UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05426
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: 4/30/23
ITEM 1. | REPORTS TO STOCKHOLDERS. |
(a) The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
(b) Not applicable.
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Balanced-Risk Allocation Fund
Nasdaq:
A: ABRZX ∎ C: ABRCX ∎ R: ABRRX ∎ Y: ABRYX ∎ R5: ABRIX ∎ R6: ALLFX
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
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Fund vs. Indexes | ||||
Cumulative total returns, 10/31/22 to 4/30/23, 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. |
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Class A Shares | 2.67 | % | ||
Class C Shares | 2.22 | |||
Class R Shares | 2.62 | |||
Class Y Shares | 2.84 | |||
Class R5 Shares | 2.84 | |||
Class R6 Shares | 2.83 | |||
S&P 500 Indexq (Broad Market Index) | 8.63 | |||
Custom Invesco Balanced-Risk Allocation Style Index∎ (Style-Specific Index) | 10.26 | |||
Lipper Alternative Global Macro Funds Index◆ (Peer Group Index) | 6.75 | |||
Source(s): qRIMES Technologies Corp.; ∎Invesco, RIMES Technologies Corp.; ◆Lipper Inc. |
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The S&P 500® Index is an unmanaged index considered representative of the US stock market. |
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The Custom Invesco Balanced-Risk Allocation Style Index is composed of 60% MSCI World Index and 40% Bloomberg 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 U.S. Aggregate Bond Index. The MSCI World Index is considered representative of stocks of developed countries. The index return is computed using the net return, which withholds applicable taxes for non-resident investors. The Bloomberg U.S. Aggregate Bond Index is considered representative of the US investment-grade, fixed-rate bond market. The JP Morgan GBI Global (Traded) Index is considered representative of fixed-rate debt of developed government bond markets. |
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The Lipper Alternative Global Macro Funds Index is an unmanaged index considered representative of alternative global macro funds tracked by Lipper. |
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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). |
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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. |
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For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.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 |
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As of 4/30/23, including maximum applicable sales charges |
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Class A Shares | ||||
Inception (6/2/09) | 5.09 | % | ||
10 Years | 2.42 | |||
5 Years | 1.01 | |||
1 Year | -13.32 | |||
Class C Shares | ||||
Inception (6/2/09) | 5.05 | % | ||
10 Years | 2.38 | |||
5 Years | 1.40 | |||
1 Year | -9.76 | |||
Class R Shares | ||||
Inception (6/2/09) | 5.25 | % | ||
10 Years | 2.75 | |||
5 Years | 1.93 | |||
1 Year | -8.35 | |||
Class Y Shares | ||||
Inception (6/2/09) | 5.78 | % | ||
10 Years | 3.26 | |||
5 Years | 2.43 | |||
1 Year | -7.95 | |||
Class R5 Shares | ||||
Inception (6/2/09) | 5.81 | % | ||
10 Years | 3.30 | |||
5 Years | 2.47 | |||
1 Year | -7.94 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 3.55 | % | ||
10 Years | 3.38 | |||
5 Years | 2.54 | |||
1 Year | -7.81 |
The performance data quoted represent past performance and cannot guarantee 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.
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 Balanced-Risk Allocation Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Balanced-Risk Allocation Fund |
Consolidated Schedule of Investments
April 30, 2023
(Unaudited)
Interest Rate | Maturity Date | Principal Amount (000) | Value | |||||||||||||
| ||||||||||||||||
U.S. Treasury Securities–32.93% |
| |||||||||||||||
U.S. Treasury Bills–8.43%(a) |
| |||||||||||||||
U.S. Treasury Bills | 4.88% | 06/01/2023 | $ | 55,000 | $ | 54,771,719 | ||||||||||
| ||||||||||||||||
U.S. Treasury Bills | 4.58% | 06/08/2023 | 81,500 | 81,109,865 | ||||||||||||
| ||||||||||||||||
135,881,584 | ||||||||||||||||
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U.S. Treasury Floating Rate Notes–24.50% | ||||||||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate - 0.02%)(b) | 5.17% | 01/31/2024 | 114,500 | 114,522,895 | ||||||||||||
| ||||||||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate - 0.08%)(b) | 5.11% | 04/30/2024 | 128,300 | 128,210,462 | ||||||||||||
| ||||||||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.04%)(b) | 5.22% | 07/31/2024 | 134,000 | 134,020,369 | ||||||||||||
| ||||||||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.17%)(b) | 5.39% | 01/31/2025 | 18,000 | 18,036,526 | ||||||||||||
| ||||||||||||||||
394,790,252 | ||||||||||||||||
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Total U.S. Treasury Securities (Cost $530,683,989) |
| 530,671,836 | ||||||||||||||
| ||||||||||||||||
Expiration Date | ||||||||||||||||
Commodity-Linked Securities–2.89% | ||||||||||||||||
Canadian Imperial Bank of Commerce EMTN, U.S. Federal Funds Effective Rate minus 0.03% (linked to the Canadian Imperial Bank of Commerce Gold Standard Roll Excess Return Index) (Canada)(c)(d) | 06/07/2024 | 13,200 | 12,893,423 | |||||||||||||
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Canadian Imperial Bank of Commerce EMTN, U.S. Federal Funds Effective Rate minus 0.03% (linked to the Canadian Imperial Bank of Commerce Silver Index) (Canada)(c)(d) | 06/07/2024 | 12,300 | 12,143,801 | |||||||||||||
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RBC Capital Markets LLC, Commodity-Linked Notes (linked to the RBC Enhanced Copper 2x Index) (Canada)(c)(d) | 06/07/2024 | 22,700 | 21,606,496 | |||||||||||||
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Total Commodity-Linked Securities (Cost $48,200,000) |
| 46,643,720 | ||||||||||||||
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Shares | ||||||||||||||||
Money Market Funds–55.44% | ||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(e)(f) |
| 238,213,818 | 238,213,818 | |||||||||||||
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Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(e)(f) |
| 57,664,753 | 57,682,052 | |||||||||||||
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Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio (Ireland), Agency Class, 4.93%(e)(f) | 159,044,632 | 159,044,632 | ||||||||||||||
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Invesco Treasury Obligations Portfolio, Institutional Class, 4.65%(e)(f) |
| 346,300,000 | 346,300,000 | |||||||||||||
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Invesco Treasury Portfolio, Institutional Class, 4.77%(e)(f) |
| 92,271,792 | 92,271,792 | |||||||||||||
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Total Money Market Funds (Cost $893,502,300) |
| 893,512,294 | ||||||||||||||
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Options Purchased–0.51% | ||||||||||||||||
(Cost $20,227,031)(g) | 8,156,558 | |||||||||||||||
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TOTAL INVESTMENTS IN SECURITIES–91.77% (Cost $1,492,613,320) |
| 1,478,984,408 | ||||||||||||||
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OTHER ASSETS LESS LIABILITIES–8.23% |
| 132,572,986 | ||||||||||||||
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NET ASSETS–100.00% |
| $ | 1,611,557,394 | |||||||||||||
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Investment Abbreviations:
EMTN – European Medium-Term Notes
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 | Invesco Balanced-Risk Allocation Fund |
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, 2023. |
(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, 2023 was $46,643,720, which represented 2.89% of the Fund’s Net Assets. |
(d) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
(e) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $263,828,894 | $200,666,580 | $ (226,281,656) | $ - | $ - | $238,213,818 | $ 5,160,302 | |||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 60,972,621 | 143,333,271 | (146,629,755) | 3,967 | 1,948 | 57,682,052 | 1,284,095 | |||||||||||||||||||||
Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Agency Class | - | 271,473,324 | (112,428,692) | - | - | 159,044,632 | 1,700,003 | |||||||||||||||||||||
Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Institutional Class | 174,522,956 | 128,046,348 | (302,569,304) | - | - | - | 1,523,808 | |||||||||||||||||||||
Invesco Treasury Obligations Portfolio, Institutional Class | 380,000,000 | - | (33,700,000) | - | - | 346,300,000 | 7,516,972 | |||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 97,546,164 | 229,333,234 | (234,607,606) | - | - | 92,271,792 | 1,986,565 | |||||||||||||||||||||
Total | $976,870,635 | $972,852,757 | $(1,056,217,013) | $3,967 | $1,948 | $893,512,294 | $19,171,745 |
(f) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(g) | The table below details options purchased. |
Open Exchange-Traded Index Options Purchased | ||||||||||||||||||||||||||||||
Type of | Expiration | Number of | Exercise | Notional | ||||||||||||||||||||||||||
Description | Contract | Date | Contracts | Price | Value* | Value | ||||||||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||||||||
EURO STOXX 50 Index | Put | 05/19/2023 | 85 | EUR | 3,500.00 | EUR | 2,975,000 | $ 937 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 06/16/2023 | 85 | EUR | 3,600.00 | EUR | 3,060,000 | 7,587 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 07/21/2023 | 85 | EUR | 3,400.00 | EUR | 2,890,000 | 12,176 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 08/18/2023 | 85 | EUR | 3,500.00 | EUR | 2,975,000 | 23,509 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 09/15/2023 | 85 | EUR | 3,350.00 | EUR | 2,847,500 | 23,977 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 10/20/2023 | 85 | EUR | 3,200.00 | EUR | 2,720,000 | 25,570 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 01/19/2024 | 85 | EUR | 3,900.00 | EUR | 3,315,000 | 117,920 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 11/17/2023 | 85 | EUR | 3,500.00 | EUR | 2,975,000 | 49,828 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 12/15/2023 | 85 | EUR | 3,875.00 | EUR | 3,293,750 | 100,405 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 02/16/2024 | 85 | EUR | 4,100.00 | EUR | 3,485,000 | 169,246 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 03/15/2024 | 85 | EUR | 4,150.00 | EUR | 3,527,500 | 190,508 | ||||||||||||||||||||||
EURO STOXX 50 Index | Put | 04/19/2024 | 85 | EUR | 4,200.00 | EUR | 3,570,000 | 212,331 | ||||||||||||||||||||||
FTSE 100 Index | Put | 05/19/2023 | 47 | GBP | 7,225.00 | GBP | 3,395,750 | 4,135 | ||||||||||||||||||||||
FTSE 100 Index | Put | 06/16/2023 | 47 | GBP | 7,375.00 | GBP | 3,466,250 | 20,674 | ||||||||||||||||||||||
FTSE 100 Index | Put | 07/21/2023 | 47 | GBP | 6,950.00 | GBP | 3,266,500 | 21,855 | ||||||||||||||||||||||
FTSE 100 Index | Put | 08/18/2023 | 47 | GBP | 7,200.00 | GBP | 3,384,000 | 41,347 | ||||||||||||||||||||||
FTSE 100 Index | Put | 09/15/2023 | 47 | GBP | 7,000.00 | GBP | 3,290,000 | 47,549 | ||||||||||||||||||||||
FTSE 100 Index | Put | 10/20/2023 | 47 | GBP | 6,800.00 | GBP | 3,196,000 | 48,140 | ||||||||||||||||||||||
FTSE 100 Index | Put | 01/19/2024 | 47 | GBP | 7,450.00 | GBP | 3,501,500 | 143,238 | ||||||||||||||||||||||
FTSE 100 Index | Put | 11/17/2023 | 47 | GBP | 7,050.00 | GBP | 3,313,500 | 73,243 | ||||||||||||||||||||||
FTSE 100 Index | Put | 12/15/2023 | 47 | GBP | 7,450.00 | GBP | 3,501,500 | 120,793 | ||||||||||||||||||||||
FTSE 100 Index | Put | 02/16/2024 | 47 | GBP | 7,650.00 | GBP | 3,595,500 | 161,844 | ||||||||||||||||||||||
FTSE 100 Index | Put | 03/15/2024 | 47 | GBP | 7,800.00 | GBP | 3,666,000 | 207,031 | ||||||||||||||||||||||
FTSE 100 Index | Put | 04/19/2024 | 47 | GBP | 7,575.00 | GBP | 3,560,250 | 184,585 | ||||||||||||||||||||||
MSCI Emerging Markets Index | Put | 05/19/2023 | 65 | USD | 1,030.00 | USD | 6,695,000 | 303,225 | ||||||||||||||||||||||
MSCI Emerging Markets Index | Put | 06/16/2023 | 65 | USD | 1,030.00 | USD | 6,695,000 | 331,825 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 | Invesco Balanced-Risk Allocation Fund |
Open Exchange-Traded Index Options Purchased–(continued) | ||||||||||||||||||||||||
Type of | Expiration | Number of | Exercise | Notional | ||||||||||||||||||||
Description | Contract | Date | Contracts | Price | Value* | Value | ||||||||||||||||||
MSCI Emerging Markets Index | Put | 07/21/2023 | 65 | USD | 975.00 | USD | 6,337,500 | $ 169,000 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 08/18/2023 | 65 | USD | 970.00 | USD | 6,305,000 | 203,775 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 09/15/2023 | 65 | USD | 950.00 | USD | 6,175,000 | 192,400 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 10/20/2023 | 65 | USD | 850.00 | USD | 5,525,000 | 95,225 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 12/15/2023 | 65 | USD | 970.00 | USD | 6,305,000 | 302,900 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 01/19/2024 | 65 | USD | 960.00 | USD | 6,240,000 | 325,000 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 11/17/2023 | 65 | USD | 840.00 | USD | 5,460,000 | 102,050 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 03/15/2024 | 65 | USD | 970.00 | USD | 6,305,000 | 377,000 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 02/16/2024 | 65 | USD | 1,040.00 | USD | 6,760,000 | 554,125 | ||||||||||||||||
MSCI Emerging Markets Index | Put | 04/19/2024 | 65 | USD | 975.00 | USD | 6,337,500 | 416,325 | ||||||||||||||||
Nikkei 225 Index | Put | 06/09/2023 | 28 | JPY | 25,500.00 | JPY | 714,000,000 | 7,809 | ||||||||||||||||
Nikkei 225 Index | Put | 06/09/2023 | 28 | JPY | 26,000.00 | JPY | 728,000,000 | 11,098 | ||||||||||||||||
Nikkei 225 Index | Put | 09/08/2023 | 28 | JPY | 25,750.00 | JPY | 721,000,000 | 68,847 | ||||||||||||||||
Nikkei 225 Index | Put | 09/08/2023 | 28 | JPY | 26,500.00 | JPY | 742,000,000 | 92,480 | ||||||||||||||||
Nikkei 225 Index | Put | 09/08/2023 | 28 | JPY | 27,750.00 | JPY | 777,000,000 | 151,051 | ||||||||||||||||
Nikkei 225 Index | Put | 12/08/2023 | 28 | JPY | 25,000.00 | JPY | 700,000,000 | 103,784 | ||||||||||||||||
Nikkei 225 Index | Put | 03/08/2024 | 28 | JPY | 24,250.00 | JPY | 679,000,000 | 134,610 | ||||||||||||||||
Nikkei 225 Index | Put | 12/08/2023 | 28 | JPY | 26,250.00 | JPY | 735,000,000 | 153,106 | ||||||||||||||||
Nikkei 225 Index | Put | 12/08/2023 | 28 | JPY | 27,000.00 | JPY | 756,000,000 | 193,181 | ||||||||||||||||
Nikkei 225 Index | Put | 03/08/2024 | 28 | JPY | 26,000.00 | JPY | 728,000,000 | 199,347 | ||||||||||||||||
Nikkei 225 Index | Put | 03/08/2024 | 28 | JPY | 26,250.00 | JPY | 735,000,000 | 212,705 | ||||||||||||||||
Nikkei 225 Index | Put | 06/14/2024 | 28 | JPY | 27,000.00 | JPY | 756,000,000 | 331,902 | ||||||||||||||||
S&P 500 Index | Put | 05/19/2023 | 8 | USD | 4,075.00 | USD | 3,260,000 | 18,120 | ||||||||||||||||
S&P 500 Index | Put | 06/16/2023 | 8 | USD | 4,050.00 | USD | 3,240,000 | 37,000 | ||||||||||||||||
S&P 500 Index | Put | 08/18/2023 | 8 | USD | 4,100.00 | USD | 3,280,000 | 85,920 | ||||||||||||||||
S&P 500 Index | Put | 09/15/2023 | 8 | USD | 3,900.00 | USD | 3,120,000 | 66,040 | ||||||||||||||||
S&P 500 Index | Put | 10/20/2023 | 8 | USD | 3,625.00 | USD | 2,900,000 | 47,960 | ||||||||||||||||
S&P 500 Index | Put | 12/15/2023 | 8 | USD | 4,100.00 | USD | 3,280,000 | 139,840 | ||||||||||||||||
S&P 500 Index | Put | 01/19/2024 | 8 | USD | 3,900.00 | USD | 3,120,000 | 110,880 | ||||||||||||||||
S&P 500 Index | Put | 04/19/2024 | 8 | USD | 4,150.00 | USD | 3,320,000 | 189,960 | ||||||||||||||||
S&P 500 Index | Put | 07/21/2023 | 8 | USD | 3,750.00 | USD | 3,000,000 | 24,640 | ||||||||||||||||
S&P 500 Index | Put | 11/17/2023 | 8 | USD | 3,875.00 | USD | 3,100,000 | 87,760 | ||||||||||||||||
S&P 500 Index | Put | 02/16/2024 | 8 | USD | 4,100.00 | USD | 3,280,000 | 159,440 | ||||||||||||||||
S&P 500 Index | Put | 03/15/2024 | 8 | USD | 4,000.00 | USD | 3,200,000 | 147,800 | ||||||||||||||||
Total Index Options Purchased | $8,156,558 |
* | Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier. |
Open Futures Contracts(a) | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Commodity Risk |
| |||||||||||||||||||
| ||||||||||||||||||||
Brent Crude | 350 | October-2023 | $ | 27,328,000 | $ | (1,173,314 | ) | $ | (1,173,314 | ) | ||||||||||
| ||||||||||||||||||||
Gasoline Reformulated Blendstock Oxygenate Blending | 346 | May-2023 | 36,767,413 | (2,828,918 | ) | (2,828,918 | ) | |||||||||||||
| ||||||||||||||||||||
Low Sulphur Gas Oil | 20 | June-2023 | 1,389,000 | 17,250 | 17,250 | |||||||||||||||
| ||||||||||||||||||||
New York Harbor Ultra-Low Sulfur Diesel | 301 | May-2023 | 30,051,298 | (2,985,944 | ) | (2,985,944 | ) | |||||||||||||
| ||||||||||||||||||||
WTI Crude | 192 | October-2023 | 14,325,120 | (310,174 | ) | (310,174 | ) | |||||||||||||
| ||||||||||||||||||||
Subtotal | (7,281,100 | ) | (7,281,100 | ) | ||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 | Invesco Balanced-Risk Allocation Fund |
Open Futures Contracts(a)–(continued) | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Equity Risk |
| |||||||||||||||||||
| ||||||||||||||||||||
E-Mini Russell 2000 Index | 1,052 | June-2023 | $ | 93,354,480 | $ | (2,214,415 | ) | $ | (2,214,415 | ) | ||||||||||
| ||||||||||||||||||||
EURO STOXX 50 Index | 750 | June-2023 | 35,701,575 | 1,492,545 | 1,492,545 | |||||||||||||||
| ||||||||||||||||||||
FTSE 100 Index | 417 | June-2023 | 41,204,601 | 1,306,604 | 1,306,604 | |||||||||||||||
| ||||||||||||||||||||
MSCI Emerging Markets Index | 480 | June-2023 | 23,620,800 | (141,147 | ) | (141,147 | ) | |||||||||||||
| ||||||||||||||||||||
Nikkei 225 Index | 448 | June-2023 | 94,930,163 | 2,496,226 | 2,496,226 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 2,939,813 | 2,939,813 | ||||||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Australia 10 Year Bonds | 2,700 | June-2023 | 218,778,951 | 1,235,999 | 1,235,999 | |||||||||||||||
| ||||||||||||||||||||
Canada 10 Year Bonds | 1,647 | June-2023 | 153,266,974 | 4,731,747 | 4,731,747 | |||||||||||||||
| ||||||||||||||||||||
Euro-Bund | 1,127 | June-2023 | 168,344,075 | 5,865,128 | 5,865,128 | |||||||||||||||
| ||||||||||||||||||||
Japan 10 Year Bonds | 247 | June-2023 | 269,398,510 | 3,912,378 | 3,912,378 | |||||||||||||||
| ||||||||||||||||||||
Long Gilt | 1,000 | June-2023 | 127,509,888 | 1,013,240 | 1,013,240 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury Long Bonds | 768 | June-2023 | 101,112,000 | 4,398,125 | 4,398,125 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 21,156,617 | 21,156,617 | ||||||||||||||||||
| ||||||||||||||||||||
Subtotal-Long Futures Contracts | 16,815,330 | 16,815,330 | ||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
E-Mini S&P 500 Index | 41 | June-2023 | (8,586,425 | ) | (321,033 | ) | (321,033 | ) | ||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | 16,494,297 | $ | 16,494,297 | ||||||||||||||||
|
(a) | Futures contracts collateralized by $71,695,000 cash held with Merrill Lynch International, the futures commission merchant. |
Open Over-The-Counter Total Return Swap Agreements(a)(b) | ||||||||||||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(c) | Fixed Rate | Payment Frequency | Number of Contracts | Maturity Date | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | Pay | Canadian Imperial Bank of Commerce Silver Commodity Index | 0.00 | % | Monthly | 103,000 | April-2024 | USD | 12,863,835 | $ – | $ | 90,640 | $ | 90,640 | ||||||||||||||||||||||||||||
Cargill, Inc. | Receive | Cargill Coffee Front Index | 0.20 | Monthly | 30,500 | March-2024 | USD | 5,238,384 | – | 119,392 | 119,392 | |||||||||||||||||||||||||||||||
Cargill, Inc. | Receive | Cargill Sugar Index | 0.20 | Monthly | 36,000 | February-2024 | USD | 17,794,426 | – | 2,303,924 | 2,303,924 | |||||||||||||||||||||||||||||||
Macquarie Bank Ltd. | Receive | Macquarie Aluminium Dynamic Selection Index | 0.30 | Monthly | 184,000 | February-2024 | USD | 10,104,470 | – | 75,532 | 75,532 | |||||||||||||||||||||||||||||||
Merrill Lynch International | Pay | Merrill Lynch Gold Excess Return Index | 0.01 | Monthly | 34,000 | April-2024 | USD | 7,591,574 | – | 0 | 0 | |||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | MLCISCE Excess Return Index | 0.12 | Monthly | 106,000 | February-2024 | USD | 6,674,706 | – | 0 | 0 | |||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | MLCX Natural Gas Annual Excess Return Index | 0.25 | Monthly | 69,000 | June-2023 | USD | 6,008,078 | – | 0 | 0 | |||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | MLCX6CTE Excess Return Index | 0.18 | Monthly | 91,000 | February-2024 | USD | 8,407,471 | (2) | (2 | ) | 0 | ||||||||||||||||||||||||||||||
Royal Bank of Canada | Receive | RBC Commodity CT01 Excess Return Custom Index | 0.28 | Monthly | 10,000 | February-2024 | USD | 1,309,919 | – | 0 | 0 | |||||||||||||||||||||||||||||||
Royal Bank of Canada | Receive | RBC Commodity SB01 Excess Return Custom Index | 0.20 | Monthly | 48,000 | February-2024 | USD | 8,289,802 | – | 0 | 0 | |||||||||||||||||||||||||||||||
Royal Bank of Canada | Receive | RBC Commodity SO01 Excess Return Custom Index | 0.18 | Monthly | 73,000 | February-2024 | USD | 10,017,209 | – | 0 | 0 | |||||||||||||||||||||||||||||||
Subtotal-Appreciation |
| (2) | 2,589,486 | 2,589,488 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 | Invesco Balanced-Risk Allocation Fund |
Open Over-The-Counter Total Return Swap Agreements(a)(b)–(continued) | ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(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 Soybean Meal S2 Nearby Excess Return Index | 0.19 | % | Monthly | 9,200 | February-2024 | USD | 12,014,804 | $ – | $ | (786,793 | ) | $ | (786,793 | ) | ||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Barclays Bank PLC | Receive | Barclays Soybeans Seasonal Excess Return Index | 0.19 | Monthly | 24,800 | February-2024 | USD | 10,112,064 | – | (450,973 | ) | (450,973 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2 | 0.27 | Monthly | 76,000 | February-2024 | USD | 8,195,696 | – | (216,851 | ) | (216,851 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Seasonally Enhanced Cotton Commodity Index | 0.28 | Monthly | 51,000 | February-2024 | USD | 8,324,449 | – | (180,749 | ) | (180,749 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Soybean Meal 1 Excess Return Commodity Index | 0.14 | Monthly | 46,200 | February-2024 | USD | 11,512,236 | – | (572,108 | ) | (572,108 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Cargill, Inc. | Receive | Cargill Soybean Oil Index | 0.24 | Monthly | 50,500 | February-2024 | USD | 9,013,503 | – | (503,955 | ) | (503,955 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | Enhanced Strategy AB42 on the S&P GSCI Soybeans Excess Return | 0.14 | Monthly | 20,800 | February-2024 | USD | 9,954,934 | – | (289,434 | ) | (289,434 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | Enhanced Strategy BNZ0Y on the S&P GSCI Soybean Oil Excess Return | 0.25 | Monthly | 74,000 | February-2024 | USD | 10,016,196 | – | (631,035 | ) | (631,035 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | Goldman Sachs GSCI 44A Corn Index | 0.18 | Monthly | 20,000 | February-2024 | USD | 738,885 | – | (53,322 | ) | (53,322 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | J.P. Morgan Contag Beta Gas Oil Excess Return Index | 0.25 | Monthly | 95,300 | February-2024 | USD | 33,189,502 | – | (1,667,988 | ) | (1,667,988 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Macquarie Bank Ltd. | Receive | Macquarie Soybean Meal A Excess Return Index | 0.17 | Monthly | 25,500 | February-2024 | USD | 10,986,545 | – | (65,665 | ) | (65,665 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Morgan Stanley Capital Services LLC | Receive | S&P GSCI Aluminum Dynamic Index Excess Return | 0.30 | Monthly | 177,000 | July-2023 | USD | 19,681,462 | – | (171,478 | ) | (171,478 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Subtotal – Depreciation |
| – | (5,590,351 | ) | (5,590,351 | ) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Total – Total Return Swap Agreements |
| $(2) | $ | (3,000,865 | ) | $ | (3,000,863 | ) | ||||||||||||||||||||||||||
|
(a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $8,790,000. |
(b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
(c) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 | Invesco Balanced-Risk Allocation Fund |
Open Over-The-Counter Total Return Swap Agreements(a)(b) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(c) | Floating Rate Index | Payment Frequency | Number of Contracts | Maturity Date | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Equity Risk |
| |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | Invesco UK Broad Low Volatility Net Total Return Index | SONIA + 0.140% | Monthly | 300 | August-2023 | GBP | 1,552,104 | $– | $ | 6,876 | $ | 6,876 | |||||||||||||||||||
| ||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | Invesco UK Broad Price Momentum Net Total Return Index | SONIA + 0.150% | Monthly | 300 | August-2023 | GBP | 1,851,366 | – | 2,288 | 2,288 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | 1mo. EURIBOR - 0.880% | Monthly | 7,700 | September-2023 | EUR | 24,776,983 | – | 229,594 | 229,594 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | MSCI EMU Momentum Index | 1 mo. EURIBOR - 0.845% | Monthly | 4,600 | June-2023 | EUR | 24,661,626 | – | 149,370 | 149,370 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | MSCI Japan Quality Index | TONAR - 0.330% | Monthly | 190,000 | August-2023 | JPY | 518,876,700 | – | 26,343 | 26,343 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | MSCI Japan Quality Index | TONAR - 0.385% | Monthly | 1,800,000 | July-2023 | JPY | 4,915,674,000 | – | 249,565 | 249,565 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.620% | Monthly | 1,600 | August-2023 | USD | 3,014,688 | – | 11,488 | 11,488 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.620% | Monthly | 900 | August-2023 | USD | 1,695,762 | – | 6,462 | 6,462 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR - 0.470% | Monthly | 201,344 | August-2023 | JPY | 560,191,357 | – | 156,071 | 156,071 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR - 0.470% | Monthly | 67,114 | August-2023 | JPY | 186,728,598 | – | 52,023 | 52,023 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Japan Minimum Volatility Index | TONAR - 0.510% | Monthly | 2,111,542 | July-2023 | JPY | 5,874,858,845 | – | 1,636,757 | 1,636,757 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Japan Quality Index | TONAR - 0.340% | Monthly | 121,519 | August-2023 | JPY | 331,859,883 | – | 16,848 | 16,848 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Japan Quality Index | TONAR - 0.340% | Monthly | 81,012 | August-2023 | JPY | 221,238,101 | – | 11,232 | 11,232 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.650% | Monthly | 390 | May-2023 | USD | 2,522,048 | – | 2,190 | 2,190 | |||||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 | Invesco Balanced-Risk Allocation Fund |
Open Over-The-Counter Total Return Swap Agreements(a)(b)–(continued) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(c) | Floating Rate Index | Payment Frequency | Number of Contracts | Maturity | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.700% | Monthly | 9,904 | July-2023 | USD | 18,660,919 | $– | $ | 71,111 | $ | 71,111 | |||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | MSCI Japan Minimum Volatility Index | TONAR - 0.500% | Monthly | 270,000 | July-2023 | JPY | 751,210,200 | – | 209,290 | 209,290 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | MSCI Japan Minimum Volatility Index | TONAR - 0.540% | Monthly | 75,000 | July-2023 | JPY | 208,669,500 | – | 58,136 | 58,136 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | MSCI Japan Minimum Volatility Index | TONAR - 0.540% | Monthly | 25,000 | July-2023 | JPY | 69,556,500 | – | 19,379 | 19,379 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | MSCI Japan Quality Index | TONAR - 0.390% | Monthly | 557,469 | July-2023 | JPY | 1,522,408,816 | – | 77,292 | 77,292 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.560% | Monthly | 1,150 | May-2023 | USD | 7,436,808 | – | 6,459 | 6,459 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.630% | Monthly | 4,506 | August-2023 | USD | 29,139,356 | – | 25,306 | 25,306 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.630% | Monthly | 3,004 | August-2023 | USD | 19,426,237 | – | 16,871 | 16,871 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.630% | Monthly | 700 | August-2023 | USD | 4,526,753 | – | 3,931 | 3,931 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Low Volatility Total Return Index | SOFR + 0.380% | Monthly | 3,400 | May-2023 | USD | 21,438,054 | – | 107,245 | 107,245 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Low Volatility Net Total Return Index | SONIA + 0.180% | Monthly | 4,000 | May-2023 | GBP | 20,694,720 | – | 91,677 | 91,677 | |||||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 | Invesco Balanced-Risk Allocation Fund |
Open Over-The-Counter Total Return Swap Agreements(a)(b)–(continued) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(c) | Floating Rate Index | Payment Frequency | Number of Contracts | Maturity | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Low Volatility Net Total Return Index | SONIA + 0.180% | Monthly | 100 | May-2023 | GBP | 517,368 | $– | $ | 2,292 | $ | 2,292 | |||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Low Volatility Net Total Return Index | SONIA + 0.200% | Monthly | 200 | August-2023 | GBP | 1,005,164 | – | 41,748 | 41,748 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Price Momentum Net Total Return Index | SONIA + 0.180% | Monthly | 3,141 | May-2023 | GBP | 19,383,802 | – | 23,952 | 23,952 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Price Momentum Net Total Return Index | SONIA + 0.180% | Monthly | 259 | May-2023 | GBP | 1,598,346 | – | 1,975 | 1,975 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Price Momentum Net Total Return Index | SONIA + 0.200% | Monthly | 150 | August-2023 | GBP | 897,403 | – | 36,684 | 36,684 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Quality Net Total Return Index | SONIA + 0.200% | Monthly | 1,260 | October-2023 | GBP | 8,763,350 | – | 13,814 | 13,814 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco UK Broad Quality Net Total Return Index | SONIA + 0.210% | Monthly | 200 | June-2023 | GBP | 1,353,852 | – | 48,889 | 48,889 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco US Large Cap Broad Quality Total Return Index | SOFR + 0.380% | Monthly | 2,170 | May-2023 | USD | 20,657,966 | – | 391,227 | 391,227 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.560% | Monthly | 3,800 | May-2023 | USD | 7,159,884 | – | 27,284 | 27,284 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.600% | Monthly | 6,580 | August-2023 | USD | 12,397,904 | – | 47,244 | 47,244 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.630% | Monthly | 1,142 | August-2023 | USD | 2,151,734 | – | 8,200 | 8,200 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.630% | Monthly | 202 | August-2023 | USD | 380,604 | – | 1,450 | 1,450 | |||||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12 | Invesco Balanced-Risk Allocation Fund |
Open Over-The-Counter Total Return Swap Agreements(a)(b)–(continued) | ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(c) | Floating Rate Index | Payment Frequency | Number of Contracts | Maturity Date | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | MSCI Emerging Markets Minimum Volatility Index | | SOFR + 0.610% | | Monthly | 6,414 | September-2023 | USD | 12,085,131 | $– | $ | 46,053 | $ | 46,053 | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | MSCI Emerging Markets Minimum Volatility Index | | SOFR + 0.610% | | Monthly | 1,603 | September-2023 | USD | 3,020,341 | – | 11,510 | 11,510 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | MSCI Emerging Markets Minimum Volatility Index | | SOFR + 0.620% | | Monthly | 1,455 | May-2023 | USD | 2,741,482 | – | 10,447 | 10,447 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Subtotal – Appreciation | – | 3,956,573 | 3,956,573 | |||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | Invesco UK Broad Quality Net Total Return Index | | SONIA + 0.120% | | Monthly | 180 | June-2023 | GBP | 1,253,488 | – | (13 | ) | (13 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Large Cap Broad Price Momentum Total Return Index | | SOFR + 0.360% | | Monthly | 200 | May-2023 | USD | 1,473,730 | – | (15,464 | ) | (15,464 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Large Cap Broad Price Momentum Total Return Index | | SOFR + 0.360% | | Monthly | 2,650 | May-2023 | USD | 19,526,922 | – | (204,896 | ) | (204,896 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | Invesco UK Broad Quality Net Total Return Index | | SONIA + 0.179% | | Monthly | 1,320 | June-2023 | GBP | 9,192,242 | – | (93 | ) | (93 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | Invesco UK Broad Quality Net Total Return Index | | SONIA + 0.179% | | Monthly | 440 | June-2023 | GBP | 3,064,081 | – | (31 | ) | (31 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Merrill Lynch International | Receive | MSCI EMU Quality Index | | 1 Mo EURIBOR - 0.625% | | Monthly | 5,700 | July-2023 | EUR | 23,928,429 | – | (71,469 | ) | (71,469 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Subtotal – Depreciation |
| – | (291,966 | ) | (291,966 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Total – Total Return Swap Agreements |
| $– | $ | 3,664,607 | $ | 3,664,607 | ||||||||||||||||||||||||||||||||
|
(a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $8,790,000. |
(b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
(c) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13 | Invesco Balanced-Risk Allocation Fund |
Reference Entity Components | ||||||
| ||||||
Reference Entity | Underlying Components | Percentage | ||||
| ||||||
Canadian Imperial Bank of Commerce Gold Standard Roll Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Gold | 100% | |||||
| ||||||
Canadian Imperial Bank of Commerce Silver Commodity Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Silver | 100% | |||||
| ||||||
RBC Enhanced Copper 2x Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Copper | 100% | |||||
| ||||||
Cargill Coffee Front Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Coffee | 100% | |||||
| ||||||
Cargill Sugar Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Sugar | 100% | |||||
| ||||||
Macquarie Aluminium Dynamic Selection Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Aluminium | 100% | |||||
| ||||||
Merrill Lynch Gold Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Gold | 100% | |||||
| ||||||
MLCISCE Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Corn | 100% | |||||
| ||||||
MLCX Natural Gas Annual Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Natural Gas | 100% | |||||
| ||||||
MLCX6CTE Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Cotton | 100% | |||||
| ||||||
RBC Commodity CT01 Excess Return Custom Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Cotton | 100% | |||||
| ||||||
RBC Commodity SB01 Excess Return Custom Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Sugar | 100% | |||||
| ||||||
RBC Commodity SO01 Excess Return Custom Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Soybean | 100% | |||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14 | Invesco Balanced-Risk Allocation Fund |
Reference Entity Components–(continued) | ||||||
| ||||||
Reference Entity | Underlying Components | Percentage | ||||
| ||||||
Barclays Soybean Meal S2 Nearby Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Soybean Meal | 100% | |||||
| ||||||
Barclays Soybeans Seasonal Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Soybean | 100% | |||||
| ||||||
Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2 | ||||||
Long Futures Contracts | ||||||
| ||||||
Copper | 100% | |||||
| ||||||
Canadian Imperial Bank of Commerce Seasonally Enhanced Cotton Commodity Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Cotton | 100% | |||||
| ||||||
Canadian Imperial Bank of Commerce Soybean Meal 1 Excess Return Commodity Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Soybean Meal | 100% | |||||
| ||||||
Cargill Soybean Oil Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Soybean Oil | 100% | |||||
| ||||||
Enhanced Strategy AB42 on the S&P GSCI Soybeans Excess Return | ||||||
Long Futures Contracts | ||||||
| ||||||
Soybean Oil | 100% | |||||
| ||||||
Enhanced Strategy BNZ0Y on the S&P GSCI Soybean Oil Excess Return | ||||||
Long Futures Contracts | ||||||
| ||||||
Soybean Oil | 100% | |||||
| ||||||
Goldman Sachs GSCI 44A Corn Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Corn | 100% | |||||
| ||||||
J.P. Morgan Contag Beta Gas Oil Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Gas Oil | 100% | |||||
| ||||||
Macquarie Soybean Meal A Excess Return Index | ||||||
Long Futures Contracts | ||||||
| ||||||
Soybean Meal | 100% | |||||
| ||||||
S&P GSCI Aluminum Dynamic Index Excess Return | ||||||
Long Futures Contracts | ||||||
| ||||||
Aluminium | 100% | |||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15 | Invesco Balanced-Risk Allocation Fund |
Abbreviations: | ||
EMU | –European Economic and Monetary Union | |
EUR | –Euro | |
EURIBOR | –Euro Interbank Offered Rate | |
GBP | –British Pound Sterling | |
JPY | –Japanese Yen | |
SOFR | –Secured Overnight Financing Rate | |
SONIA | –Sterling Overnight Index Average | |
TONAR | –Tokyo Overnight Average Rate | |
USD | –U.S. Dollar |
Target Risk Contribution and Notional Asset Weights as of April 30, 2023
By asset class
Asset Class | Target Risk Contribution* | Notional Asset Weights** | ||||||
| ||||||||
Equities and Options | 42.65% | 62.79% | ||||||
| ||||||||
Fixed Income | 24.44 | 63.61 | ||||||
| ||||||||
Commodities | 32.91 | 28.21 | ||||||
| ||||||||
Total | 100.00 | 154.61 | ||||||
|
* | Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns. |
** | Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 585,472,114 | ||
| ||||
Investments in affiliated money market funds, at value | 893,512,294 | |||
| ||||
Other investments: | ||||
Variation margin receivable - futures contracts | �� | 10,349,000 | ||
| ||||
Swaps receivable - OTC | 1,860,976 | |||
| ||||
Unrealized appreciation on swap agreements - OTC | 6,546,061 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral - exchange-traded futures contracts | 71,695,000 | |||
| ||||
Cash collateral - OTC Derivatives | 8,790,000 | |||
| ||||
Foreign currencies, at value (Cost $36,301,041) | 36,235,666 | |||
| ||||
Receivable for: | ||||
Fund shares sold | 371,107 | |||
| ||||
Dividends | 3,063,811 | |||
| ||||
Interest | 4,760,822 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 457,616 | |||
| ||||
Other assets | 53,247 | |||
| ||||
Total assets | 1,623,167,714 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Premiums received on swap agreements - OTC | 2 | |||
| ||||
Swaps payable - OTC | 1,968,784 | |||
| ||||
Unrealized depreciation on swap agreements-OTC | 5,882,317 | |||
| ||||
Payable for: | ||||
Fund shares reacquired | 2,129,387 | |||
| ||||
Accrued fees to affiliates | 1,041,031 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 263 | |||
| ||||
Accrued other operating expenses | 75,942 | |||
| ||||
Trustee deferred compensation and retirement plans | 502,594 | |||
| ||||
Collateral with broker - OTC Derivatives | 10,000 | |||
| ||||
Total liabilities | 11,610,320 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,611,557,394 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 1,795,036,769 | ||
| ||||
Distributable earnings (loss) | (183,479,375 | ) | ||
| ||||
$ | 1,611,557,394 | |||
| ||||
Net Assets: |
| |||
Class A | $ | 806,979,530 | ||
| ||||
Class C | $ | 83,734,409 | ||
| ||||
Class R | $ | 17,802,443 | ||
| ||||
Class Y | $ | 656,111,462 | ||
| ||||
Class R5 | $ | 11,902,046 | ||
| ||||
Class R6 | $ | 35,027,504 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 95,376,428 | |||
| ||||
Class C | 10,692,515 | |||
| ||||
Class R | 2,164,225 | |||
| ||||
Class Y | 75,503,675 | |||
| ||||
Class R5 | 1,368,343 | |||
| ||||
Class R6 | 4,013,764 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 8.46 | ||
| ||||
Maximum offering price per share | $ | 8.95 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 7.83 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 8.23 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 8.69 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 8.70 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 8.73 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest | $ | 13,010,799 | ||
| ||||
Dividends from affiliated money market funds | 19,171,745 | |||
| ||||
Total investment income | 32,182,544 | |||
| ||||
Expenses: | ||||
Advisory fees | 7,699,994 | |||
| ||||
Administrative services fees | 126,442 | |||
| ||||
Custodian fees | 41,957 | |||
| ||||
Distribution fees: | ||||
Class A | 1,031,913 | |||
| ||||
Class C | 464,550 | |||
| ||||
Class R | 42,937 | |||
| ||||
Transfer agent fees – A, C, R and Y | 1,173,564 | |||
| ||||
Transfer agent fees – R5 | 6,094 | |||
| ||||
Transfer agent fees – R6 | 5,819 | |||
| ||||
Trustees’ and officers’ fees and benefits | 12,193 | |||
| ||||
Registration and filing fees | 70,904 | |||
| ||||
Reports to shareholders | 83,134 | |||
| ||||
Professional services fees | 50,822 | |||
| ||||
Other | 18,678 | |||
| ||||
Total expenses | 10,829,001 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (465,062 | ) | ||
| ||||
Net expenses | 10,363,939 | |||
| ||||
Net investment income | 21,818,605 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | 5,400,125 | |||
| ||||
Affiliated investment securities | 1,948 | |||
| ||||
Foreign currencies | 3,781,816 | |||
| ||||
Futures contracts | (59,723,754 | ) | ||
| ||||
Swap agreements | 47,979,369 | |||
| ||||
(2,560,496 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | (26,726,026 | ) | ||
| ||||
Affiliated investment securities | 3,967 | |||
| ||||
Foreign currencies | (919,266 | ) | ||
| ||||
Futures contracts | 66,173,310 | |||
| ||||
Swap agreements | (10,981,812 | ) | ||
| ||||
27,550,173 | ||||
| ||||
Net realized and unrealized gain | 24,989,677 | |||
| ||||
Net increase in net assets resulting from operations | $ | 46,808,282 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18 | Invesco Balanced-Risk Allocation Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, 2023 | October 31, 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 21,818,605 | $ | (8,703,278 | ) | |||
| ||||||||
Net realized gain (loss) | (2,560,496 | ) | (318,819,265 | ) | ||||
| ||||||||
Change in net unrealized appreciation | 27,550,173 | 19,452,689 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 46,808,282 | (308,069,854 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | – | (225,061,518 | ) | |||||
| ||||||||
Class C | – | (34,535,946 | ) | |||||
| ||||||||
Class R | – | (3,731,479 | ) | |||||
| ||||||||
Class Y | – | (220,623,925 | ) | |||||
| ||||||||
Class R5 | – | (3,417,238 | ) | |||||
| ||||||||
Class R6 | – | (9,736,632 | ) | |||||
| ||||||||
Total distributions from distributable earnings | – | (497,106,738 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (67,515,117 | ) | 127,096,042 | |||||
| ||||||||
Class C | (18,565,958 | ) | (13,473,598 | ) | ||||
| ||||||||
Class R | 1,113,113 | 4,973,468 | ||||||
| ||||||||
Class Y | (157,056,922 | ) | 85,280,229 | |||||
| ||||||||
Class R5 | (1,345,139 | ) | 1,621,069 | |||||
| ||||||||
Class R6 | (4,478,165 | ) | 5,266,488 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (247,848,188 | ) | 210,763,698 | |||||
| ||||||||
Net increase (decrease) in net assets | (201,039,906 | ) | (594,412,894 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,812,597,300 | 2,407,010,194 | ||||||
| ||||||||
End of period | $ | 1,611,557,394 | $ | 1,812,597,300 | ||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
19 | Invesco Balanced-Risk Allocation Fund |
Consolidated Financial Highlights
(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 04/30/23 | $ | 8.24 | $ | 0.10 | $ | 0.12 | $ | 0.22 | $ | — | $ | — | $ | — | $ | 8.46 | 2.67 | % | $ | 806,980 | 1.28 | %(d) | 1.34 | %(d) | 2.48 | %(d) | 16 | % | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.09 | (0.04 | ) | (1.29 | ) | (1.33 | ) | (1.43 | ) | (1.09 | ) | (2.52 | ) | 8.24 | (13.99 | ) | 852,412 | 1.31 | 1.35 | (0.47 | ) | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.12 | (0.15 | ) | 2.25 | 2.10 | (0.13 | ) | — | (0.13 | ) | 12.09 | 20.91 | 1,093,094 | 1.31 | 1.33 | (1.26 | ) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.33 | (0.05 | ) | 0.01 | (0.04 | ) | (0.67 | ) | (0.50 | ) | (1.17 | ) | 10.12 | (0.55 | ) | 831,513 | 1.24 | 1.30 | (0.53 | ) | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.21 | 0.10 | 1.02 | 1.12 | — | — | — | 11.33 | 10.97 | 968,345 | 1.24 | 1.29 | 0.95 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.66 | 0.07 | 0.10 | 0.17 | — | — | — | 7.83 | 2.22 | 83,734 | 2.03 | (d) | 2.09 | (d) | 1.73 | (d) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 11.36 | (0.11 | ) | (1.19 | ) | (1.30 | ) | (1.31 | ) | (1.09 | ) | (2.40 | ) | 7.66 | (14.57 | ) | 100,109 | 2.06 | 2.10 | (1.22 | ) | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 9.50 | (0.22 | ) | 2.12 | 1.90 | (0.04 | ) | — | (0.04 | ) | 11.36 | 20.04 | 167,794 | 2.06 | 2.08 | (2.01 | ) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.69 | (0.12 | ) | 0.00 | (0.12 | ) | (0.57 | ) | (0.50 | ) | (1.07 | ) | 9.50 | (1.36 | ) | 349,294 | 1.99 | 2.05 | (1.28 | ) | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 9.70 | 0.02 | 0.97 | 0.99 | — | — | — | 10.69 | 10.21 | 527,251 | 1.99 | 2.04 | 0.20 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 8.02 | 0.09 | 0.12 | 0.21 | — | — | — | 8.23 | 2.62 | 17,802 | 1.53 | (d) | 1.59 | (d) | 2.23 | (d) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 11.82 | (0.07 | ) | (1.25 | ) | (1.32 | ) | (1.39 | ) | (1.09 | ) | (2.48 | ) | 8.02 | (14.21 | ) | 16,270 | 1.56 | 1.60 | (0.72 | ) | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 9.90 | (0.17 | ) | 2.19 | 2.02 | (0.10 | ) | — | (0.10 | ) | 11.82 | 20.52 | 17,666 | 1.56 | 1.58 | (1.51 | ) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.10 | (0.08 | ) | 0.02 | (0.06 | ) | (0.64 | ) | (0.50 | ) | (1.14 | ) | 9.90 | (0.77 | ) | 15,202 | 1.49 | 1.55 | (0.78 | ) | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.02 | 0.07 | 1.01 | 1.08 | — | — | — | 11.10 | 10.78 | 18,343 | 1.49 | 1.54 | 0.70 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 8.46 | 0.12 | 0.11 | 0.23 | — | — | — | 8.69 | 2.72 | 656,111 | 1.03 | (d) | 1.09 | (d) | 2.73 | (d) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.34 | (0.02 | ) | (1.31 | ) | (1.33 | ) | (1.46 | ) | (1.09 | ) | (2.55 | ) | 8.46 | (13.66 | ) | 792,547 | 1.06 | 1.10 | (0.22 | ) | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.33 | (0.12 | ) | 2.29 | 2.17 | (0.16 | ) | — | (0.16 | ) | 12.34 | 21.18 | 1,062,698 | 1.06 | 1.08 | (1.01 | ) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.55 | (0.03 | ) | 0.01 | (0.02 | ) | (0.70 | ) | (0.50 | ) | (1.20 | ) | 10.33 | (0.34 | ) | 1,000,148 | 0.99 | 1.05 | (0.28 | ) | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.37 | 0.13 | 1.05 | 1.18 | — | — | — | 11.55 | 11.38 | 1,431,442 | 0.99 | 1.04 | 1.20 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 8.46 | 0.12 | 0.12 | 0.24 | — | — | — | 8.70 | 2.84 | 11,902 | 0.99 | (d) | 1.05 | (d) | 2.77 | (d) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.35 | (0.02 | ) | (1.31 | ) | (1.33 | ) | (1.47 | ) | (1.09 | ) | (2.56 | ) | 8.46 | (13.72 | ) | 12,874 | 1.04 | 1.08 | (0.20 | ) | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.34 | (0.12 | ) | 2.30 | 2.18 | (0.17 | ) | — | (0.17 | ) | 12.35 | 21.22 | 16,750 | 1.02 | 1.04 | (0.97 | ) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.56 | (0.03 | ) | 0.02 | (0.01 | ) | (0.71 | ) | (0.50 | ) | (1.21 | ) | 10.34 | (0.26 | ) | 15,707 | 0.94 | 1.00 | (0.23 | ) | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.38 | 0.14 | 1.04 | 1.18 | — | — | — | 11.56 | 11.37 | 45,497 | 0.92 | 0.97 | 1.27 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 8.49 | 0.12 | 0.12 | 0.24 | — | — | — | 8.73 | 2.83 | 35,028 | 0.92 | (d) | 0.98 | (d) | 2.84 | (d) | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.38 | (0.01 | ) | (1.32 | ) | (1.33 | ) | (1.47 | ) | (1.09 | ) | (2.56 | ) | 8.49 | (13.62 | ) | 38,385 | 0.97 | 1.01 | (0.13 | ) | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.37 | (0.11 | ) | 2.30 | 2.19 | (0.18 | ) | — | (0.18 | ) | 12.38 | 21.26 | 49,008 | 0.95 | 0.97 | (0.90 | ) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.59 | (0.02 | ) | 0.02 | 0.00 | (0.72 | ) | (0.50 | ) | (1.22 | ) | 10.37 | (0.21 | ) | 159,353 | 0.86 | 0.92 | (0.15 | ) | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.40 | 0.15 | 1.04 | 1.19 | — | — | — | 11.59 | 11.44 | 255,753 | 0.87 | 0.92 | 1.32 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
(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) | Annualized. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
20 | Invesco Balanced-Risk Allocation Fund |
Notes to Consolidated Financial Statements
April 30, 2023
(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 and the Invesco Cayman Commodity Fund I Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to the commodity markets primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives and other securities that may provide leveraged and non-leveraged exposure to commodities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to provide total return with a low to moderate correlation to traditional financial market indices.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the
21 | Invesco Balanced-Risk Allocation Fund |
inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | 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
22 | Invesco Balanced-Risk Allocation Fund |
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 exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
L. | Futures Contracts – The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, 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 or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities. |
M. | Put Options Purchased – The Fund may purchase put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on put options purchased are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased. |
N. | Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
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.
23 | Invesco Balanced-Risk Allocation Fund |
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market “on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
O. | LIBOR Transition Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates will no longer be published after June 2023. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that will replace LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Funds may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
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. | Other Risks – The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in commodity futures and swaps, commodity related exchange-traded funds and exchange-traded notes and commodity linked notes, some or all of which will be owned through the Subsidiary. The Subsidiary, unlike the Fund, may invest without limitation in 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. |
Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
In addition to risks associated with the underlying commodities, investments in commodity-linked notes may be subject to additional risks, such as non-payment of interest and loss of principal, counterparty risk, lack of a secondary market and risk of greater volatility than traditional equity and debt securities. The value of the commodity-linked notes the Fund buys may fluctuate significantly because the values of the underlying investments to which they are linked are themselves volatile. Additionally, certain commodity-linked notes employ “economic” leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease of the underlying commodity, commodity index, or other economic variable. Such economic leverage will increase the volatility of the value of these commodity-linked notes and the Fund to the extent it invests in such notes.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser less the amount paid by the Subsidiary to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $250 million | 0.950% | |||
| ||||
Next $250 million | 0.925% | |||
| ||||
Next $500 million | 0.900% | |||
| ||||
Next $1.5 billion | 0.875% | |||
| ||||
Next $2.5 billion | 0.850% | |||
| ||||
Next $2.5 billion | 0.825% | |||
| ||||
Next $2.5 billion | 0.800% | |||
| ||||
Over $10 billion | 0.775% | |||
|
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.90%.
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.
24 | Invesco Balanced-Risk Allocation 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 June 30, 2023, 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $453,561.
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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $40,348 in front-end sales commissions from the sale of Class A shares and $21 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
|
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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.
25 | Invesco Balanced-Risk Allocation Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||
| ||||||||||||||
Investments in Securities | ||||||||||||||
| ||||||||||||||
U.S. Treasury Securities | $ | – | $ | 530,671,836 | $– | $ | 530,671,836 | |||||||
| ||||||||||||||
Commodity-Linked Securities | – | 46,643,720 | – | 46,643,720 | ||||||||||
| ||||||||||||||
Money Market Funds | 893,512,294 | – | – | 893,512,294 | ||||||||||
| ||||||||||||||
Options Purchased | 8,156,558 | – | – | 8,156,558 | ||||||||||
| ||||||||||||||
Total Investments in Securities | 901,668,852 | 577,315,556 | – | 1,478,984,408 | ||||||||||
| ||||||||||||||
Other Investments - Assets* | ||||||||||||||
| ||||||||||||||
Futures Contracts | 26,469,242 | – | – | 26,469,242 | ||||||||||
| ||||||||||||||
Swap Agreements | – | 6,546,061 | – | 6,546,061 | ||||||||||
| ||||||||||||||
26,469,242 | 6,546,061 | – | 33,015,303 | |||||||||||
| ||||||||||||||
Other Investments - Liabilities* | ||||||||||||||
| ||||||||||||||
Futures Contracts | (9,974,945 | ) | – | – | (9,974,945 | ) | ||||||||
| ||||||||||||||
Swap Agreements | – | (5,882,317 | ) | – | (5,882,317 | ) | ||||||||
| ||||||||||||||
(9,974,945 | ) | (5,882,317 | ) | – | (15,857,262 | ) | ||||||||
| ||||||||||||||
Total Other Investments | 16,494,297 | 663,744 | – | 17,158,041 | ||||||||||
| ||||||||||||||
Total Investments | $ | 918,163,149 | $ | 577,979,300 | $– | $ | 1,496,142,449 | |||||||
|
* | Unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2023:
Value | ||||||||||||||||
Derivative Assets | Commodity Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | 17,250 | $ | 5,295,375 | $ | 21,156,617 | $ | 26,469,242 | ||||||||
| ||||||||||||||||
Unrealized appreciation on swap agreements – OTC | 2,589,488 | 3,956,573 | – | 6,546,061 | ||||||||||||
| ||||||||||||||||
Options purchased, at value – Exchange-Traded(b) | – | 8,156,558 | – | 8,156,558 | ||||||||||||
| ||||||||||||||||
Total Derivative Assets | 2,606,738 | 17,408,506 | 21,156,617 | 41,171,861 | ||||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | (17,250 | ) | (13,451,933 | ) | (21,156,617 | ) | (34,625,800 | ) | ||||||||
| ||||||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 2,589,488 | $ | 3,956,573 | $ | – | $ | 6,546,061 | ||||||||
| ||||||||||||||||
Value | ||||||||||||||||
Derivative Liabilities | Commodity Risk | Equity Risk | Total | |||||||||||||
| ||||||||||||||||
Unrealized depreciation on futures contracts – Exchange-Traded(a) | $ | (7,298,350 | ) | $ | (2,676,595 | ) | $ | (9,974,945 | ) | |||||||
| ||||||||||||||||
Unrealized depreciation on swap agreements – OTC | (5,590,351 | ) | (291,966 | ) | (5,882,317 | ) | ||||||||||
| ||||||||||||||||
Total Derivative Liabilities | (12,888,701 | ) | (2,968,561 | ) | (15,857,262 | ) | ||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | 7,298,350 | 2,676,595 | 9,974,945 | |||||||||||||
| ||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (5,590,351 | ) | $ | (291,966 | ) | $ | (5,882,317 | ) | |||||||
|
(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. |
26 | 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, 2023.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||
Counterparty | Swap Agreements | Swap Agreements | Net Value of Derivatives | Non-Cash | Cash | Net Amount(a) | ||||||||||||||||||
| ||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
BNP Paribas S.A. | $ 671,639 | $ (61,645 | ) | $ 609,994 | $– | $ (350,000 | ) | $ 259,994 | ||||||||||||||||
| ||||||||||||||||||||||||
Citibank, N.A. | 1,906,022 | (12,765 | ) | 1,893,257 | – | (1,140,000 | ) | 753,257 | ||||||||||||||||
| ||||||||||||||||||||||||
Goldman Sachs International | 441,877 | (58,190 | ) | 383,687 | – | (200,000 | ) | 183,687 | ||||||||||||||||
| ||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 896,940 | (705,667 | ) | 191,273 | – | – | 191,273 | |||||||||||||||||
| ||||||||||||||||||||||||
Merrill Lynch International | 68,009 | (177,935 | ) | (109,926 | ) | – | 109,926 | – | ||||||||||||||||
| ||||||||||||||||||||||||
Subtotal - Fund | 3,984,487 | (1,016,202 | ) | 2,968,285 | – | (1,580,074 | ) | 1,388,211 | ||||||||||||||||
| ||||||||||||||||||||||||
Subsidary | ||||||||||||||||||||||||
Barclays Bank PLC | – | (1,239,401 | ) | (1,239,401 | ) | – | 1,239,401 | – | ||||||||||||||||
| ||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | 90,640 | (973,128 | ) | (882,488 | ) | – | 882,488 | – | ||||||||||||||||
| ||||||||||||||||||||||||
Cargill, Inc. | 2,423,316 | (508,644 | ) | 1,914,672 | – | (1,570,000 | ) | 344,672 | ||||||||||||||||
| ||||||||||||||||||||||||
Goldman Sachs International | – | (976,142 | ) | (976,142 | ) | – | 976,142 | – | ||||||||||||||||
| ||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | – | (1,669,601 | ) | (1,669,601 | ) | – | 1,669,601 | – | ||||||||||||||||
| ||||||||||||||||||||||||
Macquarie Bank Ltd. | 75,532 | (66,482 | ) | 9,050 | – | – | 9,050 | |||||||||||||||||
| ||||||||||||||||||||||||
Merrill Lynch International | 74,827 | (805,571 | ) | (730,744 | ) | – | 730,744 | – | ||||||||||||||||
| ||||||||||||||||||||||||
Morgan Stanley Capital Services LLC | – | (173,774 | ) | (173,774 | ) | – | 173,774 | – | ||||||||||||||||
| ||||||||||||||||||||||||
Royal Bank of Canada | 1,758,235 | (422,156 | ) | 1,336,079 | – | (1,190,000 | ) | 146,079 | ||||||||||||||||
| ||||||||||||||||||||||||
Subtotal - Subsidary | 4,422,550 | (6,834,899 | ) | (2,412,349 | ) | – | 2,912,150 | 499,801 | ||||||||||||||||
| ||||||||||||||||||||||||
Total | $8,407,037 | $(7,851,101 | ) | $ 555,936 | $– | $ 1,332,076 | $1,880,012 | |||||||||||||||||
|
(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, 2023
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 | $ | (10,700,525 | ) | $ | (5,396,149 | ) | $ | (43,627,080 | ) | $ | (59,723,754 | ) | ||||
| ||||||||||||||||
Options purchased(a) | – | (3,527,531 | ) | – | (3,527,531 | ) | ||||||||||
| ||||||||||||||||
Swap agreements | – | 47,728,383 | 250,986 | 47,979,369 | ||||||||||||
| ||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||
Futures contracts | (10,341,058 | ) | 11,267,707 | 65,246,661 | 66,173,310 | |||||||||||
| ||||||||||||||||
Options purchased(a) | – | (18,855,760 | ) | – | (18,855,760 | ) | ||||||||||
| ||||||||||||||||
Swap agreements | (2,882,761 | ) | (8,099,051 | ) | – | (10,981,812 | ) | |||||||||
| ||||||||||||||||
Total | $ | (23,924,344 | ) | $ | 23,117,599 | $ | 21,870,567 | $ | 21,063,822 | |||||||
|
(a) | Options purchased, at value as reported in the Consolidated Schedule of Investments. |
The table below summarizes the average notional value of derivatives held during the period.
Futures Contracts | Index Options Purchased |
| Swap Agreements | |||||||||||||||||
| ||||||||||||||||||||
Average notional value | $ | 1,358,768,657 | $ | 287,523,254 | $ | 700,571,436 | ||||||||||||||
| ||||||||||||||||||||
Average contracts | – | 3,072 | – | |||||||||||||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $11,501.
27 | Invesco Balanced-Risk Allocation Fund |
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $ | 115,328,279 | $ | 110,873,811 | $ | 226,202,090 | ||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $117,669,805 and $71,889,075, 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 | $ | 53,683,052 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (29,655,634 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 24,027,418 | ||
|
Cost of investments for tax purposes is $1,472,115,029.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 2,454,737 | $ | 20,657,398 | 7,675,989 | $ | 73,144,192 | ||||||||||
| ||||||||||||||||
Class C | 722,041 | 5,613,872 | 1,764,890 | 15,574,741 | ||||||||||||
| ||||||||||||||||
Class R | 299,884 | 2,453,624 | 512,017 | 4,634,315 | ||||||||||||
| ||||||||||||||||
Class Y | 4,630,535 | 39,984,555 | 23,303,511 | 228,108,540 | ||||||||||||
| ||||||||||||||||
Class R5 | 42,327 | 365,328 | 98,801 | 961,133 | ||||||||||||
| ||||||||||||||||
Class R6 | 883,771 | 7,575,921 | 862,016 | 8,179,105 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | - | - | 21,402,812 | 205,895,058 | ||||||||||||
| ||||||||||||||||
Class C | - | - | 3,455,498 | 31,099,481 | ||||||||||||
| ||||||||||||||||
Class R | - | - | 393,370 | 3,693,741 | ||||||||||||
| ||||||||||||||||
Class Y | - | - | 17,644,226 | 173,795,631 | ||||||||||||
| ||||||||||||||||
Class R5 | - | - | 330,794 | 3,258,322 | ||||||||||||
| ||||||||||||||||
Class R6 | - | - | 854,002 | 8,437,540 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 1,499,274 | 12,603,700 | 3,448,280 | 31,918,195 | ||||||||||||
| ||||||||||||||||
Class C | (1,617,760 | ) | (12,603,700 | ) | (3,697,763 | ) | (31,918,195 | ) | ||||||||
|
28 | Invesco Balanced-Risk Allocation Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (11,993,847 | ) | $ | (100,776,215 | ) | (19,509,831 | ) | $ | (183,861,403 | ) | ||||||
| ||||||||||||||||
Class C | (1,485,524 | ) | (11,576,130 | ) | (3,218,052 | ) | (28,229,625 | ) | ||||||||
| ||||||||||||||||
Class R | (163,507 | ) | (1,340,511 | ) | (371,925 | ) | (3,354,588 | ) | ||||||||
| ||||||||||||||||
Class Y | (22,863,463 | ) | (197,041,477 | ) | (33,306,794 | ) | (316,623,942 | ) | ||||||||
| ||||||||||||||||
Class R5 | (195,500 | ) | (1,710,467 | ) | (263,981 | ) | (2,598,386 | ) | ||||||||
| ||||||||||||||||
Class R6 | (1,392,809 | ) | (12,054,086 | ) | (1,150,430 | ) | (11,350,157 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (29,179,841 | ) | $ | (247,848,188 | ) | 20,227,430 | $ | 210,763,698 | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 57% 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. |
29 | 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 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||||||||||||
Class A | $1,000.00 | $1,026.70 | $6.43 | $1,018.45 | $6.41 | 1.28% | ||||||||||||||||
Class C | 1,000.00 | 1,022.20 | 10.18 | 1,014.73 | 10.14 | 2.03 | ||||||||||||||||
Class R | 1,000.00 | 1,026.20 | 7.69 | 1,017.21 | 7.65 | 1.53 | ||||||||||||||||
Class Y | 1,000.00 | 1,028.40 | 5.18 | 1,019.69 | 5.16 | 1.03 | ||||||||||||||||
Class R5 | 1,000.00 | 1,028.40 | 4.98 | 1,019.89 | 4.96 | 0.99 | ||||||||||||||||
Class R6 | 1,000.00 | 1,028.30 | 4.63 | 1,020.23 | 4.61 | 0.92 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
30 | 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/ corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | IBRA-SAR-1 |
| ||
Semiannual Report to Shareholders | April 30, 2023 | |
Invesco Balanced-Risk Commodity Strategy Fund | ||
Nasdaq: | ||
A: BRCAX ∎ C: BRCCX ∎ R: BRCRX ∎ Y: BRCYX ∎ R5: BRCNX ∎ R6: IBRFX |
2 | ||||
4 | ||||
5 | ||||
11 | ||||
14 | ||||
15 | ||||
23 |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
|
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | -1.27 | % | ||
Class C Shares | -1.44 | |||
Class R Shares | -1.26 | |||
Class Y Shares | -0.99 | |||
Class R5 Shares | -0.98 | |||
Class R6 Shares | -1.08 | |||
Bloomberg Commodity Indexq (Broad Market/Style-Specific Index)
| -5.86 | |||
Source(s): qRIMES Technologies Corp.
| ||||
The Bloomberg 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 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 visiting invesco.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, visit blog.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 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (11/30/10) | -1.42 | % | ||
10 Years | -1.08 | |||
5 Years | 2.64 | |||
1 Year | -16.43 | |||
Class C Shares | ||||
Inception (11/30/10) | -1.45 | % | ||
10 Years | -1.10 | |||
5 Years | 3.06 | |||
1 Year | -12.94 | |||
Class R Shares | ||||
Inception (11/30/10) | -1.18 | % | ||
10 Years | -0.75 | |||
5 Years | 3.59 | |||
1 Year | -11.83 | |||
Class Y Shares | ||||
Inception (11/30/10) | -0.70 | % | ||
10 Years | -0.26 | |||
5 Years | 4.08 | |||
1 Year | -11.38 | |||
Class R5 Shares | ||||
Inception (11/30/10) | -0.65 | % | ||
10 Years | -0.20 | |||
5 Years | 4.10 | |||
1 Year | -11.33 | |||
Class R6 Shares | ||||
Inception (9/24/12) | -1.69 | % | ||
10 Years | -0.18 | |||
5 Years | 4.11 | |||
1 Year | -11.40 |
The performance data quoted represent past performance and cannot guarantee 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.
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 Balanced-Risk Commodity Strategy Fund
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 Invesco Balanced-Risk Commodity Strategy Fund
Consolidated Schedule of Investments
April 30, 2023
(Unaudited)
Principal | ||||||||||||||||
Interest | Maturity | Amount | ||||||||||||||
Rate | Date | (000) | Value | |||||||||||||
U.S. Treasury Securities–32.30% | ||||||||||||||||
U.S. Treasury Bills–10.78%(a) | ||||||||||||||||
U.S. Treasury Bills | 4.62 | % | 05/25/2023 | $ | 44,400 | $ | 44,266,326 | |||||||||
U.S. Treasury Bills | 4.58 | % | 06/08/2023 | 52,300 | 52,049,643 | |||||||||||
96,315,969 | ||||||||||||||||
U.S. Treasury Floating Rate Notes–21.52%(b) | ||||||||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate - 0.02%) | 5.17 | % | 01/31/2024 | 58,700 | 58,711,738 | |||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate - 0.08%) | 5.11 | % | 04/30/2024 | 74,500 | 74,448,008 | |||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.04%) | 5.22 | % | 07/31/2024 | 59,200 | 59,208,999 | |||||||||||
192,368,745 | ||||||||||||||||
Total U.S. Treasury Securities (Cost $288,715,935) | 288,684,714 | |||||||||||||||
Expiration | ||||||||||||||||
Date | ||||||||||||||||
Commodity-Linked Securities–11.80% | ||||||||||||||||
Barclays Bank PLC (United Kingdom), U.S. Federal Funds Effective Rate minus 0.06% (linked to the Barclays Copper Roll Yield Total Return Index, multiplied by 2)(c) | 08/01/2023 | 14,730 | 16,927,011 | |||||||||||||
Barclays Bank PLC (United Kingdom), U.S. Federal Funds Effective Rate minus 0.06% (linked to the Barclays Gold Nearby Total Return Index, multiplied by 2.5)(c) | 01/08/2024 | 14,700 | 18,442,360 | |||||||||||||
Citigroup, Inc., 1 month SOFR plus 0.04% (linked to the S&P GSCI Gold Excess Return Index, multiplied by 2.5)(c) | 11/30/2023 | 33,500 | 48,351,686 | |||||||||||||
Societe Generale S.A. (France), U.S. Federal Funds Effective Rate minus 0.02% (linked to the | ||||||||||||||||
Societe Generale Soybean Meal Index, multiplied by 2)(c) | 01/31/2024 | 22,000 | 21,731,802 | |||||||||||||
Total Commodity-Linked Securities (Cost $84,930,000) | 105,452,859 | |||||||||||||||
Shares | ||||||||||||||||
Money Market Funds–48.71% | ||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e) |
| 100,950,529 | 100,950,529 | |||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(d)(e) | 71,122,173 | 71,143,509 | ||||||||||||||
Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio (Ireland), Agency Class, 4.93%(d)(e) | 147,800,471 | 147,800,471 | ||||||||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(d)(e) | 115,372,033 | 115,372,033 | ||||||||||||||
Total Money Market Funds (Cost $435,232,384) | 435,266,542 | |||||||||||||||
TOTAL INVESTMENTS IN SECURITIES–92.81% (Cost $808,878,319) | 829,404,115 | |||||||||||||||
OTHER ASSETS LESS LIABILITIES–7.19% | 64,234,531 | |||||||||||||||
NET ASSETS–100.00% | $ | 893,638,646 |
Investment Abbreviations: |
SOFR - Secured Overnight Financing Rate |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 Invesco Balanced-Risk Commodity Strategy Fund
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, 2023. |
(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, 2023 was $105,452,859, which represented 11.80% of the Fund’s Net Assets. |
(d) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $161,006,414 | $100,432,105 | $ (160,487,990) | $ - | $ - | $100,950,529 | $ 2,350,470 | |||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 114,029,407 | 71,737,217 | (114,634,278) | (11,410) | 22,573 | 71,143,509 | 1,716,030 | |||||||||||||||||||||
Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Agency Class | - | 493,892,247 | (346,091,776) | - | - | 147,800,471 | 1,496,077 | |||||||||||||||||||||
Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Institutional Class | 209,004,299 | 195,987,965 | (404,992,264) | - | - | - | 1,484,240 | |||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 184,007,331 | 114,779,548 | (183,414,846) | - | - | 115,372,033 | 2,687,137 | |||||||||||||||||||||
Total | $668,047,451 | $976,829,082 | $(1,209,621,154) | $(11,410) | $22,573 | $435,266,542 | $9,733,954 |
(e) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
Open Futures Contracts(a) | ||||||||||||||||||||
| ||||||||||||||||||||
Unrealized | ||||||||||||||||||||
Number of | Expiration | Notional | Appreciation | |||||||||||||||||
Long Futures Contracts | Contracts | Month | Value | Value | (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Coffee ’C’ | 206 | July-2023 | $ | 14,364,638 | $ | 1,336,939 | $ | 1,336,939 | ||||||||||||
| ||||||||||||||||||||
Corn | 482 | July-2023 | 14,098,500 | (1,900,630 | ) | (1,900,630 | ) | |||||||||||||
| ||||||||||||||||||||
Soybean | 788 | July-2023 | 55,918,450 | (1,425,642 | ) | (1,425,642 | ) | |||||||||||||
| ||||||||||||||||||||
Wheat | 16 | July-2023 | 507,000 | (105,089 | ) | (105,089 | ) | |||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | (2,094,422 | ) | $ | (2,094,422 | ) | ||||||||||||||
|
(a) | Futures contracts collateralized by $51,865,000 cash held with Goldman Sachs International, the futures commission merchant. |
Open Over-The-Counter Total Return Swap Agreements(a)(b) | ||||||||||||||||||||||||||||||||||||||
Upfront | ||||||||||||||||||||||||||||||||||||||
Payments | Unrealized | |||||||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(c) | Fixed Rate | Payment Frequency | Number of Contracts | Maturity Date | Notional Value | Paid (Received) | Value | Appreciation (Depreciation) | ||||||||||||||||||||||||||||
Commodity Risk |
| |||||||||||||||||||||||||||||||||||||
Barclays Bank PLC | Receive | Barclays Live Cattle Roll Yield Excess Return Index | 0.47 | % | Monthly | 12,000 | April-2024 | USD | 1,371,340 | $– | $ | 35,344 | $ | 35,344 | ||||||||||||||||||||||||
Cargill, Inc. | Receive | Cargill Single Commodity Index | 0.41 | Monthly | 144,000 | June-2023 | USD | 45,376,589 | – | 5,875,070 | 5,875,070 | |||||||||||||||||||||||||||
Goldman Sachs International | Receive | S&P GSCI Sugar Excess Return Index | 0.37 | Monthly | 12,800 | December-2023 | USD | 3,981,608 | – | 517,504 | 517,504 | |||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Pay | S&P GSCI Gold Index Excess Return | 0.08 | Monthly | 77,000 | December-2023 | USD | 10,865,947 | – | 3,796 | 3,796 | |||||||||||||||||||||||||||
Macquarie Bank Ltd. | Receive | Macquarie Aluminium Dynamic Selection Index | 0.30 | Monthly | 1,204,500 | February-2024 | USD | 66,145,840 | – | 494,447 | 494,447 |
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) | ||||||||||||||||||||||||||||
Macquarie Bank Ltd. | Receive | Macquarie Aluminium Dynamic Selection Index | 0.34 | % | Monthly | 31,100 | February-2024 | USD | 10,224,713 | $– | $ | 174,956 | $ | 174,956 | ||||||||||||||||||||||||
Macquarie Bank Ltd. | Receive | Macquarie Single Commodity Silver type A Excess Return Index | 0.16 | Monthly | 169,700 | February-2024 | USD | 42,413,138 | – | 233,304 | 233,304 | |||||||||||||||||||||||||||
Merrill Lynch International | Pay | Merrill Lynch Gold Excess Return Index | 0.01 | Monthly | 91,000 | April-2024 | USD | 20,118,353 | – | 0 | 0 | |||||||||||||||||||||||||||
Merrill Lynch International | Pay | MLCIAPLH Excess Return Index | 0.00 | Monthly | 3,065,000 | February-2024 | USD | 19,799,287 | – | 0 | 0 | |||||||||||||||||||||||||||
Merrill Lynch International | Receive | Merrill Lynch Soybean Meal Index | 0.30 | Monthly | 1,750 | January-2024 | USD | 1,552,963 | – | 0 | 0 | |||||||||||||||||||||||||||
Merrill Lynch International | Receive | MLCX Dynamic Enhanced Copper Excess Return Index | 0.25 | Monthly | 50,550 | January-2024 | USD | 40,955,691 | – | 0 | 0 | |||||||||||||||||||||||||||
Merrill Lynch International | Receive | MLCX Natural Gas Annual Excess Return Index | 0.25 | Monthly | 210,500 | June-2023 | USD | 18,328,993 | – | 0 | 0 | |||||||||||||||||||||||||||
Merrill Lynch International | Receive | MLCX1XBE Excess Return Index | 0.10 | Monthly | 103,900 | September-2023 | USD | 41,278,701 | – | 0 | 0 | |||||||||||||||||||||||||||
Morgan Stanley Capital Services LLC | Pay | Morgan Stanley MSCY2KW0 Index | 0.05 | Monthly | 32,200 | March-2024 | USD | 9,101,510 | – | 1,040,991 | 1,040,991 | |||||||||||||||||||||||||||
Royal Bank of Canada | Receive | RBC Enhanced Brent Crude Oil 01 Excess Return Index | 0.35 | Monthly | 70,600 | December-2023 | USD | 32,568,846 | – | 0 | 0 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Subtotal–Appreciation | – | 8,375,412 | 8,375,412 | |||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Commodity Risk |
| |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Barclays Bank PLC | Receive | Barclays Brent Crude Roll Yield Index | 0.35 | Monthly | 3,600 | February-2024 | USD | 1,942,785 | – | (88,319 | ) | (88,319 | ) | |||||||||||||||||||||||||
Barclays Bank PLC | Receive | Barclays Soybeans Seasonal Excess Return Index | 0.19 | Monthly | 16,000 | February-2024 | USD | 6,523,912 | – | (290,950 | ) | (290,950 | ) | |||||||||||||||||||||||||
Barclays Bank PLC | Receive | Barclays WTI Crude Roll Yield Excess Return Index | 0.35 | Monthly | 75,500 | March-2024 | USD | 30,373,899 | – | (1,384,829 | ) | (1,384,829 | ) | |||||||||||||||||||||||||
BNP Paribas S.A. | Receive | BNP Paribas Commodity Daily Dynamic Curve CO Index | 0.25 | Monthly | 40,100 | August-2023 | USD | 22,188,180 | – | (804,795 | ) | (804,795 | ) | |||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | Receive | Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2 | 0.27 | Monthly | 182,000 | February-2024 | USD | 19,626,534 | – | (519,301 | ) | (519,301 | ) | |||||||||||||||||||||||||
Goldman Sachs International | Receive | Enhanced Strategy AB31 on the S&P GSCI Cotton Excess Return Index | 0.45 | Monthly | 562,000 | December-2023 | USD | 31,943,945 | – | (541,819 | ) | (541,819 | ) |
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) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Goldman Sachs International | Receive | S&P GSCI Soybean Meal Excess Return Index | 0.42 | % | Monthly | 14,800 | December-2023 | USD | 20,664,914 | $– | $ | (718,984) | $ | (718,984) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | J.P. Morgan Contag Beta Gas Oil Excess Return Index | 0.25 | Monthly | 191,400 | February-2024 | USD | 66,657,615 | – | (3,349,978 | ) | (3,349,978 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Macquarie Bank Ltd. | Pay | Macquarie Single Commodity Nickel type A Excess Return Index | 0.17 | Monthly | 98,300 | March-2024 | USD | 14,307,024 | – | (544,081 | ) | (544,081 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Macquarie Bank Ltd. | Pay | Macquarie Single Commodity Zinc type A Excess Return Index | 0.12 | Monthly | 6,300 | April-2024 | USD | 1,083,196 | – | (19,691 | ) | (19,691 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Morgan Stanley Capital Services LLC | Receive | Morgan Stanley MSCY2XB0 Index | 0.15 | Monthly | 43,400 | September-2023 | USD | 36,372,012 | – | (2,618,352 | ) | (2,618,352 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Morgan Stanley Capital Services LLC | Receive | MS Soybean Oil Dynamic Roll | 0.30 | Monthly | 152,700 | December-2023 | USD | 36,750,782 | – | (2,004,462 | ) | (2,004,462 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
UBS AG | Receive | UBS Modified Roll Select Heating Oil Strategy | 0.30 | Monthly | 564,000 | December-2023 | USD | 65,800,809 | – | (6,602,049 | ) | (6,602,049 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Subtotal – Depreciation | – | (19,487,610 | ) | (19,487,610 | ) | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Total – Total Return Swap Agreements |
| $ – | $ | (11,112,198 | ) | $ | (11,112,198 | ) | ||||||||||||||||||||||||||||||
|
(a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $26,740,000. |
(b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
(c) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
Reference Entity Components | ||||||
| ||||||
Reference Entity | Underlying Components | Percentage | ||||
| ||||||
Barclays Live Cattle Roll Yield Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Live Cattle | 100% | |||||
| ||||||
Cargill Single Commodity Index
| Long Futures Contracts | |||||
| ||||||
Sugar | 100% | |||||
| ||||||
S&P GSCI Sugar Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Sugar | 100% | |||||
| ||||||
S&P GSCI Gold Index Excess Return
| Long Futures Contracts | |||||
| ||||||
Gold | 100% | |||||
| ||||||
Macquarie Aluminum Dynamic Selection Index
| Long Futures Contracts | |||||
| ||||||
Aluminum | 100% | |||||
| ||||||
Macquarie Single Commodity Silver type A Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Silver | 100% | |||||
|
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 | ||||
| ||||||
Merrill Lynch Gold Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Gold | 100% | |||||
| ||||||
MLCIAPLH Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Lean Hogs | 100% | |||||
| ||||||
Merrill Lynch Soybean Meal Index
| Long Futures Contracts | |||||
| ||||||
Soybean Meal | 100% | |||||
| ||||||
MLCX Dynamic Enhanced Copper Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Copper | 100% | |||||
| ||||||
MLCX Natural Gas Annual Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Natural Gas | 100% | |||||
| ||||||
MLCX1XBE Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Gasoline Unleaded | 100% | |||||
| ||||||
Morgan Stanley MSCY2KW0 Index
| Long Futures Contracts | |||||
| ||||||
Kansas Wheat | 100% | |||||
| ||||||
RBC Enhanced Brent Crude Oil 01 Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Brent Crude | 100% | |||||
| ||||||
Barclays Brent Crude Roll Yield Index
| Long Futures Contracts | |||||
| ||||||
Brent Crude | 100% | |||||
| ||||||
Barclays Soybeans Seasonal Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Soybeans | 100% | |||||
| ||||||
Barclays WTI Crude Roll Yield Excess Return Index
| Long Futures Contracts | |||||
| ||||||
WTI Crude | 100% | |||||
| ||||||
BNP Paribas Commodity Daily Dynamic Curve CO Index
| Long Futures Contracts | |||||
| ||||||
Brent Crude | 100% | |||||
| ||||||
Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2
| Long Futures Contracts | |||||
| ||||||
Copper | 100% | |||||
| ||||||
Enhanced Strategy AB31 on the S&P GSCI Cotton Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Cotton | 100% | |||||
|
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 | ||||
| ||||||
S&P GSCI Soybean Meal Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Soybean Meal | 100% | |||||
| ||||||
J.P. Morgan Contag Beta Gas Oil Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Gas Oil | 100% | |||||
| ||||||
Macquarie Single Commodity Nickel type A Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Nickel | 100% | |||||
| ||||||
Macquarie Single Commodity Zinc type A Excess Return Index
| Long Futures Contracts | |||||
| ||||||
Zinc | 100% | |||||
| ||||||
Morgan Stanley MSCY2XB0 Index
| Long Futures Contracts | |||||
| ||||||
Gasoline RBOB | 100% | |||||
| ||||||
MS Soybean Oil Dynamic Roll Index
| Long Futures Contracts | |||||
| ||||||
Soybean Oil | 100% | |||||
| ||||||
UBS Modified Roll Select Heating Oil Strategy
| Long Futures Contracts | |||||
| ||||||
Heating Oil | 100% | |||||
|
Target Risk Contribution and Notional Asset Weights
By asset class
Target Risk | Notional Asset | |||||||
Asset Class | Contribution* | Weights** | ||||||
Agriculture | 23.89 | % | 28.68 | % | ||||
Energy | 54.54 | 34.23 | ||||||
Industrial Metals | 13.58 | 16.34 | ||||||
Precious Metals | 7.99 | 16.33 | ||||||
Total | 100.00 | 95.58 |
* | Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns. |
** | Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Contributions. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage. |
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, 2023
(Unaudited)
Assets: | ||
Investments in unaffiliated securities, at value (Cost $ 373,645,935) | $394,137,573 | |
Investments in affiliated money market funds, at value (Cost $ 435,232,384) | 435,266,542 | |
Other investments: | ||
Variation margin receivable – futures contracts | 524,838 | |
Swaps receivable – OTC | 549,422 | |
Unrealized appreciation on swap agreements – OTC | 8,375,412 | |
Deposits with brokers: | ||
Cash collateral – exchange-traded futures contracts | 51,865,000 | |
Cash collateral – OTC Derivatives | 26,740,000 | |
Receivable for: | ||
Fund shares sold | 843,866 | |
Dividends | 1,198,119 | |
Interest | 2,313,406 | |
Investment for trustee deferred compensation and retirement plans | 61,686 | |
Other assets | 80,133 | |
Total assets | 921,955,997 | |
Liabilities: | ||
Other investments: | ||
Swaps payable – OTC | 3,762,602 | |
Unrealized depreciation on swap agreements–OTC | 19,487,610 | |
Payable for: | ||
Fund shares reacquired | 4,263,051 | |
Accrued fees to affiliates | 552,182 | |
Accrued trustees’ and officers’ fees and benefits | 117 | |
Accrued other operating expenses | 142,366 | |
Trustee deferred compensation and retirement plans | 109,423 | |
Total liabilities | 28,317,351 | |
Net assets applicable to shares outstanding | $893,638,646 |
Net assets consist of: | ||||
Shares of beneficial interest | $ | 907,944,240 | ||
| ||||
Distributable earnings (loss) | (14,305,594 | ) | ||
| ||||
$ | 893,638,646 | |||
| ||||
Net Assets: | ||||
Class A | $ | 80,246,714 | ||
| ||||
Class C | $ | 23,314,727 | ||
| ||||
Class R | $ | 12,128,336 | ||
| ||||
Class Y | $ | 415,274,209 | ||
| ||||
Class R5 | $ | 148,437,968 | ||
| ||||
Class R6 | $ | 214,236,692 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 12,301,802 | |||
| ||||
Class C | 3,928,121 | |||
| ||||
Class R | 1,909,412 | |||
| ||||
Class Y | 61,635,410 | |||
| ||||
Class R5 | 21,906,792 | |||
| ||||
Class R6 | 31,542,879 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 6.52 | ||
| ||||
Maximum offering price per share | $ | 6.90 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 5.94 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 6.35 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 6.74 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 6.78 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 6.79 | ||
|
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, 2023
(Unaudited)
Investment income: | ||||
Interest | $ | 9,201,856 | ||
| ||||
Dividends from affiliated money market funds | 9,733,954 | |||
| ||||
Total investment income | 18,935,810 | |||
| ||||
Expenses: | ||||
Advisory fees | 5,005,244 | |||
| ||||
Administrative services fees | 74,404 | |||
| ||||
Custodian fees | 42,958 | |||
| ||||
Distribution fees: | ||||
Class A | 107,074 | |||
| ||||
Class C | 126,820 | |||
| ||||
Class R | 29,751 | |||
| ||||
Transfer agent fees – A, C, R and Y | 560,437 | |||
| ||||
Transfer agent fees – R5 | 77,238 | |||
| ||||
Transfer agent fees – R6 | 36,922 | |||
| ||||
Trustees’ and officers’ fees and benefits | 11,288 | |||
| ||||
Registration and filing fees | 68,331 | |||
| ||||
Reports to shareholders | 142,027 | |||
| ||||
Professional services fees | 45,997 | |||
| ||||
Other | 15,724 | |||
| ||||
Total expenses | 6,344,215 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (808,978 | ) | ||
| ||||
Net expenses | 5,535,237 | |||
| ||||
Net investment income | 13,400,573 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | 10,912,641 | |||
| ||||
Affiliated investment securities | 22,573 | |||
| ||||
Futures contracts | (17,454,062 | ) | ||
| ||||
Swap agreements | (27,614,606 | ) | ||
| ||||
(34,133,454 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 19,416,687 | |||
| ||||
Affiliated investment securities | (11,410 | ) | ||
| ||||
Futures contracts | 10,188,040 | |||
| ||||
Swap agreements | (14,389,295 | ) | ||
| ||||
15,204,022 | ||||
| ||||
Net realized and unrealized gain (loss) | (18,929,432 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (5,528,859 | ) | |
|
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, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 13,400,573 | $ | (2,598,294 | ) | |||
| ||||||||
Net realized gain (loss) | (34,133,454 | ) | 152,957,775 | |||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 15,204,022 | (62,513,117 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (5,528,859 | ) | 87,846,364 | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (8,230,327 | ) | (6,880,799 | ) | ||||
| ||||||||
Class C | (2,429,389 | ) | (2,650,024 | ) | ||||
| ||||||||
Class R | (1,057,391 | ) | (435,805 | ) | ||||
| ||||||||
Class Y | (46,238,654 | ) | (128,443,740 | ) | ||||
| ||||||||
Class R5 | (14,029,824 | ) | (22,431,534 | ) | ||||
| ||||||||
Class R6 | (22,438,033 | ) | (53,113,623 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (94,423,618 | ) | (213,955,525 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 2,549,713 | 49,014,032 | ||||||
| ||||||||
Class C | (241,338 | ) | 11,850,576 | |||||
| ||||||||
Class R | 1,624,818 | 9,747,043 | ||||||
| ||||||||
Class Y | (50,835,504 | ) | (319,309,638 | ) | ||||
| ||||||||
Class R5 | 9,157,441 | 9,937,358 | ||||||
| ||||||||
Class R6 | (147,745,634 | ) | (48,603,744 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (185,490,504 | ) | (287,364,373 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (285,442,981 | ) | (413,473,534 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,179,081,627 | 1,592,555,161 | ||||||
| ||||||||
End of period | $ | 893,638,646 | $ | 1,179,081,627 | ||||
|
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
(Unaudited)
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||
expenses | expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains | to average | to average net | Ratio of net | |||||||||||||||||||||||||||||||||||||||||||||||||||
(losses) | net assets | assets without | investment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset | Net | on securities | Dividends | Distributions | with fee waivers | fee waivers | income | |||||||||||||||||||||||||||||||||||||||||||||||
value, | investment | (both | Total from | from net | from net | Net asset | Net assets, | and/or | and/or | (loss) | ||||||||||||||||||||||||||||||||||||||||||||
beginning | income | realized and | investment | investment | realized | Total | value, end | Total | end of period | expenses | expenses | to average | Portfolio | |||||||||||||||||||||||||||||||||||||||||
of period | (loss)(a) | unrealized) | operations | income | gains | distributions | of period | return (b) | (000’s omitted) | absorbed | absorbed | net assets | turnover (c) | |||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $7.28 | $ 0.09 | $(0.18 | ) | $(0.09 | ) | $(0.67 | ) | $ – | $(0.67 | ) | $6.52 | (1.27 | )% | $ 80,247 | 1.32 | %(d) | 1.54 | %(d) | 2.53 | %(d) | 11 | % | |||||||||||||||||||||||||||||||
Year ended 10/31/22 | 8.01 | (0.03 | ) | 0.47 | 0.44 | (1.17 | ) | – | (1.17 | ) | 7.28 | 6.63 | 86,968 | 1.31 | 1.56 | (0.41 | ) | 106 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.81 | (0.10 | ) | 2.30 | 2.20 | – | – | – | 8.01 | 37.87 | 45,976 | 1.33 | 1.67 | (1.29 | ) | 14 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.22 | (0.03 | ) | (0.32 | ) | (0.35 | ) | (0.06 | ) | – | (0.06 | ) | 5.81 | (5.75 | ) | 17,291 | 1.31 | 1.73 | (0.51 | ) | 186 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 6.50 | 0.05 | (0.32 | ) | (0.27 | ) | (0.01 | ) | (0.00 | ) | (0.01 | ) | 6.22 | (4.15 | ) | 24,633 | 1.31 | (e) | 1.58 | (e) | 0.79 | (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 | |||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 6.65 | 0.05 | (0.14 | ) | (0.09 | ) | (0.62 | ) | – | (0.62 | ) | 5.94 | (1.44 | ) | 23,315 | 2.07 | (d) | 2.29 | (d) | 1.78 | (d) | 11 | ||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 7.44 | (0.08 | ) | 0.42 | 0.34 | (1.13 | ) | – | (1.13 | ) | 6.65 | 5.69 | 26,355 | 2.06 | 2.31 | (1.16 | ) | 106 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.43 | (0.14 | ) | 2.15 | 2.01 | – | – | – | 7.44 | 37.02 | 17,125 | 2.08 | 2.42 | (2.04 | ) | 14 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 5.87 | (0.07 | ) | (0.32 | ) | (0.39 | ) | (0.05 | ) | – | (0.05 | ) | 5.43 | (6.63 | ) | 4,393 | 2.06 | 2.48 | (1.26 | ) | 186 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 6.16 | 0.00 | (0.29 | ) | (0.29 | ) | – | (0.00 | ) | (0.00 | ) | 5.87 | (4.66 | ) | 6,083 | 2.06 | (e) | 2.33 | (e) | 0.04 | (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 | |||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.09 | 0.07 | (0.15 | ) | (0.08 | ) | (0.66 | ) | – | (0.66 | ) | 6.35 | (1.26 | ) | 12,128 | 1.57 | (d) | 1.79 | (d) | 2.28 | (d) | 11 | ||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 7.85 | (0.05 | ) | 0.45 | 0.40 | (1.16 | ) | – | (1.16 | ) | 7.09 | 6.17 | 11,779 | 1.56 | 1.81 | (0.66 | ) | 106 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.70 | (0.11 | ) | 2.26 | 2.15 | – | – | – | 7.85 | 37.72 | 2,932 | 1.58 | 1.92 | (1.54 | ) | 14 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.12 | (0.04 | ) | (0.33 | ) | (0.37 | ) | (0.05 | ) | – | (0.05 | ) | 5.70 | (6.03 | ) | 1,603 | 1.56 | 1.98 | (0.76 | ) | 186 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 6.40 | 0.03 | (0.30 | ) | (0.27 | ) | (0.01 | ) | (0.00 | ) | (0.01 | ) | 6.12 | (4.25 | ) | 1,404 | 1.56 | (e) | 1.83 | (e) | 0.54 | (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 | |||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.50 | 0.10 | (0.17 | ) | (0.07 | ) | (0.69 | ) | – | (0.69 | ) | 6.74 | (0.99 | ) | 415,274 | 1.07 | (d) | 1.29 | (d) | 2.78 | (d) | 11 | ||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 8.22 | (0.01 | ) | 0.47 | 0.46 | (1.18 | ) | – | (1.18 | ) | 7.50 | 6.80 | 515,659 | 1.06 | 1.31 | (0.16 | ) | 106 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.94 | (0.08 | ) | 2.36 | 2.28 | – | – | – | 8.22 | 38.38 | 896,762 | 1.08 | 1.42 | (1.04 | ) | 14 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.36 | (0.01 | ) | (0.35 | ) | (0.36 | ) | (0.06 | ) | – | (0.06 | ) | 5.94 | (5.74 | ) | 316,851 | 1.06 | 1.48 | (0.26 | ) | 186 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 6.63 | 0.07 | (0.33 | ) | (0.26 | ) | (0.01 | ) | (0.00 | ) | (0.01 | ) | 6.36 | (3.84 | ) | 726,446 | 1.06 | (e) | 1.33 | (e) | 1.04 | (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 | |||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.54 | 0.10 | (0.17 | ) | (0.07 | ) | (0.69 | ) | – | (0.69 | ) | 6.78 | (0.98 | ) | 148,438 | 1.07 | (d) | 1.20 | (d) | 2.78 | (d) | 11 | ||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 8.26 | (0.01 | ) | 0.47 | 0.46 | (1.18 | ) | – | (1.18 | ) | 7.54 | 6.76 | 154,845 | 1.06 | 1.17 | (0.16 | ) | 106 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.97 | (0.08 | ) | 2.37 | 2.29 | – | – | – | 8.26 | 38.36 | 156,985 | 1.08 | 1.17 | (1.04 | ) | 14 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.38 | (0.02 | ) | (0.33 | ) | (0.35 | ) | (0.06 | ) | – | (0.06 | ) | 5.97 | (5.57 | ) | 148,151 | 1.06 | 1.28 | (0.26 | ) | 186 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 6.65 | 0.07 | (0.32 | ) | (0.25 | ) | (0.02 | ) | (0.00 | ) | (0.02 | ) | 6.38 | (3.79 | ) | 140,393 | 1.06 | (e) | 1.17 | (e) | 1.04 | (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 | |||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.56 | 0.10 | (0.18 | ) | (0.08 | ) | (0.69 | ) | – | (0.69 | ) | 6.79 | (1.08 | ) | 214,237 | 1.07 | (d) | 1.13 | (d) | 2.78 | (d) | 11 | ||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 8.28 | (0.01 | ) | 0.47 | 0.46 | (1.18 | ) | – | (1.18 | ) | 7.56 | 6.77 | 383,476 | 1.04 | 1.10 | (0.14 | ) | 106 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.98 | (0.08 | ) | 2.38 | 2.30 | – | – | – | 8.28 | 38.46 | 472,776 | 1.04 | 1.08 | (1.00 | ) | 14 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.40 | (0.02 | ) | (0.34 | ) | (0.36 | ) | (0.06 | ) | – | (0.06 | ) | 5.98 | (5.71 | ) | 116,491 | 1.06 | 1.19 | (0.26 | ) | 186 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 6.67 | 0.07 | (0.32 | ) | (0.25 | ) | (0.02 | ) | (0.00 | ) | (0.02 | ) | 6.40 | (3.72 | ) | 119,820 | 1.01 | (e) | 1.08 | (e) | 1.09 | (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 |
(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) | Annualized. |
(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, 2023
(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 and the Invesco Cayman Commodity Fund III Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to the commodity markets primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives and other securities that may provide leveraged and non-leveraged exposure to commodities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to provide total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the
15 Invesco Balanced-Risk Commodity Strategy Fund
inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | 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
16 Invesco Balanced-Risk Commodity Strategy Fund
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 Consolidated Statement of Assets and Liabilities. When LME or non-LME contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. For settlement of LME commodity futures contracts, cash is not transferred until the settled futures contracts expire. Net realized gains or losses on LME contracts which have been closed out but for which the contract has not yet expired are reflected as a receivable or payable on the Consolidated Statements of Assets and Liabilities. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin 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 net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
L. | Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
M. | Other Risks - The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in commodity futures and swaps, commodity related exchange-traded funds and exchange-traded notes and commodity linked notes, some or all of which will be owned through the Subsidiary. The Subsidiary, unlike the Fund, may invest without limitation in 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. |
Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
In addition to risks associated with the underlying commodities, investments in commodity-linked notes may be subject to additional risks, such as non-payment of interest and loss of principal, counterparty risk, lack of a secondary market and risk of greater volatility than traditional equity and debt
17 Invesco Balanced-Risk Commodity Strategy Fund
securities. The value of the commodity-linked notes the Fund buys may fluctuate significantly because the values of the underlying investments to which they are linked are themselves volatile. Additionally, certain commodity-linked notes employ “economic” leverage by requiring payment by the issuer of an amount that is a multiple of the price increase or decrease of the underlying commodity, commodity index, or other economic variable. Such economic leverage will increase the volatility of the value of these commodity-linked notes and the Fund to the extent it invests in such notes.
Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser less the amount paid by the Subsidiary to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $250 million | 1.050 | % | ||
Next $250 million | 1.025 | % | ||
Next $500 million | 1.000 | % | ||
Next $1.5 billion | 0.975 | % | ||
Next $2.5 billion | 0.950 | % | ||
Next $2.5 billion | 0.925 | % | ||
Next $2.5 billion | 0.900 | % | ||
Over $10 billion | 0.875 | % |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 1.02%.
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, 2024, 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, 2024. 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 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, 2025, 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, 2023, the Adviser waived advisory fees of $245,691 and reimbursed class level expenses of $71,369, $21,134, $9,931, $387,937, $59,215 and $11,389 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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $16,708 in front-end sales commissions from the sale of Class A shares and $33 and $2,660 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.
18 Invesco Balanced-Risk Commodity Strategy Fund
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | – | $ | 288,684,714 | $– | $ | 288,684,714 | |||||||||
| ||||||||||||||||
Commodity-Linked Securities | – | 105,452,859 | – | 105,452,859 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 435,266,542 | – | – | 435,266,542 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 435,266,542 | 394,137,573 | – | 829,404,115 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 1,336,939 | – | – | 1,336,939 | ||||||||||||
| ||||||||||||||||
Swap Agreements | – | 8,375,412 | – | 8,375,412 | ||||||||||||
| ||||||||||||||||
1,336,939 | 8,375,412 | – | 9,712,351 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | (3,431,361 | ) | – | – | (3,431,361 | ) | ||||||||||
| ||||||||||||||||
Swap Agreements | – | (19,487,610 | ) | – | (19,487,610 | ) | ||||||||||
| ||||||||||||||||
(3,431,361 | ) | (19,487,610 | ) | – | (22,918,971 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | (2,094,422 | ) | (11,112,198 | ) | – | (13,206,620 | ) | |||||||||
| ||||||||||||||||
Total Investments | $ | 433,172,120 | $ | 383,025,375 | $– | $ | 816,197,495 | |||||||||
|
* | Unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2023:
Value | ||||
Commodity | ||||
Derivative Assets | Risk | |||
| ||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | 1,336,939 | ||
| ||||
Unrealized appreciation on swap agreements – OTC | 8,375,412 | |||
| ||||
Total Derivative Assets | 9,712,351 | |||
| ||||
Derivatives not subject to master netting agreements | (1,336,939 | ) | ||
| ||||
Total Derivative Assets subject to master netting agreements | $ | 8,375,412 | ||
|
19 Invesco Balanced-Risk Commodity Strategy Fund
Value | ||||
Commodity | ||||
Derivative Liabilities | Risk | |||
| ||||
Unrealized depreciation on futures contracts –Exchange-Traded(a) | $ | (3,431,361 | ) | |
| ||||
Unrealized depreciation on swap agreements – OTC | (19,487,610 | ) | ||
| ||||
Total Derivative Liabilities | (22,918,971 | ) | ||
| ||||
Derivatives not subject to master netting agreements | 3,431,361 | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $ | (19,487,610 | ) | |
|
(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, 2023.
Financial | Financial | |||||||||||||||||||||
Derivative | Derivative | Collateral | ||||||||||||||||||||
Assets | Liabilities | (Received)/Pledged | ||||||||||||||||||||
Swap | Swap | Net Value of | Net | |||||||||||||||||||
Counterparty | Agreements | Agreements | Derivatives | Non-Cash | Cash | Amount | ||||||||||||||||
| ||||||||||||||||||||||
Barclays Bank PLC | $ | 35,344 | $ | (1,769,472 | ) | $ | (1,734,128 | ) | $– | $ | 1,734,128 | $ | – | |||||||||
| ||||||||||||||||||||||
BNP Paribas S.A. | – | (808,031 | ) | (808,031 | ) | – | 808,031 | – | ||||||||||||||
| ||||||||||||||||||||||
Canadian Imperial Bank of Commerce | – | (522,245 | ) | (522,245 | ) | – | 522,245 | – | ||||||||||||||
| ||||||||||||||||||||||
Cargill, Inc. | 5,875,070 | (12,886 | ) | 5,862,184 | – | (5,810,000 | ) | 52,184 | ||||||||||||||
| ||||||||||||||||||||||
Goldman Sachs International | 517,504 | (1,275,111 | ) | (757,607 | ) | – | 757,607 | – | ||||||||||||||
| ||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 3,796 | (3,353,555 | ) | (3,349,759 | ) | – | 3,349,759 | – | ||||||||||||||
| ||||||||||||||||||||||
Macquarie Bank Ltd. | 902,707 | (569,204 | ) | 333,503 | – | – | 333,503 | |||||||||||||||
| ||||||||||||||||||||||
Merrill Lynch International | 27,801 | (3,688,316 | ) | (3,660,515 | ) | – | 3,660,515 | – | ||||||||||||||
| ||||||||||||||||||||||
Morgan Stanley Capital Services LLC | 1,040,991 | (4,629,401 | ) | (3,588,410 | ) | – | 3,588,410 | – | ||||||||||||||
| ||||||||||||||||||||||
Royal Bank of Canada | 521,621 | (9,524 | ) | 512,097 | – | – | 512,097 | |||||||||||||||
| ||||||||||||||||||||||
UBS AG | – | (6,612,467 | ) | (6,612,467 | ) | – | 6,612,467 | – | ||||||||||||||
| ||||||||||||||||||||||
Total | $ | 8,924,834 | $ | (23,250,212 | ) | $ | (14,325,378 | ) | $– | $ | 15,223,162 | $ | 897,784 | |||||||||
|
Effect of Derivative Investments for the six months ended April 30, 2023
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 | $(17,454,062) | |||
| ||||
Swap agreements | (27,614,606) | |||
| ||||
Change in Net Unrealized Appreciation (Depreciation): | ||||
Futures contracts | 10,188,040 | |||
| ||||
Swap agreements | (14,389,295) | |||
| ||||
Total | $(49,269,923) | |||
|
The table below summarizes the average notional value of derivatives held during the period.
Futures | Swap | |||
Contracts | Agreements | |||
Average notional value | $121,404,915 | $728,007,516 |
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,312.
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
20 Invesco Balanced-Risk Commodity Strategy Fund
compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7 – Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8 – 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||
Expiration | Short-Term | Long-Term | Total | |||
Not subject to expiration | $7,141,095 | $– | $7,141,095 |
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9 – Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $36,700,000 and $43,660,823, 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 | $ | 39,496,664 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (23,239,154 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 16,257,510 | ||
|
Cost of investments for tax purposes is $799,939,985.
