
On August 28, 2013, Class H1 shares converted to Class Y shares.
Class A shares incepted on August 28, 2013. Performance shown prior to that date is that of Class H1 shares and includes the 12b-1 fees applicable to Class H1 shares.
Class C shares incepted on August 28, 2013. Performance shown prior to that date is that of Class H1 shares and includes the 12b-1 fees applicable to Class H1 shares.
Class R shares incepted on August 28, 2013. Performance shown prior to that date is that of Class H1 shares and includes the 12b-1 fees applicable to Class H1 shares.
Class R5 shares incepted on August 28, 2013. Performance shown prior to that date is that of Class H1 shares and includes the 12b-1 fees applicable to Class H1 shares.
Class R6 shares incepted on August 28, 2013. Performance shown prior to that date is that of Class H1 shares and includes the 12b-1 fees applicable to Class H1 shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception | 2.73% |
| 5 Years | 2.83 |
| 1 Year | –4.81 |
| Class C Shares | |
| Inception | 2.87% |
| 5 Years | 3.26 |
| 1 Year | –1.06 |
| Class R Shares | |
| Inception | 3.40% |
| 5 Years | 3.77 |
| 1 Year | 0.45 |
| Class Y Shares | |
| Inception (9/26/12) | 3.90% |
| 5 Years | 4.29 |
| 1 Year | 0.95 |
| Class R5 Shares | |
| Inception | 3.92% |
| 5 Years | 4.29 |
| 1 Year | 0.95 |
| Class R6 Shares | |
| Inception | 3.89% |
| 5 Years | 4.27 |
| 1 Year | 0.95 |
higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.47%, 2.22%, 1.72%, 1.22%, 1.22% and 1.22%, respectively.1,2,3 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 2.23%, 2.98%, 2.48%, 1.98%, 1.93% and 1.93%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based
on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 2 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | The expense ratio includes acquired fund fees and expenses of the underlying funds in which the Fund invests of 0.11%. |
| 3 | Invesco Macro Allocation Strategy Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Macro Allocation Strategy Fund |
Consolidated Schedule of Investments
April 30, 2019
(Unaudited)
| | Interest
Rate | Maturity
Date | Principal
Amount
(000) | Value |
| U.S. Treasury Securities–30.73% | | |
| U.S. Treasury Bills–12.40%(a)(b) |
| U.S. Treasury Bills | 2.42 - 2.43% | 05/07/2019 | | $ 2,830 | $ 2,828,873 |
| U.S. Treasury Bills | 2.41 - 2.42% | 06/04/2019 | | 2,910 | 2,903,478 |
| | | | | | 5,732,351 |
| U.S. Treasury Notes–18.33%(c) |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate) | 2.41% | 01/31/2020 | | 3,100 | 3,099,238 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.03%) | 2.45% | 04/30/2020 | | 2,380 | 2,379,772 |
| U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.04%) | 2.46% | 07/31/2020 | | 3,000 | 2,998,801 |
| | | | | | 8,477,811 |
| Total U.S. Treasury Securities (Cost $14,212,351) | 14,210,162 |
| | | | Shares | |
| Money Market Funds–68.74% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(d) | | | | 12,361,226 | 12,361,226 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(d) | | | | 5,593,962 | 5,595,641 |
| Invesco STIC (Global Series) PLC, U.S. Dollar Liquidity Portfolio (Ireland), Institutional Class, 2.51%(d) | | | | 4,877,727 | 4,877,727 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(d) | | | | 8,952,258 | 8,952,258 |
| Total Money Market Funds (Cost $31,786,120) | 31,786,852 |
| TOTAL INVESTMENTS IN SECURITIES–99.47% (Cost $45,998,471) | 45,997,014 |
| OTHER ASSETS LESS LIABILITIES–0.53% | 245,379 |
| NET ASSETS–100.00% | $46,242,393 |
Notes to Consolidated Schedule of Investments:
| (a) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L. |
| (b) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| (c) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2019. |
| (d) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Commodity Risk |
| Brent Crude | 10 | June-2019 | $714,500 | $33,770 | $33,770 |
| Cocoa | 30 | July-2019 | 707,700 | 11,821 | 11,821 |
| Gasoline Reformulated Blendstock Oxygenate Blending | 9 | May-2019 | 781,251 | 19,679 | 19,679 |
| Lean Hogs | 5 | December-2019 | 163,950 | 20,391 | 20,391 |
| LME Nickel | 4 | May-2019 | 291,540 | (35,832) | (35,832) |
| Low Sulphur Gas Oil | 8 | May-2019 | 510,400 | 17,726 | 17,726 |
| Subtotal | 67,555 | 67,555 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Macro Allocation Strategy 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 | 32 | June-2019 | $2,550,720 | $100,712 | $100,712 |
| E-Mini S&P 500 Index | 29 | June-2019 | 4,275,325 | 254,514 | 254,514 |
| EURO STOXX 50 Index | 152 | June-2019 | 5,885,083 | 330,993 | 330,993 |
| FTSE 100 Index | 56 | June-2019 | 5,382,965 | 202,064 | 202,064 |
| Hang Seng Index | 11 | May-2019 | 2,066,006 | 2,176 | 2,176 |
| Mini MSCI Emerging Markets Index | 38 | June-2019 | 2,052,380 | 34,754 | 34,754 |
| S&P/TSX 60 Index | 38 | June-2019 | 5,635,471 | 203,263 | 203,263 |
| Tokyo Stock Price Index | 28 | June-2019 | 4,059,428 | 26,351 | 26,351 |
| Subtotal | 1,154,827 | 1,154,827 |
| Interest Rate Risk |
| Australia 10 Year Bonds | 113 | June-2019 | 11,015,293 | 177,724 | 177,724 |
| Canada 10 Year Bonds | 51 | June-2019 | 5,260,267 | 72,845 | 72,845 |
| Long Gilt | 32 | June-2019 | 5,312,810 | (11,692) | (11,692) |
| U.S. Treasury Long Bonds | 17 | June-2019 | 2,506,969 | 10,940 | 10,940 |
| Subtotal | 249,817 | 249,817 |
| Subtotal—Long Futures Contracts | 1,472,199 | 1,472,199 |
| Short Futures Contracts | | | | | |
| Commodity Risk |
| Coffee "C" | 60 | July-2019 | (2,095,875) | 127,951 | 127,951 |
| Corn | 126 | July-2019 | (2,283,750) | 114,938 | 114,938 |
| Cotton No.2 | 13 | December-2019 | (491,985) | (10,796) | (10,796) |
| LME Nickel | 12 | May-2019 | (874,620) | 63,383 | 63,383 |
| Natural Gas | 51 | November-2019 | (1,480,020) | 47,963 | 47,963 |
| New York Harbor Ultra-Low Sulfur Diesel | 7 | May-2019 | (610,903) | (26,623) | (26,623) |
| Silver | 24 | July-2019 | (1,798,080) | 4,880 | 4,880 |
| Soybeans | 26 | July-2019 | (1,110,200) | 87,557 | 87,557 |
| Soybean Oil | 104 | December-2019 | (1,785,264) | 114,768 | 114,768 |
| Wheat | 56 | July-2019 | (1,200,500) | 89,757 | 89,757 |
| Subtotal—Short Futures Contracts | 613,778 | 613,778 |
| Total Futures Contracts | $2,085,977 | $2,085,977 |
| (a) | Futures contracts collateralized by $50,000 cash held with Goldman Sachs & Co. LLC, 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 | Pay | Barclays Soybean Meal S2 Nearby Excess Return Index | 0.30% | Monthly | 970 | September—2019 | $ | 869,041 | $2,291 | $40,317 | $38,026 |
| Goldman Sachs International | Pay | S&P GSCI Sugar Excess Return Index | 0.15 | Monthly | 40 | September—2019 | | 6,541 | — | 186 | 186 |
| Merrill Lynch International | Pay | MLCXLXAE Excess Return Index | 0.10 | Monthly | 1,850 | June—2019 | | 468,675 | — | 0 | 0 |
| Merrill Lynch International | Pay | Merrill Lynch Gold Excess Return Index | 0.01 | Monthly | 2,700 | July—2019 | | 425,571 | 735 | 735 | 0 |
| Morgan Stanley Capital Services LLC | Pay | S&P GSCI Aluminium Dynamic Roll Index Excess Return | 0.38 | Monthly | 27,050 | March—2020 | | 2,485,583 | (1,017) | 81,058 | 82,075 |
| Morgan Stanley Capital Services LLC | Pay | Morgan Stanley MSCY2KW0 Index | 0.05 | Monthly | 6,300 | January—2020 | | 1,061,810 | 455 | 71,625 | 71,170 |
| Subtotal — Appreciation | | | | | 2,464 | 193,921 | 191,457 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Macro Allocation 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) |
| Commodity Risk | | | | | | | | | | | |
| Barclays Bank PLC | Receive | Barclays Commodity Strategy 1452 Excess Return Index | 0.33% | Monthly | 1,200 | October—2019 | $ | 622,470 | $632 | $(5,288) | $(5,920) |
| Barclays Bank PLC | Receive | Barclays Live Cattle Roll Yield Excess Return Index | 0.47 | Monthly | 3,890 | January—2020 | | 516,953 | 54 | (30,746) | (30,800) |
| JPMorgan Chase Bank, N.A. | Pay | S&P GSCI Gold Index Excess Return | 0.08 | Monthly | 5,590 | June—2019 | | 558,662 | — | (3,542) | (3,542) |
| Subtotal — Depreciation | | | | | 686 | (39,576) | (40,262) |
| Total — Total Return Swap Agreements | | | | | $3,150 | $154,345 | $151,195 |
| (a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $30,000. |
| (b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| (c) | The table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
| Reference Entity Components |
| Reference Entity | Underlying Components | Percentage |
| Barclays Soybean Meal S2 Nearby Excess Return Index | | |
| | Long Futures Contracts | |
| | Soybean Meal | 100.00% |
| S&P GSCI Sugar Excess Return Index | | |
| | Long Futures Contracts | |
| | Sugar | 100.00% |
| Merrill Lynch Gold Excess Return Index | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
| MLCXLXAE Excess Return Index | | |
| | Long Futures Contracts | |
| | Zinc | 100.00% |
| S&P GSCI Aluminum Dynamic Roll Index Excess Return | | |
| | Long Futures Contracts | |
| | Aluminum | 100.00% |
| Morgan Stanley MSCY2KWO Index | | |
| | Long Futures Contracts | |
| | Wheat | 100.00% |
| Barclays Commodity Strategy 1452 Excess Return Index | | |
| | Long Futures Contracts | |
| | Copper | 100.00% |
| Barclays Live Cattle Roll Yield Excess Return Index | | |
| | Long Futures Contracts | |
| | Live Cattle | 100.00% |
| S&P GSCI Gold Index Excess Return | | |
| | Long Futures Contracts | |
| | Gold | 100.00% |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Macro Allocation Strategy Fund |
Target Risk Allocation and Notional Asset Weights
By asset class, based on Net Assets as of April 30, 2019
| Asset Class | Risk
Allocation* | % of Total
Net Assets** |
| Equities | 63.08% | 69.30% |
| Fixed Income | 15.90 | 52.46 |
| Commodities | 21.02 | (32.35) |
| Total | 100.00% | 89.41% |
| * | 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 Allocations. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. |
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
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $14,212,351) | $14,210,162 |
| Investments in affiliated money market funds, at value (Cost $31,786,120) | 31,786,852 |
| Other investments: | |
| Variation margin receivable — futures contracts | 7,809 |
| Unrealized appreciation on futures contracts | 63,383 |
| Swaps receivable — OTC | 5,558 |
| Unrealized appreciation on swap agreements — OTC | 191,457 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 50,000 |
| Cash collateral — OTC Derivatives | 30,000 |
| Premiums paid on swap agreements — OTC | 3,150 |
| Receivable for: | |
| Fund shares sold | 12,159 |
| Dividends | 59,152 |
| Interest | 575 |
| Investment for trustee deferred compensation and retirement plans | 21,934 |
| Other assets | 30,507 |
| Total assets | 46,472,698 |
| Liabilities: | |
| Other investments: | |
| Swaps payable — OTC | 735 |
| Unrealized depreciation on futures contracts | 35,832 |
| Unrealized depreciation on swap agreements—OTC | 40,262 |
| Payable for: | |
| Fund shares reacquired | 17,763 |
| Amount due custodian | 10,952 |
| Accrued fees to affiliates | 27,287 |
| Accrued trustees’ and officers’ fees and benefits | 1,549 |
| Accrued other operating expenses | 72,973 |
| Trustee deferred compensation and retirement plans | 22,952 |
| Total liabilities | 230,305 |
| Net assets applicable to shares outstanding | $46,242,393 |
| Net assets consist of: | |
| Shares of beneficial interest | $44,466,293 |
| Distributable earnings | 1,776,100 |
| | $46,242,393 |
| Net Assets: |
| Class A | $5,209,766 |
| Class C | $6,132,533 |
| Class R | $122,036 |
| Class Y | $34,247,258 |
| Class R5 | $9,282 |
| Class R6 | $521,518 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 537,433 |
| Class C | 641,401 |
| Class R | 12,619 |
| Class Y | 3,509,423 |
| Class R5 | 952 |
| Class R6 | 53,491 |
| Class A: | |
| Net asset value per share | $9.69 |
Maximum offering price per share
(Net asset value of $9.69 ÷ 94.50%) | $10.25 |
| Class C: | |
| Net asset value and offering price per share | $9.56 |
| Class R: | |
| Net asset value and offering price per share | $9.67 |
| Class Y: | |
| Net asset value and offering price per share | $9.76 |
| Class R5: | |
| Net asset value and offering price per share | $9.75 |
| Class R6: | |
| Net asset value and offering price per share | $9.75 |
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 six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends from affiliated money market funds | $319,009 |
| Interest | 166,432 |
| Total investment income | 485,441 |
| Expenses: | |
| Advisory fees | 230,275 |
| Administrative services fees | 10,343 |
| Custodian fees | 11,840 |
| Distribution fees: | |
| Class A | 6,228 |
| Class C | 29,849 |
| Class R | 264 |
| Transfer agent fees — A, C, R and Y | 24,345 |
| Transfer agent fees — R5 | 3 |
| Transfer agent fees — R6 | 152 |
| Trustees’ and officers’ fees and benefits | 11,417 |
| Registration and filing fees | 41,876 |
| Reports to shareholders | 11,819 |
| Professional services fees | 34,447 |
| Other | 9,927 |
| Total expenses | 422,785 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (152,016) |
| Net expenses | 270,769 |
| Net investment income | 214,672 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | 14,844 |
| Foreign currencies | 2,539 |
| Futures contracts | (426,121) |
| Swap agreements | 158,668 |
| | (250,070) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | (3,496) |
| Futures contracts | 4,076,595 |
| Swap agreements | 163,200 |
| | 4,236,299 |
| Net realized and unrealized gain | 3,986,229 |
| Net increase in net assets resulting from operations | $4,200,901 |
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 six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $214,672 | $149,595 |
| Net realized gain (loss) | (250,070) | 1,273,192 |
| Change in net unrealized appreciation (depreciation) | 4,236,299 | (3,340,172) |
| Net increase (decrease) in net assets resulting from operations | 4,200,901 | (1,917,385) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (8,941) | (212,490) |
| Class C | (2,712) | (323,365) |
| Class R | (132) | (2,400) |
| Class Y | (90,851) | (1,337,441) |
| Class R5 | (26) | (404) |
| Class R6 | (1,402) | (15,400) |
| Total distributions to shareholders from distributable earnings | (104,064) | (1,891,500) |
| Share transactions–net: | | |
| Class A | 230,899 | 250,653 |
| Class C | (590,725) | (598,785) |
| Class R | 11,299 | 54,645 |
| Class Y | 671,872 | 2,652,842 |
| Class R6 | 34,921 | 128,645 |
| Net increase in net assets resulting from share transactions | 358,266 | 2,488,000 |
| Net increase (decrease) in net assets | 4,455,103 | (1,320,885) |
| Net assets: | | |
| Beginning of period | 41,787,290 | 43,108,175 |
| End of period | $46,242,393 | $41,787,290 |
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
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $8.81 | $0.04 | $0.86 | $0.90 | $(0.02) | $— | $(0.02) | $9.69 | 10.17% | $5,210 | 1.37%(d) | 2.10%(d) | 0.95%(d) | 0% |
| Year ended 10/31/18 | 9.60 | 0.03 | (0.40) | (0.37) | — | (0.42) | (0.42) | 8.81 | (4.03) | 4,491 | 1.36 | 2.12 | 0.29 | 94 |
| Year ended 10/31/17 | 10.26 | (0.06) | 0.68 | 0.62 | (1.28) | — | (1.28) | 9.60 | 6.55 | 4,645 | 1.41 | 2.30 | (0.66) | 25 |
| Year ended 10/31/16 | 9.70 | (0.13) | 0.91 | 0.78 | (0.22) | — | (0.22) | 10.26 | 8.21 | 5,865 | 1.63 | 2.19 | (1.31) | 75 |
| Year ended 10/31/15 | 10.02 | (0.16) | 0.18 | 0.02 | (0.15) | (0.19) | (0.34) | 9.70 | 0.18 | 7,418 | 1.70(e) | 2.03(e) | (1.64)(e) | 0 |
| Year ended 10/31/14 | 10.78 | (0.17) | 0.09 | (0.08) | — | (0.68) | (0.68) | 10.02 | (0.64) | 6,996 | 1.73 | 2.06 | (1.68) | 0 |
| Class C |
| Six months ended 04/30/19 | 8.71 | 0.01 | 0.84 | 0.85 | (0.00) | — | (0.00) | 9.56 | 9.81 | 6,133 | 2.12(d) | 2.85(d) | 0.20(d) | 0 |
| Year ended 10/31/18 | 9.57 | (0.04) | (0.40) | (0.44) | — | (0.42) | (0.42) | 8.71 | (4.80) | 6,167 | 2.11 | 2.87 | (0.46) | 94 |
| Year ended 10/31/17 | 10.20 | (0.13) | 0.69 | 0.56 | (1.19) | — | (1.19) | 9.57 | 5.90 | 7,398 | 2.16 | 3.05 | (1.41) | 25 |
| Year ended 10/31/16 | 9.62 | (0.20) | 0.90 | 0.70 | (0.12) | — | (0.12) | 10.20 | 7.41 | 7,540 | 2.38 | 2.94 | (2.06) | 75 |
| Year ended 10/31/15 | 9.94 | (0.24) | 0.18 | (0.06) | (0.07) | (0.19) | (0.26) | 9.62 | (0.63) | 8,155 | 2.45(e) | 2.78(e) | (2.39)(e) | 0 |
| Year ended 10/31/14 | 10.78 | (0.24) | 0.08 | (0.16) | — | (0.68) | (0.68) | 9.94 | (1.42) | 12,136 | 2.48 | 2.81 | (2.43) | 0 |
| Class R |
| Six months ended 04/30/19 | 8.80 | 0.03 | 0.85 | 0.88 | (0.01) | — | (0.01) | 9.67 | 10.03 | 122 | 1.62(d) | 2.35(d) | 0.70(d) | 0 |
| Year ended 10/31/18 | 9.61 | 0.00 | (0.39) | (0.39) | — | (0.42) | (0.42) | 8.80 | (4.24) | 100 | 1.61 | 2.37 | 0.04 | 94 |
| Year ended 10/31/17 | 10.25 | (0.09) | 0.70 | 0.61 | (1.25) | — | (1.25) | 9.61 | 6.42 | 54 | 1.66 | 2.55 | (0.91) | 25 |
| Year ended 10/31/16 | 9.69 | (0.15) | 0.90 | 0.75 | (0.19) | — | (0.19) | 10.25 | 7.86 | 42 | 1.88 | 2.44 | (1.56) | 75 |
| Year ended 10/31/15 | 10.00 | (0.19) | 0.20 | 0.01 | (0.13) | (0.19) | (0.32) | 9.69 | 0.00 | 24 | 1.95(e) | 2.28(e) | (1.89)(e) | 0 |
| Year ended 10/31/14 | 10.78 | (0.19) | 0.09 | (0.10) | — | (0.68) | (0.68) | 10.00 | (0.83) | 24 | 1.98 | 2.31 | (1.93) | 0 |
| Class Y |
| Six months ended 04/30/19 | 8.87 | 0.05 | 0.87 | 0.92 | (0.03) | — | (0.03) | 9.76 | 10.37 | 34,247 | 1.12(d) | 1.85(d) | 1.20(d) | 0 |
| Year ended 10/31/18 | 9.64 | 0.05 | (0.40) | (0.35) | — | (0.42) | (0.42) | 8.87 | (3.80) | 30,581 | 1.11 | 1.87 | 0.54 | 94 |
| Year ended 10/31/17 | 10.29 | (0.04) | 0.70 | 0.66 | (1.31) | — | (1.31) | 9.64 | 6.93 | 30,657 | 1.16 | 2.05 | (0.41) | 25 |
| Year ended 10/31/16 | 9.73 | (0.10) | 0.91 | 0.81 | (0.25) | — | (0.25) | 10.29 | 8.51 | 38,019 | 1.38 | 1.94 | (1.06) | 75 |
| Year ended 10/31/15 | 10.05 | (0.14) | 0.19 | 0.05 | (0.18) | (0.19) | (0.37) | 9.73 | 0.44 | 47,740 | 1.45(e) | 1.78(e) | (1.39)(e) | 0 |
| Year ended 10/31/14 | 10.79 | (0.14) | 0.08 | (0.06) | — | (0.68) | (0.68) | 10.05 | (0.44) | 36,645 | 1.48 | 1.81 | (1.43) | 0 |
| Class R5 |
| Six months ended 04/30/19 | 8.88 | 0.06 | 0.84 | 0.90 | (0.03) | — | (0.03) | 9.75 | 10.13 | 9 | 1.12(d) | 1.79(d) | 1.20(d) | 0 |
| Year ended 10/31/18 | 9.65 | 0.05 | (0.40) | (0.35) | — | (0.42) | (0.42) | 8.88 | (3.79) | 8 | 1.11 | 1.82 | 0.54 | 94 |
| Year ended 10/31/17 | 10.30 | (0.04) | 0.70 | 0.66 | (1.31) | — | (1.31) | 9.65 | 6.93 | 9 | 1.15 | 1.97 | (0.40) | 25 |
| Year ended 10/31/16 | 9.74 | (0.10) | 0.91 | 0.81 | (0.25) | — | (0.25) | 10.30 | 8.50 | 10 | 1.38 | 1.83 | (1.06) | 75 |
| Year ended 10/31/15 | 10.06 | (0.14) | 0.19 | 0.05 | (0.18) | (0.19) | (0.37) | 9.74 | 0.44 | 9 | 1.45(e) | 1.65(e) | (1.39)(e) | 0 |
| Year ended 10/31/14 | 10.79 | (0.14) | 0.09 | (0.05) | — | (0.68) | (0.68) | 10.06 | (0.34) | 10 | 1.48 | 1.69 | (1.43) | 0 |
| Class R6 |
| Six months ended 04/30/19 | 8.86 | 0.06 | 0.86 | 0.92 | (0.03) | — | (0.03) | 9.75 | 10.38 | 522 | 1.12(d) | 1.79(d) | 1.20(d) | 0 |
| Year ended 10/31/18 | 9.63 | 0.05 | (0.40) | (0.35) | — | (0.42) | (0.42) | 8.86 | (3.80) | 440 | 1.11 | 1.82 | 0.54 | 94 |
| Year ended 10/31/17 | 10.29 | (0.04) | 0.69 | 0.65 | (1.31) | — | (1.31) | 9.63 | 6.83 | 345 | 1.15 | 1.97 | (0.40) | 25 |
| Year ended 10/31/16 | 9.73 | (0.10) | 0.91 | 0.81 | (0.25) | — | (0.25) | 10.29 | 8.51 | 234 | 1.38 | 1.83 | (1.06) | 75 |
| Year ended 10/31/15 | 10.05 | (0.14) | 0.19 | 0.05 | (0.18) | (0.19) | (0.37) | 9.73 | 0.44 | 100,759 | 1.45(e) | 1.65(e) | (1.39)(e) | 0 |
| Year ended 10/31/14 | 10.80 | (0.14) | 0.07 | (0.07) | — | (0.68) | (0.68) | 10.05 | (0.53) | 112,019 | 1.48 | 1.69 | (1.43) | 0 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $5,024, $6,019, $106, $30,584, $9 and $473 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Because the underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. Estimated underlying fund expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the funds the Fund invests in. The effect of the estimated underlying fund expenses that the Fund bears indirectly is included in the Fund’s total return. Estimated acquired fund fees from underlying funds were 0.11% |
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
April 30, 2019
(Unaudited)
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. 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 Invesco Cayman Commodity Fund V Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. 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 ten 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 tenth 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 consolidated financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
| 13 | Invesco Macro Allocation Strategy Fund |
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. 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 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 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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the 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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The 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 |
| 14 | Invesco Macro Allocation Strategy Fund |
| | 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. | Structured Securities — The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument. |
Structured securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference instruments. In addition to the credit risk of structured securities and the normal risks of price changes in response to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the value of the underlying reference instruments. Changes in the daily value of structured securities are recorded as unrealized gains (losses) in the Consolidated Statement of Operations. When the structured securities mature or are sold, the Fund recognizes a realized gain (loss) 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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. | 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made 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 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. 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 |
| 15 | Invesco Macro Allocation Strategy Fund |
| | 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. |
| 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 NAV 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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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. | Other Risks – 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 commodities, 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. |
| 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 1.10% |
| Next $250 million | 1.08% |
| Next $500 million | 1.05% |
| Next $1.5 billion | 1.03% |
| Next $2.5 billion | 1.00% |
| Next $2.5 billion | 0.98% |
| Next $2.5 billion | 0.95% |
| Over $10 billion | 0.93% |
For the six months ended April 30, 2019, the effective advisory fees 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
| 16 | Invesco Macro Allocation Strategy Fund |
Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC, formerly Invesco PowerShares 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 29, 2020, 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 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 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $127,516 and reimbursed class level expenses of $2,920, $3,498, $62, $17,776, $3 and $152 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Consolidated Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, 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 April 30, 2019, IDI advised the Fund that IDI retained $249 in front-end sales commissions from the sale of Class A shares and $162 from Class C shares 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
| 17 | Invesco Macro Allocation Strategy Fund |
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $— | $14,210,162 | $— | $14,210,162 |
| Money Market Funds | 31,786,852 | — | — | 31,786,852 |
| Total Investments in Securities | 31,786,852 | 14,210,162 | — | 45,997,014 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 2,170,920 | — | — | 2,170,920 |
| Swap Agreements | — | 191,457 | — | 191,457 |
| | 2,170,920 | 191,457 | — | 2,362,377 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (84,943) | — | — | (84,943) |
| Swap Agreements | — | (40,262) | — | (40,262) |
| | (84,943) | (40,262) | — | (125,205) |
| Total Other Investments | 2,085,977 | 151,195 | — | 2,237,172 |
| Total Investments | $33,872,829 | $14,361,357 | $— | $48,234,186 |
| * | 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 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 April 30, 2019:
| | Value |
| Derivative Assets | Commodity
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized appreciation on futures contracts — Exchange-Traded(a) | $754,584 | $1,154,827 | $261,509 | $2,170,920 |
| Unrealized appreciation on swap agreements — OTC | 191,457 | - | - | 191,457 |
| Total Derivative Assets | 946,041 | 1,154,827 | 261,509 | 2,362,377 |
| Derivatives not subject to master netting agreements | (754,584) | (1,154,827) | (261,509) | (2,170,920) |
| Total Derivative Assets subject to master netting agreements | $191,457 | $- | $- | $191,457 |
| | Value |
| Derivative Liabilities | Commodity
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts — Exchange-Traded(a) | $(73,251) | $- | $(11,692) | $(84,943) |
| Unrealized depreciation on swap agreements — OTC | (40,262) | - | - | (40,262) |
| Total Derivative Liabilities | (113,513) | - | (11,692) | (125,205) |
| Derivatives not subject to master netting agreements | 73,251 | - | 11,692 | 84,943 |
| Total Derivative Liabilities subject to master netting agreements | $(40,262) | $- | $- | $(40,262) |
| (a) | The daily variation margin receivable at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
| 18 | Invesco Macro Allocation Strategy 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 April 30, 2019.
| | Financial
Derivative
Assets | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | | | | | |
| Counterparty | Swap
Agreements | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount(a) | | | | |
| Barclays Bank PLC | $41,003 | $(36,720) | $4,283 | $– | $– | $4,283 | | | | |
| Goldman Sachs International | 186 | – | 186 | – | – | 186 | | | | |
| JPMorgan Chase Bank, N.A. | – | (3,542) | (3,542) | – | 3,542 | – | | | | |
| Merrill Lynch International | 735 | – | 735 | – | – | 735 | | | | |
| Morgan Stanley Capital Services LLC | 153,700 | (1,017) | 152,683 | – | – | 152,683 | | | | |
| Total | $195,624 | $(41,279) | $154,345 | $– | $3,542 | $157,887 | | | | |
| (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 six months ended April 30, 2019
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 | $(608,100) | $(1,182,558) | $1,364,537 | $(426,121) |
| Swap agreements | 158,668 | - | - | 158,668 |
| Change in Net Unrealized Appreciation: | | | | |
| Futures contracts | 1,116,448 | 2,641,829 | 318,318 | 4,076,595 |
| Swap agreements | 163,200 | - | - | 163,200 |
| Total | $830,216 | $1,459,271 | $1,682,855 | $3,972,342 |
The table below summarizes the average notional value of derivatives held during the period.
| | Futures
Contracts | Swap
Agreements |
| Average notional value | $60,112,868 | $5,989,831 |
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—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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $89.
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 captionAmount 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.
| 19 | Invesco Macro Allocation Strategy Fund |
NOTE 8—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $910,157 | $836,160 | $1,746,317 |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
There were no securities purchased or sold by the Fund during the six months ended April 30, 2019. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $3,763,688 |
| Aggregate unrealized (depreciation) of investments | (127,393) |
| Net unrealized appreciation of investments | $3,636,295 |
Cost of investments for tax purposes is $44,601,041.
| 20 | Invesco Macro Allocation Strategy Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 138,637 | $1,244,658 | | 137,213 | $1,303,714 |
| Class C | 27,256 | 243,244 | | 132,510 | 1,242,058 |
| Class R | 1,195 | 11,178 | | 5,576 | 52,649 |
| Class Y | 1,042,883 | 9,582,812 | | 1,572,203 | 14,966,087 |
| Class R6 | 8,270 | 75,249 | | 23,579 | 221,955 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 738 | 6,626 | | 20,650 | 191,636 |
| Class C | 275 | 2,441 | | 31,175 | 287,742 |
| Class R | 13 | 121 | | 215 | 1,996 |
| Class Y | 6,331 | 57,167 | | 103,763 | 967,067 |
| Class R6 | 153 | 1,376 | | 1,610 | 14,997 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 12,347 | 110,830 | | - | - |
| Class C | (12,488) | (110,830) | | - | - |
| Reacquired: | | | | | |
| Class A | (123,943) | (1,131,215) | | (131,930) | (1,244,697) |
| Class C | (81,404) | (725,580) | | (229,173) | (2,128,585) |
| Class Y | (986,986) | (8,968,107) | | (1,408,612) | (13,280,312) |
| Class R6 | (4,584) | (41,704) | | (11,341) | (108,307) |
| Net increase in share activity | 28,693 | $358,266 | | 247,438 | $2,488,000 |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 78% 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. |
| 21 | Invesco Macro Allocation Strategy Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,101.70 | $7.14 | $1,018.00 | $6.85 | 1.37% |
| Class C | 1,000.00 | 1,098.10 | 11.03 | 1,014.28 | 10.59 | 2.12 |
| Class R | 1,000.00 | 1,100.30 | 8.44 | 1,016.76 | 8.10 | 1.62 |
| Class Y | 1,000.00 | 1,103.70 | 5.84 | 1,019.24 | 5.61 | 1.12 |
| Class R5 | 1,000.00 | 1,102.50 | 5.84 | 1,019.24 | 5.61 | 1.12 |
| Class R6 | 1,000.00 | 1,103.80 | 5.84 | 1,019.24 | 5.61 | 1.12 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 22 | Invesco Macro Allocation Strategy Fund |
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Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | MAS-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco MLP Fund
Nasdaq:
A: ILPAX ■ C: ILPCX ■ R: ILPRX ■ Y: ILPYX ■ R5: ILPFX ■ R6: ILPQX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 2.81% |
| Class C Shares | 2.62 |
| Class R Shares | 2.68 |
| Class Y Shares | 2.94 |
| Class R5 Shares | 2.94 |
| Class R6 Shares | 2.94 |
| S&P 500 Index▼ (Broad Market Index) | 9.76 |
| Alerian MLP Index▼ (Style-Specific Index) | 3.61 |
Lipper Energy MLP Funds Index■
(Peer Group Index) | 4.38 |
| Source(s):▼FactSet Research Systems Inc.;■ Lipper Inc. |
TheS&P 500® Index is an unmanaged index considered representative of the US stock market.
TheAlerian MLP Index is designed to capture the performance of energy master limited partnerships (MLPs).
TheLipper Energy MLP Funds Index is an unmanaged index considered representative of energy MLP funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (8/29/14) | –9.11% |
| 1 Year | –1.16 |
| Class C Shares | |
| Inception (8/29/14) | –8.69% |
| 1 Year | 2.95 |
| Class R Shares | |
| Inception (8/29/14) | –8.23% |
| 1 Year | 4.26 |
| Class Y Shares | |
| Inception (8/29/14) | –7.78% |
| 1 Year | 4.79 |
| Class R5 Shares | |
| Inception (8/29/14) | –7.78% |
| 1 Year | 4.79 |
| Class R6 Shares | |
| Inception (8/29/14) | –7.78% |
| 1 Year | 4.79 |
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.69%, 2.44%, 1.94%, 1.44%, 1.44% and 1.44%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 4.98%, 5.73%, 5.23%, 4.73%, 4.66% and 4.66%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (8/29/14) | –8.90% |
| 1 Year | 8.51 |
| Class C Shares | |
| Inception (8/29/14) | –8.47% |
| 1 Year | 12.94 |
| Class R Shares | |
| Inception (8/29/14) | –8.00% |
| 1 Year | 14.51 |
| Class Y Shares | |
| Inception (8/29/14) | –7.54% |
| 1 Year | 15.09 |
| Class R5 Shares | |
| Inception (8/29/14) | –7.54% |
| 1 Year | 15.09 |
| Class R6 Shares | |
| Inception (8/29/14) | –7.57% |
| 1 Year | 14.88 |
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Units | Value |
| Master Limited Partnerships–85.99% |
| Gathering & Processing MLP–9.82% |
| DCP Midstream, L.P. | 16,868 | $524,595 |
| Enable Midstream Partners, L.P. | 5,456 | 75,948 |
| EQM Midstream Partners, L.P. | 10,856 | 499,376 |
| Noble Midstream Partners L.P. | 2,429 | 83,630 |
| | | | 1,183,549 |
| General Partner (MLP)–18.65% |
| Energy Transfer L.P. | 96,570 | 1,460,138 |
| Western Midstream Partners, L.P. | 24,950 | 787,921 |
| | | | 2,248,059 |
| Natural Gas Pipelines & Storage (MLP)–2.33% |
| Cheniere Energy Partners, L.P. | 3,324 | 145,658 |
| PBF Logistics L.P. | 6,352 | 135,234 |
| | | | 280,892 |
| Pipelines & Midstream Diversified–22.46% |
| Enterprise Products Partners L.P. | 51,135 | 1,463,995 |
| Plains All American Pipeline, L.P. | 53,709 | 1,243,364 |
| | | | 2,707,359 |
| Refined Products Pipelines & Terminals–29.09% |
| Andeavor Logistics L.P. | 9,248 | 310,085 |
| Buckeye Partners, L.P. | 14,629 | 489,486 |
| Genesis Energy, L.P. | 15,803 | 350,511 |
| Magellan Midstream Partners, L.P. | 14,882 | 922,833 |
| MPLX L.P. | 31,121 | 1,003,964 |
| NuStar Energy L.P. | 6,318 | 171,786 |
| Phillips 66 Partners L.P. | 5,200 | 257,556 |
| | | | 3,506,221 |
| Refinery Logistics–3.64% |
| BP Midstream Partners L.P. | 17,911 | 258,993 |
| | Units | Value |
| Refinery Logistics–(continued) |
| Shell Midstream Partners, L.P. | 8,903 | $179,039 |
| | | | 438,032 |
| Total Master Limited Partnerships (Cost $10,035,595) | 10,364,112 |
| | Shares | |
| Common Stock & Other Equity interests–12.55% |
| General Partner (C-Corp.)–2.68% |
| ONEOK, Inc. | 2,391 | 162,420 |
| Williams Cos., Inc. (The) | 5,687 | 161,113 |
| | | | 323,533 |
| Global Infrastructure–2.64% |
| Cheniere Energy, Inc.(b) | 4,940 | 317,889 |
| Natural Gas Pipelines & Storage–7.23% |
| EnLink Midstream LLC(b) | 38,837 | 454,005 |
| Tallgrass Energy, L.P. | 17,294 | 417,477 |
| | | | 871,482 |
| Total Common Stock & Other Equity interests (Cost $1,470,052) | 1,512,904 |
|
| Money Market Funds–1.39% |
| Invesco Government & Agency Portfolio,Institutional Class, 2.34%(c) | 58,557 | 58,557 |
| Invesco Liquid Assets Portfolio,Institutional Class, 2.48%(c) | 41,822 | 41,835 |
| Invesco Treasury Portfolio,Institutional Class, 2.32%(c) | 66,922 | 66,922 |
| Total Money Market Funds (Cost $167,314) | 167,314 |
| TOTAL INVESTMENTS IN SECURITIES—99.93% (Cost $11,672,961) | 12,044,330 |
| OTHER ASSETS LESS LIABILITIES–0.07% | 8,205 |
| NET ASSETS–100.00% | $12,052,535 |
Notes to Schedule of Investments:
| (a) | Sector classifications used in this report are generally accordingly to the Energy MLP Classification Standard, which was developed by and is the exclusive property and service mark of Alerian. |
| (b) | Non-income producing security. |
| (c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Portfolio Composition
By MLP Sector, based on Net Assets
as of April 30, 2019
| Refined Products Pipelines & Terminals | 29.09% |
| Pipelines & Midstream Diversified | 22.46 |
| General Partner (MLP) | 18.65 |
| Gathering & Processing MLP | 9.82 |
| Natural Gas Pipelines & Storage | 7.23 |
| Refinery Logistics | 3.64 |
| General Partner (C-Corp.) | 2.68 |
| Global Infrastructure | 2.64 |
| Natural Gas Pipelines & Storage (MLP) | 2.33 |
| Money Market Funds Plus Other Assets Less Liabilities | 1.46 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $11,505,647) | $11,877,016 |
| Investments in affiliated money market funds, at value (Cost $167,314) | 167,314 |
| Receivable for: | |
| Fund shares sold | 575 |
| Fund expenses absorbed | 118,792 |
| Dividends | 98,012 |
| Deferred tax asset, net | 0 |
| Other assets | 25,815 |
| Total assets | 12,287,524 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 400 |
| Accrued fees to affiliates | 12,177 |
| Accrued trustees’ and officers’ fees and benefits | 1,749 |
| Accrued other operating expenses | 220,663 |
| Total liabilities | 234,989 |
| Net assets applicable to shares outstanding | $12,052,535 |
| Net assets consist of: | |
| Shares of beneficial interest | $15,915,135 |
| Distributable earnings, net of taxes | (3,862,600) |
| | $12,052,535 |
| Net Assets: |
| Class A | $4,361,338 |
| Class C | $1,381,646 |
| Class R | $646,494 |
| Class Y | $5,652,406 |
| Class R5 | $5,326 |
| Class R6 | $5,325 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 819,514 |
| Class C | 259,904 |
| Class R | 121,544 |
| Class Y | 1,062,174 |
| Class R5 | 1,001 |
| Class R6 | 1,001 |
| Class A: | |
| Net asset value per share | $5.32 |
Maximum offering price per share
(Net asset value of $5.32 ÷ 94.50%) | $5.63 |
| Class C: | |
| Net asset value and offering price per share | $5.32 |
| Class R: | |
| Net asset value and offering price per share | $5.32 |
| Class Y: | |
| Net asset value and offering price per share | $5.32 |
| Class R5: | |
| Net asset value and offering price per share | $5.32 |
| Class R6: | |
| Net asset value and offering price per share | $5.32 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of return of capital distributions of $280,544) | $39,983 |
| Dividends from affiliated money market funds | 2,283 |
| Total investment income | 42,266 |
| Expenses: | |
| Advisory fees | 58,082 |
| Administrative services fees | 8,924 |
| Custodian fees | 1,594 |
| Distribution fees: | |
| Class A | 5,289 |
| Class C | 6,618 |
| Class R | 1,321 |
| Transfer agent fees — A, C, R and Y | 9,651 |
| Transfer agent fees — R5 | 3 |
| Transfer agent fees — R6 | 2 |
| Trustees’ and officers’ fees and benefits | 11,436 |
| Registration and filing fees | 40,542 |
| Reports to shareholders | 5,855 |
| Professional services fees | 97,437 |
| Taxes | 2,785 |
| Other | 8,202 |
| Total expenses, before waivers and taxes | 257,741 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (182,005) |
| Net expenses, before taxes | 75,736 |
| Net investment income (loss), before taxes | (33,470) |
| Net tax expense | (23,605) |
| Net investment income (loss), net of taxes | (57,075) |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (273,863) |
| Net tax expense | 0 |
| Net realized gain (loss), net of taxes | (273,863) |
| Change in net unrealized appreciation of: | |
| Investment securities | 760,765 |
| Net tax expense | 0 |
| Net change in net unrealized appreciation of investment securities, net of taxes | 760,765 |
| Net realized and unrealized gain, net of taxes | 486,902 |
| Net increase in net assets resulting from operations | $429,827 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income (loss), net of taxes | $(57,075) | $(115,730) |
| Net realized gain (loss), net of taxes | (273,863) | 132,277 |
| Change in net unrealized appreciation, net of taxes | 760,765 | 261,179 |
| Net increase in net assets resulting from operations | 429,827 | 277,726 |
| Return of capital: | | |
| Class A | (124,509) | (255,736) |
| Class C | (35,638) | (58,447) |
| Class R | (15,421) | (22,183) |
| Class Y | (167,892) | (322,823) |
| Class R5 | (165) | (336) |
| Class R6 | (165) | (336) |
| Total return of capital | (343,790) | (659,861) |
| Share transactions–net: | | |
| Class A | 238,384 | 671,753 |
| Class C | 8,200 | 376,989 |
| Class R | 197,488 | 108,397 |
| Class Y | 361,432 | 410,086 |
| Net increase in net assets resulting from share transactions | 805,504 | 1,567,225 |
| Net increase in net assets | 891,541 | 1,185,090 |
| Net assets: | | |
| Beginning of period | 11,160,994 | 9,975,904 |
| End of period | $12,052,535 | $11,160,994 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights
April 30, 2019
(Unaudited)
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
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Return of
capital | 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
reimbursements,
before taxes(c) | Tax expense
(benefit) | Ratio of
expenses
to average
net assets
with fee
waivers
and/or expenses
reimbursements,
after taxes(c) | Ratio of
expenses
to average
net assets
without fee
waivers
and/or expenses
reimbursements,
after taxes(c) | Ratio of net
investment
(loss)
to average
net assets,
before taxes | Ratio of net
investment
(loss)
to average
net assets,
after taxes | Portfolio
turnover(d) |
| Class A |
| Six months ended 04/30/19 | $5.33 | $(0.03) | $0.18 | $0.15 | $(0.16) | $5.32 | 2.81% | $4,361 | 1.53%(e) | 0.20%(e)(f) | 1.73%(e)(f) | 4.86%(e)(f) | (0.80)%(e) | (1.00)%(e)(g) | 32% |
| Year ended 10/31/18 | 5.46 | (0.06) | 0.25 | 0.19 | (0.32) | 5.33 | 3.44 | 4,097 | 1.28 | 0.11 | 1.39 | 5.10 | (0.92) | (1.03) | 97 |
| Year ended 10/31/17 | 6.06 | (0.06) | (0.21) | (0.27) | (0.33) | 5.46 | (4.88) | 3,619 | 1.33 | 0 | 1.33 | 4.90 | (0.95) | (0.95) | 93 |
| Year ended 10/31/16 | 6.45 | (0.07) | 0.02 | (0.05) | (0.34) | 6.06 | (0.14) | 4,050 | 1.50 | 0 | 1.50 | 4.75 | (1.28) | (1.28) | 57 |
| Year ended 10/31/15 | 9.35 | (0.09) | (2.51) | (2.60) | (0.30) | 6.45 | (28.30) | 2,489 | 1.50 | 0 | 1.50 | 6.37 | (1.16) | (1.16) | 107 |
| Year ended 10/31/14(h) | 10.00 | (0.01) | (0.64) | (0.65) | — | 9.35 | (6.50) | 1,931 | 1.49(i) | 0 | 1.49(i) | 72.56 | (0.54) | (0.54)(i) | 5 |
| Class C |
| Six months ended 04/30/19 | 5.33 | (0.05) | 0.18 | 0.13 | (0.14) | 5.32 | 2.43 | 1,382 | 2.28(e) | 0.20(e)(f) | 2.48(e)(f) | 5.61(e)(f) | (1.55)(e) | (1.75)(e)(g) | 32 |
| Year ended 10/31/18 | 5.46 | (0.10) | 0.25 | 0.15 | (0.28) | 5.33 | 2.66 | 1,391 | 2.03 | 0.11 | 2.14 | 5.85 | (1.67) | (1.78) | 97 |
| Year ended 10/31/17 | 6.05 | (0.10) | (0.21) | (0.31) | (0.28) | 5.46 | (5.45) | 1,088 | 2.08 | 0 | 2.08 | 5.65 | (1.70) | (1.70) | 93 |
| Year ended 10/31/16 | 6.45 | (0.12) | 0.02 | (0.10) | (0.30) | 6.05 | (1.08) | 1,283 | 2.25 | 0 | 2.25 | 5.50 | (2.03) | (2.03) | 57 |
| Year ended 10/31/15 | 9.34 | (0.16) | (2.49) | (2.65) | (0.24) | 6.45 | (28.78) | 205 | 2.25 | 0 | 2.25 | 7.12 | (1.91) | (1.91) | 107 |
| Year ended 10/31/14(h) | 10.00 | (0.02) | (0.64) | (0.66) | — | 9.34 | (6.60) | 1,713 | 2.24(i) | 0 | 2.24(i) | 73.31 | (1.29) | (1.29)(i) | 5 |
| Class R |
| Six months ended 04/30/19 | 5.33 | (0.03) | 0.17 | 0.14 | (0.15) | 5.32 | 2.68 | 646 | 1.78(e) | 0.20(e)(f) | 1.98(e)(f) | 5.11(e)(f) | (1.05)(e) | (1.25)(e)(g) | 32 |
| Year ended 10/31/18 | 5.46 | (0.07) | 0.25 | 0.18 | (0.31) | 5.33 | 3.18 | 443 | 1.53 | 0.11 | 1.64 | 5.35 | (1.17) | (1.28) | 97 |
| Year ended 10/31/17 | 6.06 | (0.07) | (0.22) | (0.29) | (0.31) | 5.46 | (5.12) | 347 | 1.58 | 0 | 1.58 | 5.15 | (1.20) | (1.20) | 93 |
| Year ended 10/31/16 | 6.45 | (0.09) | 0.03 | (0.06) | (0.33) | 6.06 | (0.39) | 241 | 1.75 | 0 | 1.75 | 5.00 | (1.53) | (1.53) | 57 |
| Year ended 10/31/15 | 9.35 | (0.11) | (2.51) | (2.62) | (0.28) | 6.45 | (28.48) | 35 | 1.75 | 0 | 1.75 | 6.62 | (1.41) | (1.41) | 107 |
| Year ended 10/31/14(h) | 10.00 | (0.01) | (0.64) | (0.65) | — | 9.35 | (6.50) | 21 | 1.74(i) | 0 | 1.74(i) | 72.80 | (0.79) | (0.79)(i) | 5 |
| Class Y |
| Six months ended 04/30/19 | 5.33 | (0.02) | 0.17 | 0.15 | (0.16) | 5.32 | 2.94 | 5,652 | 1.28(e) | 0.20(e)(f) | 1.48(e)(f) | 4.61(e)(f) | (0.55)(e) | (0.75)(e)(g) | 32 |
| Year ended 10/31/18 | 5.47 | (0.04) | 0.24 | 0.20 | (0.34) | 5.33 | 3.52 | 5,219 | 1.03 | 0.11 | 1.14 | 4.85 | (0.67) | (0.78) | 97 |
| Year ended 10/31/17 | 6.07 | (0.04) | (0.22) | (0.26) | (0.34) | 5.47 | (4.61) | 4,912 | 1.08 | 0 | 1.08 | 4.65 | (0.70) | (0.70) | 93 |
| Year ended 10/31/16 | 6.46 | (0.06) | 0.03 | (0.03) | (0.36) | 6.07 | 0.14 | 3,545 | 1.25 | 0 | 1.25 | 4.50 | (1.03) | (1.03) | 57 |
| Year ended 10/31/15 | 9.36 | (0.07) | (2.51) | (2.58) | (0.32) | 6.46 | (28.07) | 2,094 | 1.25 | 0 | 1.25 | 6.12 | (0.91) | (0.91) | 107 |
| Year ended 10/31/14(h) | 10.00 | (0.01) | (0.63) | (0.64) | — | 9.36 | (6.40) | 1,628 | 1.24(i) | 0 | 1.24(i) | 72.31 | (0.29) | (0.29)(i) | 5 |
| Class R5 |
| Six months ended 04/30/19 | 5.33 | (0.02) | 0.17 | 0.15 | (0.16) | 5.32 | 2.94 | 5 | 1.28(e) | 0.20(e)(f) | 1.48(e)(f) | 4.55(e)(f) | (0.55)(e) | (0.75)(e)(g) | 32 |
| Year ended 10/31/18 | 5.46 | (0.04) | 0.25 | 0.21 | (0.34) | 5.33 | 3.71 | 5 | 1.03 | 0.11 | 1.14 | 4.78 | (0.67) | (0.78) | 97 |
| Year ended 10/31/17 | 6.06 | (0.04) | (0.22) | (0.26) | (0.34) | 5.46 | (4.63) | 5 | 1.08 | 0 | 1.08 | 4.57 | (0.70) | (0.70) | 93 |
| Year ended 10/31/16 | 6.46 | (0.06) | 0.02 | (0.04) | (0.36) | 6.06 | (0.03) | 6 | 1.25 | 0 | 1.25 | 4.44 | (1.03) | (1.03) | 57 |
| Year ended 10/31/15 | 9.36 | (0.07) | (2.51) | (2.58) | (0.32) | 6.46 | (28.07) | 6 | 1.25 | 0 | 1.25 | 6.10 | (0.91) | (0.91) | 107 |
| Year ended 10/31/14(h) | 10.00 | (0.01) | (0.63) | (0.64) | — | 9.36 | (6.40) | 9 | 1.24(i) | 0 | 1.24(i) | 72.28 | (0.29) | (0.29)(i) | 5 |
| Class R6 |
| Six months ended 04/30/19 | 5.33 | (0.02) | 0.17 | 0.15 | (0.16) | 5.32 | 2.94 | 5 | 1.28(e) | 0.20(e)(f) | 1.48(e)(f) | 4.55(e)(f) | (0.55)(e) | (0.75)(e)(g) | 32 |
| Year ended 10/31/18 | 5.46 | (0.04) | 0.25 | 0.21 | (0.34) | 5.33 | 3.71 | 5 | 1.03 | 0.11 | 1.14 | 4.78 | (0.67) | (0.78) | 97 |
| Year ended 10/31/17 | 6.06 | (0.04) | (0.22) | (0.26) | (0.34) | 5.46 | (4.63) | 5 | 1.08 | 0 | 1.08 | 4.57 | 0.70 | (0.70) | 93 |
| Year ended 10/31/16 | 6.46 | (0.06) | 0.02 | (0.04) | (0.36) | 6.06 | (0.03) | 6 | 1.25 | 0 | 1.25 | 4.44 | (1.03) | (1.03) | 57 |
| Year ended 10/31/15 | 9.36 | (0.07) | (2.51) | (2.58) | (0.32) | 6.46 | (28.07) | 6 | 1.25 | 0 | 1.25 | 6.10 | (0.91) | (0.91) | 107 |
| Year ended 10/31/14(h) | 10.00 | (0.01) | (0.63) | (0.64) | — | 9.36 | (6.40) | 9 | 1.24(i) | 0 | 1.24(i) | 72.23 | (0.29) | (0.29)(i) | 5 |
| (a) | Calculated using average shares outstanding net of taxes, if any. |
| (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) | Includes interest expense and dividends on short sales expense. |
| (d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (e) | Ratios are annualized and based on average daily net assets (000’s omitted) of $4,267, $1,334, $533, $5,568, $5 and $5 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (f) | Ratio includes tax expense derived from net investment income (loss) and realized and unrealized gains (losses). |
| (g) | Ratio includes tax expense derived from net investment income (loss) only. |
| (h) | Commencement date of August 29, 2014. |
| (i) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco MLP 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 capital appreciation and, secondarily, 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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions–Distributions, if any, are declared and paid quarterly and are recorded on the ex-dividend date. The estimated characterization of the distribution paid will be either ordinary income or a return of capital. The actual tax character of a distribution made by the Fund will not be determined until after the Fund’s fiscal year end. It is anticipated that a significant portion of a distribution will be return of capital. |
| E. | Master Limited Partnerships– The Fund primarily invests in Master Limited Partnerships (“MLPs”). MLPs are publicly traded partnerships and limited liability companies taxed as partnerships under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The Fund principally invests in MLPs that derive their revenue primarily from businesses involved in the gathering, transporting, processing, treating, storing, refining, distributing, mining or marketing of natural gas, natural gas liquids, crude oil, refined products or coal (“energy infrastructure MLPs”). The Fund is a partner in each MLP; accordingly, the Fund is required to take into account the Fund’s allocable share of income, gains, losses, deductions, expenses, and tax credits recognized by each MLP. |
The Fund is non-diversified and will concentrate its investments in the energy sector. Energy infrastructure MLPs are subject to a variety of industry specific risk factors that may adversely affect their business or operations, including a decrease in production or reduced volumes of natural gas or other energy commodities available for transporting, processing, storing or distributing; changes in energy commodity prices; a sustained reduced demand for crude oil, natural gas and refined petroleum products; depletion of natural gas reserves or other commodities if not replaced; natural disasters, extreme weather and environmental hazards; rising interest rates, how facilities are constructed, maintained and operated, environmental and safety controls, and the prices they may charge for products and services. In addition, taxes, government regulation, international politics, price, and supply fluctuations, volatile interest rates and energy conservation may cause difficulties for energy infrastructure MLPs.
MLPs may be less liquid and subject to more abrupt or erratic price movements than conventional publicly traded securities.
| F. | Return of Capital — Distributions received from the Fund’s investments in MLPs generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates made at the time such distributions are received. The return of capital portion of the distribution is a reduction to investment income that results in an equivalent reduction in the cost basis of the associated investments and increases net realized gains (losses) and change in unrealized appreciation (depreciation). Such estimates are based on historical information available from each MLP and other industry sources. These estimates will subsequently be revised and may materially differ primarily based on information received from the MLPs after their tax reporting periods are concluded. For the year ended October 31, 2018, the Fund estimated that 100% of the MLP distributions received would be treated as return of capital. |
| G. | Federal Income Taxes — The Fund does not intend to qualify as a regulated investment company pursuant to Subchapter M of the Internal Revenue Code. The Fund is treated as a regular corporation, or “C” corporation, for U.S. federal income tax purposes and generally is subject to U.S. federal income tax on its taxable income at the rate applicable to corporations. In addition, as a regular corporation, the Fund may be subject to state and local taxes in jurisdictions in which the MLPs operate. The estimate state tax rate is based on a periodic analysis of the Fund’s holdings. Taxes include current and deferred taxes. Current taxes reflect the estimated tax liability of the Fund as of a measurement date based on taxable income. Deferred taxes reflect estimates of (i) taxes on net unrealized gains (losses), which are attributable to the difference between fair market value and tax basis, (ii) the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes, and (iii) the net tax benefit of accumulated net operating losses, capital loss carryforwards and other tax attributes. |
The Fund’s deferred tax asset (“DTA”) and/or liability balances are estimated using estimates of effective tax rates expected to apply to taxable income in the years such balances are realized. A DTA will be recognized for temporary book/tax differences, net of unrealized losses, and carryforwards (net operating losses, capital loss carryforward, or tax credits). To the extent the Fund has a DTA, the Fund will assess whether a valuation allowance is required to offset the value of a portion, or all, of the DTA. Prior year capital gains (carrybacks), unrealized net gains, future
reversals of existing taxable timing differences, forecast of future profitability (based on historical evidence), potential tax planning strategies, unsettled circumstances, and other evidence will be used in determining the valuation allowance. The valuation allowance is reviewed periodically and the Fund may modify its estimates or assumptions regarding the net deferred tax asset or liability balances and any applicable valuation allowance. The Fund recognizes interest and penalties associated with underpayment of federal and state income taxes, if any, in tax expense. 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.
| H. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| I. | 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. |
| J. | 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 1.00% |
| Next $1.5 billion | 0.95% |
| Next $2 billion | 0.93% |
| Next $3.5 billion | 0.91% |
| Over $8 billion | 0.90% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 1.00%.
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 29, 2020, 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 1.28%, 2.03%, 1.53%, 1.03%, 1.03% and 1.03%, 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 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $58,082, reimbursed fund level expenses of $114,267 and reimbursed class level expenses of $3,464, $1,083, $433, $4,521, $3 and $2 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $628 in front-end sales commissions from the sale of Class A shares and $0 and $22 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 — Prices are determined using quoted prices in an active market for identical assets.
Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
As of April 30, 2019, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). 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.
NOTE 4—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund.
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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $150.
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 captionAmount 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—Tax Information
Total taxes have been computed by applying the federal statutory tax rate of 21% plus a blended state tax rate of 1.87% net of federal benefit. The Fund applied this rate to net investment income (loss) and realized and unrealized gains (losses) on investments before taxes in computing its total tax expense (benefit).
The provision for taxes differs from the amount derived from applying the statutory tax rate to net investment income (loss) and realized and unrealized gains (losses) before taxes at period-end as follows:
| Provision at statutory rates | $94,884 | 21.00% |
| State and other taxes, net of federal tax benefit | 8,459 | 1.87 |
| Permanent differences, current period | (5,508) | -1.22 |
| Valuation Allowance | (97,835) | -21.65 |
| Return to provision | 23,605 | 5.22 |
| Total Tax Expense | $23,605 | 5.22% |
| Components of the Fund’s Net Deferred Tax Asset (Liability) at Period-End: |
| Deferred Tax Assets: | |
| Net operating loss carryforward | $108,985 |
| Capital loss carryforward | 657,280 |
| Charitable Contribution Carryforwards | 101 |
| Total Deferred Tax Assets | 766,366 |
| Valuation allowance | (422,253) |
| Deferred Tax Asset, Net | $344,113 |
| Deferred Tax Liabilities: | |
| Unrealized gains (losses) on investment securities | $(344,113) |
| Total Net Deferred Tax Asset (Liability) | $0 |
| As of April 30, 2019 the Fund has capital loss carryforwards, which may be carried forward for 5 years, as follows: |
| From Fiscal Year Ended | Amount | Expiration |
| October 31, 2014 | $29,726 | October 31, 2019 |
| October 31, 2015 | 1,269,605 | October 31, 2020 |
| October 31, 2016 | 639,915 | October 31, 2021 |
| October 31, 2017 | 186,841 | October 31, 2022 |
| October 31, 2018 | 251,191 | October 31, 2023 |
| October 31, 2019 | 496,441 | October 31, 2024 |
| Total | $2,873,719 | |
| As of April 30, 2019 the Fund has a net operating loss carryforwards ("NOL"), which does not expire, as follows: |
| From Fiscal Year Ended | Amount |
| October 31, 2019 | $476,498 |
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act eliminated the NOL carryback ability and replaced the 20 year carryforward period with an indefinite carryforward period for any NOLs arising in tax years ending after December 31, 2017. The Tax Act also established a limitation for any NOLs generated in tax years beginning after December 31, 2017 to the lesser of the aggregate of available NOLs or 80% of taxable income before any NOL utilization. The NOL estimated at April 30, 2019 has an indefinite carryforward and is subject to the 80% limitation.
The impact of the 2017 Tax Act is based upon our analysis and interpretations of currently available information. Uncertainties remain regarding the impact of the 2017 Tax Act due to future regulatory and rule making processes, prospects of additional corrective or supplemental legislation, and potential trade or litigation. These uncertainties, along with our completion of the calculations and potential changes in our initial assumptions as new information becomes available, could cause the actual charge to ultimately differ materially from the provisional amount recorded in 2017 related to the enactment of the 2017 Tax Act.
At April 30, 2019, based on the net unrealized losses on the Fund’s investment secuirties, the Fund has recorded a valuation allowance to offset the DTA as the Fund has determined at April 30, 2019 based on historical evidence it is unlikely the DTA will be realized.
| Tax Character of Distributions to Shareholders Paid During the Six Months Ended April 30, 2019 and Fiscal Year Ended October 31, 2018 |
| | 2019 | 2018 |
| Return of capital | 343,790 | 659,861 |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $4,195,096 and $3,744,677, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $1,811,522 |
| Aggregate unrealized (depreciation) of investments | (188,766) |
| Net unrealized appreciation of investments | $1,622,756 |
Cost of investments for tax purposes is $10,421,574.
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 127,231 | $637,132 | | 529,504 | $3,114,265 |
| Class C | 57,364 | 302,337 | | 173,020 | 998,685 |
| Class R | 38,412 | 197,736 | | 24,579 | 138,529 |
| Class Y | 191,391 | 917,941 | | 225,310 | 1,242,819 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 14,125 | 74,878 | | 35,490 | 195,954 |
| Class C | 4,730 | 24,986 | | 10,034 | 55,546 |
| Class R | 2,865 | 15,270 | | 3,951 | 21,875 |
| Class Y | 20,318 | 107,830 | | 46,708 | 258,103 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 29,464 | 154,417 | | - | - |
| Class C | (29,521) | (154,417) | | - | - |
| Reacquired: | | | | | |
| Class A | (119,567) | (628,043) | | (459,066) | (2,638,466) |
| Class C | (33,818) | (164,706) | | (121,232) | (677,242) |
| Class R | (2,894) | (15,518) | | (8,938) | (52,007) |
| Class Y | (128,515) | (664,339) | | (191,742) | (1,090,836) |
| Net increase in share activity | 171,585 | $805,504 | | 267,618 | $1,567,225 |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 53% 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, 13% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,028.10 | $8.70 | $1,016.22 | $8.65 | 1.73% |
| Class C | 1,000.00 | 1,026.20 | 12.46 | 1,012.50 | 12.37 | 2.48 |
| Class R | 1,000.00 | 1,026.80 | 9.95 | 1,014.98 | 9.89 | 1.98 |
| Class Y | 1,000.00 | 1,029.40 | 7.45 | 1,017.46 | 7.40 | 1.48 |
| Class R5 | 1,000.00 | 1,029.40 | 7.45 | 1,017.46 | 7.40 | 1.48 |
| Class R6 | 1,000.00 | 1,029.40 | 7.45 | 1,017.46 | 7.40 | 1.48 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | MLP-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Multi-Asset Income Fund
Nasdaq:
A: PIAFX ■ C: PICFX ■ R: PIRFX ■ Y: PIYFX ■ R5: IPNFX ■ R6: PIFFX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 8.81% |
| Class C Shares | 8.51 |
| Class R Shares | 8.67 |
| Class Y Shares | 9.05 |
| Class R5 Shares | 8.94 |
| Class R6 Shares | 9.05 |
| Bloomberg Barclays U.S. Aggregate Bond Index▼ (Broad Market Index) | 5.49 |
Custom Invesco Multi-Asset Income Index■
(Style-Specific Index) | 7.86 |
Lipper Mixed-Asset Target Allocation Conservative Funds Index♦
(Peer Group Index) | 5.53 |
| Source(s):▼FactSet Research Systems Inc.;■ Invesco, FactSet Research Systems Inc.;♦ Lipper Inc. |
The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment grade, fixed-rate bond market.
TheCustom Invesco Multi-Asset Income Indexis composed of the following indexes: S&P 500 and Bloomberg Barclays U.S. Universal.
The Lipper Mixed-Asset Target Allocation Conservative Funds Indexis an unmanaged index considered representative of mixed-asset target allocation conservative funds tracked by Lipper.
TheS&P 500® Index is considered representative of the US stock market.
TheBloomberg Barclays U.S. Universal Index is composed of US dollar-denominated, taxable bonds that are rated investment grade or below investment grade.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Multi-Asset Income Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/14/11) | 5.46% |
| 5 Years | 4.76 |
| 1 Year | 1.67 |
| Class C Shares | |
| Inception (12/14/11) | 5.49% |
| 5 Years | 5.18 |
| 1 Year | 5.91 |
| Class R Shares | |
| Inception (12/14/11) | 6.01% |
| 5 Years | 5.71 |
| 1 Year | 7.35 |
| Class Y Shares | |
| Inception (12/14/11) | 6.54% |
| 5 Years | 6.24 |
| 1 Year | 7.99 |
| Class R5 Shares | |
| Inception (12/14/11) | 6.54% |
| 5 Years | 6.24 |
| 1 Year | 7.98 |
| Class R6 Shares | |
| Inception | 6.52% |
| 5 Years | 6.24 |
| 1 Year | 7.99 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 0.86%, 1.61%, 1.11%, 0.61%, 0.61% and 0.61%, respectively.1 The total annual Fund operating expense ratio set forth in the
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (12/14/11) | 5.40% |
| 5 Years | 4.87 |
| 1 Year | 1.34 |
| Class C Shares | |
| Inception (12/14/11) | 5.42% |
| 5 Years | 5.27 |
| 1 Year | 5.48 |
| Class R Shares | |
| Inception (12/14/11) | 5.95% |
| 5 Years | 5.81 |
| 1 Year | 7.11 |
| Class Y Shares | |
| Inception (12/14/11) | 6.48% |
| 5 Years | 6.30 |
| 1 Year | 7.55 |
| Class R5 Shares | |
| Inception (12/14/11) | 6.48% |
| 5 Years | 6.30 |
| 1 Year | 7.55 |
| Class R6 Shares | |
| Inception | 6.45% |
| 5 Years | 6.30 |
| 1 Year | 7.55 |
most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.01%, 1.76%, 1.26%, 0.76%, 0.70% and 0.64%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns
would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 3 | Invesco Multi-Asset Income Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Multi-Asset Income Fund |
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Principal
Amount | Value |
| U.S. Dollar Denominated Bonds & Notes–47.06% |
| Aerospace & Defense–0.71% |
| Bombardier, Inc. (Canada), | | |
| 8.75%,12/01/2021(b) | | $138,000 | $153,180 |
| 5.75%,03/15/2022(b) | | 173,000 | 175,811 |
| 6.13%,01/15/2023(b) | | 516,000 | 516,645 |
| 7.50%,03/15/2025(b) | | 862,000 | 867,387 |
| TransDigm UK Holdings PLC, 6.88%, 05/15/2026(b) | | 801,000 | 807,008 |
| TransDigm, Inc., | | |
| 6.50%,07/15/2024 | | 245,000 | 249,134 |
| 6.25%,03/15/2026(b) | | 833,000 | 869,444 |
| Triumph Group, Inc., 7.75%, 08/15/2025 | | 800,000 | 800,000 |
| | | | 4,438,609 |
| Agricultural & Farm Machinery–0.13% |
| Titan International, Inc., 6.50%, 11/30/2023 | | 830,000 | 800,950 |
| Agricultural Products–0.06% |
| Kernel Holding S.A. (Ukraine), REGS, 8.75%, 01/31/2022(b) | | 350,000 | 359,186 |
| Airlines–0.07% |
| Air Canada (Canada), 7.75%, 04/15/2021(b) | | 425,000 | 455,813 |
| Alternative Carriers–0.33% |
| CenturyLink, Inc., | | |
| Series S, 6.45%, 06/15/2021 | | 535,000 | 559,075 |
| Series Y, 7.50%, 04/01/2024 | | 677,000 | 729,048 |
| Level 3 Financing, Inc., | | |
| 5.38%,05/01/2025 | | 496,000 | 506,466 |
| 5.25%,03/15/2026 | | 277,000 | 281,935 |
| | | | 2,076,524 |
| Aluminum–0.12% |
| Novelis Corp., 6.25%, 08/15/2024(b) | | 731,000 | 762,981 |
| Apparel Retail–0.17% |
| Hot Topic, Inc., 9.25%, 06/15/2021(b) | | 354,000 | 354,000 |
| L Brands, Inc., | | |
| 5.63%,02/15/2022 | | 396,000 | 412,335 |
| 6.88%,11/01/2035 | | 270,000 | 240,975 |
| 6.75%,07/01/2036 | | 30,000 | 26,250 |
| | | | 1,033,560 |
| Apparel, Accessories & Luxury Goods–0.04% |
| William Carter Co. (The), 5.63%, 03/15/2027(b) | | 264,000 | 273,900 |
| | Principal
Amount | Value |
| Asset Management & Custody Banks–0.12% |
| Prime Security Services Borrower LLC/Prime Finance, Inc., 9.25%, 05/15/2023(b) | | $414,000 | $437,111 |
| Regionalcare Hospital Partners Holdings, Inc., 8.25%, 05/01/2023(b) | | 300,000 | 319,219 |
| | | | 756,330 |
| Auto Parts & Equipment–0.20% |
| Dana Financing Luxembourg S.a.r.l., 5.75%, 04/15/2025(b) | | 100,000 | 102,500 |
| Dana, Inc., 5.50%, 12/15/2024 | | 520,000 | 529,100 |
| Flexi-Van Leasing, Inc., 10.00%, 02/15/2023(b) | | 281,000 | 251,495 |
| Hertz Corp. (The), 7.63%, 06/01/2022(b) | | 384,000 | 397,200 |
| | | | 1,280,295 |
| Automobile Manufacturers–0.22% |
| Ford Motor Credit Co. LLC, 5.60%, 01/07/2022 | | 461,000 | 482,412 |
| J.B. Poindexter & Co., Inc., 7.13%, 04/15/2026(b) | | 872,000 | 893,800 |
| | | | 1,376,212 |
| Automotive Retail–0.29% |
| Lithia Motors, Inc., 5.25%, 08/01/2025(b) | | 177,000 | 178,991 |
| Murphy Oil USA, Inc., 5.63%, 05/01/2027 | | 590,000 | 616,550 |
| Penske Automotive Group, Inc., 5.50%, 05/15/2026 | | 1,018,000 | 1,019,273 |
| | | | 1,814,814 |
| Broadcasting–0.36% |
| AMC Networks, Inc., | | |
| 5.00%,04/01/2024 | | 565,000 | 573,475 |
| 4.75%,08/01/2025 | | 286,000 | 285,168 |
| Clear Channel Worldwide Holdings, Inc., 9.25%, 02/15/2024(b) | | 274,000 | 295,577 |
| Gray Escrow, Inc., 7.00%, 05/15/2027(b) | | 249,000 | 269,465 |
| Nexstar Broadcasting, Inc., 5.63%, 08/01/2024(b) | | 492,000 | 500,708 |
| TV Azteca, S.A.B. de C.V. (Mexico), REGS, 8.25%, 08/09/2024(b) | | 350,000 | 342,125 |
| | | | 2,266,518 |
| Building Products–0.11% |
| Standard Industries, Inc., | | |
| 6.00%,10/15/2025(b) | | 384,000 | 402,801 |
| 5.00%,02/15/2027(b) | | 314,000 | 309,290 |
| | | | 712,091 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Cable & Satellite–1.94% |