NOTE 10 - Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 2,171,124 | $ | 15,181,795 | 10,005,503 | $ | 78,497,690 | ||||||||||
| ||||||||||||||||
Class C | 415,054 | 2,589,420 | 2,282,984 | 16,402,860 | ||||||||||||
| ||||||||||||||||
Class R | 491,274 | 3,293,206 | 1,688,747 | 12,822,228 | ||||||||||||
| ||||||||||||||||
Class Y | 11,277,671 | 80,220,512 | 41,531,853 | 326,502,418 | ||||||||||||
| ||||||||||||||||
Class R5 | 1,514,800 | 10,634,281 | 3,312,197 | 26,956,361 | ||||||||||||
| ||||||||||||||||
Class R6 | 6,851,311 | 47,661,719 | 33,672,573 | 270,113,458 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 1,084,972 | 7,139,114 | 879,856 | 5,930,231 | ||||||||||||
| ||||||||||||||||
Class C | 353,878 | 2,123,267 | 374,025 | 2,318,957 | ||||||||||||
| ||||||||||||||||
Class R | 164,960 | 1,057,391 | 66,005 | 434,310 | ||||||||||||
| ||||||||||||||||
Class Y | 4,355,405 | 29,573,197 | 15,387,911 | 106,638,220 | ||||||||||||
| ||||||||||||||||
Class R5 | 2,053,963 | 14,028,568 | 3,217,990 | 22,429,386 | ||||||||||||
| ||||||||||||||||
Class R6 | 601,123 | 4,111,679 | 618,840 | 4,325,695 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 68,541 | 458,210 | 87,779 | 672,462 | ||||||||||||
| ||||||||||||||||
Class C | (75,223 | ) | (458,210 | ) | (95,624 | ) | (672,462 | ) | ||||||||
|
21 Invesco Balanced-Risk Commodity Strategy Fund
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (2,975,611 | ) | $ | (20,229,406 | ) | (4,757,894 | ) | $ | (36,086,351 | ) | ||||||
| ||||||||||||||||
Class C | (727,813 | ) | (4,495,815 | ) | (901,355 | ) | (6,198,779 | ) | ||||||||
| ||||||||||||||||
Class R | (407,140 | ) | (2,725,779 | ) | (468,097 | ) | (3,509,495 | ) | ||||||||
| ||||||||||||||||
Class Y | (22,733,400 | ) | (160,629,213 | ) | (97,250,116 | ) | (752,450,276 | ) | ||||||||
| ||||||||||||||||
Class R5 | (2,196,635 | ) | (15,505,408 | ) | (5,004,803 | ) | (39,448,389 | ) | ||||||||
| ||||||||||||||||
Class R6 | (26,635,725 | ) | (199,519,032 | ) | (40,672,733 | ) | (323,042,897 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (24,347,471 | ) | $ | (185,490,504 | ) | (36,024,359 | ) | $ | (287,364,373 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 75% 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. |
22 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 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $987.30 | $6.50 | $1,018.25 | $6.61 | 1.32% | ||||||
Class C | 1,000.00 | 985.60 | 10.19 | 1,014.53 | 10.34 | 2.07 | ||||||
Class R | 1,000.00 | 987.40 | 7.74 | 1,017.01 | 7.85 | 1.57 | ||||||
Class Y | 1,000.00 | 990.10 | 5.28 | 1,019.49 | 5.36 | 1.07 | ||||||
Class R5 | 1,000.00 | 990.20 | 5.28 | 1,019.49 | 5.36 | 1.07 | ||||||
Class R6 | 1,000.00 | 989.20 | 5.28 | 1,019.49 | 5.36 | 1.07 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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 Commodity Strategy 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/ corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | BRCS-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Core Bond Fund
Nasdaq:
A: OPIGX ∎ C: OPBCX ∎ R: OPBNX ∎ Y: OPBYX ∎ R5:TRTMX ∎ R6: OPBIX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
21 | Financial Statements | |
24 | Financial Highlights | |
25 | Notes to Financial Statements | |
31 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
|
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 7.05 | % | ||
Class C Shares | 6.83 | |||
Class R Shares | 7.11 | |||
Class Y Shares | 7.40 | |||
Class R5 Shares | 7.38 | |||
Class R6 Shares | 7.39 | |||
Bloomberg U.S. Aggregate Bond Index▼ | 6.91 | |||
Bloomberg U.S. Credit Index▼ | 8.97 | |||
FTSE Broad Investment Grade Bond Index▼ | 6.97 | |||
Source(s): ▼RIMES Technologies Corp. |
| |||
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. The Bloomberg U.S. Credit Index is an unmanaged index considered representative of publicly issued, SEC-registered US corporate and specified foreign debentures and secured notes. The FTSE Broad Investment Grade Bond Index is a multi-asset, multi-currency benchmark that provides a broad-based measure of the global fixed income markets. 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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Core Bond Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (4/15/88) | 3.74 | % | ||
10 Years | 1.05 | |||
5 Years | 0.24 | |||
1 Year | -5.86 | |||
Class C Shares | ||||
Inception (7/11/95) | 2.41 | % | ||
10 Years | 0.84 | |||
5 Years | 0.32 | |||
1 Year | -3.36 | |||
Class R Shares | ||||
Inception (3/1/01) | 1.59 | % | ||
10 Years | 1.19 | |||
5 Years | 0.82 | |||
1 Year | -1.93 | |||
Class Y Shares | ||||
Inception (4/27/98) | 2.47 | % | ||
10 Years | 1.71 | |||
5 Years | 1.42 | |||
1 Year | -1.29 | |||
Class R5 Shares | ||||
10 Years | 1.60 | % | ||
5 Years | 1.33 | |||
1 Year | -1.42 | |||
Class R6 Shares | ||||
Inception (4/27/12) | 2.45 | % | ||
10 Years | 1.83 | |||
5 Years | 1.47 | |||
1 Year | -1.40 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Total Return Bond Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Total Return Bond Fund. Note: The Fund was subsequently renamed the Invesco Core Bond Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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.
3 | Invesco Core Bond Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Core Bond Fund |
April 30, 2023
(Unaudited)
Principal Amount | Value | |||||
U.S. Dollar Denominated Bonds & Notes–39.58% | ||||||
Aerospace & Defense–0.56% | ||||||
Huntington Ingalls Industries, Inc., 3.84%, 05/01/2025 | $ 2,137,000 | $ 2,086,997 | ||||
Lockheed Martin Corp., | ||||||
4.95%, 10/15/2025 | 1,105,000 | 1,123,963 | ||||
5.10%, 11/15/2027 | 1,036,000 | 1,078,358 | ||||
5.70%, 11/15/2054 | 752,000 | 850,851 | ||||
5.90%, 11/15/2063 | 752,000 | 879,551 | ||||
Northrop Grumman Corp., 4.95%, 03/15/2053 | 882,000 | 872,488 | ||||
Raytheon Technologies Corp., 5.15%, 02/27/2033 | 3,565,000 | 3,706,775 | ||||
10,598,983 | ||||||
Agricultural & Farm Machinery–0.44% |
| |||||
Cargill, Inc., |
| |||||
4.88%, 10/10/2025(b) | 1,352,000 | 1,362,492 | ||||
4.50%, 06/24/2026(b) | 2,243,000 | 2,257,670 | ||||
4.75%, 04/24/2033(b) | 1,410,000 | 1,421,263 | ||||
CNH Industrial Capital LLC, 5.45%, 10/14/2025 | 1,701,000 | 1,720,542 | ||||
John Deere Capital Corp., 4.55%, 10/11/2024 | 1,554,000 | 1,557,031 | ||||
8,318,998 | ||||||
Agricultural Products & Services–0.07% |
| |||||
Archer-Daniels-Midland Co., 4.50%, 08/15/2033 | 1,409,000 | 1,412,705 | ||||
Air Freight & Logistics–0.43% |
| |||||
United Parcel Service, Inc., |
| |||||
4.88%, 03/03/2033 | 2,501,000 | 2,589,448 | ||||
5.05%, 03/03/2053 | 5,330,000 | 5,498,461 | ||||
8,087,909 | ||||||
Apparel Retail–0.04% | ||||||
Ross Stores, Inc., | 801,000 | 783,954 | ||||
Application Software–0.09% |
| |||||
Leidos, Inc., 5.75%, 03/15/2033 | 1,695,000 | 1,734,223 | ||||
Asset Management & Custody Banks–0.91% |
| |||||
Ameriprise Financial, Inc., 5.15%, 05/15/2033 | 4,265,000 | 4,302,682 | ||||
Bank of New York Mellon Corp. (The), | ||||||
4.41%, 07/24/2026(c) | 1,393,000 | 1,377,242 | ||||
4.54%, 02/01/2029(c) | 2,267,000 | 2,254,941 | ||||
5.83%, 10/25/2033(c) | 1,104,000 | 1,182,149 | ||||
4.71%, 02/01/2034(c) | 1,465,000 | 1,456,582 | ||||
Series J, 4.97%, 04/26/2034(c) | 2,530,000 | 2,551,661 | ||||
Blackstone Secured Lending Fund, 2.13%, 02/15/2027 | 2,121,000 | 1,797,713 | ||||
Northern Trust Corp., | 1,292,000 | 1,382,978 |
Principal Amount | Value | |||||
Asset Management & Custody Banks–(continued) | ||||||
State Street Corp., 4.82%, 01/26/2034(c) | $ 838,000 | $ 835,256 | ||||
17,141,204 | ||||||
Automobile Manufacturers–1.01% |
| |||||
Daimler Truck Finance North America LLC (Germany), | 1,214,000 | 1,224,570 | ||||
Hyundai Capital America, | ||||||
4.13%, 06/08/2023(b) | 794,000 | 792,184 | ||||
5.50%, 03/30/2026(b) | 1,887,000 | 1,896,183 | ||||
5.60%, 03/30/2028(b) | 3,234,000 | 3,267,035 | ||||
5.80%, 04/01/2030(b) | 651,000 | 668,573 | ||||
Mercedes-Benz Finance North America LLC (Germany), | ||||||
4.80%, 03/30/2026(b) | 2,216,000 | 2,234,605 | ||||
4.80%, 03/30/2028(b) | 4,069,000 | 4,104,599 | ||||
Nissan Motor Acceptance Co. LLC, 1.85%, 09/16/2026(b) | 831,000 | 709,521 | ||||
PACCAR Financial Corp., | ||||||
4.95%, 10/03/2025 | 1,723,000 | 1,741,629 | ||||
4.60%, 01/10/2028 | 901,000 | 915,719 | ||||
Toyota Motor Credit Corp., | 1,532,000 | 1,559,578 | ||||
19,114,196 | ||||||
Automotive Parts & Equipment–0.86% |
| |||||
American Honda Finance Corp., |
| |||||
4.70%, 01/12/2028 | 2,633,000 | 2,673,936 | ||||
4.60%, 04/17/2030 | 2,910,000 | 2,922,525 | ||||
ERAC USA Finance LLC, | ||||||
4.60%, 05/01/2028(b) | 2,672,000 | 2,668,398 | ||||
4.90%, 05/01/2033(b) | 4,162,000 | 4,159,298 | ||||
5.40%, 05/01/2053(b) | 3,866,000 | 3,898,879 | ||||
16,323,036 | ||||||
Automotive Retail–0.07% | ||||||
Advance Auto Parts, Inc., | 1,327,000 | 1,370,526 | ||||
Biotechnology–1.03% | ||||||
AbbVie, Inc., 3.20%, 05/14/2026 | 1,852,000 | 1,784,851 | ||||
Amgen, Inc., | ||||||
5.25%, 03/02/2025 | 3,920,000 | 3,955,509 | ||||
5.15%, 03/02/2028 | 3,027,000 | 3,099,300 | ||||
5.25%, 03/02/2030 | 1,378,000 | 1,415,811 | ||||
5.25%, 03/02/2033 | 3,120,000 | 3,211,451 | ||||
5.60%, 03/02/2043 | 2,726,000 | 2,807,189 | ||||
5.65%, 03/02/2053 | 3,024,000 | 3,135,190 | ||||
19,409,301 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Core Bond Fund |
Principal Amount | Value | |||||
Cable & Satellite–0.28% | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., | ||||||
6.95% (3 mo. USD LIBOR + 1.65%), 02/01/2024(d) | $ 899,000 | $ 902,778 | ||||
4.91%, 07/23/2025 | 2,258,000 | 2,237,543 | ||||
Comcast Corp., 5.50%, 11/15/2032 | 2,034,000 | 2,181,237 | ||||
5,321,558 | ||||||
Cargo Ground Transportation–0.37% |
| |||||
Penske Truck Leasing Co. L.P./PTL Finance Corp., | ||||||
5.70%, 02/01/2028(b) | 1,409,000 | 1,426,449 | ||||
5.55%, 05/01/2028(b) | 2,819,000 | 2,839,443 | ||||
Ryder System, Inc., | 2,667,000 | 2,645,751 | ||||
6,911,643 | ||||||
Commercial & Residential Mortgage Finance–0.11% | ||||||
Aviation Capital Group LLC, 6.25%, 04/15/2028(b) | 2,042,000 | 2,061,598 | ||||
Construction Machinery & Heavy Transportation Equipment– 0.29% | ||||||
Daimler Trucks Finance North America LLC (Germany), 5.13%, 01/19/2028(b) | 882,000 | 888,718 | ||||
Komatsu Finance America, Inc., 5.50%, 10/06/2027(b) | 1,567,000 | 1,631,481 | ||||
nVent Finance S.a.r.l. (United Kingdom), 5.65%, 05/15/2033 | 2,991,000 | 3,022,032 | ||||
5,542,231 | ||||||
Consumer Finance–0.23% | ||||||
General Motors Financial Co., Inc., | ||||||
6.05%, 10/10/2025 | 2,629,000 | 2,658,405 | ||||
5.40%, 04/06/2026 | 673,000 | 673,704 | ||||
5.00%, 04/09/2027 | 949,000 | 939,224 | ||||
4,271,333 | ||||||
Consumer Staples Merchandise Retail–1.05% |
| |||||
Dollar General Corp., | 923,000 | 938,957 | ||||
Target Corp., | ||||||
4.50%, 09/15/2032 | 1,334,000 | 1,344,302 | ||||
4.40%, 01/15/2033 | 2,795,000 | 2,796,202 | ||||
4.80%, 01/15/2053 | 1,747,000 | 1,724,303 | ||||
Walmart, Inc., | ||||||
3.90%, 04/15/2028 | 2,376,000 | 2,374,138 | ||||
4.00%, 04/15/2030 | 1,921,000 | 1,912,984 | ||||
4.10%, 04/15/2033 | 2,896,000 | 2,891,074 | ||||
4.50%, 09/09/2052 | 993,000 | 984,636 | ||||
4.50%, 04/15/2053 | 4,827,000 | 4,790,981 | ||||
19,757,577 | ||||||
Distillers & Vintners–0.09% | ||||||
Brown-Forman Corp., | 921,000 | 940,903 | ||||
Constellation Brands, Inc., 4.90%, 05/01/2033 | 783,000 | 786,510 | ||||
1,727,413 |
Principal Amount | Value | |||||
Diversified Banks–8.87% | ||||||
Australia and New Zealand Banking Group Ltd. (Australia), | ||||||
5.09%, 12/08/2025 | $ 1,879,000 | $ 1,896,569 | ||||
6.75%(b)(c)(e) | 1,516,000 | 1,464,021 | ||||
Bank of America Corp., | ||||||
2.46%, 10/22/2025(c) | 3,212,000 | 3,070,709 | ||||
4.38%, 04/27/2028(c) | 1,401,000 | 1,360,973 | ||||
4.95%, 07/22/2028(c) | 1,098,000 | 1,094,885 | ||||
5.20%, 04/25/2029(c) | 6,793,000 | 6,842,198 | ||||
4.57%, 04/27/2033(c) | 1,287,000 | 1,228,607 | ||||
5.02%, 07/22/2033(c) | 1,502,000 | 1,482,041 | ||||
5.29%, 04/25/2034(c) | 6,519,000 | 6,567,759 | ||||
Bank of Nova Scotia (The) (Canada), 8.63%, 10/27/2082(c) | 2,175,000 | 2,231,663 | ||||
BPCE S.A. (France), | ||||||
5.41% (SOFR + 0.57%), 01/14/2025(b)(d) | 1,818,000 | 1,799,801 | ||||
5.98%, 01/18/2027(b)(c) | 2,252,000 | 2,271,463 | ||||
Citigroup, Inc., | ||||||
5.61%, 09/29/2026(c) | 2,743,000 | 2,776,504 | ||||
3.79%, 03/17/2033(c) | 1,355,000 | 1,219,518 | ||||
7.38%(c)(e) | 5,965,000 | 5,905,350 | ||||
Citizens Bank N.A., 6.06%, 10/24/2025(c) | 2,436,000 | 2,358,482 | ||||
Credit Suisse AG (Switzerland), 3.63%, 09/09/2024 | 815,000 | 777,078 | ||||
Federation des caisses Desjardins du Quebec (Canada), 5.28%, | 5,000,000 | 4,988,434 | ||||
Fifth Third Bancorp, | ||||||
2.38%, 01/28/2025 | 1,237,000 | 1,164,699 | ||||
1.71%, 11/01/2027(c) | 1,362,000 | 1,182,728 | ||||
6.36%, 10/27/2028(c) | 1,193,000 | 1,232,123 | ||||
4.77%, 07/28/2030(c) | 3,111,000 | 2,963,152 | ||||
Fifth Third Bank N.A., | ||||||
5.85%, 10/27/2025(c) | 2,674,000 | 2,658,425 | ||||
3.85%, 03/15/2026 | 983,000 | 926,754 | ||||
HSBC Holdings PLC | ||||||
5.21%, 08/11/2028(c) | 1,361,000 | 1,355,943 | ||||
5.40%, 08/11/2033(c) | 1,649,000 | 1,635,849 | ||||
8.11%, 11/03/2033(c) | 2,057,000 | 2,323,785 | ||||
6.33%, 03/09/2044(c) | 4,512,000 | 4,760,153 | ||||
Huntington National Bank (The), 5.70%, 11/18/2025(c) | 6,202,000 | 6,059,255 | ||||
JPMorgan Chase & Co., | ||||||
4.32%, 04/26/2028(c) | 1,339,000 | 1,314,641 | ||||
4.85%, 07/25/2028(c) | 1,171,000 | 1,174,960 | ||||
4.59%, 04/26/2033(c) | 920,000 | 895,770 | ||||
5.72%, 09/14/2033(c) | 2,645,000 | 2,732,774 | ||||
KeyBank N.A., | ||||||
3.30%, 06/01/2025 | 1,128,000 | 1,064,717 | ||||
4.15%, 08/08/2025 | 4,021,000 | 3,852,569 | ||||
5.85%, 11/15/2027 | 2,857,000 | 2,856,020 | ||||
4.90%, 08/08/2032 | 1,970,000 | 1,759,075 | ||||
5.00%, 01/26/2033 | 3,449,000 | 3,209,740 | ||||
Manufacturers & Traders Trust Co., | ||||||
5.40%, 11/21/2025 | 3,189,000 | 3,117,204 | ||||
4.70%, 01/27/2028 | 2,384,000 | 2,263,792 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Core Bond Fund |
Principal Amount | Value | |||||
Diversified Banks–(continued) | ||||||
Mitsubishi UFJ Financial Group, Inc. (Japan), | ||||||
4.79%, 07/18/2025(c) | $ 3,868,000 | $ 3,834,316 | ||||
5.02%, 07/20/2028(c) | 1,412,000 | 1,407,793 | ||||
5.24%, 04/19/2029(c) | 1,381,000 | 1,391,878 | ||||
1.80%, 07/20/2033(c) | 1,554,000 | 1,555,808 | ||||
5.41%, 04/19/2034(c) | 1,424,000 | 1,439,092 | ||||
Mizuho Financial Group, Inc. (Japan), 5.67%, 09/13/2033(c) | 1,782,000 | 1,825,181 | ||||
National Securities Clearing Corp., 5.10%, 11/21/2027(b) | 2,305,000 | 2,339,835 | ||||
NatWest Group PLC (United Kingdom), 6.02%, 03/02/2034(c) | 945,000 | 983,486 | ||||
Nordea Bank Abp (Finland), | ||||||
4.75%, 09/22/2025(b) | 1,702,000 | 1,692,891 | ||||
5.38%, 09/22/2027(b) | 1,229,000 | 1,243,656 | ||||
PNC Financial Services Group, Inc. (The), | ||||||
5.67%, 10/28/2025(c) | 1,754,000 | 1,757,591 | ||||
4.63%, 06/06/2033(c) | 2,039,000 | 1,888,946 | ||||
6.04%, 10/28/2033(c) | 1,425,000 | 1,493,183 | ||||
5.07%, 01/24/2034(c) | 2,135,000 | 2,103,628 | ||||
Series O, 8.98% (3 mo. USD LIBOR + 3.68%)(d)(e) | 2,013,000 | 2,009,878 | ||||
Series V, 6.20%(c)(e) | 4,844,000 | 4,573,741 | ||||
Series W, 6.25%(c)(e) | 3,828,000 | 3,517,932 | ||||
Royal Bank of Canada (Canada), 5.00%, 02/01/2033 | 2,771,000 | 2,792,743 | ||||
Santander UK Group Holdings PLC (United Kingdom), 6.83%, 11/21/2026(c) | 1,677,000 | 1,707,956 | ||||
Standard Chartered PLC | 1,468,000 | 1,172,251 | ||||
Sumitomo Mitsui Financial Group, Inc. (Japan), | 5,966,000 | 6,265,720 | ||||
Sumitomo Mitsui Trust Bank Ltd. (Japan), 5.65%, 03/09/2026(b) | 1,455,000 | 1,481,371 | ||||
Swedbank AB (Sweden), | 1,523,000 | 1,531,143 | ||||
Synovus Bank, | 2,174,000 | 2,046,282 | ||||
Toronto-Dominion Bank (The) (Canada), | 1,765,000 | 1,802,118 | ||||
Truist Bank, | 1,355,000 | 1,270,321 | ||||
U.S. Bancorp, | ||||||
4.55%, 07/22/2028(c) | 1,167,000 | 1,135,412 | ||||
4.97%, 07/22/2033(c) | 953,000 | 892,558 | ||||
5.85%, 10/21/2033(c) | 1,863,000 | 1,919,307 | ||||
4.84%, 02/01/2034(c) | 4,388,000 | 4,206,621 | ||||
2.49%, 11/03/2036(c) | 1,773,000 | 1,357,903 | ||||
Wells Fargo & Co., | ||||||
5.39%, 04/24/2034(c) | 2,110,000 | 2,147,932 | ||||
4.61%, 04/25/2053(c) | 1,114,000 | 999,773 | ||||
167,628,429 |
Principal Amount | Value | |||||
Diversified Capital Markets–0.18% | ||||||
Credit Suisse Group AG (Switzerland), | $ 1,142,000 | $ 1,063,716 | ||||
UBS Group AG (Switzerland), | ||||||
5.71%, 01/12/2027(b)(c) | 958,000 | 955,909 | ||||
4.75%, 05/12/2028(b)(c) | 1,454,000 | 1,403,346 | ||||
3,422,971 | ||||||
Diversified Chemicals–0.17% | ||||||
Celanese US Holdings LLC, | ||||||
5.90%, 07/05/2024 | 1,519,000 | 1,521,023 | ||||
6.05%, 03/15/2025 | 1,627,000 | 1,633,674 | ||||
3,154,697 | ||||||
Diversified Financial Services–0.45% | ||||||
Jackson Financial, Inc., | 305,000 | 300,251 | ||||
OPEC Fund for International Development (The) (Supranational), | 3,505,000 | 3,522,857 | ||||
Pershing Square Holdings Ltd., | ||||||
3.25%, 11/15/2030(b) | 1,800,000 | 1,430,379 | ||||
3.25%, 10/01/2031(b) | 4,300,000 | 3,333,554 | ||||
8,587,041 | ||||||
Diversified Metals & Mining–0.71% | ||||||
BHP Billiton Finance (USA) Ltd. (Australia), | ||||||
4.88%, 02/27/2026 | 4,060,000 | 4,113,280 | ||||
4.75%, 02/28/2028 | 2,523,000 | 2,566,279 | ||||
4.90%, 02/28/2033 | 2,931,000 | 3,007,066 | ||||
Rio Tinto Finance (USA) PLC (Australia), 5.13%, 03/09/2053 | 3,523,000 | 3,634,575 | ||||
13,321,200 | ||||||
Diversified REITs–0.25% | ||||||
VICI Properties L.P., | ||||||
4.75%, 02/15/2028 | 1,034,000 | 998,182 | ||||
4.95%, 02/15/2030 | 1,034,000 | 989,518 | ||||
VICI Properties L.P./VICI Note Co., Inc., 5.63%, 05/01/2024(b) | 2,782,000 | 2,771,042 | ||||
4,758,742 | ||||||
Education Services–0.07% | ||||||
Johns Hopkins University (The), Series A, 4.71%, 07/01/2032 | 1,222,000 | 1,254,959 | ||||
Electric Utilities–2.24% | ||||||
AEP Texas, Inc., | 2,489,000 | 2,418,791 | ||||
American Electric Power Co., Inc., 5.75%, 11/01/2027 | 1,038,000 | 1,083,213 | ||||
Connecticut Light and Power Co. (The), 5.25%, 01/15/2053 | 1,043,000 | 1,095,359 | ||||
Duke Energy Carolinas LLC, 5.35%, 01/15/2053 | 1,921,000 | 2,019,484 | ||||
Duke Energy Corp., | ||||||
5.00%, 12/08/2025 | 2,248,000 | 2,263,930 | ||||
5.00%, 08/15/2052 | 1,266,000 | 1,189,209 | ||||
Duke Energy Indiana LLC, | 2,263,000 | 2,343,556 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Core Bond Fund |
Principal Amount | Value | |||||
Electric Utilities–(continued) | ||||||
Enel Finance America LLC (Italy), 7.10%, 10/14/2027(b) | $ 814,000 | $ 874,137 | ||||
Enel Finance International N.V. (Italy), 6.80%, 10/14/2025(b) | 1,637,000 | 1,696,995 | ||||
Evergy Metro, Inc., | 1,158,000 | 1,164,830 | ||||
Exelon Corp., | 1,908,000 | 1,966,376 | ||||
Metropolitan Edison Co., | 639,000 | 651,950 | ||||
National Rural Utilities Cooperative Finance Corp., | 731,000 | 788,106 | ||||
NextEra Energy Capital Holdings, Inc., | 1,940,000 | 1,973,222 | ||||
4.63%, 07/15/2027 | 1,568,000 | 1,571,027 | ||||
Oklahoma Gas and Electric Co., 5.60%, 04/01/2053 | 1,097,000 | 1,139,446 | ||||
Pacific Gas and Electric Co., 6.15%, 01/15/2033 | 1,326,000 | 1,346,667 | ||||
PacifiCorp, 5.35%, 12/01/2053 | 4,161,000 | 4,340,027 | ||||
Pennsylvania Electric Co., 5.15%, 03/30/2026(b) | 262,000 | 263,454 | ||||
Public Service Co. of Colorado, 5.25%, 04/01/2053 | 1,751,000 | 1,803,826 | ||||
Public Service Electric and Gas Co., 5.13%, 03/15/2053 | 1,098,000 | 1,138,254 | ||||
San Diego Gas & Electric Co., 5.35%, 04/01/2053 | 4,087,000 | 4,242,453 | ||||
Southern Co. (The), | 812,000 | 820,639 | ||||
5.70%, 10/15/2032 | 790,000 | 834,866 | ||||
Southwestern Electric Power Co., 5.30%, 04/01/2033 | 1,539,000 | 1,560,788 | ||||
Virginia Electric and Power Co., 5.00%, 04/01/2033 | 1,669,000 | 1,691,283 | ||||
42,281,888 | ||||||
Electrical Components & Equipment–0.36% | ||||||
CenterPoint Energy Houston Electric LLC, Series AI, | 1,712,000 | 1,699,965 | ||||
Regal Rexnord Corp., | ||||||
6.05%, 04/15/2028(b) | 2,741,000 | 2,769,286 | ||||
6.30%, 02/15/2030(b) | 1,097,000 | 1,118,609 | ||||
6.40%, 04/15/2033(b) | 1,212,000 | 1,237,272 | ||||
6,825,132 | ||||||
Environmental & Facilities Services–0.09% | ||||||
Republic Services, Inc., |
| |||||
4.88%, 04/01/2029 | 562,000 | 573,847 | ||||
5.00%, 04/01/2034 | 1,024,000 | 1,048,196 | ||||
1,622,043 | ||||||
Financial Exchanges & Data–0.45% | ||||||
Cboe Global Markets, Inc., 3.00%, 03/16/2032 | 1,891,000 | 1,661,705 | ||||
Intercontinental Exchange, Inc., | ||||||
4.00%, 09/15/2027 | 982,000 | 972,134 | ||||
4.35%, 06/15/2029 | 757,000 | 750,576 | ||||
4.60%, 03/15/2033 | 749,000 | 749,465 | ||||
4.95%, 06/15/2052 | 1,026,000 | 1,020,448 | ||||
5.20%, 06/15/2062 | 2,184,000 | 2,232,534 |
Principal Amount | Value | |||||
Financial Exchanges & Data–(continued) | ||||||
Moody’s Corp., | $ 1,658,000 | $ 1,107,404 | ||||
8,494,266 | ||||||
Gas Utilities–0.06% | ||||||
Southwest Gas Corp., | 1,085,000 | 1,103,518 | ||||
Health Care Equipment–0.60% | ||||||
Alcon Finance Corp. (Switzerland), | 1,304,000 | 1,343,076 | ||||
Becton, Dickinson and Co., | 1,225,000 | 1,239,803 | ||||
Medtronic Global Holdings S.C.A., | ||||||
4.25%, 03/30/2028 | 4,354,000 | 4,371,132 | ||||
4.50%, 03/30/2033 | 4,400,000 | 4,443,742 | ||||
11,397,753 | ||||||
Health Care Facilities–0.17% | ||||||
UPMC, | ||||||
5.04%, 05/15/2033 | 2,398,000 | 2,389,086 | ||||
5.38%, 05/15/2043 | 796,000 | 805,839 | ||||
3,194,925 | ||||||
Health Care Services–0.33% | ||||||
Piedmont Healthcare, Inc., | ||||||
Series 2032, 2.04%, 01/01/2032 | 1,105,000 | 882,398 | ||||
Series 2042, 2.72%, 01/01/2042 | 1,067,000 | 761,488 | ||||
2.86%, 01/01/2052 | 1,219,000 | 829,246 | ||||
Providence St. Joseph Health Obligated Group, Series 21-A, 2.70%, 10/01/2051 | 3,254,000 | 2,029,484 | ||||
Roche Holdings, Inc., 2.31%, 03/10/2027(b) | 1,750,000 | 1,638,806 | ||||
6,141,422 | ||||||
Home Improvement Retail–0.70% | ||||||
Lowe’s Cos., Inc., | ||||||
5.00%, 04/15/2033 | 2,469,000 | 2,496,886 | ||||
5.15%, 07/01/2033 | 2,984,000 | 3,042,819 | ||||
5.75%, 07/01/2053 | 899,000 | 918,192 | ||||
5.80%, 09/15/2062 | 1,537,000 | 1,549,212 | ||||
5.85%, 04/01/2063 | 5,210,000 | 5,247,548 | ||||
13,254,657 | ||||||
Hotels, Resorts & Cruise Lines–0.39% | ||||||
Expedia Group, Inc., | 5,712,000 | 5,024,152 | ||||
Marriott International, Inc., | 2,349,000 | 2,336,319 | ||||
7,360,471 | ||||||
Industrial Conglomerates–0.18% | ||||||
Honeywell International, Inc., 5.00%, 02/15/2033 | 3,181,000 | 3,358,064 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Core Bond Fund |
Principal Amount | Value | |||||
Industrial REITs–0.49% | ||||||
Prologis L.P., | ||||||
4.63%, 01/15/2033 | $ 1,804,000 | $ 1,799,228 | ||||
4.75%, 06/15/2033 | 4,377,000 | 4,388,404 | ||||
5.25%, 06/15/2053 | 3,138,000 | 3,148,080 | ||||
9,335,712 | ||||||
Insurance Brokers–0.15% | ||||||
Arthur J. Gallagher & Co., 5.50%, 03/02/2033 | 1,708,000 | 1,767,307 | ||||
Marsh & McLennan Cos., Inc., 5.45%, 03/15/2053 | 1,044,000 | 1,088,704 | ||||
2,856,011 | ||||||
Integrated Oil & Gas–0.33% | ||||||
BP Capital Markets America, Inc., 4.81%, 02/13/2033 | 3,885,000 | 3,954,190 | ||||
BP Capital Markets PLC (United Kingdom), 4.88%(c)(e) | 1,559,000 | 1,437,250 | ||||
Shell International Finance B.V. (Netherlands), 2.88%, 11/26/2041 | 1,047,000 | 810,277 | ||||
6,201,717 | ||||||
Integrated Telecommunication Services–0.69% | ||||||
AT&T, Inc., |
| |||||
5.48% (SOFR + 0.64%), 03/25/2024(d) | 1,104,000 | 1,102,216 | ||||
2.55%, 12/01/2033 | 1,594,000 | 1,283,869 | ||||
T-Mobile USA, Inc., | ||||||
3.50%, 04/15/2025 | 1,852,000 | 1,802,553 | ||||
5.05%, 07/15/2033 | 2,310,000 | 2,328,507 | ||||
3.40%, 10/15/2052 | 1,944,000 | 1,407,713 | ||||
5.65%, 01/15/2053 | 2,895,000 | 2,988,324 | ||||
Verizon Communications, Inc., 2.36%, 03/15/2032 | 2,642,000 | 2,169,838 | ||||
13,083,020 | ||||||
Interactive Media & Services–0.20% | ||||||
Meta Platforms, Inc., |
| |||||
3.85%, 08/15/2032 | 1,060,000 | 1,001,327 | ||||
4.45%, 08/15/2052 | 1,797,000 | 1,585,975 | ||||
4.65%, 08/15/2062 | 1,416,000 | �� | 1,256,583 | |||
3,843,885 | ||||||
Investment Banking & Brokerage–1.09% | ||||||
Charles Schwab Corp. (The), Series K, 5.00%(c)(e) | 948,000 | 820,020 | ||||
Goldman Sachs Group, Inc. (The), | ||||||
5.70%, 11/01/2024 | 1,470,000 | 1,483,682 | ||||
4.48%, 08/23/2028(c) | 809,000 | 794,304 | ||||
Morgan Stanley, | ||||||
5.12%, 02/01/2029(c) | 1,307,000 | 1,314,360 | ||||
5.16%, 04/20/2029(c) | 7,661,000 | 7,720,796 | ||||
5.25%, 04/21/2034(c) | 7,367,000 | 7,453,741 | ||||
5.95%, 01/19/2038(c) | 1,050,000 | 1,056,733 | ||||
20,643,636 | ||||||
Life & Health Insurance–1.80% |
| |||||
Delaware Life Global Funding, | ||||||
Series 22-1, 3.31%, 03/10/2025(b) | 3,826,000 | 3,626,895 | ||||
Series 21-1, 2.66%, 06/29/2026(b) | 10,423,000 | 9,493,685 |
Principal Amount | Value | |||||
Life & Health Insurance–(continued) | ||||||
F&G Annuities & Life, Inc., | $ 2,392,000 | $ 2,434,985 | ||||
Lincoln National Corp., Series C, 9.25%(c)(e) | 1,146,000 | 1,156,028 | ||||
MAG Mutual Holding Co., | 9,203,000 | 7,346,743 | ||||
MetLife, Inc., 5.25%, 01/15/2054 | 3,441,000 | 3,410,562 | ||||
Northwestern Mutual Global Funding, 4.35%, 09/15/2027(b) | 1,664,000 | 1,660,253 | ||||
Principal Financial Group, Inc., | ||||||
5.38%, 03/15/2033 | 2,129,000 | 2,167,295 | ||||
5.50%, 03/15/2053 | 2,836,000 | 2,759,698 | ||||
34,056,144 | ||||||
Managed Health Care–0.99% | ||||||
Kaiser Foundation Hospitals, | ||||||
Series 2021, 2.81%, 06/01/2041 | 2,490,000 | 1,866,029 | ||||
3.00%, 06/01/2051 | 2,595,000 | 1,849,432 | ||||
UnitedHealth Group, Inc., | ||||||
5.00%, 10/15/2024 | 1,719,000 | 1,728,808 | ||||
5.15%, 10/15/2025 | 1,199,000 | 1,222,799 | ||||
5.25%, 02/15/2028 | 1,470,000 | 1,536,898 | ||||
4.25%, 01/15/2029 | 1,696,000 | 1,694,727 | ||||
5.30%, 02/15/2030 | 2,500,000 | 2,640,656 | ||||
5.35%, 02/15/2033 | 2,150,000 | 2,294,000 | ||||
4.50%, 04/15/2033 | 763,000 | 764,359 | ||||
5.05%, 04/15/2053 | 1,632,000 | 1,659,178 | ||||
5.20%, 04/15/2063 | 1,350,000 | 1,378,290 | ||||
18,635,176 | ||||||
Movies & Entertainment–0.16% | ||||||
Warnermedia Holdings, Inc., | ||||||
5.05%, 03/15/2042(b) | 2,101,000 | 1,739,417 | ||||
5.14%, 03/15/2052(b) | 1,682,000 | 1,345,539 | ||||
3,084,956 | ||||||
Multi-line Insurance–0.57% | ||||||
Allianz SE (Germany), | 1,558,000 | 1,136,160 | ||||
American International Group, Inc., 5.13%, 03/27/2033 | 2,353,000 | 2,365,414 | ||||
Aon Corp./Aon Global Holdings PLC, 5.35%, 02/28/2033 | 1,041,000 | 1,077,461 | ||||
Metropolitan Life Global Funding I, | 3,521,000 | 3,578,319 | ||||
New York Life Global Funding, 4.55%, 01/28/2033(b) | 2,631,000 | 2,617,276 | ||||
10,774,630 | ||||||
Multi-Utilities–0.45% | ||||||
Dominion Energy, Inc., | 3,428,000 | 3,519,991 | ||||
NiSource, Inc., 5.25%, 03/30/2028 | 749,000 | 765,447 | ||||
WEC Energy Group, Inc., | ||||||
5.00%, 09/27/2025 | 1,928,000 | 1,939,332 | ||||
5.15%, 10/01/2027 | 1,061,000 | 1,085,141 | ||||
4.75%, 01/15/2028 | 1,113,000 | 1,119,757 | ||||
8,429,668 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Core Bond Fund |
Principal Amount | Value | |||||
Office REITs–0.40% | ||||||
Boston Properties L.P., | ||||||
2.90%, 03/15/2030 | $ 1,075,000 | $ 875,031 | ||||
3.25%, 01/30/2031 | 654,000 | 536,476 | ||||
2.55%, 04/01/2032 | 1,308,000 | 984,651 | ||||
2.45%, 10/01/2033 | 1,304,000 | 939,074 | ||||
Office Properties Income Trust, | ||||||
4.25%, 05/15/2024 | 2,222,000 | 2,098,725 | ||||
4.50%, 02/01/2025 | 1,404,000 | 1,195,116 | ||||
2.65%, 06/15/2026 | 297,000 | 208,092 | ||||
2.40%, 02/01/2027 | 1,137,000 | 730,108 | ||||
7,567,273 | ||||||
Oil & Gas Exploration & Production–0.15% | ||||||
EQT Corp., 5.68%, 10/01/2025 | 1,745,000 | 1,742,483 | ||||
Pioneer Natural Resources Co., 5.10%, 03/29/2026 | 1,078,000 | 1,089,310 | ||||
2,831,793 | ||||||
Oil & Gas Refining & Marketing–0.16% | ||||||
Phillips 66, 5.30%, 06/30/2033 | 2,958,000 | 2,996,987 | ||||
Oil & Gas Storage & Transportation–1.16% | ||||||
Enbridge, Inc. (Canada), | 2,710,000 | 2,815,462 | ||||
Energy Transfer L.P., | 1,062,000 | 1,084,151 | ||||
Kinder Morgan, Inc., | ||||||
4.80%, 02/01/2033 | 1,071,000 | 1,037,279 | ||||
5.20%, 06/01/2033 | 2,813,000 | 2,793,837 | ||||
5.45%, 08/01/2052 | 2,050,000 | 1,894,920 | ||||
MPLX L.P., | ||||||
5.00%, 03/01/2033 | 1,684,000 | 1,655,387 | ||||
4.95%, 03/14/2052 | 1,426,000 | 1,236,300 | ||||
ONEOK, Inc., 6.10%, 11/15/2032 | 792,000 | 828,506 | ||||
Sabine Pass Liquefaction LLC, 5.90%, 09/15/2037(b) | 1,232,000 | 1,269,763 | ||||
Targa Resources Corp., | ||||||
5.20%, 07/01/2027 | 925,000 | 927,243 | ||||
6.25%, 07/01/2052 | 1,050,000 | 1,040,129 | ||||
TransCanada Pipelines Ltd. (Canada), 6.20%, 03/09/2026 | 100,000 | 100,591 | ||||
Western Midstream Operating L.P., 6.15%, 04/01/2033 | 2,343,000 | 2,384,494 | ||||
Williams Cos., Inc. (The), | 2,795,000 | 2,897,637 | ||||
21,965,699 | ||||||
Other Specialized REITs–0.04% | ||||||
EPR Properties, | 921,000 | 822,739 | ||||
Packaged Foods & Meats–0.36% | ||||||
Mars, Inc., | ||||||
4.55%, 04/20/2028(b) | 3,852,000 | 3,890,641 | ||||
4.65%, 04/20/2031(b) | 1,945,000 | 1,963,902 | ||||
McCormick & Co., Inc., | 967,000 | 968,391 | ||||
6,822,934 | ||||||
Paper & Plastic Packaging Products & Materials–0.09% | ||||||
Berry Global, Inc., | 2,034,000 | 1,787,343 |
Principal Amount | Value | |||||
Passenger Airlines–0.31% | ||||||
American Airlines Pass-Through Trust, | ||||||
Series 2021-1, Class B, 3.95%, 07/11/2030 | $ 1,955,840 | $ 1,730,291 | ||||
Series 2021-1, Class A, 2.88%, 07/11/2034 | 976,108 | 819,102 | ||||
Delta Air Lines, Inc./SkyMiles IP Ltd., | ||||||
4.50%, 10/20/2025(b) | 775,378 | 760,676 | ||||
4.75%, 10/20/2028(b) | 1,743,945 | 1,694,547 | ||||
United Airlines Pass-Through Trust, | ||||||
Series 2020-1, Class A, 5.88%, 10/15/2027 | 935,007 | 936,095 | ||||
Series 2019-2, Class AA, 2.70%, 05/01/2032 | 6,192 | 5,349 | ||||
5,946,060 | ||||||
Personal Care Products–0.71% | ||||||
Kenvue, Inc., | ||||||
5.05%, 03/22/2028(b) | 1,480,000 | 1,533,413 | ||||
5.00%, 03/22/2030(b) | 2,765,000 | 2,868,587 | ||||
4.90%, 03/22/2033(b) | 4,193,000 | 4,344,191 | ||||
5.10%, 03/22/2043(b) | 1,438,000 | 1,491,746 | ||||
5.05%, 03/22/2053(b) | 1,643,000 | 1,707,061 | ||||
5.20%, 03/22/2063(b) | 1,396,000 | 1,453,792 | ||||
13,398,790 | ||||||
Pharmaceuticals–0.43% | ||||||
Bayer US Finance II LLC (Germany), | 1,136,000 | 1,124,457 | ||||
Eli Lilly and Co., | ||||||
4.70%, 02/27/2033 | 2,228,000 | 2,314,603 | ||||
4.88%, 02/27/2053 | 2,147,000 | 2,245,994 | ||||
4.95%, 02/27/2063 | 1,199,000 | 1,253,127 | ||||
Mayo Clinic, Series 2021, | 1,668,000 | 1,166,693 | ||||
8,104,874 | ||||||
Precious Metals & Minerals–0.06% | ||||||
Anglo American Capital PLC (South Africa), | 1,168,000 | 1,140,870 | ||||
Rail Transportation–0.33% | ||||||
CSX Corp., 4.50%, 11/15/2052 | 1,611,000 | 1,484,314 | ||||
Union Pacific Corp., | ||||||
4.50%, 01/20/2033 | 1,833,000 | 1,847,122 | ||||
4.95%, 09/09/2052 | 889,000 | 908,322 | ||||
5.15%, 01/20/2063 | 1,852,000 | 1,898,835 | ||||
6,138,593 | ||||||
Regional Banks–0.80% | ||||||
Citizens Financial Group, Inc., | ||||||
4.30%, 12/03/2025 | 1,108,000 | 1,026,753 | ||||
2.64%, 09/30/2032 | 1,734,000 | 1,292,186 | ||||
KeyCorp, 3.88%, 05/23/2025(c) | 1,965,000 | 1,899,491 | ||||
M&T Bank Corp., | 1,935,000 | 1,818,424 | ||||
Morgan Stanley Bank N.A., | 1,490,000 | 1,498,357 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Core Bond Fund |
Principal Amount | Value | |||||
Regional Banks–(continued) | ||||||
Truist Financial Corp., | ||||||
4.87%, 01/26/2029(c) | $ 2,088,000 | $ 2,045,605 | ||||
4.92%, 07/28/2033(c) | 2,514,000 | 2,356,008 | ||||
6.12%, 10/28/2033(c) | 1,405,000 | 1,462,534 | ||||
5.12%, 01/26/2034(c) | 1,843,000 | 1,788,580 | ||||
15,187,938 | ||||||
Restaurants–0.09% |
| |||||
McDonald’s Corp., | 1,634,000 | 1,661,084 | ||||
Retail REITs–0.10% | ||||||
Realty Income Corp., | ||||||
5.63%, 10/13/2032 | 931,000 | 965,669 | ||||
2.85%, 12/15/2032 | 992,000 | 828,965 | ||||
1,794,634 | ||||||
Self-Storage REITs–0.06% |
| |||||
Extra Space Storage L.P., 5.70%, 04/01/2028 | 1,065,000 | 1,090,540 | ||||
Semiconductors–0.17% | ||||||
Broadcom, Inc., | ||||||
3.46%, 09/15/2026 | 2,143,000 | 2,054,594 | ||||
3.14%, 11/15/2035(b) | 1,573,000 | 1,218,850 | ||||
3,273,444 | ||||||
Specialized Consumer Services–0.06% |
| |||||
Ashtead Capital, Inc. (United Kingdom), | 1,140,000 | 1,134,648 | ||||
Specialized Finance–0.28% |
| |||||
IP Lending VII Ltd. (Bermuda), | 5,493,000 | 5,362,541 | ||||
Steel–0.19% |
| |||||
ArcelorMittal S.A. (Luxembourg), | 3,424,000 | 3,578,939 | ||||
Systems Software–0.60% |
| |||||
Oracle Corp., | ||||||
6.25%, 11/09/2032 | 4,512,000 | 4,873,320 | ||||
4.90%, 02/06/2033 | 2,818,000 | 2,777,407 | ||||
6.90%, 11/09/2052 | 1,914,000 | 2,146,992 | ||||
5.55%, 02/06/2053 | 1,540,000 | 1,481,477 | ||||
11,279,196 | ||||||
Technology Hardware, Storage & Peripherals–0.12% | ||||||
Apple, Inc., | ||||||
3.35%, 08/08/2032 | 1,435,000 | 1,362,476 | ||||
2.55%, 08/20/2060 | 1,499,000 | 995,435 | ||||
2,357,911 | ||||||
Telecom Tower REITs–0.19% | ||||||
American Tower Corp., | 1,852,000 | 1,764,640 | ||||
Crown Castle, Inc., | 1,852,000 | 1,834,442 | ||||
3,599,082 |
Principal Amount | Value | |||||
Tobacco–1.33% | ||||||
Philip Morris International, Inc., | ||||||
5.13%, 11/17/2027 | $ 1,473,000 | $ 1,509,284 | ||||
4.88%, 02/15/2028 | 6,944,000 | 7,008,431 | ||||
5.13%, 02/15/2030 | 7,695,000 | 7,779,022 | ||||
5.38%, 02/15/2033 | 8,580,000 | 8,756,890 | ||||
25,053,627 | ||||||
Transaction & Payment Processing Services–0.27% | ||||||
Mastercard, Inc., | 4,143,000 | 4,330,960 | ||||
PayPal Holdings, Inc., | 850,000 | 818,047 | ||||
5,149,007 | ||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 748,041,667 | ||||
U.S. Government Sponsored Agency Mortgage-Backed Securities–26.96% | ||||||
Collateralized Mortgage Obligations–0.51% | ||||||
Fannie Mae Interest STRIPS, | ||||||
7.00%, 06/25/2023 to 04/25/2032(g) | 645,149 | 125,007 | ||||
7.50%, 10/25/2023 to 11/25/2029(g) | 20,906 | 1,339 | ||||
6.50%, 04/25/2029 to 02/25/2033(g)(h) | 1,066,876 | 159,312 | ||||
6.00%, 06/25/2033 to 03/25/2036(g)(h) | 695,926 | 111,357 | ||||
5.50%, 09/25/2033 to 06/25/2035(g)(h) | 1,224,452 | 195,599 | ||||
Fannie Mae REMICs, | ||||||
6.50%, 06/25/2023 to 10/25/2031 | 121,868 | 124,930 | ||||
4.50%, 08/25/2025 | 6,992 | 6,894 | ||||
5.50%, 12/25/2025 to 07/25/2046(g) | 2,315,243 | 1,421,040 | ||||
7.00%, 07/25/2026 to 04/25/2033(g) | 443,509 | 64,959 | ||||
4.00%, 08/25/2026 to 08/25/2047(g) | 1,176,463 | 184,490 | ||||
6.00%, 11/25/2028 | 58,397 | 59,553 | ||||
7.50%, 12/25/2029 | 375,573 | 390,212 | ||||
6.02% (1 mo. USD LIBOR + 1.00%), 07/25/2032(d) | 53,149 | 53,997 | ||||
5.42% (1 mo. USD LIBOR + 0.40%), 03/25/2033(d) | 14,351 | 14,253 | ||||
5.27% (1 mo. USD LIBOR + 0.25%), 08/25/2035(d) | 44,118 | 43,735 | ||||
5.79% (24.20% - (3.67 x 1 mo. USD LIBOR)), 06/25/2036(d) | 114,092 | 129,808 | ||||
5.96% (1 mo. USD LIBOR + 0.94%), 06/25/2037(d) | 75,297 | 76,224 | ||||
5.00%, 04/25/2040 | 98,595 | 97,343 | ||||
PO, 0.00%, 09/25/2023(i) | 732 | 727 | ||||
IO, 3.13% (8.15% - (1.00 x 1 mo. USD LIBOR)), 04/25/2027(d)(g) | 42,756 | 2,245 | ||||
3.00%, 11/25/2027(g) | 908,107 | 36,982 | ||||
2.08% (7.10% - (1.00 x 1 mo. USD LIBOR)), 11/25/2030(d)(g) | 11,056 | 696 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Core Bond Fund |
Principal Amount | Value | |||||
Collateralized Mortgage Obligations–(continued) | ||||||
4.85% (9.80% - (1.00 x 1 mo. USD LIBOR)), 03/17/2031(d)(g) | $ 23 | $ 1 | ||||
2.73% (7.75% - (1.00 x 1 mo. USD LIBOR)), 07/25/2031 to 02/25/2032(d)(g) | 48,718 | 4,491 | ||||
2.89% (7.85% - (1.00 x 1 mo. USD LIBOR)), 11/18/2031(d)(g) | 42,120 | 3,698 | ||||
2.88% (7.90% - (1.00 x 1 mo. USD LIBOR)), 11/25/2031(d)(g) | 104,499 | 9,669 | ||||
2.23% (7.25% - (1.00 x 1 mo. USD LIBOR)), 01/25/2032(d)(g) | 76,977 | 7,115 | ||||
2.93% (7.95% - (1.00 x 1 mo. USD LIBOR)), 01/25/2032 to 07/25/2032(d)(g) | 126,615 | 10,301 | ||||
3.08% (8.10% - (1.00 x 1 mo. USD LIBOR)), 02/25/2032 to 03/25/2032(d)(g) | 14,818 | 940 | ||||
1.00% (8.00% - (1.00 x 1 mo. USD LIBOR)), 04/25/2032(d)(g) | 132,114 | 2,755 | ||||
1.98% (7.00% - (1.00 x 1 mo. USD LIBOR)), 04/25/2032 to 09/25/2032(d)(g) | 347,818 | 27,078 | ||||
2.98% (8.00% - (1.00 x 1 mo. USD LIBOR)), 04/25/2032 to 12/25/2032(d)(g) | 252,825 | 27,422 | ||||
3.04% (8.00% - (1.00 x 1 mo. USD LIBOR)), 12/18/2032(d)(g) | 161,486 | 16,766 | ||||
3.14% (8.10% - (1.00 x 1 mo. USD LIBOR)), 12/18/2032(d)(g) | 45,994 | 3,947 | ||||
3.18% (8.20% - (1.00 x 1 mo. USD LIBOR)), 01/25/2033(d)(g) | 231,203 | 24,937 | ||||
3.23% (8.25% - (1.00 x 1 mo. USD LIBOR)), 02/25/2033 to 05/25/2033(d)(g) | 161,374 | 22,732 | ||||
2.53% (7.55% - (1.00 x 1 mo. USD LIBOR)), 10/25/2033(d)(g) | 177,890 | 18,939 | ||||
1.68% (6.70% - (1.00 x 1 mo. USD LIBOR)), 02/25/2035 to 05/25/2035(d)(g) | 378,767 | 31,078 | ||||
1.73% (6.75% - (1.00 x 1 mo. USD LIBOR)), 03/25/2035(d)(g) | 69,989 | 4,936 | ||||
1.58% (6.60% - (1.00 x 1 mo. USD LIBOR)), 05/25/2035(d)(g) | 241,524 | 14,702 | ||||
3.50%, 08/25/2035(g) | 3,698,292 | 452,039 | ||||
1.08% (6.10% - (1.00 x 1 mo. USD LIBOR)), 10/25/2035(d)(g) | 184,412 | 15,657 | ||||
1.56% (6.58% - (1.00 x 1 mo. USD LIBOR)), 06/25/2036(d)(g) | 11,692 | 1,055 | ||||
1.03% (6.05% - (1.00 x 1 mo. USD LIBOR)), 07/25/2038(d)(g) | 73,965 | 1,980 | ||||
1.53% (6.55% - (1.00 x 1 mo. USD LIBOR)), 10/25/2041(d)(g) | 344,783 | 25,629 | ||||
1.13% (6.15% - (1.00 x 1 mo. USD LIBOR)), 12/25/2042(d)(g) | 832,480 | 96,192 | ||||
0.88% (5.90% - (1.00 x 1 mo. USD LIBOR)), 09/25/2047(d)(g) | 5,850,544 | 466,837 |
Principal Amount | Value | |||||
Collateralized Mortgage Obligations–(continued) | ||||||
Freddie Mac Multifamily Structured Pass-Through Ctfs., Series KC02, Class X1, IO, 1.91%, 03/25/2024(h) | $ 65,260,240 | $ 183,309 | ||||
Series KC03, Class X1, IO, 0.63%, 11/25/2024(h) | 40,465,265 | 335,247 | ||||
Series K734, Class X1, IO, 0.78%, 02/25/2026(h) | 32,696,495 | 459,808 | ||||
Series K735, Class X1, IO, 1.10%, 05/25/2026(h) | 33,640,483 | 788,136 | ||||
Series K093, Class X1, IO, 1.09%, 05/25/2029(h) | 27,566,654 | 1,272,695 | ||||
Freddie Mac REMICs, | ||||||
5.00%, 09/15/2023 | 4,454 | 4,439 | ||||
6.00% (1 mo. USD LIBOR + 1.05%), 10/15/2023(d) | 8,348 | 8,359 | ||||
6.50%, 02/15/2028 to 06/15/2032 | 565,346 | 583,669 | ||||
6.00%, 04/15/2029 | 35,315 | 35,989 | ||||
5.85% (1 mo. USD LIBOR + 0.90%), 07/15/2031(d) | 40,184 | 40,588 | ||||
7.00%, 03/15/2032 | 151,999 | 161,335 | ||||
3.50%, 05/15/2032 | 128,529 | 123,846 | ||||
5.95% (1 mo. USD LIBOR + 1.00%), 06/15/2032(d) | 172,480 | 175,289 | ||||
6.61% (24.75% - (3.67 x 1 mo. USD LIBOR)), 08/15/2035(d) | 32,559 | 39,814 | ||||
5.35% (1 mo. USD LIBOR + 0.40%), 09/15/2035(d) | 82,110 | 81,091 | ||||
IO, 2.70% (7.65% - (1.00 x 1 mo. USD LIBOR)), 07/15/2026 to | 126,093 | 6,103 | ||||
3.00%, 06/15/2027 to 05/15/2040(g) | 3,105,759 | 132,356 | ||||
2.50%, 05/15/2028(g) | 681,352 | 27,543 | ||||
2.75% (7.70% - (1.00 x 1 mo. USD LIBOR)), 03/15/2029(d)(g) | 16,881 | 484 | ||||
3.15% (8.10% - (1.00 x 1 mo. USD LIBOR)), 09/15/2029(d)(g) | 6,709 | 405 | ||||
2.80% (7.75% - (1.00 x 1 mo. USD LIBOR)), 01/15/2032(d)(g) | 94,218 | 7,031 | ||||
2.10% (7.05% - (1.00 x 1 mo. USD LIBOR)), 10/15/2033(d)(g) | 207,771 | 13,744 | ||||
1.75% (6.70% - (1.00 x 1 mo. USD LIBOR)), 01/15/2035(d)(g) | 217,108 | 11,630 | ||||
1.80% (6.75% - (1.00 x 1 mo. USD LIBOR)), 02/15/2035(d)(g) | 152,740 | 8,693 | ||||
1.77% (6.72% - (1.00 x 1 mo. USD LIBOR)), 05/15/2035(d)(g) | 798,298 | 53,945 | ||||
1.70% (6.65% - (1.00 x 1 mo. USD LIBOR)), 07/15/2035(d)(g) | 333,316 | 38,002 | ||||
2.05% (7.00% - (1.00 x 1 mo. USD LIBOR)), 12/15/2037(d)(g) | 73,742 | 7,857 | ||||
1.05% (6.00% - (1.00 x 1 mo. USD LIBOR)), 04/15/2038(d)(g) | 39,988 | 3,862 | ||||
1.12% (6.07% - (1.00 x 1 mo. USD LIBOR)), 05/15/2038(d)(g) | 1,046,324 | 89,961 | ||||
1.30% (6.25% - (1.00 x 1 mo. USD LIBOR)), 12/15/2039(d)(g) | 289,274 | 20,556 | ||||
1.15% (6.10% - (1.00 x 1 mo. USD LIBOR)), 01/15/2044(d)(g) | 907,458 | 96,741 | ||||
4.00%, 03/15/2045(g) | 363,649 | 20,374 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Core Bond Fund |
Principal Amount | Value | |||||||
Collateralized Mortgage Obligations–(continued) |
| |||||||
Freddie Mac STRIPS, | ||||||||
7.00%, 01/04/2027(g) | $ | 59,131 | $ | 5,139 | ||||
3.00%, 12/15/2027(g) | 1,176,520 | 58,287 | ||||||
3.27%, 12/15/2027(h) | 313,012 | 13,798 | ||||||
6.50%, 01/02/2028(g) | 5,880 | 587 | ||||||
7.50%, 12/15/2029(g) | 18,298 | 2,682 | ||||||
6.00%, 12/15/2032(g) | 59,848 | 7,522 | ||||||
PO, 0.00%, 06/01/2026(i) | 5,827 | 5,491 | ||||||
9,518,005 | ||||||||
Federal Home Loan Mortgage Corp. (FHLMC)–0.06% |
| |||||||
6.00%, 07/01/2024 to 11/01/2037 | 54,592 | 56,325 | ||||||
9.00%, 01/01/2025 to 05/01/2025 | 560 | 566 | ||||||
6.50%, 07/01/2028 to 04/01/2034 | 65,139 | 67,336 | ||||||
7.00%, 10/01/2031 to 10/01/2037 | 615,764 | 643,611 | ||||||
5.50%, 09/01/2039 | 377,410 | 390,671 | ||||||
1,158,509 | ||||||||
Federal National Mortgage Association (FNMA)–4.34% |
| |||||||
6.50%, 12/01/2029 to 11/01/2031 | 426,999 | 441,097 | ||||||
7.50%, 01/01/2033 to 08/01/2033 | 463,576 | 481,837 | ||||||
7.00%, 04/01/2033 to 04/01/2034 | 262,638 | 271,952 | ||||||
5.50%, 05/01/2036 | 292,594 | 303,342 | ||||||
4.00%, 05/01/2052 | 9,013,067 | 8,691,418 | ||||||
TBA, 3.00%, 05/01/2053(j) | 80,000,000 | 71,862,501 | ||||||
82,052,147 | ||||||||
Government National Mortgage Association (GNMA)–7.00% |
| |||||||
ARM, 2.63% (1 yr. U.S. Treasury Yield Curve Rate + 1.50%), 07/20/2025 to 07/20/2027(d) | 956 | 939 | ||||||
IO, 2.55% (7.50% - (1.00 x 1 mo. USD LIBOR)), 02/16/2032(d)(g) | 11,644 | 4 | ||||||
1.60% (6.55% - (1.00 x 1 mo. USD LIBOR)), 04/16/2037(d)(g) | 552,012 | 42,742 | ||||||
1.70% (6.65% - (1.00 x 1 mo. USD LIBOR)), 04/16/2041(d)(g) | 1,596,757 | 99,513 | ||||||
4.50%, 09/16/2047(g) | 2,595,533 | 412,836 | ||||||
1.25% (6.20% - (1.00 x 1 mo. USD LIBOR)), 10/16/2047(d)(g) | 2,160,430 | 212,684 | ||||||
TBA, 2.50%, 05/01/2053(j) | 69,445,000 | 61,362,524 | ||||||
4.50%, 05/01/2053(j) | 39,787,000 | 39,037,886 | ||||||
5.50%, 05/01/2053(j) | 30,947,000 | 31,157,343 | ||||||
132,326,471 | ||||||||
Packaged Foods & Meats–0.00% |
| |||||||
5.50%, 01/02/2035 | 62,628 | 64,927 |
Principal Amount | Value | |||||||
Uniform Mortgage-Backed Securities–15.05% |
| |||||||
TBA, 2.50%, 05/01/2053(j) | $ | 80,000,000 | $ | 69,276,563 | ||||
3.50%, 05/01/2053(j) | 43,000,000 | 39,956,406 | ||||||
4.00%, 05/01/2053(j) | 16,410,000 | 15,686,934 | ||||||
4.50%, 05/01/2053(j) | 16,409,000 | 16,041,720 | ||||||
5.00%, 05/01/2053(j) | 83,579,000 | 83,105,603 | ||||||
5.50%, 05/01/2053(j) | 59,800,000 | 60,295,219 | ||||||
284,362,445 | ||||||||
Total U.S. Government Sponsored Agency Mortgage-Backed Securities |
| 509,482,504 | ||||||
Asset-Backed Securities–21.70% |
| |||||||
Alternative Loan Trust, | ||||||||
Series 2005-21CB, Class A7, 5.50%, 06/25/2035 | 539,948 | 428,756 | ||||||
Series 2005-29CB, Class A4, 5.00%, 07/25/2035 | 254,056 | 156,325 | ||||||
AmeriCredit Automobile Receivables Trust, | ||||||||
Series 2019-2, Class C, 2.74%, 04/18/2025 | 801,402 | 796,259 | ||||||
Series 2019-2, Class D, 2.99%, 06/18/2025 | 4,570,000 | 4,487,973 | ||||||
Series 2019-3, Class D, 2.58%, 09/18/2025 | 2,285,000 | 2,220,581 | ||||||
AMSR Trust, Series 2021-SFR3, | 4,415,000 | 3,912,649 | ||||||
Angel Oak Mortgage Trust, | ||||||||
Series 2020-1, Class A1, 2.16%, 12/25/2059(b)(k) | 516,050 | 488,871 | ||||||
Series 2020-3, Class A1, 1.69%, 04/25/2065(b)(k) | 1,627,749 | 1,493,460 | ||||||
Series 2021-3, Class A1, 1.07%, 05/25/2066(b)(k) | 1,009,679 | 842,767 | ||||||
Series 2021-7, Class A1, 1.98%, 10/25/2066(b)(k) | 2,515,156 | 2,084,025 | ||||||
Series 2022-1, Class A1, 2.88%, 12/25/2066(b)(l) | 4,459,731 | 3,963,960 | ||||||
Avis Budget Rental Car Funding (AESOP) LLC, | ||||||||
Series 2022-1A, Class A, 3.83%, 08/21/2028(b) | 6,614,000 | 6,322,217 | ||||||
Series 2023-1A, Class A, 5.25%, 04/20/2029(b) | 1,463,000 | 1,478,290 | ||||||
Series 2023-4A, Class A, 5.49%, 06/20/2029(b) | 5,238,000 | 5,321,105 | ||||||
Bain Capital Credit CLO Ltd., Series 2017-2A, Class AR2, 6.44% (3 mo. USD LIBOR + 1.18%), 07/25/2034(b)(d) | 7,338,000 | 7,172,117 | ||||||
Banc of America Funding Trust, | ||||||||
Series 2007-1, Class 1A3, 6.00%, 01/25/2037 | 165,515 | 137,883 | ||||||
Series 2007-C, Class 1A4, 3.96%, 05/20/2036(k) | 62,892 | 55,375 | ||||||
Banc of America Mortgage Trust, Series 2007-1, Class 1A24, 6.00%, 03/25/2037 | 192,895 | 159,100 | ||||||
Bank, Series 2019-BNK16, Class XA, IO, 1.10%, 02/15/2052(h) | 23,631,875 | 969,663 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Core Bond Fund |
Principal Amount | Value | |||||||
Bayview MSR Opportunity Master Fund Trust, | ||||||||
Series 2021-4, Class A3, 3.00%, 10/25/2051(b)(k) | $ | 3,659,589 | $ | 3,142,580 | ||||
Series 2021-4, Class A4, 2.50%, 10/25/2051(b)(k) | 3,660,440 | 3,024,952 | ||||||
Series 2021-4, Class A8, 2.50%, 10/25/2051(b)(k) | 3,446,920 | 3,052,558 | ||||||
Series 2021-5, Class A1, 3.00%, 11/25/2051(b)(k) | 3,861,695 | 3,316,134 | ||||||
Series 2021-5, Class A2, 2.50%, 11/25/2051(b)(k) | 4,711,435 | 3,893,484 | ||||||
Bear Stearns Adjustable Rate Mortgage Trust, | ||||||||
Series 2005-9, Class A1, 0.76% (1 yr. U.S. Treasury Yield Curve Rate + 2.30%), 10/25/2035(d) | 141,300 | 133,017 | ||||||
Series 2006-1, Class A1, 0.65% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(d) | 343,498 | 327,479 | ||||||
Benchmark Mortgage Trust, | 25,349,722 | 490,018 | ||||||
BRAVO Residential Funding Trust, Series 2021-NQM2, Class A1, 0.97%, 03/25/2060(b)(k) | 872,360 | 817,814 | ||||||
BX Commercial Mortgage Trust, | ||||||||
Series 2021-ACNT, Class A, 5.80% (1 mo. USD LIBOR + 0.85%), 11/15/2038(b)(d) | 2,220,000 | 2,161,715 | ||||||
Series 2021-VOLT, Class A, 5.65% (1 mo. USD LIBOR + 0.70%), 09/15/2036(b)(d) | 4,080,000 | 3,942,539 | ||||||
Series 2021-VOLT, Class B, 5.90% (1 mo. USD LIBOR + 0.95%), 09/15/2036(b)(d) | 3,595,000 | 3,439,268 | ||||||
BX Trust, | ||||||||
Series 2022-CLS, Class A, 5.76%, 10/13/2027(b) | 1,625,000 | 1,596,373 | ||||||
Series 2022-LBA6, Class A, 5.89% (1 mo. Term SOFR + 1.00%), 01/15/2039(b)(d) | 3,670,000 | 3,569,752 | ||||||
Series 2022-LBA6, Class B, 6.19% (1 mo. Term SOFR + 1.30%), 01/15/2039(b)(d) | 2,265,000 | 2,184,061 | ||||||
Series 2022-LBA6, Class C, 6.49% (1 mo. Term SOFR + 1.60%), 01/15/2039(b)(d) | 1,215,000 | 1,162,878 | ||||||
CarMax Auto Owner Trust, Series 2022-4, Class A4, 5.70%, 07/17/2028 | 7,031,000 | 7,240,043 | ||||||
CCG Receivables Trust, | ||||||||
Series 2019-2, Class B, 2.55%, 03/15/2027(b) | 1,303,840 | 1,302,275 | ||||||
Series 2019-2, Class C, 2.89%, 03/15/2027(b) | 900,000 | 898,911 | ||||||
CD Mortgage Trust, Series 2017- CD6, Class XA, IO, 1.02%, 11/13/2050(h) | 10,077,873 | 264,972 | ||||||
Cedar Funding IX CLO Ltd., Series 2018-9A, Class A1, 6.23% (3 mo. USD LIBOR + 0.98%), 04/20/2031(b)(d) | 3,687,000 | 3,653,227 |
Principal Amount | Value | |||||||
Chase Home Lending Mortgage Trust, Series 2019-ATR1, Class A15, 4.00%, 04/25/2049(b)(k) | $ | 73,060 | $ | 69,304 | ||||
Chase Mortgage Finance Trust, | 402,205 | 352,749 | ||||||
CIFC Funding Ltd. (Cayman Islands), | ||||||||
Series 2014-5A, Class A1R2, 6.46% (3 mo. USD LIBOR + 1.20%), 10/17/2031(b)(d) | 1,497,000 | 1,485,826 | ||||||
Series 2016-1A, Class ARR, 5.90% (3 mo. USD LIBOR + 1.08%), 10/21/2031(b)(d) | 1,538,000 | 1,515,984 | ||||||
Citigroup Commercial Mortgage Trust, | ||||||||
Series 2013-GC17, Class XA, IO, 1.13%, 11/10/2046(h) | 11,131,876 | 17,527 | ||||||
Series 2014-GC21, Class AA, 3.48%, 05/10/2047 | 258,898 | 255,646 | ||||||
Series 2017-C4, Class XA, IO, 1.17%, 12/10/2050(h) | 25,900,449 | 845,929 | ||||||
Citigroup Mortgage Loan Trust, | ||||||||
Series 2006-AR1, Class 1A1, 7.11% (1 yr. U.S. Treasury Yield Curve Rate + 2.40%), 10/25/2035(d) | 645,008 | 621,378 | ||||||
Series 2021-INV3, Class A3, 2.50%, 05/25/2051(b)(k) | 3,696,830 | 3,055,024 | ||||||
COLT Mortgage Loan Trust, | ||||||||
Series 2020-2, Class A1, 1.85%, 03/25/2065(b)(k) | 102,010 | 100,603 | ||||||
Series 2021-5, Class A1, 1.73%, 11/26/2066(b)(k) | 1,895,862 | 1,618,636 | ||||||
Series 2022-1, Class A1, 2.28%, 12/27/2066(b)(k) | 2,720,591 | 2,400,073 | ||||||
Series 2022-2, Class A1, 2.99%, 02/25/2067(b)(l) | 2,645,620 | 2,405,470 | ||||||
Series 2022-3, Class A1, 3.90%, 02/25/2067(b)(k) | 3,659,464 | 3,442,097 | ||||||
COMM Mortgage Trust, | ||||||||
Series 2014-CR20, Class ASB, 3.31%, 11/10/2047 | 294,122 | 287,508 | ||||||
Series 2014-LC15, Class AM, 4.20%, 04/10/2047 | 2,865,000 | 2,795,336 | ||||||
Series 2014-UBS6, Class AM, 4.05%, 10/12/2047 | 5,720,000 | 5,417,479 | ||||||
Credit Suisse Mortgage Capital Trust, | ||||||||
Series 2021-NQM1, Class A1, 0.81%, 05/25/2065(b)(k) | 650,526 | 555,816 | ||||||
Series 2021-NQM2, Class A1, 1.18%, 02/25/2066(b)(k) | 868,085 | 741,238 | ||||||
Series 2022-ATH1, Class A1A, 2.87%, 01/25/2067(b)(k) | 3,549,891 | 3,322,653 | ||||||
Series 2022-ATH1, Class A1B, 3.35%, 01/25/2067(b)(k) | 1,890,000 | 1,704,008 | ||||||
Series 2022-ATH2, Class A1, 4.55%, 05/25/2067(b)(k) | 3,754,491 | 3,681,852 | ||||||
CSAIL Commercial Mortgage Trust, Series 2020-C19, Class A3, 2.56%, 03/15/2053 | 10,613,000 | 9,056,079 | ||||||
CSMC Mortgage-Backed Trust, | 585,294 | 312,695 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Core Bond Fund |
Principal Amount | Value | |||||||
Dryden 93 CLO Ltd., | $ | 1,078,634 | $ | 1,060,872 | ||||
Ellington Financial Mortgage Trust, | ||||||||
Series 2020-1, Class A1, 2.01%, 05/25/2065(b)(k) | 205,567 | 197,184 | ||||||
Series 2021-1, Class A1, 0.80%, 02/25/2066(b)(k) | 315,758 | 267,643 | ||||||
Series 2022-1, Class A1, 2.21%, 01/25/2067(b)(k) | 2,570,873 | 2,206,801 | ||||||
Series 2022-3, Class A1, 5.00%, 08/25/2067(b)(l) | 3,492,782 | 3,425,425 | ||||||
Extended Stay America Trust, | 1,688,813 | 1,640,883 | ||||||
First Horizon Alternative Mortgage Securities Trust, | 360,159 | 161,779 | ||||||
Flagstar Mortgage Trust, | ||||||||
Series 2021-11IN, Class A6, 3.70%, 11/25/2051(b)(k) | 5,876,214 | 5,146,196 | ||||||
Series 2021-8INV, Class A6, 2.50%, 09/25/2051(b)(k) | 1,262,135 | 1,108,480 | ||||||
FREMF Mortgage Trust, | ||||||||
Series 2015-K44, Class B, 3.85%, 01/25/2048(b)(k) | 1,175,000 | 1,138,892 | ||||||
Series 2017-K62, Class B, 4.01%, 01/25/2050(b)(k) | 1,040,000 | 984,950 | ||||||
Series 2017-K724, Class B, 5.26%, 12/25/2049(b)(k) | 780,000 | 766,457 | ||||||
GoldenTree Loan Management US CLO 1 Ltd., | 1,712,000 | 1,690,523 | ||||||
GoldenTree Loan Management US CLO 5 Ltd., | 2,190,000 | 2,162,332 | ||||||
Golub Capital Partners CLO 40(A) Ltd., Series 2019-40A, Class AR, 6.35% (3 mo. USD LIBOR + 1.09%), 01/25/2032(b)(d) | 5,264,000 | 5,180,518 | ||||||
GS Mortgage Securities Corp. | 1,615,000 | 1,604,865 | ||||||
GS Mortgage Securities Trust, | ||||||||
Series 2013-GC16, Class AS, 4.65%, 11/10/2046 | 974,215 | 961,548 | ||||||
Series 2014-GC18, Class AAB, 3.65%, 01/10/2047 | 168,809 | 167,493 | ||||||
Series 2020-GC47, Class A5, 2.38%, 05/12/2053 | 3,780,000 | 3,195,935 | ||||||
GS Mortgage-Backed Securities Trust, Series 2021-INV1, Class A6, 2.50%, 12/25/2051(b)(k) | 3,098,102 | 2,728,555 | ||||||
GSR Mortgage Loan Trust, Series 2005-AR4, Class 6A1, 3.65%, 07/25/2035(k) | 62,363 | 57,597 |
Principal Amount | Value | |||||||
Hertz Vehicle Financing III L.P., | ||||||||
Series 2021-2A, Class A, 1.68%, 12/27/2027(b) | $ | 1,322,000 | $ | 1,177,596 | ||||
Series 2021-2A, Class B, 2.12%, 12/27/2027(b) | 705,000 | 623,525 | ||||||
Hertz Vehicle Financing LLC, | ||||||||
Series 2021-1A, Class A, 1.21%, 12/26/2025(b) | 978,000 | 917,615 | ||||||
Series 2021-1A, Class B, 1.56%, 12/26/2025(b) | 432,000 | 403,890 | ||||||
JP Morgan Chase Commercial Mortgage Securities Trust, | ||||||||
Series 2013-C16, Class AS, 4.52%, 12/15/2046 | 3,490,000 | 3,442,378 | ||||||
Series 2013-LC11, Class AS, 3.22%, 04/15/2046 | 1,722,000 | 1,596,203 | ||||||
Series 2014-C20, Class AS, 4.04%, 07/15/2047 | 3,950,000 | 3,809,891 | ||||||
JP Morgan Mortgage Trust, | ||||||||
Series 2007-A1, Class 5A1, 4.00%, 07/25/2035(k) | 213,266 | 206,509 | ||||||
Series 2021-LTV2, Class A1, 2.52%, 05/25/2052(b)(k) | 4,414,311 | 3,663,004 | ||||||
JPMBB Commercial Mortgage Securities Trust, | ||||||||
Series 2014-C25, Class AS, 4.07%, 11/15/2047 | 6,036,000 | 5,799,094 | ||||||
Series 2015-C27, Class XA, IO, 1.28%, 02/15/2048(h) | 31,359,280 | 478,652 | ||||||
Series 2015-C28, Class AS, 3.53%, 10/15/2048 | 3,400,000 | 3,229,038 | ||||||
KKR CLO 30 Ltd., Series 30A, Class A1R, 6.28% (3 mo. USD LIBOR + 1.02%), | 3,771,000 | 3,731,910 | ||||||
Lehman Structured Securities Corp., Series 2002-GE1, Class A, 0.00%, 07/26/2024(b)(k) | 5,855 | 456 | ||||||
Life Mortgage Trust, | ||||||||
Series 2021-BMR, Class A, 5.70% (1 mo. Term SOFR + 0.81%), 03/15/2038(b)(d) | 2,255,916 | 2,198,343 | ||||||
Series 2021-BMR, Class B, 5.88% (1 mo. Term SOFR + 0.99%), 03/15/2038(b)(d) | 3,671,393 | 3,551,032 | ||||||
Series 2021-BMR, Class C, 6.10% (1 mo. Term SOFR + 1.21%), 03/15/2038(b)(d) | 1,543,263 | 1,480,056 | ||||||
Madison Park Funding XLVIII Ltd., | 10,755,000 | 10,626,661 | ||||||
Med Trust, | ||||||||
Series 2021-MDLN, Class A, 5.90% (1 mo. USD LIBOR + 0.95%), 11/15/2038(b)(d) | 2,652,121 | 2,576,339 | ||||||
Series 2021-MDLN, Class B, 6.40% (1 mo. USD LIBOR + 1.45%), 11/15/2038(b)(d) | 2,595,290 | 2,503,766 | ||||||
Mello Mortgage Capital Acceptance Trust, | ||||||||
Series 2021-INV2, Class A4, 2.50%, 08/25/2051(b)(k) | 2,382,770 | 2,101,214 | ||||||
Series 2021-INV3, Class A4, 2.50%, 10/25/2051(b)(k) | 2,338,008 | 2,055,237 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Core Bond Fund |
Principal Amount | Value | |||||||
MFA Trust, | ||||||||
Series 2021-AEI1, Class A3, 2.50%, 08/25/2051(b)(k) | $ 2,655,544 | $ 2,194,516 | ||||||
Series 2021-AEI1, Class A4, 2.50%, 08/25/2051(b)(k) | 3,191,734 | 2,806,475 | ||||||
Series 2021-INV2, Class A1, 1.91%, 11/25/2056(b)(k) | 3,124,528 | 2,692,697 | ||||||
MHP Commercial Mortgage Trust, | ||||||||
Series 2021-STOR, Class A, 5.65% (1 mo. USD LIBOR + 0.70%), 07/15/2038(b)(d) | 1,945,000 | 1,882,376 | ||||||
Series 2021-STOR, Class B, 5.85% (1 mo. USD LIBOR + 0.90%), 07/15/2038(b)(d) | 1,460,000 | 1,401,110 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, | ||||||||
Series 2013-C9, Class AS, 3.46%, 05/15/2046 | 3,532,310 | 3,518,888 | ||||||
Series 2014-C19, Class AS, 3.83%, 12/15/2047 | 5,035,000 | 4,828,686 | ||||||
Morgan Stanley Capital I Trust, Series 2017-HR2, Class XA, IO, 0.99%, 12/15/2050(h) | 10,638,760 | 349,532 | ||||||
Neuberger Berman Loan Advisers CLO 24 Ltd., Series 2017-24A, Class AR, 6.29% (3 mo. USD LIBOR + 1.02%), 04/19/2030(b)(d) | 4,833,502 | 4,796,395 | ||||||
Neuberger Berman Loan Advisers CLO 40 Ltd., Series 2021-40A, Class A, 6.32% (3 mo. USD LIBOR + 1.06%), 04/16/2033(b)(d) | 3,402,000 | 3,368,538 | ||||||
New Residential Mortgage Loan Trust, Series 2022-NQM2, Class A1, 3.08%, 03/27/2062(b)(k) | 2,463,175 | 2,252,581 | ||||||
OBX Trust, | ||||||||
Series 2022-NQM1, Class A1, 2.31%, 11/25/2061(b)(k) | 3,195,445 | 2,765,967 | ||||||
Series 2022-NQM2, Class A1, 2.95%, 01/25/2062(b)(k) | 3,787,068 | 3,455,180 | ||||||
Series 2022-NQM2, Class A1A, 2.78%, 01/25/2062(b)(l) | 2,428,137 | 2,243,963 | ||||||
Series 2022-NQM2, Class A1B, 3.38%, 01/25/2062(b)(l) | 2,305,000 | 2,007,435 | ||||||
Series 2022-NQM8, Class A1, 6.10%, 09/25/2062(b)(l) | 5,067,246 | 5,073,047 | ||||||
Oceanview Mortgage Trust, Series 2021-3, Class A5, 2.50%, 07/25/2051(b)(k) | 2,719,235 | 2,406,447 | ||||||
OCP CLO Ltd. (Cayman Islands), | ||||||||
Series 2017-13A, Class A1AR, 6.22% (3 mo. USD LIBOR + 0.96%), 07/15/2030(b)(d) | 3,192,000 | 3,163,221 | ||||||
Series 2020-8RA, Class A1, 6.48% (3 mo. USD LIBOR + 1.22%), 01/17/2032(b)(d) | 6,027,000 | 5,960,842 | ||||||
Octagon Investment Partners 31 Ltd., Series 2017-1A, Class AR, 6.30% (3 mo. USD LIBOR + 1.05%), 07/20/2030(b)(d) | 5,122,024 | 5,081,447 | ||||||
Octagon Investment Partners 49 Ltd., Series 2020-5A, Class A1, 6.48% (3 mo. USD LIBOR + 1.22%), 01/15/2033(b)(d) | 5,507,000 | 5,459,128 |
Principal Amount | Value | |||||||
OHA Loan Funding Ltd., Series 2016-1A, Class AR, 6.51% | $ 5,076,061 | $ 5,028,346 | ||||||
Onslow Bay Mortgage Loan Trust, Series 2021-NQM4, Class A1, 1.96%, 10/25/2061(b)(k) | 3,763,201 | 3,151,263 | ||||||
Prestige Auto Receivables Trust, Series 2019-1A, Class C, 2.70%, 10/15/2024(b) | 259,223 | 258,820 | ||||||
Progress Residential Trust, | ||||||||
Series 2020-SFR1, Class A, 1.73%, 04/17/2037(b) | 6,794,581 | 6,345,494 | ||||||
Series 2021-SFR10, Class A, 2.39%, 12/17/2040(b) | 2,408,328 | 2,100,372 | ||||||
Series 2022-SFR5, Class A, 4.45%, 06/17/2039(b) | 3,203,663 | 3,099,172 | ||||||
Race Point VIII CLO Ltd., Series 2013-8A, Class AR2, 5.96% | 4,002,432 | 3,975,115 | ||||||
Residential Accredit Loans, Inc. Trust, | ||||||||
Series 2006-QS13, Class 1A8, 6.00%, 09/25/2036 | 45,319 | 34,693 | ||||||
Series 2007-QS6, Class A28, 5.75%, 04/25/2037 | 249,420 | 199,406 | ||||||
Residential Mortgage Loan Trust, Series 2020-1, Class A1, 2.38%, 01/26/2060(b)(k) | 446,035 | 425,971 | ||||||
RUN Trust, Series 2022-NQM1, Class A1, 4.00%, 03/25/2067(b) | 2,068,724 | 1,944,297 | ||||||
Santander Drive Auto Receivables Trust, | ||||||||
Series 2019-2, Class D, 3.22%, 07/15/2025 | 848,877 | 845,810 | ||||||
Series 2019-3, Class D, 2.68%, 10/15/2025 | 566,995 | 565,132 | ||||||
SG Residential Mortgage Trust, | ||||||||
Series 2022-1, Class A1, 3.17%, 03/27/2062(b)(k) | 4,334,537 | 3,974,181 | ||||||
Series 2022-1, Class A2, 3.58%, 03/27/2062(b)(k) | 1,828,488 | 1,667,809 | ||||||
Sonic Capital LLC, | ||||||||
Series 2021-1A, Class A2I, 2.19%, 08/20/2051(b) | 1,830,550 | 1,514,146 | ||||||
Series 2021-1A, Class A2II, 2.64%, 08/20/2051(b) | 1,791,183 | 1,393,394 | ||||||
STAR Trust, | ||||||||
Series 2021-1, Class A1, 1.22%, 05/25/2065(b)(k) | 1,870,139 | 1,632,227 | ||||||
Series 2021-SFR1, Class A, 5.55% (1 mo. Term SOFR + 0.71%), 04/17/2038(b)(d) | 11,591,092 | 11,268,018 | ||||||
Starwood Mortgage Residential Trust, | ||||||||
Series 2020-1, Class A1, 2.28%, 02/25/2050(b)(k) | 131,232 | 125,128 | ||||||
Series 2021-6, Class A1, 1.92%, 11/25/2066(b)(k) | 4,604,147 | 3,854,309 | ||||||
Series 2022-1, Class A1, 2.45%, 12/25/2066(b)(k) | 3,380,660 | 2,940,359 | ||||||
Symphony CLO XXII Ltd., Series 2020-22A, Class A1A, 6.55% (3 mo. USD LIBOR + 1.29%), 04/18/2033(b)(d) | 3,000,000 | 2,974,485 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Core Bond Fund |
Principal Amount | Value | |||||||
Synchrony Card Funding LLC, Series 2022-A2, Class A, 3.86%, 07/15/2028 | $ 5,365,000 | $ 5,277,756 | ||||||
Textainer Marine Containers VII Ltd., Series 2021-2A, Class A, 2.23%, 04/20/2046(b) | 4,334,400 | 3,800,485 | ||||||
TICP CLO XV Ltd., Series 2020-15A, Class A, 6.53% | 4,685,000 | 4,647,248 | ||||||
Tricon American Homes Trust, Series 2020-SFR2, Class A, 1.48%, 11/17/2039(b) | 4,243,524 | 3,660,157 | ||||||
UBS Commercial Mortgage Trust, Series 2017-C5, Class XA, IO, 1.22%, 11/15/2050(h) | 15,668,699 | 485,949 | ||||||
Verus Securitization Trust, | ||||||||
Series 2020-1, Class A1, 2.42%, 01/25/2060(b)(l) | 808,189 | 766,213 | ||||||
Series 2020-1, Class A2, 2.64%, 01/25/2060(b)(l) | 1,018,416 | 968,120 | ||||||
Series 2020-INV1, Class A1, 0.33%, 03/25/2060(b)(k) | 159,407 | 155,008 | ||||||
Series 2021-1, Class A1B, 1.32%, 01/25/2066(b)(k) | 875,386 | 745,406 | ||||||
Series 2021-7, Class A1, 1.83%, 10/25/2066(b)(k) | 3,652,163 | 3,141,991 | ||||||
Series 2021-R1, Class A1, 0.82%, 10/25/2063(b)(k) | 1,208,043 | 1,093,059 | ||||||
Series 2022-1, Class A1, 2.72%, 01/25/2067(b)(l) | 2,513,793 | 2,272,809 | ||||||
Series 2022-3, Class A1, 4.13%, 02/25/2067(b)(l) | 3,890,567 | 3,686,946 | ||||||
Series 2022-7, Class A1, 5.15%, 07/25/2067(b)(l) | 1,308,937 | 1,289,084 | ||||||
Series 2022-INV2, Class A1, 6.79%, 10/25/2067(b)(l) | 1,942,265 | 1,960,210 | ||||||
Visio Trust, Series 2020-1R, Class A1, 1.31%, 11/25/2055(b) | 838,904 | 763,404 | ||||||
WaMu Mortgage Pass-Through Ctfs. Trust, | ||||||||
Series 2003-AR10, Class A7, 4.23%, 10/25/2033(k) | 197,863 | 185,352 | ||||||
Series 2005-AR14, Class 1A4, 3.90%, 12/25/2035(k) | 281,852 | 263,490 | ||||||
Series 2005-AR16, Class 1A1, 3.86%, 12/25/2035(k) | 293,611 | 265,333 | ||||||
Wells Fargo Commercial Mortgage Trust, | ||||||||
Series 2015-NXS1, Class ASB, 2.93%, 05/15/2048 | 1,160,250 | 1,141,585 | ||||||
Series 2017-C42, Class XA, IO, 1.01%, 12/15/2050(h) | 17,782,146 | 577,767 | ||||||
WFRBS Commercial Mortgage Trust, | ||||||||
Series 2013-C14, Class AS, 3.49%, 06/15/2046 | 2,330,000 | 2,147,839 | ||||||
Series 2014-C20, Class AS, 4.18%, 05/15/2047 | 1,693,000 | 1,642,714 | ||||||
Series 2014-C25, Class AS, 3.98%, 11/15/2047 | 5,225,000 | 5,021,291 | ||||||
Series 2014-LC14, Class AS, 4.35%, 03/15/2047(k) | 2,174,838 | 2,127,133 |
Principal Amount | Value | |||||||
Zaxby’s Funding LLC, Series 2021-1A, Class A2, 3.24%, 07/30/2051(b) | $ 5,752,537 | $ 4,847,434 | ||||||
Total Asset-Backed Securities |
| 410,153,874 | ||||||
U.S. Treasury Securities–15.99% |
| |||||||
U.S. Treasury Bonds–4.09% |
| |||||||
3.88%, 02/15/2043 | 31,974,700 | 32,321,926 | ||||||
4.00%, 11/15/2052 | 42,329,200 | 44,954,933 | ||||||
77,276,859 | ||||||||
U.S. Treasury Notes–11.90% |
| |||||||
3.88%, 03/31/2025 | 79,927,900 | 79,609,437 | ||||||
3.75%, 04/15/2026 | 65,808,400 | 65,834,106 | ||||||
3.63%, 03/31/2028 | 44,086,800 | 44,329,622 | ||||||
3.63%, 03/31/2030 | 2,578,300 | 2,602,471 | ||||||
3.50%, 02/15/2033 | 32,403,000 | 32,597,924 | ||||||
224,973,560 | ||||||||
Total U.S. Treasury Securities |
| 302,250,419 | ||||||
Agency Credit Risk Transfer Notes–0.65% |
| |||||||
Fannie Mae Connecticut Avenue Securities, | ||||||||
Series 2022-R03, Class 1M1, 6.92% (30 Day Average SOFR + 2.10%), | 3,700,540 | 3,712,673 | ||||||
Series 2022-R04, Class 1M1, 6.82% (30 Day Average SOFR + 2.00%), | 1,920,697 | 1,923,390 | ||||||
Series 2023-R02, Class 1M1, 7.12% (30 Day Average SOFR + 2.30%), | 1,374,293 | 1,381,380 | ||||||
Freddie Mac, | ||||||||
Series 2014-DN3, Class M3, STACR®, 9.02% (1 mo. USD LIBOR + 4.00%), 08/25/2024(d) | 512,327 | 518,809 | ||||||
Series 2022-DNA3, Class M1A, STACR®, 6.82% (30 Day Average SOFR + 2.00%), 04/25/2042(b)(d) | 2,721,462 | 2,731,154 | ||||||
Series 2022-DNA6, Class M1, STACR®, 6.97% (30 Day Average SOFR + 2.15%), 09/25/2042(b)(d) | 901,829 | 906,389 | ||||||
Series 2023-DNA1, Class M1, STACR®, 6.92% (30 Day Average SOFR + 2.10%), 03/25/2043(b)(d) | 1,146,648 | 1,150,282 | ||||||
Total Agency Credit Risk Transfer Notes |
| 12,324,077 | ||||||
Municipal Obligations–0.62% |
| |||||||
California (State of) Health Facilities Financing Authority (Social Bonds), |
| |||||||
Series 2022, RB, 4.19%, 06/01/2037 | 1,370,000 | 1,302,172 | ||||||
Series 2022, RB, 4.35%, 06/01/2041 | 995,000 | 933,926 | ||||||
California State University, | ||||||||
Series 2021 B, Ref. RB, 2.72%, 11/01/2052 | 1,725,000 | 1,208,507 | ||||||
Series 2021 B, Ref. RB, 2.94%, 11/01/2052 | 2,585,000 | 1,892,583 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Core Bond Fund |
Principal Amount | Value | |||||||
Texas (State of) Transportation Commission (Central Texas Turnpike System), Series 2020 C, Ref. RB, 3.03%, 08/15/2041 | $ 4,965,000 | $ 3,698,803 | ||||||
Texas Natural Gas Securitization Finance Corp., | ||||||||
Series 2023 A-1, RB, 5.10%, 04/01/2035 | 1,295,000 | 1,360,887 | ||||||
Series 2023 A-2, RB, 5.17%, 04/01/2041 | 1,295,000 | 1,411,140 | ||||||
Total Municipal Obligations (Cost $14,230,000) | 11,808,018 | |||||||
Shares | ||||||||
Common Stocks & Other Equity Interests–0.00% |
| |||||||
Agricultural Products & Services–0.00% |
| |||||||
Locus Agriculture Solutions, Inc., Wts., expiring 12/31/2032 | 28 | 0 |
Shares | Value | |||||||
Money Market Funds–19.29% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(n)(o) | 128,331,970 | $ | 128,331,970 | |||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(n)(o) | 89,546,581 | 89,573,445 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(n)(o) | 146,665,109 | 146,665,109 | ||||||
| ||||||||
Total Money Market Funds |
| 364,570,524 | ||||||
| ||||||||
TOTAL INVESTMENTS IN |
| 2,358,631,083 | ||||||
| ||||||||
OTHER ASSETS LESS |
| (468,529,718 | ) | |||||
| ||||||||
NET ASSETS–100.00% |
| $ | 1,890,101,365 | |||||
|
Investment Abbreviations:
ARM | – Adjustable Rate Mortgage | |
Ctfs. | – Certificates | |
IO | – Interest Only | |
LIBOR | – London Interbank Offered Rate | |
PO | – Principal Only | |
RB | – Revenue Bonds | |
Ref. | – Refunding | |
REIT | – Real Estate Investment Trust | |
REMICs | – Real Estate Mortgage Investment Conduits | |
SOFR | – Secured Overnight Financing Rate | |
STACR® | – Structured Agency Credit Risk | |
STRIPS | – Separately Traded Registered Interest and Principal Security | |
TBA | – To Be Announced | |
USD | – U.S. Dollar | |
Wts. | – Warrants |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Core Bond 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) | 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, 2023 was $486,411,144, which represented 25.73% of the Fund’s Net Assets. |
(c) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(d) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2023. |
(e) | Perpetual bond with no specified maturity date. |
(f) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(g) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. |
(h) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on April 30, 2023. |
(i) | Zero coupon bond issued at a discount. |
(j) | Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1K. |
(k) | Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on April 30, 2023. |
(l) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(m) | Non-income producing security. |
(n) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ 42,417,738 | $275,521,937 | $(189,607,705 | ) | $ - | $ - | $128,331,970 | $1,883,949 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 28,202,765 | 196,801,383 | (135,434,074 | ) | 6,306 | (2,935) | 89,573,445 | 1,343,403 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 48,477,414 | 314,882,214 | (216,694,519 | ) | - | - | 146,665,109 | 2,150,305 | ||||||||||||||||||||
Total | $119,097,917 | $787,205,534 | $(541,736,298 | ) | $6,306 | $(2,935) | $364,570,524 | $5,377,657 |
(o) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
Open Futures Contracts(a) | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 1,131 | June-2023 | $ | 124,118,415 | $ | 15,154 | $ | 15,154 | ||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Notes | 913 | June-2023 | 105,180,453 | (223,416 | ) | (223,416 | ) | |||||||||||||
| ||||||||||||||||||||
U.S. Treasury Long Bonds | 421 | June-2023 | 55,427,281 | 2,038,078 | 2,038,078 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury Ultra Bonds | 169 | June-2023 | 23,897,656 | 736,484 | 736,484 | |||||||||||||||
| ||||||||||||||||||||
Subtotal–Long Futures Contracts | 2,566,300 | 2,566,300 | ||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 2 Year Notes | 60 | June-2023 | (12,369,844 | ) | (6,562 | ) | (6,562 | ) | ||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Ultra Notes | 1,021 | June-2023 | (124,003,640 | ) | (1,968,939 | ) | (1,968,939 | ) | ||||||||||||
| ||||||||||||||||||||
Subtotal–Short Futures Contracts | (1,975,501 | ) | (1,975,501 | ) | ||||||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | 590,799 | $ | 590,799 | ||||||||||||||||
|
(a) | Futures contracts collateralized by $5,274,044 cash held with Merrill Lynch International, the futures commission merchant. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Core Bond Fund |
Portfolio Composition
By security type, based on Net Assets
as of April 30, 2023
U.S. Dollar Denominated Bonds & Notes | 39.58 | % | |||
U.S. Government Sponsored Agency Mortgage-Backed Securities | 26.96 | ||||
Asset-Backed Securities | 21.70 | ||||
U.S. Treasury Securities | 15.99 | ||||
Security Types Each Less Than 1% of Portfolio | 1.27 | ||||
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 Core Bond Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 1,994,060,559 | ||
| ||||
Investments in affiliated money market funds, at value | 364,570,524 | |||
| ||||
Other investments: | ||||
Variation margin receivable – futures contracts | 418,373 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral – exchange-traded futures contracts | 5,274,044 | |||
| ||||
Cash collateral – TBA commitments | 10,853,250 | |||
| ||||
Cash | 2,043,010 | |||
| ||||
Receivable for: | ||||
Investments sold | 30,574,460 | |||
| ||||
Fund shares sold | 2,706,005 | |||
| ||||
Dividends | 1,515,199 | |||
| ||||
Interest | 11,262,766 | |||
| ||||
Principal paydowns | 14,638 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 144,310 | |||
| ||||
Other assets | 63,337 | |||
| ||||
Total assets | 2,423,500,475 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 31,407,870 | |||
| ||||
TBA sales commitment | 492,767,619 | |||
| ||||
Dividends | 1,298,483 | |||
| ||||
Fund shares reacquired | 1,762,081 | |||
| ||||
Due to broker | 5,184,000 | |||
| ||||
Accrued fees to affiliates | 737,968 | |||
| ||||
Accrued other operating expenses | 96,779 | |||
| ||||
Trustee deferred compensation and retirement plans | 144,310 | |||
| ||||
Total liabilities | 533,399,110 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,890,101,365 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 2,175,153,584 | ||
| ||||
Distributable earnings (loss) | (285,052,219 | ) | ||
| ||||
$ | 1,890,101,365 | |||
| ||||
Net Assets: | ||||
Class A | $ | 613,079,329 | ||
| ||||
Class C | $ | 42,835,270 | ||
| ||||
Class R | $ | 76,279,526 | ||
| ||||
Class Y | $ | 829,619,055 | ||
| ||||
Class R5 | $ | 14,271 | ||
| ||||
Class R6 | $ | 328,273,914 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 106,185,137 | |||
| ||||
Class C | 7,412,828 | |||
| ||||
Class R | 13,216,006 | |||
| ||||
Class Y | 144,563,230 | |||
| ||||
Class R5 | 2,472 | |||
| ||||
Class R6 | 56,896,705 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 5.77 | ||
| ||||
Maximum offering price per share | $ | 6.03 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 5.78 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 5.77 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 5.74 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 5.77 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 5.77 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 | Invesco Core Bond Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest | $ | 33,201,407 | ||
| ||||
Dividends from affiliated money market funds | 5,377,657 | |||
| ||||
Total investment income | 38,579,064 | |||
| ||||
Expenses: | ||||
Advisory fees | 2,872,172 | |||
| ||||
Administrative services fees | 121,245 | |||
| ||||
Custodian fees | 14,164 | |||
| ||||
Distribution fees: | ||||
Class A | 723,674 | |||
| ||||
Class C | 214,754 | |||
| ||||
Class R | 180,205 | |||
| ||||
Transfer agent fees – A, C, R and Y | 1,126,374 | |||
| ||||
Transfer agent fees – R5 | 4 | |||
| ||||
Transfer agent fees – R6 | 44,794 | |||
| ||||
Trustees’ and officers’ fees and benefits | 10,734 | |||
| ||||
Registration and filing fees | 90,194 | |||
| ||||
Reports to shareholders | 46,015 | |||
| ||||
Professional services fees | 48,653 | |||
| ||||
Other | 16,069 | |||
| ||||
Total expenses | 5,509,051 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (784,638 | ) | ||
| ||||
Net expenses | 4,724,413 | |||
| ||||
Net investment income | 33,854,651 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (40,506,056 | ) | ||
| ||||
Affiliated investment securities | (2,935 | ) | ||
| ||||
Futures contracts | (752,426 | ) | ||
| ||||
Swap agreements | 209,876 | |||
| ||||
(41,051,541 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 120,877,881 | |||
| ||||
Affiliated investment securities | 6,306 | |||
| ||||
Futures contracts | (266,858 | ) | ||
| ||||
120,617,329 | ||||
| ||||
Net realized and unrealized gain | 79,565,788 | |||
| ||||
Net increase in net assets resulting from operations | $ | 113,420,439 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 | Invesco Core Bond Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 33,854,651 | $ | 38,737,628 | ||||
| ||||||||
Net realized gain (loss) | (41,051,541 | ) | (181,509,479 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 120,617,329 | (178,899,691 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 113,420,439 | (321,671,542 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (13,059,635 | ) | (16,307,502 | ) | ||||
| ||||||||
Class C | (791,841 | ) | (896,446 | ) | ||||
| ||||||||
Class R | (1,506,970 | ) | (1,685,982 | ) | ||||
| ||||||||
Class Y | (15,653,340 | ) | (16,570,288 | ) | ||||
| ||||||||
Class R5 | (330 | ) | (416 | ) | ||||
| ||||||||
Class R6 | (7,097,240 | ) | (8,105,449 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (38,109,356 | ) | (43,566,083 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 19,444,842 | (52,098,582 | ) | |||||
| ||||||||
Class C | (820,528 | ) | (15,137,193 | ) | ||||
| ||||||||
Class R | 4,706,090 | 72,409 | ||||||
| ||||||||
Class Y | 256,553,097 | (45,598,670 | ) | |||||
| ||||||||
Class R6 | 30,211,989 | 35,989,122 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | 310,095,490 | (76,772,914 | ) | |||||
| ||||||||
Net increase (decrease) in net assets | 385,406,573 | (442,010,539 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,504,694,792 | 1,946,705,331 | ||||||
| ||||||||
End of period | $ | 1,890,101,365 | $ | 1,504,694,792 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 | Invesco Core Bond Fund |
(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 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 net assets expenses absorbed | Ratio of fee waivers and/ | Ratio of net to average | Portfolio turnover (d)(e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $5.51 | $0.11 | $ 0.28 | $ 0.39 | $(0.13 | ) | $ – | $(0.13 | ) | $5.77 | 7.05 | % | $613,079 | 0.68 | %(f) | 0.79 | %(f) | 3.92 | %(f) | 273 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.84 | 0.13 | (1.31 | ) | (1.18 | ) | (0.15 | ) | – | (0.15 | ) | 5.51 | (17.43 | ) | 566,064 | 0.69 | 0.79 | 2.17 | 413 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 7.05 | 0.09 | (0.08 | ) | 0.01 | (0.10 | ) | (0.12 | ) | (0.22 | ) | 6.84 | 0.15 | 760,690 | 0.72 | 0.79 | 1.23 | 526 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 7.03 | 0.14 | 0.37 | 0.51 | (0.15 | ) | (0.34 | ) | (0.49 | ) | 7.05 | 7.36 | (g) | 763,731 | 0.74 | (g) | 0.80 | (g) | 1.98 | (g) | 397 | |||||||||||||||||||||||||||||||||||||||||||||||||
Ten months ended 10/31/19 | 6.57 | 0.17 | 0.46 | 0.63 | (0.17 | ) | – | (0.17 | ) | 7.03 | 9.73 | 563,054 | 0.75 | (f) | 0.81 | (f) | 2.95 | (f) | 86 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/18 | 6.86 | 0.21 | (0.29 | ) | (0.08 | ) | (0.21 | ) | – | (0.21 | ) | 6.57 | (1.12 | ) | 478,723 | 0.75 | 0.80 | 3.18 | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/17 | 6.76 | 0.18 | 0.11 | 0.29 | (0.19 | ) | – | (0.19 | ) | 6.86 | 4.29 | 561,713 | 0.77 | 0.87 | 2.62 | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.51 | 0.09 | 0.28 | 0.37 | (0.10 | ) | – | (0.10 | ) | 5.78 | 6.83 | 42,835 | 1.43 | (f) | 1.54 | (f) | 3.17 | (f) | 273 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.84 | 0.09 | (1.32 | ) | (1.23 | ) | (0.10 | ) | – | (0.10 | ) | 5.51 | (18.07 | ) | 41,620 | 1.44 | 1.54 | 1.42 | 413 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 7.05 | 0.03 | (0.07 | ) | (0.04 | ) | (0.05 | ) | (0.12 | ) | (0.17 | ) | 6.84 | (0.64 | ) | 68,167 | 1.48 | 1.54 | 0.47 | 526 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 7.03 | 0.08 | 0.37 | 0.45 | (0.09 | ) | (0.34 | ) | (0.43 | ) | 7.05 | 6.51 | 94,978 | 1.55 | 1.56 | 1.17 | 397 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ten months ended 10/31/19 | 6.58 | 0.12 | 0.46 | 0.58 | (0.13 | ) | – | (0.13 | ) | 7.03 | 8.85 | 75,026 | 1.54 | (f) | 1.56 | (f) | 2.15 | (f) | 86 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/18 | 6.87 | 0.16 | (0.29 | ) | (0.13 | ) | (0.16 | ) | – | (0.16 | ) | 6.58 | (1.90 | ) | 91,596 | 1.55 | 1.55 | 2.38 | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/17 | 6.77 | 0.12 | 0.11 | 0.23 | (0.13 | ) | – | (0.13 | ) | 6.87 | 3.43 | 109,888 | 1.60 | 1.63 | 1.79 | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.50 | 0.10 | 0.29 | 0.39 | (0.12 | ) | – | (0.12 | ) | 5.77 | 7.11 | 76,280 | 0.93 | (f) | 1.04 | (f) | 3.67 | (f) | 273 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.83 | 0.12 | (1.31 | ) | (1.19 | ) | (0.14 | ) | – | (0.14 | ) | 5.50 | (17.68 | ) | 68,228 | 0.94 | 1.04 | 1.92 | 413 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 7.04 | 0.07 | (0.08 | ) | (0.01 | ) | (0.08 | ) | (0.12 | ) | (0.20 | ) | 6.83 | (0.14 | ) | 84,671 | 0.98 | 1.04 | 0.97 | 526 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 7.03 | 0.12 | 0.36 | 0.48 | (0.13 | ) | (0.34 | ) | (0.47 | ) | 7.04 | 6.90 | 78,849 | 1.04 | 1.06 | 1.68 | 397 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ten months ended 10/31/19 | 6.57 | 0.15 | 0.47 | 0.62 | (0.16 | ) | – | (0.16 | ) | 7.03 | 9.47 | 58,568 | 1.05 | (f) | 1.07 | (f) | 2.66 | (f) | 86 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/18 | 6.86 | 0.19 | (0.29 | ) | (0.10 | ) | (0.19 | ) | – | (0.19 | ) | 6.57 | (1.41 | ) | 52,539 | 1.05 | 1.05 | 2.88 | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/17 | 6.76 | 0.16 | 0.10 | 0.26 | (0.16 | ) | – | (0.16 | ) | 6.86 | 3.95 | 61,691 | 1.10 | 1.12 | 2.29 | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.47 | 0.12 | 0.28 | 0.40 | (0.13 | ) | – | (0.13 | ) | 5.74 | 7.40 | 829,619 | 0.43 | (f) | 0.54 | (f) | 4.17 | (f) | 273 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.79 | 0.15 | (1.30 | ) | (1.15 | ) | (0.17 | ) | – | (0.17 | ) | 5.47 | (17.21 | ) | 544,605 | 0.44 | 0.54 | 2.42 | 413 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 7.00 | 0.10 | (0.07 | ) | 0.03 | (0.12 | ) | (0.12 | ) | (0.24 | ) | 6.79 | 0.43 | 721,456 | 0.43 | 0.54 | 1.52 | 526 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.99 | 0.16 | 0.36 | 0.52 | (0.17 | ) | (0.34 | ) | (0.51 | ) | 7.00 | 7.56 | 622,504 | 0.44 | 0.56 | 2.28 | 397 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ten months ended 10/31/19 | 6.53 | 0.18 | 0.47 | 0.65 | (0.19 | ) | – | (0.19 | ) | 6.99 | 10.05 | 528,791 | 0.45 | (f) | 0.56 | (f) | 3.25 | (f) | 86 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/18 | 6.82 | 0.23 | (0.29 | ) | (0.06 | ) | (0.23 | ) | – | (0.23 | ) | 6.53 | (0.84 | ) | 413,373 | 0.45 | 0.55 | 3.48 | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/17 | 6.72 | 0.20 | 0.11 | 0.31 | (0.21 | ) | – | (0.21 | ) | 6.82 | 4.60 | 343,689 | 0.48 | 0.62 | 2.93 | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.50 | 0.12 | 0.28 | 0.40 | (0.13 | ) | – | (0.13 | ) | 5.77 | 7.38 | 14 | 0.41 | (f) | 0.43 | (f) | 4.19 | (f) | 273 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.84 | 0.15 | (1.32 | ) | (1.17 | ) | (0.17 | ) | – | (0.17 | ) | 5.50 | (17.36 | ) | 14 | 0.44 | 0.45 | 2.42 | 413 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 7.05 | 0.11 | (0.08 | ) | 0.03 | (0.12 | ) | (0.12 | ) | (0.24 | ) | 6.84 | 0.46 | 17 | 0.41 | 0.43 | 1.54 | 526 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 7.03 | 0.16 | 0.37 | 0.53 | (0.17 | ) | (0.34 | ) | (0.51 | ) | 7.05 | 7.71 | 17 | 0.43 | 0.44 | 2.29 | 397 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 10/31/19(h) | 6.81 | 0.10 | 0.21 | 0.31 | (0.09 | ) | – | (0.09 | ) | 7.03 | 4.60 | 19 | 0.40 | (f) | 0.41 | (f) | 3.29 | (f) | 86 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.50 | 0.12 | 0.28 | 0.40 | (0.13 | ) | – | (0.13 | ) | 5.77 | 7.39 | 328,274 | 0.39 | (f) | 0.41 | (f) | 4.21 | (f) | 273 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.83 | 0.15 | (1.31 | ) | (1.16 | ) | (0.17 | ) | – | (0.17 | ) | 5.50 | (17.22 | ) | 284,165 | 0.40 | 0.41 | 2.46 | 413 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 7.04 | 0.11 | (0.08 | ) | 0.03 | (0.12 | ) | (0.12 | ) | (0.24 | ) | 6.83 | 0.48 | 311,703 | 0.38 | 0.40 | 1.57 | 526 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 7.02 | 0.17 | 0.36 | 0.53 | (0.17 | ) | (0.34 | ) | (0.51 | ) | 7.04 | 7.76 | 263,690 | 0.38 | 0.39 | 2.34 | 397 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ten months ended 10/31/19 | 6.57 | 0.19 | 0.45 | 0.64 | (0.19 | ) | – | (0.19 | ) | 7.02 | 9.91 | 968,348 | 0.38 | (f) | 0.39 | (f) | 3.31 | (f) | 86 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/18 | 6.86 | 0.23 | (0.28 | ) | (0.05 | ) | (0.24 | ) | – | (0.24 | ) | 6.57 | (0.77 | ) | 902,457 | 0.40 | 0.41 | 3.53 | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/17 | 6.75 | 0.20 | 0.12 | 0.32 | (0.21 | ) | – | (0.21 | ) | 6.86 | 4.81 | 993,755 | 0.42 | 0.43 | 2.98 | 86 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include indirect expenses from affiliated fund fees and expenses of 0.01%, 0.00% and 0.00% for the ten months ended October 31, 2019 and for the years ended December 31, 2018 and 2017, respectively. |
(d) | The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities of $7,090,795,832 and $7,321,457,192, $10,593,719,030 and $10,775,658,902 and $9,083,844,819 and $8,679,566,809 for ten months ended October 31, 2019 and for the years ended December 31, 2018 and 2017, respectively. |
(e) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(f) | Annualized. |
(g) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the year ended October 31, 2020. |
(h) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 | Invesco Core Bond Fund |
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Core Bond Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from |
25 | Invesco Core Bond Fund |
settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on 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 Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
J. | Futures Contracts – The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying 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. |
K. | Dollar Rolls and Forward Commitment Transactions – The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund |
26 | Invesco Core Bond Fund |
executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.