| Altice Financing S.A. (Luxembourg), | | |
| 6.63%,02/15/2023(b) | | $200,000 | $205,500 |
| 7.50%,05/15/2026(b) | | 600,000 | 610,500 |
| Altice Luxembourg S.A. (Luxembourg), 7.75%, 05/15/2022(b) | | 750,000 | 765,938 |
| CCO Holdings LLC/CCO Holdings Capital Corp., | | |
| 5.75%,09/01/2023 | | 510,000 | 522,750 |
| 5.75%,02/15/2026(b) | | 1,855,000 | 1,945,431 |
| CSC Holdings, LLC, | | |
| 7.75%,07/15/2025(b) | | 340,000 | 366,244 |
| 10.88%,10/15/2025(b) | | 400,000 | 461,000 |
| 5.50%,05/15/2026(b) | | 415,000 | 427,191 |
| 6.50%,02/01/2029(b) | | 727,000 | 781,979 |
| DISH DBS Corp., | | |
| 7.88%,09/01/2019 | | 725,000 | 735,875 |
| 5.88%,11/15/2024 | | 2,145,000 | 1,858,106 |
| Intelsat Jackson Holdings SA (Luxembourg), 8.00%, 02/15/2024(b) | | 175,000 | 183,094 |
| Sirius XM Radio, Inc., 6.00%, 07/15/2024(b) | | 332,000 | 344,035 |
| Telenet Finance Luxembourg Notes S.a r.l. (Belgium), 5.50%, 03/01/2028(b) | | 200,000 | 199,500 |
| Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH (Germany), 5.00%, 01/15/2025(b) | | 700,000 | 719,250 |
| UPC Holding B.V. (Netherlands), 5.50%, 01/15/2028(b) | | 200,000 | 202,500 |
| UPCB Finance IV Ltd. (Netherlands), 5.38%, 01/15/2025(b) | | 200,000 | 204,940 |
| Virgin Media Finance PLC (United Kingdom), 6.00%, 10/15/2024(b) | | 400,000 | 415,500 |
| Virgin Media Secured Finance PLC (United Kingdom), 5.50%, 08/15/2026(b) | | 200,000 | 205,506 |
| VTR Finance B.V. (Chile), 6.88%, 01/15/2024(b) | | 539,000 | 559,886 |
| Ziggo B.V. (Netherlands), 5.50%, 01/15/2027(b) | | 400,000 | 401,000 |
| | | | 12,115,725 |
| Casinos & Gaming–0.51% |
| Boyd Gaming Corp., | | |
| 6.38%,04/01/2026 | | 278,000 | 293,637 |
| 6.00%,08/15/2026 | | 180,000 | 187,650 |
| Codere Finance 2 (Luxembourg) S.A. (Spain), 7.63%, 11/01/2021(b) | | 200,000 | 186,727 |
| MGM Resorts International, | | |
| 6.63%,12/15/2021 | | 45,000 | 48,375 |
| 7.75%,03/15/2022 | | 150,000 | 166,313 |
| 4.63%,09/01/2026 | | 1,092,000 | 1,086,212 |
| Scientific Games International, Inc., 10.00%, 12/01/2022 | | 383,000 | 404,544 |
| | Principal
Amount | Value |
| Casinos & Gaming–(continued) |
| Studio City Finance Ltd. (Macau), 7.25%, 02/11/2024(b) | | $447,000 | $467,562 |
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.50%, 03/01/2025(b) | | 334,000 | 338,071 |
| | | | 3,179,091 |
| Coal & Consumable Fuels–0.15% |
| SunCoke Energy Partners L.P./SunCoke Energy Partners Finance Corp., 7.50%, 06/15/2025(b) | | 911,000 | 922,387 |
| Commodity Chemicals–0.12% |
| Koppers, Inc., 6.00%, 02/15/2025(b) | | 506,000 | 492,237 |
| Nufarm Australia Ltd./Nufarm Americas, Inc. (Australia), 5.75%, 04/30/2026(b) | | 247,000 | 230,945 |
| | | | 723,182 |
| Communications Equipment–0.30% |
| CommScope Technologies LLC, 6.00%, 06/15/2025(b) | | 790,000 | 805,326 |
| Hughes Satellite Systems Corp., | | |
| 7.63%,06/15/2021 | | 357,000 | 381,990 |
| 5.25%,08/01/2026 | | 686,000 | 692,833 |
| | | | 1,880,149 |
| Construction & Engineering–0.02% |
| William Lyon Homes, Inc., 6.00%, 09/01/2023 | | 116,000 | 115,420 |
| Construction Machinery & Heavy Trucks–0.28% |
| Meritor, Inc., 6.25%, 02/15/2024 | | 858,000 | 888,571 |
| Terex Corp., 5.63%, 02/01/2025(b) | | 832,000 | 843,440 |
| | | | 1,732,011 |
| Consumer Finance–0.49% |
| Ally Financial, Inc., | | |
| 8.00%,03/15/2020 | | 280,000 | 292,250 |
| 5.13%,09/30/2024 | | 1,100,000 | 1,164,955 |
| Navient Corp., | | |
| 8.00%,03/25/2020 | | 705,000 | 732,319 |
| 7.25%,01/25/2022 | | 230,000 | 247,250 |
| 7.25%,09/25/2023 | | 592,000 | 643,060 |
| | | | 3,079,834 |
| Copper–0.38% |
| First Quantum Minerals Ltd. (Zambia), 7.50%, 04/01/2025(b) | | 833,000 | 808,010 |
| Freeport-McMoRan, Inc., 5.40%, 11/14/2034 | | 1,010,000 | 953,188 |
| Taseko Mines Ltd. (Canada), 8.75%, 06/15/2022(b) | | 633,000 | 611,636 |
| | | | 2,372,834 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Data Processing & Outsourced Services–0.01% |
| First Data Corp., 5.00%, 01/15/2024(b) | | $60,000 | $61,544 |
| Diversified Banks–2.89% |
| Barclays Bank PLC (United Kingdom), 7.63%, 11/21/2022 | | 200,000 | 218,378 |
| Barclays PLC (United Kingdom), REGS, 7.88%(b)(c) | | 207,000 | 218,763 |
| Citigroup Global Markets Holdings, Inc., 7.10%, 06/26/2019(b) | | 15,000,000 | 15,097,811 |
| Credit Agricole S.A. (France), REGS, 8.13%(b)(c) | | 447,000 | 510,107 |
| Dresdner Funding Trust I (Germany), REGS, 8.15%, 06/30/2031(b) | | 346,000 | 444,610 |
| ING Groep N.V. (Netherlands), REGS, 6.88%(b)(c) | | 223,000 | 232,945 |
| Royal Bank of Scotland Group PLC (The) (United Kingdom), | | |
| 8.63%(c) | | 473,000 | 509,658 |
| 6.13% | | 285,000 | 305,200 |
| Societe Generale S.A. (France), REGS, 7.38%(b)(c) | | 246,000 | 256,455 |
| Standard Chartered PLC (United Kingdom), REGS, 7.50%(b)(c) | | 207,000 | 218,838 |
| | | | 18,012,765 |
| Diversified Capital Markets–0.04% |
| Credit Suisse Group AG (Switzerland), REGS, 7.13%(b)(c) | | 224,000 | 233,622 |
| Diversified Chemicals–0.09% |
| Chemours Co. (The), 7.00%, 05/15/2025 | | 220,000 | 233,200 |
| Trinseo Materials Operating S.C.A./Trinseo Materials Finance, Inc., 5.38%, 09/01/2025(b) | | 354,000 | 346,035 |
| | | | 579,235 |
| Diversified Metals & Mining–0.20% |
| Hudbay Minerals, Inc. (Canada), 7.63%, 01/15/2025(b) | | 437,000 | 456,665 |
| Teck Resources Ltd. (Canada), 6.13%, 10/01/2035 | | 390,000 | 425,407 |
| Vedanta Resources Ltd (India), 6.38%, 07/30/2022(b) | | 350,000 | 342,738 |
| | | | 1,224,810 |
| Diversified REITs–3.17% |
| Colony Capital, Inc., 5.00%, 04/15/2023 | | 115,000 | 108,516 |
| Morgan Stanley Finance LLC, 8.35%, 07/24/2019 | | 19,500,000 | 19,654,834 |
| | | | 19,763,350 |
| Electric Utilities–0.39% |
| Duke Energy Corp., | | |
| 5.13%,01/15/2073 | | 19,900 | 496,505 |
| 5.63%,09/15/2078 | | 19,300 | 500,449 |
| | Principal
Amount | Value |
| Electric Utilities–(continued) |
| NextEra Energy Capital Holdings, Inc., | | |
| , 5.00%, 01/15/2073 | | $23,200 | $557,728 |
| Series K, Investment Units, 5.25%, 06/01/2076 | | 34,500 | 888,375 |
| | | | 2,443,057 |
| Electrical Components & Equipment–0.11% |
| EnerSys, 5.00%, 04/30/2023(b) | | 693,000 | 703,395 |
| Electronic Equipment & Instruments–0.07% |
| Itron, Inc., 5.00%, 01/15/2026(b) | | 443,000 | 440,785 |
| Environmental & Facilities Services–0.41% |
| Core & Main L.P., 6.13%, 08/15/2025(b) | | 803,000 | 800,993 |
| GFL Environmental Inc. (Canada), 7.00%, 06/01/2026(b) | | 1,381,000 | 1,349,927 |
| Waste Pro USA, Inc., 5.50%, 02/15/2026(b) | | 381,000 | 381,000 |
| | | | 2,531,920 |
| Fertilizers & Agricultural Chemicals–0.08% |
| OCI N.V. (Netherlands), 6.63%, 04/15/2023(b) | | 460,000 | 481,390 |
| Financial Exchanges & Data–0.03% |
| MSCI, Inc., 5.25%, 11/15/2024(b) | | 202,000 | 209,070 |
| Food Distributors–0.09% |
| US Foods, Inc., 5.88%, 06/15/2024(b) | | 568,000 | 582,910 |
| Food Retail–0.19% |
| Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, | | |
| 6.63%,06/15/2024 | | 737,000 | 763,716 |
| 7.50%,03/15/2026(b) | | 380,000 | 404,700 |
| | | | 1,168,416 |
| Gas Utilities–0.44% |
| AmeriGas Partners, L.P./AmeriGas Finance Corp., 5.88%, 08/20/2026 | | 1,025,000 | 1,076,158 |
| Ferrellgas L.P./Ferrellgas Finance Corp., | | |
| 6.50%,05/01/2021 | | 550,000 | 493,625 |
| 6.75%,06/15/2023 | | 109,000 | 97,010 |
| Suburban Propane Partners, L.P./Suburban Energy Finance Corp., 5.50%, 06/01/2024 | | 1,072,000 | 1,069,320 |
| | | | 2,736,113 |
| Health Care Equipment–0.12% |
| Hill-Rom Holdings, Inc., 5.00%, 02/15/2025(b) | | 695,000 | 710,638 |
| Teleflex, Inc., 4.88%, 06/01/2026 | | 56,000 | 57,400 |
| | | | 768,038 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Health Care Facilities–1.09% |
| Acadia Healthcare Co., Inc., 6.50%, 03/01/2024 | | $575,000 | $598,000 |
| Community Health Systems, Inc., | | |
| 6.25%,03/31/2023 | | 338,000 | 330,395 |
| 8.00%,03/15/2026(b) | | 373,000 | 363,675 |
| Encompass Health Corp., 5.75%, 09/15/2025 | | 540,000 | 556,999 |
| HCA, Inc., | | |
| 7.50%,02/15/2022 | | 116,000 | 127,890 |
| 5.38%,02/01/2025 | | 270,000 | 284,850 |
| 5.25%,04/15/2025 | | 749,000 | 803,236 |
| 5.88%,02/15/2026 | | 790,000 | 850,980 |
| 5.38%,09/01/2026 | | 169,000 | 178,718 |
| 5.50%,06/15/2047 | | 878,000 | 935,725 |
| Tenet Healthcare Corp., | | |
| 6.00%,10/01/2020 | | 100,000 | 103,750 |
| 8.13%,04/01/2022 | | 350,000 | 374,748 |
| 6.75%,06/15/2023 | | 1,235,000 | 1,264,331 |
| | | | 6,773,297 |
| Health Care REITs–0.12% |
| MPT Operating Partnership L.P./MPT Finance Corp., 5.00%, 10/15/2027 | | 736,000 | 739,680 |
| Health Care Services–0.65% |
| DaVita, Inc., 5.00%, 05/01/2025 | | 380,000 | 373,232 |
| Eagle Holding Co. II, LLC, 8.38% PIK Rate, 7.63% Cash Rate, 05/15/2022(b)(d) | | 679,000 | 683,244 |
| Heartland Dental, LLC, 8.50%, 05/01/2026(b) | | 581,000 | 553,403 |
| MEDNAX, Inc., 6.25%, 01/15/2027(b) | | 686,000 | 701,435 |
| MPH Acquisition Holdings LLC, 7.13%, 06/01/2024(b) | | 716,000 | 721,513 |
| Polaris Intermediate Corp., 8.50%, 12/01/2022(b) | | 344,000 | 343,570 |
| Surgery Center Holdings, Inc., | | |
| 6.75%,07/01/2025(b) | | 171,000 | 159,885 |
| 10.00%,04/15/2027(b) | | 265,000 | 272,950 |
| Team Health Holdings, Inc., 6.38%, 02/01/2025(b) | | 315,000 | 269,325 |
| | | | 4,078,557 |
| Home Improvement Retail–0.14% |
| Hillman Group, Inc. (The), 6.38%, 07/15/2022(b) | | 921,000 | 856,530 |
| Homebuilding–0.51% |
| Beazer Homes USA, Inc., | | |
| 8.75%,03/15/2022 | | 538,000 | 563,555 |
| 6.75%,03/15/2025 | | 395,000 | 382,656 |
| 5.88%,10/15/2027 | | 72,000 | 65,340 |
| KB Home, 8.00%, 03/15/2020 | | 199,000 | 207,457 |
| | Principal
Amount | Value |
| Homebuilding–(continued) |
| Lennar Corp., | | |
| 8.38%,01/15/2021 | | $50,000 | $54,495 |
| 5.38%,10/01/2022 | | 702,000 | 737,977 |
| 5.25%,06/01/2026 | | 255,000 | 265,519 |
| Meritage Homes Corp., | | |
| 7.15%,04/15/2020 | | 65,000 | 67,194 |
| 6.00%,06/01/2025 | | 216,000 | 230,040 |
| Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc., 5.88%, 04/15/2023(b) | | 569,000 | 588,250 |
| | | | 3,162,483 |
| Household Products–0.32% |
| Reynolds Group Issuer, Inc./LLC, | | |
| 5.13%,07/15/2023(b) | | 41,000 | 41,646 |
| 7.00%,07/15/2024(b) | | 1,288,000 | 1,333,885 |
| Spectrum Brands, Inc., 5.75%, 07/15/2025 | | 635,000 | 651,669 |
| | | | 2,027,200 |
| Independent Power Producers & Energy Traders–0.24% |
| AES Corp. (The), 5.50%, 04/15/2025 | | 279,000 | 290,297 |
| Calpine Corp., 5.38%, 01/15/2023 | | 234,000 | 236,340 |
| NRG Energy, Inc., | | |
| 6.25%,05/01/2024 | | 404,000 | 417,766 |
| 7.25%,05/15/2026 | | 200,000 | 218,500 |
| 6.63%,01/15/2027 | | 313,000 | 336,084 |
| | | | 1,498,987 |
| Industrial Machinery–0.29% |
| Cleaver-Brooks, Inc., 7.88%, 03/01/2023(b) | | 784,000 | 768,320 |
| EnPro Industries, Inc., 5.75%, 10/15/2026(b) | | 277,000 | 285,310 |
| Mueller Industries, Inc., 6.00%, 03/01/2027 | | 755,000 | 760,662 |
| | | | 1,814,292 |
| Integrated Oil & Gas–0.09% |
| Petrobras Global Finance B.V. (Brazil), 5.75%, 02/01/2029 | | 591,000 | 593,955 |
| Integrated Telecommunication Services–0.96% |
| Altice France S.A. (France), | | |
| 6.25%,05/15/2024(b) | | 466,000 | 479,397 |
| 7.38%,05/01/2026(b) | | 600,000 | 609,375 |
| Cincinnati Bell, Inc., | | |
| 7.00%,07/15/2024(b) | | 502,000 | 465,620 |
| 8.00%,10/15/2025(b) | | 72,000 | 66,060 |
| CommScope, Inc., | | |
| 6.00%,03/01/2026(b) | | 300,000 | 318,375 |
| 8.25%,03/01/2027(b) | | 130,000 | 140,725 |
| Frontier Communications Corp., | | |
| 10.50%,09/15/2022 | | 940,000 | 690,900 |
| 11.00%,09/15/2025 | | 378,000 | 246,645 |
| 8.00%,04/01/2027(b) | | 669,000 | 693,251 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Integrated Telecommunication Services–(continued) |
| Telecom Italia Capital S.A. (Italy), | | |
| 6.38%,11/15/2033 | | $47,000 | $45,928 |
| 7.20%,07/18/2036 | | 355,000 | 365,473 |
| T-Mobile USA, Inc., | | |
| 6.38%,03/01/2025 | | 350,000 | 364,774 |
| 6.50%,01/15/2026 | | 1,409,000 | 1,510,730 |
| | | | 5,997,253 |
| Investment Banking & Brokerage–2.24% |
| Goldman Sachs Group, Inc. (The), 6.80%, 07/12/2019 | | 14,000,000 | 13,954,436 |
| Leisure Products–0.05% |
| Mattel, Inc., 6.75%, 12/31/2025(b) | | 286,000 | 286,804 |
| Managed Health Care–0.22% |
| Centene Corp., 5.38%, 06/01/2026(b) | | 276,000 | 288,765 |
| Molina Healthcare, Inc., 4.88%, 06/15/2025(b) | | 392,000 | 391,510 |
| WellCare Health Plans, Inc., | | |
| 5.25%,04/01/2025 | | 420,000 | 435,225 |
| 5.38%,08/15/2026(b) | | 238,000 | 249,852 |
| | | | 1,365,352 |
| Metal & Glass Containers–0.16% |
| Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. (Ireland), 6.00%, 02/15/2025(b) | | 600,000 | 606,000 |
| Flex Acquisition Co., Inc., 7.88%, 07/15/2026(b) | | 405,000 | 380,578 |
| | | | 986,578 |
| Movies & Entertainment–0.32% |
| AMC Entertainment Holdings, Inc., 5.75%, 06/15/2025 | | 785,000 | 759,566 |
| Netflix, Inc., | | |
| 5.75%,03/01/2024 | | 423,000 | 456,066 |
| 5.88%,11/15/2028 | | 722,000 | 763,515 |
| | | | 1,979,147 |
| Multi-line Insurance–0.02% |
| Acrisure LLC / Acrisure Finance, Inc., 8.13%, 02/15/2024(b) | | 94,000 | 98,465 |
| Multi-Utilities–0.34% |
| Algonquin Power & Utilities Corp. (Canada), 6.88% (3 mo. USD LIBOR + 3.68%), 10/17/2078(e) | | 11,900 | 318,682 |
| Dominion Energy, Inc., Series A, Investment Units, 5.25%, 07/30/2076 | | 30,000 | 757,500 |
| | Principal
Amount | Value |
| Multi-Utilities–(continued) |
| DTE Energy Co., | | |
| Series B, Investment Units, 5.38%, 06/01/2076 | | $15,000 | $381,900 |
| Series E, Investment Units, 5.25%, 12/01/2077 | | 14,100 | 359,409 |
| Series F, Investment Units, 6.00%, 12/15/2076 | | 12,300 | 326,319 |
| | | | 2,143,810 |
| Office REITs–0.05% |
| Office Properties Income Trust, 5.88%, 05/01/2046 | | 11,900 | 298,809 |
| Oil & Gas Drilling–0.52% |
| Diamond Offshore Drilling, Inc., 4.88%, 11/01/2043 | | 192,000 | 124,320 |
| Ensco Rowan plc, | | |
| 4.50%,10/01/2024 | | 27,000 | 21,735 |
| 7.75%,02/01/2026 | | 874,000 | 758,195 |
| Ensign Drilling, Inc. (Canada), 9.25%, 04/15/2024(b) | | 351,000 | 352,460 |
| Noble Holding International Ltd., 7.75%, 01/15/2024 | | 881,000 | 801,710 |
| Precision Drilling Corp. (Canada), | | |
| 6.50%,12/15/2021 | | 50,956 | 51,338 |
| 7.75%,12/15/2023 | | 25,000 | 26,125 |
| 5.25%,11/15/2024 | | 560,000 | 533,400 |
| Transocean, Inc., 7.50%, 04/15/2031 | | 647,000 | 566,125 |
| | | | 3,235,408 |
| Oil & Gas Equipment & Services–0.19% |
| Archrock Partners, L.P./Archrock Partners Finance Corp., 6.00%, 10/01/2022 | | 510,000 | 516,375 |
| Calfrac Holdings L.P. (Canada), 8.50%, 06/15/2026(b) | | 312,000 | 260,520 |
| SESI, L.L.C., 7.13%, 12/15/2021 | | 487,000 | 416,385 |
| | | | 1,193,280 |
| Oil & Gas Exploration & Production–2.11% |
| Antero Resources Corp., 5.00%, 03/01/2025 | | 210,000 | 207,900 |
| Ascent Resources Utica Holdings, LLC/ARU Finance Corp., 10.00%, 04/01/2022(b) | | 614,000 | 675,400 |
| Brazos Valley Longhorn LLC/Brazos Valley Longhorn Finance Corp., 6.88%, 02/01/2025 | | 828,000 | 835,245 |
| California Resources Corp., 8.00%, 12/15/2022(b) | | 401,000 | 308,269 |
| Callon Petroleum Co., 6.13%, 10/01/2024 | | 849,000 | 876,338 |
| Centennial Resource Production, LLC, 6.88%, 04/01/2027(b) | | 661,000 | 686,614 |
| Denbury Resources, Inc., | | |
| 9.00%,05/15/2021(b) | | 300,000 | 306,000 |
| 5.50%,05/01/2022 | | 198,000 | 150,975 |
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 Exploration & Production–(continued) |
| EP Energy LLC/Everest Acquisition Finance, Inc., 8.00%, 11/29/2024(b) | | $611,000 | $418,535 |
| Gulfport Energy Corp., | | |
| 6.63%,05/01/2023 | | 230,000 | 222,525 |
| 6.00%,10/15/2024 | | 616,000 | 543,238 |
| Jagged Peak Energy LLC, 5.88%, 05/01/2026 | | 742,000 | 748,492 |
| Oasis Petroleum, Inc., 6.88%, 01/15/2023 | | 997,000 | 1,006,970 |
| Parsley Energy, LLC/Parsley Finance Corp., | | |
| 6.25%,06/01/2024(b) | | 533,000 | 553,987 |
| 5.63%,10/15/2027(b) | | 593,000 | 609,307 |
| QEP Resources, Inc., 5.63%, 03/01/2026 | | 438,000 | 411,361 |
| Range Resources Corp., 4.88%, 05/15/2025 | | 1,266,000 | 1,171,050 |
| SM Energy Co., | | |
| 6.13%,11/15/2022 | | 457,000 | 463,855 |
| 6.63%,01/15/2027 | | 74,000 | 70,115 |
| Southwestern Energy Co., | | |
| 7.50%,04/01/2026 | | 463,000 | 472,260 |
| 7.75%,10/01/2027 | | 327,000 | 332,723 |
| Tullow Oil PLC (Ghana), 7.00%, 03/01/2025(b) | | 295,000 | 301,638 |
| Whiting Petroleum Corp., | | |
| 6.25%,04/01/2023 | | 710,000 | 728,637 |
| 6.63%,01/15/2026 | | 150,000 | 149,816 |
| WPX Energy, Inc., 5.25%, 09/15/2024 | | 869,000 | 901,587 |
| | | | 13,152,837 |
| Oil & Gas Refining & Marketing–0.12% |
| Parkland Fuel Corp. (Canada), 6.00%, 04/01/2026(b) | | 345,000 | 352,762 |
| Sunoco L.P. /Sunoco Finance Corp., 4.88%, 01/15/2023 | | 385,000 | 392,219 |
| | | | 744,981 |
| Oil & Gas Storage & Transportation–0.37% |
| Antero Midstream Partners L.P./Antero Midstream Finance Corp., 5.38%, 09/15/2024 | | 350,000 | 358,540 |
| Energy Transfer Partners, L.P., Series A, 6.25%(c) | | 242,000 | 230,695 |
| Plains All American Pipeline, L.P., Series B, 6.13%(c) | | 351,000 | 336,684 |
| SemGroup Corp., 6.38%, 03/15/2025 | | 535,000 | 512,263 |
| Targa Resources Partners L.P. / Targa Resources Partners Finance Corp., | | |
| 5.13%,02/01/2025 | | 642,000 | 661,260 |
| 5.88%,04/15/2026 | | 227,000 | 239,556 |
| | | | 2,338,998 |
| | Principal
Amount | Value |
| Other Diversified Financial Services–0.25% |
| Lions Gate Capital Holdings LLC, 6.38%, 02/01/2024(b) | | $623,000 | $653,371 |
| LPL Holdings, Inc., 5.75%, 09/15/2025(b) | | 390,000 | 397,800 |
| Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 6.75%, 06/01/2025(b) | | 425,000 | 436,156 |
| VFH Parent LLC/Orchestra Co-Issuer, Inc., 6.75%, 06/15/2022(b) | | 101,000 | 104,628 |
| | | | 1,591,955 |
| Packaged Foods & Meats–0.20% |
| B&G Foods, Inc., 5.25%, 04/01/2025 | | 286,000 | 281,696 |
| JBS Investments GmbH, 7.25%, 04/03/2024(b) | | 590,000 | 613,511 |
| TreeHouse Foods, Inc., 6.00%, 02/15/2024(b) | | 357,000 | 373,065 |
| | | | 1,268,272 |
| Paper Packaging–0.07% |
| Plastipak Holdings, Inc., 6.25%, 10/15/2025(b) | | 461,000 | 433,340 |
| Paper Products–0.23% |
| Mercer International, Inc. (Canada), | | |
| 7.75%,12/01/2022 | | 24,000 | 24,930 |
| 6.50%,02/01/2024 | | 476,000 | 492,660 |
| 5.50%,01/15/2026 | | 163,000 | 161,777 |
| Schweitzer-Mauduit International, Inc., 6.88%, 10/01/2026(b) | | 720,000 | 741,600 |
| | | | 1,420,967 |
| Pharmaceuticals–0.62% |
| Bausch Health Cos., Inc., | | |
| 5.88%,05/15/2023(b) | | 150,000 | 151,718 |
| 6.13%,04/15/2025(b) | | 500,000 | 507,500 |
| 5.50%,11/01/2025(b) | | 307,000 | 315,347 |
| 9.00%,12/15/2025(b) | | 1,179,000 | 1,310,164 |
| 9.25%,04/01/2026(b) | | 301,000 | 335,615 |
| 5.75%,08/15/2027(b) | | 126,000 | 131,607 |
| Endo Dac/Endo Finance LLC/Endo Finco, Inc., 6.00%, 07/15/2023(b) | | 200,000 | 164,000 |
| HLF Financing S.a.r.l. LLC/Herbalife International, Inc., 7.25%, 08/15/2026(b) | | 525,000 | 535,500 |
| Teva Pharmaceutical Finance IV, B.V. (Israel), 3.65%, 11/10/2021 | | 450,000 | 442,325 |
| | | | 3,893,776 |
| Publishing–0.15% |
| Meredith Corp., 6.88%, 02/01/2026 | | 886,000 | 925,870 |
| Railroads–0.14% |
| Kenan Advantage Group, Inc. (The), 7.88%, 07/31/2023(b) | | 876,000 | 854,100 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Restaurants–0.24% |
| 1011778 BC ULC/ New Red Finance, Inc. (Canada), 5.00%, 10/15/2025(b) | | $1,023,000 | $1,016,606 |
| IRB Holding Corp., 6.75%, 02/15/2026(b) | | 482,000 | 479,590 |
| | | | 1,496,196 |
| Security & Alarm Services–0.05% |
| Brink’s Co. (The), 4.63%, 10/15/2027(b) | | 322,000 | 311,535 |
| Sovereign Debt–15.83% |
| Abu Dhabi Government International Bond (United Arab Emirates), | | |
REGS,
3.13%,10/11/2027(b) | | 900,000 | 896,184 |
| 4.13%,10/11/2047(b) | | 700,000 | 714,386 |
| Angolan Government International Bond (Angola), | | |
REGS,
9.50%,11/12/2025(b) | | 800,000 | 899,396 |
| 8.25%,05/09/2028(b) | | 700,000 | 734,546 |
| 9.38%,05/08/2048(b) | | 700,000 | 753,651 |
| Argentine Republic Government International Bond (Argentina), | | |
| 7.50%,04/22/2026 | | 800,000 | 603,500 |
| 7.13%,07/06/2036 | | 1,100,000 | 758,709 |
| 7.63%,04/22/2046 | | 1,000,000 | 698,750 |
| Bahrain Government International Bond (Bahrain), | | |
REGS,
6.75%,09/20/2029(b) | | 700,000 | 744,188 |
| 6.00%,09/19/2044(b) | | 800,000 | 752,022 |
| 7.50%,09/20/2047(b) | | 1,000,000 | 1,070,140 |
| Brazilian Government International Bond (Brazil), | | |
| 8.25%,01/20/2034 | | 625,000 | 796,094 |
| 5.63%,01/07/2041 | | 800,000 | 801,000 |
| 5.63%,02/21/2047 | | 900,000 | 884,812 |
| Chile Government International Bond (Chile), | | |
| 3.13%,01/21/2026 | | 700,000 | 704,463 |
| 3.24%,02/06/2028 | | 900,000 | 907,209 |
| 3.86%,06/21/2047 | | 900,000 | 905,859 |
| China Government International Bond (China), | | |
REGS,
2.63%,11/02/2027(b) | | 800,000 | 777,745 |
| 3.50%,10/19/2028(b) | | 900,000 | 938,051 |
| 4.00%,10/19/2048(b) | | 800,000 | 823,661 |
| Colombia Government International Bond (Colombia), | | |
| 7.38%,09/18/2037 | | 700,000 | 914,375 |
| 6.13%,01/18/2041 | | 800,000 | 943,000 |
| 5.63%,02/26/2044 | | 600,000 | 674,625 |
| | Principal
Amount | Value |
| Sovereign Debt–(continued) |
| Costa Rica Government International Bond (Costa Rica), | | |
REGS,
5.63%,04/30/2043(b) | | $1,100,000 | $935,000 |
| 7.00%,04/04/2044(b) | | 800,000 | 770,000 |
| 7.16%,03/12/2045(b) | | 800,000 | 781,000 |
| Croatia Government International Bond (Croatia), | | |
REGS,
5.50%,04/04/2023(b) | | 1,200,000 | 1,301,274 |
| 6.00%,01/26/2024(b) | | 1,100,000 | 1,233,401 |
| Dominican Republic International Bond (Dominican Repubic), | | |
REGS,
7.45%,04/30/2044(b) | | 725,000 | 822,875 |
| 6.85%,01/27/2045(b) | | 850,000 | 913,750 |
| 6.50%,02/15/2048(b) | | 800,000 | 833,808 |
| Ecuador Government International Bond (Ecuador), | | |
REGS,
9.65%,12/13/2026(b) | | 800,000 | 855,000 |
| 9.63%,06/02/2027(b) | | 800,000 | 851,000 |
| 8.88%,10/23/2027(b) | | 800,000 | 817,000 |
| Egypt Government International Bond (Egypt), | | |
REGS,
8.50%,01/31/2047(b) | | 800,000 | 815,824 |
| 7.90%,02/21/2048(b) | | 800,000 | 775,352 |
| 8.70%,03/01/2049(b) | | 900,000 | 930,640 |
| El Salvador Government International Bond (El Salvador), | | |
REGS,
8.25%,04/10/2032(b) | | 697,000 | 755,374 |
| 7.65%,06/15/2035(b) | | 830,000 | 862,162 |
| 7.63%,02/01/2041(b) | | 800,000 | 823,000 |
| Emirate of Dubai Government International Bonds (United Arab Emirates), REGS, 5.25%, 01/30/2043(b) | | 800,000 | 849,877 |
| Hungary Government International Bond (Hungary), | | |
| 5.75%,11/22/2023 | | 750,000 | 832,751 |
| 5.38%,03/25/2024 | | 710,000 | 782,340 |
| 7.63%,03/29/2041 | | 610,000 | 919,133 |
| Indonesia Government International Bond (Indonesia), | | |
REGS,
8.50%,10/12/2035(b) | | 550,000 | 793,265 |
| 6.63%,02/17/2037(b) | | 700,000 | 871,837 |
| 7.75%,01/17/2038(b) | | 650,000 | 900,516 |
| Jordan Government International Bond (Jordan), | | |
REGS,
6.13%,01/29/2026(b) | | 800,000 | 805,712 |
| 5.75%,01/31/2027(b) | | 1,000,000 | 978,340 |
| 7.38%,10/10/2047(b) | | 800,000 | 781,470 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Sovereign Debt–(continued) |
| Kazakhstan Government International Bond (Kazakhstan), | | |
REGS,
5.13%,07/21/2025(b) | | $750,000 | $828,663 |
| 4.88%,10/14/2044(b) | | 850,000 | 914,668 |
| 6.50%,07/21/2045(b) | | 700,000 | 910,371 |
| Kenya Government International Bond (Kenya), | | |
REGS,
6.88%,06/24/2024(b) | | 700,000 | 716,170 |
| 7.25%,02/28/2028(b) | | 700,000 | 696,609 |
| 8.25%,02/28/2048(b) | | 1,100,000 | 1,089,555 |
| Lebanon Government International Bond (Lebanon), | | |
REGS,
6.65%,04/22/2024(b) | | 900,000 | 774,000 |
| 6.75%,11/29/2027(b) | | 933,000 | 762,410 |
| 6.65%,02/26/2030(b) | | 1,069,000 | 851,191 |
| Mexico Government International Bond (Mexico), | | |
| 4.60%,01/23/2046 | | 850,000 | 821,100 |
| 5.75%,10/12/2110 | | 850,000 | 875,500 |
| Series A, 6.05%, 01/11/2040 | | 712,000 | 817,910 |
| Mongolia Government International Bond (Mongolia), | | |
REGS,
5.13%,12/05/2022(b) | | 900,000 | 886,360 |
| 5.63%,05/01/2023(b) | | 700,000 | 692,865 |
| 8.75%,03/09/2024(b) | | 800,000 | 886,568 |
| Nigeria Government International Bond (Nigeria), | | |
REGS,
7.70%,02/23/2038(b) | | 1,000,000 | 989,360 |
| 7.63%,11/28/2047(b) | | 800,000 | 768,708 |
| 9.25%,01/21/2049(b) | | 700,000 | 763,847 |
| Oman Government International Bond (Oman), | | |
REGS,
5.63%,01/17/2028(b) | | 800,000 | 762,610 |
| 6.50%,03/08/2047(b) | | 800,000 | 717,473 |
| 6.75%,01/17/2048(b) | | 1,000,000 | 909,470 |
| Pakistan Government International Bond (Pakistan), | | |
REGS,
8.25%,04/15/2024(b) | | 800,000 | 867,000 |
| 8.25%,09/30/2025(b) | | 610,000 | 662,721 |
| 6.88%,12/05/2027(b) | | 1,000,000 | 995,772 |
| Panama Government International Bond (Panama), | | |
| 7.13%,01/29/2026 | | 750,000 | 917,437 |
| 8.88%,09/30/2027 | | 569,000 | 790,199 |
| 3.88%,03/17/2028 | | 800,000 | 829,908 |
| Paraguay Government International Bond (Paraguay), | | |
REGS,
5.00%,04/15/2026(b) | | 800,000 | 848,000 |
| 6.10%,08/11/2044(b) | | 800,000 | 903,472 |
| 5.60%,03/13/2048(b) | | 700,000 | 749,875 |
| | Principal
Amount | Value |
| Sovereign Debt–(continued) |
| Peruvian Government International Bond (Peru), | | |
| 4.13%,08/25/2027 | | $800,000 | $864,000 |
| 8.75%,11/21/2033 | | 521,000 | 808,853 |
| 5.63%,11/18/2050 | | 702,000 | 898,560 |
| Philippine Government International Bond (Philippines), | | |
| 9.50%,02/02/2030 | | 587,000 | 904,246 |
| 7.75%,01/14/2031 | | 600,000 | 844,878 |
| 6.38%,10/23/2034 | | 650,000 | 860,785 |
| Poland Government International Bond (Poland), 3.25%, 04/06/2026 | | 804,000 | 821,691 |
| Qatar Government International Bond (Qatar), | | |
REGS,
6.40%,01/20/2040(b) | | 600,000 | 783,762 |
| 5.75%,01/20/2042(b) | | 725,000 | 884,714 |
| 5.10%,04/23/2048(b) | | 700,000 | 782,858 |
| Republic of Poland Government International Bond (Poland), | | |
| 3.00%,03/17/2023 | | 824,000 | 832,677 |
| 4.00%,01/22/2024 | | 795,000 | 836,380 |
| Republic of South Africa Government International Bond (South Africa), | | |
| 6.25%,03/08/2041 | | 800,000 | 826,177 |
| 5.38%,07/24/2044 | | 850,000 | 783,999 |
| 6.30%,06/22/2048 | | 900,000 | 903,946 |
| Romanian Government International Bond (Romania), | | |
REGS,
4.88%,01/22/2024(b) | | 752,000 | 802,167 |
| 6.13%,01/22/2044(b) | | 730,000 | 847,494 |
| 5.13%,06/15/2048(b) | | 850,000 | 860,816 |
| Russian Foreign Bond (Russia), | | |
REGS,
5.63%,04/04/2042(b) | | 800,000 | 888,760 |
| 5.88%,09/16/2043(b) | | 800,000 | 915,419 |
| Russian Foreign Bond - Eurobond (Russia), REGS, 5.25%, 06/23/2047(b) | | 800,000 | 829,608 |
| Saudi Government International Bond (Saudi Arabia), | | |
REGS,
4.50%,10/26/2046(b) | | 700,000 | 692,355 |
| 4.63%,10/04/2047(b) | | 1,000,000 | 1,007,430 |
| 5.00%,04/17/2049(b) | | 800,000 | 847,699 |
| Slovenia Government International Bond (Slovenia), REGS, 5.25%, 02/18/2024(b) | | 1,200,000 | 1,334,568 |
| Sri Lanka Government International Bond (Sri Lanka), | | |
REGS,
6.13%,06/03/2025(b) | | 850,000 | 824,992 |
| 6.85%,11/03/2025(b) | | 950,000 | 950,734 |
| 6.83%,07/18/2026(b) | | 850,000 | 842,117 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 12 | Invesco Multi-Asset Income Fund |
| | Principal
Amount | Value |
| Sovereign Debt–(continued) |
| Trinidad & Tobago Government International Bond (Trinidad), | | |
REGS,
4.38%,01/16/2024(b) | | $1,200,000 | $1,221,000 |
| 4.50%,08/04/2026(b) | | 1,300,000 | 1,296,750 |
| Turkey Government International Bond (Turkey), | | |
| 8.00%,02/14/2034 | | 810,000 | 814,374 |
| 6.88%,03/17/2036 | | 848,000 | 761,203 |
| 7.25%,03/05/2038 | | 800,000 | 741,504 |
| Ukraine Government International Bond (Ukraine), | | |
REGS,
7.75%,09/01/2025(b) | | 850,000 | 802,884 |
| 7.75%,09/01/2026(b) | | 800,000 | 746,820 |
| 7.75%,09/01/2027(b) | | 900,000 | 831,875 |
| | | | 98,785,954 |
| Specialized Consumer Services–0.20% |
| ServiceMaster Co., LLC (The), | | |
| 5.13%,11/15/2024(b) | | 942,000 | 953,775 |
| 7.45%,08/15/2027 | | 254,000 | 268,922 |
| | | | 1,222,697 |
| Specialized REITs–0.46% |
| Equinix, Inc., 5.88%, 01/15/2026 | | 595,000 | 629,213 |
| Iron Mountain US Holdings, Inc., 5.38%, 06/01/2026(b) | | 653,000 | 649,735 |
| Iron Mountain, Inc., | | |
| 6.00%,08/15/2023 | | 203,000 | 208,709 |
| 5.75%,08/15/2024 | | 115,000 | 116,150 |
| 5.25%,03/15/2028(b) | | 173,000 | 171,270 |
| Rayonier A.M. Products, Inc., 5.50%, 06/01/2024(b) | | 865,000 | 828,237 |
| SBA Communications Corp., | | |
| 4.88%,07/15/2022 | | 79,000 | 80,284 |
| 4.88%,09/01/2024 | | 200,000 | 203,878 |
| | | | 2,887,476 |
| Specialty Chemicals–0.15% |
| Element Solutions Inc., 5.88%, 12/01/2025(b) | | 444,000 | 456,765 |
| GCP Applied Technologies, Inc., 5.50%, 04/15/2026(b) | | 458,000 | 466,739 |
| | | | 923,504 |
| Steel–0.28% |
| AK Steel Corp., 7.63%, 10/01/2021 | | 250,000 | 250,000 |
| Cleveland-Cliffs, Inc., 5.75%, 03/01/2025 | | 574,000 | 571,848 |
| United States Steel Corp., 6.88%, 08/15/2025 | | 951,000 | 897,173 |
| | | | 1,719,021 |
| Technology Hardware, Storage & Peripherals–0.10% |
| Dell International LLC/EMC Corp., 7.13%, 06/15/2024(b) | | 620,000 | 655,933 |
| | Principal
Amount | Value |
| Textiles–0.12% |
| Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC (China), 7.50%, 05/01/2025(b) | | $739,000 | $738,076 |
| Trading Companies & Distributors–0.47% |
| AerCap Global Aviation Trust (Ireland), 6.50% (3 mo. USD LIBOR + 4.30%), 06/15/2045(b)(e) | | 200,000 | 205,000 |
| BMC East, LLC, 5.50%, 10/01/2024(b) | | 576,000 | 581,040 |
| H&E Equipment Services, Inc., 5.63%, 09/01/2025 | | 213,000 | 216,994 |
| Herc Rentals, Inc., 7.75%, 06/01/2024(b) | | 338,000 | 359,657 |
| United Rentals North America, Inc., | | |
| 5.88%,09/15/2026 | | 600,000 | 628,500 |
| 6.50%,12/15/2026 | | 325,000 | 348,562 |
| 5.50%,05/15/2027 | | 85,000 | 87,763 |
| 5.25%,01/15/2030 | | 506,000 | 509,795 |
| | | | 2,937,311 |
| Trucking–0.06% |
| Avis Budget Car Rental LLC/Avis Budget Finance, Inc., | | |
| 6.38%,04/01/2024(b) | | 200,000 | 208,750 |
| 5.25%,03/15/2025(b) | | 180,000 | 179,325 |
| | | | 388,075 |
| Wireless Telecommunication Services–0.87% |
| Digicel Group One Ltd. (Jamaica), 8.25%, 12/30/2022(b) | | 207,000 | 137,862 |
| Digicel Group Two Ltd. (Jamaica), 8.25%, 09/30/2022(b) | | 196,000 | 77,420 |
| Intelsat Jackson Holdings S.A. (Luxembourg), | | |
| 5.50%,08/01/2023 | | 1,222,000 | 1,107,437 |
| 8.50%,10/15/2024(b) | | 404,000 | 400,717 |
| Oztel Holdings SPC Ltd. (Oman), 5.63%, 10/24/2023(b) | | 382,000 | 382,812 |
| Sprint Capital Corp., 8.75%, 03/15/2032 | | 267,000 | 281,018 |
| Sprint Communications, Inc., 11.50%, 11/15/2021 | | 235,000 | 271,425 |
| Sprint Corp., | | |
| 7.25%,09/15/2021 | | 1,104,000 | 1,159,200 |
| 7.88%,09/15/2023 | | 1,458,000 | 1,519,965 |
| 7.63%,02/15/2025 | | 84,000 | 85,050 |
| | | | 5,422,906 |
| Total U.S. Dollar Denominated Bonds & Notes (Cost $292,225,049) | 293,666,939 |
| | Shares | |
| Preferred Stocks–19.64% |
| Alternative Carriers–0.53% |
| Qwest Corp., 6.50%, Pfd. | 38,300 | 883,581 |
| Qwest Corp., 6.75%, Pfd. | 39,700 | 955,579 |
| Qwest Corp., 6.13%, Pfd. | 16,800 | 382,368 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 13 | Invesco Multi-Asset Income Fund |
| | Shares | Value |
| Alternative Carriers–(continued) |
| Qwest Corp., 6.88%, Pfd. | 19,700 | $503,729 |
| Qwest Corp., 6.63%, Pfd. | 23,200 | 572,344 |
| | | | 3,297,601 |
| Asset Management & Custody Banks–1.16% |
| Affiliated Managers Group, Inc., 5.88%, Pfd. | 11,100 | 280,941 |
| Apollo Global Management LLC, 6.38%, Series A, Pfd. | 11,400 | 286,938 |
| Apollo Global Management LLC, 6.38%, Series B, Pfd. | 11,600 | 291,624 |
| Apollo Investment Corp., 6.88%, Pfd. | 5,300 | 139,231 |
| Ares Management Corp., 7.00%, Series A, Pfd. | 11,900 | 312,018 |
| Bank of New York Mellon Corp. (The), 5.20%, Pfd. | 22,600 | 566,130 |
| BrightSphere Investment Group PLC, 5.13%, Pfd. | 5,400 | 127,440 |
| Carlyle Group L.P. (The), 5.88%, Series A, Pfd. | 15,100 | 351,226 |
| KKR & Co., Inc., 6.75%, Series A, Pfd. | 10,300 | 272,847 |
| KKR & Co., Inc., 6.50%, Series B, Pfd. | 10,300 | 271,508 |
| Legg Mason, Inc., 6.38%, Pfd. | 9,500 | 254,600 |
| Legg Mason, Inc., 5.45%, Pfd. | 19,900 | 496,505 |
| Northern Trust Corp., 5.85%, Series C, Pfd. | 16,200 | 412,290 |
| Oaktree Capital Group, LLC, 6.63%, Series A, Pfd. | 8,000 | 202,800 |
| Oaktree Capital Group, LLC, 6.55%, Series B, Pfd. | 9,300 | 234,267 |
| Prospect Capital Corp., 6.25%, Pfd. | 9,500 | 240,445 |
| State Street Corp., 5.35%, Series G, Pfd. | 25,600 | 658,432 |
| State Street Corp., 5.25%, Series C, Pfd. | 11,600 | 289,304 |
| State Street Corp., 5.90%, Series D, Pfd. | 20,900 | 550,088 |
| State Street Corp., 6.00%, Series E, Pfd. | 38,300 | 982,778 |
| | | | 7,221,412 |
| Consumer Finance–0.59% |
| Capital One Financial Corp., 5.20%, Series G, Pfd. | 36,400 | 906,724 |
| Capital One Financial Corp., 6.00%, Series H, Pfd. | 36,400 | 949,676 |
| Capital One Financial Corp., 6.00%, Series B, Pfd. | 15,200 | 385,776 |
| Capital One Financial Corp., 6.25%, Series C, Pfd. | 12,300 | 313,896 |
| Capital One Financial Corp., 6.70%, Series D, Pfd. | 17,200 | 443,932 |
| Capital One Financial Corp., 6.20%, Series F, Pfd. | 17,100 | 445,113 |
| Navient Corp., 6.00%, Pfd. | 12,200 | 264,374 |
| | | | 3,709,491 |
| Diversified Banks–5.38% |
| Bank of America Corp., 6.20%, Series CC, Pfd. | 49,800 | 1,308,744 |
| | Shares | Value |
| Diversified Banks–(continued) |
| Bank of America Corp., 6.00%, Series EE, Pfd. | ��� 45,900 | $1,204,875 |
| Bank of America Corp., 6.00%, Series GG, Pfd. | 48,900 | 1,304,652 |
| Bank of America Corp., 5.88%, Series HH, Pfd. | 39,700 | 1,041,728 |
| Bank of America Corp., 6.63%, Series W, Pfd. | 47,900 | 1,231,988 |
| Bank of America Corp., 6.50%, Series Y, Pfd. | 57,400 | 1,476,328 |
| Citigroup, Inc., 6.30%, Series S, Pfd. | 39,600 | 1,039,896 |
| Citigroup, Inc., 7.13%, Series J, Pfd. | 36,400 | 1,008,644 |
| Citigroup, Inc., 6.88%, Series K, Pfd. | 59,400 | 1,646,568 |
| ING Groep N.V., 6.38%, Pfd. | 30,000 | 758,700 |
| JPMorgan Chase & Co., 5.45%, Series P, Pfd. | 7,000 | 180,600 |
| JPMorgan Chase & Co., 6.30%, Series W, Pfd. | 12,300 | 318,447 |
| JPMorgan Chase & Co., 6.13%, Series Y, Pfd. | 50,500 | 1,308,960 |
| JPMorgan Chase & Co., 6.10%, Series AA, Pfd. | 76,800 | 2,014,464 |
| JPMorgan Chase & Co., 6.15%, Series BB, Pfd. | 82,400 | 2,172,888 |
| JPMorgan Chase & Co., 5.75%, Series DD, Pfd. | 73,500 | 1,948,485 |
| JPMorgan Chase & Co., 6.00%, Series EE, Pfd. | 71,500 | 1,910,480 |
| US Bancorp, 5.50%, Series K, Pfd. | 20,900 | 542,564 |
| US Bancorp, 6.50%, Series F, Pfd. | 65,500 | 1,752,125 |
| Wells Fargo & Co., 5.70%, Series W, Pfd. | 26,600 | 685,216 |
| Wells Fargo & Co., 5.50%, Series X, Pfd. | 67,500 | 1,727,325 |
| Wells Fargo & Co., 5.63%, Series Y, Pfd. | 38,300 | 981,246 |
| Wells Fargo & Co., 5.20%, Pfd. | 59,600 | 1,488,212 |
| Wells Fargo & Co., 5.13%, Series O, Pfd. | 49,800 | 1,233,048 |
| Wells Fargo & Co., 5.25%, Series P, Pfd. | 19,100 | 478,837 |
| Wells Fargo & Co., 5.85%, Series Q, Pfd. | 24,700 | 649,610 |
| Wells Fargo & Co., 6.63%, Series R, Pfd. | 24,700 | 688,389 |
| Wells Fargo & Co., 6.00%, Series T, Pfd. | 34,500 | 888,030 |
| Wells Fargo & Co., 6.00%, Series V, Pfd. | 22,500 | 592,650 |
| | | | 33,583,699 |
| Diversified Capital Markets–0.34% |
| Deutsche Bank Contingent Capital Trust V, 8.05%, Pfd. | 83,600 | 2,139,324 |
| Diversified REITs–0.31% |
| PS Business Parks, Inc., 5.20%, Series W, Pfd. | 11,100 | 269,175 |
| PS Business Parks, Inc., 5.25%, Series X, Pfd. | 8,100 | 200,070 |
| PS Business Parks, Inc., 5.20%, Series Y, Pfd. | 8,200 | 197,784 |
| PS Business Parks, Inc., 5.75%, Series U, Pfd. | 8,900 | 226,416 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 | Invesco Multi-Asset Income Fund |
| | Shares | Value |
| Diversified REITs–(continued) |
| VEREIT, Inc., 6.70%, Series F, Pfd. | 41,000 | $1,029,510 |
| | | | 1,922,955 |
| Electric Utilities–1.41% |
| Alabama Power Co., 5.00%, Series A, Pfd. | 11,600 | 306,124 |
| Duke Energy Corp., 5.75%, Series A, Pfd. | 39,700 | 1,032,994 |
| Entergy Arkansas LLC, 4.88%, Pfd. | 16,300 | 411,738 |
| Entergy Arkansas LLC, 4.90%, Pfd. | 8,800 | 226,248 |
| Entergy Louisiana, LLC, 4.88%, Pfd. | 14,100 | 356,025 |
| Entergy Louisiana, LLC, 5.25%, Pfd. | 10,500 | 265,545 |
| Entergy Mississippi, Inc., 4.90%, Pfd. | 13,600 | 344,760 |
| Entergy Texas, Inc., 5.63%, Pfd. | 7,000 | 181,790 |
| Georgia Power Co., 5.00%, Series 2017A, Pfd. | 12,000 | 305,760 |
| Interstate Power & Light Co., 5.10%, Series D, Pfd. | 9,000 | 229,410 |
| NextEra Energy Capital Holdings, Inc., 5.65%, Series N, Pfd. | 27,300 | 701,610 |
| PPL Capital Funding, Inc., 5.90%, Series B, Pfd. | 17,400 | 442,830 |
| SCE Trust III, 5.75%, Series H, Pfd. | 9,000 | 219,600 |
| SCE Trust IV, 5.38%, Series J, Pfd. | 20,300 | 470,351 |
| SCE Trust V, 5.45%, Series K, Pfd. | 15,500 | 363,940 |
| SCE Trust VI, 5.00%, Pfd. | 32,200 | 700,350 |
| Southern Co. (The), 5.25%, Pfd. | 40,200 | 1,025,100 |
| Southern Co. (The), 5.25%, Pfd. | 18,500 | 465,645 |
| Southern Co. (The), 6.25%, Pfd. | 28,100 | 733,410 |
| | | | 8,783,230 |
| Health Care REITs–0.08% |
| Senior Housing Properties Trust, 5.63%, Pfd. | 24,200 | 520,300 |
| Industrial Machinery–0.12% |
| Stanley Black & Decker, Inc., 5.75%, Investment Units | 28,700 | 723,527 |
| Integrated Telecommunication Services–0.34% |
| AT&T, Inc., 5.35%, Pfd. | 51,600 | 1,323,540 |
| AT&T, Inc., 5.63%, Pfd. | 31,600 | 818,124 |
| | | | 2,141,664 |
| Internet & Direct Marketing Retail–0.12% |
| eBay, Inc., 6.00%, Pfd. | 29,100 | 754,854 |
| Investment Banking & Brokerage–1.43% |
| Charles Schwab Corp. (The), 5.95%, Series D, Pfd. | 31,600 | 825,392 |
| Charles Schwab Corp. (The), 6.00%, Series C, Pfd. | 21,300 | 558,699 |
| Goldman Sachs Group, Inc. (The), 6.30%, Series N, Pfd. | 40,200 | 1,049,622 |
| Goldman Sachs Group, Inc. (The), 5.50%, Series J, Pfd. | 19,200 | 499,200 |
| | Shares | Value |
| Investment Banking & Brokerage–(continued) |
| Goldman Sachs Group, Inc. (The), 6.38%, Series K, Pfd. | 38,300 | $1,032,951 |
| Morgan Stanley, 5.85%, Series K, Pfd. | 50,600 | 1,328,756 |
| Morgan Stanley, 7.13%, Series E, Pfd. | 11,400 | 316,350 |
| Morgan Stanley, 6.88%, Series F, Pfd. | 25,700 | 708,292 |
| Morgan Stanley, 6.63%, Series G, Pfd. | 17,600 | 448,272 |
| Morgan Stanley, 6.38%, Series I, Pfd. | 59,600 | 1,613,372 |
| Stifel Financial Corp., 6.25%, Series A, Pfd. | 6,500 | 172,900 |
| Stifel Financial Corp., 5.20%, Pfd. | 9,300 | 226,641 |
| Stifel Financial Corp., 6.25%, Series B, Pfd. | 5,700 | 149,169 |
| | | | 8,929,616 |
| Leisure Products–0.09% |
| Brunswick Corp., 6.50%, Pfd. | 7,000 | 182,560 |
| Brunswick Corp., 6.63%, Pfd. | 4,700 | 122,952 |
| Brunswick Corp., 6.38%, Pfd. | 9,800 | 254,310 |
| | | | 559,822 |
| Life & Health Insurance–0.92% |
| Aegon N.V., 6.38%, Pfd. | 31,600 | 810,540 |
| Aegon N.V., 6.50%, Pfd. | 14,000 | 354,480 |
| Brighthouse Financial, Inc., 6.25%, Pfd. | 13,200 | 338,712 |
| Brighthouse Financial, Inc., 6.60%, Series A, Pfd. | 15,900 | 419,919 |
| MetLife, Inc., 5.63%, Series E, Pfd. | 31,100 | 812,332 |
| Prudential Financial, Inc., 5.63%, Pfd. | 23,800 | 619,276 |
| Prudential Financial, Inc., 5.75%, Pfd. | 18,500 | 467,680 |
| Prudential Financial, Inc., 5.70%, Pfd. | 29,700 | 749,925 |
| Prudential PLC, 6.75%, Pfd. | 17,100 | 447,165 |
| Prudential PLC, 6.50%, Pfd. | 4,300 | 113,176 |
| Torchmark Corp., 6.13%, Pfd. | 11,200 | 297,472 |
| Unum Group, 6.25%, Pfd. | 11,600 | 302,876 |
| | | | 5,733,553 |
| Mortgage REITs–0.05% |
| Wells Fargo Real Estate Investment Corp., 6.38%, Series A, Pfd. | 12,300 | 317,217 |
| Multi-line Insurance–0.31% |
| American Financial Group, Inc., 6.00%, Pfd. | 10,600 | 278,144 |
| American Financial Group, Inc., 5.88%, Pfd. | 6,000 | 157,740 |
| American International Group, Inc., 5.85%, Series A, Pfd. | 19,900 | 517,400 |
| Hartford Financial Services Group, Inc. (The), 7.88%, Pfd. | 24,000 | 663,600 |
| Hartford Financial Services Group, Inc. (The), 6.00%, Series G, Pfd. | 12,700 | 333,629 |
| | | | 1,950,513 |
| Multi-Sector Holdings–0.11% |
| PartnerRe Ltd., 7.25%, Series H, Pfd. | 24,800 | 662,656 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 15 | Invesco Multi-Asset Income Fund |
| | Shares | Value |
| Multi-Utilities–0.36% |
| CMS Energy Corp., 5.63%, Pfd. | 8,600 | $226,008 |
| CMS Energy Corp., 5.88%, Pfd. | 10,700 | 284,192 |
| CMS Energy Corp., 5.88%, Pfd. | 24,500 | 640,675 |
| DTE Energy Co., 5.25%, Pfd. | 5,000 | 126,400 |
| Integrys Holding, Inc., 6.00%, Pfd. | 17,750 | 462,387 |
| NiSource, Inc., 6.50%, Series B, Pfd. | 19,900 | 524,962 |
| | | | 2,264,624 |
| Office REITs–0.22% |
| Boston Properties, Inc., 5.25%, Series B, Pfd. | 9,000 | 228,060 |
| SL Green Realty Corp., 6.50%, Series I, Pfd. | 9,900 | 253,638 |
| Vornado Realty Trust, 5.40%, Series L, Pfd. | 35,200 | 869,088 |
| | | | 1,350,786 |
| Office Services & Supplies–0.06% |
| Pitney Bowes, Inc., 6.70%, Pfd. | 16,100 | 386,078 |
| Oil & Gas Refining & Marketing–0.13% |
| NuStar Energy L.P., 8.50%, Series A, Pfd. | 26,800 | 628,728 |
| NuStar Energy L.P., 9.00%, Series C, Pfd. | 7,700 | 182,259 |
| | | | 810,987 |
| Oil & Gas Storage & Transportation–0.31% |
| DCP Midstream, L.P., 7.88%, Series B, Pfd. | 7,100 | 175,725 |
| DCP Midstream, L.P., 7.95%, Series C, Pfd. | 4,200 | 104,328 |
| Enbridge Inc., 6.38%, Series B, Pfd. | 23,400 | 618,462 |
| Energy Transfer Operating L.P., 7.63%, Series D, Pfd. | 17,700 | 439,314 |
| Energy Transfer Partners, L.P., 7.38%, Series C, Pfd. | 17,400 | 426,822 |
| Targa Resources Partners L.P., 9.00%, Series A, Pfd. | 6,200 | 170,438 |
| | | | 1,935,089 |
| Property & Casualty Insurance–1.02% |
| Allstate Corp. (The), 5.63%, Series G, Pfd. | 30,800 | 790,020 |
| Allstate Corp. (The), 5.10%, Pfd. | 17,900 | 455,555 |
| Allstate Corp. (The), 5.63%, Series A, Pfd. | 6,600 | 169,950 |
| Allstate Corp. (The), 6.63%, Series E, Pfd. | 28,200 | 716,280 |
| Allstate Corp. (The), 6.25%, Series F, Pfd. | 15,900 | 411,492 |
| Arch Capital Group Ltd., 5.25%, Series E, Pfd. | 15,100 | 353,642 |
| Arch Capital Group Ltd., 5.45%, Series F, Pfd. | 14,800 | 362,008 |
| Argo Group U.S., Inc., 6.50%, Pfd. | 6,800 | 174,624 |
| Aspen Insurance Holdings Ltd., 5.63%, Pfd. | 11,500 | 286,235 |
| | Shares | Value |
| Property & Casualty Insurance–(continued) |
| Aspen Insurance Holdings Ltd., 5.95%, Pfd. | 9,000 | $237,420 |
| Assured Guaranty Municipal Holdings, Inc., 6.25%, Pfd. | 17,300 | 451,011 |
| AXIS Capital Holdings Ltd., 5.50%, Series E, Pfd. | 29,000 | 711,370 |
| Hanover Insurance Group, Inc. (The), 6.35%, Pfd. | 6,600 | 169,686 |
| Kemper Corp., 7.38%, Pfd. | 5,900 | 150,863 |
| W. R. Berkley Corp., 5.75%, Pfd. | 17,100 | 431,433 |
| W. R. Berkley Corp., 5.63%, Pfd. | 11,600 | 290,928 |
| WR Berkley Corp., 5.70%, Pfd. | 8,000 | 201,280 |
| | | | 6,363,797 |
| Real Estate Operating Companies–0.03% |
| Brookfield Property Partners L.P., 6.50%, Series A, Pfd. | 6,400 | 160,640 |
| Regional Banks–2.01% |
| Associated Banc-Corp., 5.88%, Series E, Pfd. | 4,300 | 111,542 |
| BB&T Corp., 5.63%, Series H, Pfd. | 60,600 | 1,577,418 |
| BB&T Corp., 5.85%, Series D, Pfd. | 11,300 | 287,585 |
| BB&T Corp., 5.63%, Series E, Pfd. | 45,900 | 1,170,450 |
| BB&T Corp., 5.20%, Series G, Pfd. | 5,000 | 124,050 |
| BOK Financial Corp., 5.38%, Pfd. | 7,100 | 182,612 |
| Citizens Financial Group, Inc., 6.35%, Series D, Pfd. | 11,600 | 306,124 |
| Commerce Bancshares, Inc., 6.00%, Series B, Pfd. | 6,900 | 182,712 |
| Cullen/Frost Bankers, Inc., 5.38%, Pfd. | 7,100 | 186,517 |
| Fifth Third Bancorp, 6.63%, Series I, Pfd. | 17,900 | 514,267 |
| First Horizon National Corp., 6.20%, Series A, Pfd. | 4,500 | 118,125 |
| First Republic Bank, 5.50%, Series G, Pfd. | 5,600 | 142,352 |
| First Republic Bank, 5.13%, Series H, Pfd. | 7,900 | 197,895 |
| First Republic Bank, 5.50%, Series I, Pfd. | 11,900 | 301,308 |
| First Republic Bank, 5.50%, Series D, Pfd. | 7,500 | 192,150 |
| First Republic Bank, 5.70%, Series F, Pfd. | 3,700 | 96,792 |
| FNB Corp., 7.25%, Pfd. | 5,600 | 158,480 |
| Hancock Whitney Corp., 5.95%, Pfd. | 5,300 | 139,390 |
| Huntington Bancshares, Inc., 6.25%, Series D, Pfd. | 19,900 | 517,798 |
| Huntington Bancshares, Inc., 5.88%, Series C, Pfd. | 8,200 | 217,628 |
| KeyCorp, 6.13%, Series E, Pfd. | 19,900 | 543,071 |
| KeyCorp, 5.65%, Series F, Pfd. | 16,000 | 402,240 |
| MB Financial, Inc., 6.00%, Series C, Pfd. | 8,200 | 201,474 |
| People’s United Financial, Inc., 5.63%, Series A, Pfd. | 9,500 | 245,100 |
| PNC Financial Services Group, Inc. (The), 6.13%, Series P, Pfd. | 71,400 | 1,899,954 |
| PNC Financial Services Group, Inc. (The), 5.38%, Series Q, Pfd. | 5,500 | 138,270 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 16 | Invesco Multi-Asset Income Fund |
| | Shares | Value |
| Regional Banks–(continued) |
| Regions Financial Corp., 6.38%, Series A, Pfd. | 14,300 | $366,366 |
| Regions Financial Corp., 6.38%, Series B, Pfd. | 24,700 | 686,166 |
| Synovus Financial Corp., 6.30%, Series D, Pfd. | 8,600 | 230,394 |
| TCF Financial Corp., 5.70%, Series C, Pfd. | 6,900 | 172,776 |
| Texas Capital Bancshares, Inc., 6.50%, Series A, Pfd. | 10,100 | 263,711 |
| Valley National Bancorp, 5.50%, Series B, Pfd. | 3,900 | 98,748 |
| Valley National Bancorp, 6.25%, Series A, Pfd. | 4,700 | 130,613 |
| Webster Financial Corp., 5.25%, Series F, Pfd. | 5,300 | 129,320 |
| Wintrust Financial Corp., 6.50%, Series D, Pfd. | 5,400 | 150,768 |
| Zions Bancorp., 6.30%, Series G, Pfd. | 5,300 | 146,810 |
| | | | 12,530,976 |
| Reinsurance–0.32% |
| Enstar Group Ltd., 7.00%, Series D, Pfd. | 16,200 | 418,770 |
| Enstar Group Ltd., 7.00%, Series E, Pfd. | 4,100 | 106,026 |
| Reinsurance Group of America, Inc., 5.75%, Pfd. | 19,900 | 537,897 |
| Reinsurance Group of America, Inc., 6.20%, Pfd. | 11,600 | 310,532 |
| RenaissanceRe Holdings Ltd., 5.75%, Series F, Pfd. | 11,800 | 299,130 |
| RenaissanceRe Holdings Ltd., 5.38%, Series E, Pfd. | 14,100 | 350,244 |
| | | | 2,022,599 |
| Residential REITs–0.14% |
| American Homes 4 Rent, 5.88%, Series F, Pfd. | 6,300 | 156,555 |
| American Homes 4 Rent, 5.88%, Series G, Pfd. | 4,500 | 112,275 |
| American Homes 4 Rent, 6.50%, Series D, Pfd. | 10,600 | 280,370 |
| American Homes 4 Rent, 6.35%, Series E, Pfd. | 9,100 | 240,240 |
| American Homes 4 Rent, 6.25%, Series H, Pfd. | 4,000 | 102,240 |
| | | | 891,680 |
| Retail REITs–0.44% |
| CBL & Associates Properties, Inc., 7.38%, Series D, Pfd. | 22,100 | 172,159 |
| Federal Realty Investment Trust, 5.00%, Series C, Pfd. | 6,600 | 158,928 |
| Kimco Realty Corp., 5.13%, Series L, Pfd. | 13,800 | 322,230 |
| Kimco Realty Corp., 5.25%, Class M, Pfd. | 13,800 | 320,298 |
| Kimco Realty Corp., 6.00%, Series I, Pfd. | 3,762 | 95,141 |
| Kimco Realty Corp., 5.50%, Series J, Pfd. | 9,900 | 243,243 |
| National Retail Properties, Inc., 5.20%, Series F, Pfd. | 14,100 | 338,541 |
| | Shares | Value |
| Retail REITs–(continued) |
| National Retail Properties, Inc., 5.70%, Series E, Pfd. | 11,200 | $277,760 |
| SITE Centers Corp., 6.50%, Series J, Pfd. | 8,800 | 223,608 |
| SITE Centers Corp., 6.38%, Series A, Pfd. | 11,600 | 295,452 |
| Spirit Realty Capital, Inc., 6.00%, Series A, Pfd. | 7,800 | 189,774 |
| Washington Prime Group, Inc., 7.50%, Series H, Pfd. | 4,400 | 94,600 |
| | | | 2,731,734 |
| Specialized REITs–0.83% |
| Digital Realty Trust, Inc., 5.25%, Series J, Pfd. | 13,100 | 322,915 |
| Digital Realty Trust, Inc., 6.63%, Series C, Pfd. | 8,400 | 224,448 |
| Digital Realty Trust, Inc., 5.88%, Series G, Pfd. | 10,600 | 267,120 |
| Digital Realty Trust, Inc., 5.85%, Series K, Pfd. | 10,900 | 278,168 |
| EPR Properties, 5.75%, Series G, Pfd. | 6,300 | 154,728 |
| Public Storage, 5.40%, Series B, Pfd. | 24,900 | 629,970 |
| Public Storage, 5.13%, Series C, Pfd. | 24,300 | 598,995 |
| Public Storage, 4.95%, Series D, Pfd. | 30,600 | 744,192 |
| Public Storage, 4.90%, Series E, Pfd. | 32,500 | 773,175 |
| Public Storage, 5.15%, Series F, Pfd. | 9,700 | 239,299 |
| Public Storage, 5.05%, Series G, Pfd. | 11,600 | 288,028 |
| Public Storage, 5.88%, Series A, Pfd. | 8,400 | 213,696 |
| Public Storage, 5.20%, Series W, Pfd. | 7,700 | 190,344 |
| Public Storage, 5.60%, Series H, Pfd. | 10,900 | 283,727 |
| | | | 5,208,805 |
| Specialty Stores–0.04% |
| QVC, Inc., 6.38%, Pfd. | 10,000 | 244,900 |
| Thrifts & Mortgage Finance–0.09% |
| New York Community Bancorp, Inc., 6.38%, Series A, Pfd. | 20,500 | 544,275 |
| Trading Companies & Distributors–0.07% |
| Air Lease Corp., 6.15%, Series A, Pfd. | 9,600 | 252,000 |
| GATX Corp., 5.63%, Pfd. | 6,800 | 179,656 |
| | | | 431,656 |
| Wireless Telecommunication Services–0.28% |
| Telephone and Data Systems, Inc., 7.00%, Pfd. | 20,900 | 530,860 |
| Telephone and Data Systems, Inc., 5.88%, Pfd. | 10,600 | 247,298 |
| Telephone and Data Systems, Inc., 6.88%, Pfd. | 6,500 | 165,945 |
| United States Cellular Corp., 7.25%, Pfd. | 12,300 | 325,212 |
| United States Cellular Corp., 6.95%, Pfd. | 5,300 | 132,924 |
| United States Cellular Corp., 7.25%, Pfd. | 13,200 | 347,292 |
| | | | 1,749,531 |
| Total Preferred Stocks (Cost $122,109,260) | 122,579,591 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 17 | Invesco Multi-Asset Income Fund |
| | Shares | Value |
| Common Stocks & Other Equity Interests–8.93% |
| Industrial REITs–0.50% |
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 118,396 | $3,148,150 |
| Mortgage REITs–8.43% |
| AG Mortgage Investment Trust, Inc. | 61,818 | 1,057,706 |
| AGNC Investment Corp. | 151,790 | 2,700,344 |
| Annaly Capital Management, Inc. | 383,925 | 3,873,803 |
| Anworth Mortgage Asset Corp. | 124,061 | 519,816 |
| Apollo Commercial Real Estate Finance, Inc. | 144,692 | 2,711,528 |
| Arbor Realty Trust, Inc. | 226,649 | 3,096,025 |
| Ares Commercial Real Estate Corp. | 37,561 | 570,927 |
| Blackstone Mortgage Trust, Inc., Class A | 93,605 | 3,331,402 |
| Capstead Mortgage Corp. | 144,463 | 1,240,937 |
| Cherry Hill Mortgage Investment Corp. | 29,583 | 510,603 |
| Chimera Investment Corp. | 174,094 | 3,337,382 |
| Dynex Capital, Inc. | 90,170 | 550,037 |
| Ellington Residential Mortgage REIT | 50,382 | 595,515 |
| Granite Point Mortgage Trust, Inc. | 57,970 | 1,114,763 |
| KKR Real Estate Finance Trust, Inc. | 53,605 | 1,081,213 |
| Ladder Capital Corp. | 156,849 | 2,729,173 |
| MFA Financial, Inc. | 382,999 | 2,876,323 |
| New Residential Investment Corp. | 188,124 | 3,162,364 |
| New York Mortgage Trust, Inc. | 173,171 | 1,090,977 |
| Orchid Island Capital, Inc. | 163,798 | 1,076,153 |
| PennyMac Mortgage Investment Trust | 131,108 | 2,753,268 |
| Ready Capital Corp. | 36,453 | 550,805 |
| Redwood Trust, Inc. | 165,538 | 2,708,202 |
| Starwood Property Trust, Inc. | 149,896 | 3,455,103 |
| TPG RE Finance Trust, Inc. | 136,909 | 2,698,476 |
| Two Harbors Investment Corp. | 190,161 | 2,635,631 |
| Western Asset Mortgage Capital Corp. | 53,342 | 561,158 |
| | | | 52,589,634 |
| Total Common Stocks & Other Equity Interests (Cost $52,683,531) | 55,737,784 |
| | Principal
Amount | |
| Exchange-Traded Notes–8.81% |
| ETRACS Alerian MLP Infrastructure Index ETN (linked to the Alerian MLP Infrastructure Index – 0.21%), 7.02%, 04/02/2040(e) | | $1,195,000 | 26,349,750 |
| JPMorgan Alerian MLP Index ETN (linked to the Alerian MLP Index – 0.21%), 7.20%, 05/24/2024(e) | 1,140,000 | 28,591,200 |
| Total Exchange-Traded Notes (Cost $59,130,518) | 54,940,950 |
| | Principal
Amount | Value |
| U.S. Treasury Securities–8.56% |
| U.S. Treasury Bills–0.05% |
| 2.43%, 06/27/2019(f)(g) | | $300,000 | $298,860 |
| U.S. Treasury STRIPS–8.51% |
| 3.00%, 11/15/2047(f)(g) | | 124,200,000 | 53,100,843 |
| Total U.S. Treasury Securities (Cost $47,827,604) | 53,399,703 |
| | Shares | |
| Exchange-Traded Funds–1.32% |
Vanguard Real Estate ETF
(Cost $ 7,751,973) | 95,000 | 8,243,150 |
| | Principal
Amount | |
| Non-U.S. Dollar Denominated Bonds & Notes–0.18%(h) |
| Brewers–0.03% |
| Sunshine Mid B.V. (Netherlands) 6.50%, 05/15/2026(b) | EUR | 200,000 | 231,719 |
| Diversified Banks–0.08% |
| CaixaBank, S.A. (Spain), REGS 6.75%(b)(c) | EUR | 200,000 | 240,729 |
| Erste Group Bank AG (Austria), REGS 6.50%(b)(c) | EUR | 200,000 | 252,506 |
| | | | 493,235 |
| Food Retail–0.05% |
| Iceland Bondco PLC (United Kingdom) 4.63%, 03/15/2025(b) | GBP | 250,000 | 301,167 |
| Textiles–0.02% |
| Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC (China) 5.38%, 05/01/2023(b) | EUR | 100,000 | 114,133 |
| Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $1,204,488) | 1,140,254 |
| | Shares | |
| Money Market Funds–4.88% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(i) | 10,663,514 | 10,663,514 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(i) | 7,614,874 | 7,617,159 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(i) | 12,186,873 | 12,186,873 |
| Total Money Market Funds (Cost $30,466,922) | 30,467,546 |
| TOTAL INVESTMENTS IN SECURITIES–99.38% (Cost $613,399,345) | 620,175,917 |
| OTHER ASSETS LESS LIABILITIES–0.62% | 3,872,107 |
| NET ASSETS–100.00% | $624,048,024 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 18 | Invesco Multi-Asset Income Fund |
Investment Abbreviations:
| ETF | – Exchange-Traded Fund |
| ETN | – Exchange Traded Notes |
| EUR | – Euro |
| GBP | – British Pound Sterling |
| LIBOR | – London Interbank Offered Rate |
| MLP | – Master Limited Partnership |
| Pfd. | – Preferred |
| PIK | – Pay-in-Kind |
| REGS | – Regulation S |
| REIT | – Real Estate Investment Trust |
| STRIPS | – Separately Traded Registered Interest and Principal Security |
| UK | – United Kingdom |
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 April 30, 2019 was $154,893,250, which represented 24.82% of the Fund’s Net Assets. |
| (c) | Perpetual bond with no specified maturity date. |
| (d) | All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
| (e) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2019. |
| (f) | All or a portion of the value was pledged and/or designated as collateral to cover margin requirements for open futures contracts and swap agreements. See Note 1M and 1P. |
| (g) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
| (h) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
| (i) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
| Open Futures Contracts |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Equity Risk |
| E-Mini Russell 2000 Index | 177 | June-2019 | $14,108,670 | $572,593 | $572,593 |
| E-Mini S&P 500 Index | 183 | June-2019 | 26,978,775 | 1,703,578 | 1,703,578 |
| EURO STOXX 50 Index | 890 | June-2019 | 34,458,710 | 1,966,010 | 1,966,010 |
| FTSE 100 Index | 369 | June-2019 | 35,469,897 | 1,419,146 | 1,419,146 |
| Hang Seng Index | 62 | May-2019 | 11,644,758 | 26,087 | 26,087 |
| Tokyo Stock Price Index | 133 | June-2019 | 19,282,284 | 148,428 | 148,428 |
| Subtotal | 5,835,842 | 5,835,842 |
| Interest Rate Risk |
| Long Gilt | 163 | June-2019 | 27,062,126 | (70,010) | (70,010) |
| U.S. Treasury Long Bonds | 39 | June-2019 | 5,751,281 | (31,771) | (31,771) |
| Subtotal | (101,781) | (101,781) |
| Total Futures Contracts | $5,734,061 | $5,734,061 |
| Open Forward Foreign Currency Contracts |
Settlement
Date | Counterparty | Contract to | Unrealized
Appreciation |
| Deliver | Receive |
| Currency Risk | | | | | | |
| 05/28/2019 | Citibank N.A. | GBP | 164,512 | USD | 214,823 | $3 |
| 05/28/2019 | Goldman Sachs International | EUR | 1,115,981 | USD | 1,274,381 | 19,985 |
| Total Forward Foreign Currency Contracts | $19,988 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 19 | Invesco Multi-Asset Income Fund |
| Open Centrally Cleared Credit Default Swap Agreements |
| Reference Entity | Buy/Sell
Protection | (Pay)/
Receive
Fixed
Rate | Payment
Frequency | Maturity Date | Implied
Credit
Spread(a) | Notional Value | Upfront
Payments Paid
(Received) | Value | Unrealized
Appreciation(b) |
| Credit Risk |
| Markit CDX North America High Yield Index, Series 31, Version 1 | Buy | 5.00% | Quarterly | 12/20/2023 | 2.923% | USD | 2,425,000 | $75,803 | $203,804 | $128,001 |
| (a) | Implied credit spreads represent the current level, as of April 30, 2019, 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. |
| (b) | The daily variation margin receivable at period end is recorded in the Statement of Assets and Liabilities. |
| Abbreviations: |
| EUR | —Euro |
| GBP | —British Pound Sterling |
| USD | —U.S. Dollar |
Portfolio Composition
By security type, based on Net Assets
as of April 30, 2019
| U.S. Dollar Denominated Bonds & Notes | 47.06% |
| Preferred Stocks | 19.64 |
| Common Stocks & Other Equity Interests | 8.93 |
| Exchange-Traded Notes | 8.81 |
| U.S. Treasury Securities | 8.56 |
| Exchange-Traded Fund | 1.32 |
| Security types each less than 1% of portfolio | 0.18 |
| Money Market Funds Plus Other Assets Less Liabilities | 5.50 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 20 | Invesco Multi-Asset Income Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $582,932,423) | $589,708,371 |
| Investments in affiliated money market funds, at value (Cost $30,466,922) | 30,467,546 |
| Other investments: | |
| Variation margin receivable—centrally cleared swap agreements | 1,514 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 19,988 |
| Deposits with brokers: | |
| Cash collateral — centrally cleared swap agreements | 38,100 |
| Foreign currencies, at value (Cost $525,649) | 532,615 |
| Receivable for: | |
| Fund shares sold | 1,754,135 |
| Dividends | 297,331 |
| Interest | 3,678,749 |
| Investment for trustee deferred compensation and retirement plans | 34,152 |
| Other assets | 45,386 |
| Total assets | 626,577,887 |
| Liabilities: | |
| Other investments: | |
| Variation margin payable - futures contracts | 125,417 |
| Payable for: | |
| Investments purchased | 780,050 |
| Fund shares reacquired | 873,515 |
| Amount due custodian | 176,600 |
| Accrued fees to affiliates | 245,457 |
| Accrued trustees’ and officers’ fees and benefits | 2,320 |
| Accrued other operating expenses | 287,809 |
| Trustee deferred compensation and retirement plans | 38,695 |
| Total liabilities | 2,529,863 |
| Net assets applicable to shares outstanding | $624,048,024 |
| Net assets consist of: | |
| Shares of beneficial interest | $640,916,360 |
| Distributable earnings | (16,868,336) |
| | $624,048,024 |
| Net Assets: |
| Class A | $149,719,528 |
| Class C | $91,809,628 |
| Class R | $2,915,503 |
| Class Y | $324,181,202 |
| Class R5 | $111,987 |
| Class R6 | $55,310,176 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 14,079,008 |
| Class C | 8,640,801 |
| Class R | 274,209 |
| Class Y | 30,479,594 |
| Class R5 | 10,524 |
| Class R6 | 5,200,066 |
| Class A: | |
| Net asset value per share | $10.63 |
Maximum offering price per share
(Net asset value of $10.63 ÷ 94.50%) | $11.25 |
| Class C: | |
| Net asset value and offering price per share | $10.63 |
| Class R: | |
| Net asset value and offering price per share | $10.63 |
| Class Y: | |
| Net asset value and offering price per share | $10.64 |
| Class R5: | |
| Net asset value and offering price per share | $10.64 |
| Class R6: | |
| Net asset value and offering price per share | $10.64 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 21 | Invesco Multi-Asset Income Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Interest | $9,443,795 |
| Dividends | 7,907,682 |
| Dividends from affiliated money market funds | 249,328 |
| Total investment income | 17,600,805 |
| Expenses: | |
| Advisory fees | 1,384,399 |
| Administrative services fees | 51,972 |
| Custodian fees | 5,676 |
| Distribution fees: | |
| Class A | 165,843 |
| Class C | 424,601 |
| Class R | 6,380 |
| Transfer agent fees — A, C, R and Y | 323,089 |
| Transfer agent fees — R5 | 85 |
| Transfer agent fees — R6 | 860 |
| Trustees’ and officers’ fees and benefits | 15,105 |
| Registration and filing fees | 54,140 |
| Licensing fees | 126,101 |
| Reports to shareholders | 24,153 |
| Professional services fees | 29,621 |
| Other | 44,695 |
| Total expenses | 2,656,720 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (391,665) |
| Net expenses | 2,265,055 |
| Net investment income | 15,335,750 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (8,418,996) |
| Foreign currencies | 22,719 |
| Forward foreign currency contracts | 76,121 |
| Futures contracts | (4,058,471) |
| Option contracts written | 56,496 |
| Swap agreements | (108,502) |
| | (12,430,633) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | 32,109,784 |
| Foreign currencies | (2,362) |
| Forward foreign currency contracts | (54,445) |
| Futures contracts | 12,680,188 |
| Swap agreements | 206,281 |
| | 44,939,446 |
| Net realized and unrealized gain | 32,508,813 |
| Net increase in net assets resulting from operations | $47,844,563 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 22 | Invesco Multi-Asset Income Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $15,335,750 | $30,272,833 |
| Net realized gain (loss) | (12,430,633) | (9,527,766) |
| Change in net unrealized appreciation (depreciation) | 44,939,446 | (40,573,906) |
| Net increase (decrease) in net assets resulting from operations | 47,844,563 | (19,828,839) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (4,028,541) | (9,472,855) |
| Class C | (2,278,310) | (4,242,332) |
| Class R | (74,706) | (111,408) |
| Class Y | (9,097,684) | (19,669,652) |
| Class R5 | (4,209) | (4,901) |
| Class R6 | (1,715,754) | (3,632,822) |
| Total distributions to shareholders from distributable earnings | (17,199,204) | (37,133,970) |
| Share transactions–net: | | |
| Class A | 10,390,052 | (44,754,951) |
| Class C | 1,806,213 | 18,810,856 |
| Class R | 551,667 | 801,652 |
| Class Y | 20,546,998 | (11,409,554) |
| Class R5 | (43,851) | 126,787 |
| Class R6 | (1,579,051) | (2,001,854) |
| Net increase (decrease) in net assets resulting from share transactions | 31,672,028 | (38,427,064) |
| Net increase (decrease) in net assets | 62,317,387 | (95,389,873) |
| Net assets: | | |
| Beginning of period | 561,730,637 | 657,120,510 |
| End of period | $624,048,024 | $561,730,637 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 23 | Invesco Multi-Asset Income Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $10.07 | $0.28 | $0.59 | $0.87 | $(0.31) | $— | $(0.31) | $10.63 | 8.81% | $149,720 | 0.85%(d) | 1.00%(d) | 5.43%(d) | 34% |
| Year ended 10/31/18 | 11.01 | 0.51 | (0.84) | (0.33) | (0.52) | (0.09) | (0.61) | 10.07 | (3.13) | 131,971 | 0.85 | 1.00 | 4.76 | 59 |
| Year ended 10/31/17 | 10.51 | 0.49 | 0.50 | 0.99 | (0.49) | — | (0.49) | 11.01 | 9.64 | 191,395 | 0.86 | 1.06 | 4.53 | 40 |
| Year ended 10/31/16 | 10.09 | 0.47 | 0.45 | 0.92 | (0.50) | — | (0.50) | 10.51 | 9.44 | 91,585 | 1.04 | 1.28 | 4.60 | 101 |
| Year ended 10/31/15 | 10.37 | 0.46 | (0.25) | 0.21 | (0.49) | — | (0.49) | 10.09 | 2.02 | 52,613 | 0.99 | 1.27 | 4.52 | 120 |
| Year ended 10/31/14 | 10.04 | 0.48 | 0.37 | 0.85 | (0.52) | — | (0.52) | 10.37 | 8.66 | 42,104 | 0.88 | 1.28 | 4.69 | 89 |
| Class C |
| Six months ended 04/30/19 | 10.06 | 0.24 | 0.60 | 0.84 | (0.27) | — | (0.27) | 10.63 | 8.51 | 91,810 | 1.60(d) | 1.75(d) | 4.68(d) | 34 |
| Year ended 10/31/18 | 11.00 | 0.43 | (0.84) | (0.41) | (0.44) | (0.09) | (0.53) | 10.06 | (3.87) | 85,370 | 1.60 | 1.75 | 4.01 | 59 |
| Year ended 10/31/17 | 10.50 | 0.41 | 0.50 | 0.91 | (0.41) | — | (0.41) | 11.00 | 8.83 | 74,211 | 1.61 | 1.81 | 3.78 | 40 |
| Year ended 10/31/16 | 10.08 | 0.39 | 0.45 | 0.84 | (0.42) | — | (0.42) | 10.50 | 8.62 | 24,238 | 1.79 | 2.03 | 3.85 | 101 |
| Year ended 10/31/15 | 10.36 | 0.39 | (0.26) | 0.13 | (0.41) | — | (0.41) | 10.08 | 1.26 | 17,133 | 1.74 | 2.02 | 3.77 | 120 |
| Year ended 10/31/14 | 10.03 | 0.40 | 0.37 | 0.77 | (0.44) | — | (0.44) | 10.36 | 7.85 | 14,854 | 1.63 | 2.03 | 3.94 | 89 |
| Class R |
| Six months ended 04/30/19 | 10.07 | 0.26 | 0.60 | 0.86 | (0.30) | — | (0.30) | 10.63 | 8.67 | 2,916 | 1.10(d) | 1.25(d) | 5.18(d) | 34 |
| Year ended 10/31/18 | 11.01 | 0.48 | (0.84) | (0.36) | (0.49) | (0.09) | (0.58) | 10.07 | (3.38) | 2,220 | 1.10 | 1.25 | 4.51 | 59 |
| Year ended 10/31/17 | 10.51 | 0.46 | 0.50 | 0.96 | (0.46) | — | (0.46) | 11.01 | 9.37 | 1,608 | 1.11 | 1.31 | 4.28 | 40 |
| Year ended 10/31/16 | 10.08 | 0.44 | 0.46 | 0.90 | (0.47) | — | (0.47) | 10.51 | 9.28 | 538 | 1.29 | 1.53 | 4.35 | 101 |
| Year ended 10/31/15 | 10.36 | 0.44 | (0.26) | 0.18 | (0.46) | — | (0.46) | 10.08 | 1.77 | 339 | 1.24 | 1.52 | 4.27 | 120 |
| Year ended 10/31/14 | 10.03 | 0.46 | 0.36 | 0.82 | (0.49) | — | (0.49) | 10.36 | 8.39 | 141 | 1.13 | 1.53 | 4.44 | 89 |
| Class Y |
| Six months ended 04/30/19 | 10.07 | 0.29 | 0.60 | 0.89 | (0.32) | — | (0.32) | 10.64 | 9.05 | 324,181 | 0.60(d) | 0.75(d) | 5.68(d) | 34 |
| Year ended 10/31/18 | 11.01 | 0.53 | (0.83) | (0.30) | (0.55) | (0.09) | (0.64) | 10.07 | (2.89) | 288,116 | 0.60 | 0.75 | 5.01 | 59 |
| Year ended 10/31/17 | 10.51 | 0.52 | 0.50 | 1.02 | (0.52) | — | (0.52) | 11.01 | 9.91 | 328,798 | 0.61 | 0.81 | 4.78 | 40 |
| Year ended 10/31/16 | 10.09 | 0.50 | 0.44 | 0.94 | (0.52) | — | (0.52) | 10.51 | 9.71 | 31,049 | 0.79 | 1.03 | 4.85 | 101 |
| Year ended 10/31/15 | 10.37 | 0.49 | (0.26) | 0.23 | (0.51) | — | (0.51) | 10.09 | 2.28 | 12,424 | 0.74 | 1.02 | 4.77 | 120 |
| Year ended 10/31/14 | 10.05 | 0.51 | 0.35 | 0.86 | (0.54) | — | (0.54) | 10.37 | 8.82 | 6,725 | 0.63 | 1.03 | 4.94 | 89 |
| Class R5 |
| Six months ended 04/30/19 | 10.08 | 0.29 | 0.59 | 0.88 | (0.32) | — | (0.32) | 10.64 | 8.94 | 112 | 0.60(d) | 0.75(d) | 5.68(d) | 34 |
| Year ended 10/31/18 | 11.01 | 0.53 | (0.82) | (0.29) | (0.55) | (0.09) | (0.64) | 10.08 | (2.79) | 150 | 0.60 | 0.69 | 5.01 | 59 |
| Year ended 10/31/17 | 10.52 | 0.52 | 0.49 | 1.01 | (0.52) | — | (0.52) | 11.01 | 9.81 | 30 | 0.61 | 0.72 | 4.78 | 40 |
| Year ended 10/31/16 | 10.09 | 0.50 | 0.45 | 0.95 | (0.52) | — | (0.52) | 10.52 | 9.82 | 19 | 0.79 | 0.90 | 4.85 | 101 |
| Year ended 10/31/15 | 10.37 | 0.49 | (0.26) | 0.23 | (0.51) | — | (0.51) | 10.09 | 2.28 | 10 | 0.74 | 0.89 | 4.77 | 120 |
| Year ended 10/31/14 | 10.05 | 0.50 | 0.36 | 0.86 | (0.54) | — | (0.54) | 10.37 | 8.82 | 10 | 0.63 | 0.90 | 4.94 | 89 |
| Class R6 |
| Six months ended 04/30/19 | 10.07 | 0.29 | 0.60 | 0.89 | (0.32) | — | (0.32) | 10.64 | 9.05 | 55,310 | 0.60(d) | 0.62(d) | 5.68(d) | 34 |
| Year ended 10/31/18 | 11.01 | 0.53 | (0.83) | (0.30) | (0.55) | (0.09) | (0.64) | 10.07 | (2.89) | 53,904 | 0.60 | 0.63 | 5.01 | 59 |
| Year ended 10/31/17 | 10.51 | 0.52 | 0.50 | 1.02 | (0.52) | — | (0.52) | 11.01 | 9.91 | 61,077 | 0.61 | 0.69 | 4.78 | 40 |
| Year ended 10/31/16 | 10.09 | 0.49 | 0.45 | 0.94 | (0.52) | — | (0.52) | 10.51 | 9.71 | 49,388 | 0.79 | 0.90 | 4.85 | 101 |
| Year ended 10/31/15 | 10.37 | 0.49 | (0.26) | 0.23 | (0.51) | — | (0.51) | 10.09 | 2.28 | 67,568 | 0.74 | 0.89 | 4.77 | 120 |
| Year ended 10/31/14 | 10.04 | 0.50 | 0.37 | 0.87 | (0.54) | — | (0.54) | 10.37 | 8.93 | 51,057 | 0.63 | 0.90 | 4.94 | 89 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $133,774, $85,624, $2,573, $288,291, $128 and $54,442 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.
| 24 | Invesco Multi-Asset Income Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
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 ten 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 tenth 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. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends,
| 25 | Invesco Multi-Asset Income Fund |
bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. 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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Master Limited Partnerships– The Fund primarily invests in Master Limited Partnerships (“MLPs”). MLPs are publicly traded partnerships and limited liability companies taxed as partnerships under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The Fund principally invests in MLPs that derive their revenue primarily from businesses involved in the gathering, transporting, processing, treating, storing, refining, distributing, mining or marketing of natural gas, natural gas liquids, crude oil, refined products or coal (“energy infrastructure MLPs”). The Fund is a partner in each MLP; accordingly, the Fund is required to take into account the Fund’s allocable share of income, gains, losses, deductions, expenses, and tax credits recognized by each MLP. |
The Fund is non-diversified and will concentrate its investments in the energy sector. Energy infrastructure MLPs are subject to a variety of industry specific risk factors that may adversely affect their business or operations, including a decrease in production or reduced volumes of natural gas or other energy commodities available for transporting, processing, storing or distributing; changes in energy commodity prices; a sustained reduced demand for crude oil, natural gas and refined petroleum products; depletion of natural gas reserves or other commodities if not replaced; natural disasters, extreme weather and environmental hazards; rising interest rates, how facilities are constructed, maintained and operated, environmental and safety controls, and the prices they may charge for products and services. In addition, taxes, government regulation, international politics, price, and supply fluctuations, volatile interest rates and energy conservation may cause difficulties for energy infrastructure MLPs.