The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate.
Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement.
L. | LIBOR Transition Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates will no longer be published after June 2023. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that will replace LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Funds may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
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.
O. Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate* | |||
| ||||
First $ 500 million | 0.400% | |||
| ||||
Next $500 million | 0.350% | |||
| ||||
Next $4 billion | 0.330% | |||
| ||||
Over $5 billion | 0.310% | |||
|
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.34%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through February 29, 2024, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.70%, 1.45%, 0.95%, 0.45%, 0.45% and 0.45%, respectively of the Fund’s average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 29, 2024. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under the expense limits.
The Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $132,284 and reimbursed class level expenses of $265,079, $20,325, $33,964, $313,022, $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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and
27 | Invesco Core Bond Fund |
Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $31,105 in front-end sales commissions from the sale of Class A shares and $116 and $509 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | – | $ | 735,332,383 | $ | 12,709,284 | $ | 748,041,667 | ||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | – | 509,482,504 | – | 509,482,504 | ||||||||||||
Asset-Backed Securities | – | 410,153,874 | – | 410,153,874 | ||||||||||||
U.S. Treasury Securities | – | 302,250,419 | – | 302,250,419 | ||||||||||||
Agency Credit Risk Transfer Notes | – | 12,324,077 | – | 12,324,077 | ||||||||||||
Municipal Obligations | – | 11,808,018 | – | 11,808,018 | ||||||||||||
Common Stocks & Other Equity Interests | – | – | 0 | 0 | ||||||||||||
Money Market Funds | 364,570,524 | – | – | 364,570,524 | ||||||||||||
Total Investments in Securities | 364,570,524 | 1,981,351,275 | 12,709,284 | 2,358,631,083 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* |
| |||||||||||||||
| ||||||||||||||||
Futures Contracts | 2,789,716 | – | – | 2,789,716 | ||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | (2,198,917 | ) | – | – | (2,198,917 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | 590,799 | – | – | 590,799 | ||||||||||||
| ||||||||||||||||
Total Investments | $365,161,323 | $ | 1,981,351,275 | $12,709,284 | $ | 2,359,221,882 | ||||||||||
|
* | 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.
28 | Invesco Core Bond Fund |
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2023:
Value | ||||
Interest | ||||
Derivative Assets | Rate Risk | |||
| ||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ 2,789,716 | |||
| ||||
Derivatives not subject to master netting agreements | (2,789,716 | ) | ||
| ||||
Total Derivative Assets subject to master netting agreements | $ – | |||
| ||||
Value | ||||
Interest | ||||
Derivative Liabilities | Rate Risk | |||
| ||||
Unrealized depreciation on futures contracts – Exchange-Traded(a) | $(2,198,917 | ) | ||
| ||||
Derivatives not subject to master netting agreements | 2,198,917 | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $ – | |||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
Effect of Derivative Investments for the six months ended April 30, 2023
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 | Interest | |||||||||||
Risk | Rate Risk | Total | ||||||||||
| ||||||||||||
Realized Gain (Loss): | ||||||||||||
Futures contracts | $ | - | $ | (752,426 | ) | $ | (752,426 | ) | ||||
| ||||||||||||
Swap agreements | 209,876 | - | 209,876 | |||||||||
| ||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||
Futures contracts | - | (266,858 | ) | (266,858 | ) | |||||||
| ||||||||||||
Total | $ | 209,876 | $ | (1,019,284 | ) | $ | (809,408 | ) | ||||
|
The table below summarizes the average notional value of derivatives held during the period.
Futures | Swap | |||
Contracts | Agreements | |||
| ||||
Average notional value | $329,355,172 | $34,813,000 | ||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $19,964.
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 State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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.
29 | Invesco Core Bond Fund |
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||||
| ||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||
| ||||||||||||||
Not subject to expiration | $ | 142,619,694 | $ | 40,259,328 | $ | 182,879,022 | ||||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $678,817,047 and $805,167,342, 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 | $ 18,999,359 | |||
| ||||
Aggregate unrealized (depreciation) of investments | (81,225,589 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $(62,226,230 | ) | ||
|
Cost of investments for tax purposes is $2,421,448,112.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 12,016,321 | $ | 69,025,062 | 17,838,489 | $ | 112,639,168 | ||||||||||
| ||||||||||||||||
Class C | 1,391,127 | 7,981,649 | 1,518,947 | 9,458,524 | ||||||||||||
| ||||||||||||||||
Class R | 1,807,845 | 10,379,682 | 2,842,778 | 17,892,812 | ||||||||||||
| ||||||||||||||||
Class Y | 78,584,063 | 448,754,643 | 74,333,819 | 455,512,781 | ||||||||||||
| ||||||||||||||||
Class R6 | 11,438,728 | 65,680,512 | 26,237,706 | 160,963,443 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: |
| |||||||||||||||
Class A | 2,058,461 | 11,798,378 | 2,390,857 | 14,761,196 | ||||||||||||
| ||||||||||||||||
Class C | 125,268 | 718,402 | 131,458 | 814,804 | ||||||||||||
| ||||||||||||||||
Class R | 261,372 | 1,497,247 | 271,732 | 1,673,246 | ||||||||||||
| ||||||||||||||||
Class Y | 1,815,826 | 10,350,000 | 1,923,761 | 11,825,056 | ||||||||||||
| ||||||||||||||||
Class R6 | 956,550 | 5,480,046 | 1,043,833 | 6,429,314 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: |
| |||||||||||||||
Class A | 500,053 | 2,878,343 | 900,361 | 5,642,658 | ||||||||||||
| ||||||||||||||||
Class C | (499,386 | ) | (2,878,343 | ) | (899,544 | ) | (5,642,658 | ) | ||||||||
| ||||||||||||||||
Reacquired: |
| |||||||||||||||
Class A | (11,211,650 | ) | (64,256,941 | ) | (29,586,157 | ) | (185,141,604 | ) | ||||||||
| ||||||||||||||||
Class C | (1,157,339 | ) | (6,642,236 | ) | (3,162,356 | ) | (19,767,863 | ) | ||||||||
| ||||||||||||||||
Class R | (1,250,609 | ) | (7,170,839 | ) | (3,109,203 | ) | (19,493,649 | ) | ||||||||
| ||||||||||||||||
Class Y | (35,378,234 | ) | (202,551,546 | ) | (82,922,888 | ) | (512,936,507 | ) | ||||||||
| ||||||||||||||||
Class R6 | (7,153,272 | ) | (40,948,569 | ) | (21,257,303 | ) | (131,403,635 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | 54,305,124 | $ | 310,095,490 | (11,503,710 | ) | $ | (76,772,914 | ) | ||||||||
|
(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. |
30 | Invesco Core 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, 2022 through April 30, 2023.
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 | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Ratio | |||||||||
Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,070.50 | $3.49 | $1,021.42 | $3.41 | 0.68% | ||||||
Class C | 1,000.00 | 1,068.30 | 7.33 | 1,017.70 | 7.15 | 1.43 | ||||||
Class R | 1,000.00 | 1,071.10 | 4.78 | 1,020.18 | 4.66 | 0.93 | ||||||
Class Y | 1,000.00 | 1,074.00 | 2.21 | 1,022.66 | 2.16 | 0.43 | ||||||
Class R5 | 1,000.00 | 1,073.80 | 2.11 | 1,022.76 | 2.06 | 0.41 | ||||||
Class R6 | 1,000.00 | 1,073.90 | 2.01 | 1,022.86 | 1.96 | 0.39 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
31 | Invesco Core Bond Fund |
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Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.
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Fund holdings and proxy voting information
The Fund provides a complete list of its portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-03826 and 033-19338 | Invesco Distributors, Inc. | O-TRB-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Developing Markets Fund
Nasdaq:
A: ODMAX ∎ C: ODVCX ∎ R: ODVNX ∎ Y: ODVYX ∎ R5: DVMFX ∎ R6: ODVIX
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary | ||||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 27.35 | % | ||
Class C Shares | 26.84 | |||
Class R Shares | 27.16 | |||
Class Y Shares | 27.48 | |||
Class R5 Shares | 27.59 | |||
Class R6 Shares | 27.56 | |||
MSCI Emerging Markets Index▼ | 16.36 | |||
Source(s): ▼RIMES Technologies Corp. | ||||
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. 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 visiting invesco.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, visit blog.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 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (11/18/96) | 9.50 | % | ||
10 Years | 1.65 | |||
5 Years | -1.66 | |||
1 Year | 2.10 | |||
Class C Shares | ||||
Inception (11/18/96) | 9.48 | % | ||
10 Years | 1.62 | |||
5 Years | -1.28 | |||
1 Year | 6.22 | |||
Class R Shares | ||||
Inception (3/1/01) | 8.69 | % | ||
10 Years | 1.97 | |||
5 Years | -0.79 | |||
1 Year | 7.76 | |||
Class Y Shares | ||||
Inception (9/7/05) | 6.66 | % | ||
10 Years | 2.49 | |||
5 Years | -0.29 | |||
1 Year | 8.30 | |||
Class R5 Shares | ||||
10 Years | 2.38 | % | ||
5 Years | -0.25 | |||
1 Year | 8.54 | |||
Class R6 Shares | ||||
Inception (12/29/11) | 4.27 | % | ||
10 Years | 2.66 | |||
5 Years | -0.14 | |||
1 Year | 8.47 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Developing Markets Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the In-vesco Oppenheimer Developing Markets Fund. The Fund was subsequently renamed the Invesco Developing Markets Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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 Developing Markets Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Developing Markets Fund |
Consolidated Schedule of Investments
April 30, 2023
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–94.75% |
| |||||||
Australia–0.73% |
| |||||||
Glencore PLC | 31,801,189 | $ | 187,645,731 | |||||
| ||||||||
Brazil–5.26% |
| |||||||
Ambev S.A. | 164,774,890 | 467,783,881 | ||||||
| ||||||||
B3 S.A. - Brasil, Bolsa, Balcao | 51,427,659 | 120,428,858 | ||||||
| ||||||||
Banco Bradesco S.A., Preference Shares | 44,217,998 | 122,783,446 | ||||||
| ||||||||
Lojas Renner S.A. | 14,272,783 | 45,326,774 | ||||||
| ||||||||
NU Holdings Ltd., Class A(a) | 51,705,313 | 266,799,415 | ||||||
| ||||||||
Vale S.A., ADR | 14,522,765 | 209,273,044 | ||||||
| ||||||||
WEG S.A. | 13,377,478 | 110,285,475 | ||||||
| ||||||||
1,342,680,893 | ||||||||
| ||||||||
Chile–0.67% |
| |||||||
Antofagasta PLC | 1,507,358 | 27,696,225 | ||||||
| ||||||||
Banco Santander Chile | 2,980,660,083 | 142,525,214 | ||||||
| ||||||||
170,221,439 | ||||||||
| ||||||||
China–26.87% |
| |||||||
BeiGene Ltd., ADR(a) | 1,153,984 | 294,219,761 | ||||||
| ||||||||
H World Group Ltd. | 1,984,000 | 9,242,295 | ||||||
| ||||||||
H World Group Ltd., ADR(b) | 24,442,360 | 1,146,346,684 | ||||||
| ||||||||
Meituan, B Shares(a)(c) | 12,470,295 | 212,821,427 | ||||||
| ||||||||
MicroTech Medical Hangzhou Co. Ltd., H Shares(a)(c) | 7,473,100 | 6,570,800 | ||||||
| ||||||||
NetEase, Inc., ADR | 9,063,153 | 807,798,827 | ||||||
| ||||||||
New Horizon Health Ltd.(a)(c) | 12,827,500 | 46,077,251 | ||||||
| ||||||||
PDD Holdings, Inc., ADR(a) | 2,897,961 | 197,496,042 | ||||||
| ||||||||
Silergy Corp. | 6,185,000 | 98,497,174 | ||||||
| ||||||||
Tencent Holdings Ltd. | 20,800,758 | 920,168,015 | ||||||
| ||||||||
Wuxi Biologics Cayman, | 38,305,500 | 229,138,176 | ||||||
| ||||||||
Yum China Holdings, Inc.(b) | 27,793,775 | 1,700,423,154 | ||||||
| ||||||||
Zai Lab Ltd., ADR(a) | 3,167,715 | 110,806,671 | ||||||
| ||||||||
ZTO Express (Cayman), Inc. | 2,473,482 | 68,243,788 | ||||||
| ||||||||
ZTO Express (Cayman), Inc., ADR(b) | 36,797,774 | 1,018,562,384 | ||||||
| ||||||||
6,866,412,449 | ||||||||
| ||||||||
France–6.03% |
| |||||||
L’Oreal S.A. | 114,473 | 54,634,354 | ||||||
| ||||||||
Pernod Ricard S.A. | 5,340,276 | 1,233,606,605 | ||||||
| ||||||||
TotalEnergies SE | 3,976,481 | 253,495,606 | ||||||
| ||||||||
1,541,736,565 | ||||||||
| ||||||||
Hong Kong–1.42% |
| |||||||
AIA Group Ltd. | 26,390,200 | 287,948,303 | ||||||
| ||||||||
Hongkong Land Holdings Ltd. | 16,676,900 | 74,069,484 | ||||||
| ||||||||
362,017,787 | ||||||||
| ||||||||
India–18.55% |
| |||||||
Havells India Ltd. | 6,161,199 | 92,784,585 | ||||||
| ||||||||
Housing Development Finance Corp. Ltd. | 52,264,758 | 1,778,172,369 | ||||||
| ||||||||
Kotak Mahindra Bank Ltd. | 58,625,877 | 1,395,065,886 | ||||||
| ||||||||
Oberoi Realty Ltd. | 16,504,089 | 185,028,499 | ||||||
|
Shares | Value | |||||||
| ||||||||
India–(continued) |
| |||||||
Pine Labs Pvt. Ltd. (Acquired 09/09/2021; | 134,098 | $ | 62,853,388 | |||||
| ||||||||
Tata Consultancy Services Ltd. | 31,072,921 | 1,226,925,955 | ||||||
| ||||||||
4,740,830,682 | ||||||||
| ||||||||
Indonesia–0.75% |
| |||||||
PT Bank Central Asia Tbk | 308,121,400 | 190,446,286 | ||||||
| ||||||||
Italy–2.09% |
| |||||||
Ermenegildo Zegna N.V. | 5,142,215 | 66,488,840 | ||||||
| ||||||||
PRADA S.p.A. | 63,716,010 | 468,369,221 | ||||||
| ||||||||
534,858,061 | ||||||||
| ||||||||
Japan–0.48% |
| |||||||
Daiichi Sankyo Co. Ltd. | 3,611,900 | 123,867,868 | ||||||
| ||||||||
Mexico–10.53% |
| |||||||
America Movil S.A.B. de C.V., ADR | 22,361,361 | 480,545,648 | ||||||
| ||||||||
Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 37,779,629 | 367,552,641 | ||||||
| ||||||||
Grupo Mexico S.A.B. de C.V., Class B | 264,410,945 | 1,300,179,184 | ||||||
| ||||||||
Wal-Mart de Mexico S.A.B. de C.V., Series V | 134,735,534 | 543,228,614 | ||||||
| ||||||||
2,691,506,087 | ||||||||
| ||||||||
Netherlands–0.05% |
| |||||||
Argenx SE, ADR(a) | 35,542 | 13,786,031 | ||||||
| ||||||||
Peru–0.86% |
| |||||||
Credicorp Ltd. | 1,612,568 | 218,470,713 | ||||||
| ||||||||
Philippines–1.08% |
| |||||||
SM Investments Corp. | 17,036,772 | 275,464,241 | ||||||
| ||||||||
Portugal–0.42% |
| |||||||
Galp Energia SGPS S.A. | 8,874,145 | 107,536,667 | ||||||
| ||||||||
Russia–0.73% |
| |||||||
Novatek PJSC, GDR(a)(c)(d) | 4,100,000 | 185,893,381 | ||||||
| ||||||||
Sberbank of Russia PJSC(a)(d) | 4,942,538 | 5 | ||||||
| ||||||||
185,893,386 | ||||||||
| ||||||||
South Africa–0.55% |
| |||||||
FirstRand Ltd. | 39,817,720 | 140,337,987 | ||||||
| ||||||||
South Korea–7.02% |
| |||||||
LG Chem Ltd. | 1,437,069 | 801,381,592 | ||||||
| ||||||||
LG H&H Co. Ltd. | 174,807 | 81,434,626 | ||||||
| ||||||||
Samsung Biologics Co. Ltd.(a)(c) | 696,602 | 407,743,981 | ||||||
| ||||||||
Samsung Electronics Co. Ltd. | 10,236,738 | 504,347,614 | ||||||
| ||||||||
1,794,907,813 | ||||||||
| ||||||||
Switzerland–3.22% |
| |||||||
Cie Financiere Richemont S.A. | 4,855,448 | 802,328,405 | ||||||
| ||||||||
Cie Financiere Richemont S.A., Wts., expiring 11/22/2023(a) | 15,598,668 | 20,068,768 | ||||||
| ||||||||
822,397,173 | ||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 | Invesco Developing Markets Fund |
Shares | Value | |||||||
| ||||||||
Taiwan–7.29% |
| |||||||
MediaTek, Inc. | 952,000 | $ | 20,689,304 | |||||
| ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 112,282,429 | 1,841,375,633 | ||||||
| ||||||||
1,862,064,937 | ||||||||
| ||||||||
United Kingdom–0.15% | ||||||||
AstraZeneca PLC, ADR | 508,184 | 37,209,232 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests (Cost $16,100,221,818) |
| 24,210,292,028 | ||||||
| ||||||||
Preferred Stocks–0.88% | ||||||||
China–0.26% | ||||||||
Abogen Therapeutics Ltd., Series C, Pfd. (Acquired 08/02/2021; | 1,436,122 | 65,429,977 | ||||||
| ||||||||
India–0.62% | ||||||||
Bundl Technologies Pvt. Ltd., Series K, Pfd. (Acquired 01/24/2022; | 28,844 | 95,459,193 | ||||||
| ||||||||
Pine Labs Pvt. Ltd., Series K, Pfd. (Acquired 09/09/2021; Cost $50,000,355)(d)(e) | 103,185 | 62,854,111 | ||||||
| ||||||||
158,313,304 | ||||||||
| ||||||||
Total Preferred Stocks (Cost $305,907,589) |
| 223,743,281 | ||||||
|
Shares | Value | |||||||
| ||||||||
Money Market Funds–4.81% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(b)(f) | 429,926,771 | $ | 429,926,771 | |||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(b)(f) | 306,997,784 | 307,089,883 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(b)(f) | 491,344,881 | 491,344,881 | ||||||
| ||||||||
Total Money Market Funds (Cost $1,228,341,255) | 1,228,361,535 | |||||||
| ||||||||
TOTAL INVESTMENTS IN |
| 25,662,396,844 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(0.44)% |
| (112,012,475 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 25,550,384,369 | ||||||
|
Investment Abbreviations:
ADR – American Depositary Receipt
CPO – Certificates of Ordinary Participation
GDR – Global Depositary Receipt
Pfd. – Preferred
Wts. – Warrants
Notes to Consolidated Schedule of Investments:
(a) | Non-income producing security. |
(b) | Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or is an “affiliated person” under the Investment Company Act of 1940, as amended (the “1940 Act”), which defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. For the Investments in Other Affiliates below, 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 table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 210,074,808 | $ | 995,266,633 | $ | (775,414,670 | ) | $ | - | $ | - | $ | 429,926,771 | $ | 6,098,821 | |||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 160,872,614 | 710,904,738 | (564,705,841 | ) | (27,661 | ) | 46,033 | 307,089,883 | 4,550,929 | |||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 240,085,494 | 1,137,447,581 | (886,188,194 | ) | - | - | 491,344,881 | 6,965,896 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 | Invesco Developing Markets Fund |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Other Affiliates: | ||||||||||||||||||||||||||||
H World Group Ltd., ADR | $ | 714,027,757 | $ | 11,355,288 | $ | (104,693,057 | ) | $ | 496,312,985 | $ | 29,343,711 | $ | 1,146,346,684 | $ | - | |||||||||||||
Yandex N.V. | 23 | - | (195,733,646 | ) | 916,590,344 | (720,856,721 | ) | - | - | |||||||||||||||||||
Yum China Holdings, Inc. | 1,248,079,869 | - | (147,349,964 | ) | 589,482,433 | 10,210,816 | 1,700,423,154 | 7,513,160 | ||||||||||||||||||||
Zai Lab Ltd., ADR* | 161,412,607 | - | (171,661,029 | ) | 531,007,762 | (409,952,669 | ) | 110,806,671 | - | |||||||||||||||||||
Zee Entertainment Enterprises Ltd. | 155,536,647 | - | (152,698,432 | ) | 100,140,255 | (102,978,470 | ) | - | - | |||||||||||||||||||
ZTO Express (Cayman), Inc., ADR | 621,514,403 | - | - | 397,047,981 | - | 1,018,562,384 | 13,247,198 | |||||||||||||||||||||
Total | $ | 3,511,604,222 | $ | 2,854,974,240 | $ | (2,998,444,833 | ) | $ | 3,030,554,099 | $ | (1,194,187,300 | ) | $ | 5,204,500,428 | $ | 38,376,004 |
* | At April 30, 2023, this security was no longer an affiliate of the Fund. |
(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, 2023 was $1,088,245,016, which represented 4.26% of the Fund’s Net Assets. |
(d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(e) | Restricted security. The aggregate value of these securities at April 30, 2023 was $286,596,669, which represented 1.12% of the Fund’s Net Assets. |
(f) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
Open Forward Foreign Currency Contracts | ||||||||||||||
| ||||||||||||||
Contract to | Unrealized Appreciation | |||||||||||||
|
| |||||||||||||
Settlement Date | Counterparty | Deliver | Receive | |||||||||||
| ||||||||||||||
Currency Risk | ||||||||||||||
| ||||||||||||||
05/02/2023 | State Street Bank & Trust Co. | PHP 45,475,585 | USD 814,703 | $ | (6,378 | ) | ||||||||
| ||||||||||||||
05/03/2023 | State Street Bank & Trust Co. | PHP 46,946,119 | USD 844,482 | (3,150 | ) | |||||||||
| ||||||||||||||
Total Forward Foreign Currency Contracts | $ | (9,528 | ) | |||||||||||
|
Abbreviations:
PHP – Philippines Peso
USD – U.S. Dollar
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2023
Consumer Discretionary | 18.65 | % | ||
Financials | 18.25 | |||
Information Technology | 14.94 | |||
Consumer Staples | 10.76 | |||
Materials | 9.89 | |||
Communication Services | 8.64 | |||
Industrials | 6.13 | |||
Health Care | 5.22 | |||
Energy | 2.14 | |||
Real Estate | 1.01 | |||
Money Market Funds Plus Other Assets Less Liabilities | 4.37 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 | Invesco Developing Markets Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: |
| |||
Investments in unaffiliated securities, at value (Cost $14,255,984,418) | $ | 20,568,703,087 | ||
| ||||
Investments in affiliates, at value | 5,093,693,757 | |||
| ||||
Cash | 172,598,725 | |||
| ||||
Foreign currencies, at value (Cost $11,288,037) | 11,289,159 | |||
| ||||
Receivable for: | ||||
Investments sold | 152,678,671 | |||
| ||||
Fund shares sold | 28,528,337 | |||
| ||||
Dividends | 25,473,722 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 1,325,043 | |||
| ||||
Other assets | 234,185 | |||
| ||||
Total assets | 26,054,524,686 | |||
| ||||
Liabilities: |
| |||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 9,528 | |||
| ||||
Payable for: | ||||
Investments purchased | 264,575,946 | |||
| ||||
Fund shares reacquired | 33,984,452 | |||
| ||||
Accrued foreign taxes | 190,005,745 | |||
| ||||
Accrued fees to affiliates | 8,974,969 | |||
| ||||
Accrued trustees’ and officers’ fees | 273,332 | |||
| ||||
Accrued other operating expenses | 4,991,302 | |||
| ||||
Trustee deferred compensation and retirement plans | 1,325,043 | |||
| ||||
Total liabilities | 504,140,317 | |||
| ||||
Net assets applicable to shares outstanding | $ | 25,550,384,369 | ||
| ||||
Net assets consist of: |
| |||
Shares of beneficial interest | $ | 20,545,827,121 | ||
| ||||
Distributable earnings | 5,004,557,248 | |||
| ||||
$ | 25,550,384,369 | |||
|
Net Assets: |
| |||
Class A | $ | 2,711,339,042 | ||
| ||||
Class C | $ | 34,068,995 | ||
| ||||
Class R | $ | 250,083,994 | ||
| ||||
Class Y | $ | 12,278,926,841 | ||
| ||||
Class R5 | $ | 138,730 | ||
| ||||
Class R6 | $ | 10,275,826,767 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 68,067,397 | |||
| ||||
Class C | 948,134 | |||
| ||||
Class R | 6,584,435 | |||
| ||||
Class Y | 313,633,298 | |||
| ||||
Class R5 | 3,487 | |||
| ||||
Class R6 | 262,678,305 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 39.83 | ||
| ||||
Maximum offering price per share | $ | 42.15 | ||
| ||||
Class C: |
| |||
Net asset value and offering price per share | $ | 35.93 | ||
| ||||
Class R: |
| |||
Net asset value and offering price per share | $ | 37.98 | ||
| ||||
Class Y: |
| |||
Net asset value and offering price per share | $ | 39.15 | ||
| ||||
Class R5: |
| |||
Net asset value and offering price per share | $ | 39.78 | ||
| ||||
Class R6: |
| |||
Net asset value and offering price per share | $ | 39.12 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 | Invesco Developing Markets Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $44,844,970) | $ | 167,679,153 | ||
| ||||
Dividends from affiliates | 38,376,004 | |||
| ||||
Total investment income | 206,055,157 | |||
| ||||
Expenses: | ||||
Advisory fees | 97,163,296 | |||
| ||||
Administrative services fees | 1,816,397 | |||
| ||||
Custodian fees | 4,812,602 | |||
| ||||
Distribution fees: | ||||
Class A | 3,326,479 | |||
| ||||
Class C | 170,084 | |||
| ||||
Class R | 604,507 | |||
| ||||
Transfer agent fees – A, C, R and Y | 11,252,882 | |||
| ||||
Transfer agent fees – R5 | 11 | |||
| ||||
Transfer agent fees – R6 | 1,533,340 | |||
| ||||
Trustees’ and officers’ fees and benefits | 117,916 | |||
| ||||
Registration and filing fees | 173,707 | |||
| ||||
Reports to shareholders | 1,036,293 | |||
| ||||
Professional services fees | 203,940 | |||
| ||||
Other | 209,884 | |||
| ||||
Total expenses | 122,421,338 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (464,163 | ) | ||
| ||||
Net expenses | 121,957,175 | |||
| ||||
Net investment income | 84,097,982 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities (net of foreign taxes of $40,699,299) | (263,470,079 | ) | ||
| ||||
Affiliated investment securities | (1,194,187,300 | ) | ||
| ||||
Foreign currencies | (6,459,701 | ) | ||
| ||||
Forward foreign currency contracts | 16,424 | |||
| ||||
(1,464,100,656 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities (net of foreign taxes of $3,206,179) | 4,348,017,425 | |||
| ||||
Affiliated investment securities | 3,030,554,099 | |||
| ||||
Foreign currencies | 7,886,309 | |||
| ||||
Forward foreign currency contracts | (9,528 | ) | ||
| ||||
7,386,448,305 | ||||
| ||||
Net realized and unrealized gain | 5,922,347,649 | |||
| ||||
Net increase in net assets resulting from operations | $ | 6,006,445,631 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 | Invesco Developing Markets Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 84,097,982 | $ | 182,077,188 | ||||
| ||||||||
Net realized gain (loss) | (1,464,100,656 | ) | (1,297,407,234 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 7,386,448,305 | (16,193,379,595 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 6,006,445,631 | (17,308,709,641 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (15,077,880 | ) | (196,709,112 | ) | ||||
| ||||||||
Class C | (39,391 | ) | (3,347,754 | ) | ||||
| ||||||||
Class R | (577,718 | ) | (17,064,426 | ) | ||||
| ||||||||
Class Y | (109,408,871 | ) | (1,100,030,266 | ) | ||||
| ||||||||
Class R5 | (1,597 | ) | (502,518 | ) | ||||
| ||||||||
Class R6 | (118,529,294 | ) | (1,049,638,131 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (243,634,751 | ) | (2,367,292,207 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (304,145,403 | ) | (257,246,966 | ) | ||||
| ||||||||
Class C | (4,157,939 | ) | (13,976,453 | ) | ||||
| ||||||||
Class R | (15,149,950 | ) | (12,600,336 | ) | ||||
| ||||||||
Class Y | (1,341,027,254 | ) | (2,926,163,579 | ) | ||||
| ||||||||
Class R5 | (22,340 | ) | (8,363,219 | ) | ||||
| ||||||||
Class R6 | (1,424,381,649 | ) | (3,779,141,156 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (3,088,884,535 | ) | (6,997,491,709 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | 2,673,926,345 | (26,673,493,557 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 22,876,458,024 | 49,549,951,581 | ||||||
| ||||||||
End of period | $ | 25,550,384,369 | $ | 22,876,458,024 | ||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 | Invesco Developing Markets Fund |
Consolidated Financial Highlights
(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(c) | Ratio of net (loss) to average | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $ | 31.45 | $ | 0.08 | $ | 8.50 | $ | 8.58 | $ | (0.20 | ) | $ | – | $ | (0.20 | ) | $ | 39.83 | 27.35 | % | $ | 2,711,339 | 1.24 | %(e) | 1.24 | %(e) | 0.40 | %(e) | 13 | % | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 53.50 | 0.08 | (19.74 | ) | (19.66 | ) | (0.04 | ) | (2.35 | ) | (2.39 | ) | 31.45 | (38.24 | ) | 2,394,926 | 1.24 | 1.24 | 0.23 | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 45.84 | 0.11 | 7.55 | 7.66 | – | – | – | 53.50 | 16.71 | 4,467,836 | 1.20 | 1.20 | 0.20 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 44.28 | 0.04 | 2.50 | 2.54 | (0.11 | ) | (0.87 | ) | (0.98 | ) | 45.84 | 5.75 | 4,130,292 | 1.22 | 1.22 | 0.08 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 42.05 | 0.06 | 2.17 | 2.23 | – | – | – | 44.28 | 5.30 | 4,881,008 | 1.24 | (e) | 1.24 | (e) | 0.80 | (e) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 42.01 | 0.14 | 0.01 | 0.15 | (0.11 | ) | – | (0.11 | ) | 42.05 | 0.34 | 4,686,134 | 1.27 | 1.27 | 0.34 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 41.49 | 0.06 | 0.59 | 0.65 | (0.13 | ) | – | (0.13 | ) | 42.01 | 1.59 | 5,277,791 | 1.29 | 1.29 | 0.13 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 28.36 | (0.06 | ) | 7.67 | 7.61 | (0.04 | ) | – | (0.04 | ) | 35.93 | 26.84 | 34,069 | 1.99 | (e) | 1.99 | (e) | (0.35 | )(e) | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 48.79 | (0.19 | ) | (17.89 | ) | (18.08 | ) | – | (2.35 | ) | (2.35 | ) | 28.36 | (38.70 | ) | 30,355 | 1.99 | 1.99 | (0.52 | ) | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 42.11 | (0.28 | ) | 6.96 | 6.68 | – | – | – | 48.79 | 15.86 | 71,470 | 1.95 | 1.95 | (0.55 | ) | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 40.96 | (0.27 | ) | 2.29 | 2.02 | – | (0.87 | ) | (0.87 | ) | 42.11 | 4.93 | 225,906 | 1.97 | 1.97 | (0.67 | ) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 38.95 | – | 2.01 | 2.01 | – | – | – | 40.96 | 5.16 | 403,027 | 2.00 | (e) | 2.00 | (e) | 0.03 | (e) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 39.10 | (0.16 | ) | 0.01 | (0.15 | ) | – | – | – | 38.95 | (0.41 | ) | 493,169 | 2.02 | 2.02 | (0.42 | ) | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 38.79 | (0.25 | ) | 0.56 | 0.31 | – | – | – | 39.10 | 0.80 | 826,481 | 2.05 | 2.05 | (0.62 | ) | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 29.94 | 0.03 | 8.09 | 8.12 | (0.08 | ) | – | (0.08 | ) | 37.98 | 27.16 | 250,084 | 1.49 | (e) | 1.49 | (e) | 0.15 | (e) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 51.11 | (0.01 | ) | (18.81 | ) | (18.82 | ) | – | (2.35 | ) | (2.35 | ) | 29.94 | (38.38 | ) | 209,736 | 1.49 | 1.49 | (0.02 | ) | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 43.91 | (0.03 | ) | 7.23 | 7.20 | – | – | – | 51.11 | 16.40 | 379,043 | 1.45 | 1.45 | (0.05 | ) | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 42.48 | (0.07 | ) | 2.40 | 2.33 | (0.03 | ) | (0.87 | ) | (0.90 | ) | 43.91 | 5.49 | 387,506 | 1.47 | 1.47 | (0.17 | ) | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 40.36 | 0.04 | 2.08 | 2.12 | – | – | – | 42.48 | 5.25 | 472,840 | 1.50 | (e) | 1.50 | (e) | 0.54 | (e) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 40.32 | 0.03 | 0.01 | 0.04 | – | – | – | 40.36 | 0.10 | 471,206 | 1.52 | 1.52 | 0.08 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 39.84 | (0.05 | ) | 0.58 | 0.53 | (0.05 | ) | – | (0.05 | ) | 40.32 | 1.32 | 585,385 | 1.55 | 1.55 | (0.12 | ) | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 30.99 | 0.12 | 8.37 | 8.49 | (0.33 | ) | – | (0.33 | ) | 39.15 | 27.48 | 12,278,927 | 0.99 | (e) | 0.99 | (e) | 0.65 | (e) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 52.78 | 0.19 | (19.44 | ) | (19.25 | ) | (0.19 | ) | (2.35 | ) | (2.54 | ) | 30.99 | (38.08 | ) | 10,871,573 | 0.99 | 0.99 | 0.48 | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 45.21 | 0.24 | 7.45 | 7.69 | (0.12 | ) | – | (0.12 | ) | 52.78 | 17.01 | 23,079,615 | 0.95 | 0.95 | 0.45 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 43.70 | 0.14 | 2.48 | 2.62 | (0.24 | ) | (0.87 | ) | (1.11 | ) | 45.21 | 6.01 | 18,432,202 | 0.97 | 0.97 | 0.33 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 41.49 | 0.07 | 2.14 | 2.21 | – | – | – | 43.70 | 5.33 | 19,342,101 | 1.00 | (e) | 1.00 | (e) | 1.04 | (e) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 41.48 | 0.24 | 0.00 | 0.24 | (0.23 | ) | – | (0.23 | ) | 41.49 | 0.61 | 18,525,445 | 1.02 | 1.02 | 0.59 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 40.98 | 0.16 | 0.59 | 0.75 | (0.25 | ) | – | (0.25 | ) | 41.48 | 1.82 | 17,898,340 | 1.05 | 1.05 | 0.38 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 31.51 | 0.15 | 8.51 | 8.66 | (0.39 | ) | – | (0.39 | ) | 39.78 | 27.59 | 139 | 0.86 | (e) | 0.86 | (e) | 0.78 | (e) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 53.52 | 0.26 | (19.70 | ) | (19.44 | ) | (0.22 | ) | (2.35 | ) | (2.57 | ) | 31.51 | (37.93 | ) | 130 | 0.89 | 0.89 | 0.58 | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 45.85 | 0.27 | 7.55 | 7.82 | (0.15 | ) | – | (0.15 | ) | 53.52 | 17.07 | 10,527 | 0.90 | 0.90 | 0.50 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 44.33 | 0.17 | 2.52 | 2.69 | (0.30 | ) | (0.87 | ) | (1.17 | ) | 45.85 | 6.10 | 13,560 | 0.89 | 0.89 | 0.41 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 42.08 | 0.08 | 2.17 | 2.25 | – | – | – | 44.33 | 5.35 | 6,006 | 0.88 | (e) | 0.88 | (e) | 1.16 | (e) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 08/31/19(f) | 41.26 | 0.09 | 0.73 | 0.82 | – | – | – | 42.08 | 1.99 | 10 | 0.87 | (e) | 0.87 | (e) | 0.74 | (e) | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 31.02 | 0.14 | 8.37 | 8.51 | (0.41 | ) | – | (0.41 | ) | 39.12 | 27.56 | 10,275,827 | 0.87 | (e) | 0.87 | (e) | 0.77 | (e) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 52.83 | 0.25 | (19.44 | ) | (19.19 | ) | (0.27 | ) | (2.35 | ) | (2.62 | ) | 31.02 | (37.98 | ) | 9,369,739 | 0.84 | 0.84 | 0.63 | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 45.25 | 0.32 | 7.45 | 7.77 | (0.19 | ) | – | (0.19 | ) | 52.83 | 17.17 | 21,541,460 | 0.81 | 0.81 | 0.59 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 43.75 | 0.21 | 2.48 | 2.69 | (0.32 | ) | (0.87 | ) | (1.19 | ) | 45.25 | 6.17 | 17,009,325 | 0.82 | 0.82 | 0.48 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 41.52 | 0.09 | 2.14 | 2.23 | – | – | – | 43.75 | 5.37 | 17,106,921 | 0.83 | (e) | 0.83 | (e) | 1.21 | (e) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 41.52 | 0.31 | (0.01 | ) | 0.30 | (0.30 | ) | – | (0.30 | ) | 41.52 | 0.77 | 16,224,242 | 0.86 | 0.86 | 0.75 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 41.01 | 0.23 | 0.59 | 0.82 | (0.31 | ) | – | (0.31 | ) | 41.52 | 2.00 | 13,987,540 | 0.87 | 0.87 | 0.55 | 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) | Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the two months ended October 31, 2019 and for the years ended August 31, 2019 and 2018, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | Annualized. |
(f) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 | Invesco Developing Markets Fund |
Notes to Consolidated Financial Statements
April 30, 2023
(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 consolidated financial statements pertains only to the Fund and the OFI Global China Fund, LLC (the “Subsidiary”), a wholly-owned and controlled subsidiary by the Fund organized under the laws of Delaware. The Subsidiary may invest in companies established or operating in, or with significant exposure to, the People’s Republic of China or other developing markets countries. For operational efficiency and regulatory considerations, the Fund may gain access to such companies through an investment in the Subsidiary. The Fund may invest 10% of its total assets in the Subsidiary. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and
12 | Invesco Developing Markets Fund |
unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider,as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in 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 |
13 | Invesco Developing Markets Fund |
unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
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.
J. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
K. | Other Risks - The Subsidiary is not registered under the 1940 Act. As an investor in the Subsidiary, the Fund does not have all of the protections offered to investors by the 1940 Act. However, the Subsidiary is controlled by the Fund and managed by OppenheimerFunds, Inc. The Subsidiary may invest substantially all of its assets in a limited number of issuers or a single issuer. To the extent that it does so, the Subsidiary is more subject to the risks associated with and developments affecting such issuers than a fund that invests more widely. |
The Fund’s investments in Class A Shares of Chinese companies involve certain risks and special considerations not typically associated with investments in U.S. companies, such as greater government control over the economy, political and legal uncertainty, currency fluctuations or blockage, the risk that the Chinese government may decide not to continue to support economic reform programs and the risk of nationalization or expropriation of assets. The Fund may invest directly in China A shares through Stock Connect, and will be subject to the following risks: sudden changes in quota limitations, application of trading suspensions, differences in trading days between the PRC and Stock Connect, operational risk, clearing and settlement risk and regulatory and taxation risk.
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 the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate* | |||||
| ||||||
First $250 million | 1.000% | |||||
| ||||||
Next $250 million | 0.950% | |||||
| ||||||
Next $500 million | 0.900% | |||||
| ||||||
Next $6 billion | 0.850% | |||||
| ||||||
Next $3 billion | 0.800% | |||||
| ||||||
Next $20 billion | 0.750% | |||||
| ||||||
Next $15 billion | 0.740% | |||||
| ||||||
Over $45 billion | 0.730% | |||||
|
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.77%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least June 30, 2023, 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $435,244.
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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
14 | Invesco Developing Markets 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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $26,153 in front-end sales commissions from the sale of Class A shares and $2,622 and $1,104 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | – | $ | 187,645,731 | $ | – | $ | 187,645,731 | ||||||||
| ||||||||||||||||
Brazil | 1,342,680,893 | – | – | 1,342,680,893 | ||||||||||||
| ||||||||||||||||
Chile | 142,525,214 | 27,696,225 | – | 170,221,439 | ||||||||||||
| ||||||||||||||||
China | 5,275,653,523 | 1,590,758,926 | 65,429,977 | 6,931,842,426 | ||||||||||||
| ||||||||||||||||
France | – | 1,541,736,565 | – | 1,541,736,565 | ||||||||||||
| ||||||||||||||||
Hong Kong | – | 362,017,787 | – | 362,017,787 | ||||||||||||
| ||||||||||||||||
India | – | 4,677,977,294 | 221,166,692 | 4,899,143,986 | ||||||||||||
| ||||||||||||||||
Indonesia | – | 190,446,286 | – | 190,446,286 | ||||||||||||
| ||||||||||||||||
Italy | 66,488,840 | 468,369,221 | – | 534,858,061 | ||||||||||||
| ||||||||||||||||
Japan | – | 123,867,868 | – | 123,867,868 | ||||||||||||
| ||||||||||||||||
Mexico | 2,691,506,087 | – | – | 2,691,506,087 | ||||||||||||
| ||||||||||||||||
Netherlands | 13,786,031 | – | – | 13,786,031 | ||||||||||||
| ||||||||||||||||
Peru | 218,470,713 | – | – | 218,470,713 | ||||||||||||
| ||||||||||||||||
Philippines | – | 275,464,241 | – | 275,464,241 | ||||||||||||
| ||||||||||||||||
Portugal | – | 107,536,667 | – | 107,536,667 | ||||||||||||
| ||||||||||||||||
Russia | – | – | 185,893,386 | 185,893,386 | ||||||||||||
| ||||||||||||||||
South Africa | – | 140,337,987 | – | 140,337,987 | ||||||||||||
| ||||||||||||||||
South Korea | – | 1,794,907,813 | – | 1,794,907,813 | ||||||||||||
| ||||||||||||||||
Switzerland | 20,068,768 | 802,328,405 | – | 822,397,173 | ||||||||||||
| ||||||||||||||||
Taiwan | – | 1,862,064,937 | – | 1,862,064,937 | ||||||||||||
| ||||||||||||||||
United Kingdom | 37,209,232 | – | – | 37,209,232 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 1,228,361,535 | – | – | 1,228,361,535 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 11,036,750,836 | 14,153,155,953 | 472,490,055 | 25,662,396,844 | ||||||||||||
|
15 | Invesco Developing Markets Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Other Investments-Liabilities* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | $ | – | $ | (9,528 | ) | $ | – | $ | (9,528 | ) | ||||||
| ||||||||||||||||
Total Investments | $ | 11,036,750,836 | $ | 14,153,146,425 | $ | 472,490,055 | $ | 25,662,387,316 | ||||||||
|
* | Unrealized appreciation (depreciation). |
A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the reporting period in relation to net assets.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the six months ended April 30, 2023:
Value 10/31/22 | Purchases at Cost | Proceeds from Sales | Accrued Discounts/ Premiums | Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Transfers into Level 3 | Transfers out of Level 3 | Value 04/30/23 | ||||||||||||||||||||
Common Stocks & Other Equity Interests | $ | 62,853,428 | $– | $ | (493,283,314 | ) | $– | $ | (1,134,920,866 | ) | $ | 1,814,097,526 | $– | $– | $ | 248,746,774 | ||||||||||||
| ||||||||||||||||||||||||||||
Preferred Stocks | 265,554,732 | – | – | – | – | (41,811,451 | ) | – | – | 223,743,281 | ||||||||||||||||||
| ||||||||||||||||||||||||||||
Total | $ | 328,408,160 | $– | $ | (493,283,314 | ) | $– | $ | (1,134,920,866 | ) | $ | 1,772,286,075 | $– | $– | $ | 472,490,055 | ||||||||||||
|
Securities determined to be Level 3 at the end of the reporting period were valued primarily by utilizing evaluated prices from a third-party vendor pricing service. A significant change in third-party pricing information could result in a lower or higher value in Level 3 investments.
NOTE 4–Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the 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, 2023:
Value | ||||
|
| |||
Derivative Liabilities | | Currency Risk | | |
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | $(9,528) | |||
| ||||
Derivatives not subject to master netting agreements | – | |||
| ||||
Total Derivative Liabilities subject to master netting agreements | $(9,528) | |||
|
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, 2023.
Financial Derivative Liabilities | Collateral (Received)/Pledged | |||||||||||
|
| |||||||||||
Counterparty | Forward Foreign Currency Contracts | Net Value of Derivatives | Non-Cash | Cash | Net Amount | |||||||
| ||||||||||||
State Street Bank & Trust Co. | $(9,528) | $(9,528) | $– | $– | $ | (9,528 | ) | |||||
|
Effect of Derivative Investments for the six months ended April 30, 2023
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Consolidated Statement of Operations | ||
Currency Risk | ||
| ||
Realized Gain: | ||
Forward foreign currency contracts | $16,424 | |
| ||
Change in Net Unrealized Appreciation (Depreciation): | ||
Forward foreign currency contracts | (9,528) | |
| ||
Total | $6,896 | |
|
16 | Invesco Developing Markets Fund |
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | ||
| ||
Average notional value | $2,180,714 | |
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $28,919.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers�� Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||
| ||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||
| ||||||||||
Not subject to expiration | $ | 1,210,771,208 | $– | $ | 1,210,771,208 | |||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $3,248,014,341 and $6,902,073,354, 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 | $ | 8,481,421,187 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (817,725,255 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 7,663,695,932 | ||
|
Cost of investments for tax purposes is $17,998,691,384.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 4,315,169 | $ | 160,928,868 | 15,975,399 | $ | 628,270,673 | ||||||||||
| ||||||||||||||||
Class C | 76,268 | 2,617,938 | 109,960 | 4,097,121 | ||||||||||||
| ||||||||||||||||
Class R | 376,966 | 13,615,598 | 921,028 | 36,451,727 | ||||||||||||
| ||||||||||||||||
Class Y | 32,586,039 | 1,207,770,104 | 107,662,674 | 4,291,619,180 | ||||||||||||
| ||||||||||||||||
Class R5 | 424 | 16,184 | 22,052 | 953,261 | ||||||||||||
| ||||||||||||||||
Class R6 | 25,485,004 | 943,815,699 | 83,670,704 | 3,385,134,926 | ||||||||||||
|
17 | Invesco Developing Markets Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 342,132 | $ | 12,484,359 | 3,677,641 | $ | 174,320,239 | ||||||||||
| ||||||||||||||||
Class C | 1,111 | 36,688 | 73,175 | 3,147,985 | ||||||||||||
| ||||||||||||||||
Class R | 16,571 | 576,991 | 376,951 | 17,041,970 | ||||||||||||
| ||||||||||||||||
Class Y | 2,456,978 | 88,033,531 | 20,494,817 | 954,853,521 | ||||||||||||
| ||||||||||||||||
Class R5 | 41 | 1,503 | 10,620 | 501,895 | ||||||||||||
| ||||||||||||||||
Class R6 | 2,404,533 | 86,058,236 | 17,923,230 | 834,684,837 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 66,863 | 2,538,265 | 212,455 | 8,587,167 | ||||||||||||
| ||||||||||||||||
Class C | (74,043 | ) | (2,538,265 | ) | (234,663 | ) | (8,587,167 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (12,798,561 | ) | (480,096,895 | ) | (27,234,377 | ) | (1,068,425,045 | ) | ||||||||
| ||||||||||||||||
Class C | (125,729 | ) | (4,274,300 | ) | (342,845 | ) | (12,634,392 | ) | ||||||||
| ||||||||||||||||
Class R | (815,414 | ) | (29,342,539 | ) | (1,707,185 | ) | (66,094,033 | ) | ||||||||
| ||||||||||||||||
Class Y | (72,250,405 | ) | (2,636,830,889 | ) | (214,616,817 | ) | (8,172,636,280 | ) | ||||||||
| ||||||||||||||||
Class R5 | (1,088 | ) | (40,027 | ) | (225,231 | ) | (9,818,375 | ) | ||||||||
| ||||||||||||||||
Class R6 | (67,312,258 | ) | (2,454,255,584 | ) | (207,243,475 | ) | (7,998,960,919 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (85,249,399 | ) | $ | (3,088,884,535 | ) | (200,473,887 | ) | $ | (6,997,491,709 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 34% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
NOTE 11–Significant Event
At the meeting held March 16, 2023, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would acquire all of the assets and liabilities of Invesco Emerging Markets Innovators Fund (the “Target Fund”) in exchange for shares of the Fund.
The reorganization is expected to be consummated at the close of business on or about June 23, 2023. Upon closing of the reorganization, shareholders of the Fund will receive shares of the Acquiring Fund in exchange for their shares of the Fund, and the Fund will liquidate and cease operations.
18 | 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, 2022 through April 30, 2023.
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 (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class A | $1,000.00 | $1,273.50 | $6.99 | $1,018.65 | $6.21 | 1.24% | ||||||
Class C | 1,000.00 | 1,268.40 | 11.19 | 1,014.93 | 9.94 | 1.99 | ||||||
Class R | 1,000.00 | 1,271.60 | 8.39 | 1,017.41 | 7.45 | 1.49 | ||||||
Class Y | 1,000.00 | 1,274.80 | 5.58 | 1,019.89 | 4.96 | 0.99 | ||||||
Class R5 | 1,000.00 | 1,275.90 | 4.85 | 1,020.53 | 4.31 | 0.86 | ||||||
Class R6 | 1,000.00 | 1,275.60 | 4.91 | 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, 2022 through April 30, 2023, 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 Developing Markets Fund |
Shareholders were sent a notice from the Fund that set forth an estimate on a per share basis of the source or sources from which the distribution was paid in December of 2022. Subsequently, certain of these estimates have been corrected. Listed below is a written statement of the sources of this distribution, as corrected, on a generally accepted accounting principles (“GAAP”) basis.
Net Income | Gain from Sale of Securities | Return of Principal | Total Distribution | |||||||
12/14/2022 | Class A | $0.0565 | $0.0000 | $0.1461 | $0.2026 | |||||
12/14/2022 | Class C | $0.0000 | $0.0000 | $0.0378 | $0.0378 | |||||
12/14/2022 | Class R | $0.0000 | $0.0000 | $0.0843 | $0.0843 | |||||
12/14/2022 | Class Y | $0.1817 | $0.0000 | $0.1461 | $0.3278 | |||||
12/14/2022 | Class R5 | $0.2410 | $0.0000 | $0.1461 | $0.3871 | |||||
12/14/2022 | Class R6 | $0.2647 | $0.0000 | $0.1461 | $0.4108 |
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 U.S. federal income tax purposes. This notice is sent to comply with certain U.S. Securities and Exchange Commission requirements.
20 | 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/ corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-DVM-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Discovery Mid Cap Growth Fund
Nasdaq:
A: OEGAX ∎ C: OEGCX ∎ R: OEGNX ∎ Y: OEGYX ∎ R5: DMCFX ∎ R6: OEGIX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
8 | Financial Statements | |
11 | Financial Highlights | |
12 | Notes to Financial Statements | |
17 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
|
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 0.79 | % | ||
Class C Shares | 0.39 | |||
Class R Shares | 0.68 | |||
Class Y Shares | 0.90 | |||
Class R5 Shares | 0.92 | |||
Class R6 Shares | 1.00 | |||
Russell Midcap Growth Index▼ | 6.60 | |||
Source(s): ▼RIMES Technologies Corp. | ||||
The Russell Midcap® Growth Index is an unmanaged index considered representative of mid-cap growth stocks. The Russell Midcap Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. |
| |||
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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
2 | Invesco Discovery Mid Cap Growth Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (11/1/00) | 7.14 | % | ||
10 Years | 10.26 | |||
5 Years | 7.48 | |||
1 Year | -8.91 | |||
Class C Shares | ||||
Inception (11/1/00) | 7.11 | % | ||
10 Years | 10.22 | |||
5 Years | 7.92 | |||
1 Year | -5.28 | |||
Class R Shares | ||||
Inception (3/1/01) | 8.14 | % | ||
10 Years | 10.60 | |||
5 Years | 8.45 | |||
1 Year | -3.87 | |||
Class Y Shares | ||||
Inception (11/1/00) | 7.85 | % | ||
10 Years | 11.17 | |||
5 Years | 8.99 | |||
1 Year | -3.38 | |||
Class R5 Shares | ||||
10 Years | 11.03 | % | ||
5 Years | 8.99 | |||
1 Year | -3.30 | |||
Class R6 Shares | ||||
Inception (2/28/13) | 11.48 | % | ||
10 Years | 11.36 | |||
5 Years | 9.15 | |||
1 Year | -3.23 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Discovery Mid Cap Growth Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Discovery Mid Cap Growth Fund. Note: The Fund was subsequently renamed the Invesco Discovery Mid Cap Growth Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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 Discovery Mid Cap Growth Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Discovery Mid Cap Growth Fund |
April 30, 2023
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–96.81% | ||||||
Advertising–0.90% | ||||||
Trade Desk, Inc. (The), Class A(b) | 768,073 | $ 49,417,816 | ||||
Aerospace & Defense–3.28% | ||||||
Axon Enterprise, Inc.(b)(c) | 162,314 | 34,201,183 | ||||
Howmet Aerospace, Inc. | 1,544,717 | 68,415,516 | ||||
TransDigm Group, Inc. | 100,231 | 76,676,715 | ||||
179,293,414 | ||||||
Application Software–10.05% | ||||||
Cadence Design Systems, Inc.(b) | 332,082 | 69,554,575 | ||||
Fair Isaac Corp.(b) | 39,567 | 28,802,798 | ||||
HubSpot, Inc.(b) | 170,605 | 71,816,175 | ||||
Manhattan Associates, Inc.(b) | 707,939 | 117,291,333 | ||||
Procore Technologies, Inc.(b)(c) | 444,137 | 23,721,357 | ||||
Roper Technologies, Inc. | 174,293 | 79,264,970 | ||||
Samsara, Inc., Class A(b) | 1,523,253 | 27,494,717 | ||||
Synopsys, Inc.(b) | 355,173 | 131,882,839 | ||||
549,828,764 | ||||||
Asset Management & Custody Banks–2.13% | ||||||
Ameriprise Financial, Inc. | 143,925 | 43,914,396 | ||||
Ares Management Corp., Class A(c) | 486,847 | 42,642,929 | ||||
KKR & Co., Inc., Class A(c) | 567,613 | 30,123,222 | ||||
116,680,547 | ||||||
Automotive Parts & Equipment–2.00% | ||||||
Aptiv PLC(b) | 386,329 | 39,737,801 | ||||
Autoliv, Inc. (Sweden) | 335,056 | 28,751,155 | ||||
Mobileye Global, Inc., Class A (Israel)(b)(c) | 1,089,883 | 41,023,196 | ||||
109,512,152 | ||||||
Automotive Retail–1.54% | ||||||
O’Reilly Automotive, Inc.(b) | 91,815 | 84,222,818 | ||||
Biotechnology–0.99% | ||||||
Alnylam Pharmaceuticals, Inc.(b) | 135,964 | 27,084,029 | ||||
BioMarin Pharmaceutical, Inc.(b) | 135,157 | 12,980,478 | ||||
Sarepta Therapeutics, Inc.(b)(c) | 115,762 | 14,212,101 | ||||
54,276,608 | ||||||
Building Products–1.36% | ||||||
Trane Technologies PLC | 399,300 | 74,193,933 | ||||
Cargo Ground Transportation–1.81% | ||||||
Old Dominion Freight Line, Inc.(c) | 308,614 | 98,876,839 | ||||
Casinos & Gaming–1.78% | ||||||
Las Vegas Sands Corp.(b) | 1,526,873 | 97,490,841 | ||||
Communications Equipment–3.73% | ||||||
Arista Networks, Inc.(b)(c) | 485,705 | 77,790,513 | ||||
Motorola Solutions, Inc. | 433,274 | 126,256,043 | ||||
204,046,556 | ||||||
Construction & Engineering–4.37% | ||||||
Comfort Systems USA, Inc. | 194,756 | 29,114,074 |
Shares | Value | |||||
Construction & Engineering–(continued) | ||||||
Quanta Services, Inc.(c) | 575,812 | $ 97,680,748 | ||||
Valmont Industries, Inc. | 98,494 | 28,618,417 | ||||
WillScot Mobile Mini Holdings Corp.(b) | 1,839,055 | 83,493,097 | ||||
238,906,336 | ||||||
Construction Materials–0.80% | ||||||
Vulcan Materials Co. | 248,929 | 43,592,446 | ||||
Copper–0.45% | ||||||
Freeport-McMoRan, Inc. | 652,824 | 24,748,558 | ||||
Data Processing & Outsourced Services–0.86% | ||||||
ExlService Holdings, Inc.(b) | 262,748 | 46,868,988 | ||||
Electrical Components & Equipment–2.22% | ||||||
AMETEK, Inc. | 464,466 | 64,063,796 | ||||
Rockwell Automation, Inc. | 202,969 | 57,523,444 | ||||
121,587,240 | ||||||
Environmental & Facilities Services–0.68% | ||||||
Waste Connections, Inc. | 267,900 | 37,278,285 | ||||
Fertilizers & Agricultural Chemicals–0.81% | ||||||
FMC Corp. | 359,198 | 44,389,689 | ||||
Financial Exchanges & Data–2.80% | ||||||
FactSet Research Systems, Inc. | 115,044 | 47,362,464 | ||||
MarketAxess Holdings, Inc. | 120,312 | 38,303,732 | ||||
MSCI, Inc. | 139,707 | 67,401,642 | ||||
153,067,838 | ||||||
Footwear–1.89% | ||||||
Deckers Outdoor Corp.(b) | 154,114 | 73,873,005 | ||||
On Holding AG, Class A | 911,270 | 29,570,711 | ||||
103,443,716 | ||||||
Health Care Distributors–0.81% | ||||||
McKesson Corp. | 121,102 | 44,110,193 | ||||
Health Care Equipment–7.97% | ||||||
DexCom, Inc.(b) | 785,674 | 95,333,683 | ||||
IDEXX Laboratories, Inc.(b) | 200,115 | 98,488,598 | ||||
Inspire Medical Systems, Inc.(b)(c) | 158,977 | 42,547,014 | ||||
Insulet Corp.(b)(c) | 293,265 | 93,270,001 | ||||
ResMed, Inc. | 224,640 | 54,129,254 | ||||
Shockwave Medical, Inc.(b) | 181,093 | 52,545,945 | ||||
436,314,495 | ||||||
Health Care Facilities–0.78% | ||||||
Encompass Health Corp. | 665,749 | 42,707,798 | ||||
Health Care Supplies–1.27% | ||||||
Align Technology, Inc.(b) | 85,043 | 27,664,488 | ||||
Cooper Cos., Inc. (The) | 109,727 | 41,855,364 | ||||
69,519,852 | ||||||
Homebuilding–2.31% | ||||||
D.R. Horton, Inc. | 889,589 | 97,694,664 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Discovery Mid Cap Growth Fund |
Shares | Value | |||||
Homebuilding–(continued) | ||||||
TopBuild Corp.(b) | 127,500 | $ 28,748,700 | ||||
126,443,364 | ||||||
Hotels, Resorts & Cruise Lines–1.48% | ||||||
Hilton Worldwide Holdings, Inc. | 560,901 | 80,780,962 | ||||
Human Resource & Employment Services–1.05% | ||||||
Paylocity Holding Corp.(b) | 297,555 | 57,514,406 | ||||
Industrial Machinery & Supplies & Components–3.78% | ||||||
IDEX Corp. | 261,008 | 53,851,171 | ||||
Ingersoll Rand, Inc. | 738,727 | 42,122,213 | ||||
Lincoln Electric Holdings, Inc.(c) | 261,625 | 43,900,675 | ||||
Parker-Hannifin Corp. | 207,118 | 67,288,496 | ||||
207,162,555 | ||||||
Insurance Brokers–1.19% | ||||||
Arthur J. Gallagher & Co.(c) | 314,109 | 65,353,519 | ||||
Interactive Media & Services–0.55% | ||||||
Pinterest, Inc., Class A(b) | 1,306,634 | 30,052,582 | ||||
Internet Services & Infrastructure–0.65% | ||||||
MongoDB, Inc.(b) | 147,465 | 35,385,701 | ||||
IT Consulting & Other Services–0.49% | ||||||
Amdocs Ltd. | 294,160 | 26,842,100 | ||||
Life Sciences Tools & Services–5.16% | ||||||
Agilent Technologies, Inc. | 457,011 | 61,893,000 | ||||
Bruker Corp. | 344,753 | 27,280,305 | ||||
Mettler-Toledo International, Inc.(b)(c) | 67,624 | 100,861,196 | ||||
Repligen Corp.(b)(c) | 181,282 | 27,487,789 | ||||
West Pharmaceutical Services, Inc. | 179,529 | 64,853,056 | ||||
282,375,346 | ||||||
Managed Health Care–1.70% | ||||||
Humana, Inc. | 133,647 | 70,898,397 | ||||
Molina Healthcare, Inc.(b) | 73,703 | 21,955,387 | ||||
92,853,784 | ||||||
Movies & Entertainment–1.06% | ||||||
Liberty Media Corp.-Liberty Formula One, Class C(b)(c) | 801,811 | 57,882,736 | ||||
Oil & Gas Exploration & Production–1.23% | ||||||
Diamondback Energy, Inc.(c) | 473,041 | 67,266,430 | ||||
Oil & Gas Storage & Transportation–1.91% | ||||||
Cheniere Energy, Inc. | 433,740 | 66,362,220 | ||||
Targa Resources Corp. | 509,004 | 38,445,072 | ||||
104,807,292 | ||||||
Other Specialty Retail–4.90% | ||||||
Five Below, Inc.(b) | 241,041 | 47,571,852 | ||||
Tractor Supply Co.(c) | 404,860 | 96,518,624 | ||||
Ulta Beauty, Inc.(b) | 225,305 | 124,239,936 | ||||
268,330,412 |
Shares | Value | |||||||
| ||||||||
Packaged Foods & Meats–1.72% |
| |||||||
Hershey Co. (The) | 105,484 | $ | 28,803,461 | |||||
| ||||||||
Lamb Weston Holdings, Inc. | 586,057 | 65,527,033 | ||||||
| ||||||||
94,330,494 | ||||||||
| ||||||||
Restaurants–2.20% |
| |||||||
Chipotle Mexican Grill, Inc.(b) | 58,196 | 120,327,214 | ||||||
| ||||||||
Semiconductors–5.92% |
| |||||||
First Solar, Inc.(b) | 252,080 | 46,024,766 | ||||||
| ||||||||
GLOBALFOUNDRIES, Inc.(b)(c) | 750,820 | 44,148,216 | ||||||
| ||||||||
Lattice Semiconductor Corp.(b) | 976,296 | 77,810,791 | ||||||
| ||||||||
Monolithic Power Systems, Inc. | 240,386 | 111,051,121 | ||||||
| ||||||||
Silicon Laboratories, Inc.(b)(c) | 323,822 | 45,108,405 | ||||||
| ||||||||
324,143,299 | ||||||||
| ||||||||
Soft Drinks & Non-alcoholic Beverages–1.40% |
| |||||||
Monster Beverage Corp.(b) | 1,367,670 | 76,589,520 | ||||||
| ||||||||
Steel–0.65% | ||||||||
Steel Dynamics, Inc.(c) | 344,235 | 35,783,228 | ||||||
| ||||||||
Trading Companies & Distributors–2.18% |
| |||||||
United Rentals, Inc. | 122,382 | 44,193,364 | ||||||
| ||||||||
W.W. Grainger, Inc. | 108,389 | 75,392,137 | ||||||
| ||||||||
119,585,501 | ||||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 5,298,186,167 | ||||||
| ||||||||
Money Market Funds–2.61% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e) | 50,011,037 | 50,011,037 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(d)(e) | 35,713,879 | 35,724,594 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(d)(e) | 57,155,471 | 57,155,471 | ||||||
| ||||||||
Total Money Market Funds |
| 142,891,102 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.42% |
| 5,441,077,269 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–5.46% |
| |||||||
Invesco Private Government Fund, 4.83%(d)(e)(f) | 74,461,446 | 74,461,446 | ||||||
| ||||||||
Invesco Private Prime Fund, 4.99%(d)(e)(f) | 224,070,548 | 224,070,548 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 298,531,994 | ||||||
| ||||||||
TOTAL INVESTMENTS IN |
| 5,739,609,263 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(4.88)% |
| (266,923,572 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 5,472,685,691 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Discovery Mid Cap Growth Fund |
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2023. |
(d) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ 79,857,341 | $ 450,371,036 | $ (480,217,340) | $ - | $ - | $ 50,011,037 | $ 884,224 | |||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 73,994,709 | 321,693,597 | (359,969,447) | (19,833) | 25,568 | 35,724,594 | 699,875 | |||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 91,265,533 | 514,709,755 | (548,819,817) | - | - | 57,155,471 | 1,009,949 | |||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 80,573,512 | 369,209,937 | (375,322,003) | - | - | 74,461,446 | 1,116,326* | |||||||||||||||||||||
Invesco Private Prime Fund | 207,131,108 | 799,993,455 | (783,017,369) | (3,696) | (32,950) | 224,070,548 | 3,122,768* | |||||||||||||||||||||
Total | $532,822,203 | $2,455,977,780 | $(2,547,345,976) | $(23,529) | $ (7,382) | $441,423,096 | $ 6,833,142 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2023
Industrials | 21.59 | % | |||
Information Technology | 20.84 | ||||
Health Care | 18.68 | ||||
Consumer Discretionary | 18.10 | ||||
Financials | 6.12 | ||||
Energy | 3.14 | ||||
Consumer Staples | 3.12 | ||||
Materials | 2.71 | ||||
Communication Services | 2.51 | ||||
Money Market Funds Plus Other Assets Less Liabilities | 3.19 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Discovery Mid Cap Growth Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: |
| |||
Investments in unaffiliated securities, at value (Cost $4,559,583,188)* | $ | 5,298,186,167 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $441,424,433) | 441,423,096 | |||
| ||||
Cash | 181,497 | |||
| ||||
Receivable for: |
| |||
Investments sold | 83,382,806 | |||
| ||||
Fund shares sold | 2,599,807 | |||
| ||||
Dividends | 1,143,741 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 429,953 | |||
| ||||
Other assets | 85,438 | |||
| ||||
Total assets | 5,827,432,505 | |||
| ||||
Liabilities: |
| |||
Payable for: |
| |||
Investments purchased | 49,105,310 | |||
| ||||
Fund shares reacquired | 3,732,499 | |||
| ||||
Collateral upon return of securities loaned | 298,536,181 | |||
| ||||
Accrued fees to affiliates | 2,728,012 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 4,848 | |||
| ||||
Accrued other operating expenses | 164,188 | |||
| ||||
Trustee deferred compensation and retirement plans | 475,776 | |||
| ||||
Total liabilities | 354,746,814 | |||
| ||||
Net assets applicable to shares outstanding | $ | 5,472,685,691 | ||
| ||||
Net assets consist of: |
| |||
Shares of beneficial interest | $ | 5,159,743,578 | ||
| ||||
Distributable earnings | 312,942,113 | |||
| ||||
$ | 5,472,685,691 | |||
|
Net Assets: |
| |||
Class A | $ | 3,291,749,423 | ||
| ||||
Class C | $ | 104,249,146 | ||
| ||||
Class R | $ | 125,502,319 | ||
| ||||
Class Y | $ | 669,722,371 | ||
| ||||
Class R5 | $ | 109,900,530 | ||
| ||||
Class R6 | $ | 1,171,561,902 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 151,898,806 | |||
| ||||
Class C | 6,735,267 | |||
| ||||
Class R | 6,476,095 | |||
| ||||
Class Y | 26,050,800 | |||
| ||||
Class R5 | 4,994,613 | |||
| ||||
Class R6 | 44,444,709 | |||
| ||||
Class A: |
| |||
Net asset value per share | $ | 21.67 | ||
| ||||
Maximum offering price per share |
| |||
(Net asset value of $21.67 ÷ 94.50%) | $ | 22.93 | ||
| ||||
Class C: |
| |||
Net asset value and offering price per share | $ | 15.48 | ||
| ||||
Class R: |
| |||
Net asset value and offering price per share | $ | 19.38 | ||
| ||||
Class Y: |
| |||
Net asset value and offering price per share | $ | 25.71 | ||
| ||||
Class R5: |
| |||
Net asset value and offering price per share | $ | 22.00 | ||
| ||||
Class R6: |
| |||
Net asset value and offering price per share | $ | 26.36 | ||
|
* | At April 30, 2023, securities with an aggregate value of $298,626,206 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Discovery Mid Cap Growth Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $56,175) | $ | 18,325,541 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $936,225) | 3,530,273 | |||
| ||||
Total investment income | 21,855,814 | |||
| ||||
Expenses: | ||||
Advisory fees | 16,786,113 | |||
| ||||
Administrative services fees | 395,847 | |||
| ||||
Custodian fees | 15,838 | |||
| ||||
Distribution fees: | ||||
Class A | 4,086,249 | |||
| ||||
Class C | 539,771 | |||
| ||||
Class R | 310,156 | |||
| ||||
Transfer agent fees – A, C, R and Y | 3,627,867 | |||
| ||||
Transfer agent fees – R5 | 54,048 | |||
| ||||
Transfer agent fees – R6 | 174,144 | |||
| ||||
Trustees’ and officers’ fees and benefits | 22,993 | |||
| ||||
Registration and filing fees | 138,667 | |||
| ||||
Reports to shareholders | 169,552 | |||
| ||||
Professional services fees | 54,140 | |||
| ||||
Other | (744,411 | ) | ||
| ||||
Total expenses | 25,630,974 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (132,403 | ) | ||
| ||||
Net expenses | 25,498,571 | |||
| ||||
Net investment income (loss) | (3,642,757 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (165,152,535 | ) | ||
| ||||
Affiliated investment securities | (7,382 | ) | ||
| ||||
Foreign currencies | (261 | ) | ||
| ||||
(165,160,178 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 214,236,782 | |||
| ||||
Affiliated investment securities | (23,529 | ) | ||
| ||||
214,213,253 | ||||
| ||||
Net realized and unrealized gain | 49,053,075 | |||
| ||||
Net increase in net assets resulting from operations | $ | 45,410,318 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Discovery Mid Cap Growth Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (3,642,757 | ) | $ | (22,378,956 | ) | ||
| ||||||||
Net realized gain (loss) | (165,160,178 | ) | (233,239,924 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 214,213,253 | (2,289,772,399 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 45,410,318 | (2,545,391,279 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | – | (812,766,598 | ) | |||||
| ||||||||
Class C | – | (41,238,028 | ) | |||||
| ||||||||
Class R | – | (30,829,170 | ) | |||||
| ||||||||
Class Y | – | (130,957,329 | ) | |||||
| ||||||||
Class R5 | – | (23,402,647 | ) | |||||
| ||||||||
Class R6 | – | (207,455,097 | ) | |||||
| ||||||||
Total distributions from distributable earnings | – | (1,246,648,869 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (132,206,335 | ) | 514,718,145 | |||||
| ||||||||
Class C | (11,777,189 | ) | 11,920,207 | |||||
| ||||||||
Class R | 277,483 | 29,406,569 | ||||||
| ||||||||
Class Y | (5,181,467 | ) | 127,483,890 | |||||
| ||||||||
Class R5 | 2,010,123 | 22,515,201 | ||||||
| ||||||||
Class R6 | (14,238,249 | ) | 311,123,821 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (161,115,634 | ) | 1,017,167,833 | |||||
| ||||||||
Net increase (decrease) in net assets | (115,705,316 | ) | (2,774,872,315 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 5,588,391,007 | 8,363,263,322 | ||||||
| ||||||||
End of period | $ | 5,472,685,691 | $ | 5,588,391,007 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Discovery Mid Cap Growth Fund |
(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(c) | Ratio of net investment income (loss) to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $21.50 | $(0.02 | ) | $ 0.19 | $ 0.17 | $ – | $21.67 | 0.79 | % | $3,291,749 | 1.03 | %(e) | 1.03 | %(e) | (0.23 | )%(e) | 61 | % | ||||||||||||||||||||||||||||||
Year ended 10/31/22 | 37.13 | (0.11 | ) | (9.79 | ) | (9.90 | ) | (5.73 | ) | 21.50 | (30.69 | ) | 3,398,899 | 1.04 | 1.04 | (0.44 | ) | 94 | ||||||||||||||||||||||||||||||
Year ended 10/31/21 | 26.65 | (0.25 | ) | 11.81 | 11.56 | (1.08 | ) | 37.13 | 44.48 | 5,288,400 | 1.03 | 1.03 | (0.76 | ) | 92 | |||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 22.17 | (0.13 | ) | 5.60 | 5.47 | (0.99 | ) | 26.65 | 25.60 | (f) | 3,787,636 | 1.05 | (f) | 1.05 | (f) | (0.54 | )(f) | 131 | ||||||||||||||||||||||||||||||
Year ended 10/31/19 | 20.28 | (0.08 | ) | 3.75 | 3.67 | (1.78 | ) | 22.17 | 20.43 | 748,190 | 1.11 | 1.11 | (0.37 | ) | 84 | |||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 21.45 | (0.12 | ) | 0.81 | 0.69 | (1.86 | ) | 20.28 | 3.52 | 604,414 | 1.11 | 1.11 | (0.55 | ) | 108 | |||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 15.41 | (0.07 | ) | 0.14 | 0.07 | – | 15.48 | 0.45 | (f) | 104,249 | 1.77 | (e)(f) | 1.77 | (e)(f) | (0.97 | )(e)(f) | 61 | |||||||||||||||||||||||||||||||
Year ended 10/31/22 | 28.52 | (0.21 | ) | (7.17 | ) | (7.38 | ) | (5.73 | ) | 15.41 | (31.22 | )(f) | 115,662 | 1.78 | (f) | 1.78 | (f) | (1.18 | )(f) | 94 | ||||||||||||||||||||||||||||
Year ended 10/31/21 | 20.83 | (0.36 | ) | 9.13 | 8.77 | (1.08 | ) | 28.52 | 43.47 | (f) | 206,799 | 1.73 | (f) | 1.73 | (f) | (1.46 | )(f) | 92 | ||||||||||||||||||||||||||||||
Year ended 10/31/20 | 17.65 | (0.24 | ) | 4.41 | 4.17 | (0.99 | ) | 20.83 | 24.74 | 190,420 | 1.82 | 1.82 | (1.31 | ) | 131 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 16.65 | (0.18 | ) | 2.96 | 2.78 | (1.78 | ) | 17.65 | 19.43 | 138,705 | 1.87 | 1.87 | (1.12 | ) | 84 | |||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 18.06 | (0.23 | ) | 0.68 | 0.45 | (1.86 | ) | 16.65 | 2.79 | 153,263 | 1.86 | 1.86 | (1.30 | ) | 108 | |||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 19.25 | (0.05 | ) | 0.18 | 0.13 | – | 19.38 | 0.68 | 125,502 | 1.28 | (e) | 1.28 | (e) | (0.48 | )(e) | 61 | ||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 33.95 | (0.15 | ) | (8.82 | ) | (8.97 | ) | (5.73 | ) | 19.25 | (30.85 | ) | 124,370 | 1.29 | 1.29 | (0.69 | ) | 94 | ||||||||||||||||||||||||||||||
Year ended 10/31/21 | 24.51 | (0.30 | ) | 10.82 | 10.52 | (1.08 | ) | 33.95 | 44.11 | 181,872 | 1.28 | 1.28 | (1.01 | ) | 92 | |||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 20.51 | (0.18 | ) | 5.17 | 4.99 | (0.99 | ) | 24.51 | 25.31 | 121,009 | 1.32 | 1.32 | (0.81 | ) | 131 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 18.95 | (0.12 | ) | 3.46 | 3.34 | (1.78 | ) | 20.51 | 20.09 | 75,342 | 1.37 | 1.37 | (0.62 | ) | 84 | |||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 20.21 | (0.16 | ) | 0.76 | 0.60 | (1.86 | ) | 18.95 | 3.27 | 63,189 | 1.36 | 1.36 | (0.80 | ) | 108 | |||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 25.48 | 0.00 | 0.23 | 0.23 | – | 25.71 | 0.90 | 669,722 | 0.78 | (e) | 0.78 | (e) | 0.02 | (e) | 61 | |||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 42.77 | (0.05 | ) | (11.51 | ) | (11.56 | ) | (5.73 | ) | 25.48 | (30.50 | ) | 668,812 | 0.79 | 0.79 | (0.19 | ) | 94 | ||||||||||||||||||||||||||||||
Year ended 10/31/21 | 30.48 | (0.19 | ) | 13.56 | 13.37 | (1.08 | ) | 42.77 | 44.84 | 971,407 | 0.78 | 0.78 | (0.51 | ) | 92 | |||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 25.15 | (0.08 | ) | 6.40 | 6.32 | (0.99 | ) | 30.48 | 25.95 | 538,205 | 0.82 | 0.82 | (0.31 | ) | 131 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 22.71 | (0.03 | ) | 4.25 | 4.22 | (1.78 | ) | 25.15 | 20.68 | 253,901 | 0.87 | 0.87 | (0.13 | ) | 84 | |||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 23.74 | (0.07 | ) | 0.90 | 0.83 | (1.86 | ) | 22.71 | 3.79 | 243,035 | 0.87 | 0.87 | (0.31 | ) | 108 | |||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 21.80 | 0.01 | 0.19 | 0.20 | – | 22.00 | 0.92 | 109,901 | 0.71 | (e) | 0.71 | (e) | 0.09 | (e) | 61 | |||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 37.45 | (0.03 | ) | (9.89 | ) | (9.92 | ) | (5.73 | ) | 21.80 | (30.45 | ) | 106,860 | 0.73 | 0.73 | (0.13 | ) | 94 | ||||||||||||||||||||||||||||||
Year ended 10/31/21 | 26.80 | (0.15 | ) | 11.88 | 11.73 | (1.08 | ) | 37.45 | 44.88 | 155,263 | 0.72 | 0.72 | (0.45 | ) | 92 | |||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 22.20 | (0.05 | ) | 5.64 | 5.59 | (0.99 | ) | 26.80 | 26.12 | 110,206 | 0.71 | 0.71 | (0.20 | ) | 131 | |||||||||||||||||||||||||||||||||
Period ended 10/31/19(g) | 20.60 | 0.00 | 1.60 | 1.60 | – | 22.20 | 7.77 | 11 | 0.75 | (e) | 0.75 | (e) | (0.01 | )(e) | 84 | |||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 26.10 | 0.02 | 0.24 | 0.26 | – | 26.36 | 1.00 | 1,171,562 | 0.64 | (e) | 0.64 | (e) | 0.16 | (e) | 61 | |||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 43.62 | (0.02 | ) | (11.77 | ) | (11.79 | ) | (5.73 | ) | 26.10 | (30.43 | ) | 1,173,789 | 0.67 | 0.67 | (0.07 | ) | 94 | ||||||||||||||||||||||||||||||
Year ended 10/31/21 | 31.03 | (0.14 | ) | 13.81 | 13.67 | (1.08 | ) | 43.62 | 45.02 | 1,559,522 | 0.65 | 0.65 | (0.38 | ) | 92 | |||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 25.55 | (0.04 | ) | 6.51 | 6.47 | (0.99 | ) | 31.03 | 26.14 | 904,245 | 0.65 | 0.65 | (0.14 | ) | 131 | |||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 23.00 | 0.01 | 4.32 | 4.33 | (1.78 | ) | 25.55 | 20.92 | 345,282 | 0.69 | 0.69 | 0.05 | 84 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 23.98 | (0.03 | ) | 0.91 | 0.88 | (1.86 | ) | 23.00 | 3.97 | 199,881 | 0.70 | 0.70 | (0.14 | ) | 108 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the years ended October 31, 2019 and 2018, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2020, the portfolio turnover calculation excludes the value of securities purchased of $2,263,197,717 in connection with the acquisition of Invesco Mid Cap Growth Fund into the Fund. |
(e) | Annualized. |
(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 0.99%, 0.99% and 0.95% for Class C for six months ended April 30, 2023, the years ended October 31, 2022 and October 31, 2021 respectively and 0.23% for Class A the year ended October 31, 2020. |
(g) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Discovery Mid Cap Growth Fund |
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Discovery Mid Cap Growth Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.
12 | Invesco Discovery Mid Cap Growth Fund |
Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner
13 | Invesco Discovery Mid Cap Growth Fund |
consistent with the federal securities laws. For the six months ended April 30, 2023, the Fund paid the Adviser $88,346 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate* | |||
| ||||
First $ 500 million | 0.680% | |||
| ||||
Next $500 million | 0.650% | |||
| ||||
Next $4 billion | 0.620% | |||
| ||||
Over $5 billion | 0.600% | |||
|
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.61%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares 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 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $67,013.
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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to
14 | Invesco Discovery Mid Cap Growth Fund |
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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively the “Plans”). The Fund, pursuant to the Plans, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares, up to 1.00% of the average daily net assets of Class C shares, and up to 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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 Plan 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $228,073 in front-end sales commissions from the sale of Class A shares and $16,300 and $1,925 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended April 30, 2023, the Fund incurred $51,401 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | $ | 5,298,186,167 | $ | – | $– | $ | 5,298,186,167 | |||||||||
| ||||||||||||||||
Money Market Funds | 142,891,102 | 298,531,994 | – | 441,423,096 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 5,441,077,269 | $ | 298,531,994 | $– | $ | 5,739,609,263 | |||||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $65,390.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–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.
15 | Invesco Discovery Mid Cap Growth Fund |
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||
| ||||||
Expiration | Short-Term | Long-Term | Total | |||
| ||||||
Not subject to expiration | $205,851,666 | $– | �� $205,851,666 | |||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $3,323,020,523 and $3,521,304,153, 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 | $796,070,601 | |||
| ||||
Aggregate unrealized (depreciation) of investments | (93,479,821 | ) | ||
| ||||
Net unrealized appreciation of investments | $702,590,780 | |||
|
Cost of investments for tax purposes is $5,037,018,483.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 4,789,075 | $ | 102,556,194 | 11,816,206 | $ | 295,474,702 | ||||||||||
| ||||||||||||||||
Class C | 447,317 | 6,873,573 | 1,051,819 | 19,432,387 | ||||||||||||
| ||||||||||||||||
Class R | 628,227 | 12,060,098 | 1,284,557 | 28,768,746 | ||||||||||||
| ||||||||||||||||
Class Y | 5,811,530 | 147,491,420 | 10,913,002 | 320,936,382 | ||||||||||||
| ||||||||||||||||
Class R5 | 349,357 | 7,589,894 | 719,838 | 18,284,370 | ||||||||||||
| ||||||||||||||||
Class R6 | 6,141,201 | 159,228,437 | 17,960,601 | 529,642,874 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | - | - | 26,589,469 | 773,221,924 | ||||||||||||
| ||||||||||||||||
Class C | - | - | 1,909,121 | 40,053,351 | ||||||||||||
| ||||||||||||||||
Class R | - | - | 1,179,551 | 30,774,475 | ||||||||||||
| ||||||||||||||||
Class Y | - | - | 3,254,966 | 111,905,740 | ||||||||||||
| ||||||||||||||||
Class R5 | - | - | 795,893 | 23,399,246 | ||||||||||||
| ||||||||||||||||
Class R6 | - | - | 5,834,791 | 205,326,299 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 300,815 | 6,433,814 | 679,402 | 16,377,029 | ||||||||||||
| ||||||||||||||||
Class C | (420,550 | ) | (6,433,814 | ) | (940,844 | ) | (16,377,029 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (11,268,727 | ) | (241,196,343 | ) | (23,451,842 | ) | (570,355,510 | ) | ||||||||
| ||||||||||||||||
Class C | (794,839 | ) | (12,216,948 | ) | (1,768,643 | ) | (31,188,502 | ) | ||||||||
| ||||||||||||||||
Class R | (612,199 | ) | (11,782,615 | ) | (1,360,714 | ) | (30,136,652 | ) | ||||||||
| ||||||||||||||||
Class Y | (6,012,970 | ) | (152,672,887 | ) | (10,629,873 | ) | (305,358,232 | ) | ||||||||
| ||||||||||||||||
Class R5 | (257,103 | ) | (5,579,771 | ) | (759,081 | ) | (19,168,415 | ) | ||||||||
| ||||||||||||||||
Class R6 | (6,662,698 | ) | (173,466,686 | ) | (14,579,687 | ) | (423,845,352 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (7,561,564 | ) | $ | (161,115,634 | ) | 30,498,532 | $ | 1,017,167,833 | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 23% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
16 | Invesco Discovery Mid Cap 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $1,007.90 | $5.13 | $1,019.69 | $5.16 | 1.03% | ||||||
Class C | 1,000.00 | 1,003.90 | 8.79 | 1,016.02 | 8.85 | 1.77 | ||||||
Class R | 1,000.00 | 1,006.80 | 6.37 | 1,018.45 | 6.41 | 1.28 | ||||||
Class Y | 1,000.00 | 1,009.00 | 3.89 | 1,020.93 | 3.91 | 0.78 | ||||||
Class R5 | 1,000.00 | 1,009.20 | 3.54 | 1,021.27 | 3.56 | 0.71 | ||||||
Class R6 | 1,000.00 | 1,010.00 | 3.19 | 1,021.62 | 3.21 | 0.64 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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 Discovery Mid Cap Growth Fund |
Go paperless with eDelivery
Visit invesco.com/edelivery to enjoy the convenience and security of anytime electronic access to your investment documents.
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-DMCG-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco EQV Emerging Markets All Cap Fund
Nasdaq:
A: GTDDX ∎ C: GTDCX ∎ Y: GTDYX ∎ R5: GTDIX ∎ R6: GTDFX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
8 | Financial Statements | |
11 | Financial Highlights | |
12 | Notes to Financial Statements | |
18 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary | ||||
Fund vs. Indexes | ||||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 22.12 | % | ||
Class C Shares | 21.67 | |||
Class Y Shares | 22.29 | |||
Class R5 Shares | 22.30 | |||
Class R6 Shares | 22.33 | |||
MSCI Emerging Markets Index▼ (Broad Market/Style-Specific Index) | 16.36 | |||
Source(s): ▼RIMES Technologies Corp. |
| |||
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. |
| |||
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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco EQV Emerging Markets All Cap Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (1/11/94) | 4.64 | % | ||
10 Years | 1.00 | |||
5 Years | 0.25 | |||
1 Year | 3.35 | |||
Class C Shares | ||||
Inception (3/1/99) | 7.88 | % | ||
10 Years | 0.96 | |||
5 Years | 0.63 | |||
1 Year | 7.53 | |||
Class Y Shares | ||||
Inception (10/3/08) | 5.84 | % | ||
10 Years | 1.82 | |||
5 Years | 1.64 | |||
1 Year | 9.62 | |||
Class R5 Shares | ||||
Inception (10/25/05) | 6.68 | % | ||
10 Years | 1.93 | |||
5 Years | 1.71 | |||
1 Year | 9.67 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 2.67 | % | ||
10 Years | 1.98 | |||
5 Years | 1.78 | |||
1 Year | 9.77 |
The performance data quoted represent past performance and cannot guarantee 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.
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 EQV Emerging Markets All Cap Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco EQV Emerging Markets All Cap Fund |
April 30, 2023
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–93.57% |
| |||||||
Brazil–11.96% | ||||||||
Ambev S.A., ADR | 7,405,469 | $ | 20,735,313 | |||||
| ||||||||
Arcos Dorados Holdings, Inc., Class A(a) | 9,317,803 | 73,983,356 | ||||||
| ||||||||
B3 S.A. - Brasil, Bolsa, Balcao | 4,309,160 | 10,090,819 | ||||||
| ||||||||
Multiplan Empreendimentos Imobiliarios S.A. | 11,259,329 | 58,465,981 | ||||||
| ||||||||
Raia Drogasil S.A. | 5,920,900 | 31,196,370 | ||||||
| ||||||||
TOTVS S.A. | 3,772,700 | 19,408,854 | ||||||
| ||||||||
213,880,693 | ||||||||
| ||||||||
China–27.24% |
| |||||||
Airtac International Group | 898,000 | 32,592,055 | ||||||
| ||||||||
China Mengniu Dairy Co. Ltd. | 11,217,000 | 45,223,208 | ||||||
| ||||||||
China Resources Beer Holdings Co. Ltd. | 6,192,000 | 47,857,802 | ||||||
| ||||||||
Chongqing Fuling Zhacai Group Co. Ltd., A Shares | 6,187,359 | 23,095,167 | ||||||
| ||||||||
Fuyao Glass Industry Group Co. Ltd., H Shares(b) | 7,460,000 | 30,322,566 | ||||||
| ||||||||
JD.com, Inc., ADR(c) | 921,750 | 32,924,910 | ||||||
| ||||||||
Meituan, B Shares(b)(d) | 95,430 | 1,628,634 | ||||||
| ||||||||
Prosus N.V. | 222,367 | 16,652,784 | ||||||
| ||||||||
Tencent Holdings Ltd. | 993,000 | 43,927,574 | ||||||
| ||||||||
Tongcheng Travel Holdings | 22,288,000 | 47,421,538 | ||||||
| ||||||||
Wuliangye Yibin Co. Ltd., A Shares | 2,140,260 | 52,421,333 | ||||||
| ||||||||
Yum China Holdings, Inc. | 1,845,858 | 112,929,591 | ||||||
| ||||||||
486,997,162 | ||||||||
| ||||||||
Egypt–1.46% |
| |||||||
Eastern Co. S.A.E. | 14,250,488 | 8,024,426 | ||||||
| ||||||||
Egyptian Financial Group-Hermes Holding Co.(d) | 30,747,602 | 18,159,992 | ||||||
| ||||||||
26,184,418 | ||||||||
| ||||||||
France–2.57% |
| |||||||
Bollore SE | 6,808,819 | 45,928,053 | ||||||
| ||||||||
Hungary–3.77% |
| |||||||
Gedeon Richter PLC | 2,790,740 | 67,337,703 | ||||||
| ||||||||
India–4.83% |
| |||||||
Emami Ltd. | 3,355,291 | 15,391,358 | ||||||
| ||||||||
HDFC Bank Ltd., ADR | 1,017,245 | 71,003,701 | ||||||
| ||||||||
86,395,059 | ||||||||
| ||||||||
Indonesia–6.09% |
| |||||||
PT Bank Central Asia Tbk | 74,917,000 | 46,305,334 | ||||||
| ||||||||
PT Kalbe Farma Tbk | 296,157,900 | 42,867,329 | ||||||
| ||||||||
PT Telkom Indonesia (Persero) Tbk | 68,261,900 | 19,728,362 | ||||||
| ||||||||
108,901,025 | ||||||||
| ||||||||
Macau–0.69% |
| |||||||
Galaxy Entertainment Group | 1,726,000 | 12,270,581 | ||||||
| ||||||||
Mexico–11.88% |
| |||||||
Bolsa Mexicana de Valores S.A.B. de C.V. | 20,133,720 | 44,512,660 | ||||||
| ||||||||
GMexico Transportes S.A.B. de C.V. | 15,645,254 | 36,086,025 | ||||||
|
Shares | Value | |||||||
| ||||||||
Mexico–(continued) |
| |||||||
Grupo Aeroportuario del Centro Norte S.A.B. de C.V. | 3,674,398 | $ | 40,390,891 | |||||
| ||||||||
Grupo Aeroportuario del Pacifico S.A.B.de C.V., Class B | 645,638 | 11,487,146 | ||||||
| ||||||||
Kimberly-Clark de Mexico S.A.B. de C.V., Class A | 21,447,492 | 48,645,887 | ||||||
| ||||||||
Wal-Mart de Mexico S.A.B. de C.V., Series V | 7,738,710 | 31,201,039 | ||||||
| ||||||||
212,323,648 | ||||||||
| ||||||||
Nigeria–1.24% |
| |||||||
Zenith Bank PLC | 447,469,084 | 22,111,457 | ||||||
| ||||||||
Philippines–6.20% | ||||||||
BDO Unibank, Inc. | 26,261,172 | 68,520,006 | ||||||
| ||||||||
SM Investments Corp. | 613,590 | 9,921,017 | ||||||
| ||||||||
SM Prime Holdings, Inc. | 52,881,800 | 32,435,227 | ||||||
| ||||||||
110,876,250 | ||||||||
| ||||||||
Russia–0.00% |
| |||||||
Detsky Mir PJSC(e) | 6,640,610 | 7 | ||||||
| ||||||||
Moscow Exchange MICEX-RTS PJSC(d)(e) | 11,806,000 | 12 | ||||||
| ||||||||
Sberbank of Russia PJSC(d)(e) | 11,900,044 | 12 | ||||||
| ||||||||
Sberbank of Russia PJSC, Preference Shares(e) | 15,636,015 | 15 | ||||||
| ||||||||
46 | ||||||||
| ||||||||
South Africa–0.99% |
| |||||||
Naspers Ltd., Class N | 98,890 | 17,662,972 | ||||||
| ||||||||
South Korea–4.36% |
| |||||||
Douzone Bizon Co. Ltd. | 335,094 | 7,672,806 | ||||||
| ||||||||
LEENO Industrial, Inc. | 116,138 | 11,667,285 | ||||||
| ||||||||
Samsung Electronics Co. Ltd. | 1,188,962 | 58,578,245 | ||||||
| ||||||||
77,918,336 | ||||||||
| ||||||||
Taiwan–7.25% |
| |||||||
ASPEED Technology, Inc. | 155,000 | 13,211,360 | ||||||
| ||||||||
MediaTek, Inc. | 771,000 | 16,755,728 | ||||||
| ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 4,348,000 | 71,305,024 | ||||||
| ||||||||
Visual Photonics Epitaxy Co. Ltd. | 8,979,000 | 28,289,497 | ||||||
| ||||||||
129,561,609 | ||||||||
| ||||||||
Turkey–1.08% |
| |||||||
Haci Omer Sabanci Holding A.S. | 9,859,536 | 19,342,793 | ||||||
| ||||||||
United Arab Emirates–1.51% | ||||||||
Emaar Properties PJSC | 16,658,100 | 26,955,607 | ||||||
| ||||||||
Vietnam–0.45% |
| |||||||
Vietnam Dairy Products JSC | 2,723,148 | 8,138,948 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 1,672,786,360 | ||||||
| ||||||||
Money Market Funds–5.91% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(a)(f) | 36,983,883 | 36,983,883 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco EQV Emerging Markets All Cap Fund |
Shares | Value | |||||||
| ||||||||
Money Market Funds–(continued) |
| |||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(a)(f) | 26,410,128 | $ | 26,418,051 | |||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(a)(f) | 42,267,295 | 42,267,295 | ||||||
| ||||||||
Total Money Market Funds |
| 105,669,229 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES |
| 1,778,455,589 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–1.78% | ||||||||
Invesco Private Government Fund, 4.83%(a)(f)(g) | 8,897,365 | 8,897,365 | ||||||
|
Shares | Value | |||||||
| ||||||||
Money Market Funds–(continued) |
| |||||||
Invesco Private Prime Fund, 4.99%(a)(f)(g) | 22,878,939 | $ | 22,878,939 | |||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 31,776,304 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–101.26% |
| 1,810,231,893 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(1.26)% |
| (22,526,302 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 1,787,705,591 | ||||||
|
Investment Abbreviations:
ADR – American Depositary Receipt
Notes to Schedule of Investments:
(a) | Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or is an “affiliated person” under the Investment Company Act of 1940, as amended (the “1940 Act”), which defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. For the Investments in Other Affiliates below, 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 table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ 24,452,871 | $ | 81,727,471 | $ | (69,196,459 | ) | $ - | $ | - | $ | 36,983,883 | $ 537,076 | ||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 11,276,948 | 58,376,765 | (43,237,663 | ) | (1,027 | ) | 3,028 | 26,418,051 | 379,279 | |||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 27,946,138 | 93,402,824 | (79,081,667 | ) | - | - | 42,267,295 | 613,481 | ||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 14,372,862 | 63,915,668 | (69,391,165 | ) | - | - | 8,897,365 | 60,364* | ||||||||||||||||||||
Invesco Private Prime Fund | 36,948,524 | 156,921,519 | (170,982,409 | ) | (5,353 | ) | (3,342 | ) | 22,878,939 | 173,119* | ||||||||||||||||||
Investments in Other Affiliates: | ||||||||||||||||||||||||||||
Arcos Dorados Holdings, Inc., Class A | 73,318,658 | - | (3,490,047 | ) | 4,444,953 | (290,208 | ) | 73,983,356 | 757,609 | |||||||||||||||||||
Total | $188,316,001 | $ | 454,344,247 | $ | (435,379,410 | ) | $4,438,573 | $ | (290,522 | ) | $ | 211,428,889 | $2,520,928 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(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, 2023 was $79,372,738, which represented 4.44% of the Fund’s Net Assets. |
(c) | All or a portion of this security was out on loan at April 30, 2023. |
(d) | Non-income producing security. |
(e) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(f) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(g) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco EQV Emerging Markets All Cap Fund |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2023
Consumer Discretionary | 19.34 | % | |||
Consumer Staples | 18.57 | ||||
Financials | 16.78 | ||||
Information Technology | 12.69 | ||||
Industrials | 7.30 | ||||
Real Estate | 6.59 | ||||
Health Care | 6.17 | ||||
Communication Services | 6.13 | ||||
Money Market Funds Plus Other Assets Less Liabilities | 6.43 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco EQV Emerging Markets All Cap Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 1,598,803,004 | ||
| ||||
Investments in affiliates, at value | 211,428,889 | |||
| ||||
Foreign currencies, at value (Cost $3,846,480) | 3,565,622 | |||
| ||||
Receivable for: | ||||
Investments sold | 1,384,982 | |||
| ||||
Fund shares sold | 1,512,796 | |||
| ||||
Dividends | 6,739,846 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 243,591 | |||
| ||||
Other assets | 68,561 | |||
| ||||
Total assets | 1,823,747,291 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 1,825,984 | |||
| ||||
Fund shares reacquired | 1,080,818 | |||
| ||||
Amount due custodian | 7,053 | |||
| ||||
Collateral upon return of securities loaned | 31,778,459 | |||
| ||||
Accrued fees to affiliates | 727,461 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 647 | |||
| ||||
Accrued other operating expenses | 351,146 | |||
| ||||
Trustee deferred compensation and retirement plans | 270,132 | |||
| ||||
Total liabilities | 36,041,700 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,787,705,591 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 1,560,551,189 | ||
| ||||
Distributable earnings | 227,154,402 | |||
| ||||
$ | 1,787,705,591 | |||
|
Net Assets: | ||||
Class A | $ | 453,227,299 | ||
| ||||
Class C | $ | 9,202,839 | ||
| ||||
Class Y | $ | 688,352,718 | ||
| ||||
Class R5 | $ | 150,777,213 | ||
| ||||
Class R6 | $ | 486,145,522 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 13,527,224 | |||
| ||||
Class C | 280,615 | |||
| ||||
Class Y | 20,552,626 | |||
| ||||
Class R5 | 4,517,667 | |||
| ||||
Class R6 | 14,576,709 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 33.50 | ||
| ||||
Maximum offering price per share | $ | 35.45 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 32.80 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 33.49 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 33.38 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 33.35 | ||
|
* | At April 30, 2023, security with a value of $31,983,045 was on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco EQV Emerging Markets All Cap Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $1,959,261) | $ | 18,046,751 | ||
| ||||
Dividends from affiliates (includes net securities lending income of $12,309) | 2,299,754 | |||
| ||||
Total investment income | 20,346,505 | |||
| ||||
Expenses: | ||||
Advisory fees | 7,742,037 | |||
| ||||
Administrative services fees | 120,045 | |||
| ||||
Custodian fees | 66,692 | |||
| ||||
Distribution fees: | ||||
Class A | 550,598 | |||
| ||||
Class C | 43,812 | |||
| ||||
Transfer agent fees – A, C and Y | 839,481 | |||
| ||||
Transfer agent fees – R5 | 73,832 | |||
| ||||
Transfer agent fees – R6 | 72,273 | |||
| ||||
Trustees’ and officers’ fees and benefits | 11,190 | |||
| ||||
Registration and filing fees | 61,393 | |||
| ||||
Reports to shareholders | 119,980 | |||
| ||||
Professional services fees | 42,183 | |||
| ||||
Other | 16,437 | |||
| ||||
Total expenses | 9,759,953 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (43,074 | ) | ||
| ||||
Net expenses | 9,716,879 | |||
| ||||
Net investment income | 10,629,626 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (53,044,736 | ) | ||
| ||||
Affiliated investment securities | (290,522 | ) | ||
| ||||
Foreign currencies | (8,364 | ) | ||
| ||||
(53,343,622 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 380,730,319 | |||
| ||||
Affiliated investment securities | 4,438,573 | |||
| ||||
Foreign currencies | (27,735 | ) | ||
| ||||
385,141,157 | ||||
| ||||
Net realized and unrealized gain | 331,797,535 | |||
| ||||
Net increase in net assets resulting from operations | $ | 342,427,161 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco EQV Emerging Markets All Cap Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, 2023 | October 31, 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 10,629,626 | $ | 26,630,334 | ||||
| ||||||||
Net realized gain (loss) | (53,343,622 | ) | (29,968,582 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 385,141,157 | (757,360,727 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 342,427,161 | (760,698,975 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (5,022,572 | ) | (23,821,085 | ) | ||||
| ||||||||
Class C | (19,297 | ) | (557,095 | ) | ||||
| ||||||||
Class Y | (9,215,709 | ) | (45,068,032 | ) | ||||
| ||||||||
Class R5 | (2,292,630 | ) | (9,177,465 | ) | ||||
| ||||||||
Class R6 | (7,971,139 | ) | (33,332,046 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (24,521,347 | ) | (111,955,723 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (14,892,620 | ) | (936,473 | ) | ||||
| ||||||||
Class C | (95,387 | ) | (3,028,262 | ) | ||||
| ||||||||
Class Y | (22,339,228 | ) | (132,804,152 | ) | ||||
| ||||||||
Class R5 | (11,807,657 | ) | (6,196,426 | ) | ||||
| ||||||||
Class R6 | (51,131,941 | ) | (40,373,264 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (100,266,833 | ) | (183,338,577 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | 217,638,981 | (1,055,993,275 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,570,066,610 | 2,626,059,885 | ||||||
| ||||||||
End of period | $ | 1,787,705,591 | $ | 1,570,066,610 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco EQV Emerging Markets All Cap Fund |
(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 on securities | 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 net assets | 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 04/30/23 | $27.75 | $ 0.16 | $ 5.95 | $ 6.11 | $(0.36 | ) | $ – | $(0.36 | ) | $33.50 | 22.12 | % | $ 453,227 | 1.33 | %(d) | 1.33 | %(d) | 1.00 | %(d) | 2 | % | |||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 41.94 | 0.36 | (12.84 | ) | (12.48 | ) | (0.21 | ) | (1.50 | ) | (1.71 | ) | 27.75 | (30.89 | ) | 388,330 | 1.39 | 1.39 | 1.06 | 17 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 38.27 | 0.26 | 5.58 | 5.84 | (0.40 | ) | (1.77 | ) | (2.17 | ) | 41.94 | 15.22 | 591,114 | 1.31 | 1.31 | 0.61 | 19 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 36.81 | 0.27 | 1.76 | 2.03 | (0.57 | ) | – | (0.57 | ) | 38.27 | 5.54 | 552,262 | 1.37 | 1.38 | 0.76 | 33 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 30.54 | 0.55 | 6.18 | 6.73 | (0.46 | ) | – | (0.46 | ) | 36.81 | 22.39 | 583,346 | 1.37 | 1.38 | 1.62 | 7 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 27.01 | 0.04 | 5.82 | 5.86 | (0.07 | ) | – | (0.07 | ) | 32.80 | 21.70 | 9,203 | 2.08 | (d) | 2.08 | (d) | 0.25 | (d) | 2 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 40.94 | 0.11 | (12.54 | ) | (12.43 | ) | – | (1.50 | ) | (1.50 | ) | 27.01 | (31.40 | ) | 7,696 | 2.14 | 2.14 | 0.31 | 17 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 37.38 | (0.06 | ) | 5.45 | 5.39 | (0.06 | ) | (1.77 | ) | (1.83 | ) | 40.94 | 14.35 | 15,632 | 2.06 | 2.06 | (0.14 | ) | 19 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 35.83 | 0.00 | 1.71 | 1.71 | (0.16 | ) | – | (0.16 | ) | 37.38 | 4.78 | 16,812 | 2.12 | 2.13 | 0.01 | 33 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 29.64 | 0.28 | 6.05 | 6.33 | (0.14 | ) | – | (0.14 | ) | 35.83 | 21.48 | 22,941 | 2.12 | 2.13 | 0.87 | 7 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 27.78 | 0.20 | 5.96 | 6.16 | (0.45 | ) | – | (0.45 | ) | 33.49 | 22.29 | 688,353 | 1.08 | (d) | 1.08 | (d) | 1.25 | (d) | 2 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 42.00 | 0.44 | (12.84 | ) | (12.40 | ) | (0.32 | ) | (1.50 | ) | (1.82 | ) | 27.78 | (30.71 | ) | 591,206 | 1.14 | 1.14 | 1.31 | 17 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 38.32 | 0.37 | 5.58 | 5.95 | (0.50 | ) | (1.77 | ) | (2.27 | ) | 42.00 | 15.50 | 1,062,846 | 1.06 | 1.06 | 0.86 | 19 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 36.85 | 0.36 | 1.78 | 2.14 | (0.67 | ) | – | (0.67 | ) | 38.32 | 5.82 | 1,015,412 | 1.12 | 1.13 | 1.01 | 33 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 30.60 | 0.63 | 6.18 | 6.81 | (0.56 | ) | – | (0.56 | ) | 36.85 | 22.69 | 968,060 | 1.12 | 1.13 | 1.87 | 7 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 27.70 | 0.21 | 5.95 | 6.16 | (0.48 | ) | – | (0.48 | ) | 33.38 | 22.34 | 150,777 | 1.03 | (d) | 1.03 | (d) | 1.30 | (d) | 2 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 41.88 | 0.46 | (12.80 | ) | (12.34 | ) | (0.34 | ) | (1.50 | ) | (1.84 | ) | 27.70 | (30.68 | ) | 135,693 | 1.07 | 1.07 | 1.38 | 17 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 38.22 | 0.39 | 5.57 | 5.96 | (0.53 | ) | (1.77 | ) | (2.30 | ) | 41.88 | 15.56 | 215,122 | 1.02 | 1.02 | 0.90 | 19 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 36.76 | 0.39 | 1.77 | 2.16 | (0.70 | ) | – | (0.70 | ) | 38.22 | 5.90 | 182,631 | 1.05 | 1.06 | 1.08 | 33 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 30.55 | 0.66 | 6.16 | 6.82 | (0.61 | ) | – | (0.61 | ) | 36.76 | 22.79 | 250,287 | 1.03 | 1.04 | 1.96 | 7 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 27.70 | 0.22 | 5.93 | 6.15 | (0.50 | ) | – | (0.50 | ) | 33.35 | 22.33 | 486,146 | 0.96 | (d) | 0.96 | (d) | 1.37 | (d) | 2 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 41.89 | 0.48 | (12.79 | ) | (12.31 | ) | (0.38 | ) | (1.50 | ) | (1.88 | ) | 27.70 | (30.60 | ) | 447,141 | 1.00 | 1.00 | 1.45 | 17 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 38.22 | 0.42 | 5.58 | 6.00 | (0.56 | ) | (1.77 | ) | (2.33 | ) | 41.89 | 15.67 | 741,346 | 0.93 | 0.93 | 0.99 | 19 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 36.76 | 0.42 | 1.76 | 2.18 | (0.72 | ) | – | (0.72 | ) | 38.22 | 5.96 | 497,383 | 0.96 | 0.97 | 1.17 | 33 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 30.55 | 0.68 | 6.16 | 6.84 | (0.63 | ) | – | (0.63 | ) | 36.76 | 22.88 | 383,400 | 0.97 | 0.98 | 2.02 | 7 | ||||||||||||||||||||||||||||||||||||||||
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 |
(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) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco EQV Emerging Markets All Cap Fund |
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco EQV Emerging Markets All Cap Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is long-term growth of capital.