MLPs may be less liquid and subject to more abrupt or erratic price movements than conventional publicly traded securities.
| F. | 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
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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.
| 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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| 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. | Exchange-traded Notes – The Fund may invest in exchange-traded notes (“ETNs”) which are senior, unsecured, unsubordinated debt securities whose returns are linked to the performance of a particular market benchmark or strategy, minus applicable fees. ETNs can be traded on an exchange and/or they can be held to maturity. At maturity, the issuer pays the investor a cash amount equal to the principal amount, subject to the day’s market benchmark or strategy factor. ETNs do not make periodic coupon payments or provide principal protection. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying market, changes in the applicable interest rates, and economic legal, political, or geographic events that affect the referenced underlying market or assets. ETNs are subject to credit risk, including the credit risk of the issuer, and counterparty risk. |
| 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. |
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| | 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. | Call Options Purchased and Written – The Fund may write 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. An uncovered call option exists without the ownership of the underlying security. 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. The risk in writing an uncovered call option is that the Fund may incur significant losses if the value of the written security exceeds the exercise price of the option.
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.
| O. | 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 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. | 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 NAV 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
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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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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 April 30, 2019 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. | Other Risks- The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claim. |
| R. | 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. |
| S. | 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.50% |
| Next $500 million | 0.45% |
| Next $500 million | 0.40% |
| Over $1.5 billion | 0.39% |
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For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.49%.
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 29, 2020, 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 0.85%, 1.60%, 1.10%, 0.60%, 0.60% and 0.60%, 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, 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. Unless Invesco continues the fee waiver agreement, it will terminate on February 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limit, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limit.
Further, the Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $67,632 and reimbursed class level expenses of $84,495, $54,082, $1,625, $182,091, $85 and $860 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 six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $54,545 in front-end sales commissions from the sale of Class A shares and $3,885 and $10,263 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Fund 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used.
| 30 | Invesco Multi-Asset Income Fund |
Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $— | $293,666,939 | $— | $293,666,939 |
| Preferred Stocks | 122,117,204 | 462,387 | — | 122,579,591 |
| Common Stocks & Other Equity Interests | 55,737,784 | — | — | 55,737,784 |
| Exchange-Traded Notes | 54,940,950 | — | — | 54,940,950 |
| U.S. Treasury Securities | — | 53,399,703 | — | 53,399,703 |
| Exchange-Traded Fund | 8,243,150 | — | — | 8,243,150 |
| Non-U.S. Dollar Denominated Bonds & Notes | — | 1,140,254 | — | 1,140,254 |
| Money Market Funds | 30,467,546 | — | — | 30,467,546 |
| Total Investments in Securities | 271,506,634 | 348,669,283 | — | 620,175,917 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 5,835,842 | — | — | 5,835,842 |
| Forward Foreign Currency Contracts | — | 19,988 | — | 19,988 |
| Swap Agreements | — | 128,001 | — | 128,001 |
| | 5,835,842 | 147,989 | — | 5,983,831 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (101,781) | — | — | (101,781) |
| Total Other Investments | 5,734,061 | 147,989 | — | 5,882,050 |
| Total Investments | $277,240,695 | $348,817,272 | $— | $626,057,967 |
| * | 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 April 30, 2019:
| | Value |
| Derivative Assets | Credit
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized appreciation on futures contracts — Exchange-Traded | $- | $- | $5,835,842 | $- | $5,835,842 |
| Unrealized appreciation on swap agreements — Centrally Cleared | 128,001 | - | - | - | 128,001 |
| Unrealized appreciation on forward foreign currency contracts outstanding | - | 19,988 | - | - | 19,988 |
| Total Derivative Assets | 128,001 | 19,988 | 5,835,842 | - | 5,983,831 |
| Derivatives not subject to master netting agreements | (128,001) | - | (5,835,842) | - | (5,963,843) |
| Total Derivative Assets subject to master netting agreements | $- | $19,988 | $- | $- | $19,988 |
| | Value |
| Derivative Liabilities | Credit
Risk | Currency
Risk | Equity
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts — Exchange-Traded | $- | $- | $- | $(101,781) | $(101,781) |
| Derivatives not subject to master netting agreements | - | - | - | 101,781 | 101,781 |
| Total Derivative Liabilities subject to master netting agreements | $- | $- | $- | $- | $- |
| 31 | Invesco Multi-Asset 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 April 30, 2019.
| | | Financial
Derivative
Assets | | Financial
Derivative
Liabilities | | Net Value of
Derivatives | | Collateral
(Received)/Pledged | | Net
Amount | | | | |
| | | Forward Foreign
Currency Contracts | | Forward Foreign
Currency Contracts | | | | | | | | | | |
| Counterparty | | | | | | | | Non-Cash | Cash | | | | | |
| Citibank N.A. | | $3 | | $– | | $3 | | $– | $– | $3 | | | | |
| Goldman Sachs International | | 19,985 | | – | | 19,985 | | – | – | 19,985 | | | | |
| Total | | $ 19,988 | | $– | | $ 19,988 | | $– | $– | $ 19,988 | | | | |
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 | $- | $76,121 | $- | $- | $76,121 |
| Futures contracts | - | - | - | (4,058,471) | (4,058,471) |
| Options written | - | - | - | 56,496 | 56,496 |
| Swap agreements | (108,502) | - | - | - | (108,502) |
| Change in Net Unrealized Appreciation (Depreciation): | | | | | |
| Forward foreign currency contracts | - | (54,445) | - | - | (54,445) |
| Futures contracts | - | - | 12,511,484 | 168,704 | 12,680,188 |
| Swap agreements | 206,281 | - | - | - | 206,281 |
| Total | $97,779 | $21,676 | $12,511,484 | $(3,833,271) | $8,797,668 |
The table below summarizes the six month average notional value of forward foreign currency contracts, futures contracts and swap agreements, two month average notional value of options purchased and one and one half day average notional value of options written outstanding during the period.
| | Forward
Foreign Currency
Contracts | Futures
Contracts | Swaptions
Purchased | Swaptions
Written | Swap
Agreements |
| Average notional value | $1,966,761 | $206,511,826 | $1,175,342 | $741,370 | $5,445,833 |
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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $795.
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 may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, 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 captionAmount 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
| 32 | Invesco Multi-Asset Income Fund |
bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks exceed 5% of the Fund’s total assets.
NOTE 8—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $9,084,345 | $6,344,389 | $15,428,734 |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $116,797,603 and $104,163,634, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $65,985,480 and $65,095,760, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $22,166,265 |
| Aggregate unrealized (depreciation) of investments | (11,622,361) |
| Net unrealized appreciation of investments | $10,543,904 |
Cost of investments for tax purposes is $615,589,866.
| 33 | Invesco Multi-Asset Income Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 2,902,495 | $30,029,246 | | 6,711,689 | $72,173,241 |
| Class C | 1,513,541 | 15,562,940 | | 3,387,904 | 36,193,139 |
| Class R | 65,355 | 671,581 | | 106,045 | 1,135,961 |
| Class Y | 9,864,748 | 101,884,198 | | 17,453,638 | 186,994,732 |
| Class R5 | — | — | | 12,597 | 131,905 |
| Class R6 | 88,308 | 881,550 | | 901,885 | 9,518,938 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 312,156 | 3,189,490 | | 800,753 | 8,552,192 |
| Class C | 149,090 | 1,521,687 | | 289,651 | 3,084,082 |
| Class R | 7,277 | 74,407 | | 10,392 | 110,374 |
| Class Y | 654,809 | 6,694,634 | | 1,427,830 | 15,212,966 |
| Class R5 | 381 | 3,886 | | 382 | 4,023 |
| Class R6 | 167,736 | 1,714,298 | | 341,361 | 3,632,071 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 225,891 | 2,296,780 | | - | - |
| Class C | (226,113) | (2,296,780) | | - | - |
| Reacquired: | | | | | |
| Class A | (2,465,378) | (25,125,464) | | (11,796,159) | (125,480,384) |
| Class C | (1,279,984) | (12,981,634) | | (1,940,964) | (20,466,365) |
| Class R | (18,862) | (194,321) | | (42,138) | (444,683) |
| Class Y | (8,643,824) | (88,031,834) | | (20,140,304) | (213,617,252) |
| Class R5 | (4,703) | (47,737) | | (867) | (9,141) |
| Class R6 | (407,155) | (4,174,899) | | (1,439,258) | (15,152,863) |
| Net increase (decrease) in share activity | 2,905,768 | $31,672,028 | | (3,915,563) | $(38,427,064) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 64% 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, 8% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| 34 | Invesco Multi-Asset Income Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,088.10 | $4.40 | $1,020.58 | $4.26 | 0.85% |
| Class C | 1,000.00 | 1,085.10 | 8.27 | 1,016.86 | 8.00 | 1.60 |
| Class R | 1,000.00 | 1,086.70 | 5.69 | 1,019.34 | 5.51 | 1.10 |
| Class Y | 1,000.00 | 1,090.50 | 3.11 | 1,021.82 | 3.01 | 0.60 |
| Class R5 | 1,000.00 | 1,089.40 | 3.11 | 1,021.82 | 3.01 | 0.60 |
| Class R6 | 1,000.00 | 1,090.50 | 3.11 | 1,021.82 | 3.01 | 0.60 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 35 | Invesco Multi-Asset Income Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | MAIN-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Pacific Growth Fund
Nasdaq:
A: TGRAX ■ C: TGRCX ■ R: TGRRX ■ Y: TGRDX ■ R5: TGRSX ■ R6: TGRUX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 11.45% |
| Class C Shares | 11.01 |
| Class R Shares | 11.36 |
| Class Y Shares | 11.54 |
| Class R5 Shares | 11.63 |
| Class R6 Shares | 11.63 |
| MSCI EAFE Index▼ (Broad Market Index) | 7.45 |
| MSCI All Country Asia Pacific Index▼ (Style-Specific Index) | 9.70 |
Lipper Pacific Region Funds Index■
(Peer Group Index) | 10.41 |
| Source(s):▼RIMES Technologies Corp.;■ Lipper Inc. |
TheMSCI EAFE® Indexis an unmanaged index considered representative of stocks of Europe, Australasia and the Far East. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheMSCI All Country Asia Pacific Index is an unmanaged index considered representative of Asia Pacific region stock markets. The index is computed using the net return, which withholds applicable taxes for non-resident investors.
TheLipper Pacific Region Funds Index is an unmanaged index considered representative of Pacific region funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Pacific Growth Fund |
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (7/28/97) | 2.70% |
| 10 Years | 7.75 |
| 5 Years | 6.24 |
| 1 Year | –11.90 |
| Class C Shares | |
| Inception (7/28/97) | 2.63% |
| 10 Years | 7.57 |
| 5 Years | 6.64 |
| 1 Year | –8.34 |
| Class R Shares | |
| Inception (3/31/08) | 3.30% |
| 10 Years | 8.09 |
| 5 Years | 7.18 |
| 1 Year | –6.96 |
| Class Y Shares | |
| Inception (7/28/97) | 3.22% |
| 10 Years | 8.63 |
| 5 Years | 7.71 |
| 1 Year | –6.57 |
| Class R5 Shares | |
| 10 Years | 8.68% |
| 5 Years | 7.83 |
| 1 Year | –6.43 |
| Class R6 Shares | |
| 10 Years | 8.43% |
| 5 Years | 7.60 |
| 1 Year | –6.43 |
Effective June 1, 2010, Class A, Class C, Class R, Class W and Class I shares of the predecessor fund, Morgan Stanley Pacific Growth Fund Inc., advised by Morgan Stanley Investment Advisors Inc. were reorganized into Class A, Class C, Class R, Class A and Class Y shares, respectively, of Invesco Pacific Growth Fund. Returns shown above, prior to June 1, 2010, for Class A, Class C, Class R and Class Y shares are blended returns of the predecessor fund and Invesco Pacific Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 23, 2011. Performance shown prior to that date is that of the Fund’s and the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of the Fund’s and the predecessor fund’s Class A shares and
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (7/28/97) | 2.60% |
| 10 Years | 8.76 |
| 5 Years | 5.72 |
| 1 Year | –14.86 |
| Class C Shares | |
| Inception (7/28/97) | 2.53% |
| 10 Years | 8.58 |
| 5 Years | 6.13 |
| 1 Year | –11.38 |
| Class R Shares | |
| Inception (3/31/08) | 3.11% |
| 10 Years | 9.10 |
| 5 Years | 6.65 |
| 1 Year | –10.12 |
| Class Y Shares | |
| Inception (7/28/97) | 3.12% |
| 10 Years | 9.66 |
| 5 Years | 7.18 |
| 1 Year | –9.71 |
| Class R5 Shares | |
| 10 Years | 9.70% |
| 5 Years | 7.30 |
| 1 Year | –9.62 |
| Class R6 Shares | |
| 10 Years | 9.45% |
| 5 Years | 7.05 |
| 1 Year | –9.62 |
includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.54%, 2.30%, 1.80%, 1.30%, 1.22% and 1.22%, respectively. The expense ratios pre-
sented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class R, Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 3 | Invesco Pacific Growth Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Pacific Growth Fund |
Schedule of Investments
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–97.63% |
| Australia–6.83% |
| Australia & New Zealand Banking Group Ltd. | 45,376 | $870,069 |
| BHP Group Ltd. | 39,566 | 1,044,979 |
| Coca-Cola Amatil Ltd. | 69,794 | 432,971 |
| CSL Ltd. | 5,901 | 826,034 |
| Macquarie Group Ltd. | 9,961 | 946,978 |
| Rio Tinto Ltd. | 13,260 | 891,484 |
| Santos Ltd. | 112,610 | 570,774 |
| Woolworths Group Ltd. | 19,168 | 430,373 |
| | | | 6,013,662 |
| China–26.63% |
| Alibaba Group Holding Ltd., ADR(a) | 26,600 | 4,936,162 |
| Autohome, Inc., ADR(a) | 14,300 | 1,651,507 |
| Brilliance China Automotive Holdings Ltd. | 750,000 | 822,809 |
| China Animal Healthcare Ltd.(a)(b) | 349,000 | 0 |
| China Construction Bank Corp., Class H | 2,450,000 | 2,160,865 |
| China Vanke Co., Ltd., Class H | 202,000 | 778,929 |
| Hengan International Group Co. Ltd. | 175,000 | 1,542,582 |
| Minth Group Ltd. | 124,000 | 391,215 |
| New Oriental Education & Technology Group, Inc., ADR(a) | 11,000 | 1,050,060 |
| Ping An Insurance (Group) Co. of China Ltd., Class H | 285,000 | 3,431,349 |
| Sinopharm Group Co. Ltd., Class H | 290,000 | 1,138,589 |
| Tencent Holdings Ltd. | 89,600 | 4,439,031 |
| Weibo Corp., ADR(a) | 16,000 | 1,096,000 |
| | | | 23,439,098 |
| Hong Kong–6.46% |
| AIA Group Ltd. | 297,600 | 3,037,838 |
| CK Asset Holdings Ltd. | 125,000 | 1,003,850 |
| CK Hutchison Holdings Ltd. | 157,000 | 1,646,627 |
| | | | 5,688,315 |
| India–5.24% |
| Bajaj Finance Ltd. | 22,600 | 1,005,963 |
| Eicher Motors Ltd. | 2,360 | 693,679 |
| HDFC Bank Ltd. | 46,300 | 1,542,662 |
| Maruti Suzuki India Ltd. | 9,100 | 872,192 |
| Titan Co. Ltd. | 30,000 | 499,707 |
| | | | 4,614,203 |
| Indonesia–1.02% |
| PT Telekomunikasi Indonesia Persero Tbk | 3,350,000 | 893,981 |
| Japan–33.78% |
| Aida Engineering, Ltd. | 114,800 | 894,077 |
| | Shares | Value |
| Japan–(continued) |
| Benesse Holdings, Inc. | 37,500 | $1,028,786 |
| Daikin Industries, Ltd. | 11,300 | 1,437,084 |
| Daiwa House Industry Co., Ltd. | 20,700 | 580,554 |
| Dentsu, Inc. | 9,600 | 389,317 |
| East Japan Railway Co. | 13,100 | 1,233,209 |
| Fukushima Industries Corp. | 30,200 | 1,045,939 |
| H.I.S. Co., Ltd. | 28,400 | 905,557 |
| Hitachi High-Technologies Corp. | 31,100 | 1,390,070 |
| Kakaku.com, Inc. | 53,300 | 1,096,283 |
| KOKUYO Co., Ltd. | 41,400 | 526,399 |
| Komatsu Ltd. | 51,200 | 1,332,057 |
| Konoike Transport Co., Ltd. | 71,200 | 1,151,886 |
| Mitsubishi Corp. | 44,200 | 1,216,513 |
| Nidec Corp. | 10,400 | 1,484,355 |
| Nifco, Inc. | 40,800 | 1,141,584 |
| Omron Corp. | 20,000 | 1,074,610 |
| Otsuka Corp. | 26,300 | 1,031,743 |
| Paltac Corp. | 19,300 | 1,064,270 |
| Pilot Corp. | 14,300 | 588,280 |
| Recruit Holdings Co., Ltd. | 30,000 | 901,562 |
| Resorttrust, Inc. | 47,300 | 655,616 |
| SCSK Corp. | 24,500 | 1,162,363 |
| Sekisui Chemical Co., Ltd. | 77,400 | 1,242,476 |
| Seria Co., Ltd. | 23,400 | 697,661 |
| Sompo Holdings, Inc. | 34,400 | 1,281,123 |
| Sumitomo Metal Mining Co., Ltd. | 31,200 | 984,417 |
| Terumo Corp. | 20,800 | 627,603 |
| Yamaha Motor Co., Ltd. | 48,500 | 991,866 |
| Yaskawa Electric Corp. | 15,700 | 573,450 |
| | | | 29,730,710 |
| Philippines–1.00% |
| Jollibee Foods Corp. | 150,000 | 876,757 |
| Singapore���2.90% |
| ComfortDelgro Corp. Ltd. | 590,000 | 1,166,899 |
| Singapore Technologies Engineering Ltd. | 270,000 | 786,119 |
| Singapore Telecommunications Ltd. | 260,000 | 600,250 |
| | | | 2,553,268 |
| South Korea–6.62% |
| AMOREPACIFIC Group | 6,350 | 408,783 |
| Green Cross Corp., Rts. | 3,050 | 375,979 |
| Hanssem Co., Ltd. | 8,900 | 784,745 |
| KEPCO Plant Service & Engineering Co., Ltd. | 6,400 | 200,796 |
| LG Chem Ltd. | 2,574 | 797,445 |
| NCSoft Corp. | 1,450 | 652,913 |
| Ottogi Corp. | 959 | 596,014 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Pacific Growth Fund |
| | Shares | Value |
| South Korea–(continued) |
| Samsung Electronics Co., Ltd. | 51,200 | $2,006,169 |
| | | | 5,822,844 |
| Taiwan–7.15% |
| Asustek Computer, Inc. | 114,000 | 870,652 |
| Hon Hai Precision Industry Co., Ltd. | 369,000 | 1,037,704 |
| Largan Precision Co., Ltd. | 7,000 | 1,053,364 |
| MediaTek, Inc. | 105,000 | 1,004,094 |
| President Chain Store Corp. | 39,000 | 363,483 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 232,143 | 1,960,929 |
| | | | 6,290,226 |
| Total Common Stocks & Other Equity Interests (Cost $70,246,234) | 85,923,064 |
| | Shares | Value |
| Money Market Funds–1.21% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(c) | 372,875 | $372,875 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(c) | 266,333 | 266,413 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(c) | 426,142 | 426,142 |
| Total Money Market Funds (Cost $1,065,426) | 1,065,430 |
| TOTAL INVESTMENTS IN SECURITIES—98.84% (Cost $71,311,660) | 86,988,494 |
| OTHER ASSETS LESS LIABILITIES–1.16% | 1,024,377 |
| NET ASSETS–100.00% | $88,012,871 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| Rts. | – Rights |
Notes to Schedule of Investments:
| (a) | Non-income producing security. |
| (b) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
| (c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Consumer Discretionary | 21.19% |
| Industrials | 17.74 |
| Financials | 16.22 |
| Information Technology | 14.96 |
| Communication Services | 12.30 |
| Consumer Staples | 4.28 |
| Materials | 4.23 |
| Health Care | 3.37 |
| Real Estate | 2.69 |
| Energy | 0.65 |
| Money Market Funds Plus Other Assets Less Liabilities | 2.37 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Pacific Growth Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $70,246,234) | $85,923,064 |
| Investments in affiliated money market funds, at value (Cost $1,065,426) | 1,065,430 |
| Foreign currencies, at value (Cost $970,363) | 970,431 |
| Receivable for: | |
| Fund shares sold | 43,998 |
| Dividends | 279,776 |
| Investment for trustee deferred compensation and retirement plans | 45,552 |
| Other assets | 154,033 |
| Total assets | 88,482,284 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 101,279 |
| Amount due custodian | 64,159 |
| Accrued foreign taxes | 85,251 |
| Accrued fees to affiliates | 51,573 |
| Accrued trustees’ and officers’ fees and benefits | 1,596 |
| Accrued other operating expenses | 71,551 |
| Trustee deferred compensation and retirement plans | 94,004 |
| Total liabilities | 469,413 |
| Net assets applicable to shares outstanding | $88,012,871 |
| Net assets consist of: | |
| Shares of beneficial interest | $73,913,982 |
| Distributable earnings | 14,098,889 |
| | $88,012,871 |
| Net Assets: |
| Class A | $70,013,471 |
| Class C | $3,840,830 |
| Class R | $487,866 |
| Class Y | $10,423,368 |
| Class R5 | $16,108 |
| Class R6 | $3,231,228 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 2,323,101 |
| Class C | 139,225 |
| Class R | 16,406 |
| Class Y | 339,054 |
| Class R5 | 523 |
| Class R6 | 104,910 |
| Class A: | |
| Net asset value per share | $30.14 |
Maximum offering price per share
(Net asset value of $30.14 ÷ 94.50%) | $31.89 |
| Class C: | |
| Net asset value and offering price per share | $27.59 |
| Class R: | |
| Net asset value and offering price per share | $29.74 |
| Class Y: | |
| Net asset value and offering price per share | $30.74 |
| Class R5: | |
| Net asset value and offering price per share | $30.80 |
| Class R6: | |
| Net asset value and offering price per share | $30.80 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Pacific Growth Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $49,438) | $523,808 |
| Dividends from affiliated money market funds (includes securities lending income of $365) | 11,089 |
| Total investment income | 534,897 |
| Expenses: | |
| Advisory fees | 375,130 |
| Administrative services fees | 12,406 |
| Custodian fees | 16,366 |
| Distribution fees: | |
| Class A | 81,190 |
| Class C | 24,552 |
| Class R | 1,107 |
| Transfer agent fees — A, C, R and Y | 61,997 |
| Transfer agent fees — R5 | 5 |
| Transfer agent fees — R6 | 1,352 |
| Trustees’ and officers’ fees and benefits | 12,839 |
| Registration and filing fees | 43,055 |
| Reports to shareholders | 16,514 |
| Professional services fees | 32,245 |
| Other | 11,840 |
| Total expenses | 690,598 |
| Less: Fees waived and expense offset arrangement(s) | (982) |
| Net expenses | 689,616 |
| Net investment income (loss) | (154,719) |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (571,995) |
| Foreign currencies | (8,407) |
| | (580,402) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities (net of foreign taxes of $85,251) | 10,187,406 |
| Foreign currencies | (61,829) |
| | 10,125,577 |
| Net realized and unrealized gain | 9,545,175 |
| Net increase in net assets resulting from operations | $9,390,456 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Pacific Growth Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income (loss) | $(154,719) | $961,010 |
| Net realized gain (loss) | (580,402) | 4,894,927 |
| Change in net unrealized appreciation (depreciation) | 10,125,577 | (20,948,288) |
| Net increase (decrease) in net assets resulting from operations | 9,390,456 | (15,092,351) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (4,776,595) | — |
| Class C | (411,734) | — |
| Class R | (30,987) | — |
| Class Y | (739,334) | — |
| Class R5 | (1,204) | — |
| Class R6 | (344,323) | — |
| Total distributions to shareholders from distributable earnings | (6,304,177) | — |
| Share transactions–net: | | |
| Class A | 2,471,579 | (5,091,409) |
| Class B | — | (127,047) |
| Class C | (2,345,469) | 1,691,625 |
| Class R | 59,391 | 194,398 |
| Class Y | (3,876,067) | (2,389,945) |
| Class R6 | (1,947,606) | 6,592,803 |
| Net increase (decrease) in net assets resulting from share transactions | (5,638,172) | 870,425 |
| Net increase (decrease) in net assets | (2,551,893) | (14,221,926) |
| Net assets: | | |
| Beginning of period | 90,564,764 | 104,786,690 |
| End of period | $88,012,871 | $90,564,764 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Pacific Growth Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $29.27 | $(0.05) | $3.10 | $3.05 | $(0.22) | $(1.96) | $(2.18) | $30.14 | 11.45% | $70,013 | 1.60%(d) | 1.60%(d) | (0.36)%(d) | 30% |
| Year ended 10/31/18 | 33.63 | 0.28(e) | (4.64) | (4.36) | — | — | — | 29.27 | (12.97)(f) | 65,057 | 1.54(f) | 1.54(f) | 0.82(e)(f) | 54 |
| Year ended 10/31/17 | 26.31 | (0.09) | 7.46 | 7.37 | (0.05) | — | — | 33.63 | 28.09 | 80,319 | 1.75 | 1.75 | (0.32) | 59 |
| Year ended 10/31/16 | 24.03 | 0.04 | 2.24 | 2.28 | — | — | — | 26.31 | 9.49 | 65,107 | 1.64 | 1.64 | 0.17 | 31 |
| Year ended 10/31/15 | 24.51 | 0.05 | (0.50) | (0.45) | (0.03) | — | — | 24.03 | (1.84) | 66,599 | 1.78 | 1.78 | 0.21 | 137 |
| Year ended 10/31/14 | 23.90 | 0.14 | 0.82 | 0.96 | (0.35) | — | — | 24.51 | 4.10(f) | 73,457 | 1.77(f) | 1.77(f) | 0.60(f) | 63 |
| Class C |
| Six months ended 04/30/19 | 26.86 | (0.14) | 2.83 | 2.69 | — | (1.96) | (1.96) | 27.59 | 11.01 | 3,841 | 2.35(d) | 2.35(d) | (1.11)(d) | 30 |
| Year ended 10/31/18 | 31.09 | 0.02(e) | (4.25) | (4.23) | — | — | — | 26.86 | (13.60) | 6,080 | 2.30 | 2.30 | 0.06(e) | 54 |
| Year ended 10/31/17 | 24.46 | (0.28) | 6.91 | 6.63 | — | — | — | 31.09 | 27.11(g) | 5,535 | 2.49(g) | 2.49(g) | (1.06)(g) | 59 |
| Year ended 10/31/16 | 22.50 | (0.13) | 2.09 | 1.96 | — | — | — | 24.46 | 8.71(g) | 4,477 | 2.37(g) | 2.37(g) | (0.56)(g) | 31 |
| Year ended 10/31/15 | 23.09 | (0.12) | (0.47) | (0.59) | — | — | — | 22.50 | (2.55) | 4,880 | 2.53 | 2.53 | (0.54) | 137 |
| Year ended 10/31/14 | 22.53 | (0.03) | 0.76 | 0.73 | (0.17) | — | — | 23.09 | 3.28(g) | 4,638 | 2.52(g) | 2.52(g) | (0.15)(g) | 63 |
| Class R |
| Six months ended 04/30/19 | 28.86 | (0.09) | 3.07 | 2.98 | (0.14) | (1.96) | (2.10) | 29.74 | 11.36 | 488 | 1.86(d) | 1.86(d) | (0.62)(d) | 30 |
| Year ended 10/31/18 | 33.24 | 0.19(e) | (4.57) | (4.38) | — | — | — | 28.86 | (13.18) | 409 | 1.80 | 1.80 | 0.56(e) | 54 |
| Year ended 10/31/17 | 26.02 | (0.16) | 7.38 | 7.22 | — | — | — | 33.24 | 27.75 | 283 | 2.00 | 2.00 | (0.57) | 59 |
| Year ended 10/31/16 | 23.82 | (0.02) | 2.22 | 2.20 | — | — | — | 26.02 | 9.24 | 242 | 1.89 | 1.89 | (0.08) | 31 |
| Year ended 10/31/15 | 24.33 | (0.01) | (0.50) | (0.51) | — | — | — | 23.82 | (2.10) | 245 | 2.03 | 2.03 | (0.04) | 137 |
| Year ended 10/31/14 | 23.74 | 0.08 | 0.80 | 0.88 | (0.29) | — | — | 24.33 | 3.78 | 344 | 2.03 | 2.03 | 0.34 | 63 |
| Class Y |
| Six months ended 04/30/19 | 29.88 | (0.02) | 3.15 | 3.13 | (0.31) | (1.96) | (2.27) | 30.74 | 11.54 | 10,423 | 1.36(d) | 1.36(d) | (0.12)(d) | 30 |
| Year ended 10/31/18 | 34.24 | 0.37(e) | (4.73) | (4.36) | — | — | — | 29.88 | (12.73) | 13,911 | 1.30 | 1.30 | 1.06(e) | 54 |
| Year ended 10/31/17 | 26.79 | (0.02) | 7.59 | 7.57 | (0.12) | — | — | 34.24 | 28.43 | 18,505 | 1.50 | 1.50 | (0.07) | 59 |
| Year ended 10/31/16 | 24.41 | 0.11 | 2.27 | 2.38 | — | — | — | 26.79 | 9.75 | 10,501 | 1.39 | 1.39 | 0.42 | 31 |
| Year ended 10/31/15 | 24.90 | 0.12 | (0.52) | (0.40) | (0.09) | — | — | 24.41 | (1.59) | 3,587 | 1.53 | 1.53 | 0.46 | 137 |
| Year ended 10/31/14 | 24.28 | 0.20 | 0.82 | 1.02 | (0.40) | — | — | 24.90 | 4.34 | 2,944 | 1.53 | 1.53 | 0.84 | 63 |
| Class R5 |
| Six months ended 04/30/19 | 29.94 | (0.00) | 3.16 | 3.16 | (0.34) | (1.96) | (2.30) | 30.80 | 11.63 | 16 | 1.27(d) | 1.27(d) | (0.03)(d) | 30 |
| Year ended 10/31/18 | 34.29 | 0.40(e) | (4.75) | (4.35) | — | — | — | 29.94 | (12.69) | 16 | 1.22 | 1.22 | 1.14(e) | 54 |
| Year ended 10/31/17 | 26.84 | 0.00 | 7.60 | 7.60 | (0.15) | — | — | 34.29 | 28.53 | 18 | 1.42 | 1.42 | 0.01 | 59 |
| Year ended 10/31/16 | 24.42 | 0.13 | 2.29 | 2.42 | — | — | — | 26.84 | 9.91 | 14 | 1.28 | 1.28 | 0.53 | 31 |
| Year ended 10/31/15 | 24.92 | 0.15 | (0.52) | (0.37) | (0.13) | — | — | 24.42 | (1.47) | 13 | 1.39 | 1.39 | 0.60 | 137 |
| Year ended 10/31/14 | 24.30 | 0.24 | 0.82 | 1.06 | (0.44) | — | — | 24.92 | 4.48 | 13 | 1.37 | 1.37 | 1.00 | 63 |
| Class R6 |
| Six months ended 04/30/19 | 29.94 | (0.00) | 3.16 | 3.16 | (0.34) | (1.96) | (2.30) | 30.80 | 11.63 | 3,231 | 1.27(d) | 1.27(d) | (0.03)(d) | 30 |
| Year ended 10/31/18 | 34.29 | 0.39(e) | (4.74) | (4.35) | — | — | — | 29.94 | (12.69) | 5,091 | 1.22 | 1.22 | 1.14(e) | 54 |
| Year ended 10/31/17(h) | 27.48 | 0.00 | 6.81 | 6.81 | — | — | — | 34.29 | 24.78 | 12 | 1.39(i) | 1.39(i) | 0.04(i) | 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. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $66,311, $4,961, $447, $11,057, $15 and $4,160 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during year ended October 31, 2018. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.04 and 0.11%, $(0.22) and (0.65)%, $(0.05) and (0.15)%, $0.13 and 0.35%, $0.16 and 0.43%, and $0.15 and 0.43% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (f) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for Class A shares for the years ended October 31, 2018 and 2014. |
| (g) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.99%, 0.98% and 0.99% for Class C Shares for the years ended October 31, 2017, 2016 and 2014, respectively. |
| (h) | Commencement date of April 04, 2017. |
| (i) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Pacific Growth Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Pacific 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 long-term growth of capital.
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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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
| 11 | Invesco Pacific Growth Fund |
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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Securities Lending– The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the |
| 12 | Invesco Pacific Growth Fund |
| | 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 inDividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
| J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 $1billion | 0.87% |
| Next $1 billion | 0.82% |
| Over $2 billion | 0.77% |
For the six months ended April 30, 2019, the effective advisory fees 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 contractually agreed, through at least June 30, 2020, 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 “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 June 30, 2020. During its term, the fee waiver agreement cannot be
| 13 | Invesco Pacific Growth Fund |
terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
The Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $526.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”), an affiliate of the Adviser. The Fund has adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that the Fund will reimburse IDI for distribution related expenses that IDI incurs up to a maximum of the following annual rates: (1) Class A — up to 0.25% of the average daily net assets of Class A shares; and (2) Class C — up to 1.00% of the average daily net assets of Class C shares; and (3) Class R — up to 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly.
For the six months ended April 30, 2019, expenses incurred under these agreements are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $1,259 in front-end sales commissions from the sale of Class A shares and $20 and $4,173 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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.
| 14 | Invesco Pacific Growth Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Australia | $4,021,705 | $1,991,957 | $— | $6,013,662 |
| China | 15,237,464 | 8,201,634 | 0 | 23,439,098 |
| Hong Kong | 1,003,850 | 4,684,465 | — | 5,688,315 |
| India | 3,920,524 | 693,679 | — | 4,614,203 |
| Indonesia | — | 893,981 | — | 893,981 |
| Japan | 1,031,743 | 28,698,967 | — | 29,730,710 |
| Philippines | 876,757 | — | — | 876,757 |
| Singapore | 2,553,268 | — | — | 2,553,268 |
| South Korea | 3,019,230 | 2,803,614 | — | 5,822,844 |
| Taiwan | 4,329,297 | 1,960,929 | — | 6,290,226 |
| Money Market Funds | 1,065,430 | — | — | 1,065,430 |
| Total Investments | $37,059,268 | $49,929,226 | $0 | $86,988,494 |
NOTE 4—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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 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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $456.
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $25,949,923 and $39,337,244, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| 15 | Invesco Pacific Growth Fund |
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $17,793,970 |
| Aggregate unrealized (depreciation) of investments | (2,472,629) |
| Net unrealized appreciation of investments | $15,321,341 |
Cost of investments for tax purposes is $71,667,153.
| 16 | Invesco Pacific Growth Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 102,913 | $2,971,724 | | 393,005 | $13,799,458 |
| Class B(b) | — | — | | 61 | 2,081 |
| Class C | 59,017 | 1,475,199 | | 119,211 | 3,897,312 |
| Class R | 2,133 | 59,142 | | 9,845 | 335,050 |
| Class Y | 67,157 | 1,905,443 | | 426,480 | 15,401,637 |
| Class R6 | 10,424 | 295,483 | | 222,544 | 8,326,947 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 152,715 | 4,045,416 | | — | — |
| Class C | 15,418 | 375,127 | | — | — |
| Class R | 1,126 | 29,440 | | — | — |
| Class Y | 25,103 | 677,779 | | — | — |
| Class R6 | 12,560 | 339,498 | | — | — |
| Conversion of Class B shares to Class A shares:(c) | | | | | |
| Class A | — | — | | 3,073 | 116,562 |
| Class B | — | — | | (3,339) | (116,562) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 89,631 | 2,480,445 | | - | - |
| Class C | (97,649) | (2,480,445) | | - | - |
| Reacquired: | | | | | |
| Class A | (244,524) | (7,026,006) | | (562,139) | (19,007,429) |
| Class B(b) | — | — | | (381) | (12,566) |
| Class C | (63,914) | (1,715,350) | | (70,877) | (2,205,687) |
| Class R | (1,028) | (29,191) | | (4,192) | (140,652) |
| Class Y | (218,813) | (6,459,289) | | (501,340) | (17,791,582) |
| Class R6 | (88,123) | (2,582,587) | | (52,858) | (1,734,144) |
| Net increase (decrease) in share activity | (175,854) | $(5,638,172) | | (20,907) | $870,425 |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 54% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| (b) | Class B shares activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| (c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| 17 | Invesco Pacific Growth Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,114.50 | $8.39 | $1,016.86 | $8.00 | 1.60% |
| Class C | 1,000.00 | 1,110.10 | 12.29 | 1,013.14 | 11.73 | 2.35 |
| Class R | 1,000.00 | 1,113.60 | 9.75 | 1,015.57 | 9.30 | 1.86 |
| Class Y | 1,000.00 | 1,115.40 | 7.13 | 1,018.05 | 6.80 | 1.36 |
| Class R5 | 1,000.00 | 1,116.30 | 6.66 | 1,018.50 | 6.36 | 1.27 |
| Class R6 | 1,000.00 | 1,116.30 | 6.66 | 1,018.50 | 6.36 | 1.27 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 18 | Invesco Pacific Growth Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | MS-PGRO-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco Select Companies Fund
Nasdaq:
A: ATIAX ■ C: ATICX ■ R: ATIRX ■ Y: ATIYX ■ R5: ATIIX ■ R6: ATISX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 4.76% |
| Class C Shares | 4.35 |
| Class R Shares | 4.61 |
| Class Y Shares | 4.85 |
| Class R5 Shares | 4.99 |
| Class R6 Shares | 4.98 |
| S&P 500 Index▼ (Broad Market Index) | 9.76 |
| Russell 2000 Value Index▼ (Style-Specific Index) | 6.06 |
Lipper Small-Cap Core Funds Index■
(Peer Group Index) | 6.67 |
| Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
TheS&P 500® Index is an unmanaged index considered representative of the US stock market.
TheRussell 2000® Indexis an unmanaged index considered representative of small-cap stocks. The Russell 2000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
TheLipper Small-Cap Core Funds Index is an unmanaged index considered representative of small-cap core funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| 2 | Invesco Select Companies Fund |
| Average Annual Total Returns |
| As of 4/30/2019, including maximum applicablesales charges |
| Class A Shares | |
| Inception (11/4/03) | 9.52% |
| 10 Years | 14.86 |
| 5 Years | 4.93 |
| 1 Year | -2.72 |
| Class C Shares | |
| Inception (11/4/03) | 9.39% |
| 10 Years | 14.65 |
| 5 Years | 5.33 |
| 1 Year | 1.26 |
| Class R Shares | |
| Inception (4/30/04) | 9.59% |
| 10 Years | 15.22 |
| 5 Years | 5.86 |
| 1 Year | 2.70 |
| Class Y Shares | |
| Inception (10/3/08) | 12.87% |
| 10 Years | 15.79 |
| 5 Years | 6.38 |
| 1 Year | 3.19 |
| Class R5 Shares | |
| Inception (4/30/04) | 10.30% |
| 10 Years | 15.94 |
| 5 Years | 6.49 |
| 1 Year | 3.36 |
| Class R6 Shares | |
| 10 Years | 15.60% |
| 5 Years | 6.31 |
| 1 Year | 3.40 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C,
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end,including maximum applicable sales charges |
| Class A Shares | |
| Inception (11/4/03) | 9.48% |
| 10 Years | 16.57 |
| 5 Years | 4.36 |
| 1 Year | -5.75 |
| Class C Shares | |
| Inception (11/4/03) | 9.36% |
| 10 Years | 16.35 |
| 5 Years | 4.74 |
| 1 Year | -2.00 |
| Class R Shares | |
| Inception (4/30/04) | 9.55% |
| 10 Years | 16.93 |
| 5 Years | 5.28 |
| 1 Year | -0.56 |
| Class Y Shares | |
| Inception (10/3/08) | 12.83% |
| 10 Years | 17.53 |
| 5 Years | 5.81 |
| 1 Year | -0.04 |
| Class R5 Shares | |
| Inception (4/30/04) | 10.26% |
| 10 Years | 17.67 |
| 5 Years | 5.91 |
| 1 Year | 0.11 |
| Class R6 Shares | |
| 10 Years | 17.33% |
| 5 Years | 5.72 |
| 1 Year | 0.16 |
Class R, Class Y, Class R5 and Class R6 shares was 1.25%, 2.00%, 1.50%, 1.00%, 0.93% and 0.85%, respectively.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares was 1.26%, 2.01%, 1.51%, 1.01%, 0.94% and 0.86%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 5.50% sales charge and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, Investor Class, Class R5 and Class R6 shares do not have a front-end sales
charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
| 3 | Invesco Select Companies Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco Select Companies Fund |
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–96.14% |
| Airlines–3.25% |
| Spirit Airlines, Inc.(b) | 230,684 | $12,544,596 |
| Application Software–4.84% |
| Nuance Communications, Inc.(b) | 1,109,274 | 18,669,081 |
| Cable & Satellite–5.58% |
| Liberty Broadband Corp., Class A(b) | 218,853 | 21,532,947 |
| Commodity Chemicals–1.77% |
| Chemtrade Logistics Income Fund (Canada) | 1,045,784 | 6,830,343 |
| Communications Equipment–5.58% |
| CommScope Holding Co., Inc.(b) | 868,253 | 21,515,309 |
| Consumer Finance–6.15% |
| Encore Capital Group, Inc.(b) | 839,883 | 23,735,094 |
| Data Processing & Outsourced Services–17.61% |
| Alliance Data Systems Corp. | 66,710 | 10,680,271 |
| Equiniti Group PLC REGS (United Kingdom)(c) | 6,024,269 | 16,858,222 |
| Global Payments, Inc. | 150,386 | 21,966,883 |
| Sabre Corp. | 888,242 | 18,439,904 |
| | | | 67,945,280 |
| Diversified Support Services–2.76% |
| Performant Financial Corp.(b)(d) | 5,527,196 | 10,667,488 |
| Electrical Components & Equipment–5.09% |
| Regal Beloit Corp. | 230,867 | 19,642,164 |
| Health Care Supplies–4.77% |
| Cooper Cos., Inc. (The) | 63,545 | 18,422,966 |
| Home Furnishings–2.17% |
| Tempur Sealy International, Inc.(b) | 136,150 | 8,359,610 |
| IT Consulting & Other Services–5.12% |
| Booz Allen Hamilton Holding Corp. | 333,163 | 19,753,234 |
| Life Sciences Tools & Services–4.65% |
| Charles River Laboratories International, Inc.(b) | 127,827 | 17,955,859 |
| | Shares | Value |
| Office Services & Supplies–3.55% |
| Interface, Inc. | 853,006 | $13,682,216 |
| Oil & Gas Equipment & Services–1.21% |
| ION Geophysical Corp.(b) | 364,693 | 4,664,423 |
| Oil & Gas Storage & Transportation–4.40% |
| GasLog Ltd. (Monaco) | 1,085,147 | 16,960,848 |
| Real Estate Services–4.45% |
| Colliers International Group, Inc. (Canada) | 267,453 | 17,184,709 |
| Specialty Chemicals–5.04% |
| Axalta Coating Systems Ltd.(b) | 720,716 | 19,444,918 |
| Systems Software–2.14% |
| TiVo Corp. | 879,815 | 8,243,867 |
| Technology Distributors–5.41% |
| Insight Enterprises, Inc.(b) | 368,613 | 20,856,123 |
| Trading Companies & Distributors–0.60% |
| SiteOne Landscape Supply, Inc.(b) | 34,424 | 2,316,735 |
| Total Common Stocks & Other Equity Interests (Cost $312,860,315) | 370,927,810 |
|
| Money Market Funds–3.60% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(e) | 4,853,713 | 4,853,713 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(e) | 3,465,501 | 3,466,541 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(e) | 5,547,100 | 5,547,100 |
| Total Money Market Funds (Cost $13,866,966) | 13,867,354 |
| TOTAL INVESTMENTS IN SECURITIES–99.74% (Cost $326,727,281) | 384,795,164 |
| OTHER ASSETS LESS LIABILITIES–0.26% | 1,013,599 |
| NET ASSETS–100.00% | $385,808,763 |
Investment Abbreviations:
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Select Companies 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) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at April 30, 2019 represented 4.37% of the Fund’s Net Assets. |
| (d) | Affiliated company during the period. The Investment Company Act of 1940 defines an “affiliated person” as an issuance in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The value of this security as of April 30, 2019 represented 2.76% of the Fund’s Net Assets. See Note 4. |
| (e) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Information Technology | 40.70% |
| Industrials | 15.25 |
| Health Care | 9.42 |
| Materials | 6.81 |
| Financials | 6.15 |
| Energy | 5.61 |
| Communication Services | 5.58 |
| Real Estate | 4.45 |
| Consumer Discretionary | 2.17 |
| Money Market Funds Plus Other Assets Less Liabilities | 3.86 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Select Companies Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $268,402,200) | $360,260,322 |
| Investments in affiliates, at value (Cost $58,325,081) | 24,534,842 |
| Foreign currencies, at value (Cost $143,685) | 144,223 |
| Receivable for: | |
| Investments sold | 3,072,453 |
| Fund shares sold | 265,220 |
| Dividends | 370,761 |
| Investment for trustee deferred compensation and retirement plans | 156,305 |
| Other assets | 42,625 |
| Total assets | 388,846,751 |
| Liabilities: | |
| Payable for: | |
| Investments purchased | 433,525 |
| Fund shares reacquired | 1,866,977 |
| Amount due custodian | 237,985 |
| Accrued fees to affiliates | 275,665 |
| Accrued trustees’ and officers’ fees and benefits | 1,888 |
| Accrued other operating expenses | 52,584 |
| Trustee deferred compensation and retirement plans | 169,364 |
| Total liabilities | 3,037,988 |
| Net assets applicable to shares outstanding | $385,808,763 |
| Net assets consist of: | |
| Shares of beneficial interest | $311,299,345 |
| Distributable earnings | 74,509,418 |
| | $385,808,763 |
| Net Assets: |
| Class A | $230,017,006 |
| Class C | $23,647,489 |
| Class R | $14,269,959 |
| Class Y | $94,030,655 |
| Class R5 | $22,365,094 |
| Class R6 | $1,478,560 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 12,863,952 |
| Class C | 1,605,712 |
| Class R | 845,413 |
| Class Y | 5,097,866 |
| Class R5 | 1,152,517 |
| Class R6 | 76,048 |
| Class A: | |
| Net asset value per share | $17.88 |
Maximum offering price per share
(Net asset value of $17.88 ÷ 94.50%) | $18.92 |
| Class C: | |
| Net asset value and offering price per share | $14.73 |
| Class R: | |
| Net asset value and offering price per share | $16.88 |
| Class Y: | |
| Net asset value and offering price per share | $18.45 |
| Class R5: | |
| Net asset value and offering price per share | $19.41 |
| Class R6: | |
| Net asset value and offering price per share | $19.44 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Select Companies Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends (net of foreign withholding taxes of $2,649) | $1,520,613 |
| Dividends from affiliated money market funds | 225,753 |
| Total investment income | 1,746,366 |
| Expenses: | |
| Advisory fees | 1,398,892 |
| Administrative services fees | 36,603 |
| Custodian fees | 1,552 |
| Distribution fees: | |
| Class A | 269,748 |
| Class C | 171,139 |
| Class R | 36,976 |
| Transfer agent fees — A, C, R and Y | 433,754 |
| Transfer agent fees — R5 | 10,938 |
| Transfer agent fees — R6 | 110 |
| Trustees’ and officers’ fees and benefits | 14,027 |
| Registration and filing fees | 45,015 |
| Reports to shareholders | 8,813 |
| Professional services fees | 9,449 |
| Other | 4,820 |
| Total expenses | 2,441,836 |
| Less: Fees waived and expense offset arrangement(s) | (16,259) |
| Net expenses | 2,425,577 |
| Net investment income (loss) | (679,211) |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | 17,961,684 |
| Foreign currencies | (20,408) |
| | 17,941,276 |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | (1,693,954) |
| Foreign currencies | 563 |
| | (1,693,391) |
| Net realized and unrealized gain | 16,247,885 |
| Net increase in net assets resulting from operations | $15,568,674 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Select Companies Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income (loss) | $(679,211) | $(1,154,242) |
| Net realized gain | 17,941,276 | 24,073,091 |
| Change in net unrealized appreciation (depreciation) | (1,693,391) | (6,917,389) |
| Net increase in net assets resulting from operations | 15,568,674 | 16,001,460 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (12,086,276) | (32,431,701) |
| Class B | — | (169,180) |
| Class C | (3,239,305) | (13,319,235) |
| Class R | (947,329) | (3,056,204) |
| Class Y | (5,237,286) | (10,068,006) |
| Class R5 | (1,200,012) | (3,307,865) |
| Class R6 | (43,534) | (1,367) |
| Total distributions to shareholders from distributable earnings | (22,753,742) | (62,353,558) |
| Share transactions–net: | | |
| Class A | 11,730,244 | (6,611,839) |
| Class B | — | (1,130,324) |
| Class C | (23,130,694) | (35,866,971) |
| Class R | (1,797,107) | (4,126,871) |
| Class Y | (221,419) | 23,695,448 |
| Class R5 | (611,396) | (1,602,493) |
| Class R6 | 712,640 | 758,179 |
| Net increase (decrease) in net assets resulting from share transactions | (13,317,732) | (24,884,871) |
| Net increase (decrease) in net assets | (20,502,800) | (71,236,969) |
| Net assets: | | |
| Beginning of period | 406,311,563 | 477,548,532 |
| End of period | $385,808,763 | $406,311,563 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Select Companies Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 |
| Six months ended 04/30/19 | $18.20 | $(0.03) | $0.74 | $0.71 | $(1.03) | $17.88 | 4.76% | $230,017 | 1.29%(d) | 1.30%(d) | (0.37)%(d) | 12% |
| Year ended 10/31/18 | 20.30 | (0.04) | 0.61 | 0.57 | (2.67) | 18.20 | 2.76 | 220,107 | 1.24 | 1.25 | (0.19) | 12 |
| Year ended 10/31/17 | 16.72 | (0.07) | 4.29 | 4.22 | (0.64) | 20.30 | 25.71 | 250,619 | 1.27 | 1.28 | (0.39) | 16 |
| Year ended 10/31/16 | 20.44 | (0.08) | 0.56 | 0.48 | (4.20) | 16.72 | 5.22 | 305,003 | 1.24 | 1.25 | (0.53) | 20 |
| Year ended 10/31/15 | 25.47 | (0.19) | (2.37) | (2.56) | (2.47) | 20.44 | (10.79) | 475,536 | 1.17 | 1.20 | (0.86) | 14 |
| Year ended 10/31/14 | 23.95 | (0.06) | 2.71 | 2.65 | (1.13) | 25.47 | 11.66 | 754,310 | 1.16 | 1.20 | (0.28) | 10 |
| Class C |
| Six months ended 04/30/19 | 15.25 | (0.08) | 0.59 | 0.51 | (1.03) | 14.73 | 4.35 | 23,647 | 2.04(d) | 2.05(d) | (1.12)(d) | 12 |
| Year ended 10/31/18 | 17.54 | (0.15) | 0.53 | 0.38 | 2.67 | 15.25 | 2.01 | 49,959 | 1.99 | 2.00 | (0.94) | 12 |
| Year ended 10/31/17 | 14.63 | (0.19) | 3.74 | 3.55 | (0.64) | 17.54 | 24.77 | 95,457 | 2.02 | 2.03 | (1.14) | 16 |
| Year ended 10/31/16 | 18.57 | (0.18) | 0.44 | 0.26 | (4.20) | 14.63 | 4.39 | 99,413 | 1.99 | 2.00 | (1.28) | 20 |
| Year ended 10/31/15 | 23.53 | (0.33) | (2.16) | (2.49) | (2.47) | 18.57 | (11.45) | 125,947 | 1.92 | 1.95 | (1.61) | 14 |
| Year ended 10/31/14 | 22.37 | (0.23) | 2.52 | 2.29 | (1.13) | 23.53 | 10.83 | 180,853 | 1.91 | 1.95 | (1.03) | 10 |
| Class R |
| Six months ended 04/30/19 | 17.27 | (0.05) | 0.69 | 0.64 | (1.03) | 16.88 | 4.61 | 14,270 | 1.54(d) | 1.55(d) | (0.62)(d) | 12 |
| Year ended 10/31/18 | 19.43 | (0.08) | 0.59 | 0.51 | (2.67) | 17.27 | 2.55 | 16,427 | 1.49 | 1.50 | (0.44) | 12 |
| Year ended 10/31/17 | 16.06 | (0.11) | 4.12 | 4.01 | (0.64) | 19.43 | 25.45 | 22,747 | 1.52 | 1.53 | (0.64) | 16 |
| Year ended 10/31/16 | 19.86 | (0.12) | 0.52 | 0.40 | (4.20) | 16.06 | 4.90 | 29,623 | 1.49 | 1.50 | (0.78) | 20 |
| Year ended 10/31/15 | 24.88 | (0.24) | (2.31) | (2.55) | (2.47) | 19.86 | (11.03) | 45,561 | 1.42 | 1.45 | (1.11) | 14 |
| Year ended 10/31/14 | 23.48 | (0.12) | 2.65 | 2.53 | (1.13) | 24.88 | 11.37 | 70,177 | 1.41 | 1.45 | (0.53) | 10 |
| Class Y |
| Six months ended 04/30/19 | 18.72 | (0.01) | 0.77 | 0.76 | (1.03) | 18.45 | 4.90 | 94,031 | 1.04(d) | 1.05(d) | (0.12)(d) | 12 |
| Year ended 10/31/18 | 20.75 | 0.01 | 0.63 | 0.64 | (2.67) | 18.72 | 3.07 | 95,958 | 0.99 | 1.00 | 0.06 | 12 |
| Year ended 10/31/17 | 17.04 | (0.01) | 4.36 | 4.35 | (0.64) | 20.75 | 26.00 | 80,572 | 1.02 | 1.03 | (0.14) | 16 |
| Year ended 10/31/16 | 20.71 | (0.04) | 0.57 | 0.53 | (4.20) | 17.04 | 5.44 | 81,269 | 0.99 | 1.00 | (0.28) | 20 |
| Year ended 10/31/15 | 25.71 | (0.13) | (2.40) | (2.53) | (2.47) | 20.71 | (10.56) | 147,927 | 0.92 | 0.95 | (0.61) | 14 |
| Year ended 10/31/14 | 24.11 | (0.01) | 2.74 | 2.73 | (1.13) | 25.71 | 11.92 | 304,629 | 0.91 | 0.95 | (0.03) | 10 |
| Class R5 |
| Six months ended 04/30/19 | 19.62 | 0.00 | 0.82 | 0.82 | (1.03) | 19.41 | 4.99 | 22,365 | 0.89(d) | 0.90(d) | 0.03(d) | 12 |
| Year ended 10/31/18 | 21.62 | 0.03 | 0.64 | 0.67 | (2.67) | 19.62 | 3.09 | 23,088 | 0.92 | 0.93 | 0.13 | 12 |
| Year ended 10/31/17 | 17.71 | (0.01) | 4.56 | 4.55 | (0.64) | 21.62 | 26.15 | 26,943 | 0.92 | 0.93 | (0.04) | 16 |
| Year ended 10/31/16 | 21.33 | (0.03) | 0.61 | 0.58 | (4.20) | 17.71 | 5.54 | 32,996 | 0.89 | 0.90 | (0.18) | 20 |
| Year ended 10/31/15 | 26.38 | (0.12) | (2.46) | (2.58) | (2.47) | 21.33 | (10.47) | 51,659 | 0.85 | 0.88 | (0.54) | 14 |
| Year ended 10/31/14 | 24.69 | 0.01 | 2.81 | 2.82 | (1.13) | 26.38 | 12.01 | 66,042 | 0.84 | 0.88 | 0.04 | 10 |
| Class R6 |
| Six months ended 04/30/19 | 19.65 | 0.01 | 0.81 | 0.82 | (1.03) | 19.44 | 4.98 | 1,479 | 0.82(d) | 0.83(d) | 0.10(d) | 12 |
| Year ended 10/31/18 | 21.63 | 0.04 | 0.65 | 0.69 | (2.67) | 19.65 | 3.19 | 772 | 0.84 | 0.85 | 0.21 | 12 |
| Year ended 10/31/17(e) | 20.05 | 0.01 | 1.57 | 1.58 | — | 21.63 | 7.88 | 11 | 0.84(f) | 0.85(f) | 0.04(f) | 16 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $217,587, $34,511, $14,913, $91,340, $22,067 and $879 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | Commencement date of April 4, 2017. |
| (f) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Select Companies Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Select Companies 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 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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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
| 11 | Invesco Select Companies Fund |
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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, |
| 12 | Invesco Select Companies Fund |
| | 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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.
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.745% |
| Next $250 million | 0.730% |
| Next $500 million | 0.715% |
| Next $1.5 billion | 0.700% |
| Next $2.5 billion | 0.685% |
| Next $2.5 billion | 0.670% |
| Next $2.5 billion | 0.655% |
| Over $10 billion | 0.640% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.74%.
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 contractually agreed, through at least June 30, 2020, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waivers and/or expense reimbursements (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 “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 waivers and/or expense reimbursements 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 June 30, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
The Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $13,485.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
| 13 | Invesco Select Companies Fund |
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $15,731 in front-end sales commissions from the sale of Class A shares and $3,010 and $328 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | $370,927,810 | $— | $— | $370,927,810 |
| Money Market Funds | 13,867,354 | — | — | 13,867,354 |
| Total Investments | $384,795,164 | $— | $— | $384,795,164 |
NOTE 4—Investments in Other Affiliates
The 1940 Act defines an “affiliated person” as an issuance in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The following is a summary of the investments in other affiliates (excluding affiliated money market funds) for the six months ended April 30, 2019.
| | Value
10/31/18 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
04/30/19 | Dividend
Income |
| Performant Financial Corp. | $11,496,568 | $– | $– | $(829,080) | $– | $10,667,488 | $– |
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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,774.
| 14 | Invesco Select Companies 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 Statement of Assets and Liabilities under the payable captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $43,167,781 and $49,887,712, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $124,119,366 |
| Aggregate unrealized (depreciation) of investments | (66,249,900) |
| Net unrealized appreciation of investments | $57,869,466 |
Cost of investments for tax purposes is $326,925,698.
| 15 | Invesco Select Companies Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 962,749 | $16,155,955 | | 1,490,770 | $28,520,738 |
| Class B(b) | — | — | | 778 | 12,773 |
| Class C | 143,722 | 1,970,422 | | 210,020 | 3,381,331 |
| Class R | 146,235 | 2,428,088 | | 172,246 | 3,147,900 |
| Class Y | 697,782 | 12,084,582 | | 2,689,477 | 53,051,246 |
| Class R5 | 82,971 | 1,562,647 | | 277,970 | 5,703,058 |
| Class R6 | 44,876 | 872,639 | | 90,603 | 1,846,098 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 753,553 | 11,702,682 | | 1,729,041 | 31,606,869 |
| Class B(b) | — | — | | 10,306 | 159,223 |
| Class C | 245,264 | 3,146,737 | | 847,400 | 13,066,901 |
| Class R | 64,126 | 941,375 | | 175,781 | 3,055,075 |
| Class Y | 312,629 | 5,005,191 | | 498,347 | 9,348,985 |
| Class R5 | 71,182 | 1,197,993 | | 167,857 | 3,298,381 |
| Class R6 | 2,530 | 42,664 | | — | — |
| Conversion of Class B shares to Class A shares:(c) | | | | | |
| Class A | — | — | | 57,801 | 1,120,189 |
| Class B | — | — | | (68,385) | (1,120,189) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 1,097,882 | 18,321,703 | | - | - |
| Class C | (1,329,536) | (18,321,703) | | - | - |
| Reacquired: | | | | | |
| Class A | (2,041,343) | (34,450,096) | | (3,534,201) | (67,859,635) |
| Class B(b) | — | — | | (10,939) | (182,131) |
| Class C | (729,854) | (9,926,150) | | (3,224,768) | (52,315,203) |
| Class R | (316,250) | (5,166,570) | | (567,572) | (10,329,846) |
| Class Y | (1,038,504) | (17,311,192) | | (1,944,459) | (38,704,783) |
| Class R5 | (178,245) | (3,372,036) | | (515,697) | (10,603,932) |
| Class R6 | (10,629) | (202,663) | | (51,840) | (1,087,919) |
| Net increase (decrease) in share activity | (1,018,860) | $(13,317,732) | | (1,499,464) | $(24,884,871) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 28% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| (b) | Class B shares activity for the period September 1, 2017 through January 26, 2018 (date of conversion). |
| (c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| 16 | Invesco Select Companies Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,047.60 | $6.55 | $1,018.40 | $6.46 | 1.29% |
| Class C | 1,000.00 | 1,043.50 | 10.34 | 1,014.68 | 10.19 | 2.04 |
| Class R | 1,000.00 | 1,046.10 | 7.81 | 1,017.16 | 7.70 | 1.54 |
| Class Y | 1,000.00 | 1,048.50 | 5.28 | 1,019.64 | 5.21 | 1.04 |
| Class R5 | 1,000.00 | 1,049.90 | 4.52 | 1,020.38 | 4.46 | 0.89 |
| Class R6 | 1,000.00 | 1,049.80 | 4.17 | 1,020.73 | 4.11 | 0.82 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 17 | Invesco Select Companies Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | SCO-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco U.S. Managed Volatility Fund
Nasdaq:
R6: USMVX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class R6 Shares | 7.50% |
| S&P 500 Index▼ (Broad Market Index) | 9.76 |
Invesco US Large Cap Index■
(Style-Specific Index) | 9.80 |
Lipper S&P 500 Funds Index♦
(Peer Group Index) | 10.01 |
| Source(s):▼FactSet Research Systems Inc.;■ RIMES Technologies Corp.;♦ Lipper Inc. |
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
TheInvesco US Large Cap Index is a broad-based benchmark measuring the aggregate performance of US large-cap equities.
TheLipper S&P 500 Fund Index is an unmanaged index considered representative of S&P 500 funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
| 2 | Invesco U.S. Managed Volatility Fund |
| Average Annual Total Returns |
| As of 4/30/19 |
| Class R6 Shares | |
| Inception (12/18/17) | 6.53% |
| 1 Year | 10.89 |
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Performance figures reflect reinvested distributions and changes in net asset value. Shares of the Fund are sold at net asset value without a sales charge. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class R6 shares was 0.15%.1 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class R6 shares was 2.56%. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end |
| Class R6 Shares | |
| Inception (12/18/17) | 3.73% |
| 1 Year | 6.51 |
| 3 | Invesco U.S. Managed Volatility Fund |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
| 4 | Invesco U.S. Managed Volatility Fund |
Schedule of Investments(a)
April 30, 2019
(Unaudited)
| | Shares | Value |
| Common Stocks & Other Equity Interests–98.85% |
| Advertising–0.07% |
| Omnicom Group, Inc. | 60 | $4,802 |
| Aerospace & Defense–2.77% |
| Arconic, Inc. | 128 | 2,749 |
| Boeing Co. (The) | 158 | 59,675 |
| General Dynamics Corp. | 77 | 13,762 |
| Harris Corp. | 32 | 5,392 |
| L3 Technologies, Inc. | 21 | 4,590 |
| Lockheed Martin Corp. | 78 | 26,000 |
| Northrop Grumman Corp. | 46 | 13,336 |
| Raytheon Co. | 82 | 14,562 |
| Textron, Inc. | 64 | 3,392 |
| TransDigm Group, Inc.(b) | 14 | 6,755 |
| United Technologies Corp. | 239 | 34,084 |
| | | | 184,297 |
| Agricultural & Farm Machinery–0.22% |
| Deere & Co. | 87 | 14,410 |
| Agricultural Products–0.13% |
| Archer-Daniels-Midland Co. | 151 | 6,735 |
| Bunge Ltd. | 38 | 1,991 |
| | | | 8,726 |
| Air Freight & Logistics–0.62% |
| C.H. Robinson Worldwide, Inc. | 37 | 2,997 |
| Expeditors International of Washington, Inc. | 45 | 3,574 |
| FedEx Corp. | 69 | 13,073 |
| United Parcel Service, Inc. Class B | 200 | 21,244 |
| | | | 40,888 |
| Airlines–0.11% |
| American Airlines Group, Inc. | 31 | 1,060 |
| Delta Air Lines, Inc. | 45 | 2,623 |
| Southwest Airlines Co. | 37 | 2,006 |
| United Continental Holdings, Inc.(b) | 19 | 1,688 |
| | | | 7,377 |
| Alternative Carriers–0.05% |
| CenturyLink, Inc. | 290 | 3,312 |
| Apparel Retail–0.48% |
| Gap, Inc. (The) | 68 | 1,773 |
| L Brands, Inc. | 61 | 1,564 |
| Ross Stores, Inc. | 98 | 9,571 |
| TJX Cos., Inc. (The) | 341 | 18,714 |
| | | | 31,622 |
| | Shares | Value |
| Apparel, Accessories & Luxury Goods–0.19% |
| Tapestry, Inc. | 78 | $2,517 |
| VF Corp. | 107 | 10,102 |
| | | | 12,619 |
| Application Software–1.81% |
| Adobe, Inc.(b) | 138 | 39,916 |
| Autodesk, Inc.(b) | 59 | 10,514 |
| Citrix Systems, Inc. | 36 | 3,635 |
| Intuit, Inc. | 69 | 17,323 |
| salesforce.com, inc.(b) | 208 | 34,393 |
| Splunk, Inc.(b) | 40 | 5,522 |
| Workday, Inc., Class A(b) | 43 | 8,842 |
| | | | 120,145 |
| Asset Management & Custody Banks–0.93% |
| Ameriprise Financial, Inc. | 37 | 5,430 |
| Bank of New York Mellon Corp. (The) | 255 | 12,663 |
| BlackRock, Inc. | 44 | 21,351 |
| Franklin Resources, Inc. | 76 | 2,629 |
| Northern Trust Corp. | 58 | 5,716 |
| State Street Corp. | 105 | 7,104 |
| T. Rowe Price Group, Inc. | 62 | 6,665 |
| | | | 61,558 |
| Auto Parts & Equipment–0.03% |
| BorgWarner, Inc. | 55 | 2,297 |
| Automobile Manufacturers–0.52% |
| Ford Motor Co. | 1,086 | 11,349 |
| General Motors Co. | 388 | 15,112 |
| Tesla, Inc.(b) | 35 | 8,354 |
| | | | 34,815 |
| Automotive Retail–0.28% |
| AutoZone, Inc.(b) | 7 | 7,198 |
| CarMax, Inc.(b) | 46 | 3,582 |
| O’Reilly Automotive, Inc.(b) | 21 | 7,950 |
| | | | 18,730 |
| Biotechnology–2.32% |
| AbbVie, Inc. | 420 | 33,344 |
| Alexion Pharmaceuticals, Inc.(b) | 62 | 8,440 |
| Amgen, Inc. | 169 | 30,305 |
| Biogen, Inc.(b) | 53 | 12,150 |
| BioMarin Pharmaceutical, Inc.(b) | 47 | 4,020 |
| Celgene Corp.(b) | 193 | 18,269 |
| Gilead Sciences, Inc. | 357 | 23,219 |
| Incyte Corp.(b) | 57 | 4,378 |
| Regeneron Pharmaceuticals, Inc.(b) | 23 | 7,892 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco U.S. Managed Volatility Fund |
| | Shares | Value |
| Biotechnology–(continued) |
| Vertex Pharmaceuticals, Inc.(b) | 71 | $11,998 |
| | | | 154,015 |
| Brewers–0.05% |
| Molson Coors Brewing Co. Class B | 52 | 3,338 |
| Broadcasting–0.17% |
| CBS Corp. Class B | 93 | 4,768 |
| Fox Corp., Class A(b) | 169 | 6,589 |
| | | | 11,357 |
| Building Products–0.14% |
| Johnson Controls International PLC | 248 | 9,300 |
| Cable & Satellite–1.27% |
| Charter Communications, Inc., Class A(b) | 46 | 17,075 |
| Comcast Corp., Class A | 1,263 | 54,978 |
| Liberty Broadband Corp. Class C(b) | 49 | 4,837 |
| Liberty Media Corp.-Liberty SiriusXM Series C(b) | 126 | 5,060 |
| Sirius XM Holdings, Inc. | 369 | 2,144 |
| | | | 84,094 |
| Casinos & Gaming–0.21% |
| Las Vegas Sands Corp. | 102 | 6,839 |
| MGM Resorts International | 137 | 3,649 |
| Wynn Resorts, Ltd. | 25 | 3,611 |
| | | | 14,099 |
| Commodity Chemicals–0.18% |
| Dow, Inc.(b) | 203 | 11,516 |
| Westlake Chemical Corp. | 10 | 698 |
| | | | 12,214 |
| Communications Equipment–1.22% |
| Arista Networks, Inc.(b) | 16 | 4,997 |
| Cisco Systems, Inc. | 1,200 | 67,140 |
| Juniper Networks, Inc. | 91 | 2,527 |
| Motorola Solutions, Inc. | 45 | 6,521 |
| | | | 81,185 |
| Computer & Electronics Retail–0.07% |
| Best Buy Co., Inc. | 61 | 4,539 |
| Construction Machinery & Heavy Trucks–0.53% |
| Caterpillar, Inc. | 155 | 21,610 |
| Cummins, Inc. | 42 | 6,984 |
| PACCAR, Inc. | 92 | 6,594 |
| | | | 35,188 |
| Construction Materials–0.13% |
| Martin Marietta Materials, Inc. | 17 | 3,772 |
| Vulcan Materials Co. | 36 | 4,540 |
| | | | 8,312 |
| Consumer Finance–0.85% |
| Ally Financial, Inc. | 109 | 3,238 |
| | Shares | Value |
| Consumer Finance–(continued) |
| American Express Co. | 233 | $27,315 |
| Capital One Financial Corp. | 129 | 11,975 |
| Discover Financial Services | 88 | 7,171 |
| Synchrony Financial | 188 | 6,518 |
| | | | 56,217 |
| Copper–0.07% |
| Freeport-McMoRan, Inc. | 389 | 4,789 |
| Data Processing & Outsourced Services–4.09% |
| Alliance Data Systems Corp. | 14 | 2,241 |
| Automatic Data Processing, Inc. | 120 | 19,727 |
| Fidelity National Information Services, Inc. | 87 | 10,086 |
| Fiserv, Inc.(b) | 106 | 9,247 |
| FleetCor Technologies, Inc.(b) | 24 | 6,263 |
| Global Payments, Inc. | 41 | 5,989 |
| Mastercard, Inc., Class A | 281 | 71,442 |
| Paychex, Inc. | 86 | 7,251 |
| PayPal Holdings, Inc.(b) | 316 | 35,635 |
| Square, Inc., Class A(b) | 93 | 6,772 |
| Total System Services, Inc. | 48 | 4,908 |
| Visa, Inc., Class A | 491 | 80,735 |
| Western Union Co. (The) | 118 | 2,294 |
| Worldpay, Inc., Class A(b) | 81 | 9,494 |
| | | | 272,084 |
| Distillers & Vintners–0.20% |
| Brown-Forman Corp. Class B | 81 | 4,316 |
| Constellation Brands, Inc., Class A | 43 | 9,102 |
| | | | 13,418 |
| Distributors–0.06% |