The Fund currently consists of five different classes of shares: Class A, Class C, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.
12 | Invesco EQV Emerging Markets All Cap Fund |
Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.
13 | Invesco EQV Emerging Markets All Cap Fund |
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 exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $250 million | 0.935% | |||
| ||||
Next $250 million | 0.910% | |||
| ||||
Next $500 million | 0.885% | |||
| ||||
Next $1.5 billion | 0.860% | |||
| ||||
Next $2.5 billion | 0.835% | |||
| ||||
Next $2.5 billion | 0.810% | |||
| ||||
Next $2.5 billion | 0.785% | |||
| ||||
Over $10 billion | 0.760% | |||
|
For the six months ended April 30, 2023, the effective advisory fee rate 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, 2023, to waive advisory fees and/or reimburse expenses of all shares 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $34,623.
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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
14 | Invesco EQV Emerging Markets All Cap 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 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $14,059 in front-end sales commissions from the sale of Class A shares and $527 and $555 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | - | Prices are determined using quoted prices in an active market for identical assets. | ||
Level 2 | - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | ||
Level 3 | - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Brazil | $213,880,693 | $ – | $ – | $213,880,693 | ||||||||||||
| ||||||||||||||||
China | 145,854,501 | 341,142,661 | – | 486,997,162 | ||||||||||||
| ||||||||||||||||
Egypt | 18,159,992 | 8,024,426 | – | 26,184,418 | ||||||||||||
| ||||||||||||||||
France | – | 45,928,053 | – | 45,928,053 | ||||||||||||
| ||||||||||||||||
Hungary | – | 67,337,703 | – | 67,337,703 | ||||||||||||
| ||||||||||||||||
India | 71,003,701 | 15,391,358 | – | 86,395,059 | ||||||||||||
| ||||||||||||||||
Indonesia | – | 108,901,025 | – | 108,901,025 | ||||||||||||
| ||||||||||||||||
Macau | – | 12,270,581 | – | 12,270,581 | ||||||||||||
| ||||||||||||||||
Mexico | 212,323,648 | – | – | 212,323,648 | ||||||||||||
| ||||||||||||||||
Nigeria | – | 22,111,457 | – | 22,111,457 | ||||||||||||
| ||||||||||||||||
Philippines | – | 110,876,250 | – | 110,876,250 | ||||||||||||
| ||||||||||||||||
Russia | – | – | 46 | 46 | ||||||||||||
| ||||||||||||||||
South Africa | – | 17,662,972 | – | 17,662,972 | ||||||||||||
| ||||||||||||||||
South Korea | – | 77,918,336 | – | 77,918,336 | ||||||||||||
| ||||||||||||||||
Taiwan | – | 129,561,609 | – | 129,561,609 | ||||||||||||
| ||||||||||||||||
Turkey | – | 19,342,793 | – | 19,342,793 | ||||||||||||
| ||||||||||||||||
United Arab Emirates | – | 26,955,607 | – | 26,955,607 | ||||||||||||
| ||||||||||||||||
Vietnam | – | 8,138,948 | – | 8,138,948 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 105,669,229 | 31,776,304 | – | 137,445,533 | ||||||||||||
| ||||||||||||||||
Total Investments | $766,891,764 | $1,043,340,083 | $46 | $1,810,231,893 | ||||||||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $8,451.
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
15 | Invesco EQV Emerging Markets All Cap Fund |
such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||
| ||||||
Expiration | Short-Term | Long-Term | Total | |||
| ||||||
Not subject to expiration | $19,535,489 | $– | $19,535,489 | |||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $30,185,627 and $185,874,992, 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 | $ | 461,001,533 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (171,031,402 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 289,970,131 | ||
|
Cost of investments for tax purposes is $1,520,261,762.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 600,142 | $ | 19,479,867 | 1,785,231 | $ | 59,015,273 | ||||||||||
| ||||||||||||||||
Class C | 49,495 | 1,592,446 | 47,250 | 1,591,114 | ||||||||||||
| ||||||||||||||||
Class Y | 2,307,158 | 74,813,643 | 6,322,632 | 211,228,639 | ||||||||||||
| ||||||||||||||||
Class R5 | 334,116 | 10,882,657 | 973,625 | 32,575,583 | ||||||||||||
| ||||||||||||||||
Class R6 | 1,264,033 | 40,919,056 | 4,346,031 | 145,692,469 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 136,327 | 4,286,124 | 549,442 | 20,944,720 | ||||||||||||
| ||||||||||||||||
Class C | 523 | 16,140 | 13,287 | 496,154 | ||||||||||||
| ||||||||||||||||
Class Y | 128,048 | 4,020,698 | 709,975 | 27,028,746 | ||||||||||||
| ||||||||||||||||
Class R5 | 72,195 | 2,258,275 | 238,575 | 9,051,542 | ||||||||||||
| ||||||||||||||||
Class R6 | 240,455 | 7,514,208 | 811,404 | 30,760,326 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 19,867 | 644,489 | 47,349 | 1,514,612 | ||||||||||||
| ||||||||||||||||
Class C | (20,299 | ) | (644,489 | ) | (48,496 | ) | (1,514,612 | ) | ||||||||
|
16 | Invesco EQV Emerging Markets All Cap Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (1,220,833 | ) | $ | (39,303,100 | ) | (2,483,704 | ) | $ | (82,411,078 | ) | ||||||
| ||||||||||||||||
Class C | (33,979 | ) | (1,059,484 | ) | (108,967 | ) | (3,600,918 | ) | ||||||||
| ||||||||||||||||
Class Y | (3,160,541 | ) | (101,173,569 | ) | (11,058,099 | ) | (371,061,537 | ) | ||||||||
| ||||||||||||||||
Class R5 | (786,512 | ) | (24,948,589 | ) | (1,450,932 | ) | (47,823,551 | ) | ||||||||
| ||||||||||||||||
Class R6 | (3,071,325 | ) | (99,565,205 | ) | (6,711,309 | ) | (216,826,059 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (3,141,130 | ) | $ | (100,266,833 | ) | (6,016,706 | ) | $ | (183,338,577 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 49% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
In addition, 3% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
17 | Invesco EQV Emerging Markets All Cap 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, 2022 through April 30, 2023.
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 | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Ratio | |||||||||
Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,221.20 | $7.32 | $1,018.20 | $6.66 | 1.33% | ||||||
Class C | 1,000.00 | 1,216.70 | 11.43 | 1,014.48 | 10.39 | 2.08 | ||||||
Class Y | 1,000.00 | 1,222.90 | 5.95 | 1,019.44 | 5.41 | 1.08 | ||||||
Class R5 | 1,000.00 | 1,223.00 | 5.68 | 1,019.69 | 5.16 | 1.03 | ||||||
Class R6 | 1,000.00 | 1,223.30 | 5.29 | 1,020.03 | 4.81 | 0.96 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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 EQV Emerging Markets All Cap 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | DVM-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Emerging Markets Innovators Fund
Nasdaq:
A: EMIAX ∎ C: EMVCX ∎ R: EMIRX ∎ Y: EMIYX ∎ R5: EMIMX ∎ R6: EMVIX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
7 | Financial Statements | |
10 | Financial Highlights | |
11 | Notes to Financial Statements | |
17 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary | ||||
Fund vs. Indexes | ||||
Cumulative total returns, 10/31/22 to 4/30/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 19.00 | % | ||
Class C Shares | 18.61 | |||
Class R Shares | 18.98 | |||
Class Y Shares | 19.20 | |||
Class R5 Shares | 19.22 | |||
Class R6 Shares | 19.27 | |||
MSCI Emerging Markets Index▼ | 16.36 | |||
Source(s): ▼RIMES Technologies Corp. |
| |||
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. |
| |||
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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Emerging Markets Innovators Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (6/30/14) | -1.52 | % | ||
5 Years | -5.92 | |||
1 Year | -1.25 | |||
Class C Shares | ||||
Inception (6/30/14) | -1.57 | % | ||
5 Years | -5.56 | |||
1 Year | 2.82 | |||
Class R Shares | ||||
Inception (6/30/14) | -1.14 | % | ||
5 Years | -5.08 | |||
1 Year | 4.33 | |||
Class Y Shares | ||||
Inception (6/30/14) | -0.64 | % | ||
5 Years | -4.61 | |||
1 Year | 4.94 | |||
Class R5 Shares | ||||
Inception | -0.75 | % | ||
5 Years | -4.60 | |||
1 Year | 4.85 | |||
Class R6 Shares | ||||
Inception (6/30/14) | -0.50 | % | ||
5 Years | -4.52 | |||
1 Year | 4.74 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Emerging Markets Innovators Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y, and Class R6 shares, respectively, of the Invesco Oppenheimer Emerging Markets Innovators Fund. The Fund was subsequently renamed the Invesco Emerging Markets Innovators Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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 Emerging Markets Innovators Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Emerging Markets Innovators Fund |
April 30, 2023
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–97.03% |
| |||||||
Australia–0.90% | ||||||||
Glencore PLC | 162,372 | $ | 958,090 | |||||
| ||||||||
Brazil–5.43% |
| |||||||
Arezzo Industria e Comercio S.A. | 231,400 | 3,079,581 | ||||||
| ||||||||
Lojas Renner S.A. | 254,610 | 808,577 | ||||||
| ||||||||
NU Holdings Ltd., Class A(a) | 143,329 | 739,578 | ||||||
| ||||||||
WEG S.A. | 136,600 | 1,126,146 | ||||||
| ||||||||
5,753,882 | ||||||||
| ||||||||
Chile–1.78% | ||||||||
Banco Santander Chile | 39,369,392 | 1,882,513 | ||||||
| ||||||||
China–26.31% | ||||||||
BeiGene Ltd.(a) | 58,600 | 1,141,404 | ||||||
| ||||||||
BeiGene Ltd., ADR(a) | 4,859 | 1,238,851 | ||||||
| ||||||||
H World Group Ltd., ADR | 101,356 | 4,753,596 | ||||||
| ||||||||
New Horizon Health Ltd.(a)(b) | 343,500 | 1,233,875 | ||||||
| ||||||||
Silergy Corp. | 188,000 | 2,993,932 | ||||||
| ||||||||
SITC International Holdings Co. Ltd. | 536,000 | 990,626 | ||||||
| ||||||||
Sunny Optical Technology Group Co. Ltd. | 87,300 | 924,419 | ||||||
| ||||||||
Wuxi Biologics Cayman, Inc.(a)(b) | 240,000 | 1,435,647 | ||||||
| ||||||||
Yum China Holdings, Inc. | 109,363 | 6,690,828 | ||||||
| ||||||||
Zai Lab Ltd., ADR(a) | 29,844 | 1,043,943 | ||||||
| ||||||||
Zhongsheng Group Holdings Ltd. | 171,289 | 731,531 | ||||||
| ||||||||
ZTO Express (Cayman), Inc., ADR | 169,515 | 4,692,175 | ||||||
| ||||||||
27,870,827 | ||||||||
| ||||||||
Hong Kong–1.97% | ||||||||
Hongkong Land Holdings Ltd. | 470,700 | 2,090,587 | ||||||
| ||||||||
India–20.89% | ||||||||
Asian Paints Ltd. | 3,080 | 109,513 | ||||||
| ||||||||
Cholamandalam Investment and Finance Co. Ltd. | 30,998 | 330,459 | ||||||
| ||||||||
Havells India Ltd. | 162,103 | 2,441,190 | ||||||
| ||||||||
Housing Development Finance Corp. Ltd. | 136,632 | 4,648,548 | ||||||
| ||||||||
Kotak Mahindra Bank Ltd. | 137,575 | 3,273,745 | ||||||
| ||||||||
Le Travenues Technology Ltd.(c) | 7,200,800 | 7,263,542 | ||||||
| ||||||||
Marico Ltd. | 60,221 | 365,893 | ||||||
| ||||||||
Oberoi Realty Ltd. | 233,287 | 2,615,397 | ||||||
| ||||||||
Voltas Ltd. | 110,397 | 1,082,214 | ||||||
| ||||||||
22,130,501 | ||||||||
| ||||||||
Indonesia–2.59% | ||||||||
PT Ace Hardware Indonesia Tbk | 34,003,700 | 1,047,203 | ||||||
| ||||||||
PT Bank Rakyat Indonesia (Persero) Tbk | 1,224,829 | 426,525 | ||||||
|
Investment Abbreviations:
ADR – American Depositary Receipt
CPO – Certificates of Ordinary Participation
Shares | Value | |||||||
| ||||||||
Indonesia–(continued) | ||||||||
PT Unilever Indonesia Tbk | 4,217,200 | $ | 1,265,887 | |||||
| ||||||||
2,739,615 | ||||||||
| ||||||||
Mexico–11.59% | ||||||||
Coca-Cola FEMSA S.A.B. de C.V., ADR | 20,592 | 1,738,377 | ||||||
| ||||||||
Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 253,800 | 2,469,184 | ||||||
| ||||||||
Grupo Aeroportuario del Sureste S.A.B. de C.V., Class B | 46,790 | 1,342,973 | ||||||
| ||||||||
Grupo Mexico S.A.B. de C.V., Class B | 809,500 | 3,980,528 | ||||||
| ||||||||
Wal-Mart de Mexico S.A.B. de C.V., Series V | 680,500 | 2,743,649 | ||||||
| ||||||||
12,274,711 | ||||||||
| ||||||||
Peru–2.20% | ||||||||
Credicorp Ltd. | 8,801 | 1,192,359 | ||||||
| ||||||||
InRetail Peru Corp.(b) | 34,947 | 1,137,525 | ||||||
| ||||||||
2,329,884 | ||||||||
| ||||||||
Philippines–1.14% | ||||||||
San Miguel Food and Beverage, Inc. | 2,700 | 2,300 | ||||||
| ||||||||
SM Prime Holdings, Inc. | 1,966,700 | 1,206,282 | ||||||
| ||||||||
1,208,582 | ||||||||
| ||||||||
Poland–1.20% | ||||||||
Allegro.eu S.A.(a)(b) | 160,586 | 1,269,910 | ||||||
| ||||||||
South Korea–10.43% | ||||||||
LG Chem Ltd. | 8,613 | 4,803,040 | ||||||
| ||||||||
LG H&H Co. Ltd. | 3,041 | 1,416,663 | ||||||
| ||||||||
Samsung Biologics Co. Ltd.(a)(b) | 8,239 | 4,822,557 | ||||||
| ||||||||
11,042,260 | ||||||||
| ||||||||
Taiwan–8.66% | ||||||||
MediaTek, Inc. | 78,000 | 1,695,132 | ||||||
| ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 215,000 | 3,525,892 | ||||||
| ||||||||
Voltronic Power Technology Corp. | 68,919 | 3,952,602 | ||||||
| ||||||||
9,173,626 | ||||||||
| ||||||||
Turkey–1.25% | ||||||||
BIM Birlesik Magazalar A.S. | 164,650 | 1,321,171 | ||||||
| ||||||||
United States–0.69% | ||||||||
Globant S.A.(a) | 4,676 | 733,524 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–97.03% |
| 102,779,683 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–2.97% |
| 3,144,529 | ||||||
| ||||||||
NET ASSETS–100.00% |
| $ | 105,924,212 | |||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Emerging Markets Innovators Fund |
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2023 was $9,899,514, which represented 9.35% of the Fund’s Net Assets. |
(c) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ 540,907 | $ | 10,842,697 | $ | (11,383,604 | ) | $ - | $ | - | $- | $12,825 | |||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 386,410 | 7,744,783 | (8,131,088 | ) | (38) | (67) | - | 8,420 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 618,180 | 12,391,654 | (13,009,834 | ) | - | - | - | 12,995 | ||||||||||||||||||||
Total | $1,545,497 | $ | 30,979,134 | $ | (32,524,526 | ) | $(38) | $ | (67) | $- | $34,240 |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2023
Consumer Discretionary | 24.21 | % | ||
Industrials | 14.75 | |||
Financials | 11.80 | |||
Consumer Staples | 11.76 | |||
Health Care | 10.31 | |||
Information Technology | 9.32 | |||
Materials | 9.30 | |||
Real Estate | 5.58 | |||
Money Market Funds Plus Other Assets Less Liabilities | 2.97 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Emerging Markets Innovators Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $82,857,275) | $ | 102,779,683 | ||
| ||||
Cash | 277,439 | |||
| ||||
Foreign currencies, at value (Cost $3,191,500) | 2,848,949 | |||
| ||||
Receivable for: | ||||
Fund shares sold | 91,552 | |||
| ||||
Dividends | 253,267 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 24,553 | |||
| ||||
Other assets | 35,340 | |||
| ||||
Total assets | 106,310,783 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Fund shares reacquired | 73,838 | |||
| ||||
Accrued foreign taxes | 177,539 | |||
| ||||
Accrued fees to affiliates | 72,703 | |||
| ||||
Accrued other operating expenses | 37,938 | |||
| ||||
Trustee deferred compensation and retirement plans | 24,553 | |||
| ||||
Total liabilities | 386,571 | |||
| ||||
Net assets applicable to shares outstanding | $ | 105,924,212 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 134,364,597 | ||
| ||||
Distributable earnings (loss) | (28,440,385 | ) | ||
| ||||
$ | 105,924,212 | |||
|
Net Assets: | ||||
Class A | $ | 42,542,043 | ||
| ||||
Class C | $ | 9,680,716 | ||
| ||||
Class R | $ | 6,171,573 | ||
| ||||
Class Y | $ | 37,705,138 | ||
| ||||
Class R5 | $ | 8,397 | ||
| ||||
Class R6 | $ | 9,816,345 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 5,390,343 | |||
| ||||
Class C | 1,320,034 | |||
| ||||
Class R | 800,768 | |||
| ||||
Class Y | 4,673,191 | |||
| ||||
Class R5 | 1,049 | |||
| ||||
Class R6 | 1,201,027 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 7.89 | ||
| ||||
Maximum offering price per share | $ | 8.35 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 7.33 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 7.71 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 8.07 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 8.00 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 8.17 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Emerging Markets Innovators Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $87,729) | $ | 824,154 | ||
| ||||
Dividends from affiliated money market funds | 34,240 | |||
| ||||
Total investment income | 858,394 | |||
| ||||
Expenses: | ||||
Advisory fees | 701,128 | |||
| ||||
Administrative services fees | 8,900 | |||
| ||||
Distribution fees: | ||||
Class A | 50,870 | |||
| ||||
Class C | 50,166 | |||
| ||||
Class R | 14,859 | |||
| ||||
Transfer agent fees – A, C, R and Y | 119,254 | |||
| ||||
Transfer agent fees – R5 | 1 | |||
| ||||
Transfer agent fees – R6 | 3,329 | |||
| ||||
Trustees’ and officers’ fees and benefits | 6,695 | |||
| ||||
Registration and filing fees | 41,788 | |||
| ||||
Reports to shareholders | 14,419 | |||
| ||||
Professional services fees | 26,825 | |||
| ||||
Other | (39,661 | ) | ||
| ||||
Total expenses | 998,573 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (109,584 | ) | ||
| ||||
Net expenses | 888,989 | |||
| ||||
Net investment income (loss) | (30,595 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities (net of foreign taxes of $39,360) | (6,863,395 | ) | ||
| ||||
Affiliated investment securities | (67 | ) | ||
| ||||
Foreign currencies | (53,911 | ) | ||
| ||||
Forward foreign currency contracts | 278 | |||
| ||||
(6,917,095 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities (net of foreign taxes of $162,080) | 30,253,939 | |||
| ||||
Affiliated investment securities | (38 | ) | ||
| ||||
Foreign currencies | (122,015 | ) | ||
| ||||
30,131,886 | ||||
| ||||
Net realized and unrealized gain | 23,214,791 | |||
| ||||
Net increase in net assets resulting from operations | $ | 23,184,196 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Emerging Markets Innovators Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, 2023 | October 31, 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (30,595 | ) | $ | 274,917 | |||
| ||||||||
Net realized gain (loss) | (6,917,095 | ) | (40,463,239 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 30,131,886 | (96,313,754 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 23,184,196 | (136,502,076 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | – | (9,157,227 | ) | |||||
| ||||||||
Class C | – | (2,188,956 | ) | |||||
| ||||||||
Class R | – | (881,257 | ) | |||||
| ||||||||
Class Y | – | (19,805,340 | ) | |||||
| ||||||||
Class R5 | – | (1,397 | ) | |||||
| ||||||||
Class R6 | – | (9,542,026 | ) | |||||
| ||||||||
Total distributions from distributable earnings | – | (41,576,203 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (1,994,878 | ) | (56,547,378 | ) | ||||
| ||||||||
Class C | (1,060,139 | ) | (1,366,014 | ) | ||||
| ||||||||
Class R | (34,976 | ) | 1,301,649 | |||||
| ||||||||
Class Y | (20,060,685 | ) | (60,903,339 | ) | ||||
| ||||||||
Class R6 | (22,013,651 | ) | (26,675,537 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (45,164,329 | ) | (144,190,619 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (21,980,133 | ) | (322,268,898 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 127,904,345 | 450,173,243 | ||||||
| ||||||||
End of period | $ | 105,924,212 | $ | 127,904,345 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Emerging Markets Innovators Fund |
(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 on securities | 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 net assets | Ratio of net investment income (loss) to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $6.63 | $(0.00 | ) | $ 1.26 | $ 1.26 | $ – | $ – | $ – | $ 7.89 | 19.00 | %(e) | $ 42,542 | 1.50 | %(e)(f) | 1.71 | %(e)(f) | (0.11 | )%(e)(f) | 18 | % | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.47 | (0.00 | ) | (4.51 | ) | (4.51 | )�� | – | (1.33 | ) | (1.33 | ) | 6.63 | (39.85 | )(e) | 37,386 | 1.48 | (e) | 1.69 | (e) | 0.01 | (e) | 17 | |||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 11.17 | (0.08 | ) | 1.78 | 1.70 | – | (0.40 | ) | (0.40 | ) | 12.47 | 15.15 | (e) | 136,638 | 1.58 | (e) | 1.64 | (e) | (0.65 | )(e) | 50 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.41 | (0.06 | ) | 0.82 | 0.76 | – | – | – | 11.17 | 7.30 | (e) | 70,918 | 1.68 | (e) | 1.68 | (e) | (0.62 | )(e) | 67 | |||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 9.85 | (0.01 | ) | 0.57 | 0.56 | – | – | – | 10.41 | 5.69 | 83,842 | 1.68 | (f) | 1.68 | (f) | (0.63 | )(f) | 20 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.38 | (0.02 | ) | (0.51 | ) | (0.53 | ) | – | – | – | 9.85 | (5.11 | ) | 80,454 | 1.71 | 1.71 | (0.25 | ) | 36 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.67 | (0.02 | ) | (0.25 | ) | (0.27 | ) | (0.02 | ) | – | (0.02 | ) | 10.38 | (2.52 | ) | 97,641 | 1.70 | 1.70 | (0.18 | ) | 24 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 6.18 | (0.03 | ) | 1.18 | 1.15 | – | – | – | 7.33 | 18.61 | 9,681 | 2.25 | (f) | 2.47 | (f) | (0.86 | )(f) | 18 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 11.81 | (0.06 | ) | (4.24 | ) | (4.30 | ) | – | (1.33 | ) | (1.33 | ) | 6.18 | (40.35 | ) | 9,062 | 2.24 | 2.45 | (0.75 | ) | 17 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.67 | (0.18 | ) | 1.72 | 1.54 | – | (0.40 | ) | (0.40 | ) | 11.81 | 14.34 | 19,858 | 2.35 | 2.40 | (1.42 | ) | 50 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.02 | (0.14 | ) | 0.79 | 0.65 | – | – | – | 10.67 | 6.49 | 20,337 | 2.44 | 2.44 | (1.38 | ) | 67 | ||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 9.49 | (0.02 | ) | 0.55 | 0.53 | – | – | – | 10.02 | 5.58 | 26,427 | 2.44 | (f) | 2.44 | (f) | (1.40 | )(f) | 20 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.09 | (0.09 | ) | (0.51 | ) | (0.60 | ) | – | – | – | 9.49 | (5.95 | ) | 26,661 | 2.45 | 2.45 | (1.01 | ) | 36 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.42 | (0.10 | ) | (0.23 | ) | (0.33 | ) | – | – | – | 10.09 | (3.17 | ) | 38,156 | 2.46 | 2.46 | (0.94 | ) | 24 | |||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 6.48 | (0.01 | ) | 1.24 | 1.23 | – | – | – | 7.71 | 18.98 | 6,172 | 1.75 | (f) | 1.97 | (f) | (0.36 | )(f) | 18 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.25 | (0.02 | ) | (4.42 | ) | (4.44 | ) | – | (1.33 | ) | (1.33 | ) | 6.48 | (40.01 | ) | 5,211 | 1.74 | 1.95 | (0.25 | ) | 17 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 11.01 | (0.12 | ) | 1.76 | 1.64 | – | (0.40 | ) | (0.40 | ) | 12.25 | 14.82 | 8,126 | 1.85 | 1.90 | (0.92 | ) | 50 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.28 | (0.09 | ) | 0.82 | 0.73 | – | – | – | 11.01 | 7.10 | 7,741 | 1.94 | 1.94 | (0.88 | ) | 67 | ||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 9.73 | (0.01 | ) | 0.56 | 0.55 | – | – | – | 10.28 | 5.65 | 8,012 | 1.94 | (f) | 1.94 | (f) | (0.90 | )(f) | 20 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.29 | (0.05 | ) | (0.51 | ) | (0.56 | ) | – | – | – | 9.73 | (5.44 | ) | 7,516 | 1.95 | 1.95 | (0.51 | ) | 36 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.59 | (0.05 | ) | (0.24 | ) | (0.29 | ) | (0.01 | ) | – | (0.01 | ) | 10.29 | (2.77 | ) | 6,884 | 1.97 | 1.97 | (0.45 | ) | 24 | |||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 6.77 | 0.01 | 1.29 | 1.30 | – | – | – | 8.07 | 19.20 | 37,705 | 1.25 | (f) | 1.47 | (f) | 0.14 | (f) | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.67 | 0.02 | (4.59 | ) | (4.57 | ) | – | (1.33 | ) | (1.33 | ) | 6.77 | (39.68 | ) | 49,074 | 1.24 | 1.45 | 0.25 | 17 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 11.32 | (0.06 | ) | 1.81 | 1.75 | – | (0.40 | ) | (0.40 | ) | 12.67 | 15.40 | 193,558 | 1.35 | 1.40 | (0.42 | ) | 50 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.52 | (0.04 | ) | 0.84 | 0.80 | – | – | – | 11.32 | 7.60 | 183,438 | 1.44 | 1.44 | (0.38 | ) | 67 | ||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 9.95 | (0.01 | ) | 0.58 | 0.57 | – | – | – | 10.52 | 5.73 | 216,384 | 1.44 | (f) | 1.44 | (f) | (0.40 | )(f) | 20 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.47 | (0.00 | ) | (0.52 | ) | (0.52 | ) | – | – | – | 9.95 | (4.97 | ) | 212,530 | 1.46 | 1.46 | (0.00 | ) | 36 | |||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.75 | 0.01 | (0.25 | ) | (0.24 | ) | (0.04 | ) | – | (0.04 | ) | 10.47 | (2.23 | ) | 281,465 | 1.46 | 1.46 | 0.06 | 24 | |||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 6.71 | 0.01 | 1.28 | 1.29 | – | – | – | 8.00 | 19.22 | 8 | 1.25 | (f) | 1.26 | (f) | 0.14 | (f) | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.58 | 0.02 | (4.56 | ) | (4.54 | ) | – | (1.33 | ) | (1.33 | ) | 6.71 | (39.73 | ) | 7 | 1.24 | 1.34 | 0.25 | 17 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 11.23 | (0.04 | ) | 1.79 | 1.75 | – | (0.40 | ) | (0.40 | ) | 12.58 | 15.52 | 13 | 1.26 | 1.26 | (0.33 | ) | 50 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.42 | (0.02 | ) | 0.83 | 0.81 | – | – | – | 11.23 | 7.77 | 12 | 1.27 | 1.27 | (0.21 | ) | 67 | ||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 9.86 | (0.00 | ) | 0.56 | 0.56 | – | – | – | 10.42 | 5.68 | 11 | 1.31 | (f) | 1.31 | (f) | (0.26 | )(f) | 20 | ||||||||||||||||||||||||||||||||||||||
Period ended 08/31/19(g) | 9.53 | 0.00 | 0.33 | 0.33 | – | – | – | 9.86 | 3.46 | 10 | 1.28 | (f) | 1.28 | (f) | 0.15 | (f) | 36 | |||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 6.85 | 0.01 | 1.31 | 1.32 | – | – | – | 8.17 | 19.27 | 9,816 | 1.25 | (f) | 1.26 | (f) | 0.14 | (f) | 18 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.82 | 0.02 | (4.66 | ) | (4.64 | ) | – | (1.33 | ) | (1.33 | ) | 6.85 | (39.77 | ) | 27,166 | 1.25 | 1.34 | 0.24 | 17 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 11.44 | (0.04 | ) | 1.82 | 1.78 | – | (0.40 | ) | (0.40 | ) | 12.82 | 15.50 | 91,980 | 1.25 | 1.26 | (0.32 | ) | 50 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.61 | (0.02 | ) | 0.85 | 0.83 | – | – | – | 11.44 | 7.82 | 134,269 | 1.25 | 1.26 | (0.19 | ) | 67 | ||||||||||||||||||||||||||||||||||||||||
Two months ended 10/31/19 | 10.04 | (0.00 | ) | 0.57 | 0.57 | – | – | – | 10.61 | 5.68 | 292,944 | 1.27 | (f) | 1.27 | (f) | (0.22 | )(f) | 20 | ||||||||||||||||||||||||||||||||||||||
Year ended 08/31/19 | 10.54 | 0.02 | (0.52 | ) | (0.50 | ) | – | – | – | 10.04 | (4.74 | ) | 278,033 | 1.27 | 1.27 | 0.18 | 36 | |||||||||||||||||||||||||||||||||||||||
Year ended 08/31/18 | 10.82 | 0.03 | (0.25 | ) | (0.22 | ) | (0.06 | ) | – | (0.06 | ) | 10.54 | (2.06 | ) | 105,736 | 1.29 | 1.29 | 0.26 | 24 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include indirect expenses from affiliated fund fees and expenses of 0.01% for the two months ended October 31, 2019 and the years ended August 31, 2019 and 2018, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the six months ended April 30, 2023 and for the years ended October 31, 2022, 2021 and 2020. |
(f) | Annualized. |
(g) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Emerging Markets Innovators Fund |
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Emerging Markets Innovators Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.
11 | Invesco Emerging Markets Innovators Fund |
Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | 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 exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or
12 | Invesco Emerging Markets Innovators Fund |
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 the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $500 million | 1.150% | |||
| ||||
Next $500 million | 1.100% | |||
| ||||
Next $4 billion | 1.050% | |||
| ||||
Over $5 billion | 1.000% | |||
|
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 1.14%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least February 29, 2024, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.50%, 2.25%, 1.75%, 1.25%, 1.25%, and 1.25%, respectively, of the Fund’s average daily net assets (the “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, 2024. 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 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, 2025, 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, 2023, the Adviser waived advisory fees of $837 and reimbursed class level expenses of $41,490, $10,311, $6,109, $44,674, $0 and $1,215 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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $8,314 in front-end sales commissions from the sale of Class A shares and $0 and $112 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended April 30, 2023, the Fund incurred $1,562 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | - | Prices are determined using quoted prices in an active market for identical assets. |
13 | Invesco Emerging Markets Innovators Fund |
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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | – | $ | 958,090 | $ | – | $ | 958,090 | ||||||||
| ||||||||||||||||
Brazil | 5,753,882 | – | – | 5,753,882 | ||||||||||||
| ||||||||||||||||
Chile | 1,882,513 | – | – | 1,882,513 | ||||||||||||
| ||||||||||||||||
China | 18,419,393 | 9,451,434 | – | 27,870,827 | ||||||||||||
| ||||||||||||||||
Hong Kong | – | 2,090,587 | – | 2,090,587 | ||||||||||||
| ||||||||||||||||
India | – | 14,866,959 | 7,263,542 | 22,130,501 | ||||||||||||
| ||||||||||||||||
Indonesia | – | 2,739,615 | – | 2,739,615 | ||||||||||||
| ||||||||||||||||
Mexico | 12,274,711 | – | – | 12,274,711 | ||||||||||||
| ||||||||||||||||
Peru | 2,329,884 | – | – | 2,329,884 | ||||||||||||
| ||||||||||||||||
Philippines | – | 1,208,582 | – | 1,208,582 | ||||||||||||
| ||||||||||||||||
Poland | – | 1,269,910 | – | 1,269,910 | ||||||||||||
| ||||||||||||||||
South Korea | – | 11,042,260 | – | 11,042,260 | ||||||||||||
| ||||||||||||||||
Taiwan | – | 9,173,626 | – | 9,173,626 | ||||||||||||
| ||||||||||||||||
Turkey | – | 1,321,171 | – | 1,321,171 | ||||||||||||
| ||||||||||||||||
United States | 733,524 | – | – | 733,524 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 41,393,907 | $ | 54,122,234 | $ | 7,263,542 | $ | 102,779,683 | ||||||||
|
A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the reporting period in relation to net assets.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the six months ended April 30, 2023:
Value 10/31/22 | Purchases at Cost | Proceeds from Sales | Accrued Discounts/ Premiums | Realized Gain (Loss) | Change in Unrealized Appreciation | Transfers into Level 3* | Transfers out of Level 3* | Value 04/30/23 | ||||||||||
| ||||||||||||||||||
Common Stocks & Other Equity Interests | $8,303,809 | $788,679 | $(4,918,271) | $– | $(11,393,995) | $14,483,320 | $– | $– | $7,263,542 | |||||||||
|
The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as level 3 at period end:
Fair Value at 04/30/23 | Valuation Technique | Unobservable Inputs | Range of Unobservable Inputs | Unobservable Input Used | ||||||||||||||
| ||||||||||||||||||
Le Travenues Technology Ltd. | $ | 7,263,542 | Initial Public Offering value adjusted by the exchange rate | Initial Public Offering value | N/A | $ | 0.99675157 | (a) | ||||||||||
|
(a) | The Fund fair values certain private placement securities at the current Initial Public Offering value. The Adviser periodically reviews the financial statements and monitors such investments for additional market information or the occurrence of a significant event, such as a corporate action event, which would warrant a re-evaluation of the security’s fair valuation. |
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, 2023
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain on Statement of Operations | ||||
Currency | ||||
Risk | ||||
| ||||
Realized Gain: | ||||
Forward foreign currency contracts | $278 | |||
|
14 | Invesco Emerging Markets Innovators Fund |
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | ||
| ||
Average notional value | $78,392 | |
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $4,948.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward 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, 2022.
Capital Loss Carryforward* | ||||||||||||||
| ||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||
| ||||||||||||||
Not subject to expiration | $ | 28,798,165 | $ | 6,681,039 | $ | 35,479,204 | ||||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $21,241,842 and $65,760,240, 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 | $ | 22,518,622 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (7,570,723 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 14,947,899 | ||
|
Cost of investments for tax purposes is $87,831,785.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 598,613 | $ | 4,596,026 | 1,042,462 | $ | 8,912,777 | ||||||||||
| ||||||||||||||||
Class C | 150,426 | 1,067,724 | 174,172 | 1,434,037 | ||||||||||||
| ||||||||||||||||
Class R | 89,935 | 679,408 | 213,127 | 1,750,743 | ||||||||||||
| ||||||||||||||||
Class Y | 358,595 | 2,794,844 | 4,199,740 | 35,825,100 | ||||||||||||
| ||||||||||||||||
Class R6 | 50,417 | 404,649 | 3,012,596 | 26,026,269 | ||||||||||||
|
15 | Invesco Emerging Markets Innovators Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | - | $ | - | 859,837 | $ | 8,710,145 | ||||||||||
| ||||||||||||||||
Class C | - | - | 218,352 | 2,076,530 | ||||||||||||
| ||||||||||||||||
Class R | - | - | 88,466 | 878,468 | ||||||||||||
| ||||||||||||||||
Class Y | - | - | 1,416,769 | 14,635,222 | ||||||||||||
| ||||||||||||||||
Class R6 | - | - | 296,991 | 3,106,522 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: |
| |||||||||||||||
Class A | 61,304 | 472,416 | 72,182 | 589,410 | ||||||||||||
| ||||||||||||||||
Class C | (65,884 | ) | (472,416 | ) | (77,112 | ) | (589,410 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (912,005 | ) | (7,063,320 | ) | (7,291,835 | ) | (74,759,710 | ) | ||||||||
| ||||||||||||||||
Class C | (230,811 | ) | (1,655,447 | ) | (531,237 | ) | (4,287,171 | ) | ||||||||
| ||||||||||||||||
Class R | (93,441 | ) | (714,384 | ) | (160,666 | ) | (1,327,562 | ) | ||||||||
| ||||||||||||||||
Class Y | (2,938,860 | ) | (22,855,529 | ) | (13,636,919 | ) | (111,363,661 | ) | ||||||||
| ||||||||||||||||
Class R6 | (2,812,551 | ) | (22,418,300 | ) | (6,519,957 | ) | (55,808,328 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (5,744,262 | ) | $ | (45,164,329 | ) | (16,623,032 | ) | $ | (144,190,619 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 35% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
NOTE 11–Significant Event
At the meeting held March 16, 2023, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would transfer all of its assets and liabilities to Invesco Developing Markets Fund (the “Acquiring Fund”).
The reorganization is expected to be consummated at the close of business on or about June 23, 2023. Upon closing of the reorganization, shareholders of the Fund will receive shares of the Acquiring Fund in exchange for their shares of the Fund, and the Fund will liquidate and cease operations.
16 | Invesco Emerging Markets Innovators 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, 2022 through April 30, 2023.
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 | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Ratio | |||||||||
Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,190.00 | $8.15 | $1,017.36 | $7.50 | 1.50% | ||||||
Class C | 1,000.00 | 1,186.10 | 12.20 | 1,013.64 | 11.23 | 2.25 | ||||||
Class R | 1,000.00 | 1,189.80 | 9.50 | 1,016.12 | 8.75 | 1.75 | ||||||
Class Y | 1,000.00 | 1,192.00 | 6.79 | 1,018.60 | 6.26 | 1.25 | ||||||
Class R5 | 1,000.00 | 1,192.20 | 6.79 | 1,018.60 | 6.26 | 1.25 | ||||||
Class R6 | 1,000.00 | 1,192.70 | 6.80 | 1,018.60 | 6.26 | 1.25 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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 Emerging Markets Innovators 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
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-EMI-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Emerging Markets Local Debt Fund
Nasdaq:
A: OEMAX ∎ C: OEMCX ∎ R: OEMNX ∎ Y: OEMYX ∎ R5: EMLDX ∎ R6: OEMIX
2 | ||||
4 | ||||
5 | ||||
13 | ||||
16 | ||||
17 | ||||
26 |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
|
| |||
Fund vs. Indexes | ||||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 16.16 | % | ||
Class C Shares | 15.95 | |||
Class R Shares | 16.23 | |||
Class Y Shares | 16.51 | |||
Class R5 Shares | 16.58 | |||
Class R6 Shares | 16.37 | |||
JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index▼ | 16.06 | |||
Source(s): ▼RIMES Technologies Corp.
| ||||
The JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index is a comprehensive global local emerging markets index comprising liquid, fixed-rate, domestic currency government bonds. 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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Emerging Markets Local Debt Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (6/30/10) | 0.75 | % | ||
10 Years | -1.39 | |||
5 Years | -2.08 | |||
1 Year | 2.46 | |||
Class C Shares | ||||
Inception (6/30/10) | 0.61 | % | ||
10 Years | -1.59 | |||
5 Years | -2.02 | |||
1 Year | 5.16 | |||
Class R Shares | ||||
Inception (6/30/10) | 0.82 | % | ||
10 Years | -1.23 | |||
5 Years | -1.50 | |||
1 Year | 6.69 | |||
Class Y Shares | ||||
Inception (6/30/10) | 1.37 | % | ||
10 Years | -0.69 | |||
5 Years | -1.00 | |||
1 Year | 7.23 | |||
Class R5 Shares | ||||
10 Years | -0.82 | % | ||
5 Years | -0.95 | |||
1 Year | 7.37 | |||
Class R6 Shares | ||||
Inception (9/28/12) | -0.03 | % | ||
10 Years | -0.61 | |||
5 Years | -0.90 | |||
1 Year | 7.37 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Emerging Markets Local Debt Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Emerging Markets Local Debt Fund. Note: The Fund was subsequently renamed the Invesco Emerging Markets Local Debt Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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.
3 | Invesco Emerging Markets Local Debt Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Emerging Markets Local Debt Fund |
April 30, 2023
(Unaudited)
Principal Amount | Value | |||||||||
Non-U.S. Dollar Denominated Bonds & Notes–76.14%(a) |
| |||||||||
Brazil–4.21% | ||||||||||
Brazil Notas do Tesouro Nacional, | ||||||||||
Series B, 6.00%, 05/15/2045 | BRL | 500,000 | $ | 422,662 | ||||||
Series F, 10.00%, 01/01/2027 | BRL | 20,000,000 | 3,808,875 | |||||||
4,231,537 | ||||||||||
Chile–3.11% | ||||||||||
Bonos de la Tesoreria de la Republica, 0.00%, 03/01/2025 | CLP | 1,254,349,250 | 1,461,303 | |||||||
Bonos de la Tesoreria de la Republica en pesos, 2.30%, 10/01/2028(b) | CLP | 1,600,000,000 | 1,671,216 | |||||||
3,132,519 | ||||||||||
China–2.81% | ||||||||||
China Government Bond, 3.72%, 04/12/2051 | CNY | 4,000,000 | 633,433 | |||||||
Export-Import Bank of China (The), Series 2105, 3.22%, 05/14/2026 | CNY | 10,000,000 | 1,466,465 | |||||||
PBOC International Note, 2.30%, 08/24/2023(b) | CNY | 5,000,000 | 721,787 | |||||||
2,821,685 | ||||||||||
Colombia–9.26% | ||||||||||
Colombian TES, | ||||||||||
Series B, 5.75%, 11/03/2027 | COP | 24,000,000,000 | 4,128,116 | |||||||
Series B, 6.00%, 04/28/2028 | COP | 6,800,000,000 | 1,160,753 | |||||||
Series B, 7.25%, 10/18/2034 | COP | 3,500,000,000 | 530,935 | |||||||
Series B, 9.25%, 05/28/2042 | COP | 3,500,000,000 | 590,602 | |||||||
Series B, 7.25%, 10/26/2050 | COP | 13,300,000,000 | 1,753,381 | |||||||
PA Autopista Rio Magdalena, 6.05%, 06/15/2036(b) | COP | 6,500,000,000 | 1,153,089 | |||||||
9,316,876 | ||||||||||
Czech Republic–4.68% | ||||||||||
Czech Republic Government Bond, | ||||||||||
Series 100, 0.25%, 02/10/2027 | CZK | 20,000,000 | 788,600 | |||||||
Series 105, 2.75%, 07/23/2029 | CZK | 30,000,000 | 1,259,510 | |||||||
Series 125, 1.50%, 04/24/2040 | CZK | 2,000,000 | 60,130 | |||||||
Series 148, 6.00%, 02/26/2026 | CZK | 20,000,000 | 963,306 | |||||||
Series 49, 4.20%, 12/04/2036(b) | CZK | 15,000,000 | 675,555 | |||||||
Series 78, 2.50%, 08/25/2028(b) | CZK | 23,000,000 | 964,439 | |||||||
4,711,540 |
Principal Amount | Value | |||||||||
India–2.45% | ||||||||||
India Government Bond, 7.27%, 04/08/2026 | INR | 200,000,000 | $ | 2,465,388 | ||||||
Indonesia–7.61% | ||||||||||
Indonesia Treasury Bond, | ||||||||||
Series FR91, 6.38%, 04/15/2032 | IDR | 25,000,000,000 | 1,686,554 | |||||||
Series FR92, 7.13%, 06/15/2042 | IDR | 16,000,000,000 | 1,112,922 | |||||||
Series FR95, 6.38%, 08/15/2028 | IDR | 40,000,000,000 | 2,739,332 | |||||||
Series FR96, 7.00%, 02/15/2033 | IDR | 30,000,000,000 | 2,114,959 | |||||||
7,653,767 | ||||||||||
Malaysia–8.83% | ||||||||||
Malaysia Government Bond, | ||||||||||
Series 0122, 3.58%, 07/15/2032 | MYR | 5,000,000 | 1,107,653 | |||||||
Series 0519, 3.76%, 05/22/2040 | MYR | 3,000,000 | 645,062 | |||||||
Series 115, 3.96%, 09/15/2025 | MYR | 9,000,000 | 2,048,944 | |||||||
Series 120, 4.07%, 06/15/2050 | MYR | 5,000,000 | 1,081,452 | |||||||
Series 219, 3.89%, 08/15/2029 | MYR | 13,500,000 | 3,057,111 | |||||||
Malaysian Government Bond, Series 310, 4.50%, 04/15/2030 | MYR | 4,000,000 | 942,510 | |||||||
8,882,732 | ||||||||||
Mexico–3.94% | ||||||||||
Mexican Bonos, | ||||||||||
Series M, 7.50%, 05/26/2033 | MXN | 57,000,000 | 2,893,242 | |||||||
Series M, 8.00%, 07/31/2053 | MXN | 20,000,000 | 983,798 | |||||||
Red de Carreteras de Occidente S.A.B. de C.V., 9.00%, 06/10/2028(b) | MXN | 1,725,000 | 90,906 | |||||||
3,967,946 | ||||||||||
Peru–4.20% | ||||||||||
Peru Government Bond, | ||||||||||
5.94%, 02/12/2029 | PEN | 3,000,000 | 765,838 | |||||||
6.15%, 08/12/2032 | PEN | 14,000,000 | 3,459,239 | |||||||
4,225,077 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Emerging Markets Local Debt Fund |
Principal Amount | Value | |||||||||||
Poland–5.95% | ||||||||||||
Republic of Poland Government Bond, |
| |||||||||||
Series 0727, 2.50%, 07/25/2027 | PLN | 6,000,000 | $ | 1,262,536 | ||||||||
Series 1029, 2.75%, 10/25/2029 | PLN | 10,000,000 | 2,009,995 | |||||||||
Series 432, 1.75%, 04/25/2032 | PLN | 8,000,000 | 1,386,031 | |||||||||
Series 527, 3.75%, 05/25/2027 | PLN | 6,000,000 | 1,328,100 | |||||||||
5,986,662 | ||||||||||||
Romania–2.48% | ||||||||||||
Romania Government Bond, | ||||||||||||
8.25%, 09/29/2032 | RON | 3,500,000 | 828,608 | |||||||||
4.25%, 04/28/2036 | RON | 2,500,000 | 413,399 | |||||||||
Series 15, 4.75%, 10/11/2034 | RON | 7,000,000 | 1,253,718 | |||||||||
2,495,725 | ||||||||||||
South Africa–10.96% | ||||||||||||
Republic of South Africa Government Bond, | ||||||||||||
Series 2030, 8.00%, 01/31/2030 | ZAR | 65,000,000 | 3,184,174 | |||||||||
Series 2037, 8.50%, 01/31/2037 | ZAR | 75,000,000 | 3,225,912 | |||||||||
Series 2040, 9.00%, 01/31/2040 | ZAR | 50,000,000 | 2,171,792 | |||||||||
Series R186, 10.50%, 12/21/2026 | ZAR | 30,000,000 | 1,723,460 | |||||||||
Series R209, 6.25%, 03/31/2036 | ZAR | 20,000,000 | 717,343 | |||||||||
11,022,681 | ||||||||||||
Supranational–0.54% | ||||||||||||
European Bank for Reconstruction and Development, 7.00%, 11/29/2024 | VND | 10,000,000,000 | 438,257 | |||||||||
International Finance Corp., 0.00%, 02/15/2029(b)(c) | TRY | 7,300,000 | 107,165 | |||||||||
545,422 | ||||||||||||
Thailand–5.11% | ||||||||||||
Thailand Government Bond, | ||||||||||||
2.88%, 12/17/2028 | THB | 40,000,000 | 1,212,541 | |||||||||
2.00%, 12/17/2031 | THB | 5,000,000 | 141,221 | |||||||||
3.78%, 06/25/2032 | THB | 50,000,000 | 1,623,130 | |||||||||
1.59%, 12/17/2035 | THB | 65,000,000 | 1,694,359 | |||||||||
3.45%, 06/17/2043 | THB | 15,000,000 | 471,038 | |||||||||
5,142,289 | ||||||||||||
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $80,249,198) |
| 76,601,846 |
Principal Amount | Value | |||||||||||
U.S. Dollar Denominated Bonds & Notes–0.97% |
| |||||||||||
Egypt–0.85% | ||||||||||||
Egypt Government International Bond, | ||||||||||||
6.20%, 03/01/2024(b) | $ | 500,000 | $ | 439,427 | ||||||||
5.75%, 05/29/2024(b) | 500,000 | 418,087 | ||||||||||
857,514 | ||||||||||||
United States–0.12% | ||||||||||||
U.S. International Development Finance Corp., Series 4, 3.13%, 04/15/2028 | 120,000 | 114,989 | ||||||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $1,081,356) |
| 972,503 | ||||||||||
Shares | ||||||||||||
Money Market Funds–19.59% |
| |||||||||||
Invesco Government & Agency Portfolio, Institutional Class, |
| 6,897,402 | 6,897,402 | |||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(d)(e) |
| 4,925,438 | 4,926,916 | |||||||||
Invesco Treasury Portfolio, Institutional Class, |
| 7,882,745 | 7,882,745 | |||||||||
Total Money Market Funds (Cost $19,706,616) |
| 19,707,063 | ||||||||||
Options Purchased–0.21% |
| |||||||||||
(Cost $298,651)(f) | 211,831 | |||||||||||
TOTAL INVESTMENTS IN SECURITIES–96.91% (Cost $101,335,821) |
| 97,493,243 | ||||||||||
OTHER ASSETS LESS LIABILITIES–3.09% |
| 3,107,385 | ||||||||||
NET ASSETS–100.00% | $ | 100,600,628 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Emerging Markets Local Debt Fund |
Investment Abbreviations: | ||
BRL | – Brazilian Real | |
CLP | – Chile Peso | |
CNY | – Chinese Yuan Renminbi | |
COP | – Colombia Peso | |
CZK | – Czech Koruna | |
IDR | – Indonesian Rupiah | |
INR | – Indian Rupee | |
MXN | – Mexican Peso | |
MYR | – Malaysian Ringgit | |
PEN | – Peruvian Sol | |
PLN | – Polish Zloty | |
RON | – Romania New Leu | |
THB | – Thai Baht | |
TRY | – Turkish Lira | |
VND | – Viet Nam Dong | |
ZAR | – South African Rand |
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, 2023 was $6,241,671, which represented 6.20% of the Fund’s Net Assets. |
(c) | Zero coupon bond issued at a discount. |
(d) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: |
| |||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 5,217,147 | �� | $ | 25,660,674 | $ | (23,980,419 | ) | $ | - | $ | - | $ | 6,897,402 | $ 38,449 | |||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 3,727,210 | 18,329,053 | (17,129,401 | ) | 132 | (78) | 4,926,916 | 26,433 | ||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 5,962,453 | 29,326,485 | (27,406,193 | ) | - | - | 7,882,745 | 40,996 | ||||||||||||||||||||||||
Total | $ | 14,906,810 | $ | 73,316,212 | $ | (68,516,013 | ) | $ | 132 | $ | (78) | $ | 19,707,063 | $105,878 |
(e) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(f) | The table below details options purchased. |
Open Over-The-Counter Foreign Currency Options Purchased(a) | ||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Expiration Date | Exercise Price | Notional Value | Value | ||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||
EUR versus USD | Call | Bank of America, N.A. | 10/04/2023 | USD | 1.19 | EUR | 355,000 | $31,559 | ||||||||||||||||
Currency Risk | ||||||||||||||||||||||||
USD versus CNH | Put | J.P. Morgan Chase Bank, N.A. | 09/28/2023 | CNH | 6.40 | USD | 200,000 | 5,098 | ||||||||||||||||
USD versus COP | Put | Bank of America, N.A. | 07/11/2023 | COP | 4,200.00 | USD | 300,000 | 12,813 | ||||||||||||||||
USD versus IDR | Put | Standard Chartered Bank PLC | 07/25/2023 | IDR | 14,685.00 | USD | 3,550,000 | 53,282 | ||||||||||||||||
USD versus MXN | Put | Bank of America, N.A. | 09/07/2023 | MXN | 17.90 | USD | 2,800,000 | 34,586 | ||||||||||||||||
USD versus PLN | Put | J.P. Morgan Chase Bank, N.A. | 10/13/2023 | PLN | 4.05 | USD | 2,800,000 | 37,041 | ||||||||||||||||
USD versus THB | Put | J.P. Morgan Chase Bank, N.A. | 05/09/2023 | THB | 31.00 | USD | 200,000 | 3 | ||||||||||||||||
USD versus THB | Put | J.P. Morgan Chase Bank, N.A. | 08/24/2023 | THB | 32.25 | USD | 240,000 | 37,449 | ||||||||||||||||
Subtotal – Foreign Currency Put Options Purchased | 180,272 | |||||||||||||||||||||||
Total Foreign Currency Options Purchased | $211,831 |
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $40,000. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Emerging Markets Local Debt Fund |
Open Over-The-Counter Foreign Currency Options Written(a) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Expiration Date | Exercise Price | Notional Value | Value | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus COP | Call | Bank of America, N.A. | 09/05/2023 | COP | 5,275.00 | USD | 1,500,000 | $ | (24,894 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus IDR | Call | Standard Chartered Bank PLC | 07/25/2023 | IDR | 15,350.00 | USD | 3,550,000 | (14,885 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus KRW | Call | J.P. Morgan Chase Bank, N.A. | 10/06/2023 | KRW | 1,290.00 | USD | 1,000,000 | (40,908 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus MXN | Call | Bank of America, N.A. | 02/01/2024 | MXN | 21.00 | USD | 1,050,000 | (15,913 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus MXN | Call | Goldman Sachs International | 10/19/2023 | MXN | 21.50 | USD | 2,000,000 | (10,626 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus PLN | Call | J.P. Morgan Chase Bank, N.A. | 01/15/2024 | PLN | 4.55 | USD | 1,400,000 | (22,811 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Subtotal – Foreign Currency Call Options Written |
| (130,037 | ) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus CLP | Put | Morgan Stanley and Co. International PLC | 06/22/2023 | CLP | 785.00 | USD | 2,835,000 | (27,383 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus IDR | Put | Standard Chartered Bank PLC | 07/25/2023 | IDR | 14,320.00 | USD | 3,550,000 | (18,936 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
USD versus MXN | Put | Bank of America, N.A. | 09/07/2023 | MXN | 17.15 | USD | 2,800,000 | (8,484 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Subtotal – Foreign Currency Put Options Written |
| (54,803 | ) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Total – Foreign Currency Options Written | $ | (184,840 | ) | |||||||||||||||||||||||||||
|
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $40,000. |
Open Over-The-Counter Interest Rate Swaptions Written(a) | ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Exercise Rate | Floating Rate Index | Pay/ Receive Exercise Rate | Payment Frequency | Expiration Date | Notional Value | Value | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 2.75% | SOFR | Receive | Annually | 08/16/2023 | USD 2,900,000 | $ | (27,580 | ) | |||||||||||||||||||||||
|
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $40,000. |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||
Currency Risk | ||||||||||||||||||||
05/03/2023 | Bank of America, N.A. | USD | 1,190,000 | MXN | 21,643,125 | $ 13,767 | ||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 1,170,442 | EUR | 1,065,000 | 6,365 | ||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 119,051 | PEN | 450,000 | 1,988 | ||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 5,566,166 | THB | 190,404,610 | 36,671 | ||||||||||||||
06/21/2023 | Barclays Bank PLC | ZAR | 16,259,000 | USD | 886,632 | 1,761 | ||||||||||||||
10/10/2023 | BNP Paribas S.A. | CNY | 380,000 | USD | 56,841 | 1,360 | ||||||||||||||
06/21/2023 | Citibank, N.A. | CNY | 4,467,600 | USD | 651,789 | 4,051 | ||||||||||||||
06/21/2023 | Citibank, N.A. | USD | 3,601,489 | IDR | 55,743,847,382 | 195,887 | ||||||||||||||
06/22/2023 | Citibank, N.A. | CLP | 460,063,000 | USD | 567,170 | 1,018 | ||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 72,914 | CZK | 1,590,000 | 1,377 | ||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 4,998,038 | HUF | 1,820,885,331 | 300,103 | ||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 102,383 | MXN | 1,895,000 | 1,959 | ||||||||||||||
05/09/2023 | Goldman Sachs International | USD | 920,000 | MXN | 16,606,920 | 2,449 | ||||||||||||||
06/21/2023 | Goldman Sachs International | THB | 5,277,440 | USD | 156,341 | 1,047 | ||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 217,252 | MXN | 4,160,000 | 11,805 | ||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 185,203 | PLN | 825,000 | 12,478 | ||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 232,803 | RON | 1,085,000 | 9,543 | ||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 1,300,099 | THB | 44,440,000 | 7,590 | ||||||||||||||
06/02/2023 | HSBC Bank USA | BRL | 4,530,050 | USD | 909,024 | 6,313 | ||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | USD | 679,644 | BRL | 3,398,696 | 1,758 | ||||||||||||||
05/11/2023 | J.P. Morgan Chase Bank, N.A. | THB | 24,027,950 | USD | 730,000 | 25,811 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Emerging Markets Local Debt Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
| ||||||||||||||||||||||
Settlement | Contract to | | Unrealized Appreciation |
| ||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | J.P. Morgan Chase Bank, N.A. | USD | 7,891,700 | BRL | 40,078,000 | $ | 94,715 | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | COP | 5,948,580,000 | USD | 1,277,753 | 25,493 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | KRW | 1,132,620,000 | USD | 863,376 | 14,368 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 493,660 | COP | 2,396,425,000 | 10,821 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 3,321,134 | CZK | 75,159,700 | 190,629 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 1,049,557 | EUR | 960,000 | 11,226 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 965,324 | IDR | 14,377,820,000 | 14,120 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 9,478,011 | MXN | 172,444,075 | 17,090 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 195,666 | PEN | 745,000 | 4,720 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 46,594 | RON | 210,000 | 312 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 652,212 | ZAR | 12,140,000 | 8,489 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | ZAR | 10,630,000 | USD | 580,731 | 2,209 | ||||||||||||||||
| ||||||||||||||||||||||
09/20/2023 | J.P. Morgan Chase Bank, N.A. | COP | 13,278,200,000 | USD | 2,910,609 | 169,044 | ||||||||||||||||
| ||||||||||||||||||||||
10/10/2023 | J.P. Morgan Chase Bank, N.A. | CNY | 6,720,000 | USD | 1,000,000 | 18,859 | ||||||||||||||||
| ||||||||||||||||||||||
10/17/2023 | J.P. Morgan Chase Bank, N.A. | USD | 37,568 | PLN | 160,000 | 523 | ||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Morgan Stanley and Co. International PLC | USD | 2,312,632 | BRL | 11,638,696 | 20,801 | ||||||||||||||||
| ||||||||||||||||||||||
05/11/2023 | Morgan Stanley and Co. International PLC | THB | 5,760,000 | USD | 177,605 | 8,796 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | CZK | 21,510,000 | USD | 1,008,918 | 3,885 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 1,015,588 | EUR | 920,000 | 996 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 74,253 | HUF | 27,740,000 | 6,461 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 77,670 | IDR | 1,144,420,000 | 290 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 684,713 | MXN | 12,580,000 | 7,966 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 1,804,107 | PLN | 8,049,090 | 124,556 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | ZAR | 1,547,000 | USD | 84,395 | 202 | ||||||||||||||||
| ||||||||||||||||||||||
06/22/2023 | Morgan Stanley and Co. International PLC | CLP | 697,450,000 | USD | 878,146 | 19,867 | ||||||||||||||||
| ||||||||||||||||||||||
06/27/2023 | Morgan Stanley and Co. International PLC | USD | 285,000 | CLP | 233,685,750 | 2,390 | ||||||||||||||||
| ||||||||||||||||||||||
10/10/2023 | Morgan Stanley and Co. International PLC | CNY | 6,950,000 | USD | 1,039,635 | 24,913 | ||||||||||||||||
| ||||||||||||||||||||||
10/23/2023 | Morgan Stanley and Co. International PLC | USD | 113,283 | MXN | 2,120,000 | 675 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | ZAR | 2,590,000 | USD | 141,343 | 386 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | USD | 57,368 | COP | 277,790,000 | 1,111 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | USD | 195,219 | IDR | 3,018,085,000 | 10,379 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | USD | 1,522,065 | MYR | 6,824,900 | 17,330 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | USD | 975,995 | THB | 33,549,500 | 11,231 | ||||||||||||||||
| ||||||||||||||||||||||
06/22/2023 | Standard Chartered Bank PLC | USD | 446,871 | CLP | 364,365,000 | 1,515 | ||||||||||||||||
| ||||||||||||||||||||||
Subtotal–Appreciation | 1,491,469 | |||||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Bank of America, N.A. | MXN | 18,544,050 | USD | 980,000 | (51,400 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/16/2023 | Bank of America, N.A. | MXN | 6,719,125 | USD | 350,000 | (20,340 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 1,893,181 | KRW | 2,479,953,000 | (34,217 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 1,396,895 | ZAR | 25,210,400 | (24,859 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/07/2023 | Bank of America, N.A. | COP | 3,387,900,000 | USD | 690,000 | (20,933 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/07/2023 | Bank of America, N.A. | USD | 375,000 | COP | 1,720,500,000 | (13,962 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/07/2023 | Bank of America, N.A. | COP | 2,039,750,000 | USD | 410,000 | (12,278 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/06/2023 | Bank of America, N.A. | EUR | 1,065,000 | USD | 1,177,198 | (5,665 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | RON | 673,000 | USD | 144,359 | (5,963 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Citibank, N.A. | THB | 13,548,000 | USD | 391,102 | (7,561 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | CZK | 9,777,000 | USD | 435,794 | (21,027 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | MXN | 23,157,985 | USD | 1,263,436 | (11,688 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | ZAR | 30,603,440 | USD | 1,647,898 | (17,647 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | PEN | 490,000 | USD | 128,108 | (3,690 | ) | |||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Emerging Markets Local Debt Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
| ||||||||||||||||||||||
Settlement | Contract to | | Unrealized Appreciation |
| ||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 215,768 | THB | 7,280,000 | $ | (1,547 | ) | ||||||||||||||
| ||||||||||||||||||||||
10/23/2023 | Goldman Sachs International | MXN | 7,598,100 | USD | 380,000 | (28,428 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | HUF | 401,638,125 | USD | 1,142,251 | (26,376 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | PEN | 3,717,000 | USD | 974,133 | (25,648 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | RON | 1,958,070 | USD | 420,470 | (16,886 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 6,915,299 | CNY | 47,443,392 | (36,687 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | ZAR | 9,490,000 | USD | 511,476 | (5,002 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | BRL | 4,418,696 | USD | 855,318 | (30,583 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | MXN | 3,099,075 | USD | 171,163 | (1,204 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | USD | 207,547 | BRL | 1,020,000 | (3,048 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | J.P. Morgan Chase Bank, N.A. | BRL | 2,115,000 | USD | 419,560 | (1,900 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/12/2023 | J.P. Morgan Chase Bank, N.A. | USD | 685,000 | BRL | 3,411,300 | (6,425 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | COP | 22,768,907,000 | USD | 4,704,329 | (88,849 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | CZK | 44,120,000 | USD | 2,007,424 | (54,039 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | HUF | 92,393,000 | USD | 250,325 | (18,507 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | INR | 202,060,250 | USD | 2,445,687 | (20,352 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | MXN | 22,831,000 | USD | 1,251,851 | (5,268 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | PEN | 935,000 | USD | 245,342 | (6,149 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | PLN | 4,310,000 | USD | 958,539 | (74,191 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 2,968,522 | COP | 13,278,200,000 | (173,273 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 140,941 | THB | 4,750,000 | (1,168 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 1,458,745 | ZAR | 26,030,000 | (42,103 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | ZAR | 17,869,742 | USD | 970,000 | (2,533 | ) | |||||||||||||||
| ||||||||||||||||||||||
08/28/2023 | J.P. Morgan Chase Bank, N.A. | THB | 34,696,400 | USD | 1,016,000 | (11,742 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/17/2023 | J.P. Morgan Chase Bank, N.A. | PLN | 4,450,950 | USD | 1,050,000 | (9,617 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Morgan Stanley and Co. International PLC | BRL | 11,638,696 | USD | 2,328,656 | (4,777 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | Morgan Stanley and Co. International PLC | BRL | 7,008,696 | USD | 1,378,240 | (18,395 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/05/2023 | Morgan Stanley and Co. International PLC | USD | 565,000 | CLP | 452,045,200 | (7,511 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | CNY | 2,710,000 | USD | 391,630 | (1,281 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | EUR | 328,385 | USD | 348,210 | (14,650 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | IDR | 8,719,806,000 | USD | 563,630 | (30,380 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | MXN | 23,838,000 | USD | 1,301,968 | (10,599 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | PHP | 56,466,000 | USD | 1,018,047 | (1,059 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | PLN | 2,836,000 | USD | 636,397 | (43,144 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | ZAR | 9,398,000 | USD | 501,777 | (9,694 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/22/2023 | Morgan Stanley and Co. International PLC | USD | 959,382 | CLP | 773,070,000 | (8,045 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/10/2023 | Morgan Stanley and Co. International PLC | USD | 50,149 | CNY | 340,000 | (508 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | COP | 931,701,000 | USD | 191,696 | (4,440 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | MYR | 2,703,000 | USD | 603,772 | (5,904 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | PEN | 3,702,000 | USD | 976,523 | (19,223 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | USD | 1,015,055 | MYR | 4,450,000 | (11,333 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/27/2023 | Standard Chartered Bank PLC | IDR | 22,722,500,000 | USD | 1,525,000 | (22,066 | ) | |||||||||||||||
| ||||||||||||||||||||||
Subtotal–Depreciation | (1,155,764 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | 335,705 | ||||||||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Emerging Markets Local Debt 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) | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 3 Month CNRR007 | Quarterly | 2.70 | % | Quarterly | 11/24/2027 | CNY | 6,000,000 | $ | – | $ | 183 | $ | 183 | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | 3 Month CZK PRIOBR | Quarterly | (7.02) | Annually | 02/10/2024 | CZK | 50,000,000 | – | 3,029 | 3,029 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | 6 Month WIBOR | Semi-Annually | (6.28) | Annually | 03/15/2025 | PLN | 12,500,000 | – | 4,330 | 4,330 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | FBIL Overnight MIBOR | Semi-Annually | 6.24 | Semi-Annually | 04/06/2028 | INR | 80,000,000 | – | 8,261 | 8,261 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | 3 Month COOVIBR | Quarterly | (8.96) | Quarterly | 05/23/2032 | COP | 4,400,000,000 | – | 8,314 | 8,314 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | TTHORON | Quarterly | 2.60 | Quarterly | 04/24/2033 | THB | 55,000,000 | – | 9,118 | 9,118 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 Days | 8.74 | 28 Days | 06/03/2027 | MXN | 79,000,000 | – | 9,756 | 9,756 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | BZDIOVRA | At Maturity | (11.82) | At Maturity | 01/02/2029 | BRL | 10,251,941 | – | 11,989 | 11,989 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | 3 Month COOVIBR | Quarterly | (9.05) | Quarterly | 08/10/2027 | COP | 4,545,500,000 | – | 16,095 | 16,095 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 Days | 9.13 | 28 Days | 02/11/2028 | MXN | 14,000,000 | – | 17,893 | 17,893 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | BZDIOVRA | At Maturity | (13.14) | At Maturity | 01/02/2024 | BRL | 83,135,039 | – | 18,662 | 18,662 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 6 Month BUBOR | Semi-Annually | 9.61 | Annually | 07/27/2027 | HUF | 389,700,000 | – | 19,843 | 19,843 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 6 Month BUBOR | Semi-Annually | 9.78 | Annually | 08/04/2027 | HUF | 300,000,000 | - | 20,719 | 20,719 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | 3 Month COOVIBR | Quarterly | (8.59) | Quarterly | 05/31/2032 | COP | 3,215,000,000 | - | 21,124 | 21,124 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 Days | 8.45 | 28 Days | 05/29/2031 | MXN | 74,000,000 | – | 21,493 | 21,493 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | 3 Month COOVIBR | Quarterly | (8.37) | Quarterly | 03/25/2027 | COP | 3,000,000,000 | – | 23,530 | 23,530 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 6 Month BUBOR | Semi-Annually | 9.20 | Annually | 03/16/2028 | HUF | 504,500,000 | – | 24,140 | 24,140 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (7.98) | Quarterly | 03/07/2032 | ZAR | 10,700,000 | – | 44,534 | 44,534 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Subtotal – Appreciation | – | 283,013 | 283,013 | |||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.91) | Quarterly | 01/17/2028 | COP | 9,295,000,000 | – | (45,361) | (45,361) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 11.30 | At Maturity | 01/02/2026 | BRL | 8,667,090 | – | (40,100) | (40,100) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 3 Month JIBAR | Quarterly | 7.49 | Quarterly | 03/22/2025 | ZAR | 57,700,000 | – | (39,682) | (39,682) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | CLICP | Semi-Annually | (6.28) | Semi-Annually | 03/08/2028 | CLP | 1,117,250,000 | – | (30,573) | (30,573) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | CLICP | Semi-Annually | 7.56 | Semi-Annually | 04/04/2025 | CLP | 3,800,000,000 | – | (29,777) | (29,777) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | 28 Day MXN TIIE | 28 Days | (9.66) | 28 Days | 12/17/2025 | MXN | 70,000,000 | – | (27,699) | (27,699) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 3 Month CNRR007 | Quarterly | 2.36 | Quarterly | 04/12/2027 | CNY | 15,000,000 | – | (23,063) | (23,063) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 11.51 | At Maturity | 07/01/2026 | BRL | 18,479,381 | – | (23,018) | (23,018) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | TTHORON | Quarterly | (2.48) | Quarterly | 09/05/2027 | THB | 40,000,000 | – | (19,076) | (19,076) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 11.72 | At Maturity | 01/02/2026 | BRL | 8,286,342 | – | (18,524) | (18,524) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 3 Month JIBAR | Quarterly | 7.87 | Quarterly | 03/31/2025 | ZAR | 47,820,000 | – | (17,408) | (17,408) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 11.89 | At Maturity | 01/02/2025 | BRL | 36,375,708 | – | (15,587) | (15,587) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 6 Month WIBOR | Semi-Annually | 5.29 | Annually | 03/15/2028 | PLN | 5,400,000 | – | (10,710) | (10,710) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Receive | CNRR007 | Quarterly | (2.82) | Quarterly | 03/23/2028 | CNY | 11,500,000 | – | (7,477) | (7,477) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | KWCDC | Quarterly | 3.32 | Quarterly | 04/05/2025 | KRW | 6,750,000,000 | – | (7,320) | (7,320) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 3 Month CNRR007 | Quarterly | 2.44 | Quarterly | 04/27/2027 | CNY | 5,000,000 | – | (5,753) | (5,753) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Pay | 3 Month CNRR007 | Quarterly | 2.51 | Quarterly | 07/18/2027 | CNY | 5,000,000 | – | (4,523) | (4,523) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Subtotal – Depreciation | – | (365,651) | (365,651) | |||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Total Centrally Cleared Interest Rate Swap Agreements |
| $ | – | $ | (82,638) | $ | (82,638) | |||||||||||||||||||||||||||||||||||
|
(a) | Centrally cleared swap agreements collateralized by $781,202 cash held with Counterparties. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Emerging Markets Local Debt Fund |
Abbreviations: | ||
BRL | –Brazilian Real | |
BUBOR | –Budapest Interbank Offered Rate | |
BZDIOVRA | –Brazil Ceptip DI Interbank Deposit Rate | |
CLICP | –Sinacofi Chile Interbank Rate Avg (CAMARA) | |
CLP | –Chile Peso | |
CNH | –Chinese Renminbi | |
CNRR007 | –China 7-Day Reverse Repo Rate | |
CNY | –Chinese Yuan Renminbi | |
COOVIBR | –Colombia IBR Overnight Nominal Interbank Reference Rate | |
COP | –Colombia Peso | |
CZK | –Czech Koruna | |
EUR | –Euro | |
FBIL | –Financial Benchmarks India Private Ltd. | |
HUF | –Hungarian Forint | |
IDR | –Indonesian Rupiah | |
INR | –Indian Rupee | |
JIBAR | –Johannesburg Interbank Average Rate | |
KRW | –South Korean Won | |
KWCDC | –South Korean Won Certificate of Deposit | |
MIBOR | –Mumbai Interbank Offered Rate | |
MXN | –Mexican Peso | |
MYR | –Malaysian Ringgit | |
PEN | –Peruvian Sol | |
PHP | –Philippines Peso | |
PLN | –Polish Zloty | |
RON | –Romania New Leu | |
SOFR | –Secured Overnight Financing Rate | |
THB | –Thai Baht | |
TIIE | –Interbank Equilibrium Interest Rate | |
TTHORON | –Thai Overnight Repurchase Rate | |
USD | –U.S. Dollar | |
WIBOR | –Warsaw Interbank Offered Rate | |
ZAR | –South African Rand |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2023
Sovereign Debt | 73.76 | % | ||
Financials | 2.11 | |||
Other Sectors, Each Less than 2% of Net Assets | 1.45 | |||
Money Market Funds Plus Other Assets Less Liabilities | 22.68 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Emerging Markets Local Debt Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 77,786,180 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $19,706,616) | 19,707,063 | |||
| ||||
Other investments: | ||||
Variation margin receivable-centrally cleared swap agreements | 23,360 | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 1,491,469 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral – exchange-traded futures contracts | 203,881 | |||
| ||||
Cash collateral – centrally cleared swap agreements | 781,202 | |||
| ||||
Cash collateral – OTC Derivatives | 40,000 | |||
| ||||
Cash | 511,596 | |||
| ||||
Foreign currencies, at value (Cost $183,347) | 176,096 | |||
| ||||
Receivable for: | ||||
Investments sold | 22,733 | |||
| ||||
Fund shares sold | 186,803 | |||
| ||||
Dividends | 18,339 | |||
| ||||
Interest | 1,753,873 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 30,294 | |||
| ||||
Other assets | 39,110 | |||
| ||||
Total assets | 102,771,999 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Options written, at value (premiums received $266,313) | 212,420 | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 1,155,764 | |||
| ||||
Payable for: | ||||
Investments purchased | 459,909 | |||
| ||||
Dividends | 91,835 | |||
| ||||
Fund shares reacquired | 93,376 | |||
| ||||
Accrued foreign taxes | 8,934 | |||
| ||||
Accrued fees to affiliates | 48,048 | |||
| ||||
Accrued other operating expenses | 70,791 | |||
| ||||
Trustee deferred compensation and retirement plans | 30,294 | |||
| ||||
Total liabilities | 2,171,371 | |||
| ||||
Net assets applicable to shares outstanding | $ | 100,600,628 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 115,788,921 | ||
| ||||
Distributable earnings (loss) | (15,188,293 | ) | ||
| ||||
$100,600,628 | ||||
| ||||
Net Assets: | ||||
Class A | $ | 23,648,894 | ||
| ||||
Class C | $ | 4,664,899 | ||
| ||||
Class R | $ | 1,779,214 | ||
| ||||
Class Y | $ | 67,585,341 | ||
| ||||
Class R5 | $ | 8,336 | ||
| ||||
Class R6 | $ | 2,913,944 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 4,281,392 | |||
| ||||
Class C | 844,310 | |||
| ||||
Class R | 322,015 | |||
| ||||
Class Y | 12,224,796 | |||
| ||||
Class R5 | 1,508 | |||
| ||||
Class R6 | 527,507 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 5.52 | ||
| ||||
Maximum offering price per share | ||||
(Net asset value of $5.52 ÷ 95.75%) | $ | 5.77 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 5.53 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 5.53 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 5.53 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 5.53 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 5.52 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Emerging Markets Local Debt Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest (net of foreign withholding taxes of $48,292) | $ | 3,339,888 | ||
| ||||
Dividends from affiliated money market funds | 105,878 | |||
| ||||
Total investment income | 3,445,766 | |||
| ||||
Expenses: | ||||
Advisory fees | 309,238 | |||
| ||||
Administrative services fees | 6,520 | |||
| ||||
Custodian fees | 39,967 | |||
| ||||
Distribution fees: | ||||
Class A | 26,843 | |||
| ||||
Class C | 23,471 | |||
| ||||
Class R | 4,106 | |||
| ||||
Interest expense | 40,751 | |||
| ||||
Transfer agent fees – A, C, R and Y | 83,553 | |||
| ||||
Transfer agent fees – R5 | 1 | |||
| ||||
Transfer agent fees – R6 | 396 | |||
| ||||
Trustees’ and officers’ fees and benefits | 6,525 | |||
| ||||
Registration and filing fees | 42,668 | |||
| ||||
Reports to shareholders | 10,298 | |||
| ||||
Professional services fees | 29,852 | |||
| ||||
Other | 10,205 | |||
| ||||
Total expenses | 634,394 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (30,409 | ) | ||
| ||||
Net expenses | 603,985 | |||
| ||||
Net investment income | 2,841,781 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities (net of foreign taxes of $1,754) | (298,683 | ) | ||
| ||||
Affiliated investment securities | (78 | ) | ||
| ||||
Foreign currencies | (303,663 | ) | ||
| ||||
Forward foreign currency contracts | 861,852 | |||
| ||||
Futures contracts | (43,072 | ) | ||
| ||||
Option contracts written | 511,505 | |||
| ||||
Swap agreements | (45,460 | ) | ||
| ||||
682,401 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities (net of foreign taxes of $8,934) | 9,616,553 | |||
| ||||
Affiliated investment securities | 132 | |||
| ||||
Foreign currencies | 199,393 | |||
| ||||
Forward foreign currency contracts | (184,105 | ) | ||
| ||||
Option contracts written | 145,871 | |||
| ||||
Swap agreements | (163,611 | ) | ||
| ||||
9,614,233 | ||||
| ||||
Net realized and unrealized gain | 10,296,634 | |||
| ||||
Net increase in net assets resulting from operations | $ | 13,138,415 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Emerging Markets Local Debt Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
Operations: | ||||||||
Net investment income | $ | 2,841,781 | $ | 4,989,630 | ||||
| ||||||||
Net realized gain (loss) | 682,401 | (18,828,737 | ) | |||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 9,614,233 | (4,604,730 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 13,138,415 | (18,443,837 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (643,512 | ) | – | |||||
| ||||||||
Class C | (119,815 | ) | – | |||||
| ||||||||
Class R | (45,892 | ) | – | |||||
| ||||||||
Class Y | (1,798,797 | ) | – | |||||
| ||||||||
Class R5 | (248 | ) | – | |||||
| ||||||||
Class R6 | (85,706 | ) | – | |||||
| ||||||||
Total distributions from distributable earnings | (2,693,970 | ) | – | |||||
| ||||||||
Return of capital: | ||||||||
Class A | – | (1,308,109 | ) | |||||
| ||||||||
Class C | – | (232,461 | ) | |||||
| ||||||||
Class R | – | (75,996 | ) | |||||
| ||||||||
Class Y | – | (3,505,240 | ) | |||||
| ||||||||
Class R5 | – | (437 | ) | |||||
| ||||||||
Class R6 | – | (172,749 | ) | |||||
| ||||||||
Total return of capital | – | (5,294,992 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 365,099 | (10,038,507 | ) | |||||
| ||||||||
Class C | (377,391 | ) | (1,780,116 | ) | ||||
| ||||||||
Class R | 114,651 | 200 | ||||||
| ||||||||
Class Y | 12,642,210 | (29,344,167 | ) | |||||
| ||||||||
Class R6 | (1,402 | ) | (1,047,904 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | 12,743,167 | (42,210,494 | ) | |||||
| ||||||||
Net increase (decrease) in net assets | 23,187,612 | (65,949,323 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 77,413,016 | 143,362,339 | ||||||
| ||||||||
End of period | $ | 100,600,628 | $ | 77,413,016 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Emerging Markets Local Debt Fund |
(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 on securities realized and | Total from investment | Dividends from net investment income | Return of capital | Total distributions | Net asset value, end of period | Total return(b) | Net assets, (000’s omitted) | Ratio of fee waivers absorbed | Ratio of fee waivers and/or | Ratio of net investment income to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $ | 4.89 | $ | 0.16 | $ | 0.62 | $ | 0.78 | $ | (0.15 | ) | $ | – | $ | (0.15 | ) | $ | 5.52 | 16.16 | %(e) | $ | 23,649 | 1.47 | %(e)(f) | 1.53 | %(e)(f) | 6.17 | %(e)(f) | 68 | % | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.17 | 0.25 | (1.26 | ) | (1.01 | ) | – | (0.27 | ) | (0.27 | ) | 4.89 | (16.80 | )(e) | 20,621 | 1.45 | (e)(g) | 1.45 | (e)(g) | 4.47 | (e)(g) | 137 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 6.53 | 0.29 | (0.40 | ) | (0.11 | ) | (0.06 | ) | (0.19 | ) | (0.25 | ) | 6.17 | (1.81 | ) | 36,826 | 1.23 | 1.35 | 4.38 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.99 | 0.24 | (0.45 | ) | (0.21 | ) | (0.07 | ) | (0.18 | ) | (0.25 | ) | 6.53 | (3.01 | )(e) | 36,680 | 1.15 | (e) | 1.28 | (e) | 3.57 | (e) | 50 | |||||||||||||||||||||||||||||||||||||||||||||||
Five months ended 10/31/19 | 6.68 | 0.16 | 0.30 | 0.46 | (0.09 | ) | (0.06 | ) | (0.15 | ) | 6.99 | 6.99 | 48,921 | 1.15 | (f) | 1.32 | (f) | 5.66 | (f) | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/19 | 7.02 | 0.39 | (0.34 | ) | 0.05 | (0.18 | ) | (0.21 | ) | (0.39 | ) | 6.68 | 0.85 | 44,188 | 1.16 | 1.27 | 5.82 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/18 | 7.38 | 0.42 | (0.36 | ) | 0.06 | (0.40 | ) | (0.02 | ) | (0.42 | ) | 7.02 | 0.62 | 55,015 | 1.15 | 1.29 | 5.60 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 4.89 | 0.14 | 0.63 | 0.77 | (0.13 | ) | – | (0.13 | ) | 5.53 | 15.95 | 4,665 | 2.23 | (f) | 2.29 | (f) | 5.41 | (f) | 68 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.17 | 0.21 | (1.27 | ) | (1.06 | ) | – | (0.22 | ) | (0.22 | ) | 4.89 | (17.45 | ) | 4,473 | 2.21 | (g) | 2.21 | (g) | 3.71 | (g) | 137 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 6.53 | 0.24 | (0.40 | ) | (0.16 | ) | (0.05 | ) | (0.15 | ) | (0.20 | ) | 6.17 | (2.62 | ) | 7,568 | 2.02 | 2.10 | 3.59 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.99 | 0.18 | (0.45 | ) | (0.27 | ) | (0.05 | ) | (0.14 | ) | (0.19 | ) | 6.53 | (3.83 | ) | 11,457 | 2.00 | 2.04 | 2.72 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Five months ended 10/31/19 | 6.68 | 0.14 | 0.30 | 0.44 | (0.08 | ) | (0.05 | ) | (0.13 | ) | 6.99 | 6.61 | 15,332 | 2.00 | (f) | 2.08 | (f) | 4.81 | (f) | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/19 | 7.02 | 0.33 | (0.34 | ) | (0.01 | ) | (0.15 | ) | (0.18 | ) | (0.33 | ) | 6.68 | (0.14 | ) | 16,488 | 2.01 | 2.04 | 4.97 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/18 | 7.38 | 0.36 | (0.36 | ) | – | (0.34 | ) | (0.02 | ) | (0.36 | ) | 7.02 | (0.09 | ) | 19,932 | 2.00 | 2.05 | 4.75 | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 4.89 | 0.16 | 0.63 | 0.79 | (0.15 | ) | – | (0.15 | ) | 5.53 | 16.23 | 1,779 | 1.72 | (f) | 1.79 | (f) | 5.92 | (f) | 68 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.17 | 0.23 | (1.26 | ) | (1.03 | ) | – | (0.25 | ) | (0.25 | ) | 4.89 | (17.02 | ) | 1,472 | 1.71 | (g) | 1.71 | (g) | 4.21 | (g) | 137 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 6.53 | 0.27 | (0.40 | ) | (0.13 | ) | (0.05 | ) | (0.18 | ) | (0.23 | ) | 6.17 | (2.12 | ) | 1,854 | 1.53 | 1.60 | 4.08 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.99 | 0.21 | (0.45 | ) | (0.24 | ) | (0.06 | ) | (0.16 | ) | (0.22 | ) | 6.53 | (3.35 | ) | 2,195 | 1.50 | 1.54 | 3.22 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Five months ended 10/31/19 | 6.68 | 0.15 | 0.30 | 0.45 | (0.09 | ) | (0.05 | ) | (0.14 | ) | 6.99 | 6.84 | 2,588 | 1.50 | (f) | 1.58 | (f) | 5.31 | (f) | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/19 | 7.02 | 0.36 | (0.34 | ) | 0.02 | (0.17 | ) | (0.19 | ) | (0.36 | ) | 6.68 | 0.50 | 2,603 | 1.51 | 1.54 | 5.47 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/18 | 7.38 | 0.39 | (0.36 | ) | 0.03 | (0.37 | ) | (0.02 | ) | (0.39 | ) | 7.02 | 0.27 | 2,935 | 1.50 | 1.55 | 5.25 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 4.89 | 0.17 | 0.63 | 0.80 | (0.16 | ) | – | (0.16 | ) | 5.53 | 16.51 | 67,585 | 1.21 | (f) | 1.29 | (f) | 6.43 | (f) | 68 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.17 | 0.27 | (1.27 | ) | (1.00 | ) | – | (0.28 | ) | (0.28 | ) | 4.89 | (16.59 | ) | 48,253 | 1.21 | (g) | 1.21 | (g) | 4.71 | (g) | 137 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 6.54 | 0.31 | (0.41 | ) | (0.10 | ) | (0.07 | ) | (0.20 | ) | (0.27 | ) | 6.17 | (1.75 | ) | 92,706 | 1.01 | 1.10 | 4.60 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 7.00 | 0.25 | (0.45 | ) | (0.20 | ) | (0.07 | ) | (0.19 | ) | (0.26 | ) | 6.54 | (2.80 | ) | 92,205 | 0.95 | 1.04 | 3.77 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Five months ended 10/31/19 | 6.68 | 0.17 | 0.31 | 0.48 | (0.10 | ) | (0.06 | ) | (0.16 | ) | 7.00 | 7.24 | 162,754 | 0.95 | (f) | 1.08 | (f) | 5.86 | (f) | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/19 | 7.03 | 0.40 | (0.35 | ) | 0.05 | (0.19 | ) | (0.21 | ) | (0.40 | ) | 6.68 | 0.91 | 143,684 | 0.96 | 1.03 | 6.02 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/18 | 7.38 | 0.44 | (0.35 | ) | 0.09 | (0.41 | ) | (0.03 | ) | (0.44 | ) | 7.03 | 0.96 | 162,875 | 0.95 | 1.04 | 5.80 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 4.89 | 0.17 | 0.63 | 0.80 | (0.16 | ) | – | (0.16 | ) | 5.53 | 16.58 | 8 | 1.10 | (f) | 1.13 | (f) | 6.54 | (f) | 68 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.17 | 0.27 | (1.26 | ) | (0.99 | ) | – | (0.29 | ) | (0.29 | ) | 4.89 | (16.47 | ) | 7 | 1.05 | (g) | 1.05 | (g) | 4.87 | (g) | 137 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 6.53 | 0.31 | (0.40 | ) | (0.09 | ) | (0.06 | ) | (0.21 | ) | (0.27 | ) | 6.17 | (1.54 | ) | 9 | 0.94 | 0.99 | 4.67 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.99 | 0.25 | (0.45 | ) | (0.20 | ) | (0.07 | ) | (0.19 | ) | (0.26 | ) | 6.53 | (2.74 | ) | 10 | 0.90 | 0.93 | 3.82 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Five months ended 10/31/19 | 6.67 | 0.17 | 0.31 | 0.48 | (0.10 | ) | (0.06 | ) | (0.16 | ) | 6.99 | 7.27 | 11 | 0.90 | (f) | 1.00 | (f) | 5.91 | (f) | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 05/31/19(h) | 6.63 | 0.00 | (i) | 0.04 | 0.04 | (0.00 | )(i) | (0.00 | )(i) | (0.00 | )(i) | 6.67 | 0.64 | 10 | 0.85 | (f) | 0.85 | (f) | 6.13 | (f) | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 4.89 | 0.17 | 0.62 | 0.79 | (0.16 | ) | – | (0.16 | ) | 5.52 | 16.37 | 2,914 | 1.10 | (f) | 1.13 | (f) | 6.54 | (f) | 68 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 6.17 | 0.27 | (1.26 | ) | (0.99 | ) | – | (0.29 | ) | (0.29 | ) | 4.89 | (16.47 | ) | 2,586 | 1.05 | (g) | 1.05 | (g) | 4.87 | (g) | 137 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 6.53 | 0.31 | (0.40 | ) | (0.09 | ) | (0.06 | ) | (0.21 | ) | (0.27 | ) | 6.17 | (1.50 | ) | 4,399 | 0.91 | 0.99 | 4.70 | 107 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 6.99 | 0.26 | (0.45 | ) | (0.19 | ) | (0.07 | ) | (0.20 | ) | (0.27 | ) | 6.53 | (2.72 | ) | 4,222 | 0.85 | 0.93 | 3.87 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Five months ended 10/31/19 | 6.67 | 0.17 | 0.31 | 0.48 | (0.10 | ) | (0.06 | ) | (0.16 | ) | 6.99 | 7.29 | 22,887 | 0.85 | (f) | 0.95 | (f) | 5.96 | (f) | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/19 | 7.02 | 0.41 | (0.35 | ) | 0.06 | (0.19 | ) | (0.22 | ) | (0.41 | ) | 6.67 | 1.01 | 8,604 | 0.86 | 0.91 | 6.12 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 05/31/18 | 7.37 | 0.44 | (0.35 | ) | 0.09 | (0.41 | ) | (0.03 | ) | (0.44 | ) | 7.02 | 1.05 | 7,601 | 0.85 | 0.87 | 5.90 | 48 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include indirect expenses from affiliated fund fees and expenses of 0.00% for the five months ended October 31, 2019 and the years ended May 31, 2019 and 2018. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for six months ended April 30, 2023 and for the years ended October 31, 2022 and 2020. |
(f) | Annualized. |
(g) | Ratios include interest, facilities and maintenance fees of 0.09% for the year ended October 31, 2022. |
(h) | For the period from after the close of business on May 24, 2019 (inception of offering) to May 31, 2019. |
(i) | Amount represents less than 0.005%. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Emerging Markets Local Debt Fund |
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Emerging Markets Local Debt Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and
17 | Invesco Emerging Markets Local Debt Fund |
unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on 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 exchange of the two
18 | Invesco Emerging Markets Local Debt Fund |
currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
K. | Call Options Purchased and Written – The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written. |
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
L. | 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.
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 or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund
19 | Invesco Emerging Markets Local Debt Fund |
would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of April 30, 2023, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
N. | LIBOR Transition Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates will no longer be published after June 2023. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that will replace LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Funds may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
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. |
Q. | Other Risks - The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate* | |||
| ||||
First $500 million | 0.700% | |||
| ||||
Next $500 million | 0.650% | |||
| ||||
Next $4 billion | 0.600% | |||
| ||||
Over $5 billion | 0.580% | |||
|
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.69%.
20 | Invesco Emerging Markets Local Debt 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). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
Effective March 1, 2023 through at least February 29, 2024, the Adviser has contractually agreed to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.20%, 1.95%, 1.45%, 0.95%, 0.95%, and 0.95%, respectively, of the Fund’s average daily net assets. Prior to March 1, 2023, the Adviser has contractually agreed, through February 28, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.50%, 2.25%, 1.75%, 1.25%, 1.25%, and 1.25%, respectively, of the Fund’s average daily net assets (the “expense limits”).In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waivers and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expenses on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate February 29, 2024. 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, 2025, 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, 2023, the Adviser waived advisory fees of $2,730 and reimbursed class level expenses of $5,347, $1,062, $443, $18,783, $1 and $120 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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $1,557 in front-end sales commissions from the sale of Class A shares and $0 and $453 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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.
21 | Invesco Emerging Markets Local Debt Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | $ | – | $ | 76,601,846 | $– | $ | 76,601,846 | |||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 972,503 | – | 972,503 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 19,707,063 | – | – | 19,707,063 | ||||||||||||
| ||||||||||||||||
Options Purchased | – | 211,831 | – | 211,831 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 19,707,063 | 77,786,180 | – | 97,493,243 | ||||||||||||
| ||||||||||||||||
Other Investments – Assets* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 1,491,469 | – | 1,491,469 | ||||||||||||
| ||||||||||||||||
Swap Agreements | – | 283,013 | – | 283,013 | ||||||||||||
| ||||||||||||||||
– | 1,774,482 | – | 1,774,482 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (1,155,764 | ) | – | (1,155,764 | ) | ||||||||||
| ||||||||||||||||
Options Written | – | (212,420 | ) | – | (212,420 | ) | ||||||||||
| ||||||||||||||||
Swap Agreements | – | (365,651 | ) | – | (365,651 | ) | ||||||||||
| ||||||||||||||||
– | (1,733,835 | ) | – | (1,733,835 | ) | |||||||||||
| ||||||||||||||||
Total Other Investments | – | 40,647 | – | 40,647 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 19,707,063 | $ | 77,826,827 | $– | $ | 97,533,890 | |||||||||
|
* | Forward foreign currency contracts and swap agreements are valued at unrealized appreciation (depreciation). Options written are shown at value. |
NOTE 4–Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
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, 2023:
Value | ||||||||||||
Derivative Assets | Currency Risk | Interest Rate Risk | Total | |||||||||
| ||||||||||||
Unrealized appreciation on swap agreements – Centrally Cleared(a) | $ | – | $ | 283,013 | $ | 283,013 | ||||||
| ||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | 1,491,469 | – | 1,491,469 | |||||||||
| ||||||||||||
Options purchased, at value – OTC(b) | 211,831 | – | 211,831 | |||||||||
| ||||||||||||
Total Derivative Assets | 1,703,300 | 283,013 | 1,986,313 | |||||||||
| ||||||||||||
Derivatives not subject to master netting agreements | – | (283,013 | ) | (283,013 | ) | |||||||
| ||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 1,703,300 | $ | – | $ | 1,703,300 | ||||||
|
Value | ||||||||||||
Derivative Liabilities | Currency Risk | Interest Rate Risk | Total | |||||||||
| ||||||||||||
Unrealized depreciation on swap agreements – Centrally Cleared(a) | $ | – | $ | (365,651 | ) | $ | (365,651 | ) | ||||
| ||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | (1,155,764 | ) | – | (1,155,764 | ) | |||||||
| ||||||||||||
Options written, at value – OTC | (184,840 | ) | (27,580 | ) | (212,420 | ) | ||||||
| ||||||||||||
Total Derivative Liabilities | (1,340,604 | ) | (393,231 | ) | (1,733,835 | ) | ||||||
| ||||||||||||
Derivatives not subject to master netting agreements | – | 365,651 | 365,651 | |||||||||
| ||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (1,340,604 | ) | $ | (27,580 | ) | $ | (1,368,184 | ) | |||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
(b) | Options purchased, at value as reported in the Schedule of Investments. |
22 | Invesco Emerging Markets Local Debt Fund |
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, 2023.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Options Purchased | Total Assets | Forward Foreign Currency Contracts | Options Written | Total Liabilities | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Bank of America, N.A. | $ | 58,791 | $ | 78,958 | $ | 137,749 | $ | (183,654 | ) | $ | (49,291 | ) | $ | (232,945 | ) | $ | (95,196 | ) | $– | $ | – | $ | (95,196 | ) | ||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Barclays Bank PLC | 1,761 | – | 1,761 | – | – | – | 1,761 | – | – | 1,761 | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
BNP Paribas S.A. | 1,360 | – | 1,360 | (5,963 | ) | – | (5,963 | ) | (4,603 | ) | – | – | (4,603 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Citibank, N.A. | 200,956 | – | 200,956 | (7,561 | ) | – | (7,561 | ) | 193,395 | – | (193,395 | ) | – | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Deutsche Bank AG | 303,439 | – | 303,439 | (50,362 | ) | – | (50,362 | ) | 253,077 | – | – | 253,077 | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Goldman Sachs International | 44,912 | – | 44,912 | (33,665 | ) | (10,626 | ) | (44,291 | ) | 621 | – | – | 621 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
HSBC Bank USA | 6,313 | – | 6,313 | (110,599 | ) | – | (110,599 | ) | (104,286 | ) | – | – | (104,286 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 610,187 | 79,591 | 689,778 | (550,951 | ) | (63,719 | ) | (614,670 | ) | 75,108 | – | (75,108 | ) | – | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Morgan Stanley and Co. International PLC | 221,798 | – | 221,798 | (150,043 | ) | (54,963 | ) | (205,006 | ) | 16,792 | – | – | 16,792 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Royal Bank of Canada | 386 | – | 386 | – | – | – | 386 | – | – | 386 | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Standard Chartered Bank PLC | 41,566 | 53,282 | 94,848 | (62,966 | ) | (33,821 | ) | (96,787 | ) | (1,939 | ) | – | – | (1,939 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,491,469 | $ | 211,831 | $ | 1,703,300 | $ | (1,155,764 | ) | $ | (212,420 | ) | $ | (1,368,184 | ) | $ | 335,116 | $– | $ | (268,503 | ) | $ | 66,613 | |||||||||||||||||
|
Effect of Derivative Investments for the six months ended April 30, 2023
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 | ||||||||||||
Currency Risk | Interest Rate Risk | Total | ||||||||||
| ||||||||||||
Realized Gain (Loss): | ||||||||||||
Forward foreign currency contracts | $ | 861,852 | $ | - | $ | 861,852 | ||||||
| ||||||||||||
Futures contracts | - | (43,072 | ) | (43,072 | ) | |||||||
| ||||||||||||
Options purchased(a) | 439,390 | (103,119 | ) | 336,271 | ||||||||
| ||||||||||||
Options written | 456,912 | 54,593 | 511,505 | |||||||||
| ||||||||||||
Swap agreements | - | (45,460 | ) | (45,460 | ) | |||||||
| ||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||
Forward foreign currency contracts | (184,105 | ) | - | (184,105 | ) | |||||||
| ||||||||||||
Options purchased(a) | (84,801 | ) | (42,375 | ) | (127,176 | ) | ||||||
| ||||||||||||
Options written | 123,355 | 22,516 | 145,871 | |||||||||
| ||||||||||||
Swap agreements | - | (163,611 | ) | (163,611 | ) | |||||||
| ||||||||||||
Total | $ | 1,612,603 | $ | (320,528 | ) | $ | 1,292,075 | |||||
|
(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 | Swaptions Purchased | Foreign Currency Options Purchased | Swaptions Written | Foreign Currency Options Written | Swap Agreements | |||||||||||||||||
| ||||||||||||||||||||||
Average notional value | $152,847,857 | $ | 14,663,606 | $ | 12,860,454 | $ | 6,821,202 | $ | 30,331,500 | $ | 52,864,606 | |||||||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,923.
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
23 | Invesco Emerging Markets Local Debt Fund |
such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||||
| ||||||||||||||||
Not subject to expiration | $ | 6,335,769 | $ | 4,791,416 | $ | 11,127,185 | ||||||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $60,160,969 and $52,548,595, 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 | $ | 4,026,984 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (8,778,850 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (4,751,866 | ) | |
|
Cost of investments for tax purposes is $102,426,472.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
|
|
|
| |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 371,000 | $ | 1,985,720 | 462,981 | $ | 2,654,156 | ||||||||||
| ||||||||||||||||
Class C | 54,569 | 287,972 | 105,233 | 602,616 | ||||||||||||
| ||||||||||||||||
Class R | 29,353 | 159,516 | 49,259 | 273,219 | ||||||||||||
| ||||||||||||||||
Class Y | 5,656,575 | 30,188,938 | 6,135,961 | 35,757,530 | ||||||||||||
| ||||||||||||||||
Class R6 | 96,506 | 516,164 | 265,007 | 1,525,372 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 90,249 | 485,510 | 164,172 | 905,430 | ||||||||||||
| ||||||||||||||||
Class C | 17,544 | 94,311 | 32,739 | 180,693 | ||||||||||||
| ||||||||||||||||
Class R | 8,493 | 45,716 | 13,643 | 74,941 | ||||||||||||
| ||||||||||||||||
Class Y | 268,143 | 1,445,780 | 453,036 | 2,503,232 | ||||||||||||
| ||||||||||||||||
Class R6 | 11,189 | 60,180 | 24,154 | 134,005 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 30,509 | 166,005 | 69,125 | 394,522 | ||||||||||||
| ||||||||||||||||
Class C | (30,509 | ) | (166,005 | ) | (69,109 | ) | (394,522 | ) | ||||||||
|
24 | Invesco Emerging Markets Local Debt Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
|
|
|
| |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (429,995 | ) | $ | (2,272,136 | ) | (2,444,400 | ) | $ | (13,992,615 | ) | ||||||
| ||||||||||||||||
Class C | (112,216 | ) | (593,669 | ) | (380,496 | ) | (2,168,903 | ) | ||||||||
| ||||||||||||||||
Class R | (17,013 | ) | (90,581 | ) | (62,179 | ) | (347,960 | ) | ||||||||
| ||||||||||||||||
Class Y | (3,565,783 | ) | (18,992,508 | ) | (11,736,637 | ) | (67,604,929 | ) | ||||||||
| ||||||||||||||||
Class R6 | (109,188 | ) | (577,746 | ) | (472,971 | ) | (2,707,281 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | 2,369,426 | $ | 12,743,167 | (7,390,482 | ) | $ | (42,210,494 | ) | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 63% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
25 | Invesco Emerging Markets Local Debt 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, 2022 through April 30, 2023.
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 expenses) | Annualized | ||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During | Ending Account Value (04/30/23) | Expenses Paid During Period2 | ||||||||
Class A | $1,000.00 | $1,161.60 | $ 7.88 | $1,017.50 | $ 7.35 | 1.47% | ||||||
Class C | 1,000.00 | 1,159.50 | 11.94 | 1,013.74 | 11.13 | 2.23 | ||||||
Class R | 1,000.00 | 1,162.30 | 9.22 | 1,016.27 | 8.60 | 1.72 | ||||||
Class Y | 1,000.00 | 1,165.10 | 6.50 | 1,018.79 | 6.06 | 1.21 | ||||||
Class R5 | 1,000.00 | 1,165.80 | 5.91 | 1,019.34 | 5.51 | 1.10 | ||||||
Class R6 | 1,000.00 | 1,163.70 | 5.90 | 1,019.34 | 5.51 | 1.10 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
26 | Invesco Emerging Markets Local Debt 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-EMLD-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Emerging Markets Select Equity Fund
Nasdaq:
A: IEMAX ∎ C: IEMCX ∎ R: IEMRX ∎ Y: IEMYX ∎ R5: IEMIX ∎ R6: EMEFX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
8 | Financial Statements | |
11 | Financial Highlights | |
12 | Notes to Financial Statements | |
18 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
| ||||
Fund vs. Indexes | ||||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 20.62 | % | ||
Class C Shares | 20.17 | |||
Class R Shares | 20.50 | |||
Class Y Shares | 20.80 | |||
Class R5 Shares | 20.80 | |||
Class R6 Shares | 21.01 | |||
MSCI EAFE Index▼ (Broad Market Index) | 24.19 | |||
MSCI Emerging Markets Index▼ (Style-Specific Index) | 16.36 | |||
Lipper Emerging Market Funds Index∎ (Peer Group Index) | 17.90 | |||
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. The MSCI Emerging Markets IndexSM 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. The Lipper 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 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 visiting invesco.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, visit blog.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 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (5/31/11) | -2.28 | % | ||
10 Years | -0.28 | |||
5 Years | -5.57 | |||
1 Year | -8.00 | |||
Class C Shares | ||||
Inception (5/31/11) | -2.31 | % | ||
10 Years | -0.31 | |||
5 Years | -5.22 | |||
1 Year | -4.33 | |||
Class R Shares | ||||
Inception (5/31/11) | -2.08 | % | ||
10 Years | 0.03 | |||
5 Years | -4.72 | |||
1 Year | -2.88 | |||
Class Y Shares | ||||
Inception (5/31/11) | -1.59 | % | ||
10 Years | 0.54 | |||
5 Years | -4.26 | |||
1 Year | -2.41 | |||
Class R5 Shares | ||||
Inception (5/31/11) | -1.59 | % | ||
10 Years | 0.53 | |||
5 Years | -4.26 | |||
1 Year | -2.41 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 0.35 | % | ||
10 Years | 0.53 | |||
5 Years | -4.23 | |||
1 Year | -2.27 |
The performance data quoted represent past performance and cannot guarantee 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.