| Genuine Parts Co. | 40 | 4,102 |
| Diversified Banks–4.79% |
| Bank of America Corp. | 2,671 | 81,679 |
| Citigroup, Inc. | 647 | 45,743 |
| JPMorgan Chase & Co. | 915 | 106,186 |
| U.S. Bancorp | 452 | 24,101 |
| Wells Fargo & Co. | 1,252 | 60,609 |
| | | | 318,318 |
| Diversified Chemicals–0.05% |
| Eastman Chemical Co. | 38 | 2,997 |
| Diversified Support Services–0.08% |
| Cintas Corp. | 24 | 5,211 |
| Drug Retail–0.18% |
| Walgreens Boots Alliance, Inc. | 218 | 11,678 |
| Electric Utilities–1.87% |
| American Electric Power Co., Inc. | 134 | 11,464 |
| Avangrid, Inc. | 15 | 768 |
| Duke Energy Corp. | 204 | 18,588 |
| Edison International | 88 | 5,612 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco U.S. Managed Volatility Fund |
| | Shares | Value |
| Electric Utilities–(continued) |
| Entergy Corp. | 52 | $5,039 |
| Eversource Energy | 85 | 6,091 |
| Exelon Corp. | 267 | 13,604 |
| FirstEnergy Corp. | 152 | 6,389 |
| NextEra Energy, Inc. | 137 | 26,638 |
| PPL Corp. | 200 | 6,242 |
| Southern Co. (The) | 295 | 15,700 |
| Xcel Energy, Inc. | 139 | 7,853 |
| | | | 123,988 |
| Electrical Components & Equipment–0.49% |
| AMETEK, Inc. | 61 | 5,378 |
| Eaton Corp. PLC | 117 | 9,690 |
| Emerson Electric Co. | 168 | 11,926 |
| Rockwell Automation, Inc. | 32 | 5,783 |
| | | | 32,777 |
| Electronic Components–0.22% |
| Amphenol Corp., Class A | 81 | 8,064 |
| Corning, Inc. | 213 | 6,784 |
| | | | 14,848 |
| Environmental & Facilities Services–0.30% |
| Republic Services, Inc. | 87 | 7,206 |
| Waste Management, Inc. | 121 | 12,988 |
| | | | 20,194 |
| Fertilizers & Agricultural Chemicals–0.04% |
| Mosaic Co. (The) | 95 | 2,480 |
| Financial Exchanges & Data–0.85% |
| CME Group, Inc., Class A | 98 | 17,532 |
| Intercontinental Exchange, Inc. | 155 | 12,610 |
| Moody’s Corp. | 55 | 10,814 |
| S&P Global, Inc. | 70 | 15,446 |
| | | | 56,402 |
| Food Distributors–0.15% |
| Sysco Corp. | 139 | 9,781 |
| Food Retail–0.08% |
| Kroger Co. (The) | 214 | 5,517 |
| Footwear–0.45% |
| NIKE, Inc. Class B | 341 | 29,950 |
| General Merchandise Stores–0.41% |
| Dollar General Corp. | 71 | 8,952 |
| Dollar Tree, Inc.(b) | 62 | 6,899 |
| Target Corp. | 149 | 11,536 |
| | | | 27,387 |
| Gold–0.11% |
| Newmont Goldcorp Corp. | 229 | 7,113 |
| | Shares | Value |
| Health Care Distributors–0.24% |
| AmerisourceBergen Corp. | 42 | $3,140 |
| Cardinal Health, Inc. | 82 | 3,994 |
| Henry Schein, Inc.(b) | 41 | 2,626 |
| McKesson Corp. | 51 | 6,082 |
| | | | 15,842 |
| Health Care Equipment–3.00% |
| Abbott Laboratories | 495 | 39,382 |
| ABIOMED, Inc.(b) | 12 | 3,329 |
| Baxter International, Inc. | 136 | 10,377 |
| Becton, Dickinson and Co. | 74 | 17,815 |
| Boston Scientific Corp.(b) | 381 | 14,143 |
| Danaher Corp. | 175 | 23,177 |
| Edwards Lifesciences Corp.(b) | 57 | 10,036 |
| IDEXX Laboratories, Inc.(b) | 23 | 5,336 |
| Intuitive Surgical, Inc.(b) | 33 | 16,851 |
| Medtronic PLC | 382 | 33,925 |
| Stryker Corp. | 97 | 18,324 |
| Zimmer Biomet Holdings, Inc. | 55 | 6,774 |
| | | | 199,469 |
| Health Care Facilities–0.14% |
| HCA Healthcare, Inc. | 74 | 9,415 |
| Health Care REITs–0.27% |
| HCP, Inc. | 129 | 3,842 |
| Ventas, Inc. | 96 | 5,866 |
| Welltower, Inc. | 109 | 8,124 |
| | | | 17,832 |
| Health Care Services–0.70% |
| Cigna Corp. | 105 | 16,678 |
| CVS Health Corp. | 357 | 19,414 |
| DaVita, Inc.(b) | 44 | 2,430 |
| Laboratory Corp. of America Holdings(b) | 27 | 4,318 |
| Quest Diagnostics, Inc. | 37 | 3,566 |
| | | | 46,406 |
| Health Care Supplies–0.14% |
| Align Technology, Inc.(b) | 20 | 6,493 |
| DENTSPLY SIRONA, Inc. | 59 | 3,017 |
| | | | 9,510 |
| Health Care Technology–0.09% |
| Cerner Corp.(b) | 85 | 5,648 |
| Home Furnishings–0.03% |
| Mohawk Industries, Inc.(b) | 17 | 2,316 |
| Home Improvement Retail–1.36% |
| Home Depot, Inc. (The) | 315 | 64,166 |
| Lowe’s Cos., Inc. | 229 | 25,909 |
| | | | 90,075 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco U.S. Managed Volatility Fund |
| | Shares | Value |
| Homebuilding–0.12% |
| D.R. Horton, Inc. | 92 | $4,077 |
| Lennar Corp., Class A | 81 | 4,214 |
| | | | 8,291 |
| Hotel & Resort REITs–0.06% |
| Host Hotels & Resorts, Inc. | 198 | 3,810 |
| Hotels, Resorts & Cruise Lines–0.44% |
| Carnival Corp. | 117 | 6,419 |
| Hilton Worldwide Holdings, Inc. | 78 | 6,785 |
| Marriott International, Inc., Class A | 78 | 10,641 |
| Royal Caribbean Cruises Ltd. | 45 | 5,442 |
| | | | 29,287 |
| Household Appliances–0.04% |
| Whirlpool Corp. | 17 | 2,360 |
| Household Products–1.75% |
| Church & Dwight Co., Inc. | 66 | 4,947 |
| Clorox Co. (The) | 35 | 5,590 |
| Colgate-Palmolive Co. | 249 | 18,125 |
| Kimberly-Clark Corp. | 93 | 11,939 |
| Procter & Gamble Co. (The) | 708 | 75,388 |
| | | | 115,989 |
| Housewares & Specialties–0.03% |
| Newell Brands, Inc. | 123 | 1,769 |
| Hypermarkets & Super Centers–1.08% |
| Costco Wholesale Corp. | 122 | 29,955 |
| Walmart, Inc. | 404 | 41,547 |
| | | | 71,502 |
| Industrial Conglomerates–1.52% |
| 3M Co. | 160 | 30,321 |
| General Electric Co. | 2,492 | 25,344 |
| Honeywell International, Inc. | 204 | 35,420 |
| Roper Technologies, Inc. | 28 | 10,072 |
| | | | 101,157 |
| Industrial Gases–0.61% |
| Air Products and Chemicals, Inc. | 61 | 12,553 |
| Linde PLC (United Kingdom) | 156 | 28,121 |
| | | | 40,674 |
| Industrial Machinery–0.69% |
| Dover Corp. | 39 | 3,823 |
| Fortive Corp. | 81 | 6,993 |
| Illinois Tool Works, Inc. | 93 | 14,474 |
| Ingersoll-Rand PLC | 66 | 8,092 |
| Parker-Hannifin Corp. | 36 | 6,519 |
| Stanley Black & Decker, Inc. | 41 | 6,011 |
| | | | 45,912 |
| Industrial REITs–0.20% |
| Prologis, Inc. | 173 | 13,264 |
| | Shares | Value |
| Insurance Brokers–0.20% |
| Marsh & McLennan Cos., Inc. | 139 | $13,106 |
| Integrated Oil & Gas–2.58% |
| Chevron Corp. | 530 | 63,632 |
| Exxon Mobil Corp. | 1,192 | 95,694 |
| Occidental Petroleum Corp. | 206 | 12,129 |
| | | | 171,455 |
| Integrated Telecommunication Services–1.96% |
| AT&T, Inc. | 2,056 | 63,654 |
| Verizon Communications, Inc. | 1,165 | 66,626 |
| | | | 130,280 |
| Interactive Home Entertainment–0.26% |
| Activision Blizzard, Inc. | 207 | 9,980 |
| Electronic Arts, Inc.(b) | 79 | 7,477 |
| | | | 17,457 |
| Interactive Media & Services–5.11% |
| Alphabet, Inc., Class A(b) | 169 | 202,624 |
| Facebook, Inc., Class A(b) | 656 | 126,870 |
| Snap, Inc., Class A(b) | 185 | 2,061 |
| Twitter, Inc.(b) | 195 | 7,783 |
| | | | 339,338 |
| Internet & Direct Marketing Retail–3.95% |
| Amazon.com, Inc.(b) | 116 | 223,477 |
| Booking Holdings, Inc.(b) | 13 | 24,115 |
| eBay, Inc. | 227 | 8,796 |
| Expedia Group, Inc. | 32 | 4,155 |
| Qurate Retail, Inc.(b) | 105 | 1,790 |
| | | | 262,333 |
| Internet Services & Infrastructure–0.14% |
| Akamai Technologies, Inc.(b) | 41 | 3,283 |
| VeriSign, Inc.(b) | 32 | 6,318 |
| | | | 9,601 |
| Investment Banking & Brokerage–0.94% |
| Charles Schwab Corp. (The) | 329 | 15,062 |
| E*TRADE Financial Corp. | 67 | 3,394 |
| Goldman Sachs Group, Inc. (The) | 95 | 19,562 |
| Morgan Stanley | 355 | 17,129 |
| TD Ameritrade Holding Corp. | 141 | 7,414 |
| | | | 62,561 |
| IT Consulting & Other Services–1.27% |
| Accenture PLC, Class A | 180 | 32,881 |
| Cognizant Technology Solutions Corp., Class A | 158 | 11,528 |
| DXC Technology Co. | 71 | 4,667 |
| International Business Machines Corp. | 250 | 35,067 |
| | | | 84,143 |
| Life & Health Insurance–0.63% |
| Aflac, Inc. | 206 | 10,378 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco U.S. Managed Volatility Fund |
| | Shares | Value |
| Life & Health Insurance–(continued) |
| Lincoln National Corp. | 56 | $3,737 |
| MetLife, Inc. | 256 | 11,809 |
| Principal Financial Group, Inc. | 75 | 4,287 |
| Prudential Financial, Inc. | 113 | 11,945 |
| | | | 42,156 |
| Life Sciences Tools & Services–1.01% |
| Agilent Technologies, Inc. | 86 | 6,751 |
| Illumina, Inc.(b) | 40 | 12,480 |
| IQVIA Holdings, Inc.(b) | 51 | 7,084 |
| Mettler-Toledo International, Inc.(b) | 7 | 5,217 |
| Thermo Fisher Scientific, Inc. | 114 | 31,629 |
| Waters Corp.(b) | 19 | 4,057 |
| | | | 67,218 |
| Managed Health Care–1.45% |
| Anthem, Inc. | 71 | 18,675 |
| Centene Corp.(b) | 112 | 5,775 |
| Humana, Inc. | 37 | 9,450 |
| UnitedHealth Group, Inc. | 268 | 62,463 |
| | | | 96,363 |
| Metal & Glass Containers–0.08% |
| Ball Corp. | 89 | 5,335 |
| Mortgage REITs–0.06% |
| Annaly Capital Management, Inc. | 388 | 3,915 |
| Movies & Entertainment–1.77% |
| Netflix, Inc.(b) | 121 | 44,835 |
| Viacom, Inc. Class B | 99 | 2,862 |
| Walt Disney Co. (The) | 510 | 69,855 |
| | | | 117,552 |
| Multi-line Insurance–0.25% |
| American International Group, Inc. | 237 | 11,274 |
| Hartford Financial Services Group, Inc. (The) | 97 | 5,074 |
| | | | 16,348 |
| Multi-Sector Holdings–1.25% |
| Berkshire Hathaway, Inc. Class B(b) | 383 | 83,000 |
| Multi-Utilities–0.96% |
| Ameren Corp. | 65 | 4,730 |
| Consolidated Edison, Inc. | 89 | 7,668 |
| Dominion Energy, Inc. | 232 | 18,066 |
| DTE Energy Co. | 50 | 6,286 |
| NiSource, Inc. | 100 | 2,778 |
| Public Service Enterprise Group, Inc. | 136 | 8,112 |
| Sempra Energy | 76 | 9,724 |
| WEC Energy Group, Inc. | 85 | 6,667 |
| | | | 64,031 |
| Office REITs–0.13% |
| Boston Properties, Inc. | 42 | 5,780 |
| | Shares | Value |
| Office REITs–(continued) |
| Vornado Realty Trust | 46 | $3,180 |
| | | | 8,960 |
| Oil & Gas Equipment & Services–0.44% |
| Baker Hughes, a GE Co., Class A | 142 | 3,411 |
| Halliburton Co. | 235 | 6,657 |
| National Oilwell Varco, Inc. | 104 | 2,719 |
| Schlumberger Ltd. | 380 | 16,218 |
| | | | 29,005 |
| Oil & Gas Exploration & Production–1.25% |
| Anadarko Petroleum Corp. | 134 | 9,762 |
| Apache Corp. | 102 | 3,357 |
| Cabot Oil & Gas Corp. | 112 | 2,900 |
| Concho Resources, Inc. | 53 | 6,115 |
| ConocoPhillips | 319 | 20,135 |
| Continental Resources, Inc.(b) | 24 | 1,104 |
| Devon Energy Corp. | 110 | 3,535 |
| EOG Resources, Inc. | 160 | 15,368 |
| EQT Corp. | 66 | 1,350 |
| Hess Corp. | 75 | 4,809 |
| Marathon Oil Corp. | 218 | 3,715 |
| Noble Energy, Inc. | 127 | 3,436 |
| Pioneer Natural Resources Co. | 45 | 7,491 |
| | | | 83,077 |
| Oil & Gas Refining & Marketing–0.50% |
| Marathon Petroleum Corp. | 186 | 11,322 |
| Phillips 66 | 124 | 11,690 |
| Valero Energy Corp. | 114 | 10,335 |
| | | | 33,347 |
| Oil & Gas Storage & Transportation–0.48% |
| Cheniere Energy, Inc.(b) | 68 | 4,376 |
| Kinder Morgan, Inc. | 548 | 10,889 |
| ONEOK, Inc. | 111 | 7,540 |
| Williams Cos., Inc. (The) | 327 | 9,264 |
| | | | 32,069 |
| Packaged Foods & Meats–1.05% |
| Campbell Soup Co. | 51 | 1,973 |
| Conagra Brands, Inc. | 135 | 4,155 |
| General Mills, Inc. | 160 | 8,235 |
| Hershey Co. (The) | 41 | 5,119 |
| Hormel Foods Corp. | 143 | 5,711 |
| JM Smucker Co. (The) | 30 | 3,679 |
| Kellogg Co. | 93 | 5,608 |
| Kraft Heinz Co. (The) | 261 | 8,676 |
| Mondelez International, Inc., Class A | 407 | 20,696 |
| Tyson Foods, Inc., Class A | 78 | 5,851 |
| | | | 69,703 |
| Paper Packaging–0.11% |
| International Paper Co. | 108 | 5,056 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco U.S. Managed Volatility Fund |
| | Shares | Value |
| Paper Packaging–(continued) |
| WestRock Co. | 67 | $2,571 |
| | | | 7,627 |
| Personal Products–0.17% |
| Coty, Inc., Class A | 122 | 1,320 |
| Estee Lauder Cos., Inc. (The), Class A | 59 | 10,137 |
| | | | 11,457 |
| Pharmaceuticals–4.60% |
| Allergan PLC | 90 | 13,230 |
| Bristol-Myers Squibb Co. | 450 | 20,893 |
| Eli Lilly and Co. | 268 | 31,367 |
| Johnson & Johnson | 749 | 105,759 |
| Merck & Co., Inc. | 721 | 56,750 |
| Perrigo Co. PLC | 37 | 1,773 |
| Pfizer, Inc. | 1,549 | 62,905 |
| Zoetis, Inc. | 130 | 13,239 |
| | | | 305,916 |
| Property & Casualty Insurance–0.60% |
| Allstate Corp. (The) | 88 | 8,718 |
| Loews Corp. | 73 | 3,744 |
| Markel Corp.(b) | 4 | 4,286 |
| Progressive Corp. (The) | 161 | 12,582 |
| Travelers Cos., Inc. (The) | 72 | 10,350 |
| | | | 39,680 |
| Railroads–1.07% |
| CSX Corp. | 219 | 17,439 |
| Kansas City Southern | 27 | 3,325 |
| Norfolk Southern Corp. | 73 | 14,893 |
| Union Pacific Corp. | 202 | 35,762 |
| | | | 71,419 |
| Real Estate Services–0.07% |
| CBRE Group, Inc., Class A(b) | 91 | 4,738 |
| Regional Banks–1.16% |
| BB&T Corp. | 211 | 10,803 |
| Citizens Financial Group, Inc. | 124 | 4,489 |
| Comerica, Inc. | 44 | 3,458 |
| Fifth Third Bancorp | 210 | 6,052 |
| First Republic Bank | 45 | 4,753 |
| Huntington Bancshares, Inc. | 272 | 3,786 |
| KeyCorp | 274 | 4,809 |
| M&T Bank Corp. | 36 | 6,122 |
| PNC Financial Services Group, Inc. (The) | 124 | 16,979 |
| Regions Financial Corp. | 277 | 4,302 |
| SunTrust Banks, Inc. | 118 | 7,727 |
| SVB Financial Group(b) | 14 | 3,524 |
| | | | 76,804 |
| Research & Consulting Services–0.19% |
| Equifax, Inc. | 33 | 4,157 |
| Nielsen Holdings PLC | 95 | 2,425 |
| | Shares | Value |
| Research & Consulting Services–(continued) |
| Verisk Analytics, Inc., Class A | 44 | $6,210 |
| | | | 12,792 |
| Residential REITs–0.30% |
| AvalonBay Communities, Inc. | 38 | 7,636 |
| Equity Residential | 98 | 7,489 |
| Essex Property Trust, Inc. | 18 | 5,085 |
| | | | 20,210 |
| Restaurants–1.32% |
| Chipotle Mexican Grill, Inc.(b) | 8 | 5,504 |
| McDonald’s Corp. | 214 | 42,280 |
| Starbucks Corp. | 346 | 26,877 |
| Yum China Holdings, Inc. (China) | 93 | 4,421 |
| Yum! Brands, Inc. | 83 | 8,665 |
| | | | 87,747 |
| Retail REITs–0.31% |
| Realty Income Corp. | 86 | 6,021 |
| Simon Property Group, Inc. | 85 | 14,764 |
| | | | 20,785 |
| Semiconductor Equipment–0.38% |
| Applied Materials, Inc. | 253 | 11,150 |
| KLA-Tencor Corp. | 44 | 5,609 |
| Lam Research Corp. | 42 | 8,712 |
| | | | 25,471 |
| Semiconductors–3.51% |
| Analog Devices, Inc. | 100 | 11,624 |
| Broadcom, Inc. | 106 | 33,750 |
| Intel Corp. | 1,237 | 63,136 |
| Maxim Integrated Products, Inc. | 74 | 4,440 |
| Microchip Technology, Inc. | 62 | 6,193 |
| Micron Technology, Inc.(b) | 309 | 12,997 |
| NVIDIA Corp. | 153 | 27,693 |
| QUALCOMM, Inc. | 343 | 29,543 |
| Skyworks Solutions, Inc. | 47 | 4,144 |
| Texas Instruments, Inc. | 267 | 31,461 |
| Xilinx, Inc. | 70 | 8,410 |
| | | | 233,391 |
| Soft Drinks–1.76% |
| Coca-Cola Co. (The) | 1,202 | 58,970 |
| Keurig Dr Pepper, Inc. | 49 | 1,424 |
| Monster Beverage Corp.(b) | 108 | 6,437 |
| PepsiCo, Inc. | 394 | 50,452 |
| | | | 117,283 |
| Specialized REITs–1.14% |
| American Tower Corp. | 122 | 23,827 |
| Crown Castle International Corp. | 115 | 14,465 |
| Digital Realty Trust, Inc. | 55 | 6,474 |
| Equinix, Inc. | 23 | 10,458 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco U.S. Managed Volatility Fund |
| | Shares | Value |
| Specialized REITs–(continued) |
| Public Storage | 41 | $9,068 |
| SBA Communications Corp., Class A(b) | 30 | 6,112 |
| Weyerhaeuser Co. | 200 | 5,360 |
| | | | 75,764 |
| Specialty Chemicals–0.93% |
| Celanese Corp. Series A | 36 | 3,884 |
| DowDuPont, Inc. | 628 | 24,147 |
| Ecolab, Inc. | 79 | 14,542 |
| PPG Industries, Inc. | 64 | 7,520 |
| Sherwin-Williams Co. (The) | 26 | 11,826 |
| | | | 61,919 |
| Specialty Stores–0.08% |
| Ulta Beauty, Inc.(b) | 16 | 5,584 |
| Steel–0.07% |
| Nucor Corp. | 84 | 4,794 |
| Systems Software–5.26% |
| Microsoft Corp. | 2,098 | 273,999 |
| Oracle Corp. | 697 | 38,565 |
| Palo Alto Networks, Inc.(b) | 25 | 6,221 |
| Red Hat, Inc.(b) | 49 | 8,944 |
| ServiceNow, Inc.(b) | 49 | 13,304 |
| Symantec Corp. | 175 | 4,237 |
| VMware, Inc., Class A | 21 | 4,286 |
| | | | 349,556 |
| Technology Hardware, Storage & Peripherals–4.44% |
| Apple, Inc. | 1,315 | 263,881 |
| Dell Technologies, Inc. Class C(b) | 65 | 4,382 |
| Hewlett Packard Enterprise Co. | 367 | 5,802 |
| HP, Inc. | 425 | 8,479 |
| NetApp, Inc. | 68 | 4,954 |
| | Shares | Value |
| Technology Hardware, Storage & Peripherals–(continued) |
| Seagate Technology PLC | 76 | $3,672 |
| Western Digital Corp. | 75 | 3,834 |
| | | | 295,004 |
| Tobacco–1.01% |
| Altria Group, Inc. | 531 | 28,849 |
| Philip Morris International, Inc. | 442 | 38,260 |
| | | | 67,109 |
| Trading Companies & Distributors–0.13% |
| Fastenal Co. | 77 | 5,432 |
| W.W. Grainger, Inc. | 12 | 3,384 |
| | | | 8,816 |
| Water Utilities–0.08% |
| American Water Works Co., Inc. | 48 | 5,193 |
| Wireless Telecommunication Services–0.09% |
| T-Mobile US, Inc.(b) | 83 | 6,058 |
| Total Common Stocks & Other Equity Interests (Cost $5,992,581) | 6,570,488 |
|
| Money Market Funds–0.95% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(c) | 22,218 | 22,218 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(c) | 15,868 | 15,873 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(c) | 25,393 | 25,393 |
| Total Money Market Funds (Cost $63,484) | 63,484 |
| TOTAL INVESTMENTS IN SECURITIES–99.80% (Cost $6,056,065) | 6,633,972 |
| OTHER ASSETS LESS LIABILITIES–0.20% | 13,157 |
| NET ASSETS–100.00% | $6,647,129 |
Investment Abbreviations:
| REIT | – Real Estate Investment Trust |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Non-income producing security. |
| (c) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco U.S. Managed Volatility Fund |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Information Technology | 22.34% |
| Health Care | 13.69 |
| Financials | 12.51 |
| Communication Services | 10.75 |
| Consumer Discretionary | 10.07 |
| Industrials | 8.86 |
| Consumer Staples | 7.61 |
| Energy | 5.25 |
| Utilities | 2.91 |
| Real Estate | 2.48 |
| Materials | 2.38 |
| Money Market Funds Plus Other Assets Less Liabilities | 1.15 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 12 | Invesco U.S. Managed Volatility Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $5,992,581) | $6,570,488 |
| Investments in affiliated money market funds, at value (Cost $63,484) | 63,484 |
| Receivable for: | |
| Fund shares sold | 7,054 |
| Fund expenses absorbed | 33,033 |
| Dividends | 5,795 |
| Investment for trustee deferred compensation and retirement plans | 3,919 |
| Other assets | 9,367 |
| Total assets | 6,693,140 |
| Liabilities: | |
| Payable for: | |
| Accrued trustees’ and officers’ fees and benefits | 1,142 |
| Accrued other operating expenses | 40,950 |
| Trustee deferred compensation and retirement plans | 3,919 |
| Total liabilities | 46,011 |
| Net assets applicable to shares outstanding | $6,647,129 |
| Net assets consist of: | |
| Shares of beneficial interest | $6,252,876 |
| Distributable earnings | 394,253 |
| | $6,647,129 |
| Net Assets: |
| Class R6 | $6,647,129 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class R6 | 624,641 |
| Class R6: | |
| Net asset value and offering price per share | $10.64 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 13 | Invesco U.S. Managed Volatility Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Dividends | $62,649 |
| Dividends from affiliated money market funds | 548 |
| Total investment income | 63,197 |
| Expenses: | |
| Advisory fees | 2,971 |
| Administrative services fees | 8,640 |
| Custodian fees | 6,479 |
| Trustees’ and officers’ fees and benefits | 10,794 |
| Registration and filing fees | 12,307 |
| Reports to shareholders | 9,047 |
| Professional services fees | 15,923 |
| Other | 6,155 |
| Total expenses | 72,316 |
| Less: Fees waived and expenses reimbursed | (67,860) |
| Net expenses | 4,456 |
| Net investment income | 58,741 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (23,626) |
| Futures contracts | (143,139) |
| | (166,765) |
| Change in net unrealized appreciation of: | |
| Investment securities | 537,230 |
| Futures contracts | 30,465 |
| | 567,695 |
| Net realized and unrealized gain | 400,930 |
| Net increase in net assets resulting from operations | $459,671 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 | Invesco U.S. Managed Volatility Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and for the period December 18, 2017 (commencement date) through October 31,2018
(Unaudited)
| | April 30,
2019 | December 18, 2017
(commencement date)
through
October 31, 2018 |
| Operations: | | |
| Net investment income | $58,741 | $89,033 |
| Net realized gain (loss) | (166,765) | (26,511) |
| Change in net unrealized appreciation | 567,695 | 10,212 |
| Net increase in net assets resulting from operations | 459,671 | 72,734 |
| Distributions to shareholders from distributable earnings: | | |
| Class R6 | (138,152) | — |
| Total distributions to shareholders from distributable earnings | (138,152) | — |
| Share transactions–net: | | |
| Class R6 | 415,902 | 5,836,974 |
| Net increase in net assets resulting from share transactions | 415,902 | 5,836,974 |
| Net increase in net assets | 737,421 | 5,909,708 |
| Net assets: | | |
| Beginning of period | 5,909,708 | — |
| End of period | $6,647,129 | $5,909,708 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 15 | Invesco U.S. Managed Volatility Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 R6 |
| Six months ended 04/30/19 | $10.14 | $0.10 | $0.64 | $0.74 | $(0.19) | $(0.05) | $(0.24) | $10.64 | 7.50% | $6,647 | 0.15%(d) | 2.43%(d) | 1.98%(d) | 4% |
| Year ended 10/31/18(e) | 10.00 | 0.16 | (0.02) | 0.14 | — | — | — | 10.14 | 1.40 | 5,910 | 0.15(f) | 3.40(f) | 1.74(f) | 9 |
| (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. Not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $5,992 for Class R6 shares. |
| (e) | Commencement date of December 18, 2017. |
| (f) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 16 | Invesco U.S. Managed Volatility Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco U.S. Managed Volatility 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 to provide capital appreciation while managing portfolio volatility.
The Fund currently consists of one class of shares, Class R6. Class R6 shares are sold at net asset value.
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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 17 | Invesco U.S. Managed Volatility Fund |
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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. | 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. |
| G. | 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. |
| H. | 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
| 18 | Invesco U.S. Managed Volatility Fund |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser at the annual rate of 0.10% of the Fund’s average daily net assets.
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 29, 2020, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class R6 shares to 0.15% of the Fund’s average daily net assets (the “expense limit”). 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 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
The Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees of $2,971 and reimbursed Fund expenses of $64,889.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer agent fees.
The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. ("IDI") to serve as the distributor for the Fund’s shares. The Fund does not pay a distribution fee to IDI under the agreement.
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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 — Prices are determined using quoted prices in an active market for identical assets.
Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
As of April 30, 2019, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). 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.
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
| 19 | Invesco U.S. Managed Volatility Fund |
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.
Effect of Derivative Investments for the six months ended April 30, 2019
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 |
| | Equity
Risk |
| Realized Gain (Loss): | |
| Futures contracts | $(143,139) |
| Change in Net Unrealized Appreciation: | |
| Futures contracts | 30,465 |
| Total | $(112,674) |
The table below summarizes the two month average notional value of derivatives held during the period.
| | Futures
Contracts |
| Average notional value | $2,123,738 |
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 captionAmount 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—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund did not have a capital loss carryforward as of October 31, 2018.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $444,200 and $259,677, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $799,905 |
| Aggregate unrealized (depreciation) of investments | (273,259) |
| Net unrealized appreciation of investments | $526,646 |
Cost of investments for tax purposes is $6,107,326.
| 20 | Invesco U.S. Managed Volatility Fund |
NOTE 9—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | December 18, 2017
(commencement date) through
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class R6 | 45,678 | $451,611 | | 594,574 | $5,962,973 |
| Issued as reinvestment of dividends: | | | | | |
| Class R6 | 2,204 | 21,052 | | — | — |
| Reacquired: | | | | | |
| Class R6 | (5,797) | (56,761) | | (12,018) | (125,999) |
| Net increase in share activity | 42,085 | $415,902 | | 582,556 | $5,836,974 |
| (a) | 80% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| 21 | Invesco U.S. Managed Volatility Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class R6 | $1,000.00 | $1,075.00 | $0.77 | $1,024.05 | $0.75 | 0.15% |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 22 | Invesco U.S. Managed Volatility Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-06463 and 033-44611 | Invesco Distributors, Inc. | USMGV-SAR-1 |
| Semiannual Report to Shareholders | April 30, 2019 |
Invesco World Bond Fund
Nasdaq:
A: AUBAX ■ C: AUBCX ■ Y: AUBYX ■ R5: AUBIX ■ R6: AUBFX
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at invesco.com/edelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 959-4246 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
Fund vs. Indexes
Cumulative total returns, October 31, 2018 to April 30, 2019, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.
| Class A Shares | 5.06% |
| Class C Shares | 4.67 |
| Class Y Shares | 5.20 |
| Class R5 Shares | 4.99 |
| Class R6 Shares | 5.19 |
| Bloomberg Barclays Global Aggregate Index▼ (Broad Market/Style-Specific Index) | 4.28 |
Lipper Global Income Funds Index■
(Peer Group Index) | 4.26 |
| Source(s):▼FactSet Research Systems Inc.;■ Lipper Inc. |
TheBloomberg Barclays Global Aggregate Index is an unmanaged index considered representative of global investment grade, fixed income markets.
TheLipper Global Income Funds Index is an unmanaged index considered representative of global income funds tracked by Lipper.
The Fund is not managed to track the performance of any particular index, including the indexes described here, and consequently, the performance of the Fund may deviate significantly from the performance of the indexes.
A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.
For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visitinginvesco.com/us. Click on “Products” and select “Mutual Funds.” Use the “Product Finder” to locate your Fund; then click on its name to access its product detail page. There, you can learn more about your Fund’s investment strategies, holdings and performance.
Also, visitblog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
| Average Annual Total Returns |
| As of 4/30/19, including maximum applicable sales charges |
| Class A Shares | |
| Inception (3/31/06) | 2.79% |
| 10 Years | 2.46 |
| 5 Years | –0.83 |
| 1 Year | –4.56 |
| Class C Shares | |
| Inception (3/31/06) | 2.53% |
| 10 Years | 2.12 |
| 5 Years | –0.71 |
| 1 Year | –2.03 |
| Class Y Shares | |
| Inception (10/3/08) | 2.77% |
| 10 Years | 3.15 |
| 5 Years | 0.29 |
| 1 Year | –0.06 |
| Class R5 Shares | |
| Inception (3/31/06) | 3.35% |
| 10 Years | 3.12 |
| 5 Years | 0.21 |
| 1 Year | –0.26 |
| Class R6 Shares | |
| 10 Years | 3.07% |
| 5 Years | 0.29 |
| 1 Year | –0.06 |
Class R6 shares incepted on September 24, 2012. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.
The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class C, Class Y, Class R5 and Class R6 shares was 0.94%, 1.69%, 0.69%, 0.69% and 0.69%, respectively.1,2 The total annual Fund operating expense ratio set forth in the most recent Fund prospec-
| Average Annual Total Returns |
| As of 3/31/19, the most recent calendar quarter end, including maximum applicable sales charges |
| Class A Shares | |
| Inception (3/31/06) | 2.84% |
| 10 Years | 2.54 |
| 5 Years | –0.47 |
| 1 Year | –6.08 |
| Class C Shares | |
| Inception (3/31/06) | 2.58% |
| 10 Years | 2.20 |
| 5 Years | –0.35 |
| 1 Year | –3.69 |
| Class Y Shares | |
| Inception (10/3/08) | 2.84% |
| 10 Years | 3.23 |
| 5 Years | 0.65 |
| 1 Year | –1.66 |
| Class R5 Shares | |
| Inception (3/31/06) | 3.42% |
| 10 Years | 3.21 |
| 5 Years | 0.59 |
| 1 Year | –1.86 |
| Class R6 Shares | |
| 10 Years | 3.15% |
| 5 Years | 0.65 |
| 1 Year | –1.66 |
tus as of the date of this report for Class A, Class C, Class Y, Class R5 and Class R6 shares was 2.06%, 2.81%, 1.81%, 1.59% and 1.59%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.
Class A share performance reflects the maximum 4.25% sales charge, and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class C shares is 1% for the first year after purchase. Class Y, Class R5 and Class R6 shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.
The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.
Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns
would have been lower. See current prospectus for more information.
| 1 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least February 29, 2020. See current prospectus for more information. |
| 2 | Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2021. See current prospectus for more information. |
Dear Fellow Shareholders:
As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invesco’s mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management team’s investment performance within the context of the investment strategy described in the fund’s prospectus; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive.
We believe one of the most important services we provide our fund shareholders is the annual review of the funds’ advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This review is required by the Investment Company Act of 1940 and focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing information received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Dear Shareholders:
This semiannual report includes information about your Fund, including performance data and a complete list of its investments as of the close of the reporting period.
Philip Taylor, whose messages to shareholders have appeared here for the last 13 years, transitioned to a senior advisory role on March 1, prior to his retirement at the end of the year, and I assumed his role as Head of the Americas and Senior Managing Director, Invesco Ltd. All of us at Invesco are indebted to Phil for his many years of dedicated service to the company and to its funds’ shareholders. I’m excited about this new opportunity, and I look forward to communicating with fund shareholders going forward.
Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, you’ll find detailed information about our funds, including performance, holdings and portfolio manager commentaries. You can access information about your account by completing a simple, secure online registration. To do so, select “Log In” on the right side of the homepage, and then select “Register for Individual Account Access.” For questions about your account, contact an Invesco client services representative at 800 959 4246.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Andrew Schlossberg
Head of the Americas,
Senior Managing Director, Invesco Ltd.