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 Emerging Markets Select Equity Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Emerging Markets Select Equity Fund |
April 30, 2023
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–99.87% |
| |||||||
Australia–1.05% | ||||||||
Glencore PLC | 62,959 | $ | 371,495 | |||||
| ||||||||
Brazil–7.27% | ||||||||
Ambev S.A. | 272,400 | 773,324 | ||||||
| ||||||||
B3 S.A. - Brasil, Bolsa, Balcao | 64,600 | 151,275 | ||||||
| ||||||||
Banco Bradesco S.A., Preference Shares | 213,300 | 592,286 | ||||||
| ||||||||
NU Holdings Ltd., Class A(a) | 77,765 | 401,267 | ||||||
| ||||||||
Vale S.A., ADR | 21,027 | 302,999 | ||||||
| ||||||||
WEG S.A. | 42,900 | 353,673 | ||||||
| ||||||||
2,574,824 | ||||||||
| ||||||||
Chile–0.59% | ||||||||
Banco Santander Chile | 4,383,708 | 209,614 | ||||||
| ||||||||
China–27.08% | ||||||||
BeiGene Ltd., ADR(a)(b) | 1,445 | 368,417 | ||||||
| ||||||||
H World Group Ltd. | 2,200 | 10,249 | ||||||
| ||||||||
H World Group Ltd., ADR(b) | 30,558 | 1,433,170 | ||||||
| ||||||||
Meituan, B Shares(a)(c) | 16,500 | 281,593 | ||||||
| ||||||||
NetEase, Inc., ADR(b) | 13,212 | 1,177,586 | ||||||
| ||||||||
New Horizon Health Ltd.(a)(c) | 14,000 | 50,289 | ||||||
| ||||||||
PDD Holdings, Inc., ADR(a) | 3,954 | 269,465 | ||||||
| ||||||||
Shenzhou International Group Holdings Ltd. | 33,000 | 316,645 | ||||||
| ||||||||
Silergy Corp. | 10,000 | 159,252 | ||||||
| ||||||||
Tencent Holdings Ltd. | 27,500 | 1,216,524 | ||||||
| ||||||||
Wuxi Biologics Cayman, Inc.(a)(c) | 55,000 | 329,002 | ||||||
| ||||||||
Yum China Holdings, Inc. | 38,538 | 2,357,755 | ||||||
| ||||||||
Zai Lab Ltd., ADR(a) | 4,830 | 168,953 | ||||||
| ||||||||
ZTO Express (Cayman), Inc. | 52,500 | 1,448,484 | ||||||
| ||||||||
9,587,384 | ||||||||
| ||||||||
France–6.59% | ||||||||
L’Oreal S.A. | 58 | 27,682 | ||||||
| ||||||||
Pernod Ricard S.A. | 8,086 | 1,867,870 | ||||||
| ||||||||
TotalEnergies SE | 6,832 | 435,531 | ||||||
| ||||||||
2,331,083 | ||||||||
| ||||||||
Hong Kong–2.29% | ||||||||
AIA Group Ltd. | 39,000 | 425,536 | ||||||
Hongkong Land Holdings Ltd. | 86,700 | 385,073 | ||||||
| ||||||||
810,609 | ||||||||
| ||||||||
India–18.89% | ||||||||
Havells India Ltd. | 14,606 | 219,959 | ||||||
| ||||||||
Housing Development Finance Corp. Ltd. | 76,381 | 2,598,665 | ||||||
| ||||||||
Kotak Mahindra Bank Ltd. | 84,795 | 2,017,788 | ||||||
| ||||||||
Oberoi Realty Ltd. | 38,407 | 430,584 | ||||||
| ||||||||
Tata Consultancy Services Ltd. | 35,983 | 1,420,802 | ||||||
| ||||||||
6,687,798 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Indonesia–0.77% | ||||||||
PT Bank Central Asia Tbk | 438,500 | 271,032 | ||||||
| ||||||||
Italy–1.79% | ||||||||
PRADA S.p.A. | 86,300 | $ | 634,382 | |||||
| ||||||||
Japan–0.38% | ||||||||
Daiichi Sankyo Co. Ltd. | 3,900 | 133,748 | ||||||
| ||||||||
Mexico–10.68% | ||||||||
America Movil S.A.B. de C.V., ADR | 32,712 | 702,981 | ||||||
| ||||||||
Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 52,500 | 510,765 | ||||||
| ||||||||
Grupo Mexico S.A.B. de C.V., Class B | 367,500 | 1,807,095 | ||||||
| ||||||||
Wal-Mart de Mexico S.A.B. de C.V., Series V | 188,500 | 759,997 | ||||||
| ||||||||
3,780,838 | ||||||||
| ||||||||
Peru–0.95% | ||||||||
Credicorp Ltd. | 2,485 | 336,668 | ||||||
| ||||||||
Philippines–1.10% | ||||||||
SM Investments Corp. | 24,140 | 390,315 | ||||||
| ||||||||
Russia–0.00% | ||||||||
Sberbank of Russia PJSC(a)(d) | 532,000 | 0 | ||||||
| ||||||||
South Africa–0.58% | ||||||||
FirstRand Ltd. | 58,521 | 206,258 | ||||||
| ||||||||
South Korea–7.27% | ||||||||
LG Chem Ltd. | 2,072 | 1,155,451 | ||||||
| ||||||||
LG H&H Co. Ltd. | 242 | 112,647 | ||||||
| ||||||||
Samsung Biologics Co. Ltd.(a)(c) | 998 | 584,162 | ||||||
| ||||||||
Samsung Electronics Co. Ltd. | 14,633 | 720,944 | ||||||
| ||||||||
2,573,204 | ||||||||
| ||||||||
Switzerland–3.30% | ||||||||
Cie Financiere Richemont S.A. | 7,059 | 1,166,450 | ||||||
| ||||||||
Taiwan–8.23% | ||||||||
MediaTek, Inc. | 2,000 | 43,465 | ||||||
| ||||||||
Taiwan Semiconductor Manufacturing | 175,000 | 2,869,912 | ||||||
| ||||||||
2,913,377 | ||||||||
| ||||||||
United Arab Emirates–0.76% | ||||||||
Americana Restaurants International PLC | 251,085 | 267,966 | ||||||
| ||||||||
United Kingdom–0.30% | ||||||||
AstraZeneca PLC, ADR | 1,437 | 105,217 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests (Cost $32,407,468) |
| 35,352,262 | ||||||
| ||||||||
Money Market Funds–0.57% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(e)(f) | 70,752 | 70,752 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(e)(f) | 50,532 | 50,547 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(e)(f) | 80,859 | 80,859 | ||||||
| ||||||||
Total Money Market Funds |
| 202,158 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES |
| 35,554,420 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Emerging Markets Select Equity Fund |
Shares | Value | |||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–8.36% |
| |||||||
Invesco Private Government Fund, | 828,956 | $ | 828,956 | |||||
| ||||||||
Invesco Private Prime Fund, | 2,131,603 | 2,131,603 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 2,960,559 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–108.80% |
| 38,514,979 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(8.80)% |
| (3,116,275 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 35,398,704 | ||||||
|
Investment Abbreviations:
ADR - American Depositary Receipt
CPO - Certificates of Ordinary Participation
Notes to Schedule of Investments:
(a) | Non-income producing security. |
(b) | All or a portion of this security was out on loan at April 30, 2023. |
(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, 2023 was $1,245,046, which represented 3.52% of the Fund’s Net Assets. |
(d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(e) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 354,701 | $ | 6,139,601 | $ | (6,423,550 | ) | $ | - | $ | - | $ | 70,752 | $ | 12,310 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 248,560 | 4,385,429 | (4,583,397 | ) | (18 | ) | (27 | ) | 50,547 | 8,704 | |||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 405,372 | 7,016,687 | (7,341,200 | ) | - | - | 80,859 | 13,448 | |||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 386,334 | 5,274,778 | (4,832,156 | ) | - | - | 828,956 | 10,102* | |||||||||||||||||||||||||||
Invesco Private Prime Fund | 993,173 | 12,849,269 | (11,710,256 | ) | (8 | ) | (575 | ) | 2,131,603 | 27,393* | |||||||||||||||||||||||||
Total | $ | 2,388,140 | $ | 35,665,764 | $ | (34,890,559 | ) | $ | (26 | ) | $ | (602 | ) | $ | 3,162,717 | $ | 71,957 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(f) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(g) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Emerging Markets Select Equity Fund |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2023
Financials | 20.37 | % | |||
Consumer Discretionary | 19.03 | ||||
Information Technology | 14.73 | ||||
Consumer Staples | 11.45 | ||||
Materials | 10.27 | ||||
Communication Services | 8.75 | ||||
Industrials | 6.82 | ||||
Health Care | 4.92 | ||||
Real Estate | 2.30 | ||||
Other Sectors, Each Less than 2% of Net Assets | 1.23 | ||||
Money Market Funds Plus Other Assets Less Liabilities | 0.13 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Emerging Markets Select Equity Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 35,352,262 | ||
| ||||
Investments in affiliated money market funds, at value | 3,162,717 | |||
| ||||
Foreign currencies, at value (Cost $63,937) | 59,780 | |||
| ||||
Receivable for: | ||||
Investments sold | 476,245 | |||
| ||||
Fund shares sold | 4,655 | |||
| ||||
Dividends | 26,088 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 22,026 | |||
| ||||
Other assets | 69,904 | |||
| ||||
Total assets | 39,173,677 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 674,614 | |||
| ||||
Fund shares reacquired | 63,036 | |||
| ||||
Amount due custodian | 499 | |||
| ||||
Collateral upon return of securities loaned | 2,960,559 | |||
| ||||
Accrued fees to affiliates | 22,422 | |||
| ||||
Accrued other operating expenses | 30,467 | |||
| ||||
Trustee deferred compensation and retirement plans | 23,376 | |||
| ||||
Total liabilities | 3,774,973 | |||
| ||||
Net assets applicable to shares outstanding | $ | 35,398,704 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 54,798,480 | ||
| ||||
Distributable earnings (loss) | (19,399,776 | ) | ||
| ||||
$ | 35,398,704 | |||
|
Net Assets: | ||||
Class A | $ | 18,534,182 | ||
| ||||
Class C | $ | 2,271,922 | ||
| ||||
Class R | $ | 2,390,598 | ||
| ||||
Class Y | $ | 9,962,093 | ||
| ||||
Class R5 | $ | 1,642,273 | ||
| ||||
Class R6 | $ | 597,636 | ||
|
Shares outstanding, no par value, with an unlimited number of shares authorized:
Class A | 2,730,562 | |||
| ||||
Class C | 348,951 | |||
| ||||
Class R | 356,354 | |||
| ||||
Class Y | 1,463,193 | |||
| ||||
Class R5 | 241,177 | |||
| ||||
Class R6 | 87,819 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 6.79 | ||
| ||||
Maximum offering price per share | $ | 7.19 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 6.51 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 6.71 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 6.81 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 6.81 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 6.81 | ||
|
* | At April 30, 2023, securities with an aggregate value of $2,949,143 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Emerging Markets Select Equity Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $52,003) | $ | 381,576 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $1,941) | 36,403 | |||
| ||||
Total investment income | 417,979 | |||
| ||||
Expenses: | ||||
Advisory fees | 191,191 | |||
| ||||
Administrative services fees | 2,948 | |||
| ||||
Custodian fees | 11,771 | |||
| ||||
Distribution fees: | ||||
Class A | 26,584 | |||
| ||||
Class C | 14,735 | |||
| ||||
Class R | 7,367 | |||
| ||||
Transfer agent fees – A, C, R and Y | 44,895 | |||
| ||||
Transfer agent fees – R5 | 230 | |||
| ||||
Transfer agent fees – R6 | 94 | |||
| ||||
Trustees’ and officers’ fees and benefits | 6,405 | |||
| ||||
Registration and filing fees | 38,338 | |||
| ||||
Reports to shareholders | 9,294 | |||
| ||||
Professional services fees | 12,786 | |||
| ||||
Other | 3,794 | |||
| ||||
Total expenses | 370,432 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (101,726 | ) | ||
| ||||
Net expenses | 268,706 | |||
| ||||
Net investment income | 149,273 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities (net of foreign taxes of $3,661) | (9,468,872 | ) | ||
| ||||
Affiliated investment securities | (602 | ) | ||
| ||||
Foreign currencies | (61,344 | ) | ||
| ||||
Forward foreign currency contracts | (79 | ) | ||
| ||||
(9,530,897 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 16,954,654 | |||
| ||||
Affiliated investment securities | (26 | ) | ||
| ||||
Foreign currencies | 392 | |||
| ||||
16,955,020 | ||||
| ||||
Net realized and unrealized gain | 7,424,123 | |||
| ||||
Net increase in net assets resulting from operations | $ | 7,573,396 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Emerging Markets Select Equity Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, 2023 | October 31, 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 149,273 | $ | 545,293 | ||||
| ||||||||
Net realized gain (loss) | (9,530,897 | ) | (12,112,630 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 16,955,020 | (16,023,232 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 7,573,396 | (27,590,569 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (221,962 | ) | (1,347,566 | ) | ||||
| ||||||||
Class C | (1,420 | ) | (149,032 | ) | ||||
| ||||||||
Class R | (22,047 | ) | (137,567 | ) | ||||
| ||||||||
Class Y | (167,911 | ) | (818,543 | ) | ||||
| ||||||||
Class R5 | (21,846 | ) | (80,790 | ) | ||||
| ||||||||
Class R6 | (8,926 | ) | (57,289 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (444,112 | ) | (2,590,787 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (4,280,467 | ) | (5,657,746 | ) | ||||
| ||||||||
Class C | (1,005,864 | ) | (764,650 | ) | ||||
| ||||||||
Class R | (927,969 | ) | 379,273 | |||||
| ||||||||
Class Y | (2,990,582 | ) | (10,476,582 | ) | ||||
| ||||||||
Class R5 | 21,756 | 80,442 | ||||||
| ||||||||
Class R6 | (262,586 | ) | (165,209 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (9,445,712 | ) | (16,604,472 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (2,316,428 | ) | (46,785,828 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 37,715,132 | 84,500,960 | ||||||
| ||||||||
End of period | $ | 35,398,704 | $ | 37,715,132 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Emerging Markets Select Equity Fund |
(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 net assets | 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 04/30/23 | $ | 5.69 | $ | 0.02 | $ | 1.15 | $ | 1.17 | $ | (0.07 | ) | $ | – | $ | (0.07 | ) | $ | 6.79 | 20.62 | % | $ | 18,534 | 1.33 | %(d) | 1.83 | %(d) | 0.71 | %(d) | 98 | % | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.68 | 0.07 | (3.73 | ) | (3.66 | ) | (0.07 | ) | (0.26 | ) | (0.33 | ) | 5.69 | (38.99 | ) | 19,148 | 1.33 | 1.83 | 0.93 | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.58 | 0.10 | (0.94 | ) | (0.84 | ) | (0.06 | ) | – | (0.06 | ) | 9.68 | (8.07 | ) | 40,389 | 1.33 | 1.67 | 0.84 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.10 | 0.04 | 1.67 | 1.71 | (0.23 | ) | – | (0.23 | ) | 10.58 | 19.11 | 39,446 | 1.33 | 1.72 | 0.45 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 7.67 | 0.23 | (e) | 1.60 | 1.83 | (0.03 | ) | (0.37 | ) | (0.40 | ) | 9.10 | 25.14 | 34,665 | 1.33 | 1.89 | 2.81 | (e) | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.42 | (0.00 | ) | 1.09 | 1.09 | (0.00 | ) | – | (0.00 | ) | 6.51 | 20.17 | 2,272 | 2.08 | (d) | 2.58 | (d) | (0.04 | )(d) | 98 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.23 | 0.01 | (3.56 | ) | (3.55 | ) | – | (0.26 | ) | (0.26 | ) | 5.42 | (39.43 | ) | 2,731 | 2.08 | 2.58 | 0.18 | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.16 | 0.01 | (0.90 | ) | (0.89 | ) | (0.04 | ) | – | (0.04 | ) | 9.23 | (8.81 | ) | 5,605 | 2.08 | 2.42 | 0.09 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 8.74 | (0.03 | ) | 1.60 | 1.57 | (0.15 | ) | – | (0.15 | ) | 10.16 | 18.17 | 6,882 | 2.08 | 2.47 | (0.30 | ) | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 7.41 | 0.16 | (e) | 1.54 | 1.70 | – | (0.37 | ) | (0.37 | ) | 8.74 | 24.09 | 6,550 | 2.08 | 2.64 | 2.06 | (e) | 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.61 | 0.01 | 1.14 | 1.15 | (0.05 | ) | – | (0.05 | ) | 6.71 | 20.50 | 2,391 | 1.58 | (d) | 2.08 | (d) | 0.46 | (d) | 98 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.55 | 0.05 | (3.68 | ) | (3.63 | ) | (0.05 | ) | (0.26 | ) | (0.31 | ) | 5.61 | (39.15 | ) | 2,794 | 1.58 | 2.08 | 0.68 | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.46 | 0.07 | (0.93 | ) | (0.86 | ) | (0.05 | ) | – | (0.05 | ) | 9.55 | (8.30 | ) | 4,292 | 1.58 | 1.92 | 0.59 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 8.99 | 0.02 | 1.65 | 1.67 | (0.20 | ) | – | (0.20 | ) | 10.46 | 18.90 | 3,514 | 1.58 | 1.97 | 0.20 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 7.59 | 0.21 | (e) | 1.57 | 1.78 | (0.01 | ) | (0.37 | ) | (0.38 | ) | 8.99 | 24.62 | 2,795 | 1.58 | 2.14 | 2.56 | (e) | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.72 | 0.03 | 1.15 | 1.18 | (0.09 | ) | – | (0.09 | ) | 6.81 | 20.80 | 9,962 | 1.08 | (d) | 1.58 | (d) | 0.96 | (d) | 98 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.73 | 0.09 | (3.75 | ) | (3.66 | ) | (0.09 | ) | (0.26 | ) | (0.35 | ) | 5.72 | (38.83 | ) | 10,951 | 1.08 | 1.58 | 1.18 | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.62 | 0.13 | (0.96 | ) | (0.83 | ) | (0.06 | ) | – | (0.06 | ) | 9.73 | (7.91 | ) | 30,487 | 1.08 | 1.42 | 1.09 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.13 | 0.07 | 1.67 | 1.74 | (0.25 | ) | – | (0.25 | ) | 10.62 | 19.48 | 34,678 | 1.08 | 1.47 | 0.70 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 7.71 | 0.26 | (e) | 1.59 | 1.85 | (0.06 | ) | (0.37 | ) | (0.43 | ) | 9.13 | 25.27 | 23,550 | 1.08 | 1.64 | 3.06 | (e) | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.72 | 0.03 | 1.15 | 1.18 | (0.09 | ) | – | (0.09 | ) | 6.81 | 20.80 | 1,642 | 1.08 | (d) | 1.38 | (d) | 0.96 | (d) | 98 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.73 | 0.09 | (3.75 | ) | (3.66 | ) | (0.09 | ) | (0.26 | ) | (0.35 | ) | 5.72 | (38.83 | ) | 1,359 | 1.08 | 1.37 | 1.18 | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.62 | 0.13 | (0.96 | ) | (0.83 | ) | (0.06 | ) | — | (0.06 | ) | 9.73 | (7.91 | ) | 2,224 | 1.08 | 1.25 | 1.09 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.13 | 0.07 | 1.67 | 1.74 | (0.25 | ) | — | (0.25 | ) | 10.62 | 19.48 | 2,428 | 1.08 | 1.26 | 0.70 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 7.71 | 0.26 | (e) | 1.59 | 1.85 | (0.06 | ) | (0.37 | ) | (0.43 | ) | 9.13 | 25.27 | 2,033 | 1.08 | 1.39 | 3.06 | (e) | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 5.71 | 0.03 | 1.16 | 1.19 | (0.09 | ) | — | (0.09 | ) | 6.81 | 21.01 | 598 | 1.08 | (d) | 1.38 | (d) | 0.96 | (d) | 98 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.73 | 0.09 | (3.76 | ) | (3.67 | ) | (0.09 | ) | (0.26 | ) | (0.35 | ) | 5.71 | (38.93 | ) | 732 | 1.08 | 1.37 | 1.18 | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.61 | 0.13 | (0.95 | ) | (0.82 | ) | (0.06 | ) | – | (0.06 | ) | 9.73 | (7.82 | ) | 1,505 | 1.08 | 1.25 | 1.09 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.12 | 0.07 | 1.67 | 1.74 | (0.25 | ) | – | (0.25 | ) | 10.61 | 19.50 | 1,161 | 1.08 | 1.26 | 0.70 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 7.70 | 0.26 | (e) | 1.59 | 1.85 | (0.06 | ) | (0.37 | ) | (0.43 | ) | 9.12 | 25.31 | 629 | 1.08 | 1.39 | 3.06 | (e) | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
(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) | Annualized. |
(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, 2019. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.07 and 0.95%, $0.00 and 0.20%, $0.05 and 0.70%, $0.10 and 1.20%, $0.10 and 1.20% and $0.10 and 1.20% 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.
11 | Invesco Emerging Markets Select Equity Fund |
April 30, 2023
(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 eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.
12 | Invesco Emerging Markets Select Equity Fund |
Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income - Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination - For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. |
Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
13 | Invesco Emerging Markets Select Equity Fund |
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 exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
L. | Other Risks – The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $ 250 million | 0.935 | % | ||
Next $250 million | 0.910 | % | ||
Next $500 million | 0.885 | % | ||
Next $1.5 billion | 0.860 | % | ||
Next $2.5 billion | 0.835 | % | ||
Next $2.5 billion | 0.810 | % | ||
Next $2.5 billion | 0.785 | % | ||
Over $10 billion | 0.760 | % |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.93%.
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, 2024, 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, 2024. 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, 2025, 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, 2023, the Adviser waived advisory fees of $54,419 and reimbursed class level expenses of $24,665, $3,420, $3,419, $13,391, $230 and $94 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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services.
14 | Invesco Emerging Markets Select Equity Fund |
IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $2,420 in front-end sales commissions from the sale of Class A shares and $557 and $322 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended April 30, 2023, the Fund incurred $710 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - Prices are determined using quoted prices in an active market for identical assets.
Level 2 - Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | – | $ | 371,495 | $ – | $ | 371,495 | |||||||||
Brazil | 2,574,824 | – | – | 2,574,824 | ||||||||||||
Chile | 209,614 | – | – | 209,614 | ||||||||||||
China | 5,775,346 | 3,812,038 | – | 9,587,384 | ||||||||||||
France | – | 2,331,083 | – | 2,331,083 | ||||||||||||
Hong Kong | – | 810,609 | – | 810,609 | ||||||||||||
India | – | 6,687,798 | – | 6,687,798 | ||||||||||||
Indonesia | – | 271,032 | – | 271,032 | ||||||||||||
Italy | – | 634,382 | – | 634,382 | ||||||||||||
Japan | – | 133,748 | – | 133,748 | ||||||||||||
Mexico | 3,780,838 | – | – | 3,780,838 | ||||||||||||
Peru | 336,668 | – | – | 336,668 | ||||||||||||
Philippines | – | 390,315 | – | 390,315 | ||||||||||||
Russia | – | – | 0 | 0 | ||||||||||||
South Africa | – | 206,258 | – | 206,258 | ||||||||||||
South Korea | – | 2,573,204 | – | 2,573,204 | ||||||||||||
Switzerland | – | 1,166,450 | – | 1,166,450 | ||||||||||||
Taiwan | – | 2,913,377 | – | 2,913,377 | ||||||||||||
United Arab Emirates | – | 267,966 | – | 267,966 | ||||||||||||
United Kingdom | 105,217 | – | – | 105,217 | ||||||||||||
Money Market Funds | 202,158 | 2,960,559 | – | 3,162,717 | ||||||||||||
Total Investments | $ | 12,984,665 | $ | 25,530,314 | $0 | $ | 38,514,979 |
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.
15 | Invesco Emerging Markets Select Equity Fund |
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Effect of Derivative Investments for the six months ended April 30, 2023
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 | |||||
Currency Risk | |||||
Realized Gain (Loss): | |||||
Forward foreign currency contracts | $ | (79 | ) |
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | |||||
Average notional value | $ | 9,746 |
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,088.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||||
| ||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||
| ||||||||||||||
Not subject to expiration | $ | 7,059,795 | $ | 4,450,850 | $ | 11,510,645 | ||||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $38,268,545 and $47,233,405, 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 | $ | 3,260,165 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (1,679,700 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 1,580,465 | ||
|
Cost of investments for tax purposes is $36,934,514.
16 | Invesco Emerging Markets Select Equity Fund |
NOTE 10–Share Information |
| |||||||||||||||
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 323,901 | $ | 2,120,249 | 427,982 | $ | 3,270,667 | ||||||||||
| ||||||||||||||||
Class C | 68,165 | 427,972 | 93,567 | 691,359 | ||||||||||||
| ||||||||||||||||
Class R | 66,395 | 426,597 | 154,824 | 1,144,146 | ||||||||||||
| ||||||||||||||||
Class Y | 202,842 | 1,330,494 | 890,254 | 6,920,762 | ||||||||||||
| ||||||||||||||||
Class R6 | 9,295 | 60,324 | 45,928 | 356,071 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 32,808 | 205,709 | 144,164 | 1,251,341 | ||||||||||||
| ||||||||||||||||
Class C | 220 | 1,330 | 16,831 | 140,207 | ||||||||||||
| ||||||||||||||||
Class R | 3,556 | 22,047 | 15,857 | 136,054 | ||||||||||||
| ||||||||||||||||
Class Y | 23,994 | 150,683 | 76,547 | 666,722 | ||||||||||||
| ||||||||||||||||
Class R5 | 3,464 | 21,756 | 9,235 | 80,442 | ||||||||||||
| ||||||||||||||||
Class R6 | 1,345 | 8,448 | 6,386 | 55,620 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 18,934 | 124,261 | 36,333 | 267,811 | ||||||||||||
| ||||||||||||||||
Class C | (19,721 | ) | (124,261 | ) | (38,011 | ) | (267,811 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (1,012,689 | ) | (6,730,686 | ) | (1,414,424 | ) | (10,447,565 | ) | ||||||||
| ||||||||||||||||
Class C | (203,676 | ) | (1,310,905 | ) | (175,368 | ) | (1,328,405 | ) | ||||||||
| ||||||||||||||||
Class R | (211,758 | ) | (1,376,613 | ) | (121,960 | ) | (900,927 | ) | ||||||||
| ||||||||||||||||
Class Y | (678,889 | ) | (4,471,759 | ) | (2,183,906 | ) | (18,064,066 | ) | ||||||||
| ||||||||||||||||
Class R6 | (50,969 | ) | (331,358 | ) | (78,928 | ) | (576,900 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (1,422,783 | ) | $ | (9,445,712 | ) | (2,094,689 | ) | $ | (16,604,472 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 39% 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.
NOTE 11–Significant Event
On March 16, 2023, the Board of Trustees approved a Plan of Liquidation and Dissolution, which authorizes the termination, liquidation and dissolution of the Fund. In order to effect such liquidation, the Fund was closed to investments by new accounts after the close of business on April 14, 2023. The Fund was liquidated on June 14, 2023.
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, 2022 through April 30, 2023.
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 | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Ratio | |||||||||
Ending | Expenses | Ending | Expenses | |||||||||
Class A | $1,000.00 | $1,206.20 | $7.28 | $1,018.20 | $6.66 | 1.33% | ||||||
Class C | 1,000.00 | 1,201.70 | 11.35 | 1,014.48 | 10.39 | 2.08 | ||||||
Class R | 1,000.00 | 1,205.00 | 8.64 | 1,016.96 | 7.90 | 1.58 | ||||||
Class Y | 1,000.00 | 1,208.00 | 5.91 | 1,019.44 | 5.41 | 1.08 | ||||||
Class R5 | 1,000.00 | 1,208.00 | 5.91 | 1,019.44 | 5.41 | 1.08 | ||||||
Class R6 | 1,000.00 | 1,210.10 | 5.92 | 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, 2022 through April 30, 2023, 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 |
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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/ corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | EME-SAR-1 |
| ||
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Fundamental Alternatives Fund
Nasdaq:
A: QVOPX ∎ C: QOPCX ∎ R: QOPNX ∎ Y: QOPYX ∎ R5: FDATX ∎ R6: QOPIX
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
|
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 1.09 | % | ||
Class C Shares | 0.68 | |||
Class R Shares | 0.97 | |||
Class Y Shares | 1.22 | |||
Class R5 Shares | 1.29 | |||
Class R6 Shares | 1.29 | |||
HFRX Global Hedge Fund Index▼ | 0.43 | |||
Source(s): ▼Bloomberg LP
| ||||
The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. |
| |||
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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
|
2 | Invesco Fundamental Alternatives Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (1/3/89) | 6.59 | % | ||
10 Years | 1.07 | |||
5 Years | -0.66 | |||
1 Year | -6.92 | |||
Class C Shares | ||||
Inception (9/1/93) | 5.01 | % | ||
10 Years | 1.02 | |||
5 Years | -0.29 | |||
1 Year | -3.19 | |||
Class R Shares | ||||
Inception (3/1/01) | 1.80 | % | ||
10 Years | 1.38 | |||
5 Years | 0.21 | |||
1 Year | -1.74 | |||
Class Y Shares | ||||
Inception (12/16/96) | 3.79 | % | ||
10 Years | 1.88 | |||
5 Years | 0.72 | |||
1 Year | -1.27 | |||
Class R5 Shares | ||||
10 Years | 1.80 | % | ||
5 Years | 0.79 | |||
1 Year | -1.10 | |||
Class R6 Shares | ||||
Inception (2/28/13) | 2.18 | % | ||
10 Years | 2.08 | |||
5 Years | 0.90 | |||
1 Year | -1.07 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Fundamental Alternatives Fund (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Fundamental Alternatives Fund. Note: The Fund was subsequently renamed the Invesco Fundamental Alternatives Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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 Fundamental Alternatives Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Fundamental Alternatives Fund |
Consolidated Schedule of Investments(a)
April 30, 2023
(Unaudited)
Shares | Value | |||||
Common Stocks & Other Equity Interests–35.49% | ||||||
Advertising–0.08% | ||||||
Catalina Marketing Corp. | 1,362 | $ 0 | ||||
Omnicom Group, Inc. | 3,277 | 296,798 | ||||
296,798 | ||||||
Agricultural & Farm Machinery–0.02% | ||||||
Deere & Co. | 210 | 79,384 | ||||
Agricultural Products & Services–0.17% | ||||||
Archer-Daniels-Midland Co. | 7,783 | 607,697 | ||||
Air Freight & Logistics–0.53% | ||||||
C.H. Robinson Worldwide, Inc.(b) | 3,409 | 343,866 | ||||
Expeditors International of Washington, Inc.(b) | 11,257 | 1,281,497 | ||||
United Parcel Service, Inc., Class B | 1,410 | 253,532 | ||||
1,878,895 | ||||||
Apparel Retail–0.05% | ||||||
TJX Cos., Inc. (The) | 2,305 | 181,680 | ||||
Apparel, Accessories & Luxury Goods–0.05% | ||||||
Tapestry, Inc. | 4,512 | 184,135 | ||||
Application Software–0.67% | ||||||
Adobe, Inc.(c) | 893 | 337,161 | ||||
Autodesk, Inc.(b)(c) | 1,655 | 322,377 | ||||
Cadence Design Systems, Inc.(b)(c) | 1,697 | 355,437 | ||||
DocuSign, Inc.(c) | 4,209 | 208,093 | ||||
Dynatrace, Inc.(c) | 3,834 | 162,102 | ||||
Fair Isaac Corp.(b)(c) | 552 | 401,828 | ||||
Fusion Connect, Inc. (Acquired 05/03/2018-12/31/2019; Cost $10)(d)(e) | 1 | 0 | ||||
Fusion Connect, Inc., Wts., expiring 01/14/2040 (Acquired 05/03/2018-12/31/2019; Cost $61,233)(d)(e) | 6,073 | 61 | ||||
Salesforce, Inc.(c) | 2,237 | 443,754 | ||||
Synopsys, Inc.(c) | 382 | 141,844 | ||||
2,372,657 | ||||||
Asset Management & Custody Banks–0.51% | ||||||
Ameriprise Financial, Inc. | 2,689 | 820,467 | ||||
Bank of New York Mellon Corp. (The) | 10,525 | 448,260 | ||||
State Street Corp. | 7,118 | 514,347 | ||||
1,783,074 | ||||||
Automobile Manufacturers–0.26% | ||||||
General Motors Co. | 11,585 | 382,769 | ||||
Tesla, Inc.(b)(c) | 3,336 | 548,138 | ||||
930,907 | ||||||
Automotive Parts & Equipment–0.05% | ||||||
BorgWarner, Inc. | 3,552 | 170,958 | ||||
Automotive Retail–0.14% | ||||||
AutoZone, Inc.(c) | 68 | 181,105 |
Shares | Value | |||||
Automotive Retail–(continued) | ||||||
O’Reilly Automotive, Inc.(c) | 332 | $ 304,547 | ||||
485,652 | ||||||
Biotechnology–1.87% | ||||||
AbbVie, Inc. | 7,701 | 1,163,775 | ||||
Amgen, Inc. | 3,004 | 720,179 | ||||
Biogen, Inc.(c) | 3,124 | 950,415 | ||||
Gilead Sciences, Inc. | 21,424 | 1,761,267 | ||||
Incyte Corp.(c) | 4,212 | 313,415 | ||||
Neurocrine Biosciences, Inc.(c) | 3,233 | 326,662 | ||||
Regeneron Pharmaceuticals, Inc.(c) | 722 | 578,892 | ||||
Vertex Pharmaceuticals, Inc.(c) | 2,288 | 779,590 | ||||
6,594,195 | ||||||
Broadcasting–0.05% | ||||||
Fox Corp., Class A | 4,761 | 158,351 | ||||
Broadline Retail–0.34% | ||||||
Amazon.com, Inc.(c) | 7,284 | 768,098 | ||||
eBay, Inc. | 4,373 | 203,038 | ||||
MercadoLibre, Inc. (Brazil)(c) | 187 | 238,891 | ||||
1,210,027 | ||||||
Building Products–0.41% | ||||||
Builders FirstSource, Inc.(c) | 6,795 | 643,962 | ||||
Owens Corning(b) | 4,237 | 452,554 | ||||
Trane Technologies PLC | 1,950 | 362,330 | ||||
1,458,846 | ||||||
Cable & Satellite–0.32% | ||||||
Charter Communications, Inc., Class A(c) | 408 | 150,430 | ||||
Comcast Corp., Class A(b) | 23,692 | 980,138 | ||||
1,130,568 | ||||||
Cargo Ground Transportation–0.20% | ||||||
Knight-Swift Transportation Holdings, Inc. | 10,203 | 574,633 | ||||
Old Dominion Freight Line, Inc. | 457 | 146,418 | ||||
721,051 | ||||||
Commodity Chemicals–0.22% | ||||||
Dow, Inc. | 5,424 | 295,065 | ||||
LyondellBasell Industries N.V., Class A | 2,547 | 240,972 | ||||
Olin Corp. | 4,375 | 242,375 | ||||
778,412 | ||||||
Communications Equipment–0.72% | ||||||
Cisco Systems, Inc. | 42,213 | 1,994,564 | ||||
Motorola Solutions, Inc. | 1,916 | 558,323 | ||||
2,552,887 | ||||||
Computer & Electronics Retail–0.03% | ||||||
Best Buy Co., Inc. | 1,581 | 117,816 | ||||
Construction & Engineering–0.04% | ||||||
WillScot Mobile Mini Holdings | 3,035 | 137,789 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 | Invesco Fundamental Alternatives Fund |
Shares | Value | |||||
Construction Machinery & Heavy Transportation Equipment– 0.26% | ||||||
Caterpillar, Inc. | 398 | $ 87,082 | ||||
PACCAR, Inc. | 9,452 | 705,970 | ||||
Wabtec Corp. | 1,151 | 112,418 | ||||
905,470 | ||||||
Consumer Finance–0.36% | ||||||
American Express Co. | 1,892 | 305,255 | ||||
Capital One Financial Corp. | 1,073 | 104,403 | ||||
Discover Financial Services | 3,753 | 388,323 | ||||
Synchrony Financial | 16,232 | 479,006 | ||||
1,276,987 | ||||||
Consumer Staples Merchandise Retail–0.65% | ||||||
BJ’s Wholesale Club Holdings, | 4,941 | 377,344 | ||||
Costco Wholesale Corp. | 914 | 459,943 | ||||
Walmart, Inc. | 9,701 | 1,464,560 | ||||
2,301,847 | ||||||
Copper–0.04% | ||||||
Freeport-McMoRan, Inc. | 3,460 | 131,169 | ||||
Distributors–0.27% | ||||||
Genuine Parts Co. | 3,534 | 594,807 | ||||
LKQ Corp. | 5,893 | 340,203 | ||||
935,010 | ||||||
Diversified Banks–0.71% | ||||||
Bank of America Corp. | 11,579 | 339,033 | ||||
Citigroup, Inc. | 6,606 | 310,944 | ||||
Comerica, Inc. | 2,291 | 99,361 | ||||
JPMorgan Chase & Co. | 7,804 | 1,078,825 | ||||
U.S. Bancorp | 3,151 | 108,016 | ||||
Wells Fargo & Co. | 13,913 | 553,042 | ||||
2,489,221 | ||||||
Diversified Support Services–0.19% | ||||||
Cintas Corp. | 1,032 | 470,355 | ||||
Copart, Inc.(c) | 2,323 | 183,633 | ||||
653,988 | ||||||
Drug Retail–0.09% | ||||||
Walgreens Boots Alliance, Inc.(b) | 8,587 | 302,692 | ||||
Electric Utilities–1.69% | ||||||
American Electric Power Co., Inc. | 9,408 | 869,487 | ||||
Edison International | 2,804 | 206,374 | ||||
Eversource Energy | 3,596 | 279,086 | ||||
Exelon Corp. | 9,300 | 394,692 | ||||
NextEra Energy, Inc. | 3,088 | 236,634 | ||||
NRG Energy, Inc. | 8,279 | 282,893 | ||||
OGE Energy Corp. | 4,271 | 160,333 | ||||
Pinnacle West Capital Corp. | 7,567 | 593,707 | ||||
PPL Corp. | 39,918 | 1,146,445 | ||||
Southern Co. (The)(b) | 6,220 | 457,481 | ||||
Xcel Energy, Inc. | 19,081 | 1,333,953 | ||||
5,961,085 | ||||||
Electronic Components–0.05% | ||||||
Amphenol Corp., Class A | 2,100 | 158,487 |
Shares | Value | |||||
Electronic Equipment & Instruments–0.15% | ||||||
Keysight Technologies, Inc.(c) | 3,575 | $ 517,088 | ||||
Electronic Manufacturing Services–0.20% | ||||||
Flex Ltd.(c) | 9,179 | 188,812 | ||||
Jabil, Inc. | 6,723 | 525,402 | ||||
714,214 | ||||||
Environmental & Facilities Services–0.23% | ||||||
Republic Services, Inc. | 5,722 | 827,516 | ||||
Fertilizers & Agricultural Chemicals–0.03% | ||||||
CF Industries Holdings, Inc. | 1,552 | 111,092 | ||||
Financial Exchanges & Data–0.06% | ||||||
Coinbase Global, Inc., Class A(c) | 3,648 | 196,226 | ||||
Food Distributors–0.08% | ||||||
Sysco Corp. | 3,550 | 272,427 | ||||
Food Retail–0.06% | ||||||
Kroger Co. (The) | 4,644 | 225,838 | ||||
Gas Utilities–0.15% | ||||||
Atmos Energy Corp.(b) | 3,191 | 364,221 | ||||
UGI Corp. | 4,736 | 160,455 | ||||
524,676 | ||||||
Health Care Distributors–0.64% | ||||||
AmerisourceBergen Corp. | 1,284 | 214,235 | ||||
Cardinal Health, Inc.(b) | 13,251 | 1,087,907 | ||||
McKesson Corp. | 2,595 | 945,203 | ||||
2,247,345 | ||||||
Health Care Equipment–0.48% | ||||||
Abbott Laboratories(b) | 4,724 | 521,860 | ||||
Becton, Dickinson and Co. | 689 | 182,110 | ||||
Hologic, Inc.(c) | 4,818 | 414,396 | ||||
Zimmer Biomet Holdings, Inc. | 4,151 | 574,664 | ||||
1,693,030 | ||||||
Health Care Facilities–0.10% | ||||||
HCA Healthcare, Inc. | 1,252 | 359,737 | ||||
Health Care Services–0.55% | ||||||
Cigna Group (The)(b) | 3,514 | 890,061 | ||||
CVS Health Corp. | 10,736 | 787,056 | ||||
Quest Diagnostics, Inc. | 1,784 | 247,637 | ||||
1,924,754 | ||||||
Home Improvement Retail–0.15% | ||||||
Home Depot, Inc. (The) | 569 | 171,007 | ||||
Lowe’s Cos., Inc. | 1,666 | 346,245 | ||||
517,252 | ||||||
Homebuilding–0.37% | ||||||
Lennar Corp., Class A | 4,229 | 477,073 | ||||
NVR, Inc.(c) | 104 | 607,360 | ||||
PulteGroup, Inc. | 3,012 | 202,256 | ||||
1,286,689 | ||||||
Hotel & Resort REITs–0.03% | ||||||
Host Hotels & Resorts, Inc. | 7,107 | 114,920 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 | Invesco Fundamental Alternatives Fund |
Shares | Value | |||||
Hotels, Resorts & Cruise Lines–0.32% | ||||||
Booking Holdings, Inc.(c) | 371 | $ 996,621 | ||||
Expedia Group, Inc.(c) | 1,469 | 138,027 | ||||
1,134,648 | ||||||
Household Products–0.85% | ||||||
Clorox Co. (The)(b) | 2,839 | 470,195 | ||||
Colgate-Palmolive Co. | 4,996 | 398,681 | ||||
Kimberly-Clark Corp. | 8,823 | 1,278,364 | ||||
Procter & Gamble Co. (The) | 5,331 | 833,662 | ||||
2,980,902 | ||||||
Human Resource & Employment Services–0.48% | ||||||
Automatic Data Processing, Inc. | 4,427 | 973,940 | ||||
Paychex, Inc.(b) | 6,370 | 699,808 | ||||
1,673,748 | ||||||
Independent Power Producers & Energy Traders–0.10% | ||||||
AES Corp. (The) | 14,341 | 339,308 | ||||
Industrial Conglomerates–0.07% | ||||||
General Electric Co. | 2,567 | 254,056 | ||||
Industrial Gases–0.23% | ||||||
Linde PLC | 2,196 | 811,312 | ||||
Industrial Machinery & Supplies & Components–0.04% | ||||||
Fortive Corp. | 2,472 | 155,958 | ||||
Integrated Oil & Gas–0.70% | ||||||
Chevron Corp. | 4,903 | 826,548 | ||||
Exxon Mobil Corp. | 12,419 | 1,469,664 | ||||
Occidental Petroleum Corp. | 2,959 | 182,067 | ||||
2,478,279 | ||||||
Integrated Telecommunication Services–0.33% | ||||||
AT&T, Inc. | 65,991 | 1,166,061 | ||||
Interactive Home Entertainment–0.18% | ||||||
Activision Blizzard, Inc. | 3,304 | 256,754 | ||||
Electronic Arts, Inc. | 1,829 | 232,795 | ||||
Take-Two Interactive Software, | 1,185 | 147,284 | ||||
636,833 | ||||||
Interactive Media & Services–0.92% | ||||||
Alphabet, Inc., Class A(c) | 10,076 | 1,081,558 | ||||
Alphabet, Inc., Class C(c) | 5,942 | 643,043 | ||||
Meta Platforms, Inc., Class A(c) | 6,280 | 1,509,210 | ||||
3,233,811 | ||||||
Internet Services & Infrastructure–0.23% | ||||||
GoDaddy, Inc., Class A(c) | 1,296 | 98,081 | ||||
VeriSign, Inc.(c) | 3,140 | 696,452 | ||||
794,533 | ||||||
Investment Banking & Brokerage–0.33% | ||||||
Goldman Sachs Group, Inc. (The) | 1,786 | 613,384 | ||||
LPL Financial Holdings, Inc. | 708 | 147,859 | ||||
Morgan Stanley | 4,384 | 394,428 | ||||
1,155,671 | ||||||
IT Consulting & Other Services–0.63% | ||||||
Accenture PLC, Class A | 1,771 | 496,393 |
Shares | Value | |||||
IT Consulting & Other Services–(continued) | ||||||
Amdocs Ltd. | 5,871 | $ 535,729 | ||||
DXC Technology Co.(c) | 5,846 | 139,427 | ||||
Gartner, Inc.(c) | 1,367 | 413,463 | ||||
International Business Machines Corp. | 5,078 | 641,910 | ||||
2,226,922 | ||||||
Life & Health Insurance–0.34% | ||||||
Aflac, Inc. | 3,519 | 245,802 | ||||
MetLife, Inc. | 5,482 | 336,211 | ||||
Principal Financial Group, Inc. | 6,194 | 462,630 | ||||
Prudential Financial, Inc. | 1,678 | 145,986 | ||||
1,190,629 | ||||||
Life Sciences Tools & Services–0.63% | ||||||
Agilent Technologies, Inc. | 2,952 | 399,789 | ||||
Danaher Corp. | 495 | 117,270 | ||||
IQVIA Holdings, Inc.(c) | 611 | 115,009 | ||||
Mettler-Toledo International, Inc.(c) | 466 | 695,039 | ||||
QIAGEN N.V.(c) | 3,549 | 158,321 | ||||
Thermo Fisher Scientific, Inc. | 898 | 498,300 | ||||
Waters Corp.(c) | 793 | 238,186 | ||||
2,221,914 | ||||||
Managed Health Care–0.79% | ||||||
Centene Corp.(c) | 6,090 | 419,784 | ||||
Elevance Health, Inc. | 1,050 | 492,082 | ||||
Humana, Inc.(b) | 1,369 | 726,241 | ||||
UnitedHealth Group, Inc. | 2,351 | 1,156,904 | ||||
2,795,011 | ||||||
Marine Transportation–0.01% | ||||||
Harvey Gulf International Marine LLC (Acquired 10/18/2016-01/11/2017; Cost $53,874)(d)(e) | 731 | 23,027 | ||||
Movies & Entertainment–0.08% | ||||||
Netflix, Inc.(c) | 807 | 266,254 | ||||
Multi-line Insurance–0.22% | ||||||
American International Group, Inc. | 14,369 | 762,132 | ||||
Multi-Sector Holdings–0.60% | ||||||
Berkshire Hathaway, Inc., Class B(c) | 6,396 | 2,101,406 | ||||
Multi-Utilities–0.66% | ||||||
Ameren Corp.(b) | 3,281 | 291,911 | ||||
Consolidated Edison, Inc. | 14,373 | 1,415,309 | ||||
DTE Energy Co. | 3,606 | 405,350 | ||||
WEC Energy Group, Inc. | 2,263 | 217,633 | ||||
2,330,203 | ||||||
Oil & Gas Equipment & Services–0.07% | ||||||
Halliburton Co. | 3,838 | 125,694 | ||||
Schlumberger N.V. | 2,657 | 131,123 | ||||
256,817 | ||||||
Oil & Gas Exploration & Production–0.58% | ||||||
APA Corp. | 17,690 | 651,876 | ||||
ConocoPhillips | 4,295 | 441,913 | ||||
Marathon Oil Corp. | 34,075 | 823,252 | ||||
Ovintiv, Inc. | 3,411 | 123,069 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 | Invesco Fundamental Alternatives Fund |
Shares | Value | |||||
Oil & Gas Exploration & Production–(continued) | ||||||
Sabine Oil & Gas Holdings, Inc. (Acquired 01/06/2014-11/09/2016; Cost $158,088)(c)(d)(e) | 115 | $ 2 | ||||
2,040,112 | ||||||
Oil & Gas Refining & Marketing–0.48% | ||||||
Marathon Petroleum Corp. | 10,320 | 1,259,040 | ||||
Phillips 66 | 2,214 | 219,186 | ||||
Valero Energy Corp. | 1,743 | 199,870 | ||||
1,678,096 | ||||||
Oil & Gas Storage & Transportation–0.00% | ||||||
Southcross Energy Partners L.P. (Acquired 07/29/2014-10/29/2020; Cost $174,570)(e) | 17,192 | 473 | ||||
Other Specialty Retail–0.30% | ||||||
Bath & Body Works, Inc. | 8,262 | 289,996 | ||||
Ulta Beauty, Inc.(c) | 1,392 | 767,591 | ||||
1,057,587 | ||||||
Packaged Foods & Meats–1.48% | ||||||
Campbell Soup Co. | 13,921 | 755,910 | ||||
Conagra Brands, Inc. | 12,189 | 462,695 | ||||
General Mills, Inc.(b) | 13,523 | 1,198,544 | ||||
Hershey Co. (The) | 4,139 | 1,130,195 | ||||
JM Smucker Co. (The) | 2,349 | 362,709 | ||||
Kellogg Co. | 1,299 | 90,631 | ||||
Lamb Weston Holdings, Inc. | 5,214 | 582,977 | ||||
Mondelez International, Inc., Class A(b) | 7,993 | 613,223 | ||||
5,196,884 | ||||||
Paper & Plastic Packaging Products & Materials–0.04% | ||||||
Graphic Packaging Holding Co. | 6,368 | 157,035 | ||||
Passenger Airlines–0.12% | ||||||
United Airlines Holdings, Inc.(c) | 9,712 | 425,386 | ||||
Pharmaceuticals–1.46% | ||||||
Bristol-Myers Squibb Co. | 16,022 | 1,069,789 | ||||
Eli Lilly and Co. | 822 | 325,397 | ||||
Johnson & Johnson | 4,515 | 739,105 | ||||
Merck & Co., Inc. | 13,105 | 1,513,234 | ||||
Pfizer, Inc. | 27,477 | 1,068,581 | ||||
Viatris, Inc.(b) | 46,196 | 431,009 | ||||
5,147,115 | ||||||
Rail Transportation–0.07% | ||||||
CSX Corp. | 8,317 | 254,833 | ||||
Real Estate Services–0.05% | ||||||
CBRE Group, Inc., Class A(c) | 2,224 | 170,492 | ||||
Regional Banks–0.17% | ||||||
East West Bancorp, Inc. | 2,139 | 110,565 | ||||
Huntington Bancshares, Inc. | 19,055 | 213,416 | ||||
Regions Financial Corp. | 9,873 | 180,281 | ||||
Truist Financial Corp. | 3,400 | 110,772 | ||||
615,034 | ||||||
Research & Consulting Services–0.11% | ||||||
Booz Allen Hamilton Holding Corp. | 4,052 | 387,857 |
Shares | Value | |||||
Retail REITs–0.08% | ||||||
Regency Centers Corp. | 4,530 | $ 278,278 | ||||
Semiconductor Materials & Equipment–0.19% | ||||||
Applied Materials, Inc. | 2,163 | 244,484 | ||||
Enphase Energy, Inc.(c) | 430 | 70,606 | ||||
KLA Corp. | 490 | 189,404 | ||||
Lam Research Corp. | 298 | 156,176 | ||||
660,670 | ||||||
Semiconductors–1.39% | ||||||
Analog Devices, Inc.(b) | 4,587 | 825,110 | ||||
Broadcom, Inc. | 2,515 | 1,575,647 | ||||
First Solar, Inc.(c) | 1,166 | 212,888 | ||||
Microchip Technology, Inc.(b) | 15,250 | 1,113,097 | ||||
NVIDIA Corp. | 3,140 | 871,319 | ||||
NXP Semiconductors N.V. (China) | 924 | 151,296 | ||||
ON Semiconductor Corp.(c) | 1,075 | 77,357 | ||||
Texas Instruments, Inc. | 473 | 79,086 | ||||
4,905,800 | ||||||
Soft Drinks & Non-alcoholic Beverages–0.57% | ||||||
Coca-Cola Co. (The) | 11,641 | 746,770 | ||||
PepsiCo, Inc. | 6,529 | 1,246,321 | ||||
1,993,091 | ||||||
Specialty Chemicals–0.09% | ||||||
Albemarle Corp. | 1,671 | 309,904 | ||||
Steel–0.35% | ||||||
Nucor Corp. | 3,765 | 557,897 | ||||
Steel Dynamics, Inc.(b) | 6,604 | 686,486 | ||||
1,244,383 | ||||||
Systems Software–1.49% | ||||||
Microsoft Corp. | 13,284 | 4,081,642 | ||||
Oracle Corp. | 7,878 | 746,204 | ||||
Palo Alto Networks, Inc.(c) | 1,346 | 245,591 | ||||
ServiceNow, Inc.(c) | 374 | 171,823 | ||||
5,245,260 | ||||||
Technology Hardware, Storage & Peripherals–1.51% | ||||||
Apple, Inc. | 27,527 | 4,670,782 | ||||
Hewlett Packard Enterprise Co. | 45,198 | 647,235 | ||||
5,318,017 | ||||||
Textiles–0.00% | ||||||
Sungard Availability Services Capital, Inc. (Acquired 06/27/2018-07/17/2018; Cost $18,217)(e) | 225 | 127 | ||||
Tobacco–0.53% | ||||||
Altria Group, Inc.(b) | 19,954 | 948,015 | ||||
Philip Morris International, Inc.(b) | 9,131 | 912,826 | ||||
1,860,841 | ||||||
Trading Companies & Distributors–0.37% | ||||||
United Rentals, Inc. | 2,706 | 977,163 | ||||
W.W. Grainger, Inc. | 468 | 325,527 | ||||
1,302,690 | ||||||
Transaction & Payment Processing Services–0.91% | ||||||
Fiserv, Inc.(b)(c) | 8,185 | 999,552 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 | Invesco Fundamental Alternatives Fund |
Shares | Value | |||||
Transaction & Payment Processing Services–(continued) | ||||||
Mastercard, Inc., Class A | 2,398 | $ 911,312 | ||||
PayPal Holdings, Inc.(c) | 1,937 | 147,212 | ||||
Visa, Inc., Class A(b) | 5,005 | 1,164,814 | ||||
3,222,890 | ||||||
Wireless Telecommunication Services–0.02% |
| |||||
T-Mobile US, Inc.(c) | 594 | 85,477 | ||||
Total Common Stocks & Other Equity Interests |
| 125,028,306 | ||||
Principal Amount | ||||||
U.S. Treasury Securities–13.56% | ||||||
U.S. Treasury Bills–0.21% | ||||||
4.48% - 4.69%, | $ | 732,500 | 731,606 | |||
U.S. Treasury Notes–13.35% | ||||||
0.13%, 12/15/2023 | 17,800,000 | 17,285,995 | ||||
1.13%, 01/15/2025 | 10,000,000 | 9,492,969 | ||||
0.38%, 12/31/2025 | 8,500,000 | 7,780,488 | ||||
2.63%, 05/31/2027 | 12,950,000 | 12,477,021 | ||||
47,036,473 | ||||||
Total U.S. Treasury Securities |
| 47,768,079 | ||||
U.S. Dollar Denominated Bonds & Notes–7.53% | ||||||
Aerospace & Defense–0.15% | ||||||
Boeing Co. (The), | ||||||
2.75%, 02/01/2026 | 177,000 | 167,825 | ||||
2.25%, 06/15/2026 | 200,000 | 184,357 | ||||
General Dynamics Corp., 3.25%, 04/01/2025 | 200,000 | 195,060 | ||||
547,242 | ||||||
Agricultural & Farm Machinery–0.08% | ||||||
Deere & Co., 2.75%, 04/15/2025 | 310,000 | 300,565 | ||||
Apparel Retail–0.03% | ||||||
Ross Stores, Inc., 0.88%, 04/15/2026 | 100,000 | 89,805 | ||||
Apparel, Accessories & Luxury Goods–0.02% | ||||||
Tapestry, Inc., 4.13%, 07/15/2027 | 65,000 | 62,803 | ||||
Application Software–0.08% | ||||||
Adobe, Inc., 3.25%, 02/01/2025 | 300,000 | 294,467 | ||||
Asset Management & Custody Banks–0.21% | ||||||
FS KKR Capital Corp., 4.63%, 07/15/2024 | 242,000 | 235,406 | ||||
Legg Mason, Inc., 4.75%, 03/15/2026 | 90,000 | 89,278 | ||||
Main Street Capital Corp., 5.20%, 05/01/2024 | 200,000 | 196,638 | ||||
Owl Rock Capital Corp., 5.25%, 04/15/2024 | 223,000 | 219,477 | ||||
740,799 | ||||||
Automobile Manufacturers–0.13% | ||||||
General Motors Co., | ||||||
6.13%, 10/01/2025 | 75,000 | 76,358 | ||||
4.20%, 10/01/2027 | 80,000 | 76,828 |
Principal Amount | Value | |||||
Automobile Manufacturers–(continued) |
| |||||
Toyota Motor Credit Corp., | ||||||
3.20%, 01/11/2027 | $ | 130,000 | $ 125,291 | |||
1.15%, 08/13/2027 | 200,000 | 176,737 | ||||
455,214 | ||||||
Automotive Parts & Equipment–0.06% | ||||||
American Honda Finance Corp., 2.35%, 01/08/2027 | 225,000 | 210,240 | ||||
Broadcasting–0.04% | ||||||
Paramount Global, 3.70%, 06/01/2028 | 165,000 | 151,435 | ||||
Broadline Retail–0.10% | ||||||
Amazon.com, Inc., 3.30%, 04/13/2027(b) | 350,000 | 340,416 | ||||
Cable & Satellite–0.10% | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.91%, 07/23/2025 | 150,000 | 148,641 | ||||
Discovery Communications LLC, 3.95%, 03/20/2028 | 225,000 | 210,865 | ||||
359,506 | ||||||
Computer & Electronics Retail–0.05% | ||||||
Dell International LLC/EMC Corp., 6.02%, 06/15/2026 | 170,000 | 175,017 | ||||
Construction Machinery & Heavy Transportation Equipment– 0.10% | ||||||
Caterpillar Financial Services Corp., 1.10%, 09/14/2027 | 175,000 | 154,472 | ||||
Wabtec Corp., 3.45%, 11/15/2026 | 200,000 | 190,810 | ||||
345,282 | ||||||
Consumer Electronics–0.03% | ||||||
Tyco Electronics Group S.A., 3.13%, 08/15/2027 | 100,000 | 94,743 | ||||
Consumer Finance–0.17% | ||||||
American Express Co., 3.30%, 05/03/2027 | 170,000 | 162,051 | ||||
General Motors Financial Co., Inc., | ||||||
2.75%, 06/20/2025 | 300,000 | 284,676 | ||||
5.25%, 03/01/2026 | 50,000 | 49,990 | ||||
Synchrony Financial, 3.95%, 12/01/2027 | 100,000 | 88,645 | ||||
585,362 | ||||||
Copper–0.03% | ||||||
Freeport-McMoRan, Inc., 5.00%, 09/01/2027 | 100,000 | 99,985 | ||||
Distillers & Vintners–0.05% | ||||||
Constellation Brands, Inc., 3.70%, 12/06/2026 | 175,000 | 170,135 | ||||
Diversified Banks–2.13% | ||||||
Banco Santander S.A. (Spain), | ||||||
2.75%, 05/28/2025 | 400,000 | 377,148 | ||||
4.25%, 04/11/2027 | 200,000 | 192,486 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 | Invesco Fundamental Alternatives Fund |
Principal Amount | Value | |||||
Diversified Banks–(continued) | ||||||
Bank of America Corp., | ||||||
4.45%, 03/03/2026 | $ | 269,000 | $ 265,190 | |||
3.50%, 04/19/2026 | 185,000 | 179,914 | ||||
1.32%, 06/19/2026(h) | 195,000 | 178,448 | ||||
1.20%, 10/24/2026(h) | 205,000 | 185,553 | ||||
1.73%, 07/22/2027(h) | 80,000 | 71,725 | ||||
Series L, 4.18%, 11/25/2027 | 210,000 | 202,738 | ||||
Barclays PLC (United Kingdom), 4.38%, 09/11/2024 | 494,000 | 480,498 | ||||
Canadian Imperial Bank of Commerce (Canada), 2.25%, 01/28/2025(b) | 402,000 | 383,700 | ||||
Citigroup, Inc., | ||||||
3.11%, 04/08/2026(h) | 297,000 | 285,879 | ||||
1.12%, 01/28/2027(h) | 130,000 | 116,846 | ||||
1.46%, 06/09/2027(h) | 210,000 | 188,622 | ||||
4.45%, 09/29/2027 | 100,000 | 97,815 | ||||
HSBC Holdings PLC (United Kingdom), | ||||||
1.59%, 05/24/2027(h) | 200,000 | 178,324 | ||||
2.25%, 11/22/2027(h) | 375,000 | 335,532 | ||||
ING Groep N.V. (Netherlands), 4.02%, 03/28/2028(h)(i) | 200,000 | 191,169 | ||||
JPMorgan Chase & Co., | ||||||
2.30%, 10/15/2025(h) | 425,000 | 406,107 | ||||
2.01%, 03/13/2026(h) | 200,000 | 188,692 | ||||
2.08%, 04/22/2026(h) | 200,000 | 188,535 | ||||
4.25%, 10/01/2027 | 50,000 | 49,229 | ||||
3.63%, 12/01/2027 | 165,000 | 157,405 | ||||
Lloyds Banking Group PLC (United Kingdom), 4.45%, 05/08/2025 | 305,000 | 299,720 | ||||
Mitsubishi UFJ Financial Group, Inc. (Japan), | ||||||
0.96%, 10/11/2025(h) | 311,000 | 290,625 | ||||
3.68%, 02/22/2027 | 165,000 | 162,609 | ||||
3.29%, 07/25/2027 | 75,000 | 70,937 | ||||
PNC Bank N.A., 4.20%, 11/01/2025(b) | 380,000 | 368,479 | ||||
Royal Bank of Canada (Canada), 4.65%, 01/27/2026 | 180,000 | 178,243 | ||||
Sumitomo Mitsui Financial Group, Inc. (Japan), | ||||||
2.35%, 01/15/2025 | 397,000 | 377,639 | ||||
2.63%, 07/14/2026 | 100,000 | 93,500 | ||||
3.45%, 01/11/2027 | 60,000 | 57,052 | ||||
Toronto-Dominion Bank (The) (Canada), 5.16%, 01/10/2028 | 65,000 | 65,771 | ||||
U.S. Bancorp, 1.45%, 05/12/2025 | 148,000 | 137,415 | ||||
Wells Fargo & Co., | ||||||
2.19%, 04/30/2026(h) | 190,000 | 179,063 | ||||
4.30%, 07/22/2027 | 175,000 | 171,393 | ||||
Westpac Banking Corp. (Australia), 3.35%, 03/08/2027 | 165,000 | 158,757 | ||||
7,512,758 | ||||||
Diversified Capital Markets–0.17% | ||||||
Deutsche Bank AG (Germany), | ||||||
3.70%, 05/30/2024 | 298,000 | 289,128 | ||||
3.70%, 05/30/2024 | 303,000 | 293,901 | ||||
583,029 | ||||||
Diversified Financial Services–0.05% | ||||||
Corebridge Financial, Inc., 3.65%, 04/05/2027(j) | 170,000 | 160,661 |
Principal Amount | Value | |||||
Drug Retail–0.03% | ||||||
Walgreens Boots Alliance, Inc., 3.45%, 06/01/2026 | $ | 100,000 | $ 96,176 | |||
Electric Utilities–0.18% | ||||||
Edison International, | ||||||
5.75%, 06/15/2027 | 125,000 | 128,410 | ||||
4.13%, 03/15/2028 | 135,000 | 129,011 | ||||
Pacific Gas and Electric Co., | ||||||
2.10%, 08/01/2027 | 75,000 | 65,697 | ||||
3.30%, 12/01/2027 | 125,000 | 113,684 | ||||
System Energy Resources, Inc., 6.00%, 04/15/2028 | 195,000 | 201,277 | ||||
638,079 | ||||||
Electrical Components & Equipment–0.03% | ||||||
Emerson Electric Co., 1.80%, 10/15/2027 | 100,000 | 90,310 | ||||
Electronic Equipment & Instruments–0.03% | ||||||
Vontier Corp., 1.80%, 04/01/2026 | 100,000 | 89,539 | ||||
Financial Exchanges & Data–0.04% | ||||||
Cboe Global Markets, Inc., 3.65%, 01/12/2027 | 40,000 | 38,980 | ||||
Intercontinental Exchange, Inc., 3.10%, 09/15/2027 | 100,000 | 94,673 | ||||
133,653 | ||||||
Gas Utilities–0.03% | ||||||
Southwest Gas Corp., 5.45%, 03/23/2028 | 100,000 | 101,707 | ||||
Health Care Distributors–0.02% | ||||||
CommonSpirit Health, 1.55%, 10/01/2025 | 96,000 | 88,579 | ||||
Health Care Facilities–0.08% | ||||||
HCA, Inc., 5.63%, 09/01/2028 | 95,000 | 97,022 | ||||
Universal Health Services, Inc., 1.65%, 09/01/2026 | 200,000 | 176,875 | ||||
273,897 | ||||||
Health Care REITs–0.05% | ||||||
Omega Healthcare Investors, Inc., 5.25%, 01/15/2026 | 179,000 | 175,151 | ||||
Health Care Services–0.08% | ||||||
Sutter Health, Series 20A, 1.32%, 08/15/2025 | 299,000 | 276,051 | ||||
Home Improvement Retail–0.04% | ||||||
Home Depot, Inc. (The), 2.50%, 04/15/2027 | 160,000 | 151,649 | ||||
Homebuilding–0.02% | ||||||
Lennar Corp., 4.75%, 11/29/2027 | 80,000 | 79,311 | ||||
Hotel & Resort REITs–0.03% | ||||||
Host Hotels & Resorts L.P., Series F, 4.50%, 02/01/2026 | 100,000 | 97,774 | ||||
Hotels, Resorts & Cruise Lines–0.06% | ||||||
Booking Holdings, Inc., 3.55%, 03/15/2028 | 70,000 | 67,587 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 | Invesco Fundamental Alternatives Fund |
Principal Amount | Value | |||||
Hotels, Resorts & Cruise Lines–(continued) | ||||||
Hyatt Hotels Corp., 4.85%, 03/15/2026 | $ | 133,000 | $ 132,834 | |||
200,421 | ||||||
Human Resource & Employment Services–0.08% | ||||||
Automatic Data Processing, Inc., 3.38%, 09/15/2025(b) | 305,000 | 299,380 | ||||
Independent Power Producers & Energy Traders–0.08% | ||||||
Enel Generacion Chile S.A. (Chile), 4.25%, 04/15/2024 | 300,000 | 296,134 | ||||
Industrial Conglomerates–0.05% | ||||||
Berkshire Hathaway Energy Co., 3.50%, 02/01/2025 | 190,000 | 185,840 | ||||
Industrial Machinery & Supplies & Components–0.03% | ||||||
Stanley Black & Decker, Inc., 3.40%, 03/01/2026 | 125,000 | 120,620 | ||||
Insurance Brokers–0.05% | ||||||
Willis North America, Inc., 4.65%, 06/15/2027 | 165,000 | 162,587 | ||||
Integrated Oil & Gas–0.13% | ||||||
BP Capital Markets America, Inc., 3.54%, 04/06/2027 | 165,000 | 161,236 | ||||
Chevron USA, Inc., 1.02%, 08/12/2027 | 185,000 | 164,394 | ||||
Exxon Mobil Corp., 3.29%, 03/19/2027 | 150,000 | 147,150 | ||||
472,780 | ||||||
Internet Services & Infrastructure–0.06% | ||||||
VeriSign, Inc., 5.25%, 04/01/2025 | 200,000 | 200,928 | ||||
Investment Banking & Brokerage–0.35% | ||||||
Goldman Sachs Group, Inc. (The), | ||||||
3.85%, 01/26/2027 | 165,000 | 159,833 | ||||
1.54%, 09/10/2027(h) | 150,000 | 133,006 | ||||
1.95%, 10/21/2027(h) | 100,000 | 89,616 | ||||
Morgan Stanley, | ||||||
2.72%, 07/22/2025(h) | 150,000 | 144,750 | ||||
3.63%, 01/20/2027 | 175,000 | 168,622 | ||||
1.59%, 05/04/2027(h) | 200,000 | 179,997 | ||||
1.51%, 07/20/2027(h) | 200,000 | 177,823 | ||||
Nomura Holdings, Inc. (Japan), 1.65%, 07/14/2026 | 200,000 | 177,364 | ||||
1,231,011 | ||||||
IT Consulting & Other Services–0.14% | ||||||
International Business Machines Corp., | ||||||
3.45%, 02/19/2026 | 100,000 | 97,428 | ||||
3.30%, 05/15/2026 | 100,000 | 96,993 | ||||
1.70%, 05/15/2027 | 100,000 | 90,439 | ||||
Kyndryl Holdings, Inc., 2.05%, 10/15/2026 | 225,000 | 197,287 | ||||
482,147 | ||||||
Life & Health Insurance–0.07% | ||||||
Principal Financial Group, Inc., 3.40%, 05/15/2025 | 239,000 | 231,557 | ||||
Managed Health Care–0.02% | ||||||
Centene Corp., 2.45%, 07/15/2028 | 75,000 | 65,255 |
Principal Amount | Value | |||||
Multi-line Insurance–0.04% | ||||||
Boardwalk Pipelines L.P., 5.95%, 06/01/2026 | $ | 140,000 | $ 142,887 | |||
Multi-Utilities–0.04% | ||||||
Public Service Enterprise Group, Inc., 2.88%, 06/15/2024 | 150,000 | 146,101 | ||||
Office REITs–0.04% | ||||||
Office Properties Income Trust, 2.65%, 06/15/2026 | 199,000 | 139,429 | ||||
Oil & Gas Equipment & Services–0.03% | ||||||
Baker Hughes Holdings LLC/Baker Hughes Co-Obligor, Inc., 3.34%, 12/15/2027 | 100,000 | 95,152 | ||||
Oil & Gas Refining & Marketing–0.04% | ||||||
HF Sinclair Corp., 5.88%, 04/01/2026 | 140,000 | 142,005 | ||||
Oil & Gas Storage & Transportation–0.17% | ||||||
Cheniere Corpus Christi Holdings LLC, 5.13%, 06/30/2027 | 160,000 | 160,830 | ||||
Energy Transfer L.P., | ||||||
3.90%, 05/15/2024 | 381,000 | 374,606 | ||||
4.40%, 03/15/2027 | 65,000 | 63,445 | ||||
598,881 | ||||||
Other Specialized REITs–0.12% | ||||||
EPR Properties, 4.75%, 12/15/2026 | 100,000 | 91,160 | ||||
GLP Capital L.P./GLP Financing II, Inc., 3.35%, 09/01/2024 | 327,000 | 316,726 | ||||
407,886 | ||||||
Packaged Foods & Meats–0.08% | ||||||
Conagra Brands, Inc., 1.38%, 11/01/2027 | 130,000 | 112,161 | ||||
Tyson Foods, Inc., 4.00%, 03/01/2026 | 190,000 | 186,562 | ||||
298,723 | ||||||
Paper & Plastic Packaging Products & Materials–0.03% | ||||||
Berry Global, Inc., 1.57%, 01/15/2026 | 100,000 | 90,918 | ||||
Passenger Airlines–0.06% | ||||||
Delta Air Lines Pass-Through Trust, Series 2019-1, Class AA, 3.20%, 04/25/2024 | 150,000 | 146,352 | ||||
Southwest Airlines Co., 3.45%, 11/16/2027 | 65,000 | 61,093 | ||||
207,445 | ||||||
Pharmaceuticals–0.42% | ||||||
Bristol-Myers Squibb Co., 0.75%, 11/13/2025 | 400,000 | 367,641 | ||||
Merck & Co., Inc., 2.75%, 02/10/2025 | 184,000 | 179,066 | ||||
Perrigo Finance Unlimited Co., 3.90%, 12/15/2024 | 435,000 | 421,282 | ||||
Royalty Pharma PLC, 1.20%, 09/02/2025 | 275,000 | 250,850 | ||||
Utah Acquisition Sub, Inc., 3.95%, 06/15/2026 | 200,000 | 191,443 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 | Invesco Fundamental Alternatives Fund |
Principal Amount | Value | |||||
Pharmaceuticals–(continued) | ||||||
Viatris, Inc., 2.30%, 06/22/2027 | $ | 75,000 | $ 66,171 | |||
1,476,453 | ||||||
Regional Banks–0.12% | ||||||
Santander Holdings USA, Inc., 4.40%, 07/13/2027 | 100,000 | 95,407 | ||||
Truist Financial Corp., 4.00%, 05/01/2025 | 350,000 | 339,490 | ||||
434,897 | ||||||
Retail REITs–0.10% | ||||||
Realty Income Corp., 4.88%, 06/01/2026 | 185,000 | 185,204 | ||||
Simon Property Group L.P., 3.30%, 01/15/2026 | 95,000 | 91,425 | ||||
Spirit Realty L.P., 4.45%, 09/15/2026 | 90,000 | 87,320 | ||||
363,949 | ||||||
Semiconductor Materials & Equipment–0.11% | ||||||
NXP B.V./NXP Funding LLC/NXP USA, Inc. (China), 2.70%, 05/01/2025 | 415,000 | 395,089 | ||||
Semiconductors–0.05% | ||||||
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.88%, 01/15/2027 | 100,000 | 97,208 | ||||
Micron Technology, Inc., 4.19%, 02/15/2027 | 100,000 | 96,498 | ||||
193,706 | ||||||
Specialty Chemicals–0.03% | ||||||
PPG Industries, Inc., 1.20%, 03/15/2026 | 100,000 | 90,789 | ||||
Steel–0.06% | ||||||
ArcelorMittal S.A. (Luxembourg), 4.55%, 03/11/2026 | 200,000 | 196,595 | ||||
Technology Distributors–0.02% | ||||||
Avnet, Inc., 4.63%, 04/15/2026 | 90,000 | 88,686 | ||||
Technology Hardware, Storage & Peripherals–0.12% | ||||||
Apple, Inc., | ||||||
3.25%, 02/23/2026 | 185,000 | 181,157 | ||||
3.20%, 05/11/2027 | 75,000 | 73,223 | ||||
HP, Inc., 1.45%, 06/17/2026 | 206,000 | 186,300 | ||||
440,680 | ||||||
Telecom Tower REITs–0.12% | ||||||
American Tower Corp., | ||||||
1.30%, 09/15/2025 | 200,000 | 183,926 | ||||
3.65%, 03/15/2027 | 135,000 | 129,256 | ||||
3.55%, 07/15/2027 | 135,000 | 128,188 | ||||
441,370 | ||||||
Tobacco–0.11% | ||||||
Altria Group, Inc., 4.40%, 02/14/2026 | 200,000 | 198,673 | ||||
B.A.T Capital Corp. (United Kingdom), 3.22%, 09/06/2026 | 200,000 | 189,824 | ||||
388,497 |
Principal Amount | Value | |||||||||
Transaction & Payment Processing Services–0.06% | ||||||||||
Global Payments, Inc., 2.15%, 01/15/2027 | $ | 145,000 | $ 130,180 | |||||||
Western Union Co. (The), 1.35%, 03/15/2026 | 100,000 | 90,113 | ||||||||
220,293 | ||||||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 26,520,431 | ||||||||
Non-U.S. Dollar Denominated Bonds & Notes–3.82%(k) | ||||||||||
Aerospace & Defense–0.09% |
| |||||||||
Thales S.A. (France), 0.75%, 01/23/2025(j) | EUR | 300,000 | 315,285 | |||||||
Agricultural Products & Services–0.03% | ||||||||||
Archer-Daniels-Midland Co., 1.00%, 09/12/2025 | EUR | 100,000 | 104,193 | |||||||
Apparel, Accessories & Luxury Goods–0.03% | ||||||||||
PVH Corp., 3.13%, 12/15/2027(j) | EUR | 100,000 | 105,774 | |||||||
Automobile Manufacturers–0.20% |
| |||||||||
BMW Finance N.V. (Germany), 1.00%, 01/21/2025(j) | EUR | 100,000 | 106,544 | |||||||
Mercedes-Benz International Finance B.V. (Germany), 2.00%, 08/22/2026(j) | EUR | 70,000 | 74,935 | |||||||
Nissan Motor Co. Ltd. (Japan), 2.65%, 03/17/2026(j) | EUR | 100,000 | 103,738 | |||||||
RCI Banque S.A. (France), 1.75%, 04/10/2026(j) | EUR | 50,000 | 51,248 | |||||||
Volkswagen Financial Services AG (Germany), | ||||||||||
0.13%, 02/12/2027(j) | EUR | 150,000 | 143,862 | |||||||
2.25%, 10/01/2027(j) | EUR | 100,000 | 103,373 | |||||||
Volkswagen Leasing GmbH (Germany), | ||||||||||
1.50%, 06/19/2026(j) | EUR | 35,000 | 35,846 | |||||||
0.38%, 07/20/2026(j) | EUR | 75,000 | 73,829 | |||||||
693,375 | ||||||||||
Automotive Parts & Equipment–0.03% | ||||||||||
Magna International, Inc. (Canada), 1.50%, 09/25/2027 | EUR | 100,000 | 101,799 | |||||||
Brewers–0.07% | ||||||||||
Anheuser-Busch InBev S.A./N.V. (Belgium), 2.88%, 09/25/2024(j) | EUR | 242,000 | 266,764 | |||||||
Broadcasting–0.12% | ||||||||||
ITV PLC (United Kingdom), 1.38%, 09/26/2026(j) | EUR | 200,000 | 203,255 | |||||||
TDF Infrastructure S.A.S.U. (France), 2.50%, 04/07/2026(j) | EUR | 200,000 | 209,996 | |||||||
413,251 | ||||||||||
Cable & Satellite–0.06% | ||||||||||
SES S.A. (Luxembourg), 1.63%, 03/22/2026(j) | EUR | 200,000 | 205,070 | |||||||
Commercial & Residential Mortgage Finance–0.07% | ||||||||||
Aareal Bank AG (Germany), 0.50%, 04/07/2027(j) | EUR | 300,000 | 261,132 | |||||||
Construction & Engineering–0.06% | ||||||||||
ISS Global A/S (Denmark), 0.88%, 06/18/2026(j) | EUR | 100,000 | 100,575 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12 | Invesco Fundamental Alternatives Fund |
Principal Amount | Value | |||||||||
Construction & Engineering–(continued) | ||||||||||
Worley US Finance Sub Ltd. (Australia), 0.88%, 06/09/2026(j) | EUR | 100,000 | $ 99,074 | |||||||
199,649 | ||||||||||
Construction Machinery & Heavy Transportation Equipment– 0.03% | ||||||||||
Metso Outotec OYJ (Finland), 1.13%, 06/13/2024(j) | EUR | 100,000 | 106,743 | |||||||
Construction Materials–0.02% | ||||||||||
HeidelbergCement Finance (Luxembourg) S.A. (Germany), 1.63%, 04/07/2026(j) | EUR | 70,000 | 73,104 | |||||||
Diversified Banks–1.17% | ||||||||||
Banco Bilbao Vizcaya Argentaria S.A. (Spain), 0.38%, 10/02/2024(j) | EUR | 500,000 | 525,906 | |||||||
Banco Santander S.A. (Spain), | ||||||||||
3.13%, 01/19/2027(j) | EUR | 100,000 | 105,876 | |||||||
0.50%, 02/04/2027(j) | EUR | 100,000 | 96,702 | |||||||
Bankinter S.A. (Spain), 0.88%, 07/08/2026(j) | EUR | 100,000 | 99,072 | |||||||
Banque Federative du Credit Mutuel S.A. (France), | ||||||||||
1.25%, 01/14/2025(j) | EUR | 100,000 | 105,444 | |||||||
2.13%, 09/12/2026(j) | EUR | 100,000 | 103,459 | |||||||
0.63%, 11/19/2027(j) | EUR | 100,000 | 94,383 | |||||||
Belfius Bank S.A. (Belgium), 0.01%, 10/15/2025(j) | EUR | 300,000 | 302,468 | |||||||
BNP Paribas S.A. (France), | ||||||||||
1.50%, 11/17/2025(j) | EUR | 100,000 | 105,470 | |||||||
2.88%, 10/01/2026(j) | EUR | 200,000 | 211,186 | |||||||
0.25%, 04/13/2027(h)(j) | EUR | 100,000 | 98,195 | |||||||
BPCE S.A. (France), 0.63%, 09/26/2024(j) | EUR | 300,000 | 315,988 | |||||||
Credit Agricole S.A. (France), | ||||||||||
1.00%, 09/16/2024(j) | EUR | 100,000 | 106,057 | |||||||
1.38%, 03/13/2025(j) | EUR | 300,000 | 317,057 | |||||||
0.38%, 10/21/2025(j) | EUR | 100,000 | 102,131 | |||||||
de Volksbank N.V. (Netherlands), 0.01%, 09/16/2024(j) | EUR | 200,000 | 209,599 | |||||||
ING Groep N.V. (Netherlands), 1.13%, 02/14/2025(j) | EUR | 100,000 | 105,422 | |||||||
Mediobanca Banca di Credito Finanziario S.p.A. (Italy), 0.88%, 01/15/2026(j) | EUR | 100,000 | 102,165 | |||||||
National Australia Bank Ltd. (Australia), 1.25%, 05/18/2026(j) | EUR | 100,000 | 103,938 | |||||||
Natwest Group PLC (United Kingdom), 4.07%, 09/06/2028(h)(i)(j) | EUR | 125,000 | 136,536 | |||||||
Nordea Bank Abp (Finland), 1.13%, 02/12/2025(j) | EUR | 100,000 | 105,320 | |||||||
Skandinaviska Enskilda Banken AB (Sweden), 0.75%, 08/09/2027(j) | EUR | 300,000 | 287,245 | |||||||
Standard Chartered PLC (United Kingdom), 0.90%, 07/02/2027(h)(j) | EUR | 100,000 | 98,858 | |||||||
Swedbank AB (Sweden), 0.30%, 05/20/2027(h)(j) | EUR | 200,000 | 194,945 | |||||||
Volkswagen Bank GmbH (Germany), 2.50%, 07/31/2026(j) | EUR | 100,000 | 104,977 | |||||||
4,138,399 |
Principal Amount | Value | |||||||||
Diversified Capital Markets–0.08% | ||||||||||
Deutsche Bank AG (Germany), | ||||||||||
2.63%, 02/12/2026(j) | EUR | 100,000 | $ 103,872 | |||||||
0.75%, 02/17/2027(h)(j) | EUR | 100,000 | 97,771 | |||||||
Macquarie Group Ltd. (Australia), 0.63%, 02/03/2027(j) | EUR | 100,000 | 96,979 | |||||||
298,622 | ||||||||||
Diversified Chemicals–0.09% | ||||||||||
BASF SE (Germany), | ||||||||||
0.25%, 06/05/2027(j) | EUR | 200,000 | 197,014 | |||||||
3.13%, 06/29/2028(j) | EUR | 100,000 | 109,962 | |||||||
306,976 | ||||||||||
Diversified Financial Services–0.18% | ||||||||||
Clearstream Banking AG (Germany), 0.00%, 12/01/2025(j) | EUR | 200,000 | 201,772 | |||||||
JAB Holdings B.V. (Luxembourg), 1.75%, 06/25/2026(j) | EUR | 100,000 | 103,635 | |||||||
LeasePlan Corp. N.V. (Netherlands), 3.50%, 04/09/2025(j) | EUR | 294,000 | 319,788 | |||||||
625,195 | ||||||||||
Electric Utilities–0.14% | ||||||||||
AusNet Services Holdings Pty. Ltd. (Australia), 1.50%, 02/26/2027(j) | EUR | 200,000 | 203,436 | |||||||
EDP Finance B.V. (Portugal), 1.50%, 11/22/2027(j) | EUR | 100,000 | 100,901 | |||||||
Elenia Verkko OYJ (Finland), 0.38%, 02/06/2027(j) | EUR | 200,000 | 193,703 | |||||||
498,040 | ||||||||||
Food Retail–0.03% | ||||||||||
ELO SACA (France), 2.88%, 01/29/2026(j) | EUR | 100,000 | 106,034 | |||||||
Gas Utilities–0.03% | ||||||||||
2i Rete Gas S.p.A. (Italy), 1.75%, 08/28/2026(j) | EUR | 115,000 | 118,752 | |||||||
Health Care Equipment–0.06% | ||||||||||
Becton, Dickinson and Co., 1.90%, 12/15/2026 | EUR | 100,000 | 104,405 | |||||||
Zimmer Biomet Holdings, Inc., 2.43%, 12/13/2026 | EUR | 100,000 | 105,617 | |||||||
210,022 | ||||||||||
Health Care Services–0.01% | ||||||||||
Fresenius Medical Care AG & Co. KGaA (Germany), 0.63%, 11/30/2026(j) | EUR | 50,000 | 49,830 | |||||||
Health Care Supplies–0.03% | ||||||||||
EssilorLuxottica S.A. (France), 2.38%, 04/09/2024(j) | EUR | 100,000 | 109,178 | |||||||
Hotels, Resorts & Cruise Lines–0.03% | ||||||||||
InterContinental Hotels Group PLC (United Kingdom), 2.13%, 05/15/2027(j) | EUR | 100,000 | 103,578 | |||||||
Household Appliances–0.03% | ||||||||||
Whirlpool Finance Luxembourg S.a.r.l., 1.10%, 11/09/2027 | EUR | 100,000 | 98,572 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13 | Invesco Fundamental Alternatives Fund |
Principal Amount | Value | |||||||||
Household Products–0.02% | ||||||||||
Procter & Gamble Co. (The), 4.88%, 05/11/2027 | EUR | 50,000 | $ 59,091 | |||||||
Integrated Oil & Gas–0.12% | ||||||||||
Eni S.p.A. (Italy), 1.00%, 03/14/2025(j) | EUR | 179,000 | 188,971 | |||||||
Shell International Finance B.V. (Netherlands), 0.38%, 02/15/2025(j) | EUR | 222,000 | 232,506 | |||||||
421,477 | ||||||||||
Investment Banking & Brokerage–0.03% | ||||||||||
Goldman Sachs Group, Inc. (The), 0.25%, 01/26/2028(j) | EUR | 100,000 | 92,520 | |||||||
IT Consulting & Other Services–0.09% | ||||||||||
DXC Technology Co., 1.75%, 01/15/2026 | EUR | 100,000 | 103,259 | |||||||
International Business Machines Corp., 1.25%, 01/29/2027 | EUR | 200,000 | 204,401 | |||||||
307,660 | ||||||||||
Life & Health Insurance–0.03% | ||||||||||
Ethias S.A. (Belgium), 5.00%, 01/14/2026(j) | EUR | 100,000 | 110,250 | |||||||
Multi-line Insurance–0.10% | ||||||||||
Cloverie PLC for Zurich Insurance Co. Ltd. (Switzerland), 1.75%, 09/16/2024(j) | EUR | 150,000 | 160,635 | |||||||
New York Life Global Funding, 0.25%, 01/23/2027(j) | EUR | 200,000 | 194,732 | |||||||
355,367 | ||||||||||
Multi-Sector Holdings–0.09% | ||||||||||
Berkshire Hathaway, Inc., 1.13%, 03/16/2027 | EUR | 200,000 | 202,009 | |||||||
Groupe Bruxelles Lambert N.V. (Belgium), 1.88%, 06/19/2025(j) | EUR | 100,000 | 106,394 | |||||||
308,403 | ||||||||||
Office REITs–0.14% | ||||||||||
Globalworth Real Estate Investments Ltd. (Poland), 2.95%, 07/29/2026(j) | EUR | 100,000 | 86,668 | |||||||
Inmobiliaria Colonial SOCIMI S.A. (Spain), 1.63%, 11/28/2025(j) | EUR | 400,000 | 417,688 | |||||||
504,356 | ||||||||||
Oil & Gas Exploration & Production–0.03% | ||||||||||
APA Infrastructure Ltd. (Australia), 2.00%, 03/22/2027(j) | EUR | 100,000 | 102,073 | |||||||
Packaged Foods & Meats–0.03% | ||||||||||
JDE Peet’s N.V. (Netherlands), 0.00%, 01/16/2026(j) | EUR | 100,000 | 99,432 | |||||||
Passenger Airlines–0.04% | ||||||||||
easyJet FinCo B.V. (United Kingdom), 1.88%, 03/03/2028(j) | EUR | 135,000 | 130,749 | |||||||
Pharmaceuticals–0.09% | ||||||||||
Bayer AG (Germany), 0.38%, 07/06/2024(j) | EUR | 200,000 | 212,409 |
Principal Amount | Value | |||||||||
Pharmaceuticals–(continued) | ||||||||||
Novartis Finance S.A. (Switzerland), 1.63%, 11/09/2026(j) | EUR | 100,000 | $ 104,495 | |||||||
316,904 | ||||||||||
Precious Metals & Minerals–0.03% | ||||||||||
Anglo American Capital PLC (South Africa), 1.63%, 03/11/2026(j) | EUR | 100,000 | 104,456 | |||||||
Rail Transportation–0.04% | ||||||||||
Autostrade Per L’Italia S.p.A. (Italy), 2.00%, 12/04/2028(j) | EUR | 135,000 | 129,858 | |||||||
Real Estate Operating Companies–0.05% | ||||||||||
CPI Property Group S.A. (Czech Republic), 2.75%, 05/12/2026(j) | EUR | 100,000 | 89,789 | |||||||
Samhallsbyggnadsbolaget i Norden AB (Sweden), 1.13%, 09/04/2026(j) | EUR | 100,000 | 80,270 | |||||||
170,059 | ||||||||||
Regional Banks–0.03% | ||||||||||
SpareBank 1 SMN (Norway), 0.01%, 02/18/2028(j) | EUR | 140,000 | 127,379 | |||||||
Renewable Electricity–0.03% | ||||||||||
Southern Power Co., 1.85%, 06/20/2026 | EUR | 100,000 | 104,065 | |||||||
Restaurants–0.05% | ||||||||||
Sodexo S.A. (France), 0.75%, 04/27/2025(j) | EUR | 170,000 | 177,507 | |||||||
Telecom Tower REITs–0.03% | ||||||||||
American Tower Corp., 1.95%, 05/22/2026 | EUR | 100,000 | 104,201 | |||||||
Tobacco–0.03% | ||||||||||
Imperial Brands Finance PLC (United Kingdom), 3.38%, 02/26/2026(j) | EUR | 100,000 | 108,296 | |||||||
Transaction & Payment Processing Services–0.03% | ||||||||||
Euronet Worldwide, Inc., 1.38%, 05/22/2026 | EUR | 110,000 | 109,380 | |||||||
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $15,058,333) |
| 13,452,820 | ||||||||
Shares | ||||||||||
Preferred Stocks–0.00% | ||||||||||
Oil & Gas Storage & Transportation–0.00% | ||||||||||
Southcross Energy Partners L.P., Series A, Pfd., (Acquired 05/07/2019-10/31/2019; Cost $68,449) (Cost $68,449)(d)(e) |
| 68,466 | 1,369 | |||||||
Principal Amount | ||||||||||
Variable Rate Senior Loan Interests–0.00%(l)(m) | ||||||||||
Advertising–0.00% | ||||||||||
Checkout Holding Corp., Term Loan, 17.52%, 08/15/2023 | $ | 6,872 | 426 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14 | Invesco Fundamental Alternatives Fund |
Principal Amount | Value | |||||
Oil & Gas Drilling–0.00% | ||||||
Lealand Finance Co. B.V., PIK Term Loan, 3.00% PIK Rate, 6.02% Cash Rate, 06/30/2025(n) | $ | 1,068 | $ 719 | |||
Total Variable Rate Senior Loan Interests |
| 1,145 | ||||
Shares | ||||||
Money Market Funds–26.83% | ||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(o)(p) | 94,507,166 | 94,507,166 | ||||
TOTAL INVESTMENTS IN SECURITIES |
| 307,279,316 |
Shares | Value | |||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||
Money Market Funds–4.63% | ||||||
Invesco Private Government Fund, | 4,565,152 | $ 4,565,152 | ||||
Invesco Private Prime Fund, 4.99%(o)(p)(q) | 11,738,962 | 11,738,962 | ||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 16,304,114 | ||||
TOTAL INVESTMENTS IN SECURITIES–91.86% |
| 323,583,430 | ||||
OTHER ASSETS LESS LIABILITIES–8.14% |
| 28,667,034 | ||||
NET ASSETS–100.00% | $352,250,464 |
Investment Abbreviations:
EUR Pfd. PIK REIT Wts. | - Euro - Preferred - Pay-in-Kind - Real Estate Investment Trust - Warrants |
Notes to Consolidated Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2023. |
(c) | Non-income producing security. |
(d) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(e) | Restricted security. The aggregate value of these securities at April 30, 2023 was $25,059, which represented less than 1% of the Fund’s Net Assets. |
(f) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1O. |
(g) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(h) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(i) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2023. |
(j) | 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, 2023 was $12,212,489, which represented 3.47% of the Fund’s Net Assets. |
(k) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(l) | Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years. |
(m) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
(n) | All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
(o) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2023 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | $ | 96,450,226 | $ | 56,592,437 | $ | (58,535,497 | ) | $ | - | $ | - | $ | 94,507,166 | $ | 2,096,618 | ||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 3,757,237 | 29,625,097 | (28,817,182 | ) | - | - | 4,565,152 | 65,822 | * | ||||||||||||||||||||||||||
Invesco Private Prime Fund | 9,659,107 | 70,645,153 | (68,565,419 | ) | (819 | ) | 940 | 11,738,962 | 174,885 | * | |||||||||||||||||||||||||
Total | $ | 109,866,570 | $ | 156,862,687 | $ | (155,918,098 | ) | $ | (819 | ) | $ | 940 | $ | 110,811,280 | $ | 2,337,325 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15 | Invesco Fundamental Alternatives Fund |
(p) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(q) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1K. |
Open Futures Contracts(a) | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Gasoline Reformulated Blendstock Oxygenate Blending | 17 | May-2023 | $ | 1,806,491 | $ | (143,259 | ) | $ | (143,259 | ) | ||||||||||
| ||||||||||||||||||||
Low Sulphur Gas Oil | 19 | June-2023 | 1,319,550 | 16,387 | 16,387 | |||||||||||||||
| ||||||||||||||||||||
Soybean | 10 | July-2023 | 709,625 | (34,943 | ) | (34,943 | ) | |||||||||||||
| ||||||||||||||||||||
Subtotal | (161,815 | ) | (161,815 | ) | ||||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
EURO STOXX 50 Index | 77 | June-2023 | 3,665,362 | 159,467 | 159,467 | |||||||||||||||
| ||||||||||||||||||||
FTSE 100 Index | 48 | June-2023 | 4,742,976 | 157,827 | 157,827 | |||||||||||||||
| ||||||||||||||||||||
MSCI Emerging Markets Index | 17 | June-2023 | 836,570 | (9,415 | ) | (9,415 | ) | |||||||||||||
| ||||||||||||||||||||
Tokyo Stock Price Index | 56 | June-2023 | 8,458,879 | 166,613 | 166,613 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 474,492 | 474,492 | ||||||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Australia 10 Year Bonds | 66 | June-2023 | 5,347,930 | (22,896 | ) | (22,896 | ) | |||||||||||||
| ||||||||||||||||||||
Japan 10 Year Bonds | 9 | June-2023 | 9,816,140 | 58,033 | 58,033 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 2 Year Notes | 34 | June-2023 | 7,009,578 | 49,177 | 49,177 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 134 | June-2023 | 14,705,453 | 219,387 | 219,387 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 303,701 | 303,701 | ||||||||||||||||||
| ||||||||||||||||||||
Subtotal–Long Futures Contracts | 616,378 | 616,378 | ||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Coffee ’C’ | 12 | July-2023 | (836,775 | ) | (34,536 | ) | (34,536 | ) | ||||||||||||
| ||||||||||||||||||||
Corn | 24 | July-2023 | (702,000 | ) | 65,866 | 65,866 | ||||||||||||||
| ||||||||||||||||||||
Cotton No. 2 | 18 | December-2023 | (729,900 | ) | 25,021 | 25,021 | ||||||||||||||
| ||||||||||||||||||||
Gold 100 Oz. | 25 | June-2023 | (4,997,750 | ) | (41,278 | ) | (41,278 | ) | ||||||||||||
| ||||||||||||||||||||
Lean Hogs | 5 | December-2023 | (160,200 | ) | 4,595 | 4,595 | ||||||||||||||
| ||||||||||||||||||||
Live Cattle | 4 | December-2023 | (274,840 | ) | (4,823 | ) | (4,823 | ) | ||||||||||||
| ||||||||||||||||||||
LME Primary Aluminum | 24 | June-2023 | (1,406,400 | ) | 43,339 | 43,339 | ||||||||||||||
| ||||||||||||||||||||
Natural Gas | 23 | November-2023 | (838,810 | ) | (9,278 | ) | (9,278 | ) | ||||||||||||
| ||||||||||||||||||||
Silver | 20 | July-2023 | (2,522,600 | ) | 28,015 | 28,015 | ||||||||||||||
| ||||||||||||||||||||
Soybean Oil | 8 | July-2023 | (248,016 | ) | 24,524 | 24,524 | ||||||||||||||
| ||||||||||||||||||||
Wheat | 44 | July-2023 | (1,394,250 | ) | 182,820 | 182,820 | ||||||||||||||
| ||||||||||||||||||||
Subtotal | 284,265 | 284,265 | ||||||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
E-Mini Russell 2000 Index | 31 | June-2023 | (2,750,940 | ) | 55,155 | 55,155 | ||||||||||||||
| ||||||||||||||||||||
E-Mini S&P 500 Index | 279 | June-2023 | (58,429,575 | ) | (2,184,582 | ) | (2,184,582 | ) | ||||||||||||
| ||||||||||||||||||||
Subtotal | (2,129,427 | ) | (2,129,427 | ) | ||||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Euro-Bobl | 48 | June-2023 | (6,239,577 | ) | (150,815 | ) | (150,815 | ) | ||||||||||||
| ||||||||||||||||||||
Euro-Bund | 30 | June-2023 | (4,481,209 | ) | (84,604 | ) | (84,604 | ) | ||||||||||||
| ||||||||||||||||||||
Euro-Schatz | 37 | June-2023 | (4,308,403 | ) | (31,319 | ) | (31,319 | ) | ||||||||||||
| ||||||||||||||||||||
Long Gilt | 32 | June-2023 | (4,080,316 | ) | (42,247 | ) | (42,247 | ) | ||||||||||||
| ||||||||||||||||||||
U.S. Treasury Long Bonds | 23 | June-2023 | (3,028,094 | ) | (174,699 | ) | (174,699 | ) | ||||||||||||
| ||||||||||||||||||||
Subtotal | (483,684 | ) | (483,684 | ) | ||||||||||||||||
| ||||||||||||||||||||
Subtotal–Short Futures Contracts | (2,328,846 | ) | (2,328,846 | ) | ||||||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | (1,712,468 | ) | $ | (1,712,468 | ) | ||||||||||||||
|
(a) | Futures contracts collateralized by $1,101,898 cash held with Merrill Lynch International, the futures commission merchant. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16 | Invesco Fundamental Alternatives Fund |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||
Settlement Date | Contract to | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Counterparty | Deliver | Receive | ||||||||||||||||||
Currency Risk | ||||||||||||||||||||
05/10/2023 | Bank of America, N.A. | USD | 143,328 | EUR | 132,000 | $ 2,186 | ||||||||||||||
05/10/2023 | Goldman Sachs International | USD | 75,700 | EUR | 71,000 | 2,569 | ||||||||||||||
05/10/2023 | J.P. Morgan Chase Bank, N.A. | USD | 87,657 | EUR | 80,000 | 534 | ||||||||||||||
05/10/2023 | Morgan Stanley and Co. International PLC | USD | 720,828 | EUR | 661,000 | 7,850 | ||||||||||||||
Subtotal–Appreciation | 13,139 | |||||||||||||||||||
Currency Risk | ||||||||||||||||||||
05/10/2023 | Bank of America, N.A. | EUR | 13,248,000 | USD | 14,220,022 | (384,381) | ||||||||||||||
05/10/2023 | J.P. Morgan Chase Bank, N.A. | EUR | 82,000 | USD | 87,314 | (3,082) | ||||||||||||||
Subtotal–Depreciation | (387,463) | |||||||||||||||||||
Total Forward Foreign Currency Contracts | $(374,324) |
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 (Depreciation) | |||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||||||
Markit CDX North America High Yield Index, Series 39, Version 2 | Sell | 5.00% | Quarterly | 12/20/2027 | 4.463% | USD 2,257,200 | $50,898 | $45,132 | $(5,766) |
(a) | Centrally cleared swap agreements collateralized by $213,698 cash held with Citigroup Global Markets, Inc.. |
(b) | Implied credit spreads represent the current level, as of April 30, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Open Over-The-Counter Total Return Swap Agreements(a) | ||||||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(b) | Fixed Rate | Payment Frequency | Number of Contracts | Maturity Date | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||||||||||||||||||
Cargill, Inc. | Receive | Cargill Single Commodity Index | 0.41 | % | Monthly | 2,150 | June–2023 | $677,498 | $– | $ 87,718 | $87,718 | |||||||||||||||||||||||||
Merrill Lynch International | Receive | MLCX Dynamic Enhanced Copper Excess Return Index | 0.25 | Monthly | 360 | January–2024 | 291,672 | – | 0 | 0 | ||||||||||||||||||||||||||
Merrill Lynch International | Receive | Merrill Lynch Soybean Meal Index | 0.30 | Monthly | 1,020 | January–2024 | 905,155 | – | 0 | 0 | ||||||||||||||||||||||||||
Royal Bank of Canada | Receive | RBC Enhanced Crude Oil 01 Excess Return Index | 0.30 | Monthly | 2,430 | August–2023 | 751,956 | – | 0 | 0 | ||||||||||||||||||||||||||
Subtotal – Appreciation | – | 87,718 | 87,718 | |||||||||||||||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | BNP Paribas Commodity Daily Dynamic Curve CO Index | 0.25 | Monthly | 1,930 | August–2023 | 1,067,910 | – | (38,735 | ) | (38,735 | ) | ||||||||||||||||||||||||
UBS AG | Receive | UBS Modified Roll Select Heating Oil Strategy | 0.30 | Monthly | 10,400 | December–2023 | 1,213,348 | – | (121,740 | ) | (121,740 | ) | ||||||||||||||||||||||||
Subtotal – Depreciation | – | (160,475 | ) | (160,475 | ) | |||||||||||||||||||||||||||||||
Total – Total Return Swap Agreements |
| $– | $ (72,757) | $ (72,757) |
(a) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
(b) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17 | Invesco Fundamental Alternatives Fund |
Reference Entity Components | ||||
Reference Entity | Underlying Components | Percentage | ||
Cargill Single Commodity Index | ||||
Long Futures Contracts | ||||
| ||||
sugar | 100% | |||
| ||||
MLCX Dynamic Enhanced Copper Excess Return Index | ||||
Long Futures Contracts | ||||
| ||||
Copper | 100% | |||
| ||||
Merrill Lynch Soybean Meal Index | ||||
Long Futures Contracts | ||||
| ||||
Soybean Meal | 100% | |||
| ||||
RBC Enhanced Crude Oil 01 Excess Return Index | ||||
Long Futures Contracts | ||||
| ||||
Crude Oil | 100% | |||
| ||||
BNP Paribas Commodity Daily Dynamic Curve CO Index | ||||
Long Futures Contracts | ||||
| ||||
Brent Crude | 100% | |||
| ||||
UBS Modified Roll Select Heating Oil Strategy | ||||
Long Futures Contracts | ||||
| ||||
Heating Oil | 100% | |||
|
Abbreviations:
EUR –Euro
USD –U.S. Dollar
Volatility Contribution*
Strategy | Annualized Volatility Contribution | Volatility Contribution as % of Investment Strategy | ||||||||
Long/Short Credit | 0.22 | % | 5.46 | % | ||||||
Long/Short Equity | 3.24 | 81.99 | ||||||||
Long/Short Macro | 0.50 | 12.55 | ||||||||
Total | 3.96 | % | 100.00 | % |
The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.
* | Excluding money market fund holdings, if any. |
Data presented here are as of April 30, 2023.
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18 | Invesco Fundamental Alternatives Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $196,968,897)* | $ | 212,772,150 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $110,811,626) | 110,811,280 | |||
| ||||
Other investments: | ||||
Variation margin receivable – non-LME futures contracts | 7,976,773 | |||
| ||||
Unrealized appreciation on LME futures contracts | 43,339 | |||
| ||||
Swaps receivable – OTC | 2,913 | |||
| ||||
Unrealized appreciation on swap agreements – OTC | 87,718 | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 13,139 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral – exchange-traded futures contracts | 1,101,898 | |||
| ||||
Cash collateral – centrally cleared swap agreements | 213,698 | |||
| ||||
Cash | 35,440,363 | |||
| ||||
Foreign currencies, at value (Cost $208,854) | 211,106 | |||
| ||||
Receivable for: | ||||
Investments sold | 197,332 | |||
| ||||
Fund shares sold | 33,599 | |||
| ||||
Dividends | 645,981 | |||
| ||||
Interest | 539,961 | |||
| ||||
Investments matured, at value (Cost $72,288) | 44,435 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 108,507 | |||
| ||||
Other assets | 35,634 | |||
| ||||
Total assets | 370,279,826 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Variation margin payable – centrally cleared swap agreements | 328,482 | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 387,463 | |||
| ||||
Swaps payable – OTC | 75,881 | |||
| ||||
Unrealized depreciation on swap agreements—OTC | 160,475 | |||
| ||||
Payable for: | ||||
Investments purchased | 675 | |||
| ||||
Dividends | 27 | |||
| ||||
Fund shares reacquired | 321,755 | |||
| ||||
Collateral upon return of securities loaned | 16,304,460 | |||
| ||||
Accrued fees to affiliates | 209,812 | |||
| ||||
Accrued other operating expenses | 87,497 | |||
| ||||
Trustee deferred compensation and retirement plans | 152,835 | |||
| ||||
Total liabilities | 18,029,362 | |||
| ||||
Net assets applicable to shares outstanding | $ | 352,250,464 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 333,113,380 | ||
| ||||
Distributable earnings | 19,137,084 | |||
| ||||
$ | 352,250,464 | |||
| ||||
Net Assets: | ||||
Class A | $ | 289,799,087 | ||
| ||||
Class C | $ | 12,011,227 | ||
| ||||
Class R | $ | 10,531,444 | ||
| ||||
Class Y | $ | 37,177,838 | ||
| ||||
Class R5 | $ | 9,296 | ||
| ||||
Class R6 | $ | 2,721,572 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 11,878,090 | |||
| ||||
Class C | 564,370 | |||
| ||||
Class R | 454,281 | |||
| ||||
Class Y | 1,483,524 | |||
| ||||
Class R5 | 380 | |||
| ||||
Class R6 | 107,926 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 24.40 | ||
| ||||
Maximum offering price per share (Net asset value of $24.40 ÷ 94.50%) | $ | 25.82 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 21.28 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 23.18 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 25.06 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 24.46 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 25.22 | ||
|
* | At April 30, 2023, securities with an aggregate value of $16,149,527 were on loan to brokers. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
19 | Invesco Fundamental Alternatives Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest | $ | 915,704 | ||
| ||||
Dividends (net of foreign withholding taxes of $344) | 1,232,511 | |||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $17,309) | 2,113,927 | |||
| ||||
Other income | 6,408 | |||
| ||||
Total investment income | 4,268,550 | |||
| ||||
Expenses: | ||||
Advisory fees | 1,526,262 | |||
| ||||
Administrative services fees | 26,338 | |||
| ||||
Custodian fees | 11,475 | |||
| ||||
Distribution fees: | ||||
Class A | 368,510 | |||
| ||||
Class C | 64,806 | |||
| ||||
Class R | 26,391 | |||
| ||||
Transfer agent fees – A, C, R and Y | 336,133 | |||
| ||||
Transfer agent fees – R5 | 2 | |||
| ||||
Transfer agent fees – R6 | 453 | |||
| ||||
Trustees’ and officers’ fees and benefits | 12,725 | |||
| ||||
Registration and filing fees | 41,017 | |||
| ||||
Reports to shareholders | 27,340 | |||
| ||||
Professional services fees | 36,710 | |||
| ||||
Other | 9,007 | |||
| ||||
Total expenses | 2,487,169 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (75,565 | ) | ||
| ||||
Net expenses | 2,411,604 | |||
| ||||
Net investment income | 1,856,946 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | 10,945,303 | |||
| ||||
Affiliated investment securities | 940 | |||
| ||||
Foreign currencies | 64,392 | |||
| ||||
Forward foreign currency contracts | (330,008 | ) | ||
| ||||
Futures contracts | (4,948,741 | ) | ||
| ||||
Swap agreements | (51,945 | ) | ||
| ||||
5,679,941 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | (82,510 | ) | ||
| ||||
Affiliated investment securities | (819 | ) | ||
| ||||
Foreign currencies | 2,469 | |||
| ||||
Forward foreign currency contracts | (991,345 | ) | ||
| ||||
Futures contracts | (2,204,652 | ) | ||
| ||||
Swap agreements | (175,524 | ) | ||
| ||||
(3,452,381 | ) | |||
| ||||
Net realized and unrealized gain | 2,227,560 | |||
| ||||
Net increase in net assets resulting from operations | $ | 4,084,506 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
20 | Invesco Fundamental Alternatives Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 1,856,946 | $ | (764,127 | ) | |||
| ||||||||
Net realized gain | 5,679,941 | 19,079,317 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (3,452,381 | ) | (48,527,205 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 4,084,506 | (30,212,015 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (7,437,590 | ) | (10,053,694 | ) | ||||
| ||||||||
Class C | (382,548 | ) | (437,899 | ) | ||||
| ||||||||
Class R | (279,243 | ) | (337,935 | ) | ||||
| ||||||||
Class Y | (1,191,849 | ) | (3,063,993 | ) | ||||
| ||||||||
Class R5 | (235 | ) | (334 | ) | ||||
Class R6 | (79,119 | ) | (200,601 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (9,370,584 | ) | (14,094,456 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (10,883,999 | ) | (25,043,386 | ) | ||||
| ||||||||
Class C | (1,618,785 | ) | (3,772,748 | ) | ||||
| ||||||||
Class R | (18,899 | ) | (864,204 | ) | ||||
| ||||||||
Class Y | (15,595,349 | ) | (42,113,326 | ) | ||||
| ||||||||
Class R5 | – | 100 | ||||||
| ||||||||
Class R6 | (899,122 | ) | (2,569,837 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (29,016,154 | ) | (74,363,401 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (34,302,232 | ) | (118,669,872 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 386,552,696 | 505,222,568 | ||||||
| ||||||||
End of period | $ | 352,250,464 | $ | 386,552,696 | ||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
21 | Invesco Fundamental Alternatives Fund |
Consolidated Financial Highlights
(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(c) | Supplemental ratio of expenses to average net assets with fee waivers (excluding interest, facilities and maintenance fees) | Ratio of net investment income (loss) to average net assets | Portfolio turnover (d) | ||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $24.75 | $0.12 | $0.15 | $0.27 | $ – | $(0.62 | ) | $(0.62 | ) | $24.40 | 1.09 | % | $289,799 | 1.33 | %(e) | 1.37 | %(e) | 1.33 | %(e) | 1.01 | %(e) | 27 | % | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 27.26 | (0.05 | ) | (1.69 | ) | (1.74 | ) | (0.77 | ) | – | (0.77 | ) | 24.75 | (6.60 | ) | 304,850 | 1.33 | 1.34 | 1.33 | (0.20 | ) | 29 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 26.50 | (0.08 | ) | 1.35 | 1.27 | (0.51 | ) | – | (0.51 | ) | 27.26 | 4.84 | 362,634 | 1.32 | 1.38 | 1.32 | (0.27 | ) | 74 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 26.83 | 0.28 | (0.07 | ) | 0.21 | (0.54 | ) | – | (0.54 | ) | 26.50 | 0.77 | 386,680 | 1.56 | 1.61 | 1.52 | 1.07 | 223 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 27.42 | 0.69 | (0.82 | ) | (0.13 | ) | (0.46 | ) | – | (0.46 | ) | 26.83 | (0.45 | ) | 441,060 | 1.64 | 1.71 | 1.38 | 2.59 | 289 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 27.21 | 0.45 | 0.19 | 0.64 | (0.43 | ) | – | (0.43 | ) | 27.42 | 2.34 | 477,683 | 1.96 | 1.99 | 1.35 | 1.67 | 155 | |||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 21.75 | 0.03 | 0.12 | 0.15 | – | (0.62 | ) | (0.62 | ) | 21.28 | 0.68 | 12,011 | 2.08 | (e) | 2.12 | (e) | 2.08 | (e) | 0.26 | (e) | 27 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 24.02 | (0.21 | ) | (1.50 | ) | (1.71 | ) | (0.56 | ) | – | (0.56 | ) | 21.75 | (7.32 | ) | 13,916 | 2.08 | 2.09 | 2.08 | (0.95 | ) | 29 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 23.36 | (0.25 | ) | 1.21 | 0.96 | (0.30 | ) | – | (0.30 | ) | 24.02 | 4.11 | 19,401 | 2.08 | 2.13 | 2.08 | (1.03 | ) | 74 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 23.60 | 0.07 | (0.07 | ) | 0.00 | (0.24 | ) | – | (0.24 | ) | 23.36 | 0.00 | 27,495 | 2.33 | 2.35 | 2.28 | 0.30 | 223 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 24.17 | 0.43 | (0.74 | ) | (0.31 | ) | (0.26 | ) | – | (0.26 | ) | 23.60 | (1.25 | ) | 38,860 | 2.42 | 2.47 | 2.14 | 1.81 | 289 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 24.03 | 0.22 | 0.16 | 0.38 | (0.24 | ) | – | (0.24 | ) | 24.17 | 1.59 | 89,319 | 2.72 | 2.75 | 2.11 | 0.90 | 155 | |||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 23.57 | 0.09 | 0.14 | 0.23 | – | (0.62 | ) | (0.62 | ) | 23.18 | 0.97 | 10,531 | 1.58 | (e) | 1.62 | (e) | 1.58 | (e) | 0.76 | (e) | 27 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 26.00 | (0.11 | ) | (1.62 | ) | (1.73 | ) | (0.70 | ) | – | (0.70 | ) | 23.57 | (6.87 | ) | 10,728 | 1.58 | 1.59 | 1.58 | (0.45 | ) | 29 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 25.29 | (0.14 | ) | 1.29 | 1.15 | (0.44 | ) | – | (0.44 | ) | 26.00 | 4.58 | 12,755 | 1.58 | 1.63 | 1.58 | (0.53 | ) | 74 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 25.60 | 0.21 | (0.07 | ) | 0.14 | (0.45 | ) | – | (0.45 | ) | 25.29 | 0.51 | 13,867 | 1.82 | 1.86 | 1.78 | 0.81 | 223 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 26.18 | 0.59 | (0.78 | ) | (0.19 | ) | (0.39 | ) | – | (0.39 | ) | 25.60 | (0.70 | ) | 16,296 | 1.91 | 1.97 | 1.64 | 2.33 | 289 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 26.02 | 0.36 | 0.17 | 0.53 | (0.37 | ) | – | (0.37 | ) | 26.18 | 2.07 | 19,426 | 2.23 | 2.26 | 1.62 | 1.40 | 155 | |||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 25.37 | 0.16 | 0.15 | 0.31 | – | (0.62 | ) | (0.62 | ) | 25.06 | 1.22 | 37,178 | 1.08 | (e) | 1.12 | (e) | 1.08 | (e) | 1.26 | (e) | 27 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 27.94 | 0.02 | (1.75 | ) | (1.73 | ) | (0.84 | ) | – | (0.84 | ) | 25.37 | (6.41 | ) | 53,389 | 1.08 | 1.09 | 1.08 | 0.05 | 29 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 27.14 | (0.01 | ) | 1.39 | 1.38 | (0.58 | ) | – | (0.58 | ) | 27.94 | 5.14 | 103,680 | 1.07 | 1.13 | 1.07 | (0.02 | ) | 74 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 27.47 | 0.36 | (0.08 | ) | 0.28 | (0.61 | ) | – | (0.61 | ) | 27.14 | 1.00 | 165,217 | 1.31 | 1.35 | 1.27 | 1.32 | 223 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 28.07 | 0.77 | (0.84 | ) | (0.07 | ) | (0.53 | ) | – | (0.53 | ) | 27.47 | (0.22 | ) | 266,741 | 1.41 | 1.47 | 1.14 | 2.82 | 289 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 27.86 | 0.52 | 0.19 | 0.71 | (0.50 | ) | – | (0.50 | ) | 28.07 | 2.59 | 352,559 | 1.73 | 1.76 | 1.12 | 1.90 | 155 | |||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 24.76 | 0.17 | 0.15 | 0.32 | – | (0.62 | ) | (0.62 | ) | 24.46 | 1.29 | 9 | 0.93 | (e) | 0.96 | (e) | 0.93 | (e) | 1.41 | (e) | 27 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 27.29 | 0.05 | (1.69 | ) | (1.64 | ) | (0.89 | ) | – | (0.89 | ) | 24.76 | (6.25 | ) | 9 | 0.93 | 0.94 | 0.93 | 0.20 | 29 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 26.55 | 0.03 | 1.35 | 1.38 | (0.64 | ) | – | (0.64 | ) | 27.29 | 5.24 | 10 | 0.91 | 0.92 | 0.91 | 0.14 | 74 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 26.87 | 0.39 | (0.05 | ) | 0.34 | (0.66 | ) | – | (0.66 | ) | 26.55 | 1.23 | 10 | 1.14 | 1.15 | 1.10 | 1.49 | 223 | ||||||||||||||||||||||||||||||||||||||||||
Period ended 10/31/19(f) | 26.56 | 0.35 | (0.04 | ) | 0.31 | – | – | – | 26.87 | 1.17 | 10 | 1.25 | (e) | 1.35 | (e) | 1.02 | (e) | 2.97 | (e) | 289 | ||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 25.51 | 0.18 | 0.15 | 0.33 | – | (0.62 | ) | (0.62 | ) | 25.22 | 1.29 | 2,722 | 0.93 | (e) | 0.96 | (e) | 0.93 | (e) | 1.41 | (e) | 27 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 28.09 | 0.06 | (1.75 | ) | (1.69 | ) | (0.89 | ) | – | (0.89 | ) | 25.51 | (6.25 | ) | 3,660 | 0.93 | 0.94 | 0.93 | 0.20 | 29 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 27.27 | 0.04 | 1.42 | 1.46 | (0.64 | ) | – | (0.64 | ) | 28.09 | 5.40 | 6,743 | 0.90 | 0.92 | 0.90 | 0.15 | 74 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 27.60 | 0.41 | (0.08 | ) | 0.33 | (0.66 | ) | – | (0.66 | ) | 27.27 | 1.19 | 215,374 | 1.12 | 1.14 | 1.08 | 1.51 | 223 | ||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 28.21 | 0.82 | (0.86 | ) | (0.04 | ) | (0.57 | ) | – | (0.57 | ) | 27.60 | (0.08 | ) | 175,917 | 1.23 | 1.29 | 0.96 | 3.00 | 289 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 28.00 | 0.57 | 0.19 | 0.76 | (0.55 | ) | – | (0.55 | ) | 28.21 | 2.77 | 211,904 | 1.58 | 1.61 | 0.97 | 2.05 | 155 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include indirect expenses from affiliated fund fees and expenses of 0.02%, 0.01% and 0.00% for the years ended October 31, 2020, 2019 and 2018, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | Annualized. |
(f) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
22 | Invesco Fundamental Alternatives Fund |
Notes to Consolidated Financial Statements
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Fundamental Alternatives Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Fundamental Alternatives Fund (Cayman) Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to commodity-linked derivatives primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives (including commodity futures, financial futures, options and swap contracts), and certain fixed-income securities and other investments that may serve as margin or collateral for its derivatives positions. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the
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inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
J. | Structured Securities – The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by |
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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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, the Fund paid the Adviser $713 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations.
L. | Securities Sold Short – The Fund may enter into short sales of securities which it concurrently holds (against the box) or for which it holds no corresponding position (naked). Securities sold short represent a liability of the Fund to acquire specific securities at prevailing market prices at a future date in order to satisfy the obligation to deliver the securities sold. The liability is recorded on the books of the Fund at the market value of the common stock determined each day in accordance with the procedures for security valuations. The Fund will incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund realizes a gain if the price of the security declines between those dates. |
The Fund is required to segregate cash or securities as collateral in margin accounts at a level that is equal to the obligation to the broker who delivered such securities to the buyer on behalf of the Fund. The Short stock rebate, if any, presented in the Consolidated Statement of Operations represents the net income earned on short sale proceeds held on deposit with the broker and margin interest earned or incurred on short sale transactions. Margin interest is the income earned (or expense incurred) as a result of the market value of securities sold short being less than (or greater than) the proceeds received from the short sales.
M. | 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.
N. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
O. | 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 or asset. Initial margin |
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deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.
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 traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, volatility, variance, index and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index, such as the Consumer Price Index, over the term of the swap, and the other party pays a compounded fixed rate.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund will initially enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated, at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
A volatility swap involves an exchange between the Fund and a Counterparty of periodic payments based on the measured volatility of an underlying security, currency, commodity, interest rate, index or other reference asset over a specified time frame. Depending on the structure of the swap, either the Fund’s or the Counterparty’s payment obligation will typically be based on the realized volatility of the reference asset as measured by changes in its price or level over a specified time period, while the other party’s payment obligation will be based on a specified rate representing expected volatility for the reference asset at the time the swap is executed, or the measured volatility of a different reference asset over a specified time period. The Fund will typically make or lose money on a volatility swap depending on the magnitude of the reference asset’s volatility, or size of the movements in its price, over a specified time period, rather than general increases or decreases in the price of the reference asset. Volatility swaps are often used to speculate on future volatility levels, to trade the spread between realized and expected volatility, or to decrease the volatility exposure of other investments held by the Fund. Variance swaps are similar to volatility swaps, except payments are based on the difference between the implied and measured volatility mathematically squared.
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
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(loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate, the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of April 30, 2023, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
Q. | Bank Loan Risk – Although the resale, or secondary market for floating rate loans has grown substantially over the past decade, both in overall size and number of market participants, there is no organized exchange or board of trade on which floating rate loans are traded. Instead, the secondary market for floating rate loans is a private, unregulated interdealer or interbank resale market. Such a market may therefore be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods, which may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. Similar to other asset classes, bank loan funds may be exposed to counterparty credit risk, or the risk than an entity with which the Fund has unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund seeks to manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. |
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. |
T. | Other Risks – Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs. |
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate* | |
First $1.0 billion | 0.850% | |
Next $ 500 million | 0.800% | |
Next $ 500 million | 0.750% | |
Next $ 500 million | 0.700% | |
Next $ 500 million | 0.650% | |
Next $ 500 million | 0.600% | |
Next $ 500 million | 0.550% | |
Over $4 billion | 0.500% |
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.84%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least June 30, 2023, 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 total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of 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
27 | Invesco Fundamental Alternatives Fund |
exceed the expense limits above. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $58,731.
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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $11,843 in front-end sales commissions from the sale of Class A shares and $0 and $43 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | 125,004,616 | $ | 600 | $ | 23,090 | $ | 125,028,306 | ||||||||
| ||||||||||||||||
U.S. Treasury Securities | – | 47,768,079 | – | 47,768,079 | ||||||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 26,520,431 | – | 26,520,431 | ||||||||||||
| ||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | – | 13,452,820 | – | 13,452,820 | ||||||||||||
Preferred Stocks | – | – | 1,369 | 1,369 | ||||||||||||
| ||||||||||||||||
Variable Rate Senior Loan Interests | – | 1,145 | – | 1,145 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 94,507,166 | 16,304,114 | – | 110,811,280 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 219,511,782 | 104,047,189 | 24,459 | 323,583,430 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Investments Matured | – | 44,435 | – | 44,435 | ||||||||||||
| ||||||||||||||||
Futures Contracts | 1,256,226 | – | – | 1,256,226 | ||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 13,139 | – | 13,139 | ||||||||||||
| ||||||||||||||||
Swap Agreements | – | 87,718 | – | 87,718 | ||||||||||||
| ||||||||||||||||
1,256,226 | 145,292 | – | 1,401,518 | |||||||||||||
|
28 | Invesco Fundamental Alternatives Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | $ | (2,968,694 | ) | $ | – | $ | – | $ | (2,968,694 | ) | ||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (387,463 | ) | – | (387,463 | ) | ||||||||||
| ||||||||||||||||
Swap Agreements | – | (166,241 | ) | – | (166,241 | ) | ||||||||||
| ||||||||||||||||
(2,968,694 | ) | (553,704 | ) | – | (3,522,398 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | (1,712,468 | ) | (408,412 | ) | – | (2,120,880 | ) | |||||||||
| ||||||||||||||||
Total Investments | $ | 217,799,314 | $ | 103,638,777 | $ | 24,459 | $ | 321,462,550 | ||||||||
|
* | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Investments matured is shown at value. |
NOTE 4–Derivative Investments
The Fund may enter into an 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, 2023:
Value | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
Derivative Assets | Commodity Risk | Currency Risk | Equity Risk | Interest Rate Risk | Total | |||||||||||||||||||
| ||||||||||||||||||||||||
Unrealized appreciation on futures contracts –Exchange-Traded(a) |
| $ | 390,567 | $ | – | $ | 539,062 | $ | 326,597 | $ | 1,256,226 | |||||||||||||
| ||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding |
| – | 13,139 | – | – | 13,139 | ||||||||||||||||||
| ||||||||||||||||||||||||
Unrealized appreciation on swap agreements – OTC |
| 87,718 | – | – | – | 87,718 | ||||||||||||||||||
| ||||||||||||||||||||||||
Total Derivative Assets |
| 478,285 | 13,139 | 539,062 | 326,597 | 1,357,083 | ||||||||||||||||||
| ||||||||||||||||||||||||
Derivatives not subject to master netting agreements |
| (390,567 | ) | – | (539,062 | ) | (326,597 | ) | (1,256,226 | ) | ||||||||||||||
| ||||||||||||||||||||||||
Total Derivative Assets subject to master netting agreements |
| $ | 87,718 | $ | 13,139 | $ | – | $ | – | $ | 100,857 | |||||||||||||
| ||||||||||||||||||||||||
Value | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
Derivative Liabilities | Commodity Risk | Credit Risk | Currency Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||||||||||
| ||||||||||||||||||||||||
Unrealized depreciation on futures contracts –Exchange-Traded(a) | $ | (268,117 | ) | $ | – | $ | – | $ | (2,193,997 | ) | $ | (506,580 | ) | $ | (2,968,694 | ) | ||||||||
| ||||||||||||||||||||||||
Unrealized depreciation on swap agreements – Centrally Cleared(a) | – | (5,766 | ) | – | – | – | (5,766 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | – | – | (387,463 | ) | – | – | (387,463 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Unrealized depreciation on swap agreements – OTC | (160,475 | ) | – | – | – | – | (160,475 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Total Derivative Liabilities | (428,592 | ) | (5,766 | ) | (387,463 | ) | (2,193,997 | ) | (506,580 | ) | (3,522,398 | ) | ||||||||||||
| ||||||||||||||||||||||||
Derivatives not subject to master netting agreements | 268,117 | 5,766 | – | 2,193,997 | 506,580 | 2,974,460 | ||||||||||||||||||
| ||||||||||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (160,475 | ) | $ | – | $ | (387,463 | ) | $ | – | $ | – | $ | (547,938 | ) | |||||||||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
29 | Invesco Fundamental Alternatives 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, 2023.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Swap Agreements | Total Assets | Forward Foreign Currency Contracts | Swap Agreements | Total Liabilities | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Bank of America, N.A. | $ | 2,186 | $ | - | $ | 2,186 | $ | (384,381 | ) | $ | - | $ | (384,381 | ) | $ | (382,195 | ) | $- | $- | $ | (382,195 | ) | ||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BNP Paribas S.A. | - | - | - | - | (38,891 | ) | (38,891 | ) | (38,891 | ) | - | - | (38,891 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | - | - | - | - | (12 | ) | (12 | ) | (12 | ) | - | - | (12 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Cargill, Inc. | - | 87,718 | 87,718 | - | (192 | ) | (192 | ) | 87,526 | - | - | 87,526 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Goldman Sachs International | 2,569 | - | 2,569 | - | - | - | 2,569 | - | - | 2,569 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 534 | - | 534 | (3,082 | ) | - | (3,082 | ) | (2,548 | ) | - | - | (2,548 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Merrill Lynch International | - | - | - | - | (75,140 | ) | (75,140 | ) | (75,140 | ) | - | - | (75,140 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Morgan Stanley and Co. International PLC | 7,850 | - | 7,850 | - | - | - | 7,850 | - | - | 7,850 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Royal Bank of Canada | - | 2,913 | 2,913 | - | (189 | ) | (189 | ) | 2,724 | - | - | 2,724 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
UBS AG | - | - | - | - | (121,932 | ) | (121,932 | ) | (121,932 | ) | - | - | (121,932 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Total | $ | 13,139 | $ | 90,631 | $ | 103,770 | $ | (387,463 | ) | $ | (236,356 | ) | $ | (623,819 | ) | $ | (520,049 | ) | $- | $- | $ | (520,049 | ) | |||||||||||||
|
Effect of Derivative Investments for the six months ended April 30, 2023
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 | $ | - | $ | - | $ | (330,008 | ) | $ | - | $ | - | $ | (330,008 | ) | ||||||||||
| ||||||||||||||||||||||||
Futures contracts | (1,741,568 | ) | - | - | (355,402 | ) | (2,851,771 | ) | (4,948,741 | ) | ||||||||||||||
| ||||||||||||||||||||||||
Swap agreements | (352,737 | ) | 300,792 | - | - | - | (51,945 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||||||||||
Forward foreign currency contracts | - | - | (991,345 | ) | - | - | (991,345 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Futures contracts | (959,440 | ) | - | - | (3,080,979 | ) | 1,835,767 | (2,204,652 | ) | |||||||||||||||
| ||||||||||||||||||||||||
Swap agreements | (72,734 | ) | (102,790 | ) | - | - | - | (175,524 | ) | |||||||||||||||
| ||||||||||||||||||||||||
Total | $ | (3,126,479 | ) | $ | 198,002 | $ | (1,321,353 | ) | $ | (3,436,381 | ) | $ | (1,016,004 | ) | $ | (8,702,215 | ) | |||||||
|
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | Futures Contracts | Swap Agreements | ||||
| ||||||
Average notional value | $14,890,683 | $147,772,062 | $6,217,041 | |||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $16,834.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the
30 | Invesco Fundamental Alternatives Fund |
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 carryforward 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, 2022.
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $60,182,861 and $91,280,212, 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 |
| $ | 24,422,786 | |||||
| ||||||||
Aggregate unrealized (depreciation) of investments |
| (12,638,899 | ) | |||||
| ||||||||
Net unrealized appreciation of investments | $ | 11,783,887 | ||||||
|
Cost of investments for tax purposes is $309,678,663.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 183,785 | $ | 4,485,293 | 395,352 | $ | 10,205,406 | ||||||||||
| ||||||||||||||||
Class C | 34,327 | 731,715 | 60,433 | 1,373,972 | ||||||||||||
| ||||||||||||||||
Class R | 17,753 | 412,984 | 61,564 | 1,522,679 | ||||||||||||
| ||||||||||||||||
Class Y | 64,524 | 1,618,961 | 295,017 | 7,871,209 | ||||||||||||
| ||||||||||||||||
Class R5 | - | - | 3 | 100 | ||||||||||||
| ||||||||||||||||
Class R6 | 7,882 | 199,658 | 34,256 | 914,617 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 290,320 | 7,051,880 | 354,615 | 9,471,770 | ||||||||||||
| ||||||||||||||||
Class C | 17,410 | 369,953 | 17,796 | 420,343 | ||||||||||||
| ||||||||||||||||
Class R | 12,058 | 278,537 | 13,155 | 335,466 | ||||||||||||
| ||||||||||||||||
Class Y | 39,960 | 996,195 | 92,274 | 2,520,915 | ||||||||||||
| ||||||||||||||||
Class R6 | 2,477 | 62,103 | 5,510 | 151,127 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 48,637 | 1,184,133 | 91,844 | 2,343,122 | ||||||||||||
| ||||||||||||||||
Class C | (55,645 | ) | (1,184,133 | ) | (104,243 | ) | (2,343,122 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (963,156 | ) | (23,605,305 | ) | (1,823,686 | ) | (47,063,684 | ) | ||||||||
| ||||||||||||||||
Class C | (71,668 | ) | (1,536,320 | ) | (141,872 | ) | (3,223,941 | ) | ||||||||
| ||||||||||||||||
Class R | (30,600 | ) | (710,420 | ) | (110,177 | ) | (2,722,349 | ) | ||||||||
| ||||||||||||||||
Class Y | (725,164 | ) | (18,210,505 | ) | (1,994,015 | ) | (52,505,450 | ) | ||||||||
| ||||||||||||||||
Class R6 | (45,920 | ) | (1,160,883 | ) | (136,328 | ) | (3,635,581 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (1,173,020 | ) | $ | (29,016,154 | ) | (2,888,502 | ) | $ | (74,363,401 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 11% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
31 | Invesco Fundamental Alternatives 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before | |||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | Annualized Expense Ratio | |||||||
Class A | $1,000.00 | $1,010.90 | $6.63 | $1,018.20 | $6.66 | 1.33% | ||||||
Class C | 1,000.00 | 1,006.80 | 10.35 | 1,014.48 | 10.39 | 2.08 | ||||||
Class R | 1,000.00 | 1,009.70 | 7.87 | 1,016.96 | 7.90 | 1.58 | ||||||
Class Y | 1,000.00 | 1,012.20 | 5.39 | 1,019.44 | 5.41 | 1.08 | ||||||
Class R5 | 1,000.00 | 1,012.90 | 4.64 | 1,020.18 | 4.66 | 0.93 | ||||||
Class R6 | 1,000.00 | 1,012.90 | 4.64 | 1,020.18 | 4.66 | 0.93 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
32 | Invesco Fundamental Alternatives 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-FALT-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Global Allocation Fund
Nasdaq:
A: QVGIX ∎ C: QGRCX ∎ R: QGRNX ∎ Y: QGRYX ∎ R5: GLALX ∎ R6: QGRIX
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary |
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 12.56 | % | ||
Class C Shares | 12.16 | |||
Class R Shares | 12.39 | |||
Class Y Shares | 12.69 | |||
Class R5 Shares | 12.78 | |||
Class R6 Shares | 12.80 | |||
Custom Invesco Global Allocation Index▼ | 9.60 | |||
MSCI All Country World Index∎ | 12.68 | |||
Bloomberg Global Aggregate USD Hedged Index∎ | 4.82 | |||
Source(s): ▼Invesco, RIMES Technologies Corp.; ∎RIMES Technologies Corp. | ||||
The MSCI 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. |
| |||
The Custom Invesco Global Allocation Index is composed of 60% MSCI All Country World Index/40% Bloomberg Global Aggregate USD Hedged Index. |
| |||
The Bloomberg Global Aggregate USD Hedged Index tracks fixed-income performance of regions around the world while hedging the currency back to the US dollar. |
| |||
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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Global Allocation Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (11/1/91) | 7.07 | % | ||
10 Years | 4.11 | |||
5 Years | 2.79 | |||
1 Year | -2.75 | |||
Class C Shares | ||||
Inception (9/1/93) | 6.85 | % | ||
10 Years | 4.08 | |||
5 Years | 3.18 | |||
1 Year | 1.20 | |||
Class R Shares | ||||
Inception (3/1/01) | 3.43 | % | ||
10 Years | 4.44 | |||
5 Years | 3.71 | |||
1 Year | 2.61 | |||
Class Y Shares | ||||
Inception (5/1/00) | 4.44 | % | ||
10 Years | 4.98 | |||
5 Years | 4.23 | |||
1 Year | 3.15 | |||
Class R5 Shares | ||||
10 Years | 4.87 | % | ||
5 Years | 4.30 | |||
1 Year | 3.33 | |||
Class R6 Shares | ||||
Inception (2/28/12) | 5.52 | % | ||
10 Years | 5.15 | |||
5 Years | 4.39 | |||
1 Year | 3.33 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Global Allocation Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Global Allocation Fund. Note: The Fund was subsequently renamed the Invesco Global Allocation Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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 Global Allocation Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Global Allocation Fund |
Consolidated Schedule of Investments(a)
April 30, 2023
(Unaudited)
Shares | Value | |||||
Exchange-Traded Funds–53.64% | ||||||
Invesco BulletShares 2025 Corporate Bond ETF(b) | 6,821,600 | $ 138,546,696 | ||||
Invesco High Yield Bond Factor ETF(c) | 1,076,000 | 23,203,940 | ||||
Invesco International Developed Dynamic Multifactor ETF(c) | 5,817,300 | 141,442,414 | ||||
Invesco Russell 1000® Dynamic Multifactor ETF(b)(c) | 4,586,860 | 219,435,382 | ||||
Invesco Russell 2000® Dynamic Multifactor ETF(c) | 1,607,300 | 55,162,536 | ||||
Total Exchange-Traded Funds | 577,790,968 | |||||
Common Stocks & Other Equity Interests–21.36% | ||||||
Advertising–0.04% | ||||||
Trade Desk, Inc. (The), Class A(d) | 7,044 | 453,211 | ||||
Aerospace & Defense–0.52% | ||||||
Airbus SE (France) | 28,562 | 4,009,482 | ||||
Axon Enterprise, Inc.(d) | 1,491 | 314,169 | ||||
CAE, Inc. (Canada)(d) | 2,324 | 52,300 | ||||
Howmet Aerospace, Inc. | 12,672 | 561,243 | ||||
TransDigm Group, Inc. | 887 | 678,555 | ||||
5,615,749 | ||||||
Air Freight & Logistics–0.40% | ||||||
United Parcel Service, Inc., Class B | 6,936 | 1,247,162 | ||||
ZTO Express (Cayman), Inc. (China) | 5,979 | 164,962 | ||||
ZTO Express (Cayman), Inc., ADR (China) | 103,814 | 2,873,571 | ||||
4,285,695 | ||||||
Apparel Retail–0.01% | ||||||
Lojas Renner S.A. (Brazil) | 44,695 | 141,940 | ||||
Apparel, Accessories & Luxury Goods–1.40% | ||||||
Brunello Cucinelli S.p.A. (Italy) | 5,334 | 509,852 | ||||
Cie Financiere Richemont S.A. (Switzerland) | 14,835 | 2,451,379 | ||||
Cie Financiere Richemont S.A., Wts., expiring 11/22/2023 (Switzerland)(d) | 36,082 | 46,422 | ||||
Hermes International (France) | 1,118 | 2,425,993 | ||||
Kering S.A. (France) | 3,082 | 1,972,573 | ||||
LVMH Moet Hennessy Louis Vuitton SE (France) | 6,630 | 6,370,998 | ||||
PRADA S.p.A. (Italy) | 185,000 | 1,359,914 | ||||
15,137,131 | ||||||
Application Software–1.14% | ||||||
Adobe, Inc.(d) | 4,882 | 1,843,248 | ||||
Cadence Design Systems, Inc.(d) | 2,759 | 577,872 | ||||
Dassault Systemes SE (France) | 16,213 | 658,690 | ||||
Datadog, Inc., Class A(d) | 1,518 | 102,283 | ||||
Fair Isaac Corp.(d) | 336 | 244,591 | ||||
HubSpot, Inc.(d) | 1,352 | 569,124 | ||||
Intuit, Inc. | 6,174 | 2,740,947 | ||||
Manhattan Associates, Inc.(d) | 4,829 | 800,069 |
Shares | Value | |||||
Application Software–(continued) | ||||||
Nice Ltd., ADR (Israel) | 1,961 | $ 400,064 | ||||
Procore Technologies, Inc.(d) | 4,093 | 218,607 | ||||
Roper Technologies, Inc. | 1,300 | 591,214 | ||||
Samsara, Inc., Class A(d) | 14,233 | 256,906 | ||||
SAP SE (Germany) | 12,431 | 1,683,907 | ||||
Splunk, Inc.(d) | 2,737 | 236,039 | ||||
Synopsys, Inc.(d) | 2,902 | 1,077,571 | ||||
Xero Ltd. (New Zealand)(d) | 4,218 | 261,784 | ||||
12,262,916 | ||||||
Asset Management & Custody Banks–0.09% |
| |||||
Ameriprise Financial, Inc. | 984 | 300,238 | ||||
Ares Management Corp., Class A | 4,142 | 362,798 | ||||
KKR & Co., Inc., Class A | 4,857 | 257,761 | ||||
920,797 | ||||||
Automotive Parts & Equipment–0.09% |
| |||||
Aptiv PLC(d) | 3,305 | 339,953 | ||||
Autoliv, Inc. (Sweden) | 2,883 | 247,390 | ||||
Mobileye Global, Inc., Class A (Israel)(d) | 9,441 | 355,359 | ||||
942,702 | ||||||
Automotive Retail–0.06% | ||||||
O’Reilly Automotive, Inc.(d) | 678 | 621,936 | ||||
Biotechnology–0.28% | ||||||
Abcam PLC, ADR (United Kingdom)(d) | 15,537 | 253,098 | ||||
Alnylam Pharmaceuticals, Inc.(d) | 1,113 | 221,710 | ||||
Argenx SE, ADR (Netherlands)(d) | 112 | 43,443 | ||||
BeiGene Ltd., ADR (China)(d) | 3,620 | 922,955 | ||||
BioMarin Pharmaceutical, Inc.(d) | 1,159 | 111,310 | ||||
CSL Ltd. (Australia) | 4,902 | 975,646 | ||||
Sarepta Therapeutics, Inc.(d) | 1,008 | 123,752 | ||||
Zai Lab Ltd., ADR (China)(d) | 10,078 | 352,528 | ||||
3,004,442 | ||||||
Brewers–0.11% | ||||||
Ambev S.A. (Brazil) | 422,402 | 1,199,168 | ||||
Broadline Retail–0.49% | ||||||
Alibaba Group Holding Ltd. | 14,700 | 154,193 | ||||
Amazon.com, Inc.(d) | 5,040 | 531,468 | ||||
Dollarama, Inc. (Canada) | 19,818 | 1,227,535 | ||||
JD.com, Inc., ADR (China) | 47,151 | 1,684,234 | ||||
Next PLC (United Kingdom) | 12,659 | 1,073,173 | ||||
PDD Holdings, Inc., ADR (China)(d) | 9,284 | 632,705 | ||||
5,303,308 | ||||||
Building Products–0.25% | ||||||
Assa Abloy AB, Class B (Sweden) | 44,137 | 1,051,113 | ||||
Daikin Industries Ltd. (Japan) | 5,900 | 1,073,405 | ||||
Trane Technologies PLC | 3,297 | 612,615 | ||||
2,737,133 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 | Invesco Global Allocation Fund |
Shares | Value | |||||
Cable & Satellite–0.03% | ||||||
Charter Communications, Inc., Class A(d) | 784 | $ 289,061 | ||||
Cargo Ground Transportation–0.06% |
| |||||
Old Dominion Freight Line, Inc. | 1,976 | 633,091 | ||||
Casinos & Gaming–0.27% | ||||||
Entain PLC (United Kingdom) | 31,443 | 572,416 | ||||
Flutter Entertainment PLC (Ireland)(d) | 7,337 | 1,470,081 | ||||
Las Vegas Sands Corp.(d) | 13,249 | 845,949 | ||||
2,888,446 | ||||||
Commodity Chemicals–0.22% | ||||||
LG Chem Ltd. (South Korea) | 4,229 | 2,358,302 | ||||
Communications Equipment–0.14% |
| |||||
Arista Networks, Inc.(d) | 4,114 | 658,898 | ||||
Motorola Solutions, Inc. | 3,054 | 889,936 | ||||
1,548,834 | ||||||
Construction & Engineering–0.18% |
| |||||
Comfort Systems USA, Inc. | 1,797 | 268,633 | ||||
Quanta Services, Inc. | 4,901 | 831,406 | ||||
Valmont Industries, Inc. | 813 | 236,225 | ||||
WillScot Mobile Mini Holdings Corp.(d) | 13,050 | 592,470 | ||||
1,928,734 | ||||||
Construction Machinery & Heavy Transportation | ||||||
Epiroc AB, Class A (Sweden) | 77,167 | 1,544,524 | ||||
Construction Materials–0.08% | ||||||
James Hardie Industries PLC, CDI (Australia) | 26,273 | 585,787 | ||||
Vulcan Materials Co. | 1,739 | 304,534 | ||||
890,321 | ||||||
Consumer Staples Merchandise Retail–0.15% | ||||||
Wal-Mart de Mexico S.A.B. de C.V., Series V (Mexico) | 402,068 | 1,621,063 | ||||
Copper–0.03% | ||||||
Antofagasta PLC (Chile) | 4,593 | 84,392 | ||||
Freeport-McMoRan, Inc. | 5,554 | 210,552 | ||||
294,944 | ||||||
Data Processing & Outsourced Services–0.04% | ||||||
ExlService Holdings, Inc.(d) | 2,148 | 383,160 | ||||
Distillers & Vintners–0.50% | ||||||
Davide Campari-Milano N.V. (Italy) | 104,774 | 1,350,182 | ||||
Pernod Ricard S.A. (France) | 17,370 | 4,012,479 | ||||
5,362,661 | ||||||
Diversified Banks–0.78% | ||||||
Banco Bradesco S.A., Preference Shares (Brazil) | 141,752 | 393,613 | ||||
Banco Santander Chile (Chile) | 9,486,009 | 453,589 | ||||
Credicorp Ltd. (Peru) | 4,891 | 662,633 | ||||
HDFC Bank Ltd. (India) | 6,476 | 134,002 | ||||
ICICI Bank Ltd., ADR (India) | 46,229 | 1,051,710 | ||||
Kotak Mahindra Bank Ltd. (India) | 183,235 | 4,360,274 | ||||
NU Holdings Ltd., Class A | 157,910 | 814,816 |
Shares | Value | |||||
Diversified Banks–(continued) | ||||||
PT Bank Central Asia Tbk (Indonesia) | 914,300 | $ 565,118 | ||||
Sberbank of Russia PJSC | 11,951 | 0 | ||||
8,435,755 | ||||||
Diversified Financial Services–0.57% |
| |||||
FirstRand Ltd. (South Africa) | 125,461 | 442,189 | ||||
Housing Development Finance Corp. Ltd. (India) | 166,822 | 5,675,684 | ||||
6,117,873 | ||||||
Diversified Metals & Mining–0.37% |
| |||||
Glencore PLC (Australia) | 95,482 | 563,400 | ||||
Grupo Mexico S.A.B. de C.V., Class B (Mexico) | 688,407 | 3,385,081 | ||||
3,948,481 | ||||||
Diversified Real Estate Activities–0.21% |
| |||||
DLF Ltd. (India) | 438,151 | 2,290,841 | ||||
Electrical Components & Equipment–0.18% |
| |||||
AMETEK, Inc. | 3,663 | 505,238 | ||||
Havells India Ltd. (India) | 18,713 | 281,809 | ||||
Rockwell Automation, Inc. | 1,723 | 488,315 | ||||
Schneider Electric SE (France) | 1,699 | 296,831 | ||||
WEG S.A. (Brazil) | 40,736 | 335,832 | ||||
1,908,025 | ||||||
Electronic Components–0.16% | ||||||
Murata Manufacturing Co. Ltd. (Japan) | 16,100 | 937,233 | ||||
Omron Corp. (Japan) | 2,600 | 152,790 | ||||
TDK Corp. (Japan) | 19,900 | 685,637 | ||||
1,775,660 | ||||||
Electronic Equipment & Instruments–0.28% |
| |||||
Keyence Corp. (Japan) | 6,600 | 2,978,645 | ||||
Environmental & Facilities Services–0.14% |
| |||||
Rentokil Initial PLC (United Kingdom) | 153,756 | 1,222,794 | ||||
Waste Connections, Inc. | 1,845 | 256,732 | ||||
1,479,526 | ||||||
Fertilizers & Agricultural Chemicals–0.03% |
| |||||
FMC Corp. | 2,745 | 339,227 | ||||
Financial Exchanges & Data–0.54% |
| |||||
B3 S.A. - Brasil, Bolsa, Balcao (Brazil) | 162,858 | 381,367 | ||||
FactSet Research Systems, Inc. | 826 | 340,056 | ||||
London Stock Exchange Group PLC (United Kingdom) | 13,741 | 1,440,623 | ||||
MarketAxess Holdings, Inc. | 1,065 | 339,064 | ||||
MSCI, Inc. | 994 | 479,555 | ||||
S&P Global, Inc. | 7,904 | 2,865,832 | ||||
5,846,497 | ||||||
Food Retail–0.22% | ||||||
Alimentation Couche-Tard, Inc. (Canada) | 26,642 | 1,329,691 | ||||
HelloFresh SE (Germany)(d) | 10,684 | 285,772 | ||||
Kobe Bussan Co. Ltd. (Japan) | 21,700 | 607,557 | ||||
Ocado Group PLC (United Kingdom)(d) | 24,498 | 156,324 | ||||
2,379,344 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 | Invesco Global Allocation Fund |
Shares | Value | |||||
Footwear–0.08% | ||||||
Deckers Outdoor Corp.(d) | 1,270 | $ 608,762 | ||||
On Holding AG, Class A (Switzerland)(d) | 8,369 | 271,574 | ||||
880,336 | ||||||
Health Care Distributors–0.03% |
| |||||
McKesson Corp. | 973 | 354,406 | ||||
Health Care Equipment–0.64% | ||||||
Boston Scientific Corp.(d) | 3,943 | 205,509 | ||||
DexCom, Inc.(d) | 6,291 | 763,350 | ||||
IDEXX Laboratories, Inc.(d) | 2,103 | 1,035,013 | ||||
Inspire Medical Systems, Inc.(d) | 1,356 | 362,906 | ||||
Insulet Corp.(d) | 2,026 | 644,349 | ||||
Intuitive Surgical, Inc.(d) | 1,872 | 563,884 | ||||
Medtronic PLC | 3,990 | 362,891 | ||||
MicroTech Medical Hangzhou Co. Ltd., H Shares (China)(d)(f) | 14,500 | 12,749 | ||||
ResMed, Inc. | 7,401 | 1,783,345 | ||||
Shockwave Medical, Inc.(d) | 1,415 | 410,576 | ||||
Siemens Healthineers AG (Germany)(f) | 12,694 | 789,502 | ||||
6,934,074 | ||||||
Health Care Facilities–0.04% | ||||||
Encompass Health Corp. | 6,104 | 391,572 | ||||
Health Care Services–0.05% | ||||||
Dr Lal PathLabs Ltd. (India)(f) | 16,789 | 401,233 | ||||
New Horizon Health Ltd. | 31,000 | 111,354 | ||||
512,587 | ||||||
Health Care Supplies–0.25% | ||||||
Align Technology, Inc.(d) | 795 | 258,614 | ||||
ConvaTec Group PLC (United Kingdom)(f) | 148,524 | 410,510 | ||||
Cooper Cos., Inc. (The) | 1,007 | 384,120 | ||||
EssilorLuxottica S.A. (France) | 4,922 | 972,963 | ||||
Hoya Corp. (Japan) | 6,000 | 632,030 | ||||
2,658,237 | ||||||
Homebuilding–0.10% | ||||||
D.R. Horton, Inc. | 7,330 | 804,981 | ||||
TopBuild Corp.(d) | 1,169 | 263,586 | ||||
1,068,567 | ||||||
Hotels, Resorts & Cruise Lines–0.63% |
| |||||
Amadeus IT Group S.A. (Spain)(d) | 29,466 | 2,073,071 | ||||
H World Group Ltd. (China) | 4,900 | 22,826 | ||||
H World Group Ltd., ADR (China) | 64,513 | 3,025,660 | ||||
Hilton Worldwide Holdings, Inc. | 3,322 | 478,434 | ||||
Marriott International, Inc., Class A | 2,520 | 426,737 | ||||
Trainline PLC (United Kingdom)(d)(f) | 248,555 | 779,976 | ||||
6,806,704 | ||||||
Human Resource & Employment Services–0.05% | ||||||
Benefit One, Inc. (Japan) | 15,000 | 206,960 | ||||
Paylocity Holding Corp.(d) | 1,983 | 383,294 | ||||
590,254 | ||||||
Industrial Conglomerates–0.16% |
| |||||
Hitachi Ltd. (Japan) | 9,800 | 543,775 | ||||
Siemens AG (Germany) | 1,836 | 301,216 |
Shares | Value | |||||
Industrial Conglomerates–(continued) |
| |||||
SM Investments Corp. (Philippines) | 53,454 | $ 864,287 | ||||
1,709,278 | ||||||
Industrial Machinery & Supplies & Components–0.50% | ||||||
Aalberts N.V. (Netherlands) | 10,004 | 461,302 | ||||
Atlas Copco AB, Class A (Sweden) | 184,106 | 2,665,540 | ||||
IDEX Corp. | 2,157 | 445,032 | ||||
Ingersoll Rand, Inc. | 6,546 | 373,253 | ||||
Lincoln Electric Holdings, Inc. | 2,222 | 372,852 | ||||
Parker-Hannifin Corp. | 1,791 | 581,860 | ||||
VAT Group AG (Switzerland)(f) | 1,348 | 475,568 | ||||
5,375,407 | ||||||
Insurance Brokers–0.04% | ||||||
Arthur J. Gallagher & Co. | 2,151 | 447,537 | ||||
Integrated Oil & Gas–0.15% | ||||||
Galp Energia SGPS S.A. (Portugal) | 28,164 | 341,291 | ||||
Novatek PJSC, GDR (Russia)(d)(e)(f) | 11,909 | 539,952 | ||||
TotalEnergies SE (France) | 11,939 | 761,096 | ||||
1,642,339 | ||||||
Interactive Home Entertainment–0.22% |
| |||||
NetEase, Inc., ADR (China) | 26,181 | 2,333,513 | ||||
Interactive Media & Services–1.43% |
| |||||
Alphabet, Inc., Class A(d) | 61,820 | 6,635,759 | ||||
Auto Trader Group PLC (United Kingdom)(f) | 83,351 | 667,123 | ||||
Meta Platforms, Inc., Class A(d) | 16,203 | 3,893,905 | ||||
Pinterest, Inc., Class A(d) | 10,378 | 238,694 | ||||
Rightmove PLC (United Kingdom) | 91,709 | 663,808 | ||||
Tencent Holdings Ltd. (China) | 74,317 | 3,287,579 | ||||
15,386,868 | ||||||
Internet Services & Infrastructure–0.03% |
| |||||
MongoDB, Inc.(d) | 1,269 | 304,509 | ||||
IT Consulting & Other Services–0.42% |
| |||||
Amdocs Ltd. | 2,403 | 219,274 | ||||
Capgemini SE (France) | 2,173 | 396,638 | ||||
EPAM Systems, Inc.(d) | 3,500 | 988,540 | ||||
Tata Consultancy Services Ltd. (India) | 75,066 | 2,964,009 | ||||
4,568,461 | ||||||
Life & Health Insurance–0.13% | ||||||
AIA Group Ltd. (Hong Kong) | 83,800 | 914,357 | ||||
Legal & General Group PLC (United Kingdom) | 162,173 | 478,936 | ||||
1,393,293 | ||||||
Life Sciences Tools & Services–0.80% |
| |||||
Agilent Technologies, Inc. | 11,573 | 1,567,331 | ||||
Avantor, Inc.(d) | 13,965 | 272,038 | ||||
Bruker Corp. | 3,166 | 250,526 | ||||
Charles River Laboratories International, Inc.(d) | 1,005 | 191,071 | ||||
Danaher Corp. | 1,258 | 298,033 | ||||
Illumina, Inc.(d) | 2,122 | 436,198 | ||||
IQVIA Holdings, Inc.(d) | 2,899 | 545,679 | ||||
Lonza Group AG (Switzerland) | 1,703 | 1,059,921 | ||||
Mettler-Toledo International, Inc.(d) | 435 | 648,802 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 | Invesco Global Allocation Fund |
Shares | Value | |||||
Life Sciences Tools & Services–(continued) |
| |||||
Repligen Corp.(d) | 1,219 | $ 184,837 | ||||
Samsung Biologics Co. Ltd. (South Korea)(d)(f) | 1,970 | 1,153,106 | ||||
Sartorius Stedim Biotech (France) | 2,469 | 662,671 | ||||
West Pharmaceutical Services, Inc. | 1,592 | 575,094 | ||||
Wuxi Biologics Cayman, Inc. (China)(d)(f) | 122,300 | 731,582 | ||||
8,576,889 | ||||||
Managed Health Care–0.07% | ||||||
Humana, Inc. | 1,048 | 555,953 | ||||
Molina Healthcare, Inc.(d) | 503 | 149,839 | ||||
705,792 | ||||||
Movies & Entertainment–0.18% |
| |||||
CTS Eventim AG & Co. KGaA (Germany)(d) | 16,198 | 1,063,778 | ||||
Liberty Media Corp.-Liberty Formula One, Class C(d) | 6,303 | 455,014 | ||||
Universal Music Group N.V. (Netherlands) | 19,977 | 436,982 | ||||
1,955,774 | ||||||
Multi-line Insurance–0.02% | ||||||
Allianz SE (Germany) | 814 | 204,202 | ||||
Oil & Gas Exploration & Production–0.05% |
| |||||
Diamondback Energy, Inc. | 3,942 | 560,552 | ||||
Oil & Gas Refining & Marketing–0.16% |
| |||||
Reliance Industries Ltd. (India) | 57,182 | 1,696,339 | ||||
Oil & Gas Storage & Transportation–0.07% |
| |||||
Cheniere Energy, Inc. | 2,938 | 449,514 | ||||
Targa Resources Corp. | 3,864 | 291,848 | ||||
741,362 | ||||||
Other Specialty Retail–0.24% | ||||||
Five Below, Inc.(d) | 2,054 | 405,377 | ||||
JD Sports Fashion PLC (United Kingdom) | 312,370 | 634,137 | ||||
Tractor Supply Co. | 2,647 | 631,045 | ||||
Ulta Beauty, Inc.(d) | 1,759 | 969,965 | ||||
2,640,524 | ||||||
Packaged Foods & Meats–0.10% |
| |||||
Barry Callebaut AG (Switzerland) | 124 | 264,624 | ||||
Hershey Co. (The) | 971 | 265,142 | ||||
Lamb Weston Holdings, Inc. | 4,983 | 557,149 | ||||
1,086,915 | ||||||
Personal Care Products–0.13% |
| |||||
LG H&H Co. Ltd. (South Korea) | 538 | 250,630 | ||||
L’Oreal S.A. (France) | 2,420 | 1,154,989 | ||||
1,405,619 | ||||||
Pharmaceuticals–0.55% | ||||||
AstraZeneca PLC, ADR (United Kingdom) | 1,626 | 119,056 | ||||
Daiichi Sankyo Co. Ltd. (Japan) | 11,200 | 384,097 | ||||
Novo Nordisk A/S, Class B (Denmark) | 31,871 | 5,316,657 | ||||
Phathom Pharmaceuticals, Inc.(d) | 7,752 | 82,946 | ||||
5,902,756 |
Shares | Value | |||||
Rail Transportation–0.01% | ||||||
Canadian Pacific Kansas City Ltd. (Canada) | 1,906 | $ 150,269 | ||||
Real Estate Development–0.05% |
| |||||
Oberoi Realty Ltd. (India) | 48,293 | 541,416 | ||||
Real Estate Operating Companies–0.02% |
| |||||
Hongkong Land Holdings Ltd. (Hong Kong) | 50,700 | 225,181 | ||||
Research & Consulting Services–0.16% |
| |||||
Equifax, Inc. | 5,783 | 1,205,061 | ||||
Experian PLC | 5,450 | 192,581 | ||||
Nihon M&A Center Holdings, Inc. (Japan) | 40,000 | 304,731 | ||||
1,702,373 | ||||||
Restaurants–0.76% | ||||||
Chipotle Mexican Grill, Inc.(d) | 470 | 971,781 | ||||
Compass Group PLC (United Kingdom) | 59,313 | 1,563,465 | ||||
Meituan, B Shares (China)(d)(f) | 64,121 | 1,094,306 | ||||
Yum China Holdings, Inc. (China) | 73,900 | 4,521,202 | ||||
8,150,754 | ||||||
Semiconductor Materials & Equipment–0.25% | ||||||
AIXTRON SE (Germany) | 8,224 | 232,254 | ||||
ASM International N.V. (Netherlands) | 609 | 221,851 | ||||
ASML Holding N.V. (Netherlands) | 3,369 | 2,145,097 | ||||
Lam Research Corp. | 208 | 109,009 | ||||
2,708,211 | ||||||
Semiconductors–1.25% | ||||||
Analog Devices, Inc. | 17,289 | 3,109,945 | ||||
First Solar, Inc.(d) | 2,057 | 375,567 | ||||
GLOBALFOUNDRIES, Inc.(d) | 6,360 | 373,968 | ||||
Lattice Semiconductor Corp.(d) | 6,911 | 550,807 | ||||
Marvell Technology, Inc. | 16,792 | 662,948 | ||||
MediaTek, Inc. (Taiwan) | 3,000 | 65,197 | ||||
Monolithic Power Systems, Inc. | 1,683 | 777,496 | ||||
NVIDIA Corp. | 1,781 | 494,210 | ||||
Silergy Corp. (China) | 19,000 | 302,578 | ||||
Silicon Laboratories, Inc.(d) | 2,821 | 392,965 | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | 388,000 | 6,363,006 | ||||
13,468,687 | ||||||
Soft Drinks & Non-alcoholic Beverages–0.23% | ||||||
Britvic PLC (United Kingdom) | 63,236 | 727,156 | ||||
Fomento Economico Mexicano S.A.B. de C.V., Series CPO (Mexico) | 117,995 | 1,147,956 | ||||
Monster Beverage Corp.(d) | 10,940 | 612,640 | ||||
2,487,752 | ||||||
Specialty Chemicals–0.12% | ||||||
Ecolab, Inc. | 1,231 | 206,611 | ||||
Sika AG (Switzerland) | 3,991 | 1,097,455 | ||||
1,304,066 | ||||||
Steel–0.09% | ||||||
Steel Dynamics, Inc. | 2,932 | 304,782 | ||||
Vale S.A., ADR (Brazil) | 45,488 | 655,482 | ||||
960,264 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 | Invesco Global Allocation Fund |
Shares | Value | |||||
Systems Software–0.10% | ||||||
Microsoft Corp. | 3,393 | $ 1,042,533 | ||||
Technology Hardware, Storage & Peripherals–0.14% | ||||||
Samsung Electronics Co. Ltd. (South Korea) | 30,822 | 1,518,550 | ||||
Trading Companies & Distributors–0.24% |
| |||||
Ashtead Group PLC (United Kingdom) | 2,924 | 168,401 | ||||
Ferguson PLC | 6,480 | 913,133 | ||||
RS GROUP PLC (United Kingdom) | 45,896 | 532,818 | ||||
United Rentals, Inc. | 1,025 | 370,138 | ||||
W.W. Grainger, Inc. | 931 | 647,576 | ||||
2,632,066 | ||||||
Transaction & Payment Processing Services–0.28% | ||||||
Adyen N.V. (Netherlands)(d)(f) | 343 | 549,293 | ||||
Edenred (France) | 14,659 | 953,353 | ||||
Fidelity National Information Services, Inc. | 3,069 | 180,212 | ||||
Visa, Inc., Class A | 5,772 | 1,343,317 | ||||
3,026,175 | ||||||
Wireless Telecommunication Services–0.14% | ||||||
America Movil S.A.B. de C.V., ADR (Mexico) | 69,842 | 1,500,905 | ||||
Total Common Stocks & Other Equity Interests |
| 230,123,011 | ||||
Principal | ||||||
Amount | ||||||
U.S. Treasury Securities–21.25% |
| |||||
U.S. Treasury Notes–21.25% | ||||||
3.88%, 12/31/2027 | $ | 23,390,000 | 23,729,886 | |||
3.88%, 12/31/2029 | 68,550,000 | 70,100,408 | ||||
1.88%, 02/15/2032(g) | 152,780,000 | 135,061,101 | ||||
Total U.S. Treasury Securities |
| 228,891,395 | ||||
Shares | ||||||
Preferred Stocks–0.08% | ||||||
Diversified Banks–0.00% | ||||||
Socium Re Ltd., Series 2019-1, Pfd.(e) | 264,345 | 4,370 | ||||
Diversified Support Services–0.08% |
| |||||
Harambee Re Ltd., Pfd.(e) | 223 | 22,682 | ||||
Kinesis Reinsurance I Ltd., Series 2019-1, Pfd.(e) | 116,394 | 23,664 | ||||
Mt. Logan Re Ltd., Pfd.(e) | 759 | 684,408 | ||||
Thopas Re Ltd., Pfd.(e) | 73 | 1,086 | ||||
Turing Re Ltd., Series 2019-1, Pfd.(e)(f) | 13,286 | 38,006 |
Shares | Value | |||||||
Diversified Support Services–(continued) |
| |||||||
Viribus Re Ltd., Pfd.(e) | 399,749 | $ | 29,694 | |||||
| ||||||||
799,540 | ||||||||
| ||||||||
Total Preferred Stocks (Cost $3,955,257) |
| 803,910 | ||||||
| ||||||||
Principal | ||||||||
Amount | ||||||||
Event-Linked Bonds–0.06% |
| |||||||
Diversified Financial Services–0.06% |
| |||||||
Limestone Re Ltd. (Multinational), Class A, Catastrophe Linked Notes, 0.00%, 12/31/2024(e)(f)(h) | $ | 15,620 | 20,455 | |||||
| ||||||||
Sector Re V Ltd. (Multinational), Series 2019-1, Class A, Catastrophe Linked Notes, 0.00%, 03/01/2024(e)(f)(h) | 1,228,541 | 659,154 | ||||||
| ||||||||
Total Event-Linked Bonds |
| 679,609 | ||||||
| ||||||||
Shares | ||||||||
Money Market Funds–4.10% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(c)(i) | 15,467,248 | 15,467,248 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(c)(i) | 11,043,995 | 11,047,308 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(c)(i) | 17,676,854 | 17,676,854 | ||||||
| ||||||||
Total Money Market Funds |
| 44,191,410 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES |
| 1,082,480,303 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–0.39% | ||||||||
Invesco Private Government Fund, 4.83%(c)(i)(j) | 1,161,426 | 1,161,426 | ||||||
| ||||||||
Invesco Private Prime Fund, 4.99%(c)(i)(j) | 2,986,525 | 2,986,525 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 4,147,951 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–100.88% |
| 1,086,628,254 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(0.88)% |
| (9,462,739 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 1,077,165,515 | ||||||
|
Investment Abbreviations:
ADR | - | American Depositary Receipt | ||
CDI | - | CREST Depository Interest | ||
CPO | - | Certificates of Ordinary Participation | ||
ETF | - | Exchange-Traded Fund | ||
GDR | - | Global Depositary Receipt | ||
Pfd. | - | Preferred | ||
Wts. | - | Warrants |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 | Invesco Global Allocation Fund |
Notes to Consolidated Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2023. |
(c) | Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or is an “affiliated person” under the Investment Company Act of 1940, as amended (the “1940 Act”), which defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. For the Investments in Other Affiliates below, 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 table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | |||||||||||||||||||||||||||||
Invesco BulletShares 2023 Corporate Bond ETF | $ | 136,622,570 | $ | - | $ | (137,073,790 | ) | $ | 261,980 | $ | 189,240 | $ | - | $ | 63,124 | ||||||||||||||||||||
Invesco BulletShares 2025 Corporate Bond ETF | - | 137,045,944 | - | 1,500,752 | - | 138,546,696 | 745,055 | ||||||||||||||||||||||||||||
Invesco Emerging Markets Sovereign Debt ETF | - | 31,591,416 | (32,341,880 | ) | - | 750,464 | - | 682,388 | |||||||||||||||||||||||||||
Invesco High Yield Bond Factor ETF | 22,644,420 | - | (107,729 | ) | 667,249 | - | 23,203,940 | 788,288 | |||||||||||||||||||||||||||
Invesco International Developed Dynamic Multifactor ETF | 91,450,714 | 20,568,491 | - | 29,423,209 | - | 141,442,414 | 1,343,363 | ||||||||||||||||||||||||||||
Invesco Russell 1000® Dynamic Multifactor ETF | 207,235,310 | - | (10,526,566 | ) | 18,747,942 | 3,978,696 | 219,435,382 | 1,888,548 | |||||||||||||||||||||||||||
Invesco Russell 2000® Dynamic Multifactor ETF | 56,866,274 | - | - | (1,703,738 | ) | - | 55,162,536 | 439,532 | |||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | 5,265,568 | 69,916,223 | (59,714,545 | ) | 2 | - | 15,467,248 | 348,677 | |||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 3,771,624 | 49,940,159 | (42,663,718 | ) | (366 | ) | (391 | ) | 11,047,308 | 258,919 | |||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 6,017,793 | 79,904,255 | (68,245,194 | ) | - | - | 17,676,854 | 398,005 | |||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 4,044,769 | 117,439,912 | (120,323,255 | ) | - | - | 1,161,426 | 126,833 | * | ||||||||||||||||||||||||||
Invesco Private Prime Fund | 10,398,787 | 248,545,251 | (255,959,441 | ) | (572 | ) | 2,500 | 2,986,525 | 364,928 | * | |||||||||||||||||||||||||
Investments in Other Affiliates: | |||||||||||||||||||||||||||||||||||
Lion Rock Re Ltd. | 23,596 | - | - | 13,904 | (37,500 | ) | - | - | |||||||||||||||||||||||||||
Total | $ | 544,341,425 | $ | 754,951,651 | $ | (726,956,118 | ) | $ | 48,910,362 | $ | 4,883,009 | $ | 626,130,329 | $ | 7,447,660 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(d) | Non-income producing security. |
(e) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(f) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2023 was $8,433,869, which represented less than 1% of the Fund’s Net Assets. |
(g) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1M. |
(h) | Zero coupon bond issued at a discount. |
(i) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(j) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
Open Futures Contracts(a) | ||||||||||||||||||||
| ||||||||||||||||||||
Unrealized | ||||||||||||||||||||
Number of | Expiration | Notional | Appreciation | |||||||||||||||||
Long Futures Contracts | Contracts | Month | Value | Value | (Depreciation) | |||||||||||||||
Equity Risk | ||||||||||||||||||||
E-Mini S&P 500 Index | 753 | June-2023 | $ | 157,697,025 | $ | 6,907,139 | $ | 6,907,139 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 | Invesco Global Allocation Fund |
Open Futures Contracts(a)–(continued) | ||||||||||||||||||||
| ||||||||||||||||||||
Unrealized | ||||||||||||||||||||
Number of | Expiration | Notional | Appreciation | |||||||||||||||||
Long Futures Contracts | Contracts | Month | Value | Value | (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 986 | June-2023 | $ | 108,205,797 | $ | 2,272,422 | $ | 2,272,422 | ||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Notes | 716 | June-2023 | 82,485,437 | 2,606,688 | 2,606,688 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury Ultra Bonds | 214 | June-2023 | 30,260,938 | 1,393,875 | 1,393,875 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 6,272,985 | 6,272,985 | ||||||||||||||||||
| ||||||||||||||||||||
Subtotal–Long Futures Contracts | 13,180,124 | 13,180,124 | ||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
E-Mini Russell 2000 Index | 613 | June-2023 | (54,397,620 | ) | (459,655 | ) | (459,655 | ) | ||||||||||||
| ||||||||||||||||||||
MSCI Emerging Markets Index | 654 | June-2023 | (32,183,340 | ) | (848,747 | ) | (848,747 | ) | ||||||||||||
| ||||||||||||||||||||
Nikkei 225 Index | 8 | June-2023 | (1,695,182 | ) | (36,586 | ) | (36,586 | ) | ||||||||||||
| ||||||||||||||||||||
S&P/TSX 60 Index | 4 | June-2023 | (737,203 | ) | (13,256 | ) | (13,256 | ) | ||||||||||||
| ||||||||||||||||||||
SPI 200 Index | 6 | June-2023 | (726,348 | ) | (3,732 | ) | (3,732 | ) | ||||||||||||
| ||||||||||||||||||||
STOXX Europe 600 Index | 2,044 | June-2023 | (52,264,262 | ) | (1,355,728 | ) | (1,355,728 | ) | ||||||||||||
| ||||||||||||||||||||
Subtotal–Short Futures Contracts | (2,717,704 | ) | (2,717,704 | ) | ||||||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | 10,462,420 | $ | 10,462,420 | ||||||||||||||||
|
(a) | Futures contracts collateralized by $3,000,021 cash held with Merrill Lynch International, the futures commission merchant. |
Open Forward Foreign Currency Contracts | ||||||||||||||||||
| ||||||||||||||||||
Unrealized | ||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||
| ||||||||||||||||||
Currency Risk | ||||||||||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | KRW | 34,360,100,000 | USD | 26,230,285 | $ | 474,082 | |||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | NZD | 23,375,000 | USD | 14,511,231 | 58,979 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | TWD | 522,695,000 | USD | 17,290,605 | 228,784 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 205,504 | DKK | 1,425,000 | 5,858 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 16,307,893 | IDR | 250,000,000,000 | 722,577 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 13,806,003 | SEK | 144,475,000 | 317,912 | ||||||||||||
| ||||||||||||||||||
06/02/2023 | Barclays Bank PLC | USD | 3,631,368 | BRL | 19,190,000 | 192,658 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Barclays Bank PLC | CNY | 208,690,000 | USD | 30,289,607 | 32,547 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Barclays Bank PLC | USD | 1,271,481 | MYR | 5,660,000 | 5,162 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Barclays Bank PLC | USD | 12,768,475 | PLN | 56,520,000 | 774,429 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | USD | 6,759,396 | CAD | 9,205,000 | 41,470 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Citibank N.A. | USD | 1,172,091 | THB | 40,430,000 | 17,600 | ||||||||||||
| ||||||||||||||||||
06/22/2023 | Citibank N.A. | CLP | 513,000,000 | USD | 632,709 | 1,413 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Deutsche Bank AG | AUD | 5,970,000 | USD | 4,028,624 | 69,838 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Deutsche Bank AG | JPY | 2,296,820,000 | USD | 17,104,006 | 117,997 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 15,270,120 | HUF | 5,563,210,000 | 916,882 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 1,346,709 | ZAR | 25,010,000 | 14,421 | ||||||||||||
| ||||||||||||||||||
06/02/2023 | Goldman Sachs International | USD | 13,058,840 | BRL | 69,078,000 | 706,458 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Goldman Sachs International | AUD | 12,140,000 | USD | 8,089,890 | 39,695 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 421,638 | MYR | 1,880,000 | 2,406 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 424,562 | PEN | 1,620,000 | 11,178 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | CNY | 11,600,000 | USD | 1,691,584 | 9,750 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | JPY | 332,000,000 | USD | 2,465,506 | 10,218 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 15,200,211 | COP | 73,552,300,000 | 283,593 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 436,414 | CZK | 9,830,000 | 22,883 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 1,266,295 | INR | 104,620,000 | 10,538 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 2,406,985 | PLN | 10,720,000 | 161,662 | ||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 | Invesco Global Allocation Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||
| ||||||||||||||||||
Unrealized | ||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | HKD | 24,820,000 | USD | 3,174,363 | $ | 5,946 | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 18,132,327 | EUR | 17,100,000 | 762,881 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 18,171,159 | GBP | 15,325,000 | 1,108,367 | ||||||||||||
| ||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | USD | 17,047,142 | SGD | 22,840,000 | 100,419 | ||||||||||||
| ||||||||||||||||||
Subtotal–Appreciation | 7,228,603 | |||||||||||||||||
| ||||||||||||||||||
Currency Risk | ||||||||||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | DKK | 53,110,000 | USD | 7,618,253 | (259,258 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | GBP | 3,890,000 | USD | 4,659,836 | (233,955 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | NOK | 11,320,000 | USD | 1,052,499 | (12,267 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | SEK | 38,840,000 | USD | 3,716,002 | (81,007 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | THB | 476,430,000 | USD | 13,927,647 | (91,757 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 15,315,801 | NOK | 159,850,000 | (280,211 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Barclays Bank PLC | CHF | 4,670,000 | USD | 5,013,112 | (240,943 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | EUR | 2,480,000 | USD | 2,646,865 | (93,493 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | INR | 590,000,000 | USD | 7,152,816 | (47,826 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | USD | 8,871,061 | KRW | 11,500,000,000 | (250,704 | ) | |||||||||||
| ||||||||||||||||||
06/22/2023 | BNP Paribas S.A. | CLP | 11,730,000,000 | USD | 14,015,174 | (419,712 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Citibank N.A. | DKK | 14,000,000 | USD | 2,006,947 | (69,595 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Citibank N.A. | IDR | 5,008,000,000 | USD | 323,556 | (17,598 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 14,780,738 | TWD | 446,600,000 | (202,811 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Goldman Sachs International | CHF | 16,620,000 | USD | 18,047,321 | (651,265 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 11,106,408 | TWD | 335,880,000 | (142,606 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | CAD | 9,480,000 | USD | 6,976,569 | (27,473 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | GBP | 3,560,000 | USD | 4,319,334 | (159,302 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | ILS | 5,030,000 | USD | 1,377,068 | (11,243 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 29,902,266 | CNY | 205,170,000 | (155,556 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | AUD | 9,780,000 | USD | 6,482,673 | (2,575 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | EUR | 6,970,000 | USD | 7,430,108 | (271,623 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | MXN | 81,505,000 | USD | 4,437,683 | (50,138 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | PHP | 841,900,000 | USD | 15,178,942 | (15,791 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | SGD | 1,710,000 | USD | 1,272,718 | (11,097 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 17,652,633 | JPY | 2,314,000,000 | (539,570 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 3,609,597 | KRW | 4,690,000,000 | (93,990 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 1,780,830 | ZAR | 32,650,000 | (3,905 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | Royal Bank of Canada | CAD | 3,610,000 | USD | 2,626,259 | (40,892 | ) | |||||||||||
| ||||||||||||||||||
05/02/2023 | State Street Bank & Trust Co. | PHP | 106,876 | USD | 1,915 | (15 | ) | |||||||||||
| ||||||||||||||||||
05/03/2023 | State Street Bank & Trust Co. | PHP | 106,655 | USD | 1,919 | (7 | ) | |||||||||||
| ||||||||||||||||||
06/21/2023 | UBS AG | USD | 3,242,751 | HKD | 25,355,000 | (6,039 | ) | |||||||||||
| ||||||||||||||||||
Subtotal–Depreciation | (4,484,224 | ) | ||||||||||||||||
| ||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | 2,744,379 | ||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12 | Invesco Global Allocation Fund |
Open Over-The-Counter Total Return Swap Agreements(a)(b) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Upfront | ||||||||||||||||||||||||||||
Floating | Payments | Unrealized | ||||||||||||||||||||||||||
Pay/ | Rate | Payment | Number of | Paid | Appreciation | |||||||||||||||||||||||
Counterparty | Receive | Reference Entity | Index | Frequency | Contracts | Maturity Date | Notional Value | (Received) | Value | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Goldman Sachs International | Pay | MSCI ACWI Daily Total Return Net ex USA | SOFR + 0.01% | Quarterly | 389,000 | May–2023 | USD 102,551,681 | $– | $ | 3,644,928 | $ | 3,644,928 | ||||||||||||||||
| ||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Russell Midcap Growth Total Return Index | SOFR + 0.22% | Monthly | 11,200 | September–2023 | USD 50,009,590 | – | 684,766 | 684,766 | ||||||||||||||||||
| ||||||||||||||||||||||||||||
Subtotal – Appreciation | – | 4,329,694 | 4,329,694 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Goldman Sachs International | Receive | MSCI ACWI ex USA Growth Net Total Return Index | SOFR + 0.27% | Quarterly | 399,000 | May–2023 | USD 101,342,010 | – | (4,995,480 | ) | (4,995,480 | ) | ||||||||||||||||
| ||||||||||||||||||||||||||||
Total – Total Return Swap Agreements | $– | $ | (665,786 | ) | $ | (665,786 | ) | |||||||||||||||||||||
|
(a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $2,450,000. |
(b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
Abbreviations: | ||
AUD | –Australian Dollar | |
BRL | –Brazilian Real | |
CAD | –Canadian Dollar | |
CHF | –Swiss Franc | |
CLP | –Chile Peso | |
CNY | –Chinese Yuan Renminbi | |
COP | –Colombia Peso | |
CZK | –Czech Koruna | |
DKK | –Danish Krone | |
EUR | –Euro | |
GBP | –British Pound Sterling | |
HKD | –Hong Kong Dollar | |
HUF | –Hungarian Forint | |
IDR | –Indonesian Rupiah | |
ILS | –Israel Shekel | |
INR | –Indian Rupee | |
JPY | –Japanese Yen | |
KRW | –South Korean Won | |
MXN | –Mexican Peso | |
MYR | –Malaysian Ringgit | |
NOK | –Norwegian Krone | |
NZD | –New Zealand Dollar | |
PEN | –Peruvian Sol | |
PHP | –Philippines Peso | |
PLN | –Polish Zloty | |
SEK | –Swedish Krona | |
SGD | –Singapore Dollar | |
SOFR | –Secured Overnight Financing Rate | |
THB | –Thai Baht | |
TWD | –New Taiwan Dollar | |
USD | –U.S. Dollar | |
ZAR | –South African Rand |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13 | Invesco Global Allocation Fund |
Portfolio Composition
By security type, based on Net Assets
as of April 30, 2023
Exchange-Traded Funds | 53.64 | % | |||
Common Stocks & Other Equity Interests | 21.36 | ||||
U.S. Treasury Securities | 21.25 | ||||
Security Types Each Less Than 1% of Portfolio | 0.14 | ||||
Money Market Funds Plus Other Assets Less Liabilities | 3.61 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14 | Invesco Global Allocation Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value (Cost $443,529,878)* | $ | 460,497,925 | ||
| ||||
Investments in affiliates, at value | 626,130,329 | |||
| ||||
Other investments: | ||||
Variation margin receivable – futures contracts | 6,102,600 | |||
| ||||
Swaps receivable – OTC | 867,596 | |||
| ||||
Unrealized appreciation on swap agreements – OTC | 4,329,694 | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 7,228,603 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral – exchange-traded futures contracts | 3,000,021 | |||
| ||||
Cash collateral – OTC Derivatives | 2,450,000 | |||
| ||||
Cash | 3,869,763 | |||
| ||||
Foreign currencies, at value (Cost $868,841) | 869,145 | |||
| ||||
Receivable for: | ||||
Investments sold | 1,243,031 | |||
| ||||
Fund shares sold | 411,979 | |||
| ||||
Dividends | 953,256 | |||
| ||||
Interest | 1,552,551 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 229,261 | |||
| ||||
Other assets | 19,472 | |||
| ||||
Total assets | 1,119,755,226 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 4,484,224 | |||
| ||||
Swaps payable - OTC | 820,755 | |||
| ||||
Unrealized depreciation on swap agreements–OTC | 4,995,480 | |||
| ||||
Payable for: | ||||
Investments purchased | 1,599,024 | |||
| ||||
Fund shares reacquired | 24,967,201 | |||
| ||||
Accrued foreign taxes | 465,847 | |||
| ||||
Collateral upon return of securities loaned | 4,147,951 | |||
| ||||
Accrued fees to affiliates | 630,407 | |||
| ||||
Accrued other operating expenses | 108,416 | |||
| ||||
Trustee deferred compensation and retirement plans | 370,406 | |||
| ||||
Total liabilities | 42,589,711 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,077,165,515 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 1,037,798,771 | ||
| ||||
Distributable earnings | 39,366,744 | |||
| ||||
$ | 1,077,165,515 | |||
| ||||
Net Assets: | ||||
Class A | $ | 923,216,460 | ||
| ||||
Class C | $ | 50,097,547 | ||
| ||||
Class R | $ | 34,127,240 | ||
| ||||
Class Y | $ | 53,699,288 | ||
| ||||
Class R5 | $ | 10,360 | ||
| ||||
Class R6 | $ | 16,014,620 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 51,742,809 | |||
| ||||
Class C | 3,027,328 | |||
| ||||
Class R | 1,974,543 | |||
| ||||
Class Y | 3,000,229 | |||
| ||||
Class R5 | 576 | |||
| ||||
Class R6 | 891,658 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 17.84 | ||
| ||||
Maximum offering price per share | ||||
(Net asset value of $17.84 ÷ 94.50%) | $ | 18.88 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 16.55 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 17.28 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 17.90 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 17.99 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 17.96 | ||
|
* | At April 30, 2023, securities with an aggregate value of $4,082,115 were on loan to brokers. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15 | Invesco Global Allocation Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest | $ | 4,040,738 | ||
| ||||
Dividends (net of foreign withholding taxes of $195,324) | 3,656,661 | |||
| ||||
Dividends from affiliates (includes net securities lending income of $132,056) | 7,087,955 | |||
| ||||
Total investment income | 14,785,354 | |||
| ||||
Expenses: | ||||
Advisory fees | 4,149,081 | |||
| ||||
Administrative services fees | 76,509 | |||
| ||||
Custodian fees | 85,267 | |||
| ||||
Distribution fees: | ||||
Class A | 1,109,802 | |||
| ||||
Class C | 249,264 | |||
| ||||
Class R | 81,632 | |||
| ||||
Transfer agent fees – A, C, R and Y | 881,204 | |||
| ||||
Transfer agent fees – R5 | 2 | |||
| ||||
Transfer agent fees – R6 | 5,664 | |||
| ||||
Trustees’ and officers’ fees and benefits | 26,241 | |||
| ||||
Registration and filing fees | 55,860 | |||
| ||||
Reports to shareholders | 49,148 | |||
| ||||
Professional services fees | 57,146 | |||
| ||||
Other | 20,087 | |||
| ||||
Total expenses | 6,846,907 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (518,743 | ) | ||
| ||||
Net expenses | 6,328,164 | |||
| ||||
Net investment income | 8,457,190 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities (net of foreign taxes of $36,929) | (30,979,095 | ) | ||
| ||||
Affiliated investment securities | 4,883,009 | |||
| ||||
Foreign currencies | (166,645 | ) | ||
| ||||
Forward foreign currency contracts | 2,381,212 | |||
| ||||
Futures contracts | (4,772,280 | ) | ||
| ||||
Swap agreements | (3,104,324 | ) | ||
| ||||
(31,758,123 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities (net of foreign taxes of $34,378) | 92,404,063 | |||
| ||||
Affiliated investment securities | 48,910,362 | |||
| ||||
Foreign currencies | (2,483,468 | ) | ||
| ||||
Forward foreign currency contracts | (937,030 | ) | ||
| ||||
Futures contracts | 9,048,537 | |||
| ||||
Swap agreements | (593,640 | ) | ||
| ||||
146,348,824 | ||||
| ||||
Net realized and unrealized gain | 114,590,701 | |||
| ||||
Net increase in net assets resulting from operations | $ | 123,047,891 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16 | Invesco Global Allocation Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, 2023 | October 31, 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 8,457,190 | $ | 16,086,876 | ||||
| ||||||||
Net realized gain (loss) | (31,758,123 | ) | (465,179 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 146,348,824 | (271,277,739 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 123,047,891 | (255,656,042 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (47,881,927 | ) | (146,614,587 | ) | ||||
| ||||||||
Class C | (2,520,753 | ) | (9,123,275 | ) | ||||
| ||||||||
Class R | (1,702,221 | ) | (5,093,988 | ) | ||||
| ||||||||
Class Y | (2,864,646 | ) | (9,300,035 | ) | ||||
| ||||||||
Class R5 | (683 | ) | (2,002 | ) | ||||
| ||||||||
Class R6 | (2,193,824 | ) | (5,849,031 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (57,164,054 | ) | (175,982,918 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | 5,276,201 | 49,715,808 | ||||||
| ||||||||
Class C | (2,576,076 | ) | (471,104 | ) | ||||
| ||||||||
Class R | 1,055,295 | 3,926,613 | ||||||
| ||||||||
Class Y | 695,996 | (719,309 | ) | |||||
| ||||||||
Class R5 | (1,582 | ) | 484 | |||||
| ||||||||
Class R6 | (22,804,302 | ) | 5,423,105 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (18,354,468 | ) | 57,875,597 | |||||
| ||||||||
Net increase (decrease) in net assets | 47,529,369 | (373,763,363 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,029,636,146 | 1,403,399,509 | ||||||
| ||||||||
End of period | $ | 1,077,165,515 | $ | 1,029,636,146 | ||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17 | Invesco Global Allocation Fund |
Consolidated Financial Highlights
(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(c) | Ratio of expenses to average net assets without fee waivers and/or expenses absorbed(c) | Ratio of net investment income to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $16.79 | $0.14 | $ 1.85 | $ 1.99 | $(0.94 | ) | $ - | $(0.94 | ) | $17.84 | 12.22 | % | $ 923,216 | 1.17 | %(e) | 1.27 | %(e) | 1.62 | %(e) | 53 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 23.79 | 0.26 | (4.25 | ) | (3.99 | ) | (0.47 | ) | (2.54 | ) | (3.01 | ) | 16.79 | (19.06 | ) | 862,663 | 1.15 | 1.23 | 1.36 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 18.75 | 0.22 | 4.82 | 5.04 | - | - | - | 23.79 | 26.88 | 1,173,186 | 1.15 | 1.25 | 1.01 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 18.21 | 0.15 | 0.39 | 0.54 | - | - | - | 18.75 | 2.97 | 999,336 | 1.20 | 1.32 | 0.85 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 18.48 | 0.13 | 1.16 | 1.29 | (0.39 | ) | (1.17 | ) | (1.56 | ) | 18.21 | 8.05 | 1,093,027 | 1.21 | 1.31 | 0.75 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 19.48 | 0.21 | (1.21 | ) | (1.00 | ) | (0.00 | ) | - | (0.00 | ) | 18.48 | (5.12 | ) | 1,050,082 | 1.25 | 1.32 | 1.06 | 151 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 15.56 | 0.07 | 1.72 | 1.79 | (0.80 | ) | - | (0.80 | ) | 16.55 | 11.80 | 50,098 | 1.92 | (e) | 2.02 | (e) | 0.87 | (e) | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 22.23 | 0.11 | (3.95 | ) | (3.84 | ) | (0.29 | ) | (2.54 | ) | (2.83 | ) | 15.56 | (19.63 | ) | 49,615 | 1.90 | 1.98 | 0.61 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 17.66 | 0.05 | 4.52 | 4.57 | - | - | - | 22.23 | 25.88 | 72,605 | 1.90 | 2.00 | 0.26 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 17.28 | 0.02 | 0.36 | 0.38 | - | - | - | 17.66 | 2.20 | 77,710 | 1.95 | 2.07 | 0.10 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 17.59 | 0.00 | 1.10 | 1.10 | (0.24 | ) | (1.17 | ) | (1.41 | ) | 17.28 | 7.22 | 92,142 | 1.96 | 2.06 | 0.00 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 18.67 | 0.06 | (1.14 | ) | (1.08 | ) | - | - | - | 17.59 | (5.84 | ) | 209,903 | 2.01 | 2.08 | 0.31 | 151 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 16.27 | 0.11 | 1.80 | 1.91 | (0.90 | ) | - | (0.90 | ) | 17.28 | 12.05 | 34,127 | 1.42 | (e) | 1.52 | (e) | 1.37 | (e) | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 23.13 | 0.20 | (4.11 | ) | (3.91 | ) | (0.41 | ) | (2.54 | ) | (2.95 | ) | 16.27 | (19.22 | ) | 31,034 | 1.40 | 1.48 | 1.11 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 18.28 | 0.16 | 4.69 | 4.85 | - | - | - | 23.13 | 26.53 | 39,793 | 1.40 | 1.50 | 0.76 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 17.79 | 0.11 | 0.38 | 0.49 | - | - | - | 18.28 | 2.75 | 34,012 | 1.45 | 1.57 | 0.60 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 18.10 | 0.09 | 1.11 | 1.20 | (0.34 | ) | (1.17 | ) | (1.51 | ) | 17.79 | 7.68 | 38,552 | 1.46 | 1.56 | 0.50 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 19.12 | 0.16 | (1.18 | ) | (1.02 | ) | - | - | - | 18.10 | 5.34 | 39,909 | 1.50 | 1.57 | 0.82 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 16.87 | 0.16 | 1.86 | 2.02 | (0.99 | ) | - | (0.99 | ) | 17.90 | 12.36 | 53,699 | 0.92 | (e) | 1.02 | (e) | 1.87 | (e) | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 23.89 | 0.31 | (4.26 | ) | (3.95 | ) | (0.53 | ) | (2.54 | ) | (3.07 | ) | 16.87 | (18.84 | ) | 49,841 | 0.90 | 0.98 | 1.61 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 18.78 | 0.28 | 4.83 | 5.11 | - | - | - | 23.89 | 27.21 | 72,519 | 0.90 | 1.00 | 1.26 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 18.21 | 0.20 | 0.38 | 0.58 | (0.01 | ) | - | (0.01 | ) | 18.78 | 3.27 | 65,397 | 0.95 | 1.07 | 1.10 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 18.49 | 0.18 | 1.14 | 1.32 | (0.43 | ) | (1.17 | ) | (1.60 | ) | 18.21 | 8.27 | 74,260 | 0.96 | 1.06 | 0.99 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 19.47 | 0.26 | (1.21 | ) | (0.95 | ) | (0.03 | ) | - | (0.03 | ) | 18.49 | (4.88 | ) | 114,493 | 1.01 | 1.08 | 1.31 | 151 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 16.96 | 0.17 | 1.88 | 2.05 | (1.02 | ) | - | (1.02 | ) | 17.99 | 12.45 | 10 | 0.79 | (e) | 0.88 | (e) | 2.00 | (e) | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 24.02 | 0.33 | (4.29 | ) | (3.96 | ) | (0.56 | ) | (2.54 | ) | (3.10 | ) | 16.96 | (18.77 | ) | 11 | 0.78 | 0.86 | 1.73 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 18.85 | 0.32 | 4.85 | 5.17 | - | - | - | 24.02 | 27.43 | 15 | 0.76 | 0.86 | 1.40 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 18.24 | 0.24 | 0.39 | 0.63 | (0.02 | ) | - | (0.02 | ) | 18.85 | 3.45 | 11 | 0.76 | 0.87 | 1.29 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 10/31/19(f) | 17.36 | 0.09 | 0.79 | 0.88 | - | - | - | 18.24 | 5.07 | 11 | 0.85 | (e) | 0.93 | (e) | 1.11 | (e) | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 16.93 | 0.17 | 1.88 | 2.05 | (1.02 | ) | - | (1.02 | ) | 17.96 | 12.47 | 16,015 | 0.79 | (e) | 0.88 | (e) | 2.00 | (e) | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 23.98 | 0.33 | (4.28 | ) | (3.95 | ) | (0.56 | ) | (2.54 | ) | (3.10 | ) | 16.93 | (18.77 | ) | 36,473 | 0.78 | 0.86 | 1.73 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 18.83 | 0.31 | 4.84 | 5.15 | - | - | - | 23.98 | 27.35 | 45,281 | 0.76 | 0.86 | 1.40 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 18.22 | 0.24 | 0.39 | 0.63 | (0.02 | ) | - | (0.02 | ) | 18.83 | 3.46 | 36,260 | 0.76 | 0.87 | 1.29 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 18.51 | 0.21 | 1.14 | 1.35 | (0.47 | ) | (1.17 | ) | (1.64 | ) | 18.22 | 8.48 | 37,741 | 0.79 | 0.88 | 1.17 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 19.48 | 0.29 | (1.21 | ) | (0.92 | ) | (0.05 | ) | - | (0.05 | ) | 18.51 | (4.75 | ) | 33,300 | 0.84 | 0.91 | 1.48 | 151 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include estimated acquired fund fees from underlying funds of 0.15%, 0.17%, 0.14%, 0.08% and 0.02% for the years ended October 31, 2022, 2021, 2020, 2019 and 2018, respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | Annualized. |
(f) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18 | Invesco Global Allocation Fund |
Notes to Consolidated Financial Statements
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco Global Allocation Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Global Allocation Fund (Cayman) Ltd. (the “Subsidiary”), a wholly-owned and controlled subsidiary by the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to commodity-linked derivatives primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives (including commodity futures, financial futures, options and swap contracts), and certain fixed-income securities and other investments that may serve as margin or collateral for its derivatives positions. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the
19 | Invesco Global Allocation Fund |
inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt |
20 | Invesco Global Allocation Fund |
securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, the Fund paid the Adviser $14,615 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Consolidated Statement of Operations.
K. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
L. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
M. | Futures Contracts – The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities. |
N. | Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s |
21 | Invesco Global Allocation Fund |
net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of April 30, 2023, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
O. | LIBOR Transition Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates will no longer be published after June 2023. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity.
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Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that will replace LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Funds may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
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. |
R. | Other Risks – Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs. |
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Securities law in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably. In addition, the enforcement of systems of taxation at federal, regional and local levels in emerging market countries may be inconsistent, and subject to sudden change. Other risks of investing in emerging markets securities may include additional transaction costs, delays in settlement procedures, and lack of timely information.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser 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* | |||
| ||||
Up to $1.0 billion | 0.800% | |||
| ||||
Next $2 billion | 0.760% | |||
| ||||
Next $1 billion | 0.710% | |||
| ||||
Next $1 billion | 0.660% | |||
| ||||
Next $1 billion | 0.600% | |||
| ||||
Next $1 billion | 0.550% | |||
| ||||
Next $2 billion | 0.500% | |||
| ||||
Over $9 billion | 0.480% | |||
|
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.78%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least June 30, 2023, 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. 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $483,441.
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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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $36,193 in front-end sales commissions from the sale of Class A shares and $3,832 and $662 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | - Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 | - Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 | - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Exchange-Traded Funds | $ | 577,790,968 | $ | – | $ | – | $ | 577,790,968 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||
Common Stocks & Other Equity Interests | 111,405,072 | 118,177,987 | 539,952 | 230,123,011 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
U.S. Treasury Securities | – | 228,891,395 | – | 228,891,395 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Preferred Stocks | – | – | 803,910 | 803,910 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Event-Linked Bonds | – | – | 679,609 | 679,609 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Money Market Funds | 44,191,410 | 4,147,951 | – | 48,339,361 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total Investments in Securities | 733,387,450 | 351,217,333 | 2,023,471 | 1,086,628,254 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Other Investments - Assets* | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Futures Contracts | 13,180,124 | – | – | 13,180,124 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Forward Foreign Currency Contracts | – | 7,228,603 | – | 7,228,603 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Swap Agreements | – | 4,329,694 | – | 4,329,694 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
13,180,124 | 11,558,297 | – | 24,738,421 | |||||||||||||||||||||||||
|
24 | Invesco Global Allocation Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Futures Contracts | $ | (2,717,704 | ) | $ | – | $ | – | $ | (2,717,704 | ) | ||||||||||||||||||
| ||||||||||||||||||||||||||||
Forward Foreign Currency Contracts | – | (4,484,224 | ) | – | (4,484,224 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Swap Agreements | – | (4,995,480 | ) | – | (4,995,480 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
(2,717,704 | ) | (9,479,704 | ) | – | (12,197,408 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total Other Investments | 10,462,420 | 2,078,593 | – | 12,541,013 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total Investments | $ | 743,849,870 | $ | 353,295,926 | $ | 2,023,471 | $ | 1,099,169,267 | ||||||||||||||||||||
|
* | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2023:
Value | ||||||||||||||||
Derivative Assets | Currency Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | – | $6,907,139 | $ | 6,272,985 | $ | 13,180,124 | |||||||||
| ||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | 7,228,603 | – | – | 7,228,603 | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on swap agreements – OTC | – | 4,329,694 | – | 4,329,694 | ||||||||||||
| ||||||||||||||||
Total Derivative Assets | 7,228,603 | 11,236,833 | 6,272,985 | 24,738,421 | ||||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | – | (6,907,139 | ) | (6,272,985 | ) | (13,180,124 | ) | |||||||||
| ||||||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 7,228,603 | $ | 4,329,694 | $ | – | $ | 11,558,297 | ||||||||
|
Value | ||||||||||||
Derivative Liabilities | Currency Risk | Equity Risk | Total | |||||||||
| ||||||||||||
Unrealized depreciation on futures contracts – Exchange-Traded(a) | $ | – | $ | (2,717,704 | ) | $ | (2,717,704) | |||||
| ||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | (4,484,224 | ) | – | (4,484,224) | ||||||||
| ||||||||||||
Unrealized depreciation on swap agreements – OTC | – | (4,995,480 | ) | (4,995,480) | ||||||||
| ||||||||||||
Total Derivative Liabilities | (4,484,224 | ) | (7,713,184 | ) | (12,197,408) | |||||||
| ||||||||||||
Derivatives not subject to master netting agreements | – | 2,717,704 | 2,717,704 | |||||||||
| ||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (4,484,224 | ) | $ | (4,995,480 | ) | $ | (9,479,704) | ||||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
25 | Invesco Global Allocation Fund |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of April 30, 2023.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Swap Agreements | Total Assets | Forward Foreign Currency Contracts | Swap Agreements | Total Liabilities | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Bank of America, N.A. | $ | 1,808,192 | $ | – | $ | 1,808,192 | $ | (958,455 | ) | $ | – | $ | (958,455 | ) | $ | 849,737 | $ | – | $ | (790,000 | ) | $ | 59,737 | |||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Barclays Bank PLC | 1,004,796 | – | 1,004,796 | (240,943 | ) | – | (240,943 | ) | 763,853 | – | (590,000 | ) | 173,853 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
BNP Paribas S.A. | 41,470 | – | 41,470 | (811,735 | ) | – | (811,735 | ) | (770,265 | ) | – | 700,000 | (70,265 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Citibank N.A. | 19,013 | – | 19,013 | (87,193 | ) | – | (87,193 | ) | (68,180 | ) | – | – | (68,180 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Deutsche Bank AG | 1,119,138 | – | 1,119,138 | (202,811 | ) | – | (202,811 | ) | 916,327 | (354,557 | ) | – | 561,770 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Goldman Sachs International | 748,559 | 4,407,921 | 5,156,480 | (793,871 | ) | (5,816,235 | ) | (6,610,106 | ) | (1,453,626 | ) | – | 1,453,626 | – | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
HSBC Bank USA | 11,178 | – | 11,178 | – | – | – | 11,178 | – | – | 11,178 | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 498,644 | 789,369 | 1,288,013 | (353,574 | ) | – | (353,574 | ) | 934,439 | (934,439 | ) | – | – | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Morgan Stanley and Co. International PLC | 1,877,194 | – | 1,877,194 | (988,689 | ) | – | (988,689 | ) | 888,505 | – | – | 888,505 | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Royal Bank of Canada | – | – | – | (40,892 | ) | – | (40,892 | ) | (40,892 | ) | – | – | (40,892 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Standard Chartered Bank PLC | 100,419 | – | 100,419 | – | – | – | 100,419 | – | – | 100,419 | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
State Street Bank & Trust Co. | – | – | – | (22 | ) | – | (22 | ) | (22 | ) | – | – | (22 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
UBS AG | – | – | – | (6,039 | ) | – | (6,039 | ) | (6,039 | ) | – | – | (6,039 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Total | $ | 7,228,603 | $ | 5,197,290 | $ | 12,425,893 | $ | (4,484,224 | ) | $ | (5,816,235 | ) | $ | (10,300,459 | ) | $ | 2,125,434 | $ | (1,288,996 | ) | $ | 773,626 | $ | 1,610,064 | ||||||||||||||||
|
Effect of Derivative Investments for the six months ended April 30, 2023
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Consolidated Statement of Operations | ||||||||||||||||
Currency Risk | Equity Risk | Interest Rate Risk | Total | |||||||||||||
| ||||||||||||||||
Realized Gain (Loss): | ||||||||||||||||
Forward foreign currency contracts | $ | 2,381,212 | $ | - | $ | - | $ | 2,381,212 | ||||||||
| ||||||||||||||||
Futures contracts | - | (2,240,561 | ) | (2,531,719 | ) | (4,772,280 | ) | |||||||||
| ||||||||||||||||
Swap agreements | - | 13,125,272 | (16,229,596 | ) | (3,104,324 | ) | ||||||||||
| ||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||
| ||||||||||||||||
Forward foreign currency contracts | (937,030 | ) | - | - | (937,030 | ) | ||||||||||
| ||||||||||||||||
Futures contracts | - | 2,775,552 | 6,272,985 | 9,048,537 | ||||||||||||
| ||||||||||||||||
Swap agreements | - | (593,640 | ) | - | (593,640 | ) | ||||||||||
| ||||||||||||||||
Total | $ | 1,444,182 | $ | 13,066,623 | $ | (12,488,330 | ) | $ | 2,022,475 | |||||||
|
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | Futures Contracts | Swap Agreements | ||||||||||
| ||||||||||||
Average notional value | $639,246,250 | $ | 393,863,074 | $ | 274,765,329 | |||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $35,302.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
26 | Invesco Global Allocation Fund |
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $ | 48,092,160 | $1 | $ | 48,092,161 | |||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $372,544,854 and $448,262,881, 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 | $ | 157,442,488 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (48,404,071 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 109,038,417 | ||
|
Cost of investments for tax purposes is $990,130,850.
NOTE 10–Share Information | ||||||||||||||||
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 1,189,650 | $ | 20,408,214 | 1,861,609 | $ | 35,693,983 | ||||||||||
| ||||||||||||||||
Class C | 207,523 | 3,299,003 | 361,281 | 6,556,324 | ||||||||||||
| ||||||||||||||||
Class R | 122,215 | 2,021,833 | 245,339 | 4,601,243 | ||||||||||||
| ||||||||||||||||
Class Y | 362,619 | 6,166,339 | 445,783 | 8,682,723 | ||||||||||||
| ||||||||||||||||
Class R5 | 24 | 411 | 69 | 1,288 | ||||||||||||
| ||||||||||||||||
Class R6 | 168,651 | 2,897,021 | 299,431 | 5,529,328 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 2,688,811 | 45,172,000 | 6,786,388 | 139,326,608 | ||||||||||||
| ||||||||||||||||
Class C | 156,665 | 2,448,672 | 466,344 | 8,926,958 | ||||||||||||
| ||||||||||||||||
Class R | 103,808 | 1,691,039 | 253,570 | 5,052,342 | ||||||||||||
| ||||||||||||||||
Class Y | 135,028 | 2,273,865 | 361,963 | 7,459,544 | ||||||||||||
| ||||||||||||||||
Class R5 | 6 | 97 | 10 | 217 | ||||||||||||
| ||||||||||||||||
Class R6 | 127,802 | 2,158,573 | 277,815 | 5,733,961 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 144,401 | 2,484,331 | 268,532 | 5,035,795 | ||||||||||||
| ||||||||||||||||
Class C | (155,597 | ) | (2,484,331 | ) | (288,672 | ) | (5,035,795 | ) | ||||||||
|
27 | Invesco Global Allocation Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (3,658,477 | ) | $ | (62,788,344 | ) | (6,855,559 | ) | $ | (130,340,578 | ) | ||||||
| ||||||||||||||||
Class C | (370,633 | ) | (5,839,420 | ) | (615,204 | ) | (10,918,591 | ) | ||||||||
| ||||||||||||||||
Class R | (159,252 | ) | (2,657,577 | ) | (311,209 | ) | (5,726,972 | ) | ||||||||
| ||||||||||||||||
Class Y | (452,391 | ) | (7,744,208 | ) | (888,313 | ) | (16,861,576 | ) | ||||||||
| ||||||||||||||||
Class R5 | (117 | ) | (2,090 | ) | (56 | ) | (1,021 | ) | ||||||||
| ||||||||||||||||
Class R6 | (1,558,679 | ) | (27,859,896 | ) | (311,642 | ) | (5,840,184 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (947,943 | ) | $ | (18,354,468 | ) | 2,357,479 | $ | 57,875,597 | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 12% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
28 | Invesco Global 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 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class A | $1,000.00 | $1,125.60 | $6.17 | $1,018.99 | $5.86 | 1.17% | ||||||
Class C | 1,000.00 | 1,121.60 | 10.10 | 1,015.27 | 9.59 | 1.92 | ||||||
Class R | 1,000.00 | 1,123.90 | 7.48 | 1,017.75 | 7.10 | 1.42 | ||||||
Class Y | 1,000.00 | 1,126.90 | 4.85 | 1,020.23 | 4.61 | 0.92 | ||||||
Class R5 | 1,000.00 | 1,127.80 | 4.17 | 1,020.88 | 3.96 | 0.79 | ||||||
Class R6 | 1,000.00 | 1,128.00 | 4.17 | 1,020.88 | 3.96 | 0.79 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
29 | Invesco Global Allocation Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-GLAL-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Global Infrastructure Fund
Nasdaq:
A: GIZAX ∎ C: GIZCX ∎ R: GIZRX ∎ Y: GIZYX ∎ R5: GIZFX ∎ R6: GIZSX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
7 | Financial Statements | |
10 | Financial Highlights | |
11 | Notes to Financial Statements | |
17 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
|
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 9.22 | % | ||
Class C Shares | 8.73 | |||
Class R Shares | 9.00 | |||
Class Y Shares | 9.26 | |||
Class R5 Shares | 9.26 | |||
Class R6 Shares | 9.26 | |||
MSCI World Index▼ (Broad Market Index) | 12.26 | |||
Dow Jones Brookfield Global Infrastructure Index▼ (Style-Specific Index) | 10.12 | |||
Lipper Global Infrastructure Funds Classification Average∎ (Peer Group) | 10.19 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. | ||||
The MSCI World IndexSM 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. |
| |||
The Dow 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. |
| |||
The Lipper Global Infrastructure Funds Classification Average represents an average of all the funds in the Lipper Global Infrastructure Funds classification. |
| |||
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 visiting invesco.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, visit blog.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 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (5/2/14) | 3.82 | % | ||
5 Years | 4.51 | |||
1 Year | -8.88 | |||
Class C Shares | ||||
Inception (5/2/14) | 3.76 | % | ||
5 Years | 4.88 | |||
1 Year | -5.30 | |||
Class R Shares | ||||
Inception (5/2/14) | 4.20 | % | ||
5 Years | 5.41 | |||
1 Year | -3.92 | |||
Class Y Shares | ||||
Inception (5/2/14) | 4.73 | % | ||
5 Years | 5.96 | |||
1 Year | -3.33 | |||
Class R5 Shares | ||||
Inception (5/2/14) | 4.73 | % | ||
5 Years | 5.96 | |||
1 Year | -3.40 | |||
Class R6 Shares | ||||
Inception (5/2/14) | 4.73 | % | ||
5 Years | 5.97 | |||
1 Year | -3.33 |
The performance data quoted represent past performance and cannot guarantee 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.