Schedule of Investments
April 30, 2019
(Unaudited)
| | Principal
Amount | Value |
| Non-U.S. Dollar Denominated Bonds & Notes–45.40%(a) |
| Australia–1.21% |
| Australia Government Bond Series 136, REGS, 4.75%, 04/21/2027(b) | AUD | 360,000 | $312,077 |
| Belgium–0.51% |
| Solvay Finance S.A. REGS, 5.87% (b)(c) | EUR | 100,000 | 131,093 |
| Canada–2.08% |
| Canadian Government Bond, 2.00%, 06/01/2028 | CAD | 700,000 | 535,703 |
| China–0.45% |
| Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC, 5.38%, 05/01/2023(b) | EUR | 100,000 | 114,133 |
| Egypt–0.52% |
| Egypt Government International Bond, 6.38%, 04/11/2031(b) | EUR | 120,000 | 132,903 |
| France–8.87% |
| Electricite de France S.A. REGS, 4.13%, (b)(c) | EUR | 100,000 | 119,196 |
| French Republic Government Bond OAT REGS, 1.85%, 07/25/2027(b) | EUR | 1,165,438 | 1,641,873 |
| Orange S.A. REGS, 5.88% (b)(c) | GBP | 200,000 | 283,567 |
| TOTAL S.A. REGS, 2.63%, (b)(c) | EUR | 200,000 | 235,482 |
| | | | 2,280,118 |
| Germany–0.51% |
| Evonik Industries AG, REGS , 2.13% (EUAMDB05 + 1.95%), 07/07/2077(b)(d) | EUR | 115,000 | 131,903 |
| India–1.66% |
| Province of British Columbia, 6.60%, 01/09/2020(b) | INR | 30,000,000 | 427,392 |
| Indonesia–5.26% |
| Indonesia Treasury Bond, | | |
| Series FR54, 9.50%, 07/15/2031 | IDR | 6,200,000,000 | 485,769 |
| Series FR72, 8.25%, 05/15/2036 | IDR | 6,149,000,000 | 432,095 |
| Series FR75, 7.50%, 05/15/2038 | IDR | 6,726,000,000 | 432,931 |
| | | | 1,350,795 |
| Italy–0.49% |
| Italy Buoni Poliennali del Tesoro, REGS, 3.45%, 03/01/2048(b) | EUR | 110,000 | 125,230 |
| | Principal
Amount | Value |
| Japan–4.04% |
| Japan Government Forty Year Bond Series 9, 0.40%, 03/20/2056 | JPY | 78,650,000 | $658,754 |
| Japan Government Twenty Year Bond Series 147, 1.60%, 12/20/2033 | JPY | 35,000,000 | 379,771 |
| | | | 1,038,525 |
| Netherlands–1.95% |
| Cooperatieve Rabobank U.A. REGS, 5.50%, (b)(c) | EUR | 200,000 | 235,181 |
| Rabobank Capital Funding Trust IV REGS, 5.56%, (b)(c) | GBP | 200,000 | 267,058 |
| | | | 502,239 |
| Russia–3.17% |
| Russian Federal Bond - OFZ, | | |
| Series 6218, 8.50%, 09/17/2031 | RUB | 17,000,000 | 271,134 |
| Series 6221, 7.70%, 03/23/2033 | RUB | 36,576,000 | 544,695 |
| | | | 815,829 |
| Switzerland–1.43% |
| Credit Suisse AG REGS, 5.75% (5yr. EUR Swap Rate + 4.00%), 09/18/2025(b)(d) | EUR | 100,000 | 120,151 |
| UBS Group Funding (Switzerland) AG REGS, 5.75%, (b)(c) | EUR | 200,000 | 247,976 |
| | | | 368,127 |
| United Kingdom–9.54% |
| Direct Line Insurance Group PLC, REGS, 9.25% (6 mo. GBP LIBOR + 7.91%), 04/27/2042(b)(d) | GBP | 100,000 | 155,004 |
| Iceland Bondco PLC, REGS, 4.63%, 03/15/2025(b) | GBP | 100,000 | 120,467 |
| Nationwide Building Society REGS, 6.88%, (b)(c) | GBP | 200,000 | 262,999 |
| NGG Finance PLC REGS, 5.63% (12 yr. GBP Swap Rate + 3.48%), 06/18/2073(b)(d) | GBP | 250,000 | 353,909 |
| United Kingdom Gilt, REGS, 3.50%, 07/22/2068(b) | GBP | 150,000 | 323,674 |
| United Kingdom Gilt Inflation-Linked, REGS, 1.63%, 10/22/2028(b) | GBP | 160,000 | 216,894 |
| United Kingdom Treasury Gilt, REGS, 1.75%, 07/22/2019(b) | GBP | 780,000 | 1,019,368 |
| | | | 2,452,315 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| United States–3.71% |
| Altria Group, Inc., 1.70%, 06/15/2025 | EUR | 150,000 | $171,925 |
| Ford Motor Credit Co. LLC 3.02%, 03/06/2024 | EUR | 100,000 | 117,824 |
| Medtronic Global Holdings S.C.A., 1.13%, 03/07/2027 | EUR | 150,000 | 173,418 |
| MPT Operating Partnership L.P./MPT Finance Corp. 3.33%, 03/24/2025 | EUR | 100,000 | 118,796 |
| UGI International LLC, 3.25%, 11/01/2025(b) | EUR | 100,000 | 117,392 |
| Verizon Communications, Inc. 2.88%, 01/15/2038 | EUR | 200,000 | 254,137 |
| | | | 953,492 |
| Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $11,708,657) | 11,671,874 |
| U.S. Dollar Denominated Bonds & Notes–31.99% |
| Brazil–4.36% |
| Banco do Brasil S.A., MTN, 4.75% 03/20/2024(b) | | $200,000 | 204,440 |
| Petrobras Global Finance B.V., 5.75% 02/01/2029 | | 424,000 | 426,120 |
| Suzano Austria GmbH, 6.00% 01/15/2029(b) | | 200,000 | 214,500 |
| Vale Overseas Ltd., 6.25% 08/10/2026 | | 251,000 | 275,347 |
| | | | 1,120,407 |
| Canada–0.59% |
| Enbridge, Inc., Series 16A, 6.00% (3 mo. USD LIBOR + 3.89%), 01/15/2077(d) | | 150,000 | 150,437 |
| Colombia–0.77% |
| Avianca Holdings S.A./Avianca Leasing LLC/Grupo Taca Holdings Ltd., REGS, 8.38% 05/10/2020(b) | | 200,000 | 198,550 |
| Finland–2.20% |
| Nordea Bank Abp, | | |
| 3.75%, 08/30/2023(b) | | 307,000 | 310,896 |
| 6.63% (b)(c) | | 250,000 | 255,844 |
| | | | 566,740 |
| France–0.99% |
| BPCE S.A., 4.00% 09/12/2023(b) | | 250,000 | 255,827 |
| Germany–1.00% |
| Landwirtschaftliche Rentenbank, 3.13% 11/14/2023 | | 250,000 | 258,231 |
| Japan–0.79% |
| Japan Finance Organization for Municipalities, 3.00% 03/12/2024(b) | | 200,000 | 202,545 |
| | Principal
Amount | Value |
| Luxembourg–0.35% |
| Intelsat Jackson Holdings S.A., 5.50% 08/01/2023 | | $100,000 | $90,625 |
| Mexico–0.71% |
| Unifin Financiera, S.A.B. de C.V. SOFOM, E.N.R., 8.88% (b)(c) | | 200,000 | 181,500 |
| Oman–0.78% |
| Oztel Holdings SPC Ltd., 6.63% 04/24/2028(b) | | 206,000 | 201,653 |
| Russia–1.57% |
| ALROSA Finance S.A., 4.65% 04/09/2024(b) | | 200,000 | 202,028 |
| Evraz PLC, 5.25% 04/02/2024(b) | | 200,000 | 202,856 |
| | | | 404,884 |
| South Africa–0.81% |
| Eskom Holdings SOC Ltd., 6.35% 08/10/2028(b) | | 200,000 | 208,232 |
| Switzerland–0.82% |
| Credit Suisse Group AG, 7.50% (b)(c) | | 200,000 | 209,878 |
| Ukraine–0.80% |
| Ukraine Government International Bond, REGS, 9.75% 11/01/2028(b) | | 200,000 | 204,818 |
| United Kingdom–2.83% |
| Bank of England Euro Note, 2.50% 02/22/2022(b) | | 110,000 | 110,571 |
| HSBC Holdings PLC, 6.25% (c) | | 200,000 | 204,628 |
| Lloyds Banking Group PLC, 4.55% 08/16/2028 | | 200,000 | 209,762 |
| Nationwide Building Society, 3.62% (3 mo. USD LIBOR + 1.18%), 04/26/2023(b)(d) | | 200,000 | 201,364 |
| | | | 726,325 |
| United States–11.49% |
| AbbVie, Inc., 4.25% 11/14/2028 | | 88,000 | 90,213 |
| American Express Co., 3.70% 11/05/2021 | | 288,000 | 294,223 |
| AT&T, Inc., 4.35% 03/01/2029 | | 315,000 | 325,958 |
| Bank of America Corp., 3.56% (3 mo. USD LIBOR + 1.06%), 04/23/2027(d) | | 255,000 | 256,991 |
| BP Capital Markets America, Inc., 4.23% 11/06/2028 | | 116,000 | 124,154 |
| Cigna Corp., 4.38% 10/15/2028(b) | | 161,000 | 166,230 |
| Citigroup, Inc., 3.35% (3 mo. USD LIBOR + 0.90%), 04/24/2025(d) | | 290,000 | 291,710 |
| CVS Health Corp., 4.78% 03/25/2038 | | 214,000 | 208,750 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Principal
Amount | Value |
| United States–(continued) |
| Energy Transfer Partners, L.P., Series B , 6.63% (c) | | $131,000 | $124,675 |
| Enterprise Products Operating LLC, Series D, 4.88% (3 mo. USD LIBOR + 2.99%), 08/16/2077(d) | | 75,000 | 71,778 |
| L Brands, Inc., 5.63% 02/15/2022 | | 100,000 | 104,125 |
| Mars, Inc., 3.20% 04/01/2030(b) | | 89,000 | 87,943 |
| Morgan Stanley, 3.77% (3 mo. USD LIBOR + 1.18%), 01/20/2022(d) | | 150,000 | 151,669 |
| Plains All American Pipeline, L.P., Series B, 6.13% (c) | | 355,000 | 340,521 |
| Plastipak Holdings, Inc., 6.25% 10/15/2025(b) | | 120,000 | 112,800 |
| Southern Co. (The), Series B, 5.50% (3 mo. USD LIBOR + 3.63%), 03/15/2057(d) | | 197,000 | 201,030 |
| | | | 2,952,770 |
| Zambia–1.13% |
| First Quantum Minerals Ltd., 7.50% 04/01/2025(b) | | 300,000 | 291,000 |
| Total U.S. Dollar Denominated Bonds & Notes (Cost $8,118,404) | 8,224,422 |
| U.S. Treasury Securities–11.95% |
| U.S. Treasury Notes–11.95% |
| 2.25%, 02/15/2027 | 1,648,392 | 1,697,660 |
| 2.88%, 05/15/2028 | 1,339,451 | 1,374,995 |
| Total U.S. Treasury Securities (Cost $2,987,843) | 3,072,655 |
|
| Asset-Backed Securities–2.62% |
| Deephaven Residential Mortgage Trust, Series 2018-2A, Class A1, 3.48%, 04/25/2058(b)(e) | | 234,385 | 236,412 |
| Galton Funding Mortgage Trust, Series 2018-2, Series A41, 4.50%, 10/25/2058(b)(e) | | 209,568 | 213,304 |
| Verus Securitization Trust, Series 2018-3, Class A1, 4.11%, 10/25/2058(b)(e) | | 219,994 | 224,633 |
| Total Asset-Backed Securities (Cost $664,763) | 674,349 |
| | Principal
Amount | Value |
| Collateralized Mortgage Obligations–2.62% |
| United States–2.62% |
| Bunker Hill Loan Depositary Trust, Series 2019-1, Class A1, 3.61%, 10/26/2048(b)(e)(f) | | $98,882 | $100,610 |
| COLT Mortgage Loan Trust, Series 2019-1, Class A1, 3.71%, 03/25/2049(b)(e) | | 95,688 | 96,527 |
| Residential Mortgage Loan Trust, Series 2019-1, Class M1, 3.94%, 10/25/2058(b)(e) | | 229,392 | 231,043 |
| Verus Securitization Trust, Series 2019-1, Class A1, 3.84%, 02/25/2059(b)(e) | | 241,304 | 243,899 |
| Total Collateralized Mortgage Obligations (Cost $665,259) | 672,079 |
| | | |
| U.S. Government Sponsored Agency Mortgage-Backed Securities–0.29% |
Freddie Mac Multifamily Securitization, Series K038, Class X1, IO, 1.31% Multifamily Structured Pass Through Certificates, IO, 03/25/2024(e)
(Cost $76,562) | 1,604,499 | 75,511 |
| | Shares | |
| Money Market Funds–0.22% |
| Invesco Government & Agency Portfolio, Institutional Class, 2.34%(g) | 18,762 | 18,762 |
| Invesco Liquid Assets Portfolio, Institutional Class, 2.48%(g) | 14,736 | 14,740 |
| Invesco Treasury Portfolio, Institutional Class, 2.32%(g) | 21,442 | 21,442 |
| Total Money Market Funds (Cost $54,944) | 54,944 |
| TOTAL INVESTMENTS IN SECURITIES—95.09% (Cost $24,276,432) | 24,445,834 |
| OTHER ASSETS LESS LIABILITIES–4.91% | 1,262,963 |
| NET ASSETS–100.00% | $25,708,797 |
Investment Abbreviations:
| AUD | – Australian Dollar |
| CAD | – Canadian Dollar |
| EUR | – Euro |
| GBP | – British Pound Sterling |
| IDR | – Indonesian Rupiah |
| INR | – Indian Rupee |
| IO | – Interest Only |
| JPY | – Japanese Yen |
| LIBOR | – London Interbank Offered Rate |
| REGS | – Regulation S |
| RUB | – Russian Ruble |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Notes to Schedule of Investments:
| (a) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
| (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 April 30, 2019 was $12,464,825, which represented 48.48% of the Fund’s Net Assets. |
| (c) | Perpetual bond with no specified maturity date. |
| (d) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2019. |
| (e) | 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 April 30, 2019. |
| (f) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
| (g) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of April 30, 2019. |
| Open Futures Contracts |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Interest Rate Risk |
| Euro BTP Italian Government Bonds | 3 | June-2019 | $438,972 | $13,824 | $13,824 |
| Japan 10 year Bonds | 2 | June-2019 | 2,742,134 | 2,855 | 2,855 |
| U.S. Treasury Ultra Bonds | 14 | June-2019 | 1,844,937 | 27,201 | 27,201 |
| Subtotal—Long Futures Contracts | 43,880 | 43,880 |
| Short Futures Contracts | | | | | |
| Interest Rate Risk |
| Euro-Bund | 15 | June-2019 | (2,781,177) | 1,029 | 1,029 |
| Euro-OAT | 8 | June-2019 | (1,453,594) | (6,778) | (6,778) |
| Subtotal—Short Futures Contracts | (5,749) | (5,749) |
| Total Futures Contracts | $38,131 | $38,131 |
| Open Forward Foreign Currency Contracts |
Settlement
Date | Counterparty | Contract to | Unrealized
Appreciation
(Depreciation) |
| Deliver | Receive |
| Currency Risk | | | | | | |
| 06/20/2019 | Goldman Sachs International | EUR | 678,082 | USD | 772,628 | $8,917 |
| 06/20/2019 | Goldman Sachs International | GBP | 3,546,616 | USD | 4,679,586 | 42,748 |
| 06/20/2019 | Goldman Sachs International | SEK | 2,575,686 | EUR | 2,300,673 | 15,517 |
| 06/20/2019 | Goldman Sachs International | EUR | 2,482,605 | JPY | 275,705,000 | 2,366 |
| 06/20/2019 | Goldman Sachs International | HUF | 3,088,619 | EUR | 2,780,000 | 42,440 |
| 06/20/2019 | Goldman Sachs International | NZD | 1,021,677 | AUD | 1,465,000 | 12,285 |
| 06/20/2019 | Goldman Sachs International | USD | 784,697 | ZAR | 11,295,000 | 413 |
| 06/20/2019 | Goldman Sachs International | JPY | 1,007,922 | EUR | 896,000 | 1,225 |
| 06/20/2019 | Goldman Sachs International | NZD | 575,942 | JPY | 64,630,000 | 6,578 |
| 06/20/2019 | Goldman Sachs International | ZAR | 10,857,864 | USD | 770,000 | 15,276 |
| 06/20/2019 | Goldman Sachs International | HUF | 292,815,574 | USD | 1,029,716 | 12,296 |
| 06/20/2019 | Goldman Sachs International | USD | 389,179 | GBP | 300,000 | 3,040 |
| 06/20/2019 | Goldman Sachs International | USD | 100,000 | EUR | 89,272 | 545 |
| Subtotal—Appreciation | 163,646 |
| Currency Risk | | | | | | |
| 06/20/2019 | Goldman Sachs International | INR | 15,150,000 | USD | 214,842 | (1,657) |
| 06/20/2019 | Goldman Sachs International | IDR | 19,135,445,000 | USD | 1,327,812 | (6,779) |
| 06/20/2019 | Goldman Sachs International | USD | 346,702 | KRW | 391,000,000 | (11,398) |
| 06/20/2019 | Goldman Sachs International | USD | 103,626 | SEK | 957,819 | (2,380) |
| 06/20/2019 | Goldman Sachs International | EUR | 2,588,295 | SEK | 24,069,162 | (44,070) |
| 06/20/2019 | Goldman Sachs International | USD | 112,675 | CAD | 149,716 | (779) |
| 06/20/2019 | Goldman Sachs International | USD | 1,059,950 | HUF | 292,812,924 | (42,539) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| Open Forward Foreign Currency Contracts—(continued) |
Settlement
Date | Counterparty | Contract to | Unrealized
Appreciation
(Depreciation) |
| Deliver | Receive |
| 06/20/2019 | Goldman Sachs International | USD | 5,168,721 | GBP | 3,911,557 | $(54,760) |
| 06/20/2019 | Goldman Sachs International | RUB | 53,545,000 | USD | 815,894 | (6,493) |
| 06/20/2019 | Goldman Sachs International | USD | 3,280,340 | JPY | 362,500,540 | (13,069) |
| 06/20/2019 | Goldman Sachs International | USD | 23,221 | NOK | 198,532 | (165) |
| 06/21/2019 | Goldman Sachs International | USD | 56,001 | PLN | 212,276 | (376) |
| 06/20/2019 | Goldman Sachs International | AUD | 1,036,040 | JPY | 114,130,000 | (7,370) |
| 06/20/2019 | Goldman Sachs International | GBP | 797,106 | USD | 1,040,000 | (2,134) |
| 06/21/2019 | Goldman Sachs International | USD | 774,476 | BRL | 3,010,000 | (9,818) |
| 06/20/2019 | Goldman Sachs International | JPY | 1,635,747 | NZD | 2,415,000 | (21,329) |
| 06/20/2019 | Goldman Sachs International | EUR | 3,118,975 | HUF | 887,972,206 | (33,617) |
| 06/20/2019 | Goldman Sachs International | USD | 1,037,125 | EUR | 915,000 | (6,579) |
| 06/20/2019 | Goldman Sachs International | JPY | 1,565,633 | EUR | 1,370,000 | (22,629) |
| 06/21/2019 | Goldman Sachs International | BRL | 3,010,000 | USD | 762,663 | (1,996) |
| 06/20/2019 | Goldman Sachs International | EUR | 366,821 | USD | 410,000 | (3,144) |
| 06/20/2019 | Goldman Sachs International | GBP | 1,852,868 | EUR | 1,635,000 | (11,399) |
| Subtotal—Depreciation | (304,480) |
| Total Forward Foreign Currency Contracts | $(140,834) |
| Abbreviations: |
| AUD | —Australian Dollar |
| BRL | —Brazilian Real |
| CAD | —Canadian Dollar |
| EUR | —Euro |
| GBP | —British Pound Sterling |
| HUF | —Hungarian Forint |
| IDR | —Indonesian Rupiah |
| INR | —Indian Rupee |
| JPY | —Japanese Yen |
| KRW | —South Korean Won |
| NOK | —Norwegian Krone |
| NZD | —New Zealand Dollar |
| PLN | —Polish Zloty |
| RUB | —Russian Ruble |
| SEK | —Swedish Krona |
| USD | —U.S. Dollar |
| ZAR | —South African Rand |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2019
| Soverign Debt | 32.48% |
| Financials | 18.22 |
| U.S. Treasury Securities | 11.95 |
| Energy | 6.20 |
| Materials | 6.06 |
| Communication Services | 4.49 |
| Utilities | 3.43 |
| Collateralized Mortgage Obligations | 2.91 |
| Asset-Backed Securities | 2.62 |
| Health Care | 2.48 |
| Consumer Staples | 1.48 |
| Consumer Discretionary | 1.32 |
| Industrials | 0.77 |
| Real Estate | 0.46 |
| Money Market Funds Plus Other Assets Less Liabilities | 5.13 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco World Bond Fund |
Statement of Assets and Liabilities
April 30, 2019
(Unaudited)
| Assets: | |
Investments in securities, at value
(Cost $24,221,488) | $24,390,890 |
| Investments in affiliated money market funds, at value (Cost $54,944) | 54,944 |
| Other investments: | |
| Variation margin receivable — futures contracts | 138,552 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 163,646 |
| Deposits with brokers: | |
| Cash collateral — centrally cleared swap agreements | 125,392 |
| Cash | 4,328 |
| Foreign currencies, at value (Cost $925,845) | 920,276 |
| Receivable for: | |
| Fund shares sold | 5,758 |
| Fund expenses absorbed | 11,539 |
| Dividends | 796 |
| Interest | 277,418 |
| Investment for trustee deferred compensation and retirement plans | 41,989 |
| Other assets | 38,478 |
| Total assets | 26,174,006 |
| Liabilities: | |
| Other investments: | |
| Unrealized depreciation on forward foreign currency contracts outstanding | 304,480 |
| Payable for: | |
| Fund shares reacquired | 18,331 |
| Accrued fees to affiliates | 18,971 |
| Accrued trustees’ and officers’ fees and benefits | 1,533 |
| Accrued other operating expenses | 77,804 |
| Trustee deferred compensation and retirement plans | 44,090 |
| Total liabilities | 465,209 |
| Net assets applicable to shares outstanding | $25,708,797 |
| Net assets consist of: | |
| Shares of beneficial interest | $27,243,816 |
| Distributable earnings | (1,535,019) |
| | $25,708,797 |
| Net Assets: |
| Class A | $20,913,024 |
| Class C | $1,944,572 |
| Class Y | $2,733,913 |
| Class R5 | $808 |
| Class R6 | $116,480 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 2,090,015 |
| Class C | 194,701 |
| Class Y | 273,431 |
| Class R5 | 81 |
| Class R6 | 11,638 |
| Class A: | |
| Net asset value per share | $10.01 |
Maximum offering price per share
(Net asset value of $10.01 ÷ 95.75%) | $10.45 |
| Class C: | |
| Net asset value and offering price per share | $9.99 |
| Class Y: | |
| Net asset value and offering price per share | $10.00 |
| Class R5: | |
| Net asset value and offering price per share | $9.97 |
| Class R6: | |
| Net asset value and offering price per share | $10.01 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco World Bond Fund |
Statement of Operations
For the six months ended April 30, 2019
(Unaudited)
| Investment income: | |
| Interest (net of foreign withholding taxes of $1,398) | $504,756 |
| Dividends from affiliated money market funds | 7,944 |
| Total investment income | 512,700 |
| Expenses: | |
| Advisory fees | 81,268 |
| Administrative services fees | 9,558 |
| Custodian fees | 5,995 |
| Distribution fees: | |
| Class A | 24,594 |
| Class C | 13,122 |
| Transfer agent fees — A, C and Y | 38,084 |
| Transfer agent fees — R6 | 57 |
| Trustees’ and officers’ fees and benefits | 11,277 |
| Registration and filing fees | 34,795 |
| Reports to shareholders | 12,800 |
| Professional services fees | 34,995 |
| Other | 12,001 |
| Total expenses | 278,546 |
| Less: Fees waived, expenses reimbursed and expense offset arrangement(s) | (154,625) |
| Net expenses | 123,921 |
| Net investment income | 388,779 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Investment securities | (216,967) |
| Foreign currencies | 55,613 |
| Forward foreign currency contracts | (332,187) |
| Futures contracts | 110,151 |
| Option contracts written | 7,418 |
| Swap agreements | (73,502) |
| | (449,474) |
| Change in net unrealized appreciation (depreciation) of: | |
| Investment securities | 1,410,318 |
| Foreign currencies | 26,377 |
| Forward foreign currency contracts | (156,081) |
| Futures contracts | (15,232) |
| | 1,265,382 |
| Net realized and unrealized gain | 815,908 |
| Net increase in net assets resulting from operations | $1,204,687 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 12 | Invesco World Bond Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2019 and the year ended October 31, 2018
(Unaudited)
| | April 30,
2019 | October 31,
2018 |
| Operations: | | |
| Net investment income | $388,779 | $936,741 |
| Net realized gain (loss) | (449,474) | (469,909) |
| Change in net unrealized appreciation (depreciation) | 1,265,382 | (1,843,105) |
| Net increase (decrease) in net assets resulting from operations | 1,204,687 | (1,376,273) |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (268,513) | (438,683) |
| Class B | — | (938) |
| Class C | (26,609) | (54,593) |
| Class Y | (39,571) | (92,519) |
| Class R5 | (12) | (19) |
| Class R6 | (1,708) | (1,936) |
| Total distributions to shareholders from distributable earnings | (336,413) | (588,688) |
| Return of capital: | | |
| Class A | — | (122,829) |
| Class B | — | (4) |
| Class C | — | (23,715) |
| Class Y | — | (23,195) |
| Class R5 | — | (5) |
| Class R6 | — | (453) |
| Total return of capital | — | (170,201) |
| Share transactions–net: | | |
| Class A | 1,903,995 | (2,234,131) |
| Class B | — | (222,690) |
| Class C | (1,760,656) | (240,689) |
| Class Y | (257,095) | (2,643,691) |
| Class R6 | 6,542 | 101,408 |
| Net increase (decrease) in net assets resulting from share transactions | (107,214) | (5,239,793) |
| Net increase (decrease) in net assets | 761,060 | (7,374,955) |
| Net assets: | | |
| Beginning of period | 24,947,737 | 32,322,692 |
| End of period | $25,708,797 | $24,947,737 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 13 | Invesco World Bond Fund |
Financial Highlights
April 30, 2019
(Unaudited)
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 | Return of
capital | 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 |
| Six months ended 04/30/19 | $9.66 | $0.16 | $0.33 | $0.49 | $(0.14) | $- | $— | $(0.14) | $10.01 | 5.06% | $20,913 | 0.94%(d) | 2.17%(d) | 3.16%(d) | 85% |
| Year ended 10/31/18 | 10.43 | 0.33 | (0.83) | (0.50) | (0.21) | (0.06) | — | (0.27) | 9.66 | (4.89) | 18,347 | 0.93 | 2.21 | 3.25 | 131 |
| Year ended 10/31/17 | 10.44 | 0.33 | (0.07) | 0.26 | (0.04) | (0.23) | — | (0.27) | 10.43 | 2.63 | 22,150 | 0.95 | 2.21 | 3.22 | 245 |
| Year ended 10/31/16 | 9.81 | 0.25 | 0.54 | 0.79 | (0.08) | (0.08) | — | (0.16) | 10.44 | 8.02 | 28,870 | 1.10 | 1.84 | 2.36 | 246 |
| Year ended 10/31/15 | 10.63 | 0.18 | (0.74) | (0.56) | — | (0.12) | (0.14) | (0.26) | 9.81 | (5.38) | 26,426 | 1.10 | 1.72 | 1.79 | 135 |
| Year ended 10/31/14 | 11.07 | 0.20 | (0.30) | (0.10) | (0.12) | - | (0.22) | (0.34) | 10.63 | (0.97) | 32,668 | 1.10 | 1.68 | 1.83 | 237 |
| Class C |
| Six months ended 04/30/19 | 9.64 | 0.12 | 0.33 | 0.45 | (0.10) | - | — | (0.10) | 9.99 | 4.67 | 1,945 | 1.69(d) | 2.92(d) | 2.41(d) | 85 |
| Year ended 10/31/18 | 10.41 | 0.26 | (0.84) | (0.58) | (0.15) | (0.04) | — | (0.19) | 9.64 | (5.62) | 3,591 | 1.68 | 2.96 | 2.50 | 131 |
| Year ended 10/31/17 | 10.42 | 0.25 | (0.07) | 0.18 | (0.03) | (0.16) | — | (0.19) | 10.41 | 1.80 | 4,147 | 1.70 | 2.96 | 2.47 | 245 |
| Year ended 10/31/16 | 9.79 | 0.17 | 0.54 | 0.71 | (0.05) | (0.03) | — | (0.08) | 10.42 | 7.24 | 5,121 | 1.85 | 2.59 | 1.61 | 246 |
| Year ended 10/31/15 | 10.61 | 0.10 | (0.74) | (0.64) | — | (0.04) | (0.14) | (0.18) | 9.79 | (6.10) | 4,998 | 1.85 | 2.47 | 1.04 | 135 |
| Year ended 10/31/14 | 11.04 | 0.12 | (0.30) | (0.18) | (0.03) | - | (0.22) | (0.25) | 10.61 | (1.63) | 6,441 | 1.85 | 2.43 | 1.08 | 237 |
| Class Y |
| Six months ended 04/30/19 | 9.65 | 0.17 | 0.33 | 0.50 | (0.15) | - | — | (0.15) | 10.00 | 5.20 | 2,734 | 0.69(d) | 1.92(d) | 3.41(d) | 85 |
| Year ended 10/31/18 | 10.42 | 0.36 | (0.83) | (0.47) | (0.23) | (0.07) | — | (0.30) | 9.65 | (4.66) | 2,903 | 0.68 | 1.96 | 3.50 | 131 |
| Year ended 10/31/17 | 10.44 | 0.35 | (0.07) | 0.28 | (0.04) | (0.26) | — | (0.30) | 10.42 | 2.81 | 5,797 | 0.70 | 1.96 | 3.47 | 245 |
| Year ended 10/31/16 | 9.80 | 0.27 | 0.55 | 0.82 | (0.07) | (0.11) | — | (0.18) | 10.44 | 8.40 | 10,509 | 0.85 | 1.59 | 2.61 | 246 |
| Year ended 10/31/15 | 10.63 | 0.21 | (0.76) | (0.55) | — | (0.14) | (0.14) | (0.28) | 9.80 | (5.23) | 1,716 | 0.85 | 1.47 | 2.04 | 135 |
| Year ended 10/31/14 | 11.06 | 0.23 | (0.30) | (0.07) | (0.14) | - | (0.22) | (0.36) | 10.63 | (0.63) | 4,989 | 0.85 | 1.43 | 2.08 | 237 |
| Class R5 |
| Six months ended 04/30/19 | 9.64 | 0.16 | 0.32 | 0.48 | (0.15) | - | — | (0.15) | 9.97 | 4.99 | 1 | 0.69(d) | 1.72(d) | 3.41(d) | 85 |
| Year ended 10/31/18 | 10.42 | 0.36 | (0.84) | (0.48) | (0.23) | (0.07) | — | (0.30) | 9.64 | (4.75) | 1 | 0.68 | 1.73 | 3.50 | 131 |
| Year ended 10/31/17 | 10.44 | 0.36 | (0.08) | 0.28 | (0.04) | (0.26) | — | (0.30) | 10.42 | 2.81 | 1 | 0.70 | 1.77 | 3.47 | 245 |
| Year ended 10/31/16 | 9.81 | 0.27 | 0.54 | 0.81 | (0.07) | (0.11) | — | (0.18) | 10.44 | 8.29 | 1 | 0.85 | 1.30 | 2.61 | 246 |
| Year ended 10/31/15 | 10.64 | 0.21 | (0.76) | (0.55) | — | (0.14) | (0.14) | (0.28) | 9.81 | (5.23) | 1 | 0.85 | 1.16 | 2.04 | 135 |
| Year ended 10/31/14 | 11.07 | 0.23 | (0.30) | (0.07) | (0.14) | - | (0.22) | (0.36) | 10.64 | (0.63) | 118 | 0.85 | 1.15 | 2.08 | 237 |
| Class R6 |
| Six months ended 04/30/19 | 9.66 | 0.17 | 0.33 | 0.50 | (0.15) | - | — | (0.15) | 10.01 | 5.19 | 116 | 0.69(d) | 1.72(d) | 3.41(d) | 85 |
| Year ended 10/31/18 | 10.43 | 0.35 | (0.82) | (0.47) | (0.23) | (0.07) | — | (0.30) | 9.66 | (4.65) | 106 | 0.68 | 1.73 | 3.50 | 131 |
| Year ended 10/31/17 | 10.44 | 0.36 | (0.07) | 0.29 | (0.04) | (0.26) | — | (0.30) | 10.43 | 2.91 | 11 | 0.70 | 1.77 | 3.47 | 245 |
| Year ended 10/31/16 | 9.81 | 0.25 | 0.56 | 0.81 | (0.07) | (0.11) | — | (0.18) | 10.44 | 8.29 | 11 | 0.85 | 1.30 | 2.61 | 246 |
| Year ended 10/31/15 | 10.63 | 0.20 | (0.74) | (0.54) | — | (0.14) | (0.14) | (0.28) | 9.81 | (5.14) | 19,413 | 0.85 | 1.16 | 2.04 | 135 |
| Year ended 10/31/14 | 11.07 | 0.23 | (0.31) | (0.08) | (0.14) | - | (0.22) | (0.36) | 10.63 | (0.72) | 12,637 | 0.85 | 1.14 | 2.08 | 237 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Ratios are annualized and based on average daily net assets (000’s omitted) of $19,839, $2,646, $2,613, $1 and $114 for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 | Invesco World Bond Fund |
Notes to Financial Statements
April 30, 2019
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco World 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 total return, comprised of current income and capital appreciation.
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 ten 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 tenth 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 (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value ("NAV") per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote, 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.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (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. 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 NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends,
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bid/asked 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 economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. 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 and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions– Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
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 to each share class based on relative net assets. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| I. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in |
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| | 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.
| 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 settlement of the two currencies, 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). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.
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 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 financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
| L. | Call Options Purchased and Written – The Fund may write 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. An uncovered call option exists without the ownership of the underlying security. 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. The risk in writing an uncovered call option is that the Fund may incur significant losses if the value of the written security exceeds the exercise price of the option.
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
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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 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 NAV 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
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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. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. 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. 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. 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 April 30, 2019 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. |
NOTE 2—Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the "Adviser" or "Invesco"). Under the terms of the investment advisory agreement, the Fund 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 | 0.65% |
| Next $250 million | 0.59% |
| Next $500 million | 0.565% |
| Next $1.5 billion | 0.54% |
| Next $2.5 billion | 0.515% |
| Next $5 billion | 0.49% |
| Over $10 billion | 0.465% |
For the six months ended April 30, 2019, the effective advisory fees incurred by the Fund was 0.65%.
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 contractually agreed, through at least February 29, 2020, 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 Y, Class R5 and Class R6 shares to 0.94%, 1.69%, 0.69%, 0.69% and 0.69%, 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. Unless Invesco continues the fee waiver agreement, it will terminate on February 29, 2020. 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. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.
The Adviser has contractually agreed, through at least June 30, 2021, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended April 30, 2019, the Adviser waived advisory fees and reimbursed fund level expenses of $116,483 and reimbursed class level expenses of $29,652, $3,955, $3,906, $0 and $57 of Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively.
| 19 | Invesco World Bond Fund |
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asAdministrative services fees. Also, Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as custodian and fund accountant and provides certain administrative services to the Fund.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2019, expenses incurred under the agreement are shown in the Statement of Operations asTransfer 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 Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the six months ended April 30, 2019, expenses incurred under the Plans are shown in the Statement of Operations asDistribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the six months ended April 30, 2019, IDI advised the Fund that IDI retained $815 in front-end sales commissions from the sale of Class A shares and $102 and $511 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2019. 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 | | | | |
| Non-U.S. Dollar Denominated Bonds & Notes | $— | $11,671,874 | $— | $11,671,874 |
| U.S. Dollar Denominated Bonds & Notes | — | 8,224,422 | — | 8,224,422 |
| U.S. Treasury Securities | — | 3,072,655 | — | 3,072,655 |
| Asset-Backed Securities | — | 674,349 | — | 674,349 |
| Collateralized Mortgage Obligations | — | 672,079 | — | 672,079 |
| U.S. Government Sponsored Agency Mortgage-Backed Securities | — | 75,511 | — | 75,511 |
| Money Market Funds | 54,944 | — | — | 54,944 |
| Total Investments in Securities | 54,944 | 24,390,890 | — | 24,445,834 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 44,909 | — | — | 44,909 |
| Forward Foreign Currency Contracts | — | 163,646 | — | 163,646 |
| | 44,909 | 163,646 | — | 208,555 |
| 20 | Invesco World Bond Fund |
| | Level 1 | Level 2 | Level 3 | Total |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | $(6,778) | $— | $— | $(6,778) |
| Forward Foreign Currency Contracts | — | (304,480) | — | (304,480) |
| | (6,778) | (304,480) | — | (311,258) |
| Total Other Investments | 38,131 | (140,834) | — | (102,703) |
| Total Investments | $93,075 | $24,250,056 | $— | $24,343,131 |
| * | 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 April 30, 2019:
| | Value |
| Derivative Assets | Currency
Risk | Interest
Rate Risk | Total |
| Unrealized appreciation on futures contracts — Exchange-Traded(a) | $- | $44,909 | $44,909 |
| Unrealized appreciation on forward foreign currency contracts outstanding | 163,646 | - | 163,646 |
| Total Derivative Assets | 163,646 | 44,909 | 208,555 |
| Derivatives not subject to master netting agreements | - | (44,909) | (44,909) |
| Total Derivative Assets subject to master netting agreements | $163,646 | $- | $163,646 |
| | Value |
| Derivative Liabilities | Currency
Risk | Interest
Rate Risk | Total |
| Unrealized depreciation on futures contracts — Exchange-Traded(a) | $- | $(6,778) | $(6,778) |
| Unrealized depreciation on forward foreign currency contracts outstanding | (304,480) | - | (304,480) |
| Total Derivative Liabilities | (304,480) | (6,778) | (311,258) |
| Derivatives not subject to master netting agreements | - | 6,778 | 6,778 |
| Total Derivative Liabilities subject to master netting agreements | $(304,480) | $- | $(304,480) |
| (a) | The daily variation margin receivable 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 April 30, 2019.
| | 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 | | | | |
| Goldman Sachs International | $163,646 | $(304,480) | $(140,834) | $– | $– | $(140,834) | | | | |
| 21 | Invesco World Bond Fund |
Effect of Derivative Investments for the six months ended April 30, 2019
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 | Interest
Rate Risk | Total |
| Realized Gain (Loss): | | | | |
| Forward foreign currency contracts | $- | $(332,187) | $- | $(332,187) |
| Futures contracts | - | - | 110,151 | 110,151 |
| Options purchased(a) | - | (17,337) | - | (17,337) |
| Options written | - | 7,418 | - | 7,418 |
| Swap agreements | (59,025) | - | (14,477) | (73,502) |
| Change in Net Unrealized Appreciation (Depreciation): | | | | |
| Forward foreign currency contracts | - | (156,081) | - | (156,081) |
| Futures contracts | - | - | (15,232) | (15,232) |
| Total | $(59,025) | $(498,187) | $80,442 | $(476,770) |
| (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 six months average notional value of forward foreign currency contracts and futures contracts, the two months average notional value of swap agreements and the one month average notional value of options purchased and options written held during the period.
| | Forward
Foreign Currency
Contracts | Futures
Contracts | Options
Purchased | Options
Written | Swap
Agreements |
| Average notional value | $50,470,905 | $7,640,068 | $1,500,000 | $1,500,000 | $3,215,984 |
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—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 six months ended April 30, 2019, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $572.
NOTE 7—Cash Balances
The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, 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 captionAmount 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. The Fund may not purchase additional securities when any borrowings from banks exceed 5% of the Fund’s total assets.
NOTE 8—Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be
| 22 | Invesco World Bond Fund |
used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2018, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $760,391 | $240,875 | $1,001,266 |
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2019 was $15,208,943 and $14,588,780, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $4,980,506 and $6,612,151, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $529,658 |
| Aggregate unrealized (depreciation) of investments | (624,056) |
| Net unrealized appreciation (depreciation) of investments | $(94,398) |
Cost of investments for tax purposes is $24,437,529.
| 23 | Invesco World Bond Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Six months ended
April 30, 2019(a) | | Year ended
October 31, 2018 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 399,733 | $3,962,548 | | 386,231 | $3,997,153 |
| Class C | 24,287 | 242,056 | | 94,499 | 976,792 |
| Class Y | 71,129 | 708,393 | | 257,352 | 2,612,923 |
| Class R6 | 730 | 7,125 | | 9,758 | 99,645 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 25,271 | 249,837 | | 50,935 | 520,184 |
| Class B(b) | — | — | | 88 | 924 |
| Class C | 2,328 | 22,853 | | 6,882 | 70,106 |
| Class Y | 3,097 | 30,586 | | 8,912 | 91,682 |
| Class R6 | 157 | 1,557 | | 206 | 2,086 |
| Conversion of Class B shares to Class A shares:(c) | | | | | |
| Class A | — | — | | 18,932 | 202,956 |
| Class B | — | — | | (18,980) | (202,956) |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 109,681 | 1,096,951 | | - | - |
| Class C | (109,792) | (1,096,951) | | - | - |
| Reacquired: | | | | | |
| Class A | (343,754) | (3,405,341) | | (681,579) | (6,954,424) |
| Class B(b) | — | — | | (1,970) | (20,658) |
| Class C | (94,443) | (928,614) | | (127,453) | (1,287,587) |
| Class Y | (101,478) | (996,074) | | (521,993) | (5,348,296) |
| Class R6 | (214) | (2,140) | | (31) | (323) |
| Net increase (decrease) in share activity | (13,268) | $(107,214) | | (518,211) | $(5,239,793) |
| (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. |
| (b) | Reflects activity for the period November 1, 2017 through January 26, 2018 (date of conversion). |
| (c) | Effective as of the close of business on January 26, 2018, all outstanding Class B shares were converted to Class A shares. |
| 24 | Invesco World Bond Fund |
Calculating your ongoing Fund expenses
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2018 through April 30, 2019.
Actual expenses
The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
| | Beginning
Account Value (11/01/18) | ACTUAL | HYPOTHETICAL
(5% annual return before
expenses) | Annualized
Expense
Ratio |
Ending
Account Value
(04/30/19)1 | Expenses
Paid During
Period2 | Ending
Account Value
(04/30/19) | Expenses
Paid During
Period2 |
| Class A | $1,000.00 | $1,050.60 | $4.78 | $1,020.13 | $4.71 | 0.94% |
| Class C | 1,000.00 | 1,046.70 | 8.58 | 1,016.41 | 8.45 | 1.69 |
| Class Y | 1,000.00 | 1,052.00 | 3.51 | 1,021.37 | 3.46 | 0.69 |
| Class R5 | 1,000.00 | 1,049.90 | 3.51 | 1,021.37 | 3.46 | 0.69 |
| Class R6 | 1,000.00 | 1,051.90 | 3.51 | 1,021.37 | 3.46 | 0.69 |
| 1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2018 through April 30, 2019, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
| 2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
| 25 | Invesco World Bond Fund |
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Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
With eDelivery, you can elect to have any or all of the following materials delivered straight to your inbox to download, save and print from your own computer:
| • | Fund reports and prospectuses |
| • | Quarterly statements |
| • | Daily confirmations |
| • | Tax forms |
Invesco mailing information
Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
Important notice regarding delivery of security holder documents
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the list appears in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-Q (or any successor Form) filings on the SEC website, sec.gov. The SEC file numbers for the Fund are shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246, or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. This information is also available on the SEC website, sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
| SEC file numbers: 811-05426 and 033-19338 | Invesco Distributors, Inc. | WBD-SAR-1 |
Not applicable for a semi-annual report.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
PricewaterhouseCoopers LLP (“PwC”) informed the Audit Committee (the “Audit Committee”) of the Registrant’s Board of Trustees (the “Board”) that it has identified an issue related to its independence under Rule2-01(c)(1)(ii)(A) of RegulationS-X (referred to as the Loan Rule). The Loan Rule prohibits accounting firms, such as PricewaterhouseCoopers LLP, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.
The Loan Rule specifically provides that an accounting firm would not be independent if it or certain affiliates and covered persons receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities (referred to as a “more than ten percent owner”). For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PwC informed the Trust it and certain affiliates and covered persons have relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex.
On June 20, 2016, the SEC Staff issued a“no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al.,No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. On June 18, 2019, the SEC adopted amendments to the Loan Rule (the “Amendments”) addressing many of the issues that led to the issuance of theno-action letter. The Amendments will become effective and supersede theno-action letter 90 days after publication in the Federal Register. In connection with prior independence determinations, PwC communicated, as contemplated by theno-action letter, that it believes that it remains objective and impartial and that a reasonable investor possessing all the facts would conclude that PwC is able to exhibit the requisite objectivity and impartiality to report on the Funds’ financial statements as the independent registered public accounting firm. PwC also represented that it has complied with PCAOB Rule 3526(b)(1) and (2), which are conditions to the Funds relying on the no action letter, and affirmed that it is an independent accountant within the meaning of PCAOB Rule 3520. Therefore, the Adviser, the Funds and PwC concluded that PwC could continue as the Funds’ independent registered public accounting firm. The Invesco Fund Complex relied upon theno-action letter in reaching this conclusion.
If in the future the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the SEC’sno-action letter, the Funds will need to take other action in order for the Funds’ filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares
or have other material adverse effects on the Funds. The SECno-action relief was initially set to expire 18 months from issuance but has been extended by the SEC without an expiration date, except that theno-action letter will be withdrawn upon the effectiveness of the Amendments.
During the reporting period, PwC advised the Audit Committee of the following matters for consideration under the SEC’s auditor independence rules. PwC advised the Audit Committee that a PwC Manager, a PwC Senior Manager and a PwC Director each held financial interests in investment companies within the Invesco Fund Complex that were inconsistent with the requirements of Rule2-01(c)(1) of RegulationS-X. PwC noted, among other things, that during the time of its audit, the engagement team was not aware of the investments, the individuals were not in the chain of command of the audit or the audit partners of Invesco or the affiliate of the Registrant, the services each individual provided were not relied upon by the audit engagement team with respect to the audit of the Registrant or its affiliates and the investments were not material to the net worth of each individual or their respective immediate family members which they considered in reaching their conclusion. PwC advised the Audit Committee that it believes its objectivity and impartiality had not been adversely affected by these matters as they related to the audit of the Registrant.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 8. | PORTFOLIO MANAGERS OFCLOSED-END MANAGEMENT COMPANIES. |
Not applicable.
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BYCLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
None
| ITEM 11. | CONTROLS AND PROCEDURES. |
| (a) | As of June 18, 2019, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of June 18, 2019, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on FormN-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 Rule30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
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| 13(a) (1) | | Not applicable. |
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| 13(a) (2) | | Certifications of principal executive officer and principal financial officer as required by Rule30a-2(a) under the Investment Company Act of 1940. |
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| 13(a) (3) | | Not applicable. |
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| 13(a) (4) | | Not applicable. |
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| 13(b) | | Certifications of principal executive officer and principal financial officer as required by Rule30a-2(b) under the Investment Company Act of 1940. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: AIM Investment Funds (Invesco Investment Funds)
| | |
| By: | | /s/ Sheri Morris |
| | Sheri Morris |
| | Principal Executive Officer |
| |
| Date: | | July 8, 2019 |
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
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| By: | | /s/ Sheri Morris |
| | Sheri Morris |
| | Principal Executive Officer |
| |
| Date: | | July 8, 2019 |
| | |
| By: | | /s/ Kelli Gallegos |
| | Kelli Gallegos |
| | Principal Financial Officer |
| |
| Date: | | July 8, 2019 |