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 Global Infrastructure Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco. |
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Global Infrastructure Fund |
April 30, 2023
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–96.94% |
| |||||||
Australia–4.64% | ||||||||
Transurban Group | 548,339 | $ | 5,443,130 | |||||
| ||||||||
Brazil–0.28% | ||||||||
Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | 35,615 | 329,439 | ||||||
| ||||||||
Canada–9.99% | ||||||||
Canadian National Railway Co. | 15,352 | 1,829,980 | ||||||
| ||||||||
Enbridge, Inc. | 88,473 | 3,517,763 | ||||||
| ||||||||
Gibson Energy, Inc. | 209,026 | 3,546,893 | ||||||
| ||||||||
Hydro One Ltd.(a) | 22,397 | 655,949 | ||||||
| ||||||||
TC Energy Corp. | 52,030 | 2,162,460 | ||||||
| ||||||||
11,713,045 | ||||||||
| ||||||||
China–3.81% | ||||||||
China Gas Holdings Ltd. | 311,800 | 400,744 | ||||||
| ||||||||
China Resources Gas Group Ltd. | 343,000 | 1,085,002 | ||||||
| ||||||||
Kunlun Energy Co. Ltd. | 1,166,000 | 1,081,887 | ||||||
| ||||||||
Yuexiu Transport Infrastructure Ltd. | 3,482,000 | 1,902,566 | ||||||
| ||||||||
4,470,199 | ||||||||
| ||||||||
Denmark–2.09% | ||||||||
Orsted A/S(a) | 27,239 | 2,448,105 | ||||||
| ||||||||
France–7.44% | ||||||||
Vinci S.A. | 70,490 | 8,728,598 | ||||||
| ||||||||
Hong Kong–2.22% | ||||||||
CLP Holdings Ltd. | 80,500 | 599,976 | ||||||
| ||||||||
Hong Kong & China Gas Co. Ltd. (The) | 2,261,000 | 2,008,173 | ||||||
| ||||||||
2,608,149 | ||||||||
| ||||||||
Italy–4.99% | ||||||||
Infrastrutture Wireless Italiane S.p.A.(a) | 141,111 | 1,962,387 | ||||||
| ||||||||
Italgas S.p.A. | 596,016 | 3,890,759 | ||||||
| ||||||||
5,853,146 | ||||||||
| ||||||||
Japan–0.73% | ||||||||
Tokyo Gas Co. Ltd. | 41,800 | 858,337 | ||||||
| ||||||||
Luxembourg–1.54% | ||||||||
SES S.A., FDR | 291,835 | 1,809,098 | ||||||
| ||||||||
Mexico–1.89% | ||||||||
Grupo Aeroportuario del Sureste S.A.B. de C.V., ADR | 7,726 | 2,212,108 | ||||||
| ||||||||
Netherlands–1.56% | ||||||||
Koninklijke Vopak N.V. | 47,901 | 1,830,563 | ||||||
| ||||||||
Portugal–2.50% | ||||||||
EDP - Energias de Portugal S.A. | 532,630 | 2,938,555 | ||||||
|
Investment Abbreviations:
ADR – American Depositary Receipt
FDR – Fiduciary Depositary Receipt
Shares | Value | |||||||
| ||||||||
Spain–1.90% | ||||||||
Aena SME S.A.(a)(b) | 13,221 | $ | 2,232,643 | |||||
| ||||||||
United Kingdom–2.01% | ||||||||
SSE PLC | 101,962 | 2,352,465 | ||||||
| ||||||||
United States–49.35% | ||||||||
American States Water Co. | 9,240 | 820,050 | ||||||
| ||||||||
American Tower Corp. | 53,953 | 11,027,454 | ||||||
| ||||||||
California Water Service Group | 61,357 | 3,440,901 | ||||||
| ||||||||
CenterPoint Energy, Inc. | 42,184 | 1,285,346 | ||||||
| ||||||||
Cheniere Energy, Inc. | 38,963 | 5,961,339 | ||||||
| ||||||||
Crown Castle, Inc. | 36,856 | 4,536,605 | ||||||
| ||||||||
Essential Utilities, Inc. | 36,588 | 1,562,308 | ||||||
| ||||||||
Eversource Energy | 81,971 | 6,361,769 | ||||||
| ||||||||
Kinder Morgan, Inc. | 244,419 | 4,191,786 | ||||||
| ||||||||
NextEra Energy, Inc.(c) | 14,692 | 1,125,848 | ||||||
| ||||||||
NiSource, Inc. | 175,080 | 4,982,777 | ||||||
| ||||||||
PG&E Corp.(b)(c) | 141,713 | 2,424,709 | ||||||
| ||||||||
PPL Corp. | 85,445 | 2,453,980 | ||||||
| ||||||||
Sempra Energy(c) | 16,050 | 2,495,614 | ||||||
| ||||||||
Targa Resources Corp. | 20,794 | 1,570,571 | ||||||
| ||||||||
Xcel Energy, Inc. | 52,116 | 3,643,430 | ||||||
| ||||||||
57,884,487 | ||||||||
| ||||||||
Total Common Stocks & Other Equity Interests |
| 113,712,067 | ||||||
| ||||||||
Money Market Funds–2.62% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, | 1,074,577 | 1,074,577 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(d)(e) | 767,167 | 767,397 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(d)(e) | 1,228,089 | 1,228,089 | ||||||
| ||||||||
Total Money Market Funds |
| 3,070,063 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-99.56% |
| 116,782,130 | ||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–2.51% | ||||||||
Invesco Private Government Fund, 4.83%(d)(e)(f) | 824,335 | 824,335 | ||||||
| ||||||||
Invesco Private Prime Fund, | 2,119,717 | 2,119,717 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 2,944,052 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–102.07% | 119,726,182 | |||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(2.07)% | (2,422,564 | ) | ||||||
| ||||||||
NET ASSETS–100.00% | $ | 117,303,618 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Global Infrastructure Fund |
Notes to Schedule of Investments:
(a) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “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, 2023 was $7,299,084, which represented 6.22% of the Fund’s Net Assets. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2023. |
(d) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Change in | ||||||||||||||||||||||||||||
Unrealized | Realized | |||||||||||||||||||||||||||
Value | Purchases | Proceeds | Appreciation | Gain | Value | |||||||||||||||||||||||
October 31, 2022 | at Cost | from Sales | (Depreciation) | (Loss) | April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ 193,359 | $ | 9,509,641 | $ | (8,628,423 | ) | $ - | $ | - | $1,074,577 | $ 14,458 | |||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 138,164 | 6,792,601 | (6,163,331 | ) | 17 | (54) | 767,397 | 10,141 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 220,982 | 10,868,162 | (9,861,055 | ) | - | - | 1,228,089 | 15,893 | ||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 770,155 | 7,085,193 | (7,031,013 | ) | - | - | 824,335 | 4,672* | ||||||||||||||||||||
Invesco Private Prime Fund | 1,980,320 | 17,420,643 | (17,282,290 | ) | (1) | 1,045 | 2,119,717 | 13,100* | ||||||||||||||||||||
Total | $3,302,980 | $ | 51,676,240 | $ | (48,966,112 | ) | $16 | $ | 991 | $6,014,115 | $ 58,264 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1K. |
Portfolio Composition
By infrastructure sector, based on Net Assets
as of April 30, 2023
Midstream Services | 28.08 | % | ||
Towers | 23.16 | |||
Gas Utilities | 22.77 | |||
Electric Utilities | 8.31 | |||
Diversified | 3.97 | |||
Water Utilities | 2.94 | |||
Freight Logistics | 2.66 | |||
Airports | 2.53 | |||
Tolls | 2.49 | |||
Infrastructure Sectors each less than 2.0% of net assets | 2.24 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.85 |
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, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 113,712,067 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $6,014,056) | 6,014,115 | |||
| ||||
Cash | 7 | |||
| ||||
Foreign currencies, at value (Cost $294,201) | 294,415 | |||
| ||||
Receivable for: | ||||
Investments sold | 724,262 | |||
| ||||
Fund shares sold | 27,048 | |||
| ||||
Dividends | 317,024 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 22,944 | |||
| ||||
Other assets | 74,136 | |||
| ||||
Total assets | 121,186,018 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 700,859 | |||
| ||||
Fund shares reacquired | 34,367 | |||
| ||||
Collateral upon return of securities loaned | 2,944,052 | |||
| ||||
Accrued fees to affiliates | 146,747 | |||
| ||||
Accrued other operating expenses | 33,431 | |||
| ||||
Trustee deferred compensation and retirement plans | 22,944 | |||
| ||||
Total liabilities | 3,882,400 | |||
| ||||
Net assets applicable to shares outstanding | $ | 117,303,618 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 110,860,232 | ||
| ||||
Distributable earnings | 6,443,386 | |||
| ||||
$ | 117,303,618 | |||
|
Net Assets: | ||||
Class A | $ | 21,880,650 | ||
| ||||
Class C | $ | 3,520,274 | ||
| ||||
Class R | $ | 5,699,030 | ||
| ||||
Class Y | $ | 25,601,507 | ||
| ||||
Class R5 | $ | 126,951 | ||
| ||||
Class R6 | $ | 60,475,206 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 1,819,524 | |||
| ||||
Class C | 293,251 | |||
| ||||
Class R | 474,352 | |||
| ||||
Class Y | 2,128,493 | |||
| ||||
Class R5 | 10,543 | |||
| ||||
Class R6 | 5,024,485 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 12.03 | ||
| ||||
Maximum offering price per share | $ | 12.73 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 12.00 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 12.01 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 12.03 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 12.04 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 12.04 | ||
|
* | At April 30, 2023, securities with an aggregate value of $2,890,230 were on loan to brokers. |
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, 2023
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $175,732) | $ | 1,970,224 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $1,514) | 42,006 | |||
| ||||
Total investment income | 2,012,230 | |||
| ||||
Expenses: | ||||
Advisory fees | 484,272 | |||
| ||||
Administrative services fees | 8,372 | |||
| ||||
Custodian fees | 8,154 | |||
| ||||
Distribution fees: | ||||
Class A | 27,533 | |||
| ||||
Class C | 17,046 | |||
| ||||
Class R | 13,967 | |||
| ||||
Transfer agent fees – A, C, R and Y | 158,777 | |||
| ||||
Transfer agent fees – R5 | 64 | |||
| ||||
Transfer agent fees – R6 | 8,706 | |||
| ||||
Trustees’ and officers’ fees and benefits | 6,652 | |||
| ||||
Registration and filing fees | 41,951 | |||
| ||||
Reports to shareholders | 7,315 | |||
| ||||
Professional services fees | 30,683 | |||
| ||||
Other | 7,086 | |||
| ||||
Total expenses | 820,578 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (186,012 | ) | ||
| ||||
Net expenses | 634,566 | |||
| ||||
Net investment income | 1,377,664 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | 606,535 | |||
| ||||
Affiliated investment securities | 991 | |||
| ||||
Foreign currencies | (7,018 | ) | ||
| ||||
600,508 | ||||
| ||||
Change in net unrealized appreciation of: | ||||
Unaffiliated investment securities | 8,159,666 | |||
| ||||
Affiliated investment securities | 16 | |||
| ||||
Foreign currencies | 608 | |||
| ||||
8,160,290 | ||||
| ||||
Net realized and unrealized gain | 8,760,798 | |||
| ||||
Net increase in net assets resulting from operations | $ | 10,138,462 | ||
|
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, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 1,377,664 | $ | 2,411,199 | ||||
| ||||||||
Net realized gain | 600,508 | 1,570,917 | ||||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 8,160,290 | (17,458,439 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 10,138,462 | (13,476,323 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (212,749 | ) | (425,602 | ) | ||||
| ||||||||
Class C | (19,190 | ) | (38,107 | ) | ||||
| ||||||||
Class R | (45,648 | ) | (90,182 | ) | ||||
| ||||||||
Class Y | (269,918 | ) | (598,947 | ) | ||||
| ||||||||
Class R5 | (1,390 | ) | (2,384 | ) | ||||
| ||||||||
Class R6 | (625,495 | ) | (1,341,029 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (1,174,390 | ) | (2,496,251 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (2,585,859 | ) | 5,208,346 | |||||
| ||||||||
Class C | 76,381 | 486,101 | ||||||
| ||||||||
Class R | 7,296 | 757,000 | ||||||
| ||||||||
Class Y | (3,247,522 | ) | 8,939,989 | |||||
| ||||||||
Class R5 | (7,812 | ) | 107,632 | |||||
| ||||||||
Class R6 | 1,433,056 | (5,267,234 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (4,324,460 | ) | 10,231,834 | |||||
| ||||||||
Net increase (decrease) in net assets | 4,639,612 | (5,740,740 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 112,664,006 | 118,404,746 | ||||||
| ||||||||
End of period | $ | 117,303,618 | $ | 112,664,006 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Global Infrastructure Fund |
(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 | 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 04/30/23 | $11.12 | $0.13 | $0.89 | $1.02 | $(0.11 | ) | $ – | $ – | $(0.11 | ) | $12.03 | 9.22 | % | $21,881 | 1.25 | %(d) | 1.84 | %(d) | 2.24 | %(d) | 95 | % | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.70 | 0.22 | (1.57 | ) | (1.35 | ) | (0.23 | ) | – | – | (0.23 | ) | 11.12 | (10.74 | ) | 22,737 | 1.25 | 1.47 | 1.81 | 127 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.23 | 0.20 | (e) | 2.46 | 2.66 | (0.19 | ) | – | – | (0.19 | ) | 12.70 | 26.22 | 20,774 | 1.29 | 1.62 | 1.65 | (e) | 103 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.88 | 0.19 | (1.38 | ) | (1.19 | ) | (0.20 | ) | (0.26 | ) | – | (0.46 | ) | 10.23 | (10.28 | ) | 12,198 | 1.28 | 1.58 | 1.77 | 244 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.01 | 0.19 | 1.85 | 2.04 | (0.17 | ) | – | – | (0.17 | ) | 11.88 | 20.55 | 8,918 | 1.28 | 2.35 | 1.77 | 106 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 10.74 | 0.18 | (0.45 | ) | (0.27 | ) | (0.19 | ) | (0.25 | ) | (0.02 | ) | (0.46 | ) | 10.01 | (2.65 | ) | 8,098 | 1.28 | 2.56 | 1.76 | 114 | ||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 11.10 | 0.09 | 0.88 | 0.97 | (0.07 | ) | – | – | (0.07 | ) | 12.00 | 8.73 | 3,520 | 2.00 | (d) | 2.59 | (d) | 1.49 | (d) | 95 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.67 | 0.13 | (1.56 | ) | (1.43 | ) | (0.14 | ) | – | – | (0.14 | ) | 11.10 | (11.38 | ) | 3,187 | 2.00 | 2.22 | 1.06 | 127 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.21 | 0.11 | (e) | 2.46 | 2.57 | (0.11 | ) | – | – | (0.11 | ) | 12.67 | 25.23 | 3,178 | 2.04 | 2.37 | 0.90 | (e) | 103 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.85 | 0.11 | (1.37 | ) | (1.26 | ) | (0.12 | ) | (0.26 | ) | – | (0.38 | ) | 10.21 | (10.94 | ) | 2,130 | 2.03 | 2.33 | 1.02 | 244 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 9.99 | 0.11 | 1.84 | 1.95 | (0.09 | ) | – | – | (0.09 | ) | 11.85 | 19.60 | 1,191 | 2.03 | 3.10 | 1.02 | 106 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 10.72 | 0.10 | (0.44 | ) | (0.34 | ) | (0.13 | ) | (0.25 | ) | (0.01 | ) | (0.39 | ) | 9.99 | (3.39 | ) | 1,579 | 2.03 | 3.31 | 1.01 | 114 | ||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 11.11 | 0.12 | 0.88 | 1.00 | (0.10 | ) | – | – | (0.10 | ) | 12.01 | 9.00 | 5,699 | 1.50 | (d) | 2.09 | (d) | 1.99 | (d) | 95 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.69 | 0.19 | (1.57 | ) | (1.38 | ) | (0.20 | ) | – | – | (0.20 | ) | 11.11 | (10.99 | ) | 5,267 | 1.50 | 1.72 | 1.56 | 127 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.22 | 0.17 | (e) | 2.47 | 2.64 | (0.17 | ) | – | – | (0.17 | ) | 12.69 | 25.93 | 5,241 | 1.54 | 1.87 | 1.40 | (e) | 103 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.87 | 0.16 | (1.37 | ) | (1.21 | ) | (0.18 | ) | (0.26 | ) | – | (0.44 | ) | 10.22 | (10.53 | ) | 3,326 | 1.53 | 1.83 | 1.52 | 244 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.01 | 0.17 | 1.84 | 2.01 | (0.15 | ) | – | – | (0.15 | ) | 11.87 | 20.15 | 495 | 1.53 | 2.60 | 1.52 | 106 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 10.73 | 0.16 | (0.44 | ) | (0.28 | ) | (0.18 | ) | (0.25 | ) | (0.01 | ) | (0.44 | ) | 10.01 | (2.80 | ) | 351 | 1.53 | 2.81 | 1.51 | 114 | ||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 11.13 | 0.15 | 0.88 | 1.03 | (0.13 | ) | – | – | (0.13 | ) | 12.03 | 9.26 | 25,602 | 1.00 | (d) | 1.59 | (d) | 2.49 | (d) | 95 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.70 | 0.26 | (1.56 | ) | (1.30 | ) | (0.27 | ) | – | – | (0.27 | ) | 11.13 | (10.44 | ) | 26,747 | 1.00 | 1.22 | 2.06 | 127 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.23 | 0.23 | (e) | 2.46 | 2.69 | (0.22 | ) | – | – | (0.22 | ) | 12.70 | 26.53 | 21,558 | 1.04 | 1.37 | 1.90 | (e) | 103 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.89 | 0.22 | (1.39 | ) | (1.17 | ) | (0.23 | ) | (0.26 | ) | – | (0.49 | ) | 10.23 | (10.11 | ) | 11,910 | 1.03 | 1.33 | 2.02 | 244 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.02 | 0.22 | 1.85 | 2.07 | (0.20 | ) | – | – | (0.20 | ) | 11.89 | 20.82 | 11,108 | 1.03 | 2.10 | 2.02 | 106 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 10.74 | 0.21 | (0.44 | ) | (0.23 | ) | (0.22 | ) | (0.25 | ) | (0.02 | ) | (0.49 | ) | 10.02 | (2.31 | ) | 9,775 | 1.03 | 2.31 | 2.01 | 114 | ||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 11.14 | 0.15 | 0.88 | 1.03 | (0.13 | ) | – | – | (0.13 | ) | 12.04 | 9.26 | 127 | 1.00 | (d) | 1.13 | (d) | 2.49 | (d) | 95 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.72 | 0.26 | (1.57 | ) | (1.31 | ) | (0.27 | ) | – | – | (0.27 | ) | 11.14 | (10.50 | ) | 125 | 1.00 | 1.13 | 2.06 | 127 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.24 | 0.23 | (e) | 2.47 | 2.70 | (0.22 | ) | – | – | (0.22 | ) | 12.72 | 26.61 | 37 | 1.02 | 1.14 | 1.92 | (e) | 103 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.89 | 0.22 | (1.39 | ) | (1.17 | ) | (0.22 | ) | (0.26 | ) | – | (0.48 | ) | 10.24 | (10.11 | ) | 10 | 1.03 | 1.15 | 2.02 | 244 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.02 | 0.22 | 1.85 | 2.07 | (0.20 | ) | – | – | (0.20 | ) | 11.89 | 20.82 | 12 | 1.03 | 2.00 | 2.02 | 106 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 10.74 | 0.21 | (0.44 | ) | (0.23 | ) | (0.22 | ) | (0.25 | ) | (0.02 | ) | (0.49 | ) | 10.02 | (2.31 | ) | 10 | 1.03 | 2.19 | 2.01 | 114 | ||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 11.14 | 0.15 | 0.88 | 1.03 | (0.13 | ) | – | – | (0.13 | ) | 12.04 | 9.26 | 60,475 | 1.00 | (d) | 1.06 | (d) | 2.49 | (d) | 95 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 12.71 | 0.26 | (1.56 | ) | (1.30 | ) | (0.27 | ) | – | – | (0.27 | ) | 11.14 | (10.43 | ) | 54,601 | 1.00 | 1.06 | 2.06 | 127 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.24 | 0.23 | (e) | 2.47 | 2.70 | (0.23 | ) | – | – | (0.23 | ) | 12.71 | 26.53 | 67,617 | 1.02 | 1.14 | 1.92 | (e) | 103 | |||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 11.89 | 0.22 | (1.39 | ) | (1.17 | ) | (0.22 | ) | (0.26 | ) | – | (0.48 | ) | 10.24 | (10.10 | ) | 48,033 | 1.00 | 1.15 | 2.05 | 244 | |||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.02 | 0.22 | 1.85 | 2.07 | (0.20 | ) | – | – | (0.20 | ) | 11.89 | 20.82 | 12 | 1.03 | 2.00 | 2.02 | 106 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 10.74 | 0.21 | (0.44 | ) | (0.23 | ) | (0.22 | ) | (0.25 | ) | (0.02 | ) | (0.49 | ) | 10.02 | (2.31 | ) | 229 | 1.03 | 2.19 | 2.01 | 114 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2020, the portfolio turnover calculation excludes the value of securities purchased of $109,495,771 and sold of $26,558,548 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco Oppenheimer Global Infrastructure Fund into the Fund. |
(d) | Annualized. |
(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 for the year ended October 31, 2021 are $0.16 and 1.31%, $0.07 and 0.56%, $0.13 and 1.06%, $0.19 and 1.56%, $0.19 and 1.58% and $0.19 and 1.58% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Global Infrastructure Fund |
April 30, 2023
(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 total return through growth of capital and current income.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.
11 | Invesco Global Infrastructure Fund |
Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions - Distributions from net investment income, if any, are declared and paid quarterly and are recorded on the ex-dividend date. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | 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.
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 based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
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. |
K. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower |
12 | Invesco Global Infrastructure Fund |
did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
L. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the 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.
M. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the 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.
N. | Other Risks – The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly. |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $1 billion | 0.840 | % | ||
Next $1 billion | 0.800 | % | ||
Next $3 billion | 0.780 | % | ||
Over $5 billion | 0.733 | % |
For the six months ended April 30, 2023, the effective advisory fee rate 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. 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, 2024, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 to 1.25%, 2.00%, 1.50%, 1.00%, 1.00% and 1.00%, respectively of the Fund’s average daily net assets (the "expense limits"). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 29, 2024. 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 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 |
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $16,771 and reimbursed class level expenses of $61,876, $9,505, $15,576, $71,820, $64 and $8,706 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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $3,109 in front-end sales commissions from the sale of Class A shares and $2,595 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. 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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | – | $ | 5,443,130 | $– | $ | 5,443,130 | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Brazil | 329,439 | – | – | 329,439 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Canada | 11,713,045 | – | – | 11,713,045 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
China | – | 4,470,199 | – | 4,470,199 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Denmark | – | 2,448,105 | – | 2,448,105 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
France | – | 8,728,598 | – | 8,728,598 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Hong Kong | – | 2,608,149 | – | 2,608,149 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Italy | – | 5,853,146 | – | 5,853,146 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Japan | – | 858,337 | – | 858,337 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Luxembourg | – | 1,809,098 | – | 1,809,098 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Mexico | 2,212,108 | – | – | 2,212,108 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Netherlands | – | 1,830,563 | – | 1,830,563 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Portugal | – | 2,938,555 | – | 2,938,555 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Spain | – | 2,232,643 | – | 2,232,643 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
United Kingdom | – | 2,352,465 | – | 2,352,465 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
United States | 57,884,487 | – | – | 57,884,487 | ||||||||||||||||||||||||
|
14 | Invesco Global Infrastructure Fund |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
| ||||||||||||||||||||||||
Money Market Funds | $ | 3,070,063 | $ | 2,944,052 | $– | $ | 6,014,115 | |||||||||||||||||
| ||||||||||||||||||||||||
Total Investments | $ | 75,209,142 | $ | 44,517,040 | $– | $ | 119,726,182 | |||||||||||||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $1,694.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||
| ||||||
Expiration | Short-Term | Long-Term | Total | |||
| ||||||
Not subject to expiration | $1,063,376 | $– | $1,063,376 | |||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $107,986,395 and $114,783,247, 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 | $ | 9,024,054 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (2,367,848 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 6,656,206 | ||
|
Cost of investments for tax purposes is $113,069,976.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: |
| |||||||||||||||
Class A | 198,949 | $ | 2,356,439 | 737,018 | $ | 9,232,181 | ||||||||||
| ||||||||||||||||
Class C | 37,619 | 444,075 | 100,098 | 1,255,824 | ||||||||||||
| ||||||||||||||||
Class R | 41,261 | 487,439 | 100,361 | 1,258,512 | ||||||||||||
| ||||||||||||||||
Class Y | 511,840 | 6,114,584 | 1,771,710 | 22,226,181 | ||||||||||||
| ||||||||||||||||
Class R5 | 731 | 8,564 | 12,275 | 155,405 | ||||||||||||
| ||||||||||||||||
Class R6 | 141,936 | 1,677,737 | 383,428 | 5,055,554 | ||||||||||||
|
15 | Invesco Global Infrastructure Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: |
| |||||||||||||||
Class A | 15,476 | $ | 179,862 | 31,270 | $ | 379,344 | ||||||||||
| ||||||||||||||||
Class C | 1,596 | 18,496 | 3,051 | 36,907 | ||||||||||||
| ||||||||||||||||
Class R | 3,936 | 45,648 | 7,432 | 90,180 | ||||||||||||
| ||||||||||||||||
Class Y | 11,195 | 130,501 | 33,431 | 407,847 | ||||||||||||
| ||||||||||||||||
Class R5 | 109 | 1,270 | 177 | 2,132 | ||||||||||||
| ||||||||||||||||
Class R6 | 53,870 | 625,370 | 110,033 | 1,340,763 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: |
| |||||||||||||||
Class A | 9,666 | 112,995 | 21,247 | 255,114 | ||||||||||||
| ||||||||||||||||
Class C | (9,680 | ) | (112,995 | ) | (21,288 | ) | (255,114 | ) | ||||||||
| ||||||||||||||||
Reacquired: |
| |||||||||||||||
Class A | (448,338 | ) | (5,235,155 | ) | (381,529 | ) | (4,658,293 | ) | ||||||||
| ||||||||||||||||
Class C | (23,274 | ) | (273,195 | ) | (45,643 | ) | (551,516 | ) | ||||||||
| ||||||||||||||||
Class R | (44,759 | ) | (525,791 | ) | (46,910 | ) | (591,692 | ) | ||||||||
| ||||||||||||||||
Class Y | (798,382 | ) | (9,492,607 | ) | (1,098,491 | ) | (13,694,039 | ) | ||||||||
| ||||||||||||||||
Class R5 | (1,498 | ) | (17,646 | ) | (4,183 | ) | (49,905 | ) | ||||||||
| ||||||||||||||||
Class R6 | (74,835 | ) | (870,051 | ) | (908,854 | ) | (11,663,551 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (372,582 | ) | $ | (4,324,460 | ) | 804,633 | $ | 10,231,834 | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 12% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
In addition, 49% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
16 | 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, 2022 through April 30, 2023.
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 | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized | |||||||||
Ending Account Value | Expenses Paid During | Ending Account Value | Expenses Paid During | |||||||||
Class A | $1,000.00 | $1,092.20 | $6.48 | $1,018.60 | $6.26 | 1.25% | ||||||
Class C | 1,000.00 | 1,087.30 | 10.35 | 1,014.88 | 9.99 | 2.00 | ||||||
Class R | 1,000.00 | 1,090.00 | 7.77 | 1,017.36 | 7.50 | 1.50 | ||||||
Class Y | 1,000.00 | 1,092.60 | 5.19 | 1,019.84 | 5.01 | 1.00 | ||||||
Class R5 | 1,000.00 | 1,092.60 | 5.19 | 1,019.84 | 5.01 | 1.00 | ||||||
Class R6 | 1,000.00 | 1,092.60 | 5.19 | 1,019.84 | 5.01 | 1.00 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses. |
2 | Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year. |
17 | Invesco Global 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | GBLI-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Global Strategic Income Fund
Nasdaq:
A: OPSIX ∎ C: OSICX ∎ R: OSINX ∎ Y: OSIYX ∎ R5: GLSSX ∎ R6: OSIIX
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
|
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Performance summary
|
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance. |
| |||
Class A Shares | 9.56 | % | ||
Class C Shares | 9.53 | |||
Class R Shares | 9.77 | |||
Class Y Shares | 10.07 | |||
Class R5 Shares | 10.11 | |||
Class R6 Shares | 10.16 | |||
Bloomberg Global Aggregate Index▼ | 8.92 | |||
Source(s): ▼RIMES Technologies Corp. | ||||
The Bloomberg Global Aggregate Index is an unmanaged index considered representative of global investment-grade, fixed-income markets. |
| |||
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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco Global Strategic Income Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (10/16/89) | 5.62 | % | ||
10 Years | 0.05 | |||
5 Years | -1.41 | |||
1 Year | -3.47 | |||
Class C Shares | ||||
Inception (5/26/95) | 4.56 | % | ||
10 Years | -0.14 | |||
5 Years | -1.31 | |||
1 Year | -0.68 | |||
Class R Shares | ||||
Inception (3/1/01) | 3.91 | % | ||
10 Years | 0.26 | |||
5 Years | -0.80 | |||
1 Year | 0.81 | |||
Class Y Shares | ||||
Inception (1/26/98) | 4.39 | % | ||
10 Years | 0.76 | |||
5 Years | -0.32 | |||
1 Year | 0.99 | |||
Class R5 Shares | ||||
10 Years | 0.67 | % | ||
5 Years | -0.21 | |||
1 Year | 1.44 | |||
Class R6 Shares | ||||
Inception (1/27/12) | 1.96 | % | ||
10 Years | 0.91 | |||
5 Years | -0.20 | |||
1 Year | 1.11 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer Global Strategic Income Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer Global Strategic Income Fund. Note: The Fund was subsequently renamed the Invesco Global Strategic Income Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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.
3 | Invesco Global Strategic Income Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Global Strategic Income Fund |
Consolidated Schedule of Investments
April 30, 2023
(Unaudited)
Principal | ||||||||||||
Amount | Value | |||||||||||
Non-U.S. Dollar Denominated Bonds & Notes–35.49%(a) |
| |||||||||||
Argentina–0.17% | ||||||||||||
Argentina Treasury Bond BONCER, 2.00%, 09/11/2026 | ARS | 215,000,000 | $ 2,921,664 | |||||||||
Australia–0.96% | ||||||||||||
New South Wales Treasury Corp., 1.75%, 03/20/2034(b) | AUD | 18,095,000 | 9,421,549 | |||||||||
Treasury Corp. of Victoria, 2.00%, 11/20/2037 | AUD | 14,000,000 | 6,770,735 | |||||||||
16,192,284 | ||||||||||||
Austria–0.54% | ||||||||||||
Erste Group Bank AG, | EUR | 4,600,000 | 4,819,705 | |||||||||
4.25%(b)(c)(d) | EUR | 1,800,000 | 1,488,652 | |||||||||
Republic of Austria Government Bond, 2.10%, 09/20/2117(b) | EUR | 3,587,000 | 2,888,120 | |||||||||
9,196,477 | ||||||||||||
Belgium–0.42% | ||||||||||||
KBC Group N.V., | EUR | 3,200,000 | 2,974,496 | |||||||||
4.75%(b)(c)(d) | EUR | 4,000,000 | 4,146,284 | |||||||||
7,120,780 | ||||||||||||
Brazil–10.02% | ||||||||||||
Brazil Notas do Tesouro Nacional, | BRL | 5,700,000 | 4,710,547 | |||||||||
Series F, 10.00%, 01/01/2025 | BRL | 355,000,000 | 69,022,143 | |||||||||
Series F, 10.00%, 01/01/2027 | BRL | 495,000,000 | 94,264,903 | |||||||||
Swiss Insured Brazil Power Finance S.a r.l., 9.85%, 07/16/2032(b) | BRL | 8,756,213 | 1,571,196 | |||||||||
169,568,789 | ||||||||||||
Canada–0.59% | ||||||||||||
Province of Ontario, 3.75%, 02/12/2053 | CAD | 14,000,000 | 10,030,111 | |||||||||
China–0.48% | ||||||||||||
China Government Bond, 3.32%, 04/15/2052 | CNY | 55,000,000 | 8,153,778 |
Principal | ||||||||||||
Amount | Value | |||||||||||
Colombia–2.53% | ||||||||||||
Colombian TES, | COP | 79,000,000,000 | $ 13,665,590 | |||||||||
Series B, 7.00%, 06/30/2032 | COP | 70,000,000,000 | 10,962,749 | |||||||||
Series B, 7.25%, 10/18/2034 | COP | 33,425,000,000 | 5,070,426 | |||||||||
Series B, 9.25%, 05/28/2042 | COP | 11,375,000,000 | 1,919,456 | |||||||||
Series B, 7.25%, 10/26/2050 | COP | 85,050,000,000 | 11,212,412 | |||||||||
42,830,633 | ||||||||||||
Czech Republic–0.12% | ||||||||||||
CPI Property Group S.A., 4.88%(b)(c)(d) | EUR | 4,100,000 | 1,934,279 | |||||||||
Egypt–0.09% | ||||||||||||
Egypt Government International Bond, 4.75%, 04/16/2026(b) | EUR | 2,000,000 | 1,422,939 | |||||||||
France–1.43% | ||||||||||||
Accor S.A., 4.38%(b)(c)(d) | EUR | 1,700,000 | 1,824,527 | |||||||||
BPCE S.A., Series NC5, 1.50%, | EUR | 5,000,000 | 4,665,843 | |||||||||
Electricite de France S.A., 5.38%(b)(c)(d) | EUR | 5,400,000 | 5,725,283 | |||||||||
French Republic Government Bond OAT, 0.00%, 05/25/2032(b) | EUR | 14,000,000 | 12,017,508 | |||||||||
24,233,161 | ||||||||||||
Germany–0.59% | ||||||||||||
Bayer AG, 2.38%, 11/12/2079(b)(c) | EUR | 3,700,000 | 3,796,980 | |||||||||
Deutsche Lufthansa AG, 4.38%, | EUR | 3,600,000 | 3,589,900 | |||||||||
Nidda Healthcare Holding GmbH, 7.50%, 08/21/2026(b) | EUR | 990,000 | 1,063,233 | |||||||||
Volkswagen International Finance N.V., 4.63%(b)(c)(d) | EUR | 1,480,000 | 1,558,803 | |||||||||
10,008,916 | ||||||||||||
Greece–1.25% | ||||||||||||
Hellenic Republic Government Bond, | EUR | 4,450,000 | 4,936,800 | |||||||||
4.25%, 06/15/2033(b) | EUR | 14,300,000 | 15,877,927 | |||||||||
Series GDP, 0.00%, 10/15/2042 | EUR | 76,770,000 | 253,779 | |||||||||
21,068,506 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
India–1.10% | ||||||||||||
India Government Bond, | INR | 700,000,000 | $ 8,226,061 | |||||||||
7.26%, 08/22/2032 | INR | 850,000,000 | 10,458,260 | |||||||||
18,684,321 | ||||||||||||
Indonesia–0.86% | ||||||||||||
Indonesia Treasury Bond, | IDR | 140,000,000,000 | 9,587,662 | |||||||||
Series FR96, 7.00%, 02/15/2033 | IDR | 70,000,000,000 | 4,934,905 | |||||||||
14,522,567 | ||||||||||||
Italy–0.43% | ||||||||||||
Intesa Sanpaolo S.p.A., | EUR | 2,400,000 | 2,163,912 | |||||||||
5.88%(b)(c)(d) | EUR | 1,800,000 | 1,789,293 | |||||||||
6.38%(b)(c)(d) | EUR | 3,500,000 | 3,308,074 | |||||||||
7,261,279 | ||||||||||||
Ivory Coast–0.14% | ||||||||||||
Ivory Coast Government International Bond, 4.88%, 01/30/2032(b) | EUR | 2,900,000 | 2,429,793 | |||||||||
Japan–0.86% | ||||||||||||
Japan Government Bond, | JPY | 673,600,000 | 4,381,098 | |||||||||
Series 77, 1.60%, 12/20/2052 | JPY | 1,291,850,000 | 10,195,318 | |||||||||
14,576,416 | ||||||||||||
Mexico–1.49% | ||||||||||||
Mexican Bonos, Series M, 7.75%, 05/29/2031 | MXN | 481,850,000 | 25,169,055 | |||||||||
Netherlands–0.38% | ||||||||||||
ABN AMRO Bank N.V., 4.38%(b)(c)(d) | EUR | 1,700,000 | 1,685,510 | |||||||||
Cooperatieve Rabobank U.A., | EUR | 1,800,000 | 1,610,292 | |||||||||
4.38%(b)(c)(d) | EUR | 3,400,000 | 3,191,476 | |||||||||
6,487,278 | ||||||||||||
Peru–2.04% | ||||||||||||
Peru Government Bond, 6.15%, 08/12/2032 | PEN | 140,000,000 | 34,592,392 | |||||||||
Poland–1.43% | ||||||||||||
Republic of Poland Government Bond, Series 432, 1.75%, 04/25/2032 | PLN | 140,000,000 | 24,255,544 | |||||||||
Romania–0.14% | ||||||||||||
Romanian Government International Bond, 2.00%, 04/14/2033(b) | EUR | 2,997,000 | 2,299,121 |
Principal | ||||||||||||
Amount | Value | |||||||||||
South Africa–2.71% | ||||||||||||
Republic of South Africa Government Bond, Series 2030, 8.00%, 01/31/2030 | ZAR | 421,000,000 | $ 20,623,649 | |||||||||
Series 2032, 8.25%, 03/31/2032 | ZAR | 165,300,000 | 7,708,126 | |||||||||
Series 2035, 8.88%, 02/28/2035 | ZAR | 200,000,000 | 9,181,359 | |||||||||
Series 2037, 8.50%, 01/31/2037 | ZAR | 195,500,000 | 8,408,878 | |||||||||
45,922,012 | ||||||||||||
Spain–1.67% | ||||||||||||
Banco Bilbao Vizcaya Argentaria S.A., | EUR | 7,600,000 | 8,110,397 | |||||||||
Banco Santander S.A., | EUR | 1,800,000 | 1,649,589 | |||||||||
4.75%(b)(c)(d) | EUR | 2,000,000 | 1,851,277 | |||||||||
4.13%(c)(d) | EUR | 2,000,000 | 1,652,862 | |||||||||
CaixaBank S.A., | EUR | 3,400,000 | 3,685,155 | |||||||||
5.25%(b)(c)(d) | EUR | 2,000,000 | 1,867,721 | |||||||||
Repsol International Finance B.V., | EUR | 1,950,000 | 2,010,168 | |||||||||
Telefonica Europe B.V., | EUR | 3,700,000 | 3,470,532 | |||||||||
4.38%(b)(c)(d) | EUR | 3,700,000 | 3,987,337 | |||||||||
28,285,038 | ||||||||||||
Supranational–0.91% | ||||||||||||
African Development Bank, 0.00%, 01/17/2050(e) | ZAR | 222,000,000 | 1,275,507 | |||||||||
Corp. Andina de Fomento, 6.82%, 02/22/2031(b) | MXN | 221,200,000 | 9,981,220 | |||||||||
International Finance Corp., | TRY | 10,300,000 | 151,205 | |||||||||
0.00%, 03/23/2038(e) | MXN | 260,000,000 | 3,940,599 | |||||||||
15,348,531 | ||||||||||||
Sweden–0.07% | ||||||||||||
Heimstaden Bostad AB, 3.38%(b)(c)(d) | EUR | 1,850,000 | 1,160,038 | |||||||||
Thailand–0.62% | ||||||||||||
Thailand Government Bond, 3.45%, 06/17/2043 | THB | 336,000,000 | 10,551,251 | |||||||||
United Kingdom–1.45% | ||||||||||||
Barclays PLC, 7.13%(c)(d) | GBP | 9,575,000 | 10,747,858 | |||||||||
Bellis Acquisition Co. PLC, 3.25%, 02/16/2026(b) | GBP | 953,000 | 986,591 | |||||||||
HSBC Holdings PLC, 5.88%(c)(d) | GBP | 3,500,000 | 3,875,410 | |||||||||
International Consolidated Airlines Group S.A., 1.50%, 07/04/2027(b) | EUR | 1,900,000 | 1,737,609 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
United Kingdom–(continued) |
| |||||||||||
Lloyds Banking Group PLC, 8.50%(c)(d) | GBP | 2,275,000 | $ 2,709,807 | |||||||||
Nationwide Building Society, 5.75%(b)(c)(d) | GBP | 1,775,000 | 1,901,855 | |||||||||
NatWest Group PLC, | GBP | 2,415,000 | 2,550,755 | |||||||||
24,509,885 | ||||||||||||
Total Non-U.S. Dollar Denominated Bonds & Notes |
| 600,736,838 | ||||||||||
U.S. Dollar Denominated Bonds & Notes–32.29% |
| |||||||||||
Belgium–0.24% | ||||||||||||
Telenet Finance Luxembourg Notes S.a.r.l., 5.50%, 03/01/2028(b) | $ | 4,325,000 | 4,023,331 | |||||||||
Brazil–0.61% | ||||||||||||
CSN Inova Ventures, 6.75%, 01/28/2028(b)(f) | 325,000 | 309,293 | ||||||||||
CSN Resources S.A., 5.88%, 04/08/2032(b) | 1,050,000 | 865,034 | ||||||||||
Sitios Latinoamerica S.A.B. de C.V., 5.38%, 04/04/2032(b) | 4,745,000 | 4,336,897 | ||||||||||
Suzano Austria GmbH, | 1,716,000 | 1,443,436 | ||||||||||
3.75%, 01/15/2031 | 1,750,000 | 1,487,565 | ||||||||||
Vale Overseas Ltd., | 1,750,000 | 1,832,693 | ||||||||||
10,274,918 | ||||||||||||
Canada–1.30% | ||||||||||||
1011778 BC ULC/New Red Finance, Inc., | 280,000 | 263,012 | ||||||||||
3.50%, 02/15/2029(b)(f) | 1,214,000 | 1,092,604 | ||||||||||
1375209 BC Ltd., 9.00%, 01/30/2028(b) | 797,000 | 789,919 | ||||||||||
Baytex Energy Corp., 8.50%, 04/30/2030(b) | 1,287,000 | 1,295,283 | ||||||||||
Enbridge, Inc., 7.38%, 01/15/2083(c) | 6,974,000 | 6,921,695 | ||||||||||
Enerflex Ltd., 9.00%, 10/15/2027(b) | 1,266,000 | 1,263,038 | ||||||||||
Hudbay Minerals, Inc., 6.13%, 04/01/2029(b) | 1,038,000 | 971,803 | ||||||||||
New Gold, Inc., 7.50%, 07/15/2027(b) | 951,000 | 917,610 | ||||||||||
Parkland Corp., 4.50%, 10/01/2029(b) | 1,044,000 | 915,985 | ||||||||||
Ritchie Bros. Holdings, Inc., | 1,892,000 | 1,960,585 | ||||||||||
7.75%, 03/15/2031(b)(f) | 454,000 | 482,942 |
Principal | ||||||||||||
Amount | Value | |||||||||||
Canada–(continued) | ||||||||||||
Strathcona Resources Ltd., 6.88%, 08/01/2026(b) | $ | 1,081,000 | $ 915,398 | |||||||||
TransAlta Corp., 7.75%, 11/15/2029 | 839,000 | 882,032 | ||||||||||
Transcanada Trust, Series 16-A, 5.88%, 08/15/2076(c) | 3,545,000 | 3,365,091 | ||||||||||
22,036,997 | ||||||||||||
Chile–0.56% | ||||||||||||
AES Andes S.A., 6.35%, 10/07/2079(b)(c) | 1,750,000 | 1,627,138 | ||||||||||
Kenbourne Invest S.A., 4.70%, 01/22/2028(b) | 2,084,000 | 1,132,664 | ||||||||||
Mercury Chile Holdco LLC, 6.50%, 01/24/2027(b) | 7,100,000 | 6,690,330 | ||||||||||
9,450,132 | ||||||||||||
China–0.13% | ||||||||||||
NXP B.V./NXP Funding LLC, 4.88%, 03/01/2024 | 874,000 | 869,999 | ||||||||||
Prosus N.V., 4.99%, 01/19/2052(b) | 1,750,000 | 1,287,595 | ||||||||||
2,157,594 | ||||||||||||
Colombia–0.67% | ||||||||||||
Bancolombia S.A., 6.91%, 10/18/2027(c) | 6,150,000 | 5,756,677 | ||||||||||
Colombia Government International Bond, 4.13%, 02/22/2042 | 3,725,000 | 2,327,603 | ||||||||||
Ecopetrol S.A., 5.38%, 06/26/2026 | 3,500,000 | 3,318,374 | ||||||||||
11,402,654 | ||||||||||||
Czech Republic–0.05% | ||||||||||||
Allwyn Entertainment Financing (UK) PLC, 7.88%, 04/30/2029(b) | 797,000 | 807,042 | ||||||||||
Denmark–0.18% | ||||||||||||
Danske Bank A/S, 7.00%(b)(c)(d) | 3,200,000 | 2,998,416 | ||||||||||
Dominican Republic–0.10% | ||||||||||||
Dominican Republic International Bond, | 720,000 | 639,123 | ||||||||||
4.88%, 09/23/2032(b) | 1,200,000 | 1,037,689 | ||||||||||
1,676,812 | ||||||||||||
Egypt–0.13% | ||||||||||||
Egypt Government International Bond, | 1,500,000 | 846,078 | ||||||||||
8.50%, 01/31/2047(b) | 2,600,000 | 1,379,534 | ||||||||||
2,225,612 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
France–1.58% | ||||||||||||
Altice France S.A., | $ | 1,226,000 | $ 1,095,834 | |||||||||
5.13%, 07/15/2029(b) | 766,000 | 567,032 | ||||||||||
5.50%, 10/15/2029(b) | 730,000 | 547,121 | ||||||||||
BNP Paribas S.A., | 8,500,000 | 8,192,899 | ||||||||||
6.63%(b)(c)(d) | 1,400,000 | 1,339,310 | ||||||||||
7.75%(b)(c)(d) | 1,750,000 | 1,675,625 | ||||||||||
BPCE S.A., 5.15%, 07/21/2024(b) | 3,500,000 | 3,436,235 | ||||||||||
Credit Agricole S.A., | 4,700,000 | 4,678,385 | ||||||||||
Iliad Holding S.A.S., 6.50%, 10/15/2026(b) | 275,000 | 264,855 | ||||||||||
Iliad Holding S.A.S.U., 7.00%, 10/15/2028(b) | 1,899,000 | 1,798,611 | ||||||||||
Societe Generale S.A., | 1,750,000 | 1,652,884 | ||||||||||
9.38%(b)(c)(d) | 1,591,000 | 1,514,473 | ||||||||||
26,763,264 | ||||||||||||
Germany–0.05% | ||||||||||||
ZF North America Capital, Inc., 6.88%, 04/14/2028(b) | 876,000 | 902,354 | ||||||||||
Guatemala–0.16% | ||||||||||||
CT Trust, 5.13%, 02/03/2032(b) | 2,000,000 | 1,651,894 | ||||||||||
Guatemala Government Bond, 3.70%, 10/07/2033(b) | 1,200,000 | 1,006,002 | ||||||||||
2,657,896 | ||||||||||||
Hong Kong–0.84% | ||||||||||||
Melco Resorts Finance Ltd., | 9,250,000 | 8,699,024 | ||||||||||
5.75%, 07/21/2028(b) | 1,775,000 | 1,548,687 | ||||||||||
5.38%, 12/04/2029(b) | 1,018,000 | 846,668 | ||||||||||
Prudential Funding Asia PLC, 4.88%(b)(d) | 3,550,000 | 3,100,978 | ||||||||||
14,195,357 | ||||||||||||
India–0.78% | ||||||||||||
JSW Steel Ltd., 3.95%, 04/05/2027(b) | 4,260,000 | 3,748,277 | ||||||||||
Muthoot Finance Ltd., 4.40%, 09/02/2023(b) | 1,126,000 | 1,117,133 | ||||||||||
Network i2i Ltd., | 1,050,000 | 1,008,000 | ||||||||||
3.98%(b)(c)(d) | 1,050,000 | 930,594 | ||||||||||
Oil & Natural Gas Corp. Ltd., 3.38%, 12/05/2029(b) | 3,500,000 | 3,153,238 |
Principal | ||||||||||||
Amount | Value | |||||||||||
India–(continued) | ||||||||||||
Reliance Industries Ltd., 4.88%, 02/10/2045(b) | $ | 3,600,000 | $ 3,252,410 | |||||||||
13,209,652 | ||||||||||||
Indonesia–1.23% | ||||||||||||
PT Bank Tabungan Negara (Persero) Tbk, 4.20%, 01/23/2025(b) | 6,390,000 | 6,070,500 | ||||||||||
PT Cikarang Listrindo Tbk, 4.95%, 09/14/2026(b) | 4,475,000 | 4,212,937 | ||||||||||
PT Freeport Indonesia, 6.20%, 04/14/2052(b) | 3,000,000 | 2,769,507 | ||||||||||
PT Pertamina (Persero), 4.18%, 01/21/2050(b) | 1,775,000 | 1,394,532 | ||||||||||
PT Perusahaan Perseroan (Persero) Perusahaan Listrik Negara, | 3,700,000 | 3,593,035 | ||||||||||
4.38%, 02/05/2050(b) | 3,600,000 | 2,765,533 | ||||||||||
20,806,044 | ||||||||||||
Iraq–0.06% | ||||||||||||
Iraq International Bond, 5.80%, 01/15/2028(b) | 1,125,000 | 1,053,394 | ||||||||||
Ireland–0.52% | ||||||||||||
BB Blue Financing DAC, | 1,750,000 | 1,798,842 | ||||||||||
Coriolanus DAC, | 754,507 | 714,267 | ||||||||||
Series 119, 0.00%, 04/30/2025(b)(e) | 802,704 | 759,893 | ||||||||||
Series 120, 0.00%, 04/30/2025(b)(e) | 1,255,979 | 1,188,994 | ||||||||||
Series 122, 0.00%, 04/30/2025(b)(e) | 880,347 | 833,396 | ||||||||||
Series 124, 0.00%, 04/30/2025(b)(e) | 883,835 | 836,698 | ||||||||||
Series 126, 0.00%, 04/30/2025(b) | 988,758 | 936,025 | ||||||||||
Series 127, 0.00%, 04/30/2025(b)(e) | 916,217 | 867,352 | ||||||||||
0.00%, 04/30/2025(b)(e) | 898,857 | 850,918 | ||||||||||
8,786,385 | ||||||||||||
Italy–0.15% | ||||||||||||
Telecom Italia S.p.A., 5.30%, 05/30/2024(b) | 2,610,000 | 2,552,176 | ||||||||||
Ivory Coast–0.12% | ||||||||||||
Ivory Coast Government International Bond, 5.38%, 07/23/2024(b) | 2,100,000 | 2,046,387 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
Macau–0.60% | ||||||||||||
MGM China Holdings Ltd., | $ | 3,495,000 | $ 3,442,156 | |||||||||
5.88%, 05/15/2026(b)(f) | 3,200,000 | 3,076,528 | ||||||||||
Studio City Finance Ltd., 5.00%, 01/15/2029(b) | 1,100,000 | 861,850 | ||||||||||
Wynn Macau Ltd., 4.88%, 10/01/2024(b)(f) | 2,840,000 | 2,742,776 | ||||||||||
10,123,310 | ||||||||||||
Mexico–1.69% | ||||||||||||
Alpek S.A.B. de C.V., 3.25%, 02/25/2031(b) | 1,782,000 | 1,453,609 | ||||||||||
Banco Mercantil del Norte S.A., | 1,850,000 | 1,751,487 | ||||||||||
5.88%(b)(c)(d) | 1,764,000 | 1,541,295 | ||||||||||
Braskem Idesa S.A.P.I., | 3,550,000 | 2,812,093 | ||||||||||
6.99%, 02/20/2032(b) | 2,136,000 | 1,529,910 | ||||||||||
Cemex S.A.B. de C.V., | 2,487,000 | 2,205,223 | ||||||||||
Mexico Remittances Funding Fiduciary Estate Management S.a.r.l., 4.88%, 01/15/2028(b) | 3,325,000 | 2,998,269 | ||||||||||
Nemak S.A.B. de C.V., 3.63%, 06/28/2031(b) | 3,064,000 | 2,292,638 | ||||||||||
Petroleos Mexicanos, | 3,500,000 | 3,144,500 | ||||||||||
8.75%, 06/02/2029 | 7,000,000 | 6,435,033 | ||||||||||
7.69%, 01/23/2050 | 1,775,000 | 1,184,391 | ||||||||||
6.95%, 01/28/2060 | 1,925,000 | 1,182,329 | ||||||||||
28,530,777 | ||||||||||||
Morocco–0.09% | ||||||||||||
OCP S.A., 3.75%, 06/23/2031(b) | 1,750,000 | 1,471,094 | ||||||||||
Netherlands–0.64% | ||||||||||||
ING Groep N.V., | 5,000,000 | 4,627,273 | ||||||||||
5.75%(c)(d) | 7,100,000 | 6,188,998 | ||||||||||
10,816,271 | ||||||||||||
Nigeria–0.08% | ||||||||||||
Nigeria Government International Bond, 6.50%, 11/28/2027(b) | 1,750,000 | 1,399,860 | ||||||||||
Oman–0.61% | ||||||||||||
Oman Government International Bond, | 6,982,000 | 6,866,972 | ||||||||||
6.75%, 01/17/2048(b) | 3,500,000 | 3,390,733 | ||||||||||
10,257,705 |
Principal | ||||||||||||
Amount | Value | |||||||||||
Panama–0.08% | ||||||||||||
Telecomunicaciones Digitales S.A., 4.50%, 01/30/2030(b) | $ | 1,750,000 | $ 1,436,575 | |||||||||
Peru–0.23% | ||||||||||||
Fondo MIVIVIENDA S.A., 4.63%, 04/12/2027(b) | 3,995,000 | 3,839,674 | ||||||||||
Romania–0.11% | ||||||||||||
Romanian Government International Bond, 7.13%, 01/17/2033(b) | 1,750,000 | 1,875,606 | ||||||||||
Supranational–0.11% | ||||||||||||
European Bank for Reconstruction and Development, 6.40%, 08/27/2025 | 1,800,000 | 1,883,475 | ||||||||||
Sweden–0.37% | ||||||||||||
Skandinaviska Enskilda Banken AB, 5.13%(b)(c)(d) | 3,400,000 | 3,119,092 | ||||||||||
Swedbank AB, Series NC5, 5.63%(b)(c)(d) | 3,400,000 | 3,217,760 | ||||||||||
6,336,852 | ||||||||||||
Switzerland–0.59% | ||||||||||||
Credit Suisse Group AG, | 875,000 | 852,845 | ||||||||||
6.54%, 08/12/2033(b)(c) | 1,750,000 | 1,778,162 | ||||||||||
6.25%(b)(d)(g) | 7,385,000 | 295,400 | ||||||||||
Swiss Re Finance (Luxembourg) S.A., 5.00%, 04/02/2049(b)(c) | 4,320,000 | 4,137,113 | ||||||||||
UBS Group AG, 5.13%(b)(c)(d) | 3,500,000 | 3,001,250 | ||||||||||
10,064,770 | ||||||||||||
Tanzania–0.19% | ||||||||||||
HTA Group Ltd., 7.00%, 12/18/2025(b) | 3,330,000 | 3,144,436 | ||||||||||
Thailand–0.19% | ||||||||||||
GC Treasury Center Co. Ltd., 4.40%, 03/30/2032(b) | 1,750,000 | 1,608,821 | ||||||||||
Muang Thai Life Assurance PCL, 3.55%, 01/27/2037(b)(c) | 1,800,000 | 1,597,870 | ||||||||||
3,206,691 | ||||||||||||
Turkey–0.10% | ||||||||||||
Turkey Government International Bond, 4.88%, 04/16/2043 | 2,500,000 | 1,673,130 | ||||||||||
United Kingdom–1.69% | ||||||||||||
abrdn PLC, 4.25%, 06/30/2028(b) | 1,825,000 | 1,629,725 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
United Kingdom–(continued) | ||||||||||||
BP Capital Markets PLC, 4.88%(c)(d) | $ | 1,295,000 | $ 1,193,867 | |||||||||
British Telecommunications PLC, 4.25%, 11/23/2081(b)(c) | 10,650,000 | 9,405,281 | ||||||||||
Lloyds Banking Group PLC, 7.50%(c)(d) | 2,100,000 | 2,022,489 | ||||||||||
M&G PLC, 6.50%, 10/20/2048(b)(c) | 925,000 | 928,922 | ||||||||||
NatWest Group PLC, | 3,500,000 | 3,289,650 | ||||||||||
Standard Chartered PLC, 6.00%(b)(c)(d) | 1,750,000 | 1,654,174 | ||||||||||
Virgin Media Finance PLC, 5.00%, 07/15/2030(b)(f) | 447,000 | 377,091 | ||||||||||
Virgin Media Secured Finance PLC, 5.50%, 05/15/2029(b) | 767,000 | 704,958 | ||||||||||
Vodafone Group PLC, | 6,876,000 | 6,024,716 | ||||||||||
4.13%, 06/04/2081(c) | 1,698,000 | 1,375,482 | ||||||||||
28,606,355 | ||||||||||||
United States–15.26% | ||||||||||||
Aethon United BR L.P./Aethon United Finance Corp., 8.25%, 02/15/2026(b) | 2,616,000 | 2,543,082 | ||||||||||
Alcoa Nederland Holding B.V., 6.13%, 05/15/2028(b)(f) | 4,445,000 | 4,438,244 | ||||||||||
Allison Transmission, Inc., | 855,000 | 815,914 | ||||||||||
3.75%, 01/30/2031(b)(f) | 2,179,000 | 1,862,484 | ||||||||||
American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.50%, 04/20/2026(b) | 9,774,000 | 9,609,247 | ||||||||||
Apache Corp., | 814,000 | 862,321 | ||||||||||
4.25%, 01/15/2030(f) | 491,000 | 449,255 | ||||||||||
Asbury Automotive Group, Inc., | 299,000 | 271,966 | ||||||||||
4.63%, 11/15/2029(b)(f) | 690,000 | 614,929 | ||||||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 7.00%, 11/01/2026(b) | 901,000 | 872,930 | ||||||||||
Bank of New York Mellon Corp. (The), Series I, 3.75%(c)(d) | 439,000 | 367,943 | ||||||||||
Bausch Health Cos., Inc., 4.88%, 06/01/2028(b) | 1,433,000 | 945,436 | ||||||||||
Becton, Dickinson and Co., 3.79%, 05/20/2050(f) | 3,307,000 | 2,687,399 |
Principal | ||||||||||||
Amount | Value | |||||||||||
United States–(continued) | ||||||||||||
Black Knight InfoServ LLC, 3.63%, 09/01/2028(b) | $ | 1,117,000 | $ 1,010,885 | |||||||||
Callon Petroleum Co., 8.00%, 08/01/2028(b)(f) | 917,000 | 905,783 | ||||||||||
Calpine Corp., 3.75%, 03/01/2031(b)(f) | 1,236,000 | 1,055,729 | ||||||||||
Camelot Finance S.A., 4.50%, 11/01/2026(b) | 3,184,000 | 3,019,543 | ||||||||||
Carnival Corp., | 4,290,000 | 4,482,900 | ||||||||||
4.00%, 08/01/2028(b)(f) | 1,033,000 | 896,519 | ||||||||||
Carnival Holdings Bermuda Ltd., 10.38%, 05/01/2028(b)(f) | 891,000 | 958,800 | ||||||||||
Carriage Services, Inc., 4.25%, 05/15/2029(b) | 2,318,000 | 1,923,380 | ||||||||||
Catalent Pharma Solutions, Inc., 3.50%, 04/01/2030(b) | 202,000 | 171,467 | ||||||||||
CCM Merger, Inc., 6.38%, 05/01/2026(b) | 874,000 | 855,122 | ||||||||||
CCO Holdings LLC/CCO Holdings | ||||||||||||
Capital Corp., | 77,000 | 72,772 | ||||||||||
5.00%, 02/01/2028(b) | 280,000 | 259,299 | ||||||||||
4.75%, 03/01/2030(b) | 4,238,000 | 3,652,165 | ||||||||||
4.50%, 08/15/2030(b)(f) | 5,475,000 | 4,603,377 | ||||||||||
4.50%, 01/05/2032 | 998,000 | 800,211 | ||||||||||
4.25%, 01/15/2034(b) | 346,000 | 263,948 | ||||||||||
Celanese US Holdings LLC, 5.90%, 07/05/2024 | 4,395,000 | 4,400,853 | ||||||||||
Charles Schwab Corp. (The), Series G, 5.38%(c)(d)(f) | 1,374,000 | 1,314,746 | ||||||||||
Cinemark USA, Inc., | 611,000 | 584,412 | ||||||||||
5.25%, 07/15/2028(b) | 387,000 | 345,464 | ||||||||||
Citigroup, Inc., | 206,000 | 176,387 | ||||||||||
7.38%(c)(d) | 184,000 | 182,160 | ||||||||||
Clarios Global L.P., 6.75%, 05/15/2025(b) | 285,000 | 285,802 | ||||||||||
Clarivate Science Holdings Corp., 4.88%, 07/01/2029(b) | 1,345,000 | 1,212,890 | ||||||||||
Clearway Energy Operating LLC, 4.75%, 03/15/2028(b) | 915,000 | 868,787 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
United States–(continued) | ||||||||||||
Community Health Systems, Inc., | $ | 4,248,000 | $ 4,215,765 | |||||||||
8.00%, 12/15/2027(b) | 1,440,000 | 1,428,428 | ||||||||||
5.25%, 05/15/2030(b) | 750,000 | 625,799 | ||||||||||
4.75%, 02/15/2031(b)(f) | 499,000 | 403,012 | ||||||||||
Cox Communications, Inc., 2.95%, 10/01/2050(b) | 2,720,000 | 1,726,186 | ||||||||||
Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 8.00%, 04/01/2029(b) | 1,745,000 | 1,777,309 | ||||||||||
Crowdstrike Holdings, Inc., 3.00%, 02/15/2029(f) | 3,020,000 | 2,630,522 | ||||||||||
CSC Holdings LLC, | 1,195,000 | 1,023,383 | ||||||||||
4.63%, 12/01/2030(b) | 213,000 | 104,186 | ||||||||||
4.50%, 11/15/2031(b) | 1,755,000 | 1,231,218 | ||||||||||
5.00%, 11/15/2031(b) | 253,000 | 121,657 | ||||||||||
CTR Partnership L.P./CareTrust Capital Corp., 3.88%, 06/30/2028(b) | 1,245,000 | 1,088,746 | ||||||||||
CVS Health Corp., 5.05%, 03/25/2048 | 3,500,000 | 3,269,575 | ||||||||||
DaVita, Inc., 3.75%, 02/15/2031(b) | 632,000 | 509,502 | ||||||||||
Delek Logistics Partners L.P./Delek Logistics Finance Corp., 7.13%, 06/01/2028(b) | 1,235,000 | 1,126,172 | ||||||||||
Dell International LLC/EMC Corp., 6.20%, 07/15/2030 | 7,400,000 | 7,822,371 | ||||||||||
Delta Air Lines, Inc./SkyMiles IP Ltd., 4.50%, 10/20/2025(b) | 766,666 | 752,129 | ||||||||||
DISH DBS Corp., 5.13%, 06/01/2029 | 625,000 | 288,850 | ||||||||||
DISH Network Corp., 11.75%, 11/15/2027(b) | 897,000 | 848,337 | ||||||||||
Diversified Healthcare Trust, | 573,000 | 523,677 | ||||||||||
4.38%, 03/01/2031 | 248,000 | 156,472 | ||||||||||
Dun & Bradstreet Corp. (The), 5.00%, 12/15/2029(b) | 233,000 | 204,800 | ||||||||||
Encompass Health Corp., 4.50%, 02/01/2028 | 1,176,000 | 1,110,415 | ||||||||||
EnerSys, 4.38%, 12/15/2027(b)(f) | 918,000 | 861,203 |
Principal | ||||||||||||
Amount | Value | |||||||||||
United States–(continued) | ||||||||||||
EnPro Industries, Inc., 5.75%, 10/15/2026 | $ | 2,008,000 | $ 1,970,701 | |||||||||
Entegris Escrow Corp., 4.75%, 04/15/2029(b) | 563,000 | 524,273 | ||||||||||
Everi Holdings, Inc., 5.00%, 07/15/2029(b) | 1,194,000 | 1,065,287 | ||||||||||
Expedia Group, Inc., 2.95%, 03/15/2031(f) | 840,000 | 711,290 | ||||||||||
FedEx Corp., 4.05%, 02/15/2048 | 3,500,000 | 2,857,307 | ||||||||||
FirstCash, Inc., 5.63%, 01/01/2030(b) | 1,012,000 | 941,160 | ||||||||||
FirstEnergy Corp., Series B, 4.15%, 07/15/2027 | 1,950,000 | 1,899,173 | ||||||||||
Ford Motor Co., | 1,127,000 | 875,022 | ||||||||||
4.75%, 01/15/2043 | 642,000 | 483,123 | ||||||||||
Ford Motor Credit Co. LLC, | 10,917,000 | 10,643,690 | ||||||||||
3.38%, 11/13/2025 | 501,000 | 465,982 | ||||||||||
4.39%, 08/01/2026 | 277,000 | 263,492 | ||||||||||
5.11%, 03/05/2029 | 1,578,000 | 1,472,883 | ||||||||||
Fortress Transportation and Infrastructure Investors LLC, | 933,000 | 922,605 | ||||||||||
5.50%, 05/01/2028(b) | 1,903,000 | 1,746,545 | ||||||||||
Freeport-McMoRan, Inc., 4.63%, 01/08/2030(f) | 6,290,000 | 6,000,627 | ||||||||||
Gap, Inc. (The), 3.63%, 10/01/2029(b) | 1,624,000 | 1,151,601 | ||||||||||
Gartner, Inc., | 923,000 | 868,990 | ||||||||||
3.63%, 06/15/2029(b) | 837,000 | 741,995 | ||||||||||
3.75%, 10/01/2030(b) | 261,000 | 228,209 | ||||||||||
General Motors Co., 6.80%, 01/10/2027 | 7,000,000 | 7,403,735 | ||||||||||
Genesis Energy L.P./Genesis Energy Finance Corp., | 406,000 | 397,921 | ||||||||||
6.25%, 05/15/2026 | 791,000 | 763,038 | ||||||||||
8.00%, 01/15/2027 | 550,000 | 549,395 | ||||||||||
Global Partners L.P./GLP Finance Corp., 7.00%, 01/08/2027 | 990,000 | 958,043 | ||||||||||
Group 1 Automotive, Inc., 4.00%, 08/15/2028(b) | 2,342,000 | 2,080,495 | ||||||||||
HCA, Inc., 4.13%, 06/15/2029 | 929,000 | 881,218 | ||||||||||
Hess Midstream Operations L.P., 5.63%, 02/15/2026(b) | 1,316,000 | 1,297,089 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
United States–(continued) | ||||||||||||
Hilcorp Energy I L.P./Hilcorp Finance Co., | $ | 882,000 | $ 822,842 | |||||||||
6.00%, 02/01/2031(b) | 237,000 | 219,313 | ||||||||||
6.25%, 04/15/2032(b) | 233,000 | 218,061 | ||||||||||
Hilton Domestic Operating Co., Inc., 5.75%, 05/01/2028(b) | 542,000 | 541,393 | ||||||||||
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 4.88%, 04/01/2027 | 325,000 | 321,024 | ||||||||||
Howard Midstream Energy Partners LLC, 6.75%, 01/15/2027(b) | 1,144,000 | 1,068,706 | ||||||||||
Jabil, Inc., 3.00%, 01/15/2031 | 3,700,000 | 3,157,676 | ||||||||||
Jane Street Group/JSG Finance, Inc., 4.50%, 11/15/2029(b) | 1,097,000 | 982,872 | ||||||||||
JBS USA LUX S.A./JBS USA Food Co./JBS USA Finance, Inc., 5.13%, 02/01/2028(b) | 2,579,000 | 2,523,653 | ||||||||||
Jefferies Finance LLC/JFIN Co-Issuer Corp., 5.00%, 08/15/2028(b) | 1,020,000 | 858,722 | ||||||||||
JPMorgan Chase & Co., Series FF, 5.00%(c)(d) | 356,000 | 341,401 | ||||||||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.75%, 06/15/2029(b) | 1,068,000 | 846,139 | ||||||||||
Lamar Media Corp., | 1,861,000 | 1,761,276 | ||||||||||
4.00%, 02/15/2030(f) | 2,325,000 | 2,088,048 | ||||||||||
3.63%, 01/15/2031(f) | 706,000 | 608,946 | ||||||||||
LCM Investments Holdings II LLC, 4.88%, 05/01/2029(b) | 1,954,000 | 1,667,765 | ||||||||||
Level 3 Financing, Inc., | 1,977,000 | 1,114,393 | ||||||||||
10.50%, 05/15/2030(b) | 150,000 | 143,752 | ||||||||||
Lithia Motors, Inc., 3.88%, 06/01/2029(b)(f) | 1,535,000 | 1,330,900 | ||||||||||
Lumen Technologies, Inc., Series P, 7.60%, 09/15/2039 | 543,000 | 208,990 | ||||||||||
Match Group Holdings II LLC, 4.63%, 06/01/2028(b) | 1,652,000 | 1,526,085 | ||||||||||
Mativ Holdings, Inc., 6.88%, 10/01/2026(b) | 4,712,000 | 4,300,535 |
Principal | ||||||||||||
Amount | Value | |||||||||||
United States–(continued) | ||||||||||||
Mattel, Inc., | $ | 1,775,000 | $ 1,685,851 | |||||||||
5.45%, 01/11/2041 | 1,775,000 | 1,580,100 | ||||||||||
Medline Borrower L.P., 3.88%, 04/01/2029(b) | 1,075,000 | 941,542 | ||||||||||
MPT Operating Partnership L.P./MPT Finance Corp., 3.50%, 03/15/2031 | 2,518,000 | 1,724,094 | ||||||||||
NCL Corp. Ltd., 5.88%, 02/15/2027(b) | 953,000 | 899,858 | ||||||||||
NCR Corp., 5.75%, 09/01/2027(b) | 936,000 | 919,795 | ||||||||||
NESCO Holdings II, Inc., 5.50%, 04/15/2029(b) | 960,000 | 868,310 | ||||||||||
NGL Energy Partners L.P./NGL Energy Finance Corp., 7.50%, 04/15/2026 | 476,000 | 428,077 | ||||||||||
NMG Holding Co., Inc./Neiman Marcus Group LLC, 7.13%, 04/01/2026(b) | 592,000 | 550,720 | ||||||||||
Noble Finance II LLC, 8.00%, 04/15/2030(b) | 874,000 | 895,999 | ||||||||||
Novelis Corp., 3.25%, 11/15/2026(b) | 1,413,000 | 1,295,098 | ||||||||||
NRG Energy, Inc., 4.45%, 06/15/2029(b) | 1,083,000 | 994,499 | ||||||||||
Occidental Petroleum Corp., | 202,000 | 205,796 | ||||||||||
8.50%, 07/15/2027 | 219,000 | 241,371 | ||||||||||
6.13%, 01/01/2031(f) | 439,000 | 459,451 | ||||||||||
6.20%, 03/15/2040 | 661,000 | 679,536 | ||||||||||
OneMain Finance Corp., | 1,227,000 | 1,202,283 | ||||||||||
7.13%, 03/15/2026 | 1,037,000 | 1,011,818 | ||||||||||
3.88%, 09/15/2028 | 643,000 | 516,624 | ||||||||||
Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, 4.00%, 10/15/2027(b)(f) | 966,000 | 870,612 | ||||||||||
Papa John’s International, Inc., 3.88%, 09/15/2029(b)(f) | 997,000 | 862,360 | ||||||||||
Plains All American Pipeline L.P./PAA Finance Corp., 3.80%, 09/15/2030 | 2,220,000 | 2,010,422 | ||||||||||
PNC Financial Services Group, Inc. (The), Series W, 6.25%(c)(d) | 372,000 | 341,868 | ||||||||||
Prestige Brands, Inc., 3.75%, 04/01/2031(b) | 1,054,000 | 894,277 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
United States–(continued) | ||||||||||||
Rockies Express Pipeline LLC, | $ | 462,000 | $ 427,234 | |||||||||
4.80%, 05/15/2030(b) | 862,000 | 768,937 | ||||||||||
6.88%, 04/15/2040(b) | 875,000 | 762,663 | ||||||||||
Roller Bearing Co. of America, Inc., 4.38%, 10/15/2029(b) | 995,000 | 903,775 | ||||||||||
Royal Caribbean Cruises Ltd., 4.25%, 07/01/2026(b) | 1,478,000 | 1,324,270 | ||||||||||
RR Donnelley & Sons Co., 8.25%, 01/07/2027 | 447,000 | 430,752 | ||||||||||
SBA Communications Corp., 3.88%, 02/15/2027 | 970,000 | 905,770 | ||||||||||
Scientific Games Holdings L.P./Scientific Games US FinCo, Inc., 6.63%, 03/01/2030(b) | 999,000 | 887,242 | ||||||||||
Seagate HDD Cayman, | 1,069,000 | 888,312 | ||||||||||
9.63%, 12/01/2032(b) | 1,512,800 | 1,660,555 | ||||||||||
Select Medical Corp., 6.25%, 08/15/2026(b)(f) | 916,000 | 898,174 | ||||||||||
Sempra Energy, 4.13%, 01/04/2052(c) | 10,650,000 | 8,643,720 | ||||||||||
Sensata Technologies B.V., | 923,000 | 910,115 | ||||||||||
4.00%, 04/15/2029(b)(f) | 383,000 | 346,567 | ||||||||||
Sensata Technologies, Inc., 3.75%, 02/15/2031(b) | 1,013,000 | 881,145 | ||||||||||
Service Properties Trust, | 2,240,000 | 1,960,921 | ||||||||||
4.38%, 02/15/2030(f) | 1,307,000 | 973,997 | ||||||||||
Sonic Automotive, Inc., 4.63%, 11/15/2029(b)(f) | 1,094,000 | 919,003 | ||||||||||
Southern Co. (The), | 8,100,000 | 7,631,010 | ||||||||||
Series 21-A, 3.75%, 09/15/2051(c) | 5,624,000 | 4,799,952 | ||||||||||
Sprint Capital Corp., 8.75%, 03/15/2032 | 879,000 | 1,075,207 | ||||||||||
Sprint LLC, 7.63%, 01/03/2026 | 168,000 | 178,049 | ||||||||||
SS&C Technologies, Inc., 5.50%, 09/30/2027(b) | 906,000 | 878,155 | ||||||||||
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 8.50%, 10/15/2026(b) | 894,000 | 859,322 |
Principal | ||||||||||||
Amount | Value | |||||||||||
United States–(continued) | ||||||||||||
SunCoke Energy, Inc., 4.88%, 06/30/2029(b) | $ | 1,233,000 | $ 1,074,670 | |||||||||
Sunoco L.P./Sunoco Finance Corp., | 212,000 | 211,117 | ||||||||||
5.88%, 03/15/2028 | 1,128,000 | 1,104,041 | ||||||||||
Syneos Health, Inc., 3.63%, 01/15/2029(b) | 549,000 | 459,293 | ||||||||||
Talen Energy Supply LLC, 8.63%, 06/01/2030(b) | 428,000 | 428,000 | ||||||||||
Tenet Healthcare Corp., 4.88%, 01/01/2026 | 2,273,000 | 2,241,817 | ||||||||||
TransDigm, Inc., | 1,746,000 | 1,756,986 | ||||||||||
6.75%, 08/15/2028(b) | 416,000 | 422,985 | ||||||||||
Transocean Titan Financing Ltd., 8.38%, 02/01/2028(b) | 901,000 | 919,236 | ||||||||||
Transocean, Inc., 8.75%, 02/15/2030(b) | 772,000 | 779,720 | ||||||||||
Twilio, Inc., 3.63%, 03/15/2029 | 1,118,000 | 955,856 | ||||||||||
U.S. International Development Finance Corp., Series 4, 3.13%, 04/15/2028 | 1,120,000 | 1,073,228 | ||||||||||
Uber Technologies, Inc., Conv., 0.00%, 12/15/2025(e) | 1,800,000 | 1,574,555 | ||||||||||
United Airlines, Inc., 4.38%, 04/15/2026(b) | 3,600,000 | 3,442,407 | ||||||||||
Valaris Ltd., 8.38%, | 1,311,000 | 1,312,921 | ||||||||||
Viatris, Inc., 3.85%, 06/22/2040 | 2,220,000 | 1,534,752 | ||||||||||
Viking Ocean Cruises Ship VII Ltd., 5.63%, 02/15/2029(b) | 507,000 | 428,962 | ||||||||||
Vistra Operations Co. LLC, 5.13%, 05/13/2025(b) | 300,000 | 293,706 | ||||||||||
5.50%, 09/01/2026(b) | 237,000 | 232,602 | ||||||||||
5.63%, 02/15/2027(b) | 423,000 | 413,240 | ||||||||||
5.00%, 07/31/2027(b) | 890,000 | 847,214 | ||||||||||
4.38%, 05/01/2029(b)(f) | 999,000 | 894,063 | ||||||||||
VOC Escrow Ltd., 5.00%, 02/15/2028(b) | 999,000 | 889,484 | ||||||||||
Warnermedia Holdings, Inc., 3.43%, 03/15/2024(b) | 895,000 | 875,585 | ||||||||||
Yum! Brands, Inc., 5.38%, 04/01/2032(f) | 894,000 | 872,847 | ||||||||||
258,346,141 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
Zambia–0.20% | ||||||||||||
First Quantum Minerals Ltd., 6.88%, 10/15/2027(b) | $ | 3,500,000 | $ 3,401,211 | |||||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 546,440,350 | ||||||||||
Asset-Backed Securities–9.41% |
| |||||||||||
American Credit Acceptance Receivables Trust, Series 2019-2, Class D, 3.41%, 06/12/2025(b) | 408,132 | 407,881 | ||||||||||
Bear Stearns Adjustable Rate Mortgage Trust, Series 2006-1, Class A1, 0.65% (1 yr. U.S. Treasury Yield Curve Rate + 2.25%), 02/25/2036(h) | 11,225 | 10,702 | ||||||||||
Benchmark Mortgage Trust, Series 2018-B1, Class XA, IO, 0.68%, 01/15/2051(i) | 9,461,013 | 182,884 | ||||||||||
CarMax Auto Owner Trust, Series 2019-3, Class D, 2.85%, 01/15/2026 | 2,285,000 | 2,254,958 | ||||||||||
CD Mortgage Trust, Series 2017-CD6, Class XA, IO, 1.02%, 11/13/2050(i) | 4,725,197 | 124,237 | ||||||||||
Citigroup Commercial Mortgage Trust, Series 2017-C4, Class XA, IO, 1.17%, 12/10/2050(i) | 12,948,980 | 422,924 | ||||||||||
Citigroup Mortgage Loan Trust, Series 2006- AR1, Class 1A1, 7.11% (1 yr. U.S. Treasury Yield Curve Rate + 2.40%), 10/25/2035(h) | 94,704 | 91,234 | ||||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2005-2, Class 1A3, 2.82%, 05/25/2035(j) | 468,369 | 444,697 | ||||||||||
COMM Mortgage Trust, | 4,690,000 | 4,441,954 | ||||||||||
Series 2014-CR21, Class AM, 3.99%, 10/12/2047 | 70,000 | 67,113 | ||||||||||
Countrywide Home Loans Mortgage Pass-Through Trust, | 316,819 | 292,907 | ||||||||||
Series 2005-J4, Class A7, 5.50%, 11/25/2035 | 471,653 | 396,567 |
Principal | ||||||||||||
Amount | Value | |||||||||||
CWHEQ Revolving Home Equity Loan Trust, | $ | 3,227 | $ 3,211 | |||||||||
Series 2006-H, Class 2A1A, 5.75% (1 mo. USD LIBOR + 0.15%), 11/15/2036(h) | 20,520 | 17,600 | ||||||||||
DT Auto Owner Trust, | 165,964 | 165,514 | ||||||||||
Series 2019-4A, Class D, 2.85%, 07/15/2025(b) | 4,393,623 | 4,339,279 | ||||||||||
Exeter Automobile Receivables Trust, | 664,750 | 663,650 | ||||||||||
Series 2019-4A, Class D, 2.58%, 09/15/2025(b) | 3,744,298 | 3,677,048 | ||||||||||
FREMF Mortgage Trust, | 840,000 | 795,537 | ||||||||||
Series 2016-K54, Class C, 4.19%, 04/25/2048(b)(j) | 4,190,000 | 4,037,359 | ||||||||||
GSR Mortgage Loan Trust, Series 2005-AR4, Class 6A1, 3.65%, 07/25/2035(j) | 51,926 | 47,957 | ||||||||||
ILPT Commercial Mortgage Trust, Series 2022- LPF2, Class B, 7.63% (1 mo. Term SOFR + 2.74%), 10/15/2039(b)(h) | 2,100,000 | 2,059,817 | ||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-LC11, Class AS, 3.22%, 04/15/2046 | 425,000 | 393,953 | ||||||||||
JP Morgan Mortgage Trust, Series 2007-A1, Class 5A1, 4.00%, 07/25/2035(j) | 41,905 | 40,578 | ||||||||||
JPMBB Commercial Mortgage Securities Trust, Series 2014- C24, Class B, 4.12%, 11/15/2047(j) | 1,655,000 | 1,498,851 | ||||||||||
Lehman Structured Securities Corp., Series 2002-GE1, Class A, 0.00%, 07/26/2024(b)(j) | 14,638 | 1,141 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
MASTR Asset Backed Securities Trust, Series 2006-WMC3, Class A3, 5.12% (1 mo. USD LIBOR + 0.20%), 08/25/2036(h) | $ | 2,958,564 | $ 1,017,441 | |||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, | 888,471 | 885,095 | ||||||||||
Series 2014-C14, Class B, 5.04%, 02/15/2047(j) | 680,000 | 665,879 | ||||||||||
Morgan Stanley Capital I Trust, Series 2017- HR2, Class XA, IO, 0.99%, 12/15/2050(i) | 4,004,993 | 131,582 | ||||||||||
Morgan Stanley Re-REMIC Trust, Series 2012-R3, Class 1B, 6.00%, 11/26/2036(b)(j) | 5,911,068 | 4,680,118 | ||||||||||
OBX Trust, | 843,245 | 820,873 | ||||||||||
Series 2022-NQM7, Class A2, 5.70%, 08/25/2062(b)(k) | 1,621,625 | 1,595,260 | ||||||||||
Prestige Auto Receivables Trust, Series 2019-1A, Class C, 2.70%, 10/15/2024(b) | 428,740 | 428,073 | ||||||||||
Residential Accredit Loans, Inc. Trust, Series 2006-QS13, Class 1A8, 6.00%, 09/25/2036 | 22,596 | 17,298 | ||||||||||
UBS Commercial Mortgage Trust, Series 2017-C5, Class XA, IO, 1.22%, 11/15/2050(i) | 7,590,826 | 235,422 | ||||||||||
Vendee Mortgage Trust, Series 1995-2B, Class 2, IO, 0.79%, 06/15/2025(l) | 52,420 | 322 | ||||||||||
Series 1995-3, Class 1, IO, 0.00%, 09/15/2025(i) | 1,176,352 | 1 | ||||||||||
Verus Securitization Trust, Series 2022-7, Class A3, 5.35%, 07/25/2067(b)(j) | 1,145,327 | 1,114,021 | ||||||||||
WaMu Mortgage Pass-Through Ctfs. Trust, Series 2003- AR10, Class A7, 4.23%, 10/25/2033(j) | 30,725 | 28,782 | ||||||||||
Wells Fargo Commercial Mortgage Trust, Series 2017-C42, Class XA, IO, 1.01%, 12/15/2050(i) | 6,318,679 | 205,303 |
Principal | ||||||||||||
Amount | Value | |||||||||||
WFRBS Commercial Mortgage Trust, | $ | 1,800,000 | $ 1,659,275 | |||||||||
Series 2014-LC14, Class AS, 4.35%, 03/15/2047(j) | 1,135,000 | 1,110,104 | ||||||||||
Series 2014-C20, Class AS, 4.18%, 05/15/2047 | 1,455,000 | 1,411,783 | ||||||||||
Alba PLC, | GBP | 2,011,424 | 2,383,410 | |||||||||
Series 2007-1, Class E, 5.48% (SONIA + 1.32%), 03/17/2039(a)(b)(h) | GBP | 5,247,192 | 5,869,810 | |||||||||
Series 2006-2, Class F, 7.53% (SONIA + 3.37%), 12/15/2038(a)(b)(h) | GBP | 1,269,792 | 1,482,782 | |||||||||
Eurohome UK Mortgages PLC, | GBP | 2,006,000 | 2,076,967 | |||||||||
Series 2007-2, Class B1, 5.68% (SONIA + 1.52%), 09/15/2044(a)(b)(h) | GBP | 2,243,000 | 2,181,585 | |||||||||
Eurosail PLC, | GBP | 5,550,000 | 6,018,962 | |||||||||
Series 2006-4X, Class E1C, 7.27% (SONIA + 3.12%), 12/10/2044(a)(b)(h) | GBP | 4,135,722 | 4,739,384 | |||||||||
Series 2007-2X, Class D1A, 3.75% (3 mo. EURIBOR + 0.80%), 03/13/2045(a)(b)(h) | EUR | 3,500,000 | 3,288,528 | |||||||||
Series 2006-2X, Class D1A, 3.76% (3 mo. EURIBOR + 0.80%), 12/15/2044(a)(b)(h) | EUR | 6,300,000 | 5,814,430 | |||||||||
Series 2007-2X, Class D1C, 5.07% (SONIA + 0.92%), 03/13/2045(a)(b)(h) | GBP | 4,900,000 | 5,297,313 | |||||||||
Great Hall Mortgages No. 1 PLC, Series 2007-2X, Class EB, 6.40% (3 mo. EURIBOR + 3.75%), 06/18/2039(a)(b)(h) | EUR | 4,570,000 | 4,797,532 | |||||||||
Jupiter Mortgage No.1 PLC, Series E, 6.70% (SONIA + 2.50%), 07/20/2060(a)(b)(h) | GBP | 3,500,000 | 4,355,739 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
Ludgate Funding PLC, Series 2007-1, Class MA, 4.67% (3 mo. GBP LIBOR + 0.24%), 01/01/2061(a)(b)(h) | GBP | 2,771,069 | $ 3,111,623 | |||||||||
Newday Funding Master Issuer PLC, | GBP | 8,043,000 | 9,906,903 | |||||||||
Series 2021-3X, Class E, 8.53% (SONIA + 4.35%), 11/15/2029(a)(b)(h) | GBP | 3,700,000 | 4,595,469 | |||||||||
Newday Funding Master Issuer PLC , Series 2021-3X, Class D, 6.53% (SONIA + 2.35%), 11/15/2029(a)(b)(h) | GBP | 5,075,000 | 6,180,896 | |||||||||
Stratton Mortgage Funding PLC, Series 2021-1, Class E, 6.94% (SONIA + 2.75%), 09/25/2051(a)(b)(h) | GBP | 2,220,000 | 2,722,326 | |||||||||
Towd Point Mortgage Funding 2019 - Granite4 PLC, | GBP | 2,130,000 | 2,604,814 | |||||||||
Series 2019-GR4X, Class GR, 6.70% (SONIA + 2.50%), | GBP | 1,775,000 | 2,165,844 | |||||||||
Prosil Acquisition S.A., Series 2019-1, Class A, 4.49% (3 mo. EURIBOR + 2.00%), 10/31/2039(a)(b)(h) | EUR | 4,400,550 | 4,340,699 | |||||||||
Alhambra SME Funding DAC, | EUR | 1,837,670 | 2,009,222 | |||||||||
Series 2019-1, Class D, 12.27% (1 mo. EURIBOR + 9.25%), | EUR | 424,276 | 370,959 | |||||||||
Lusitano Mortgages No. 5 PLC, Class D, 4.14% (3 mo. EURIBOR + 0.96%), 07/15/2059(a)(b)(h) | EUR | 1,945,247 | 1,614,989 | |||||||||
Futura S.r.l., Series 2019-1, Class A, 5.94% (6 mo. EURIBOR + 3.00%), 07/31/2044(a)(b)(h) | EUR | 3,543,218 | 3,915,632 | |||||||||
Taurus, Series 2018-IT1, Class A, 3.70% (3 mo. EURIBOR + 1.00%), 05/18/2030(a)(h) | EUR | 4,637,725 | 5,014,411 | |||||||||
IM Pastor 4, FTA, Series A, 2.89% (3 mo. EURIBOR + 0.14%), 03/22/2044(a)(b)(h) | EUR | 1,985,558 | 1,905,582 |
Principal | ||||||||||||
Amount | Value | |||||||||||
Fideicomiso Dorrego Y Libertador, | $ | 7,698,968 | $ 7,314,020 | |||||||||
0.00%, 12/31/2043(j)(m) | ARS | 83,227,881 | 355,120 | |||||||||
Fideicomiso Financiero Invernea Proteina 2, Serie II, 0.00%, 08/25/2032(a)(j)(m) | ARS | 311,500,000 | 2,148,980 | |||||||||
SC Germany Consumer UG, Series 2018-1, Class D, 3.25%, 12/13/2031(a)(b) | EUR | 7,200,000 | 7,844,635 | |||||||||
Total Asset-Backed Securities |
| 159,314,751 | ||||||||||
U.S. Treasury Securities–6.59% |
| |||||||||||
U.S. Treasury Bills–2.05% |
| |||||||||||
4.52%, 04/05/2023(n) | 20,992,265 | 20,992,265 | ||||||||||
4.77%, 11/02/2023(n) | 13,672,833 | 13,657,796 | ||||||||||
34,650,061 | ||||||||||||
U.S. Treasury Inflation – Indexed Bonds–3.44% |
| |||||||||||
0.13%, 02/15/2052(o) | 44,929,214 | 43,430,144 | ||||||||||
1.50%, 02/15/2053(o) | 14,728,419 | 14,870,568 | ||||||||||
58,300,712 | ||||||||||||
U.S. Treasury Inflation – Indexed Notes–1.10% |
| |||||||||||
0.63%, 07/15/2032(o) | 18,300,982 | 18,590,726 | ||||||||||
Total U.S. Treasury Securities |
| 111,541,499 | ||||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities–2.37% |
| |||||||||||
Fannie Mae Grantor Trust, | 2,032,257 | 13,330 | ||||||||||
0.38%, 12/25/2041(i) | 12,361,041 | 127,555 | ||||||||||
Fannie Mae Interest STRIPS, | 41,741 | 6,401 | ||||||||||
6.50%, 04/25/2029 - 07/25/2032(l) | 827,109 | 117,480 | ||||||||||
6.00%, 12/25/2032 - 08/25/2035(l) | 1,054,844 | 156,987 | ||||||||||
5.50%, 11/25/2033 - 06/25/2035(l) | 886,520 | 141,032 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
Fannie Mae REMICs, | $ | 22 | $ 0 | |||||||||
2.58% (7.60% - (1.00 x 1 mo. USD LIBOR)), 06/25/2026(h)(l) | 50,091 | 1,805 | ||||||||||
2.94%, 11/18/2031 -12/18/2031(h)(l) | 116,081 | 10,999 | ||||||||||
2.88% (7.90% - (1.00 x 1 mo. USD LIBOR)), 11/25/2031(h)(l) | 2,247 | 225 | ||||||||||
2.93% (7.95% - (1.00 x 1 mo. USD LIBOR)), 01/25/2032(h)(l) | 26,631 | 2,464 | ||||||||||
3.04% (8.00% - (1.00 x 1 mo. USD LIBOR)), 03/18/2032(h)(l) | 52,567 | 5,362 | ||||||||||
3.08%, 03/25/2032 - 04/25/2032(h)(l) | 75,969 | 7,850 | ||||||||||
1.98% (7.00% - (1.00 x 1 mo. USD LIBOR)), 04/25/2032(h)(l) | 33,787 | 2,522 | ||||||||||
2.78% (7.80% - (1.00 x 1 mo. USD LIBOR)), 04/25/2032(h)(l) | 24,642 | 2,591 | ||||||||||
2.98%, 07/25/2032 - 09/25/2032(h)(l) | 110,799 | 12,636 | ||||||||||
3.14%, 12/18/2032(h)(l) | 88,823 | 7,628 | ||||||||||
3.18% (8.20% - (1.00 x 1 mo. USD LIBOR)), 01/25/2033(h)(l) | 309,678 | 33,401 | ||||||||||
3.23%, 02/25/2033 - 05/25/2033(h)(l) | 180,608 | 25,080 | ||||||||||
7.00%, 03/25/2033 - 04/25/2033(l) | 419,397 | 59,939 | ||||||||||
2.53% (7.55% - (1.00 x 1 mo. USD LIBOR)), 10/25/2033(h)(l) | 142,323 | 15,153 | ||||||||||
1.03%, 03/25/2035 - 07/25/2038(h)(l) | 124,307 | 6,701 | ||||||||||
1.73%, 03/25/2035 - 05/25/2035(h)(l) | 199,282 | 7,688 | ||||||||||
1.58% (6.60% - (1.00 x 1 mo. USD LIBOR)), 05/25/2035(h)(l) | 278,156 | 16,932 | ||||||||||
1.68% (6.70% - (1.00 x 1 mo. USD LIBOR)), 05/25/2035(h)(l) | 521,454 | 40,100 | ||||||||||
2.21% (7.23% - (1.00 x 1 mo. USD LIBOR)), 09/25/2036(h)(l) | 557,768 | 25,526 | ||||||||||
1.52% (6.54% - (1.00 x 1 mo. USD LIBOR)), 06/25/2037(h)(l) | 789,648 | 63,520 | ||||||||||
4.00%, 04/25/2041(l) | 812,896 | 85,564 | ||||||||||
1.53% (6.55% - (1.00 x 1 mo. USD LIBOR)), 10/25/2041(h)(l) | 136,876 | 10,175 | ||||||||||
1.13% (6.15% - (1.00 x 1 mo. USD LIBOR)), 12/25/2042(h)(l) | 361,397 | 41,759 | ||||||||||
7.00%, 07/25/2026 | 5,468 | 5,478 | ||||||||||
4.00%, 08/25/2026 - 03/25/2041 | 72,525 | 69,720 |
Principal | ||||||||||||
Amount | Value | |||||||||||
6.50%, 10/25/2028 - 04/25/2029 | $ | 64,629 | $ 66,179 | |||||||||
6.00%, 05/25/2031 - 01/25/2032 | 117,287 | 119,965 | ||||||||||
6.02%, 04/25/2032 - 12/25/2032(h) | 93,040 | 94,456 | ||||||||||
5.46% (1 mo. USD LIBOR + 0.50%), 10/18/2032(h) | 35,297 | 35,195 | ||||||||||
5.52% (1 mo. USD LIBOR + 0.50%), 12/25/2032(h) | 59,515 | 57,051 | ||||||||||
5.42% (1 mo. USD LIBOR + 0.40%), 11/25/2033(h) | 32,989 | 32,883 | ||||||||||
6.16% (24.57% - (3.67 x 1 mo. USD LIBOR)), 03/25/2036(h) | 131,515 | 159,700 | ||||||||||
5.79% (24.20% - (3.67 x 1 mo. USD LIBOR)), 06/25/2036(h) | 132,934 | 152,659 | ||||||||||
5.96% (1 mo. USD LIBOR + 0.94%), 06/25/2037(h) | 67,780 | 68,615 | ||||||||||
Federal Home Loan Mortgage Corp., | 19,476 | 20,536 | ||||||||||
5.00%, 01/03/2053 | 17,447,106 | 17,384,489 | ||||||||||
Federal National Mortgage Association, | 13,594 | 14,225 | ||||||||||
7.00%, 01/12/2033 | 10,982 | 11,400 | ||||||||||
5.50%, 01/02/2035 - 01/02/2053 | 17,297,898 | 17,476,150 | ||||||||||
Freddie Mac Multifamily Structured Pass-Through Ctfs., | 3,979,498 | 55,963 | ||||||||||
Series K735, Class X1, IO, 1.10%, 05/25/2026(i) | 6,670,456 | 156,277 | ||||||||||
Series K093, Class X1, IO, 1.09%, 05/25/2029(i) | 45,463,926 | 2,098,974 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
Freddie Mac REMICs, | $ | 2,580 | $ 2,572 | |||||||||
6.75%, 02/15/2024 | 932 | 931 | ||||||||||
6.50%, 02/15/2028 - 06/15/2032 | 61,273 | 63,706 | ||||||||||
5.40% (1 mo. USD LIBOR + 0.45%), 02/15/2029(h) | 5,639 | 5,622 | ||||||||||
5.60% (1 mo. USD LIBOR + 0.65%), 07/15/2029(h) | 8,447 | 8,462 | ||||||||||
5.95%, 02/15/2032 - 03/15/2032(h) | 187,392 | 189,136 | ||||||||||
3.50%, 05/15/2032 | 60,374 | 58,175 | ||||||||||
5.45% (1 mo. USD LIBOR + 0.50%), 01/15/2033(h) | 5,434 | 5,432 | ||||||||||
6.61% (24.75% - (3.67 x 1 mo. USD LIBOR)), 08/15/2035(h) | 98,627 | 120,604 | ||||||||||
4.00%, 06/15/2038 | 55,250 | 53,422 | ||||||||||
3.00%, 05/15/2040 | 879 | 859 | ||||||||||
IO, 1.05%, 03/15/2024 - 04/15/2038(h)(l) | 90,300 | 4,750 | ||||||||||
7.00%, 03/15/2028 - 04/15/2028(l) | 28,814 | 3,097 | ||||||||||
3.75%, 07/17/2028(h)(l) | 5,991 | 66 | ||||||||||
3.15% (8.10% - (1.00 x 1 mo. USD LIBOR)), 06/15/2029(h)(l) | 43,095 | 2,762 | ||||||||||
4.00% (8.95% - (1.00 x 1 mo. USD LIBOR)), 08/15/2029(h)(l) | 18,280 | 966 | ||||||||||
2.10% (7.05% - (1.00 x 1 mo. USD LIBOR)), 10/15/2033(h)(l) | 207,744 | 13,743 | ||||||||||
1.75% (6.70% - (1.00 x 1 mo. USD LIBOR)), 01/15/2035(h)(l) | 389,249 | 20,851 | ||||||||||
1.80% (6.75% - (1.00 x 1 mo. USD LIBOR)), 02/15/2035(h)(l) | 22,390 | 1,274 | ||||||||||
1.77%, 05/15/2035(h)(l) | 603,350 | 42,728 | ||||||||||
1.20% (6.15% - (1.00 x 1 mo. USD LIBOR)), 07/15/2035(h)(l) | 386,142 | 16,201 | ||||||||||
2.05% (7.00% - (1.00 x 1 mo. USD LIBOR)), 12/15/2037(h)(l) | 110,676 | 11,792 | ||||||||||
1.12% (6.07% - (1.00 x 1 mo. USD LIBOR)), 05/15/2038(h)(l) | 212,790 | 18,295 | ||||||||||
1.30% (6.25% - (1.00 x 1 mo. USD LIBOR)), 12/15/2039(h)(l) | 107,343 | 7,628 |
Principal | ||||||||||||
Amount | Value | |||||||||||
Freddie Mac STRIPS, | $ | 146,854 | $ 18,526 | |||||||||
6.50%, 01/02/2028 - 01/06/2031(l) | 35,906 | 4,958 | ||||||||||
7.50%, 12/15/2029(l) | 43,028 | 6,307 | ||||||||||
6.00%, 12/15/2032(l) | 82,251 | 10,337 | ||||||||||
Government National Mortgage Association, |
| 644 | 627 | |||||||||
7.00%, 01/15/2028 - 01/20/2030 | 89,980 | 91,748 | ||||||||||
8.00%, 01/15/2028 - 09/15/2028 | 54,918 | 55,940 | ||||||||||
IO, 1.60% (6.55% - (1.00 x 1 mo. USD LIBOR)), 04/16/2037(h)(l) | 399,900 | 30,964 | ||||||||||
1.70% (6.65% - (1.00 x 1 mo. USD LIBOR)), 04/16/2041(h)(l) | 682,540 | 42,537 | ||||||||||
Total U.S. Government Sponsored Agency Mortgage-Backed Securities |
| 40,043,338 | ||||||||||
Agency Credit Risk Transfer Notes–1.87% |
| |||||||||||
United States–1.87% | ||||||||||||
Fannie Mae Connecticut Avenue Securities, Series 2018-R07, Class 1M2, 7.42% (1 mo. USD LIBOR + 2.40%), | 270,697 | 271,158 | ||||||||||
Series 2019-R02, Class 1M2, 7.32% (1 mo. USD LIBOR + 2.30%), 08/25/2031(b)(h) | 28,850 | 28,852 | ||||||||||
Series 2019-R03, Class 1M2, 7.17% (1 mo. USD LIBOR + 2.15%), 09/25/2031(b)(h) | 83,815 | 83,823 | ||||||||||
Series 2022-R04, Class 1M2, 7.92% (30 Day Average SOFR + 3.10%), 03/25/2042(b)(h) | 1,795,000 | 1,815,085 | ||||||||||
Series 2022-R08, Class 1M2, 8.42% (30 Day Average SOFR +3.60%), 07/25/2042(b)(h) | 3,150,000 | 3,228,954 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18 | Invesco Global Strategic Income Fund |
Principal | ||||||||||||
Amount | Value | |||||||||||
United States–(continued) |
| |||||||||||
Freddie Mac, Series 2022-DNA2, Class M1B, STACR® , 7.22% (30 Day Average SOFR + 2.40%), | $ | 3,500,000 | $ 3,451,404 | |||||||||
Series 2022-DNA3, Class M1B, STACR® , 7.72% (30 Day Average SOFR + 2.90%), 04/25/2042(b)(h) | 7,000,000 | 6,990,871 | ||||||||||
Series 2022-DNA3, Class M1A, STACR® , 6.82% (30 Day Average SOFR + 2.00%), 04/25/2042(b)(h) | 4,911,906 | 4,929,401 | ||||||||||
Series 2022-HQA2, Class M1, STACR® , 8.82% (30 Day Average SOFR + 4.00%), 07/25/2042(b)(h) | 3,500,000 | 3,588,319 | ||||||||||
Series 2022-HQA3, Class M1, STACR® , 8.37% (30 Day Average SOFR + 3.55%), 08/25/2042(b)(h) | 3,500,000 | 3,521,050 | ||||||||||
Series 2022-HQA3, Class M2, STACR® , 10.17% (30 Day Average SOFR + 5.35%), 08/25/2042(b)(h) | 3,745,000 | 3,771,114 | ||||||||||
Total Agency Credit Risk Transfer Notes |
| 31,680,031 | ||||||||||
Shares | ||||||||||||
Common Stocks & Other Equity Interests–1.22% |
| |||||||||||
Argentina–1.19% | ||||||||||||
Grupo Financiero Galicia S.A., Class B | 350,000 | 823,724 | ||||||||||
YPF S.A., Class D(p) | 840,000 | 19,297,624 | ||||||||||
20,121,348 | ||||||||||||
United States–0.03% | ||||||||||||
ACNR Holdings, Inc. | 2,129 | 196,578 | ||||||||||
Claire’s Holdings LLC, Class S | 614 | 314,675 | ||||||||||
McDermott International Ltd.(p) |
| 38,319 | 14,561 | |||||||||
McDermott International Ltd., Series A, Wts., expiring 06/30/2027(m)(p) | 76,715 | 9,973 | ||||||||||
McDermott International Ltd., Series B, Wts., expiring 06/30/2027(m)(p) | 85,239 | 11,081 | ||||||||||
McDermott International Ltd., Wts., expiring 12/31/2049(m) | 55,393 | 19,997 | ||||||||||
Party City Holdco, Inc.(p) | 10,188 | 464 | ||||||||||
Sabine Oil & Gas Holdings, Inc. (Acquired 11/09/2016; Cost $3,433,279)(m)(p)(q) | 2,510 | 50 | ||||||||||
Tenerity LLC, Wts., expiring 04/10/2024(m) | 2,297 | 0 |
Shares | Value | |||||||||||
United States–(continued) | ||||||||||||
Windstream Services LLC, Wts. | 399 | $ 4,489 | ||||||||||
571,868 | ||||||||||||
Total Common Stocks & Other Equity Interests |
| 20,693,216 | ||||||||||
Principal Amount | ||||||||||||
Variable Rate Senior Loan Interests–0.36%(r)(s) |
| |||||||||||
United States–0.36% | ||||||||||||
Claire’s Stores, Inc., Term Loan, 11.58% (1 mo. USD LIBOR + 6.50%), 12/18/2026 | $ | 184,792 | 173,243 | |||||||||
Clear Channel Outdoor Holdings, Inc., Term Loan B, 8.81% (3 mo. USD LIBOR + 3.50%), 08/21/2026 | 934,760 | 882,278 | ||||||||||
Dun & Bradstreet Corp. (The), Term Loan, 8.27% (1 mo. USD LIBOR + 3.25%), 06/02/2026 | 984,267 | 984,114 | ||||||||||
Endo Luxembourg Finance Co. I S.a.r.l., Term Loan, 14.00% (1 mo. USD LIBOR + 4.00%), 03/27/2028 | 1,352,875 | 999,436 | ||||||||||
IRB Holding Corp., Term Loan, 8.08% (1 mo. Term SOFR + 3.00%), 12/15/2027 | 1,326,174 | 1,306,786 | ||||||||||
Mativ Holdings, Inc., Term Loan B, 8.81% (1 mo. USD LIBOR + 3.75%), 04/20/2028 | 1,786,947 | 1,725,520 | ||||||||||
Total Variable Rate Senior Loan Interests |
| 6,071,377 | ||||||||||
Shares | ||||||||||||
Preferred Stocks–0.22% | ||||||||||||
United States–0.22% | ||||||||||||
AT&T, Inc., 2.88%, Series B, Pfd.(c) | 3,500,000 | 3,543,241 | ||||||||||
Bank of America Corp., 6.50%, Series Z, Pfd.(c) | 179,000 | 178,896 | ||||||||||
Claire’s Holdings LLC, Series A, Pfd.(m) | 195 | 49,725 | ||||||||||
Total Preferred Stocks (Cost $4,450,953) |
| 3,771,862 | ||||||||||
Money Market Funds–3.81% |
| |||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(t)(u) | 22,586,428 | 22,586,428 | ||||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(t)(u) | 16,127,909 | 16,132,748 | ||||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(t)(u) | 25,813,061 | 25,813,061 | ||||||||||
Total Money Market Funds |
| 64,532,237 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
19 | Invesco Global Strategic Income Fund |
Shares | Value | |||||||||||
Options Purchased–1.91% | ||||||||||||
(Cost $46,922,735)(v) | $ 32,218,093 | |||||||||||
TOTAL INVESTMENTS IN SECURITIES |
| 1,617,043,592 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||||||
Money Market Funds–3.36% | ||||||||||||
Invesco Private Government Fund, 4.83%(t)(u)(w) | 15,668,831 | 15,668,832 |
Investment Abbreviations: | ||
ARM | – Adjustable Rate Mortgage | |
ARS | – Argentina Peso | |
AUD | – Australian Dollar | |
BRL | – Brazilian Real | |
CAD | – Canadian Dollar | |
CNY | – Chinese Yuan Renminbi | |
Conv. | – Convertible | |
COP | – Colombia Peso | |
Ctfs. | – Certificates | |
EUR | – Euro | |
EURIBOR | – Euro Interbank Offered Rate | |
GBP | – British Pound Sterling | |
IDR | – Indonesian Rupiah | |
INR | – Indian Rupee | |
IO | – Interest Only | |
JPY | – Japanese Yen | |
LIBOR | – London Interbank Offered Rate | |
MXN | – Mexican Peso | |
PEN | – Peruvian Sol | |
Pfd. | – Preferred | |
PLN | – Polish Zloty | |
REMICs | – Real Estate Mortgage Investment Conduits | |
SOFR | – Secured Overnight Financing Rate | |
SONIA | – Sterling Overnight Index Average | |
STACR® | – Structured Agency Credit Risk | |
STRIPS | – Separately Traded Registered Interest and Principal Security | |
THB | – Thai Baht | |
TRY | – Turkish Lira | |
USD | – U.S. Dollar | |
Wts. | – Warrants | |
ZAR | – South African Rand |
Shares | Value | |||||||||||
Money Market Funds–(continued) |
| |||||||||||
Invesco Private Prime Fund, 4.99%(t)(u)(w) | 41,197,349 | $ 41,197,349 | ||||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 56,866,181 | ||||||||||
TOTAL INVESTMENTS IN SECURITIES–98.90% |
| 1,673,909,773 | ||||||||||
OTHER ASSETS LESS LIABILITIES–1.10% |
| 18,630,390 | ||||||||||
NET ASSETS–100.00% | $1,692,540,163 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
20 | Invesco Global Strategic Income Fund |
Notes to Consolidated 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, 2023 was $657,482,518, which represented 38.85% of the Fund’s Net Assets. |
(c) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(d) | Perpetual bond with no specified maturity date. |
(e) | Zero coupon bond issued at a discount. |
(f) | All or a portion of this security was out on loan at April 30, 2023. |
(g) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The value of this security at April 30, 2023 represented less than 1% of the Fund’s Net Assets. |
(h) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2023. |
(i) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on April 30, 2023. |
(j) | 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, 2023. |
(k) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(l) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. |
(m) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(n) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(o) | Principal amount of security and interest payments are adjusted for inflation. See Note 1J. |
(p) | Non-income producing security. |
(q) | Restricted security. The value of this security at April 30, 2023 represented less than 1% of the Fund’s Net Assets. |
(r) | Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years. |
(s) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
(t) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Change in | ||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||
Value | Purchases | Proceeds | Appreciation | Realized | Value | |||||||||||||||||||||||
October 31, 2022 | at Cost | from Sales | (Depreciation) | Gain | April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ 31,287,616 | $ | 152,376,529 | $ | (161,077,717 | ) | $ - | $ - | $ | 22,586,428 | $ 331,785 | |||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 22,438,567 | 108,840,377 | (115,146,376 | ) | (774) | 954 | 16,132,748 | 246,852 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 35,757,276 | 174,144,604 | (184,088,819 | ) | - | - | 25,813,061 | 379,389 | ||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 17,970,670 | 59,350,972 | (61,652,810 | ) | - | - | 15,668,832 | 398,033* | ||||||||||||||||||||
Invesco Private Prime Fund | 47,071,670 | 120,940,957 | (126,816,473 | ) | (4,457) | 5,652 | 41,197,349 | 1,087,766* | ||||||||||||||||||||
Total | $154,525,799 | $ | 615,653,439 | $ | (648,782,195 | ) | $(5,231) | $6,606 | $ | 121,398,418 | $2,443,825 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(u) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(v) | The table below details options purchased. |
(w) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1L. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
21 | Invesco Global Strategic Income Fund |
Open Over-The-Counter Foreign Currency Options Purchased(a) | ||||||||||||||||||||
Type of | Expiration | Exercise | Notional | |||||||||||||||||
Description | Contract | Counterparty | Date | Price | Value | Value | ||||||||||||||
Currency Risk | ||||||||||||||||||||
AUD versus USD | Call | Bank of America, N.A. | 07/27/2023 | USD | 0.73 | AUD | 52,500,000 | $ 24,700 | ||||||||||||
AUD versus USD | Call | Goldman Sachs International | 07/20/2023 | USD | 0.71 | AUD | 87,500,000 | 108,676 | ||||||||||||
AUD versus USD | Call | Goldman Sachs International | 10/12/2023 | USD | 0.80 | AUD | 2,625,000 | 22,963 | ||||||||||||
AUD versus USD | Call | Standard Chartered Bank PLC | 05/11/2023 | USD | 0.75 | AUD | 2,800,000 | 2 | ||||||||||||
EUR versus USD | Call | Bank of America, N.A. | 10/23/2023 | USD | 1.18 | EUR | 4,200,000 | 497,295 | ||||||||||||
EUR versus USD | Call | Goldman Sachs International | 07/10/2023 | USD | 1.13 | EUR | 8,750,000 | 1,560,353 | ||||||||||||
EUR versus USD | Call | Goldman Sachs International | 08/01/2023 | USD | 1.18 | EUR | 105,000,000 | 116,047 | ||||||||||||
EUR versus USD | Call | Goldman Sachs International | 08/23/2023 | USD | 1.14 | EUR | 105,000,000 | 247,597 | ||||||||||||
EUR versus USD | Call | Goldman Sachs International | 10/23/2023 | USD | 1.18 | EUR | 105,000,000 | 390,717 | ||||||||||||
EUR versus USD | Call | J.P. Morgan Chase Bank, N.A. | 07/11/2023 | USD | 1.18 | EUR | 70,000,000 | 54,379 | ||||||||||||
NZD versus USD | Call | Goldman Sachs International | 10/12/2023 | USD | 0.70 | NZD | 5,000,000 | 227,914 | ||||||||||||
USD versus CNH | Call | Goldman Sachs International | 05/31/2023 | CNH | 7.50 | USD | 4,200,000 | 3,927 | ||||||||||||
Subtotal – Foreign Currency Call Options Purchased |
| 3,254,570 | ||||||||||||||||||
Currency Risk | ||||||||||||||||||||
CNY versus INR | Put | Goldman Sachs International | 07/20/2023 | INR | 11.80 | CNY | 12,250,000 | 589,820 | ||||||||||||
EUR versus HUF | Put | Bank of America, N.A. | 08/14/2023 | HUF | 370.00 | EUR | 35,000,000 | 259,206 | ||||||||||||
EUR versus HUF | Put | Goldman Sachs International | 09/15/2023 | HUF | 358.00 | EUR | 2,100,000 | 624,312 | ||||||||||||
EUR versus NOK | Put | Goldman Sachs International | 05/08/2023 | NOK | 10.60 | EUR | 70,000,000 | 77 | ||||||||||||
EUR versus PLN | Put | Goldman Sachs International | 07/31/2023 | PLN | 4.50 | EUR | 2,800,000 | 427,977 | ||||||||||||
GBP versus USD | Put | Goldman Sachs International | 05/08/2023 | USD | 1.15 | GBP | 140,000,000 | 176 | ||||||||||||
GBP versus USD | Put | Morgan Stanley and Co. International PLC | 06/01/2023 | USD | 1.19 | GBP | 70,000,000 | 17,595 | ||||||||||||
USD versus BRL | Put | Bank of America, N.A. | 10/10/2023 | BRL | 5.27 | USD | 38,500,000 | 2,149,955 | ||||||||||||
USD versus BRL | Put | Goldman Sachs International | 07/07/2023 | BRL | 5.00 | USD | 3,500,000 | 1,144,391 | ||||||||||||
USD versus BRL | Put | Goldman Sachs International | 09/27/2023 | BRL | 5.05 | USD | 3,500,000 | 548,555 | ||||||||||||
USD versus BRL | Put | Goldman Sachs International . | 11/16/2023 | BRL | 4.50 | USD | 1,120,000 | 273,295 | ||||||||||||
USD versus BRL | Put | Morgan Stanley and Co. International PLC | 07/11/2023 | BRL | 4.90 | USD | 3,500,000 | 1,213,922 | ||||||||||||
USD versus CAD | Put | J.P. Morgan Chase Bank, N.A. | 05/23/2023 | CAD | 1.22 | USD | 1,750,000 | 119 | ||||||||||||
USD versus CLP | Put | Morgan Stanley and Co. International PLC | 06/28/2023 | CLP | 801.95 | USD | 35,000,000 | 656,600 | ||||||||||||
USD versus CNH | Put | Morgan Stanley and Co. International PLC | 09/20/2023 | CNH | 6.50 | USD | 2,100,000 | 109,089 | ||||||||||||
USD versus COP | Put | Morgan Stanley and Co.International PLC | 06/08/2023 | COP | 4,480.00 | USD | 42,000,000 | 171,024 | ||||||||||||
USD versus COP | Put | Morgan Stanley and Co. International PLC | 09/27/2023 | COP | 4,630.00 | USD | 35,000,000 | 810,040 | ||||||||||||
USD versus IDR | Put | Goldman Sachs International | 10/04/2023 | IDR | 14,750.00 | USD | 42,000,000 | 958,776 | ||||||||||||
USD versus JPY | Put | Bank of America, N.A. | 09/04/2023 | JPY | 120.00 | USD | 2,800,000 | 141,604 | ||||||||||||
USD versus JPY | Put | Goldman Sachs International | 05/23/2023 | JPY | 122.00 | USD | 5,250,000 | 9,403 | ||||||||||||
USD versus JPY | Put | Goldman Sachs International | 02/08/2024 | JPY | 113.00 | USD | 52,500,000 | 255,412 | ||||||||||||
USD versus JPY | Put | J.P. Morgan Chase Bank, N.A. | 11/07/2023 | JPY | 114.00 | USD | 2,100,000 | 75,804 | ||||||||||||
USD versus MXN | Put | Bank of America, N.A. | 08/09/2023 | MXN | 17.40 | USD | 3,500,000 | 559,706 | ||||||||||||
USD versus MXN | Put | Goldman Sachs International | 06/30/2023 | MXN | 18.00 | USD | 70,000,000 | 818,090 | ||||||||||||
USD versus MXN | Put | Morgan Stanley and Co. International PLC | 10/06/2023 | MXN | 17.40 | USD | 3,500,000 | 648,449 | ||||||||||||
USD versus THB | Put | Bank of America, N.A. | 08/30/2023 | THB | 32.50 | USD | 4,200,000 | 878,472 | ||||||||||||
USD versus THB | Put | Standard Chartered Bank PLC | 10/04/2023 | THB | 30.00 | USD | 3,500,000 | 86,803 | ||||||||||||
USD versus ZAR | Put | Bank of America, N.A. | 06/01/2023 | ZAR | 16.50 | USD | 1,750,000 | 12,758 | ||||||||||||
USD versus ZAR | Put | Goldman Sachs International | 05/01/2023 | ZAR | 17.55 | USD | 52,500,000 | 53 | ||||||||||||
USD versus ZAR | Put | Goldman Sachs International | 07/13/2023 | ZAR | 16.50 | USD | 35,000,000 | 44,030 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
22 | Invesco Global Strategic Income Fund |
Open Over-The-Counter Foreign Currency Options Purchased(a)–(continued) | ||||||||||||||||||||
Type of | Expiration | Exercise | Notional | |||||||||||||||||
Description | Contract | Counterparty | Date | Price | Value | Value | ||||||||||||||
USD versus ZAR | Put | Goldman Sachs International | 07/31/2023 | ZAR | 17.10 | USD | 3,500,000 | $ 515,312 | ||||||||||||
USD versus ZAR | Put | J.P. Morgan Chase Bank, N.A. | 08/10/2023 | ZAR | 17.00 | USD | 35,000,000 | 180,845 | ||||||||||||
Subtotal – Foreign Currency Put Options Purchased | 14,181,670 | |||||||||||||||||||
Total Foreign Currency Options Purchased | $17,436,240 |
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,278,000. |
Open Over-The-Counter Interest Rate Swaptions Purchased(a) | ||||||||||||||||||||||||||||||||||
Pay/ | ||||||||||||||||||||||||||||||||||
Receive | ||||||||||||||||||||||||||||||||||
Type of | Exercise | Exercise | Floating Rate | Payment | Expiration | Notional | ||||||||||||||||||||||||||||
Description | Contract | Counterparty | Rate | Rate | Index | Frequency | Date | Value | Value | |||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 2.84% | Receive | | 6 Month EURIBOR | | Semi-Annually | 03/07/2024 | EUR | 23,940,000 | $ 778,795 | ||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 3.77 | Pay | SOFR | Annually | 08/07/2023 | USD | 247,800,000 | 894,466 | ||||||||||||||||||||||||
15 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 1.81 | Pay | | 6 Month EURIBOR | | Semi-Annually | 04/06/2038 | EUR | 47,250,000 | 4,395,957 | ||||||||||||||||||||||
30 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 2.82 | Pay | SOFR | Annually | 03/31/2025 | USD | 23,100,000 | 1,980,721 | ||||||||||||||||||||||||
40 Year Interest Rate Swap | Put | J.P. Morgan Chase Bank, N.A. | 2.00 | Pay | | 6 Month EURIBOR | | Semi-Annually | 04/17/2024 | EUR | 46,200,000 | 6,464,992 | ||||||||||||||||||||||
5 Year Interest Rate Swap | Put | J.P. Morgan Chase Bank, N.A. | 0.75 | Pay | TONAR | Annually | 03/04/2024 | JPY | 10,920,000,000 | 266,922 | ||||||||||||||||||||||||
Subtotal – Interest Rate Put Swaptions Purchased |
| 14,003,058 | ||||||||||||||||||||||||||||||||
Total Interest Rate Swaptions Purchased |
| $14,781,853 |
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,278,000. |
Open Over-The-Counter Credit Default Swaptions Written(a) | ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
(Pay)/ | ||||||||||||||||||||||||||||||||||||||
Receive | Implied | |||||||||||||||||||||||||||||||||||||
Type of | Exercise | Reference | Fixed | Payment | Expiration | Credit | Notional | |||||||||||||||||||||||||||||||
Counterparty | Contract | Rate | Entity | Rate | Frequency | Date | Spread(b) | Value | Value | |||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Put | 96.00% | Markit CDX North America High Yield Index, Series 40, Version 1 | 5.00% | Quarterly | 09/20/2023 | 4.645% | USD | 70,000,000 | $ | (858,225 | ) | ||||||||||||||||||||||||||
|
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,278,000. |
(b) | Implied credit spreads represent the current level, as of April 30, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
23 | Invesco Global Strategic Income Fund |
Open Over-The-Counter Foreign Currency Options Written(a) |
| |||||||||||||||||||||||||||
Type of | Expiration | Exercise | Notional | |||||||||||||||||||||||||
Description | Contract | Counterparty | Date | Price | Value | Value | ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
AUD versus USD | Call | Bank of America, N.A. | 07/27/2023 | USD | 0.78 | AUD | 52,500,000 | $ | (1,702 | ) | ||||||||||||||||||
| ||||||||||||||||||||||||||||
AUD versus USD | Call | Goldman Sachs International | 07/20/2023 | USD | 0.75 | AUD | 87,500,000 | (11,001 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
CNY versus INR | Call | Goldman Sachs International | 07/20/2023 | INR | 12.20 | CNY | 122,500,000 | (55,369 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
EUR versus HUF | Call | Goldman Sachs International | 09/15/2023 | HUF | 450.00 | EUR | 1,050,000 | (50,491 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
EUR versus HUF | Call | J.P. Morgan Chase Bank, N.A. | 10/12/2023 | HUF | 418.00 | EUR | 35,000,000 | (574,178 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
EUR versus JPY | Call | J.P. Morgan Chase Bank, N.A. | 07/03/2023 | JPY | 146.00 | EUR | 70,000,000 | (2,398,683 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Bank of America, N.A. | 10/10/2023 | BRL | 6.24 | USD | 38,500,000 | (181,258 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Goldman Sachs International | 07/03/2023 | BRL | 5.48 | USD | 35,000,000 | (200,235 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Goldman Sachs International | 11/16/2023 | BRL | 5.55 | USD | 1,120,000 | (232,114 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Goldman Sachs International | 01/08/2024 | BRL | 6.10 | USD | 3,500,000 | (331,272 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Morgan Stanley and Co. International PLC | 07/11/2023 | BRL | 5.60 | USD | 35,000,000 | (161,140 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus CLP | Call | Morgan Stanley and Co. International PLC | 06/28/2023 | CLP | 897.85 | USD | 35,000,000 | (138,180 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus COP | Call | Morgan Stanley and Co. International PLC | 06/08/2023 | COP | 4,810.00 | USD | 42,000,000 | (785,778 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus COP | Call | Morgan Stanley and Co. International PLC | 09/27/2023 | COP | 5,280.00 | USD | 35,000,000 | (695,345 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus IDR | Call | Goldman Sachs International | 10/04/2023 | IDR | 15,700.00 | USD | 42,000,000 | (256,242 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus JPY | Call | Goldman Sachs International | 05/11/2023 | JPY | 136.25 | USD | 52,500,000 | (352,328 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | Goldman Sachs International | 06/30/2023 | MXN | 19.00 | USD | 70,000,000 | (483,350 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | Goldman Sachs International | 08/17/2023 | MXN | 20.00 | USD | 1,400,000 | (142,563 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | Goldman Sachs International | 01/16/2024 | MXN | 21.00 | USD | 119,000,000 | (1,629,110 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | Morgan Stanley and Co. International PLC | 06/05/2023 | MXN | 19.82 | USD | 24,500,000 | (27,342 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
Subtotal – Foreign Currency Call Options Written | (8,707,681 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
AUD versus USD | Put | Bank of America, N.A. | 07/27/2023 | USD | 0.68 | AUD | 52,500,000 | (1,037,661 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
AUD versus USD | Put | Goldman Sachs International | 07/20/2023 | USD | 0.65 | AUD | 87,500,000 | (795,587 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Put | Bank of America, N.A. | 10/10/2023 | BRL | 4.69 | USD | 38,500,000 | (340,956 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Put | Goldman Sachs International | 07/03/2023 | BRL | 4.90 | USD | 35,000,000 | (441,735 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus CLP | Put | Morgan Stanley and Co. International PLC | 06/28/2023 | CLP | 744.05 | USD | 35,000,000 | (60,585 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus COP | Put | Morgan Stanley and Co. International PLC | 06/08/2023 | COP | 4,260.00 | USD | 42,000,000 | (24,780 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus COP | Put | Morgan Stanley and Co. International PLC | 09/27/2023 | COP | 4,230.00 | USD | 35,000,000 | (166,040 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus IDR | Put | Goldman Sachs International | 10/04/2023 | IDR | 14,250.00 | USD | 42,000,000 | (343,308 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Put | Goldman Sachs International | 06/30/2023 | MXN | 17.50 | USD | 70,000,000 | (224,420 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
Subtotal – Foreign Currency Put Options Written | (3,435,072 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total – Foreign Currency Options Written | $ | (12,142,753 | ) | |||||||||||||||||||||||||
|
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,278,000. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
24 | Invesco Global Strategic Income Fund |
Open Over-The-Counter Interest Rate Swaptions Written(a) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Pay/ | ||||||||||||||||||||||||||||||
Receive | ||||||||||||||||||||||||||||||
Type of | Exercise | Floating | Exercise | Payment | Expiration | Notional | ||||||||||||||||||||||||
Description | Contract | Counterparty | Rate | Rate Index | Rate | Frequency | Date | Value | Value | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Bank of America, N.A. | 3.61 | % | SOFR | Receive | Annually | 03/14/2024 | USD | 350,000,000 | $ | (5,480,570 | ) | |||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Barclays Bank PLC | 3.92 | SONIA | Receive | Annually | 06/02/2023 | GBP | 74,900,000 | (34,409 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Call | Goldman Sachs International | 3.49 | SOFR | Receive | Annually | 05/30/2023 | USD | 87,500,000 | (1,106,149 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Goldman Sachs International | 3.25 | SOFR | Receive | Annually | 03/27/2024 | USD | 157,500,000 | (7,276,936 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.75 | SOFR | Receive | Annually | 07/05/2024 | USD | 35,000,000 | (1,016,653 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
30 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.42 | SOFR | Receive | Annually | 04/15/2024 | USD | 35,000,000 | (1,031,764 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
30 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.48 | SOFR | Receive | Annually | 04/17/2024 | USD | 17,500,000 | (581,502 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.44 | 6 Month EURIBOR | Receive | Semi-Annually | 04/14/2025 | EUR | 52,500,000 | (1,765,645 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.75 | SOFR | Receive | Annually | 09/16/2024 | USD | 262,500,000 | (2,939,239 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 0.35 | TONAR | Receive | Annually | 03/04/2024 | JPY | 10,920,000,000 | (634,565 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 3.98 | SONIA | Receive | Annually | 05/30/2023 | GBP | 175,000,000 | (90,068 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 2.47 | SOFR | Receive | Annually | 03/13/2025 | USD | 42,000,000 | (1,120,707 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 2.56 | SOFR | Receive | Annually | 03/10/2025 | USD | 42,000,000 | (1,230,707 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 3.20 | 6 Month EURIBOR | Receive | Semi-Annually | 03/07/2024 | EUR | 105,000,000 | (1,238,059 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 3.50 | SOFR | Receive | Annually | 03/14/2024 | USD | 525,000,000 | (5,071,136 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 2.95 | SOFR | Receive | Annually | 07/08/2024 | USD | 105,000,000 | (3,894,825 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 3.77 | SOFR | Receive | Annually | 08/07/2023 | USD | 247,800,000 | (14,714,347 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
Subtotal–Interest Rate Call Swaptions Written |
| (49,227,281 | ) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Put | Barclays Bank PLC | 4.52 | SONIA | Pay | Annually | 06/02/2023 | GBP | 149,800,000 | (523,121 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Put | J.P. Morgan Chase Bank, N.A. | 1.10 | TONAR | Pay | Annually | 03/04/2024 | JPY | 10,920,000,000 | (167,148 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Put | J.P. Morgan Chase Bank, N.A. | 2.60 | 6 Month EURIBOR | Pay | Semi-Annually | 04/17/2024 | EUR | 138,600,000 | (7,521,114 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 5.13 | SONIA | Pay | Annually | 05/30/2023 | GBP | 350,000,000 | (100,012 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 4.00 | SOFR | Pay | Annually | 09/16/2024 | USD | 262,500,000 | (1,404,963 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 3.56 | SOFR | Pay | Annually | 03/10/2025 | USD | 42,000,000 | (1,125,401 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 3.31 | SOFR | Pay | Annually | 03/31/2025 | USD | 98,280,000 | (1,919,994 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
Subtotal–Interest Rate Put Swaptions Written |
| (12,761,753 | ) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Total Open Over-The-Counter Interest Rate Swaptions Written |
| $ | (61,989,034 | ) | ||||||||||||||||||||||||||
|
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,278,000. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
25 | Invesco Global Strategic Income Fund |
Open Futures Contracts(a) | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Euro-Schatz | 4,690 | May-2023 | $ | 516,791 | $ | (922,059 | ) | $ | (922,059 | ) | ||||||||||
| ||||||||||||||||||||
U.S. Treasury 2 Year Notes | 207 | June-2023 | 42,675,961 | 329,924 | 329,924 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 454 | June-2023 | 49,822,953 | 26,646 | 26,646 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Notes | 791 | June-2023 | 91,125,672 | 2,663,445 | 2,663,445 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Ultra Notes | 694 | June-2023 | 84,288,469 | 2,296,250 | 2,296,250 | |||||||||||||||
| ||||||||||||||||||||
Subtotal–Long Futures Contracts | 4,394,206 | 4,394,206 | ||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Euro-Bobl | 37 | June-2023 | (4,809,674 | ) | 2,039 | 2,039 | ||||||||||||||
| ||||||||||||||||||||
Euro-Bund | 14 | June-2023 | (2,091,231 | ) | 44,506 | 44,506 | ||||||||||||||
| ||||||||||||||||||||
Euro-Schatz | 1,185 | June-2023 | (137,985,346 | ) | 1,099,883 | 1,099,883 | ||||||||||||||
| ||||||||||||||||||||
U.S. Treasury Long Bonds | 56 | June-2023 | (7,372,750 | ) | (362,250 | ) | (362,250 | ) | ||||||||||||
| ||||||||||||||||||||
U.S. Treasury Ultra Bonds | 141 | June-2023 | (19,938,281 | ) | (898,148 | ) | (898,148 | ) | ||||||||||||
| ||||||||||||||||||||
Subtotal–Short Futures Contracts | (113,970 | ) | (113,970 | ) | ||||||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | 4,280,236 | $ | 4,280,236 | ||||||||||||||||
|
(a) | Futures contracts collateralized by $71,611,889 cash held with Merrill Lynch International, the futures commission merchant. |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||
| ||||||||||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Bank of America, N.A. | USD | 16,948,495 | EUR | 15,400,000 | $ | 20,772 | |||||||||||||||
| ||||||||||||||||||||||
05/30/2023 | Bank of America, N.A. | USD | 12,321,232 | EUR | 11,200,000 | 39,308 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | JPY | 584,660,000 | USD | 4,515,870 | 192,049 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 1,122,495 | GBP | 900,000 | 9,745 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 15,719,374 | SEK | 164,058,153 | 318,996 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 24,263 | SGD | 32,602 | 213 | ||||||||||||||||
| ||||||||||||||||||||||
09/06/2023 | Bank of America, N.A. | JPY | 520,811,200 | USD | 3,920,000 | 23,366 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | NOK | 100,444,400 | USD | 9,532,907 | 85,044 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | NZD | 4,281,000 | USD | 2,662,001 | 15,153 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | USD | 5,717,066 | EUR | 5,275,000 | 111,719 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Citibank, N.A. | CAD | 13,745,000 | USD | 10,167,433 | 12,311 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Citibank, N.A. | COP | 77,731,406,400 | USD | 16,976,000 | 612,435 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Citibank, N.A. | USD | 51,741,879 | IDR | 800,860,809,600 | 2,814,264 | ||||||||||||||||
| ||||||||||||||||||||||
06/22/2023 | Citibank, N.A. | CLP | 4,525,565,000 | USD | 5,581,605 | 12,464 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | JPY | 1,694,790,000 | USD | 12,620,797 | 87,068 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 19,429,216 | HUF | 7,078,452,104 | 1,166,611 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 50,562,608 | MXN | 935,236,008 | 933,283 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 29,471,087 | ZAR | 547,313,457 | 315,594 | ||||||||||||||||
| ||||||||||||||||||||||
05/15/2023 | Goldman Sachs International | JPY | 1,371,332,550 | USD | 10,605,000 | 520,099 | ||||||||||||||||
| ||||||||||||||||||||||
05/16/2023 | Goldman Sachs International | USD | 20,786,220 | EUR | 18,900,000 | 55,857 | ||||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | Goldman Sachs International | USD | 2,113,000 | BRL | 10,712,656 | 21,731 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 49,914,779 | MXN | 918,981,000 | 686,080 | ||||||||||||||||
| ||||||||||||||||||||||
07/05/2023 | Goldman Sachs International | USD | 9,450,000 | MXN | 173,336,625 | 67,546 | ||||||||||||||||
| ||||||||||||||||||||||
07/24/2023 | Goldman Sachs International | AUD | 38,062,500 | USD | 26,529,562 | 1,255,501 | ||||||||||||||||
| ||||||||||||||||||||||
08/02/2023 | Goldman Sachs International | USD | 26,579,070 | EUR | 24,010,000 | 11,083 | ||||||||||||||||
| ||||||||||||||||||||||
09/05/2023 | Goldman Sachs International | USD | 33,425,000 | MXN | 645,102,500 | 1,571,679 | ||||||||||||||||
| ||||||||||||||||||||||
09/19/2023 | Goldman Sachs International | USD | 9,167,813 | EUR | 8,334,375 | 81,932 | ||||||||||||||||
| ||||||||||||||||||||||
09/29/2023 | Goldman Sachs International | USD | 8,400,000 | SEK | 86,360,400 | 79,651 | ||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
26 | Invesco Global Strategic Income Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
| ||||||||||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||
02/13/2024 | Goldman Sachs International | JPY | 1,094,562,000 | USD | 8,820,000 | $ | 432,624 | |||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | HSBC Bank USA | USD | 2,162,250 | BRL | 10,962,543 | 22,276 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | CNY | 121,844,607 | USD | 17,759,942 | 94,220 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | KRW | 17,516,100,000 | USD | 13,353,638 | 223,634 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 34,138,129 | EUR | 31,150,000 | 282,089 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 20,548,275 | THB | 704,025,000 | 168,329 | ||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | USD | 224,670,397 | BRL | 1,135,361,155 | 2,957,245 | ||||||||||||||||
| ||||||||||||||||||||||
05/24/2023 | J.P. Morgan Chase Bank, N.A. | CAD | 10,869,259 | USD | 8,137,500 | 111,510 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | KRW | 22,430,437,800 | USD | 17,084,000 | 270,227 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 18,743,893 | COP | 90,699,823,600 | 349,708 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 144,742 | CZK | 3,260,232 | 7,590 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 9,156,140 | ZAR | 169,049,125 | 44,095 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | ZAR | 314,185,391 | USD | 17,102,000 | 2,950 | ||||||||||||||||
| ||||||||||||||||||||||
07/05/2023 | J.P. Morgan Chase Bank, N.A. | JPY | 4,147,593,100 | USD | 31,628,422 | 889,123 | ||||||||||||||||
| ||||||||||||||||||||||
07/05/2023 | J.P. Morgan Chase Bank, N.A. | USD | 31,602,966 | EUR | 28,910,000 | 366,978 | ||||||||||||||||
| ||||||||||||||||||||||
07/12/2023 | J.P. Morgan Chase Bank, N.A. | USD | 3,784,935 | EUR | 3,500,000 | 86,932 | ||||||||||||||||
| ||||||||||||||||||||||
10/16/2023 | J.P. Morgan Chase Bank, N.A. | USD | 7,756,000 | EUR | 7,000,000 | 22,138 | ||||||||||||||||
| ||||||||||||||||||||||
03/20/2024 | J.P. Morgan Chase Bank, N.A. | CNY | 56,290,000 | USD | 8,330,343 | 27,568 | ||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Morgan Stanley and Co. International PLC | USD | 225,246,383 | BRL | 1,135,361,155 | 2,381,260 | ||||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | Morgan Stanley and Co. International PLC | USD | 55,977,809 | BRL | 284,661,155 | 747,135 | ||||||||||||||||
| ||||||||||||||||||||||
06/05/2023 | Morgan Stanley and Co. International PLC | USD | 6,916,560 | GBP | 5,600,000 | 126,299 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 59,523,155 | AUD | 89,798,831 | 23,640 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 27,554,441 | CAD | 37,487,225 | 141,982 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 244,700,865 | EUR | 230,769,321 | 10,295,293 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 9,255,730 | GBP | 7,806,000 | 564,562 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 37,973,447 | PLN | 167,191,533 | 2,087,750 | ||||||||||||||||
| ||||||||||||||||||||||
09/22/2023 | Morgan Stanley and Co. International PLC | CNY | 77,861,840 | USD | 11,410,000 | 55,045 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | USD | 8,552,302 | EUR | 7,800,000 | 66,566 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | JPY | 1,378,210,000 | USD | 10,567,537 | 375,060 | ||||||||||||||||
| ||||||||||||||||||||||
Subtotal–Appreciation |
| 34,345,382 | ||||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Bank of America, N.A. | EUR | 15,400,000 | USD | 16,877,014 | (92,253 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | EUR | 26,285,000 | USD | 29,013,490 | (30,986 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | THB | 831,060,392 | USD | 24,294,683 | (160,056 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 17,515,398 | KRW | 22,944,121,076 | (316,570 | ) | |||||||||||||||
| ||||||||||||||||||||||
08/11/2023 | Bank of America, N.A. | MXN | 223,684,300 | USD | 11,900,000 | (293,409 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/01/2023 | Bank of America, N.A. | THB | 602,525,000 | USD | 17,500,000 | (354,174 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/29/2023 | Bank of America, N.A. | AUD | 26,723,677 | USD | 17,500,000 | (290,824 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/13/2023 | Bank of America, N.A. | BRL | 99,504,000 | USD | 18,000,000 | (1,348,665 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Barclays Bank PLC | USD | 2,113,000 | COP | 9,703,952,500 | (70,180 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | EUR | 30,794,504 | USD | 33,678,000 | (349,401 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | USD | 9,716,356 | NOK | 100,538,082 | (259,682 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | USD | 18,418,817 | NZD | 29,620,927 | (104,846 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Citibank, N.A. | IDR | 219,748,620,000 | USD | 14,197,482 | (772,208 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/22/2023 | Citibank, N.A. | USD | 17,794,893 | CLP | 14,428,099,255 | (39,738 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | EUR | 3,650,000 | USD | 3,922,061 | (111,127 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | MXN | 1,080,533,850 | USD | 58,333,752 | (1,162,517 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 122,829,053 | JPY | 16,494,160,743 | (847,374 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | ZAR | 885,660,000 | USD | 47,689,972 | (510,692 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/25/2023 | Goldman Sachs International | JPY | 1,049,895,000 | USD | 7,700,000 | (32,567 | ) | |||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
27 | Invesco Global Strategic Income Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
| ||||||||||||||||||||||
Settlement | Contract to | Unrealized Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | COP | 77,587,284,000 | USD | 15,925,958 | $ | (407,268 | ) | ||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | EUR | 31,023,462 | USD | 34,014,000 | (266,396 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | MXN | 1,598,186,101 | USD | 86,781,700 | (1,217,497 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/29/2023 | Goldman Sachs International | PLN | 26,607,498 | USD | 5,165,000 | (1,207,702 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/12/2023 | Goldman Sachs International | EUR | 30,800,000 | USD | 33,818,400 | (254,033 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/17/2023 | Goldman Sachs International | MXN | 307,243,125 | USD | 15,750,000 | (1,080,288 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/26/2023 | Goldman Sachs International | ZAR | 98,542,500 | USD | 5,250,000 | (95,263 | ) | |||||||||||||||
| ||||||||||||||||||||||
08/02/2023 | Goldman Sachs International | PLN | 110,494,930 | USD | 26,390,000 | (24,394 | ) | |||||||||||||||
| ||||||||||||||||||||||
08/03/2023 | Goldman Sachs International | EUR | 9,975,000 | USD | 10,980,480 | (67,027 | ) | |||||||||||||||
| ||||||||||||||||||||||
08/21/2023 | Goldman Sachs International | MXN | 166,217,660 | USD | 8,680,000 | (363,343 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/06/2023 | Goldman Sachs International | IDR | 310,184,000,000 | USD | 20,300,000 | (801,889 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/19/2023 | Goldman Sachs International | HUF | 3,528,000,000 | USD | 9,187,500 | (847,839 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/29/2023 | Goldman Sachs International | SEK | 115,583,565 | USD | 10,470,000 | (879,048 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/16/2023 | Goldman Sachs International | AUD | 3,675,000 | USD | 2,326,275 | (121,889 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/16/2023 | Goldman Sachs International | NZD | 8,166,667 | USD | 4,569,250 | (475,046 | ) | |||||||||||||||
| ||||||||||||||||||||||
11/16/2023 | Goldman Sachs International | MXN | 111,483,000 | USD | 5,400,000 | (565,620 | ) | |||||||||||||||
| ||||||||||||||||||||||
11/20/2023 | Goldman Sachs International | BRL | 23,325,120 | USD | 4,032,000 | (474,692 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | PEN | 95,220,000 | USD | 24,954,792 | (657,031 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 482,462 | CNY | 3,310,000 | (2,560 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | BRL | 1,135,361,155 | USD | 219,957,637 | (7,670,006 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | COP | 205,734,865,000 | USD | 42,516,866 | (793,245 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | EUR | 18,778,808 | USD | 20,178,882 | (571,381 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | INR | 1,543,170,000 | USD | 18,678,149 | (155,434 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 2,162,250 | COP | 9,931,798,057 | (71,465 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 16,981,000 | EUR | 15,311,819 | (61,702 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 34,168,000 | JPY | 4,534,961,467 | (629,936 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | ZAR | 314,728,538 | USD | 17,084,000 | (44,610 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/12/2023 | J.P. Morgan Chase Bank, N.A. | HUF | 1,476,125,000 | USD | 3,784,936 | (485,103 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/16/2023 | J.P. Morgan Chase Bank, N.A. | HUF | 2,794,260,000 | USD | 7,755,999 | (143,102 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Morgan Stanley and Co. International PLC | BRL | 1,135,361,155 | USD | 226,440,117 | (1,187,525 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | Morgan Stanley and Co. International PLC | BRL | 850,700,000 | USD | 167,287,744 | (2,232,789 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/07/2023 | Morgan Stanley and Co. International PLC | MXN | 42,777,000 | USD | 2,100,000 | (262,027 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | AUD | 23,775,000 | USD | 15,759,259 | (6,259 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | EUR | 158,296,784 | USD | 167,853,160 | (7,062,081 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | GBP | 135,578,095 | USD | 161,047,262 | (9,515,959 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | PLN | 103,155,000 | USD | 23,120,956 | (1,596,281 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | SEK | 132,096,475 | USD | 12,898,138 | (15,649 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/13/2023 | Morgan Stanley and Co. International PLC | BRL | 149,384,000 | USD | 28,400,000 | (1,149,713 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/13/2023 | Morgan Stanley and Co. International PLC | COP | 14,578,095,000 | USD | 2,975,000 | (79,853 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | USD | 980,000 | COP | 4,699,100,000 | (11,563 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/11/2023 | Morgan Stanley and Co. International PLC | MXN | 203,597,100 | USD | 10,710,000 | (259,213 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | CAD | 23,387,438 | USD | 17,204,855 | (74,321 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | EUR | 5,840,000 | USD | 6,421,997 | (31,103 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | USD | 13,514,088 | JPY | 1,765,236,000 | (459,380 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | USD | 376,027 | ZAR | 6,815,000 | (5,131 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/15/2023 | Standard Chartered Bank PLC | AUD | 4,900,000 | USD | 3,236,450 | (7,636 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | UBS AG | HUF | 2,596,209,525 | USD | 7,390,340 | (163,724 | ) | |||||||||||||||
| ||||||||||||||||||||||
Subtotal–Depreciation |
| (51,702,285 | ) | |||||||||||||||||||
| ||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | (17,356,903 | ) | ||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
28 | Invesco Global Strategic Income Fund |
Open Centrally Cleared Credit Default Swap Agreements(a) | ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Reference | 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 | ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Markit iTraxx Europe Index, Series 37, Version 1 | Buy | (1.00 | )% | Quarterly | 06/20/2027 | 0.701 | % | EUR | 7,525,000 | $ | (69,434 | ) | $ | (95,223 | ) | $ | (25,789) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Brazil Government International Bonds | Buy | (1.00 | ) | Quarterly | 12/20/2027 | 1.978 | USD | 3,500,000 | 180,403 | 138,345 | (42,058) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Markit CDX North America High Yield Index, Series 40, Version 1 | Buy | (5.00 | ) | Quarterly | 06/20/2028 | 4.645 | USD | 28,000,000 | (392,000 | ) | (395,109 | ) | (3,109) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Societe Generale | Sell | 1.00 | Quarterly | 06/20/2027 | 1.142 | EUR | 10,500,000 | 9,394 | (67,279 | ) | (76,673) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Total Centrally Cleared Credit Default Swap Agreements |
| $ | (271,637 | ) | $ | (419,266 | ) | $ | (147,629) | |||||||||||||||||||||||||||||
|
(a) | Centrally cleared swap agreements collateralized by $41,926,037 cash held with Counterparties. |
(b) | Implied credit spreads represent the current level, as of April 30, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Open Centrally Cleared Interest Rate Swap Agreements(a) | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay/ Receive | Floating Rate Index | Payment Frequency | (Pay)/ Receive Fixed Rate | Payment Frequency | Maturity Date | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.06 | )% | Quarterly | 05/16/2032 | COP | 25,900,000,000 | $ | – | $ | 20,324 | $ | 20,324 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | CPURNSA | At Maturity | (2.44 | ) | At Maturity | 01/18/2033 | USD | 4,200,000 | – | 26,483 | 26,483 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.01 | ) | Quarterly | 05/24/2032 | COP | 25,400,000,000 | – | 31,142 | 31,142 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | TTHORON | Quarterly | 2.00 | Quarterly | 04/24/2025 | THB | 1,228,500,000 | – | 37,908 | 37,908 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month CZK PRIOBR | Quarterly | (7.02 | ) | Annually | 02/10/2024 | CZK | 725,000,000 | – | 43,916 | 43,916 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | SOFR | Annually | 4.11 | Annually | 04/18/2025 | USD | 92,050,000 | – | 44,450 | 44,450 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | TTHORON | Quarterly | 2.60 | Quarterly | 04/24/2033 | THB | 268,800,000 | – | 48,101 | 48,101 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 days | 9.25 | 28 days | 02/10/2025 | MXN | 752,500,000 | – | 55,450 | 55,450 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (8.54 | ) | Quarterly | 05/27/2032 | COP | 9,450,000,000 | – | 68,350 | 68,350 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | NFIX3FRA | Quarterly | 4.37 | Semi-Annually | 03/23/2028 | NZD | 37,800,000 | – | 70,460 | 70,460 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (8.88 | ) | Quarterly | 05/09/2032 | COP | 27,000,000,000 | – | 85,756 | 85,756 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | SOFR | Annually | 4.21 | Annually | 04/19/2025 | USD | 45,937,500 | – | 105,977 | 105,977 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 days | 9.40 | 28 days | 02/10/2025 | MXN | 787,500,000 | – | 115,281 | 115,281 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | BZDIOVRA | At Maturity | (13.14 | ) | At Maturity | 01/02/2024 | BRL | 549,307,142 | – | 123,309 | 123,309 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 3 Month CDOR | Semi-Annually | 3.99 | Semi-Annually | 02/13/2025 | CAD | 250,250,000 | – | 130,209 | 130,209 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | BZDIOVRA | At Maturity | (13.11 | ) | At Maturity | 01/02/2024 | BRL | 544,623,721 | – | 146,729 | 146,729 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | SOFR | Annually | (2.94 | ) | Annually | 04/14/2053 | USD | 21,504,000 | – | 180,719 | 180,719 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 Days | 9.13 | 28 Days | 02/11/2028 | MXN | 163,100,000 | – | 208,457 | 208,457 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | FBIL Overnight MIBOR | Semi-Annually | (5.65 | ) | Semi-Annually | 02/17/2027 | INR | 1,837,500,000 | – | 280,283 | 280,283 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (6.61 | ) | Quarterly | 10/19/2026 | ZAR | 119,500,000 | 481 | 319,481 | 319,000 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (6.65 | ) | Quarterly | 10/11/2026 | ZAR | 124,250,000 | – | 335,189 | 335,189 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 3 Month CDOR | Semi-Annually | 4.15 | Semi-Annually | 02/14/2025 | CAD | 250,250,000 | – | 403,983 | 403,983 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | SOFR | Annually | 3.37 | Annually | 12/15/2032 | USD | 29,820,000 | – | 477,475 | 477,475 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (6.63 | ) | Quarterly | 02/11/2031 | ZAR | 68,250,000 | – | 506,551 | 506,551 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 28 Day MXN TIIE | 28 days | (8.35 | ) | 28 days | 03/06/2025 | MXN | 551,250,000 | – | 915,523 | 915,523 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 6 Month EURIBOR Semi-Annually | 3.74 | Annually | 03/14/2025 | EUR | 204,162,000 | 851 | 1,003,680 | 1,002,829 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (6.70 | ) | Quarterly | 01/29/2031 | ZAR | 145,000,000 | – | 1,039,437 | 1,039,437 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (6.70 | ) | Quarterly | 01/27/2031 | ZAR | 148,000,000 | – | 1,060,633 | 1,060,633 | |||||||||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
29 | Invesco Global Strategic Income Fund |
Open Centrally Cleared Interest Rate Swap Agreements(a)–(continued) | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay/ Receive | Floating Rate Index | Payment Frequency | (Pay)/ Receive Fixed Rate | Payment Frequency | Maturity Date | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (7.32 | )% | Quarterly | 07/15/2031 | ZAR | 206,100,000 | $ | – | $ | 1,184,552 | $ | 1,184,552 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | SOFR | Annually | 3.77 | Annually | 08/09/2033 | USD | 192,290,000 | (44,845 | ) | 10,724,413 | 10,769,258 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Subtotal – Appreciation |
| (43,513 | ) | 19,794,221 | 19,837,734 | |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Interest Rate Risk |
| |||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 6 Month EURIBOR | Semi-Annually | 2.55 | Annually | 04/24/2034 | EUR | 37,800,000 | – | (1,277,718 | ) | (1,277,718 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | SOFR | At Maturity | (4.20 | ) | At Maturity | 02/16/2025 | USD | 187,250,000 | – | (1,144,322 | ) | (1,144,322 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 11.30 | At Maturity | 01/02/2026 | BRL | 181,797,497 | – | (841,121 | ) | (841,121 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | SOFR | At Maturity | (4.00 | ) | At Maturity | 02/15/2025 | USD | 187,250,000 | – | (792,333 | ) | (792,333 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | SONIA | Annually | 4.24 | Annually | 05/30/2025 | GBP | 118,160,000 | – | (679,261 | ) | (679,261 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | FBIL Overnight MIBOR | Semi-Annually | (7.02 | ) | Semi-Annually | 05/25/2027 | INR | 1,312,500,000 | – | (595,780 | ) | (595,780 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 8.68 | At Maturity | 01/04/2027 | BRL | 56,292,938 | – | (585,136 | ) | (585,136 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 11.72 | At Maturity | 01/02/2026 | BRL | 174,013,173 | – | (389,014 | ) | (389,014 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | CLICP | Semi-Annually | (6.30 | ) | Semi-Annually | 03/09/2028 | CLP | 13,125,000,000 | – | (373,616 | ) | (373,616 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | SONIA | Annually | 4.25 | Annually | 06/02/2025 | GBP | 49,434,000 | – | (274,083 | ) | (274,083 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | SOFR | Annually | 2.94 | Annually | 04/24/2034 | USD | 78,750,000 | – | (260,131 | ) | (260,131 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 6 Month WIBOR | Semi-Annually | (7.61 | ) | Annually | 09/21/2024 | PLN | 88,200,000 | – | (254,198 | ) | (254,198 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.86 | ) | Quarterly | 09/09/2032 | COP | 25,200,000,000 | – | (251,622 | ) | (251,622 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.91 | ) | Quarterly | 01/17/2028 | COP | 42,590,000,000 | – | (207,846 | ) | (207,846 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | TTHORON | Quarterly | (2.26 | ) | Quarterly | 04/24/2028 | THB | 1,015,000,000 | – | (140,649 | ) | (140,649 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.85 | ) | Quarterly | 07/21/2032 | COP | 12,010,000,000 | – | (126,035 | ) | (126,035 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.71 | ) | Quarterly | 07/21/2032 | COP | 12,332,000,000 | – | (107,507 | ) | (107,507 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | SOFR | Annually | 3.34 | Annually | 04/14/2028 | USD | 92,190,000 | – | (35,039 | ) | (35,039 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (11.46 | ) | Quarterly | 11/01/2024 | COP | 96,250,000,000 | – | (34,846 | ) | (34,846 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | CLICP | Semi-Annually | 7.87 | Semi-Annually | 04/11/2025 | CLP | 14,700,000,000 | – | (4,933 | ) | (4,933 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Subtotal – Depreciation | – | (8,375,190 | ) | (8,375,190 | ) | |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Total Centrally Cleared Interest Rate Swap Agreements |
| $ | (43,513 | ) | $ | 11,419,031 | $ | 11,462,544 | ||||||||||||||||||||||||||||
|
(a) | Centrally cleared swap agreements collateralized by $41,926,037 cash held with Counterparties. |
Open Over-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 (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Citibank, N.A. | Assicurazioni Generali S.p.A. | Buy | (1.00 | )% | Quarterly | 12/20/2024 | 0.990 | % | EUR | 3,750,000 | $ | 24,242 | $ | 30,741 | $ | 6,499 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Royal Bank of Scotland Group PLC (The) | Buy | (1.00 | ) | Quarterly | 06/20/2027 | 1.841 | EUR | 5,250,000 | 152,396 | 184,029 | 31,633 | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Markit iTraxx Europe Index, Series 30, Version 1 | Sell | 1.00 | Quarterly | 12/20/2023 | 5.893 | EUR | 17,500,000 | (1,202,630 | ) | (596,805 | ) | 605,825 | |||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Subtotal–Appreciation |
| (1,025,992 | ) | (382,035 | ) | 643,957 | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Citibank, N.A. | Assicurazioni Generali S.p.A. | Buy | (1.00 | ) | Quarterly | 12/20/2024 | 0.990 | EUR | 3,750,000 | 15,747 | (666 | ) | (16,413 | ) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Goldman Sachs International | Markit iTraxx Europe Crossover Index, Series 32, Version 5 | Sell | 5.00 | Quarterly | 12/20/2024 | 3.010 | EUR | 7,100,000 | 312,253 | 248,242 | (64,011 | ) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Goldman Sachs International | Markit CDX North America High Yield Index, Series 39,Version 1 | Sell | 5.00 | Quarterly | 12/20/2027 | 3.394 | USD | 17,500,000 | 1,349,459 | 1,155,346 | (194,113 | ) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Subtotal–Depreciation |
| 1,677,459 | 1,402,922 | (274,537 | ) | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Total Open Over-The-Counter Credit Default Swap Agreements |
| $ | 651,467 | $ | 1,020,887 | $ | 369,420 | |||||||||||||||||||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
30 | Invesco Global Strategic Income Fund |
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,278,000. |
(b) | Implied credit spreads represent the current level, as of April 30, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Abbreviations: | ||
AUD | –Australian Dollar | |
BRL | –Brazilian Real | |
BZDIOVRA | –Brazil Ceptip DI Interbank Deposit Rate | |
CAD | –Canadian Dollar | |
CDOR | –Canadian Dealer Offered Rate | |
CLICP | –Sinacofi Chile Interbank Rate Avg (CAMARA) | |
CLP | –Chile Peso | |
CNH | –Chinese Renminbi | |
CNY | –Chinese Yuan Renminbi | |
COOVIBR | –Colombia IBR Overnight Nominal Interbank Reference Rate | |
COP | –Colombia Peso | |
CZK | –Czech Koruna | |
EUR | –Euro | |
EURIBOR | –Euro Interbank Offered Rate | |
FBIL | –Financial Benchmarks India Private Ltd. | |
GBP | –British Pound Sterling | |
HUF | –Hungarian Forint | |
IDR | –Indonesian Rupiah | |
INR | –Indian Rupee | |
JIBAR | –Johannesburg Interbank Average Rate | |
JPY | –Japanese Yen | |
KRW | –South Korean Won | |
MIBOR | –Mumbai Interbank Offered Rate | |
MXN | –Mexican Peso | |
NOK | –Norwegian Krone | |
NZD | –New Zealand Dollar | |
PEN | –Peruvian Sol | |
PLN | –Polish Zloty | |
SEK | –Swedish Krona | |
SGD | –Singapore Dollar | |
SOFR | –Secured Overnight Financing Rate | |
SONIA | –Sterling Overnight Index Average | |
THB | –Thai Baht | |
TIIE | –Interbank Equilibrium Interest Rate | |
TONAR | –Tokyo Overnight Average Rate | |
TTHORON | –Thai Overnight Repurchase Rate | |
USD | –U.S. Dollar | |
WIBOR | –Warsaw Interbank Offered Rate | |
ZAR | –South African Rand |
Portfolio Composition
By security type, based on Net Assets
as of April 30, 2023
Non-U.S. Dollar Denominated Bonds & Notes | 35.49 | % | ||
U.S. Dollar Denominated Bonds & Notes | 32.29 | |||
Asset-Backed Securities | 9.41 | |||
U.S. Treasury Securities | 6.59 | |||
U.S. Government Sponsored Agency Mortgage-Backed Securities | 2.37 | |||
Agency Credit Risk Transfer Notes | 1.87 | |||
Common Stocks & Other Equity Interests | 1.22 | |||
Options Purchased | 1.91 | |||
Security Types Each Less Than 1% of Portfolio | 0.58 | |||
Money Market Funds Plus Other Assets Less Liabilities | 8.27 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
31 | Invesco Global Strategic Income Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 1,552,511,355 | ||
| ||||
Investments in affiliated money market funds, at value | 121,398,418 | |||
| ||||
Other investments: | ||||
Variation margin receivable–centrally cleared swap agreements | 2,275,510 | |||
| ||||
Swaps receivable – OTC | 174,344 | |||
| ||||
Unrealized appreciation on swap agreements – OTC | 643,957 | |||
| ||||
Premiums paid on swap agreements – OTC | 651,467 | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 34,345,382 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral – exchange-traded futures contracts | 71,611,889 | |||
| ||||
Cash collateral – centrally cleared swap agreements | 41,926,037 | |||
| ||||
Cash collateral – OTC Derivatives | 61,278,000 | |||
| ||||
Cash collateral – TBA commitments | 669,000 | |||
| ||||
Cash | 40,288,724 | |||
| ||||
Foreign currencies, at value (Cost $16,066,270) | 15,607,115 | |||
| ||||
Receivable for: | ||||
Investments sold | 16,962,862 | |||
| ||||
Fund shares sold | 449,423 | |||
| ||||
Dividends | 99,874 | |||
| ||||
Interest | 23,558,805 | |||
| ||||
Principal paydowns | 262,765 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 418,277 | |||
| ||||
Other assets | 100,580 | |||
| ||||
Total assets | 1,985,233,784 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Options written, at value (premiums received $68,870,516) | 74,990,012 | |||
| ||||
Variation margin payable – futures contracts | 54,574,270 | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 51,702,285 | |||
| ||||
Swaps payable – OTC | 11,460 | |||
| ||||
Unrealized depreciation on swap agreements–OTC | 274,537 | |||
| ||||
Payable for: | ||||
Investments purchased | 50,368,448 | |||
| ||||
Dividends | 1,128,663 | |||
| ||||
Fund shares reacquired | 1,154,979 | |||
| ||||
Accrued foreign taxes | 3,397 | |||
| ||||
Collateral upon return of securities loaned | 56,872,239 | |||
| ||||
Accrued fees to affiliates | 909,748 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 351 | |||
| ||||
Accrued other operating expenses | 284,955 | |||
| ||||
Trustee deferred compensation and retirement plans | 418,277 | |||
| ||||
Total liabilities | 292,693,621 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,692,540,163 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 2,754,277,579 | ||
| ||||
Distributable earnings (loss) | (1,061,737,416 | ) | ||
| ||||
$ | 1,692,540,163 | |||
| ||||
Net Assets: | ||||
Class A | $ | 1,474,501,708 | ||
| ||||
Class C | $ | 47,365,179 | ||
| ||||
Class R | $ | 56,204,796 | ||
| ||||
Class Y | $ | 103,580,745 | ||
| ||||
Class R5 | $ | 8,434 | ||
| ||||
Class R6 | $ | 10,879,301 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 474,335,558 | |||
| ||||
Class C | 15,280,592 | |||
| ||||
Class R | 18,067,910 | |||
| ||||
Class Y | 33,370,257 | |||
| ||||
Class R5 | 2,710 | |||
| ||||
Class R6 | 3,516,126 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 3.11 | ||
| ||||
Maximum offering price per share | $ | 3.25 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 3.10 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 3.11 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 3.10 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 3.11 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 3.09 | ||
|
* | At April 30, 2023, securities with an aggregate value of $55,470,179 were on loan to brokers. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
32 | Invesco Global Strategic Income Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest (net of foreign withholding taxes of $172,869) | $ | 49,486,512 | ||
| ||||
Dividends from affiliates (includes net securities lending income of $114,858) | 1,072,884 | |||
| ||||
Total investment income | 50,559,396 | |||
| ||||
Expenses: | ||||
Advisory fees | 5,016,933 | |||
| ||||
Administrative services fees | 121,980 | |||
| ||||
Custodian fees | 158,342 | |||
| ||||
Distribution fees: | ||||
Class A | 1,743,524 | |||
| ||||
Class C | 241,926 | |||
| ||||
Class R | 136,312 | |||
| ||||
Transfer agent fees – A, C, R and Y | 1,289,222 | |||
| ||||
Transfer agent fees – R5 | 2 | |||
| ||||
Transfer agent fees – R6 | 1,532 | |||
| ||||
Trustees’ and officers’ fees and benefits | 11,363 | |||
| ||||
Registration and filing fees | 55,050 | |||
| ||||
Reports to shareholders | 73,626 | |||
| ||||
Professional services fees | 64,668 | |||
| ||||
Other | 17,282 | |||
| ||||
Total expenses | 8,931,762 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (77,555 | ) | ||
| ||||
Net expenses | 8,854,207 | |||
| ||||
Net investment income | 41,705,189 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities (net of foreign taxes of $46,149) | (41,245,442 | ) | ||
| ||||
Affiliated investment securities | 6,606 | |||
| ||||
Foreign currencies | 1,633,991 | |||
| ||||
Forward foreign currency contracts | (3,827,481 | ) | ||
| ||||
Futures contracts | (3,970,146 | ) | ||
| ||||
Option contracts written | 19,186,368 | |||
| ||||
Swap agreements | (17,131,582 | ) | ||
| ||||
(45,347,686 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities (net of foreign taxes of $3,397) | 124,935,389 | |||
| ||||
Affiliated investment securities | (5,231 | ) | ||
| ||||
Foreign currencies | 677,403 | |||
| ||||
Forward foreign currency contracts | (12,925,674 | ) | ||
| ||||
Futures contracts | 7,393,035 | |||
| ||||
Option contracts written | 18,833,981 | |||
| ||||
Swap agreements | 26,153,520 | |||
| ||||
165,062,423 | ||||
| ||||
Net realized and unrealized gain | 119,714,737 | |||
| ||||
Net increase in net assets resulting from operations | $ | 161,419,926 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
33 | Invesco Global Strategic Income Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, 2023 | October 31, 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 41,705,189 | $ | 57,305,451 | ||||
| ||||||||
Net realized gain (loss) | (45,347,686 | ) | (170,991,590 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 165,062,423 | (229,652,093 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 161,419,926 | (343,338,232 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (31,598,037 | ) | – | |||||
| ||||||||
Class C | (855,624 | ) | – | |||||
| ||||||||
Class R | (1,102,788 | ) | – | |||||
| ||||||||
Class Y | (2,435,298 | ) | – | |||||
| ||||||||
Class R5 | (192 | ) | – | |||||
| ||||||||
Class R6 | (248,131 | ) | – | |||||
| ||||||||
Total distributions from distributable earnings | (36,240,070 | ) | – | |||||
| ||||||||
Return of capital: | ||||||||
Class A | – | (54,922,897 | ) | |||||
| ||||||||
Class C | – | (1,516,768 | ) | |||||
| ||||||||
Class R | – | (1,802,840 | ) | |||||
| ||||||||
Class Y | – | (4,613,921 | ) | |||||
| ||||||||
Class R5 | – | (316 | ) | |||||
| ||||||||
Class R6 | – | (534,000 | ) | |||||
| ||||||||
Total return of capital | – | (63,390,742 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (68,461,678 | ) | (219,253,212 | ) | ||||
| ||||||||
Class C | (4,547,791 | ) | (17,438,498 | ) | ||||
| ||||||||
Class R | 366,953 | (6,115,570 | ) | |||||
| ||||||||
Class Y | (7,861,575 | ) | (26,212,159 | ) | ||||
| ||||||||
Class R6 | (368,712 | ) | (5,302,195 | ) | ||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (80,872,803 | ) | (274,321,634 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | 44,307,053 | (681,050,608 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,648,233,110 | 2,329,283,718 | ||||||
| ||||||||
End of period | $ | 1,692,540,163 | $ | 1,648,233,110 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
34 | Invesco Global Strategic Income Fund |
Consolidated Financial Highlights
(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(c) | Ratio of expenses to average net fee waivers expenses absorbed | Ratio of net investment income to average net assets | Portfolio turnover (d)(e) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $2.89 | $0.08 | $0.21 | $0.29 | $(0.07 | ) | $ – | $(0.07 | ) | $3.11 | 9.91 | %(f) | $1,474,502 | 1.03 | %(f)(g) | 1.04 | %(f)(g) | 4.95 | %(f)(g) | 37 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 3.56 | 0.09 | (0.66 | ) | (0.57 | ) | – | (0.10 | ) | (0.10 | ) | 2.89 | (16.12 | )(f) | 1,433,892 | 1.08 | (f)(h) | 1.10 | (f)(h) | 2.89 | (f)(h) | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 3.58 | 0.10 | (0.03 | ) | 0.07 | (0.04 | ) | (0.05 | ) | (0.09 | ) | 3.56 | 2.04 | (f) | 2,004,153 | 0.99 | (f) | 1.01 | (f) | 2.79 | (f) | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 3.75 | 0.10 | (0.16 | ) | (0.06 | ) | (0.05 | ) | (0.06 | ) | (0.11 | ) | 3.58 | (1.47 | )(f) | 2,236,548 | 0.98 | (f) | 0.99 | (f) | 2.70 | (f) | 273 | |||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 3.72 | 0.01 | 0.03 | 0.04 | (0.00 | ) | (0.01 | ) | (0.01 | ) | 3.75 | (1.11 | ) | 2,669,175 | 0.96 | (g) | 1.00 | (g) | 3.80 | (g) | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 3.73 | 0.19 | (0.01 | ) | 0.18 | (0.13 | ) | (0.06 | ) | (0.19 | ) | 3.72 | 5.08 | 2,671,046 | 0.95 | 1.00 | 5.25 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 3.96 | 0.18 | (0.23 | ) | (0.05 | ) | (0.18 | ) | – | (0.18 | ) | 3.73 | (1.49 | ) | 2,699,688 | 1.00 | 1.07 | 4.79 | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 2.88 | 0.06 | 0.21 | 0.27 | (0.05 | ) | – | (0.05 | ) | 3.10 | 9.53 | 47,365 | 1.79 | (g) | 1.80 | (g) | 4.19 | (g) | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 3.55 | 0.07 | (0.66 | ) | (0.59 | ) | – | (0.08 | ) | (0.08 | ) | 2.88 | (16.83 | ) | 48,257 | 1.84 | (h) | 1.86 | (h) | 2.13 | (h) | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 3.57 | 0.07 | (0.02 | ) | 0.05 | (0.05 | ) | (0.02 | ) | (0.07 | ) | 3.55 | 1.27 | 78,455 | 1.75 | 1.77 | 2.03 | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 3.74 | 0.07 | (0.16 | ) | (0.09 | ) | (0.03 | ) | (0.05 | ) | (0.08 | ) | 3.57 | (2.23 | ) | 154,642 | 1.74 | 1.75 | 1.94 | 273 | ||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 3.71 | 0.01 | 0.03 | 0.04 | (0.00 | ) | (0.01 | ) | (0.01 | ) | 3.74 | 1.04 | 220,077 | 1.72 | (g) | 1.76 | (g) | 3.03 | (g) | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 3.72 | 0.17 | (0.02 | ) | 0.15 | (0.11 | ) | (0.05 | ) | (0.16 | ) | 3.71 | 4.28 | 224,035 | 1.71 | 1.76 | 4.49 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 3.95 | 0.16 | (0.24 | ) | (0.08 | ) | (0.15 | ) | – | (0.15 | ) | 3.72 | (2.26 | ) | 540,465 | 1.76 | 1.83 | 4.03 | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 2.89 | 0.07 | 0.21 | 0.28 | (0.06 | ) | – | (0.06 | ) | 3.11 | 9.77 | 56,205 | 1.29 | (g) | 1.30 | (g) | 4.69 | (g) | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 3.56 | 0.09 | (0.66 | ) | (0.57 | ) | – | (0.10 | ) | (0.10 | ) | 2.89 | (16.34 | ) | 51,836 | 1.34 | (h) | 1.36 | (h) | 2.63 | (h) | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 3.59 | 0.09 | (0.03 | ) | 0.06 | (0.05 | ) | (0.04 | ) | (0.09 | ) | 3.56 | 1.49 | 70,527 | 1.25 | 1.27 | 2.53 | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 3.75 | 0.09 | (0.15 | ) | (0.06 | ) | (0.04 | ) | (0.06 | ) | (0.10 | ) | 3.59 | (1.45 | ) | 79,116 | 1.24 | 1.25 | 2.44 | 273 | ||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 3.72 | 0.01 | 0.03 | 0.04 | (0.00 | ) | (0.01 | ) | (0.01 | ) | 3.75 | 1.09 | 99,920 | 1.22 | (g) | 1.26 | (g) | 3.53 | (g) | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 3.73 | 0.18 | (0.01 | ) | 0.17 | (0.12 | ) | (0.06 | ) | (0.18 | ) | 3.72 | 4.81 | 100,112 | 1.21 | 1.26 | 4.99 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 3.96 | 0.17 | (0.23 | ) | (0.06 | ) | (0.17 | ) | – | (0.17 | ) | 3.73 | (1.75 | ) | 111,816 | 1.26 | 1.33 | 4.53 | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 2.88 | 0.08 | 0.21 | 0.29 | (0.07 | ) | – | (0.07 | ) | 3.10 | 10.07 | 103,581 | 0.79 | (g) | 0.80 | (g) | 5.19 | (g) | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 3.55 | 0.10 | (0.66 | ) | (0.56 | ) | – | (0.11 | ) | (0.11 | ) | 2.88 | (15.97 | ) | 103,794 | 0.84 | (h) | 0.86 | (h) | 3.13 | (h) | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 3.58 | 0.11 | (0.04 | ) | 0.07 | (0.04 | ) | (0.06 | ) | (0.10 | ) | 3.55 | 2.00 | 157,186 | 0.75 | 0.77 | 3.03 | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 3.75 | 0.11 | (0.16 | ) | (0.05 | ) | (0.05 | ) | (0.07 | ) | (0.12 | ) | 3.58 | (1.24 | ) | 201,675 | 0.74 | 0.75 | 2.94 | 273 | ||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 3.71 | 0.01 | 0.04 | 0.05 | (0.00 | ) | (0.01 | ) | (0.01 | ) | 3.75 | 1.40 | 335,775 | 0.72 | (g) | 0.77 | (g) | 4.03 | (g) | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 3.73 | 0.20 | (0.02 | ) | 0.18 | (0.13 | ) | (0.07 | ) | (0.20 | ) | 3.71 | 5.05 | 329,963 | 0.72 | 0.77 | 5.49 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 3.96 | 0.19 | (0.23 | ) | (0.04 | ) | (0.19 | ) | – | (0.19 | ) | 3.73 | (1.26 | ) | 371,434 | 0.76 | 0.83 | 5.03 | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 2.89 | 0.08 | 0.21 | 0.29 | (0.07 | ) | – | (0.07 | ) | 3.11 | 10.11 | 8 | 0.68 | (g) | 0.68 | (g) | 5.30 | (g) | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 3.56 | 0.11 | (0.66 | ) | (0.55 | ) | – | (0.12 | ) | (0.12 | ) | 2.89 | (15.81 | ) | 8 | 0.73 | (h) | 0.75 | (h) | 3.24 | (h) | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 3.59 | 0.12 | (0.04 | ) | 0.08 | (0.04 | ) | (0.07 | ) | (0.11 | ) | 3.56 | 2.14 | 10 | 0.61 | 0.62 | 3.17 | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 3.75 | 0.11 | (0.14 | ) | (0.03 | ) | (0.06 | ) | (0.07 | ) | (0.13 | ) | 3.59 | (0.81 | ) | 10 | 0.64 | 0.64 | 3.04 | 273 | ||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 3.72 | 0.01 | 0.03 | 0.04 | (0.00 | ) | (0.01 | ) | (0.01 | ) | 3.75 | 1.14 | 10 | 0.70 | (g) | 0.72 | (g) | 4.05 | (g) | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 09/30/19(i) | 3.69 | 0.07 | 0.02 | 0.09 | (0.04 | ) | (0.02 | ) | (0.06 | ) | 3.72 | 2.40 | 10 | 0.63 | (g) | 0.68 | (g) | 5.58 | (g) | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 2.87 | 0.08 | 0.21 | 0.29 | (0.07 | ) | – | (0.07 | ) | 3.09 | 10.16 | 10,879 | 0.68 | (g) | 0.68 | (g) | 5.30 | (g) | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 3.54 | 0.11 | (0.66 | ) | (0.55 | ) | – | (0.12 | ) | (0.12 | ) | 2.87 | (15.93 | ) | 10,447 | 0.73 | (h) | 0.75 | (h) | 3.24 | (h) | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 3.57 | 0.12 | (0.04 | ) | 0.08 | (0.05 | ) | (0.06 | ) | (0.11 | ) | 3.54 | 2.13 | 18,954 | 0.61 | 0.63 | 3.17 | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 3.73 | 0.11 | (0.15 | ) | (0.04 | ) | (0.05 | ) | (0.07 | ) | (0.12 | ) | 3.57 | (0.86 | ) | 20,939 | 0.63 | 0.63 | 3.05 | 273 | ||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 3.70 | 0.01 | 0.03 | 0.04 | (0.00 | ) | (0.01 | ) | (0.01 | ) | 3.73 | 1.14 | 36,634 | 0.57 | (g) | 0.62 | (g) | 4.18 | (g) | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 3.71 | 0.21 | (0.01 | ) | 0.20 | (0.14 | ) | (0.07 | ) | (0.21 | ) | 3.70 | 5.49 | 36,479 | 0.57 | 0.62 | 5.63 | 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 3.94 | 0.20 | (0.23 | ) | (0.03 | ) | (0.20 | ) | – | (0.20 | ) | 3.71 | (1.15 | ) | 41,461 | 0.61 | 0.68 | 5.18 | 67 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include indirect expenses from affiliated fund fees and expenses of 0.04%, 0.04% and 0.01% for the one month ended October 31, 2019 and the years ended September 30, 2019 and 2018, respectively. |
(d) | The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities of $364,949,527 and $405,130,315, $5,760,311,794 and $5,754,174,138 and $6,366,360,171 and $6,415,700,475 for the one month ended October 31, 2019 and the years ended September 30, 2019 and 2018, respectively. |
(e) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(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 the six months ended April 30, 2023 and the years ended ended October 31, 2022, 2021 and 2020. |
(g) | Annualized. |
(h) | Includes Interest, facilities and maintenance fees of 0.08% for the year ended October 31, 2022. |
(i) | Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
35 | Invesco Global Strategic Income Fund |
Notes to Consolidated Financial Statements
April 30, 2023
(Unaudited)
NOTE 1—Significant Accounting Policies
Invesco Global Strategic Income Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco Global Strategic Income Fund (Cayman) Ltd. (the “Subsidiary”), a wholly-owned and controlled subsidiary by the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to Regulation S securities primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in Regulation S securities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the
36 | Invesco Global Strategic Income Fund |
inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Purchased on a When-Issued and Delayed Delivery Basis – The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
37 | Invesco Global Strategic Income Fund |
J. | Treasury Inflation-Protected Securities – The Fund may invest in Treasury Inflation-Protected Securities (“TIPS”). TIPS are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The principal value of TIPS will be adjusted upward or downward, and any increase or decrease in the principal amount of TIPS will be included as interest income in the Consolidated Statement of Operations, even though investors do not receive their principal until maturity. |
K. | 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.
L. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, there were no securities lending transactions with the Adviser. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations.
M. | 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.
N. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
O. | 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 or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s |
38 | Invesco Global Strategic Income Fund |
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.
P. | 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.
Q. | 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.
R. | Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of
39 | Invesco Global Strategic Income Fund |
the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of April 30, 2023, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
S. | Dollar Rolls and Forward Commitment Transactions - The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date. |
The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate.
Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement.
T. | LIBOR Transition Risk - The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates will no longer be published after June 2023. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that will replace LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Funds may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
U. | 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. |
V. | 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. |
W. | 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 |
40 | Invesco Global Strategic Income Fund |
securities are generally unsecured and are often subordinated to other creditors’ claims. Junk bonds are less liquid than investment grade debt securities and their prices tend to be more volatile.
The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.
The Fund may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the Fund may not be able to recover its investment in such issuer from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government. Additionally, from time to time, uncertainty regarding the status of negotiations in the U.S. Government to increase the statutory debt limit, commonly called the “debt ceiling”, could increase the risk that the U.S. Government may default on payments on certain U.S. Government securities, cause the credit rating of the U.S. Government to be downgraded, increase volatility in the stock and bond markets, result in higher interest rates, reduce prices of U.S. Treasury securities, and/or increase the costs of various kinds of debt. If a U.S. Government-sponsored entity is negatively impacted by legislative or regulatory action, is unable to meet its obligations, or its creditworthiness declines, the performance of a Fund that holds securities of that entity will be adversely impacted.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate* | |||
First $200 million | 0.750% | |||
Next $200 million | 0.720% | |||
Next $200 million | 0.690% | |||
Next $200 million | 0.660% | |||
Next $200 million | 0.600% | |||
Next $4 billion | 0.500% | |||
Next $5 billion | 0.480% | |||
Over $10 billion | 0.460% |
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.59%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a Sub-Advisory Agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least June 30, 2023, 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 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $25,351.
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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid
41 | Invesco Global Strategic Income Fund |
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, 2023, 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, 2023, IDI advised the Fund that IDI retained $24,553 in front-end sales commissions from the sale of Class A shares and $432 and $1,027 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | ||||||||||||||||
| ||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | $ | – | $ | 600,736,838 | $ | – | $ | 600,736,838 | ||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 546,440,350 | – | 546,440,350 | ||||||||||||
| ||||||||||||||||
Asset-Backed Securities | – | 149,496,631 | 9,818,120 | 159,314,751 | ||||||||||||
| ||||||||||||||||
U.S. Treasury Securities | – | 111,541,499 | – | 111,541,499 | ||||||||||||
| ||||||||||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | – | 40,043,338 | – | 40,043,338 | ||||||||||||
| ||||||||||||||||
Agency Credit Risk Transfer Notes | – | 31,680,031 | – | 31,680,031 | ||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | 20,136,373 | 515,742 | 41,101 | 20,693,216 | ||||||||||||
| ||||||||||||||||
Variable Rate Senior Loan Interests | – | 6,071,377 | – | 6,071,377 | ||||||||||||
| ||||||||||||||||
Preferred Stocks | – | 3,722,137 | 49,725 | 3,771,862 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 64,532,237 | 56,866,181 | – | 121,398,418 | ||||||||||||
| ||||||||||||||||
Options Purchased | – | 32,218,093 | – | 32,218,093 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 84,668,610 | 1,579,332,217 | 9,908,946 | 1,673,909,773 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 6,462,693 | – | – | 6,462,693 | ||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 34,345,382 | – | 34,345,382 | ||||||||||||
| ||||||||||||||||
Swap Agreements | – | 20,481,691 | – | 20,481,691 | ||||||||||||
| ||||||||||||||||
6,462,693 | 54,827,073 | – | 61,289,766 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | (2,182,457 | ) | – | – | (2,182,457 | ) | ||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (51,702,285 | ) | – | (51,702,285 | ) | ||||||||||
| ||||||||||||||||
Options Written | – | (74,990,012 | ) | – | (74,990,012 | ) | ||||||||||
| ||||||||||||||||
Swap Agreements | – | (8,797,356 | ) | – | (8,797,356 | ) | ||||||||||
| ||||||||||||||||
(2,182,457 | ) | (135,489,653 | ) | – | (137,672,110 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | 4,280,236 | (80,662,580 | ) | – | (76,382,344 | ) | ||||||||||
| ||||||||||||||||
Total Investments | $ | 88,948,846 | $ | 1,498,669,637 | $ | 9,908,946 | $ | 1,597,527,429 | ||||||||
|
* | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Options written are shown at value. |
NOTE 4–Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
42 | Invesco Global Strategic Income Fund |
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, 2023:
Value | ||||||||||||||||
Derivative Assets | Credit Risk | Currency Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | – | $ | – | $ | 6,462,693 | $ | 6,462,693 | ||||||||
| ||||||||||||||||
Unrealized appreciation on swap agreements – Centrally Cleared(a) | – | – | 19,837,734 | 19,837,734 | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | – | 34,345,382 | – | 34,345,382 | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on swap agreements – OTC | 643,957 | – | – | 643,957 | ||||||||||||
| ||||||||||||||||
Options purchased, at value – OTC(b) | – | 17,436,240 | 14,781,853 | 32,218,093 | ||||||||||||
| ||||||||||||||||
Total Derivative Assets | 643,957 | 51,781,622 | 41,082,280 | 93,507,859 | ||||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | – | – | (26,300,427 | ) | (26,300,427 | ) | ||||||||||
| ||||||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 643,957 | $ | 51,781,622 | $ | 14,781,853 | $ | 67,207,432 | ||||||||
| ||||||||||||||||
Value | ||||||||||||||||
Derivative Liabilities | Credit Risk | Currency Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized depreciation on futures contracts – Exchange-Traded(a) | $ | – | $ | – | $ | (2,182,457 | ) | $ | (2,182,457 | ) | ||||||
| ||||||||||||||||
Unrealized depreciation on swap agreements – Centrally Cleared(a) | (147,629 | ) | – | (8,375,190 | ) | (8,522,819 | ) | |||||||||
| ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | – | (51,702,285 | ) | – | (51,702,285 | ) | ||||||||||
| ||||||||||||||||
Unrealized depreciation on swap agreements – OTC | (274,537 | ) | – | – | (274,537 | ) | ||||||||||
| ||||||||||||||||
Options written, at value – OTC | (858,225 | ) | (12,142,753 | ) | (61,989,034 | ) | (74,990,012 | ) | ||||||||
| ||||||||||||||||
Total Derivative Liabilities | (1,280,391 | ) | (63,845,038 | ) | (72,546,681 | ) | (137,672,110 | ) | ||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | 147,629 | – | 10,557,647 | 10,705,276 | ||||||||||||
| ||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (1,132,762 | ) | $ | (63,845,038 | ) | $ | (61,989,034 | ) | $ | (126,966,834 | ) | ||||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
(b) | Options purchased, at value as reported in the Consolidated Schedule of Investments. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of April 30, 2023.
Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||
Financial Derivative Assets | Financial Derivative Liabilities | (Received)/Pledged | ||||||||||||||||||||||||||||||||||||||||||||||
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 | Net Amount | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Bank of America, N.A. | $ | 604,449 | $ | 4,523,696 | $ | – | $ | 5,128,145 | $ | (2,886,937 | ) | $ | (7,042,147 | ) | $ | – | $ | (9,929,084 | ) | $ | (4,800,939 | ) | $ – | $ | 4,570,000 | $ | (230,939 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Barclays Bank PLC | - | – | – | – | (70,180 | ) | (557,530 | ) | – | (627,710 | ) | (627,710 | ) | – | 627,710 | – | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
BNP Paribas S.A. | 211,916 | – | – | 211,916 | (713,929 | ) | – | – | (713,929 | ) | (502,013 | ) | – | 502,013 | – | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Citibank, N.A. | 3,451,474 | – | 11,274 | 3,462,748 | (811,946 | ) | – | (21,188 | ) | (833,134 | ) | 2,629,614 | – | (2,500,000 | ) | 129,614 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Deutsche Bank AG | 2,502,556 | – | – | 2,502,556 | (2,631,710 | ) | – | – | (2,631,710 | ) | (129,154 | ) | – | – | (129,154 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Goldman Sachs International | 4,783,783 | 8,887,873 | 147,286 | 13,818,942 | (9,181,801 | ) | (13,932,210 | ) | (258,124 | ) | (23,372,135 | ) | (9,553,193 | ) | – | 8,150,000 | (1,403,193 | ) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
HSBC Bank USA | 790,548 | – | – | 790,548 | (659,591 | ) | – | – | (659,591 | ) | 130,957 | (130,957 | ) | – | – | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 5,136,064 | 7,043,061 | 659,741 | 12,838,866 | (10,625,984 | ) | (19,488,716 | ) | (6,685 | ) | (30,121,385 | ) | (17,282,519 | ) | – | 17,282,519 | – | |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Morgan Stanley and Co. International PLC | 16,422,966 | 11,676,658 | – | 28,099,624 | (23,378,912 | ) | (33,969,409 | ) | – | (57,348,321 | ) | (29,248,697 | ) | – | 29,139,000 | (109,697 | ) | |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Royal Bank of Canada | 66,566 | – | – | 66,566 | (569,935 | ) | – | – | (569,935 | ) | (503,369 | ) | – | 270,000 | (233,369 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Standard Chartered Bank PLC | 375,060 | 86,805 | – | 461,865 | (7,636 | ) | – | – | (7,636 | ) | 454,229 | – | – | 454,229 | ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
UBS AG | - | – | – | – | (163,724 | ) | – | – | (163,724 | ) | (163,724 | ) | – | – | (163,724 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 34,345,382 | $ | 32,218,093 | $ | 818,301 | $ | 67,381,776 | $ | (51,702,285 | ) | $ | (74,990,012 | ) | $ | (285,997 | ) | $ | (126,978,294 | ) | $ | (59,596,518 | ) | $(130,957 | ) | $ | 58,041,242 | $ | (1,686,233 | ) | ||||||||||||||||||
|
43 | Invesco Global Strategic Income Fund |
Effect of Derivative Investments for the six months ended April 30, 2023
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 | Currency | Interest | ||||||||||||||
Risk | Risk | Rate Risk | Total | |||||||||||||
| ||||||||||||||||
Realized Gain (Loss): | ||||||||||||||||
Forward foreign currency contracts | $ | - | $ | (3,827,481 | ) | $ | - | $ | (3,827,481 | ) | ||||||
| ||||||||||||||||
Futures contracts | - | - | (3,970,146 | ) | (3,970,146 | ) | ||||||||||
| ||||||||||||||||
Options purchased(a) | - | 7,781,079 | 18,312,097 | 26,093,176 | ||||||||||||
| ||||||||||||||||
Options written | - | 8,736,898 | 10,449,470 | 19,186,368 | ||||||||||||
| ||||||||||||||||
Swap agreements | (1,899,410 | ) | - | (15,232,172 | ) | (17,131,582 | ) | |||||||||
| ||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||
Forward foreign currency contracts | - | (12,925,674 | ) | - | (12,925,674 | ) | ||||||||||
| ||||||||||||||||
Futures contracts | - | - | 7,393,035 | 7,393,035 | ||||||||||||
| ||||||||||||||||
Options purchased(a) | (991,611 | ) | (3,906,342 | ) | (33,998,572 | ) | (38,896,525 | ) | ||||||||
| ||||||||||||||||
Options written | 766,263 | 4,166,221 | 13,901,497 | 18,833,981 | ||||||||||||
| ||||||||||||||||
Swap agreements | 3,961,110 | - | 22,192,410 | 26,153,520 | ||||||||||||
| ||||||||||||||||
Total | $ | 1,836,352 | $ | 24,701 | $ | 19,047,619 | $ | 20,908,672 | ||||||||
|
(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.
Foreign | Foreign | |||||||||||||||||||||||||||
Forward | Currency | Currency | ||||||||||||||||||||||||||
Foreign Currency | Futures | Swaptions | Options | Swaptions | Options | Swap | ||||||||||||||||||||||
Contracts | Contracts | Purchased | Purchased | Written | Written | Agreements | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Average notional value | $ | 3,664,538,140 | $ | 639,107,939 | $ | 532,803,345 | $ | 830,353,007 | $ | 3,103,446,335 | $ | 881,952,329 | $ | 1,965,207,100 | ||||||||||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $52,204.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $ | 518,098,653 | $ | 369,447,314 | $ | 887,545,967 | ||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
44 | Invesco Global Strategic Income Fund |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $421,083,395 and $517,985,275, 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 | $ | 121,747,287 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (255,714,696 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (133,967,409 | ) | |
|
Cost of investments for tax purposes is $1,732,146,305.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 7,133,478 | $ | 21,894,092 | 13,995,663 | $ | 46,075,249 | ||||||||||
| ||||||||||||||||
Class C | 1,339,936 | 4,104,586 | 1,981,985 | 6,501,825 | ||||||||||||
| ||||||||||||||||
Class R | 1,258,479 | 3,845,889 | 2,169,448 | 7,151,175 | ||||||||||||
| ||||||||||||||||
Class Y | 9,244,500 | 28,391,452 | 18,495,604 | 63,481,249 | ||||||||||||
| ||||||||||||||||
Class R6 | 297,025 | 897,327 | 1,035,855 | 3,362,129 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 8,456,805 | 26,086,110 | 14,040,687 | 44,995,175 | ||||||||||||
| ||||||||||||||||
Class C | 257,677 | 792,661 | 431,954 | 1,381,234 | ||||||||||||
| ||||||||||||||||
Class R | 351,327 | 1,084,481 | 551,262 | 1,767,204 | ||||||||||||
| ||||||||||||||||
Class Y | 578,891 | 1,781,674 | 1,018,630 | 3,265,663 | ||||||||||||
| ||||||||||||||||
Class R6 | 64,441 | 197,797 | 134,665 | 433,369 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 1,321,170 | 4,056,947 | 3,023,398 | 9,784,129 | ||||||||||||
| ||||||||||||||||
Class C | (1,325,447 | ) | (4,056,947 | ) | (3,032,222 | ) | (9,784,129 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (39,377,356 | ) | (120,498,827 | ) | (97,664,404 | ) | (320,107,765 | ) | ||||||||
| ||||||||||||||||
Class C | (1,759,075 | ) | (5,388,091 | ) | (4,736,373 | ) | (15,537,428 | ) | ||||||||
| ||||||||||||||||
Class R | (1,488,955 | ) | (4,563,417 | ) | (4,586,861 | ) | (15,033,949 | ) | ||||||||
| ||||||||||||||||
Class Y | (12,480,085 | ) | (38,034,701 | ) | (27,744,639 | ) | (92,959,071 | ) | ||||||||
| ||||||||||||||||
Class R6 | (481,855 | ) | (1,463,836 | ) | (2,888,897 | ) | (9,097,693 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (26,609,044 | ) | $ | (80,872,803 | ) | (83,774,245 | ) | $ | (274,321,634 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 12% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
45 | Invesco Global Strategic 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class A | $1,000.00 | $1,095.60 | $5.35 | $1,019.69 | $5.16 | 1.03% | ||||||
Class C | 1,000.00 | 1,095.30 | 9.30 | 1,015.92 | 8.95 | 1.79 | ||||||
Class R | 1,000.00 | 1,097.70 | 6.71 | 1,018.40 | 6.46 | 1.29 | ||||||
Class Y | 1,000.00 | 1,100.70 | 4.11 | 1,020.88 | 3.96 | 0.79 | ||||||
Class R5 | 1,000.00 | 1,101.10 | 3.54 | 1,021.42 | 3.41 | 0.68 | ||||||
Class R6 | 1,000.00 | 1,101.60 | 3.54 | 1,021.42 | 3.41 | 0.68 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
46 | Invesco Global Strategic Income 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 Invesco Distributors, Inc. O-GLSI-SAR-1
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Greater China Fund
Nasdaq:
A: AACFX ∎ C: CACFX ∎ R: IGCRX ∎ Y: AMCYX ∎ R5: IACFX ∎ R6: CACSX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
7 | Financial Statements | |
10 | Financial Highlights | |
11 | Notes to Financial Statements | |
17 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary | ||||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 34.56 | % | ||
Class C Shares | 34.18 | |||
Class R Shares | 34.37 | |||
Class Y Shares | 34.80 | |||
Class R5 Shares | 34.87 | |||
Class R6 Shares | 34.88 | |||
MSCI China Index▼ (Broad Market Index) | 35.51 | |||
MSCI China All Shares Index∎ (Style-Specific Index) | 27.35 | |||
Lipper China Region Funds Index¨ (Peer Group Index) | 25.63 | |||
Source(s): ▼RIMES Technologies Corp.; ∎ Bloomberg LP; ¨Lipper Inc. | ||||
The MSCI China Index is an unmanaged index considered representative of Chinese stocks. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The MSCI China All Shares Index is composed of large- and mid-cap stocks issued as China A-shares, B-shares, H-shares, Red-chips, P-chips and foreign listings. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Lipper 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 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 visiting invesco.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, visit blog.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 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (3/31/06) | 5.58 | % | ||
10 Years | 2.24 | |||
5 Years | -4.85 | |||
1 Year | -4.03 | |||
Class C Shares | ||||
Inception (3/31/06) | 5.56 | % | ||
10 Years | 2.21 | |||
5 Years | -4.48 | |||
1 Year | -0.22 | |||
Class R Shares | ||||
10 Years | 2.56 | % | ||
5 Years | -4.02 | |||
1 Year | 1.26 | |||
Class Y Shares | ||||
Inception (10/3/08) | 5.63 | % | ||
10 Years | 3.08 | |||
5 Years | -3.53 | |||
1 Year | 1.79 | |||
Class R5 Shares | ||||
Inception (3/31/06) | 6.40 | % | ||
10 Years | 3.25 | |||
5 Years | -3.41 | |||
1 Year | 1.97 | |||
Class R6 Shares | ||||
10 Years | 3.08 | % | ||
5 Years | -3.38 | |||
1 Year | 1.99 |
Performance includes litigation proceeds. Had these proceeds not been received, total returns would have been lower.
Class R shares incepted on April 23, 2021. Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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 Greater China Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Greater China Fund |
April 30, 2023
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–95.98%(b) |
| |||||||
Apparel Retail–1.27% |
| |||||||
Pou Sheng International (Holdings) Ltd. (Hong Kong) | 11,922,000 | $ | 1,001,730 | |||||
| ||||||||
Apparel, Accessories & Luxury Goods–2.60% |
| |||||||
Shenzhou International Group Holdings Ltd. | 212,800 | 2,041,878 | ||||||
| ||||||||
Automobile Manufacturers–0.32% |
| |||||||
Jiangling Motors Corp. Ltd., B Shares | 311,100 | 253,775 | ||||||
| ||||||||
Biotechnology–2.73% |
| |||||||
Innovent Biologics, Inc.(c)(d) | 447,500 | 2,141,903 | ||||||
| ||||||||
Broadline Retail–10.49% |
| |||||||
Alibaba Group Holding Ltd.(d) | 493,300 | 5,174,367 | ||||||
| ||||||||
Alibaba Group Holding Ltd., ADR(d) | 8,977 | 760,262 | ||||||
| ||||||||
JD.com, Inc., A Shares | 129,650 | 2,303,028 | ||||||
| ||||||||
8,237,657 | ||||||||
| ||||||||
Construction Materials–1.17% | ||||||||
Asia Cement China Holdings Corp. | 2,090,500 | 915,937 | ||||||
| ||||||||
Consumer Staples Merchandise Retail–2.85% |
| |||||||
Sun Art Retail Group Ltd. | 5,139,500 | 2,234,484 | ||||||
| ||||||||
Diversified Banks–12.66% | ||||||||
Bank of China Ltd., H Shares | 9,618,000 | 3,843,459 | ||||||
| ||||||||
China Construction Bank Corp., H Shares | 3,733,000 | 2,504,461 | ||||||
| ||||||||
China Merchants Bank Co. Ltd., A Shares | 564,132 | 2,749,231 | ||||||
| ||||||||
China Merchants Bank Co. Ltd., H Shares | 175,000 | 841,833 | ||||||
| ||||||||
9,938,984 | ||||||||
| ||||||||
Electronic Components–0.90% |
| |||||||
Sunny Optical Technology Group Co. Ltd. | 66,700 | 706,286 | ||||||
| ||||||||
Electronic Manufacturing Services–0.57% |
| |||||||
FIH Mobile Ltd.(d) | 4,268,000 | 447,412 | ||||||
| ||||||||
Footwear–1.95% |
| |||||||
Stella International Holdings Ltd. | 1,472,000 | 1,533,140 | ||||||
| ||||||||
Gas Utilities–2.19% |
| |||||||
Towngas Smart Energy Co. Ltd. | 3,715,564 | 1,717,736 | ||||||
| ||||||||
Gold–2.45% |
| |||||||
Zijin Mining Group Co. Ltd., H Shares | 1,146,000 | 1,924,900 | ||||||
| ||||||||
Health Care Equipment–2.19% |
| |||||||
MicroPort CardioFlow Medtech | 4,645 | 1,376 | ||||||
| ||||||||
MicroPort NeuroTech Ltd.(d) | 286 | 485 | ||||||
| ||||||||
MicroPort Scientific Corp.(d) | 772,400 | 1,714,024 | ||||||
| ||||||||
Shanghai MicroPort MedBot Group Co. Ltd.(d) | 352 | 1,035 | ||||||
| ||||||||
1,716,920 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Health Care Supplies–1.09% |
| |||||||
Shandong Weigao Group Medical Polymer Co. Ltd., H Shares | 501,200 | $ | 854,638 | |||||
| ||||||||
Home Furnishings–3.92% |
| |||||||
Suofeiya Home Collection Co Ltd., A Shares | 1,124,500 | 3,074,697 | ||||||
| ||||||||
Hotels, Resorts & Cruise Lines–1.00% |
| |||||||
Shanghai Jinjiang International Hotels Co. Ltd., B Shares | 381,578 | 786,345 | ||||||
| ||||||||
Household Products–3.57% |
| |||||||
Vinda International Holdings Ltd. | 1,074,000 | 2,804,530 | ||||||
| ||||||||
Interactive Media & Services–15.11% |
| |||||||
Baidu, Inc., A Shares(d) | 178,050 | 2,679,091 | ||||||
| ||||||||
Baidu, Inc., ADR(d) | 6,299 | 759,722 | ||||||
| ||||||||
Tencent Holdings Ltd. | 165,300 | 7,312,415 | ||||||
| ||||||||
Weibo Corp., ADR(d) | 63,358 | 1,109,398 | ||||||
| ||||||||
11,860,626 | ||||||||
| ||||||||
Life & Health Insurance–2.87% |
| |||||||
AIA Group Ltd. (Hong Kong) | 206,800 | 2,256,433 | ||||||
| ||||||||
Packaged Foods & Meats–8.20% |
| |||||||
Tingyi Cayman Islands Holding Corp. | 1,870,000 | 3,266,629 | ||||||
| ||||||||
Uni-President China Holdings Ltd. | 3,176,000 | 3,169,570 | ||||||
| ||||||||
6,436,199 | ||||||||
| ||||||||
Pharmaceuticals–3.12% | ||||||||
China Animal Healthcare Ltd.(e) | 349,000 | 0 | ||||||
| ||||||||
Jiangsu Hengrui Pharmaceuticals Co. Ltd., A Shares | 312,360 | 2,196,550 | ||||||
| ||||||||
Shanghai Fudan-Zhangjiang Bio- Pharmaceutical Co. Ltd., H Shares | 615,000 | 250,188 | ||||||
| ||||||||
2,446,738 | ||||||||
| ||||||||
Restaurants–8.41% |
| |||||||
Ajisen (China) Holdings Ltd. (Hong Kong) | 3,929,000 | 492,497 | ||||||
| ||||||||
Gourmet Master Co. Ltd. (Taiwan) | 537,000 | 2,724,144 | ||||||
| ||||||||
Meituan, B Shares(c)(d) | 198,520 | 3,387,996 | ||||||
| ||||||||
6,604,637 | ||||||||
| ||||||||
Steel–4.35% |
| |||||||
Baoshan Iron & Steel Co. Ltd., A Shares | 3,667,681 | 3,412,900 | ||||||
| ||||||||
Total Common Stocks & Other Equity Interests (Cost $83,738,634) |
| 75,350,485 | ||||||
| ||||||||
Money Market Funds–3.99% |
| |||||||
Invesco Government & Agency Portfolio, Institutional Class, | 1,094,804 | 1,094,804 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(f)(g) | 781,860 | 782,094 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(f)(g) | 1,251,205 | 1,251,205 | ||||||
| ||||||||
Total Money Market Funds (Cost $3,128,027) |
| 3,128,103 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–99.97% (Cost $86,866,661) |
| 78,478,588 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–0.03% |
| 24,105 | ||||||
| ||||||||
NET ASSETS–100.00% | $ | 78,502,693 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Greater China Fund |
Investment Abbreviations:
ADR – American Depositary Receipt
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) | 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, 2023 was $5,531,275, which represented 7.05% of the Fund’s Net Assets. |
(d) | Non-income producing security. |
(e) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(f) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ - | $ | 13,703,910 | $ | (12,609,106 | ) | $ - | $ | - | $ | 1,094,804 | $ 16,746 | ||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 31,663 | 9,788,507 | (9,038,101 | ) | 57 | (32) | 782,094 | 12,373 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | - | 15,661,611 | (14,410,406 | ) | - | - | 1,251,205 | 19,120 | ||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 760,848 | 6,142,671 | (6,903,519 | ) | - | - | - | 8,712* | ||||||||||||||||||||
Invesco Private Prime Fund | 1,956,079 | 13,103,039 | (15,059,275 | ) | (12) | 169 | - | 24,384* | ||||||||||||||||||||
Total | $2,748,590 | $ | 58,399,738 | $ | (58,020,407 | ) | $ 45 | $ | 137 | $ | 3,128,103 | $ 81,335 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(g) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2023
Consumer Discretionary | 29.98 | % | |||
Financials | 15.53 | ||||
Communication Services | 15.11 | ||||
Consumer Staples | 14.62 | ||||
Health Care | 9.12 | ||||
Materials | 7.97 | ||||
Utilities | 2.19 | ||||
Information Technology | 1.47 | ||||
Money Market Funds Plus Other Assets Less Liabilities | 4.01 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Greater China Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: |
| |||
Investments in unaffiliated securities, at value | $ | 75,350,485 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $3,128,027) | 3,128,103 | |||
| ||||
Foreign currencies, at value (Cost $38,517) | 38,518 | |||
| ||||
Receivable for: |
| |||
Fund shares sold | 6,110 | |||
| ||||
Dividends | 22,641 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 47,559 | |||
| ||||
Other assets | 180,570 | |||
| ||||
Total assets | 78,773,986 | |||
| ||||
Liabilities: |
| |||
Payable for: |
| |||
Fund shares reacquired | 57,899 | |||
| ||||
Amount due custodian | 69 | |||
| ||||
Accrued fees to affiliates | 58,943 | |||
| ||||
Accrued other operating expenses | 59,942 | |||
| ||||
Trustee deferred compensation and retirement plans | 94,440 | |||
| ||||
Total liabilities | 271,293 | |||
| ||||
Net assets applicable to shares outstanding | $ | 78,502,693 | ||
| ||||
Net assets consist of: |
| |||
Shares of beneficial interest | $ | 98,546,798 | ||
| ||||
Distributable earnings (loss) | (20,044,105 | ) | ||
| ||||
$ | 78,502,693 | |||
|
Net Assets: |
| |||
Class A | $ | 68,823,385 | ||
| ||||
Class C | $ | 2,773,830 | ||
| ||||
Class R | $ | 612,761 | ||
| ||||
Class Y | $ | 5,778,314 | ||
| ||||
Class R5 | $ | 7,662 | ||
| ||||
Class R6 | $ | 506,741 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 3,536,259 | |||
| ||||
Class C | 149,202 | |||
| ||||
Class R | 31,545 | |||
| ||||
Class Y | 296,482 | |||
| ||||
Class R5 | 393 | |||
| ||||
Class R6 | 25,985 | |||
| ||||
Class A: |
| |||
Net asset value per share | $ | 19.46 | ||
| ||||
Maximum offering price per share | $ | 20.59 | ||
| ||||
Class C: |
| |||
Net asset value and offering price per share | $ | 18.59 | ||
| ||||
Class R: |
| |||
Net asset value and offering price per share | $ | 19.42 | ||
| ||||
Class Y: |
| |||
Net asset value and offering price per share | $ | 19.49 | ||
| ||||
Class R5: |
| |||
Net asset value and offering price per share | $ | 19.50 | ||
| ||||
Class R6: |
| |||
Net asset value and offering price per share | $ | 19.50 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Greater China Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $13,526) | $ | 339,070 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $1,485) | 49,724 | |||
| ||||
Total investment income | 388,794 | |||
| ||||
Expenses: | ||||
Advisory fees | 360,176 | |||
| ||||
Administrative services fees | 5,406 | |||
| ||||
Custodian fees | 4,676 | |||
| ||||
Distribution fees: | ||||
Class A | 89,942 | |||
| ||||
Class C | 12,831 | |||
| ||||
Class R | 1,349 | |||
| ||||
Transfer agent fees – A, C, R and Y | 85,452 | |||
| ||||
Transfer agent fees – R5 | 2 | |||
| ||||
Transfer agent fees – R6 | 62 | |||
| ||||
Trustees’ and officers’ fees and benefits | 8,091 | |||
| ||||
Registration and filing fees | 41,268 | |||
| ||||
Reports to shareholders | 11,901 | |||
| ||||
Professional services fees | 31,882 | |||
| ||||
Other | 7,403 | |||
| ||||
Total expenses | 660,441 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (4,081 | ) | ||
| ||||
Net expenses | 656,360 | |||
| ||||
Net investment income (loss) | (267,566 | ) | ||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (661,074 | ) | ||
| ||||
Affiliated investment securities | 137 | |||
| ||||
Foreign currencies | (18,298 | ) | ||
| ||||
(679,235 | ) | |||
| ||||
Change in net unrealized appreciation of: | ||||
Unaffiliated investment securities | 21,936,005 | |||
| ||||
Affiliated investment securities | 45 | |||
| ||||
Foreign currencies | 11 | |||
| ||||
21,936,061 | ||||
| ||||
Net realized and unrealized gain | 21,256,826 | |||
| ||||
Net increase in net assets resulting from operations | $ | 20,989,260 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Greater China Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (267,566) | $ | 1,065,274 | ||||
| ||||||||
Net realized gain (loss) | (679,235 | ) | (9,953,034 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 21,936,061 | (39,887,385 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 20,989,260 | (48,775,145 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (1,147,256 | ) | (65,397 | ) | ||||
| ||||||||
Class C | (22,293 | ) | – | |||||
| ||||||||
Class R | (6,683 | ) | – | |||||
| ||||||||
Class Y | (117,984 | ) | (30,560 | ) | ||||
| ||||||||
Class R5 | (151 | ) | (71 | ) | ||||
| ||||||||
Class R6 | (8,833 | ) | (4,044 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (1,303,200 | ) | (100,072 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (4,046,499 | ) | (12,713,278 | ) | ||||
| ||||||||
Class C | (22,583 | ) | (552,038 | ) | ||||
| ||||||||
Class R | 132,707 | (52,658 | ) | |||||
| ||||||||
Class Y | (216,558 | ) | (1,661,147 | ) | ||||
| ||||||||
Class R5 | – | (5,106 | ) | |||||
| ||||||||
Class R6 | 74,033 | (365,504 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (4,078,900 | ) | (15,349,731 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | 15,607,160 | (64,224,948 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 62,895,533 | 127,120,481 | ||||||
| ||||||||
End of period | $ | 78,502,693 | $ | 62,895,533 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Greater China Fund |
(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 04/30/23 | $14.70 | $(0.06 | )(d) | $ 5.13 | $ 5.07 | $(0.31 | ) | $ – | $(0.31 | ) | $19.46 | 34.56 | % | $68,823 | 1.59 | %(e) | 1.59 | %(e) | (0.65 | )%(d)(e) | 34 | % | ||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 25.26 | 0.23 | (d) | (10.77 | ) | (10.54 | ) | (0.02 | ) | – | (0.02 | ) | 14.70 | (41.77 | ) | 55,282 | 1.55 | 1.60 | 1.10 | (d) | 114 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 29.41 | 0.07 | (4.06 | ) | (3.99 | ) | – | (0.16 | ) | (0.16 | ) | 25.26 | (13.66 | ) | 110,423 | 1.52 | 1.52 | 0.23 | 101 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 23.24 | 0.00 | (d) | 6.42 | 6.42 | (0.25 | ) | – | (0.25 | ) | 29.41 | 27.92 | 68,875 | 1.66 | 1.67 | 0.02 | (d) | 59 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 25.52 | 0.20 | (d) | 1.77 | 1.97 | (0.21 | ) | (4.04 | ) | (4.25 | ) | 23.24 | 9.33 | 62,869 | 1.76 | 1.76 | 0.86 | (d) | 59 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 29.40 | 0.34 | (d) | (4.06 | )(f) | (3.72 | ) | (0.16 | ) | – | (0.16 | ) | 25.52 | (12.71 | )(f) | 59,615 | 1.79 | 1.80 | 1.15 | (d) | 45 | |||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 13.97 | (0.12 | )(d) | 4.89 | 4.77 | (0.15 | ) | – | (0.15 | ) | 18.59 | 34.18 | 2,774 | 2.26 | (e) | 2.26 | (e) | (1.32 | )(d)(e) | 34 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 24.17 | 0.07 | (d) | (10.27 | ) | (10.20 | ) | – | – | – | 13.97 | (42.20 | ) | 2,110 | 2.30 | 2.35 | 0.35 | (d) | 114 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 28.37 | (0.15 | ) | (3.89 | ) | (4.04 | ) | – | (0.16 | ) | (0.16 | ) | 24.17 | (14.33 | ) | 4,296 | 2.27 | 2.27 | (0.52 | ) | 101 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 22.35 | (0.18 | )(d) | 6.21 | 6.03 | (0.01 | ) | – | (0.01 | ) | 28.37 | 26.98 | 3,647 | 2.41 | 2.42 | (0.73 | )(d) | 59 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 24.65 | 0.02 | (d) | 1.72 | 1.74 | – | (4.04 | ) | (4.04 | ) | 22.35 | 8.51 | 5,198 | 2.51 | 2.51 | 0.11 | (d) | 59 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 28.45 | 0.11 | (d) | (3.91 | )(f) | (3.80 | ) | – | – | – | 24.65 | (13.36 | )(f) | 10,155 | 2.54 | 2.55 | 0.40 | (d) | 45 | |||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 14.65 | (0.09 | )(d) | 5.12 | 5.03 | (0.26 | ) | – | (0.26 | ) | 19.42 | 34.37 | 613 | 1.84 | (e) | 1.84 | (e) | (0.90 | )(d)(e) | 34 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 25.21 | 0.18 | (d) | (10.74 | ) | (10.56 | ) | – | – | – | 14.65 | (41.89 | ) | 366 | 1.80 | 1.85 | 0.85 | (d) | 114 | |||||||||||||||||||||||||||||||||||||
Period ended 10/31/21(g) | 32.59 | 0.01 | (7.39 | ) | (7.38 | ) | – | – | – | 25.21 | (22.65 | ) | 701 | 1.71 | (e) | 1.71 | (e) | 0.04 | (e) | 101 | ||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 14.74 | (0.04 | )(d) | 5.16 | 5.12 | (0.37 | ) | – | (0.37 | ) | 19.49 | 34.80 | 5,778 | 1.34 | (e) | 1.34 | (e) | (0.40 | )(d)(e) | 34 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 25.34 | 0.28 | (d) | (10.80 | ) | (10.52 | ) | (0.08 | ) | – | (0.08 | ) | 14.74 | (41.64 | ) | 4,805 | 1.30 | 1.35 | 1.35 | (d) | 114 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 29.44 | 0.14 | (4.08 | ) | (3.94 | ) | – | (0.16 | ) | (0.16 | ) | 25.34 | (13.47 | ) | 10,703 | 1.27 | 1.27 | 0.48 | 101 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 23.26 | 0.06 | (d) | 6.43 | 6.49 | (0.31 | ) | – | (0.31 | ) | 29.44 | 28.26 | 7,754 | 1.41 | 1.42 | 0.27 | (d) | 59 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 25.57 | 0.26 | (d) | 1.76 | 2.02 | (0.29 | ) | (4.04 | ) | (4.33 | ) | 23.26 | 9.56 | 9,339 | 1.51 | 1.51 | 1.11 | (d) | 59 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 29.44 | 0.42 | (d) | (4.07 | )(f) | (3.65 | ) | (0.22 | ) | – | (0.22 | ) | 25.57 | (12.48 | )(f) | 7,801 | 1.54 | 1.55 | 1.40 | (d) | 45 | |||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 14.75 | (0.03 | )(d) | 5.17 | 5.14 | (0.39 | ) | – | (0.39 | ) | 19.50 | 34.87 | 8 | 1.17 | (e) | 1.17 | (e) | (0.23 | )(d)(e) | 34 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 25.37 | 0.30 | (d) | (10.82 | ) | (10.52 | ) | (0.10 | ) | – | (0.10 | ) | 14.75 | (41.61 | ) | 6 | 1.24 | 1.24 | 1.41 | (d) | 114 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 29.45 | 0.18 | (4.10 | ) | (3.92 | ) | – | (0.16 | ) | (0.16 | ) | 25.37 | (13.40 | ) | 17 | 1.17 | 1.17 | 0.58 | 101 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 23.27 | 0.11 | (d) | 6.43 | 6.54 | (0.36 | ) | – | (0.36 | ) | 29.45 | 28.49 | 32 | 1.26 | 1.27 | 0.42 | (d) | 59 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 25.58 | 0.30 | (d) | 1.77 | 2.07 | (0.34 | ) | (4.04 | ) | (4.38 | ) | 23.27 | 9.79 | 23 | 1.33 | 1.33 | 1.29 | (d) | 59 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 29.46 | 0.46 | (d) | (4.08 | )(f) | (3.62 | ) | (0.26 | ) | – | (0.26 | ) | 25.58 | (12.38 | )(f) | 25 | 1.40 | 1.40 | 1.54 | (d) | 45 | |||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 14.76 | (0.02 | )(d) | 5.16 | 5.14 | (0.40 | ) | – | (0.40 | ) | 19.50 | 34.88 | 507 | 1.17 | (e) | 1.17 | (e) | (0.23 | )(d)(e) | 34 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 25.37 | 0.31 | (d) | (10.81 | ) | (10.50 | ) | (0.11 | ) | – | (0.11 | ) | 14.76 | (41.55 | ) | 326 | 1.18 | 1.18 | 1.47 | (d) | 114 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 29.43 | 0.18 | (4.08 | ) | (3.90 | ) | – | (0.16 | ) | (0.16 | ) | 25.37 | (13.34 | ) | 981 | 1.13 | 1.13 | 0.62 | 101 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 23.26 | 0.11 | (d) | 6.42 | 6.53 | (0.36 | ) | – | (0.36 | ) | 29.43 | 28.46 | 867 | 1.25 | 1.26 | 0.43 | (d) | 59 | ||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 25.57 | 0.30 | (d) | 1.77 | 2.07 | (0.34 | ) | (4.04 | ) | (4.38 | ) | 23.26 | 9.79 | 642 | 1.33 | 1.33 | 1.29 | (d) | 59 | |||||||||||||||||||||||||||||||||||||
Year ended 10/31/18 | 29.45 | 0.46 | (d) | (4.07 | )(f) | (3.61 | ) | (0.27 | ) | – | (0.27 | ) | 25.57 | (12.36 | )(f) | 629 | 1.40 | 1.40 | 1.54 | (d) | 45 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2021, the portfolio turnover calculation excludes the value of securities purchased of $64,937,627 in connection with the acquisition of Invesco Pacific Growth Fund into the Fund. |
(d) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the six months ended April 30, 2023. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $(0.16) and (1.18)%, $(0.22) and (1.85)%, $(0.19) and (1.43)%, $(0.14) and (0.93)%, $(0.13) and (0.76)% and $(0.12) and (0.76)% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the year ended October 31, 2022. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.23 and 1.09%, $0.06 and 0.34%, $0.17 and 0.84%, $0.28 and 1.34%, $0.30 and 1.40% and $0.31 and 1.46% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the year ended October 31, 2020. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $(0.05) and (0.17)%, $(0.23) and (0.92)%, $0.01 and 0.08%, $0.06 and 0.23% and $0.06 and 0.24% for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. 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, 2019. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $0.05 and 0.20%, $(0.13) and (0.55)%, $0.11 and 0.45%, $0.15 and 0.63% and $0.15 and 0.63% for Class A, Class C, Class Y, Class R5 and Class R6 shares, respectively. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the year ended October 31, 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. |
(e) | Annualized. |
(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 23, 2021. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Greater China Fund |
April 30, 2023
(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 six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.
11 | Invesco Greater China Fund |
Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment. |
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
12 | Invesco Greater China Fund |
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 exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
L. | Other Risks - Investing in a single-country mutual fund involves greater risk than investing in a more diversified fund due to lack of exposure to other countries. |
Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; difficulty in obtaining information necessary for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; limited legal remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts, either internal or with other countries; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole.
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region. Certain economies in the region may be adversely affected by increased competition, high inflation rates, undeveloped financial services sectors, currency fluctuations or restrictions, political and social instability and increased economic volatility. In addition, the risks of expropriation and/or nationalization of assets, confiscatory taxation, and armed conflict as a result of religious, ethnic, socio- economic and/or political unrest may adversely affect the value of the Fund’s Asia Pacific investments.
Certain securities issued by companies located or operating in Greater China, such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations, and operational, clearing and settlement risks. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events. The liquidity of Chinese securities may shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $1 billion | 0.870% | |||
| ||||
Next $ 1 billion | 0.820% | |||
| ||||
Next $ 49 billion | 0.770% | |||
| ||||
Over $51 billion | 0.760% | |||
|
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.87%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2023, 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 2.25%, 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, a 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. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at
13 | Invesco Greater China Fund |
any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these expenses limits.
The Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $1,646.
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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $3,807 in front-end sales commissions from the sale of Class A shares and $500 and $8 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Investments in Securities | ||||||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | $ | 2,629,382 | $ | 72,721,103 | $0 | $ | 75,350,485 | |||||||||
| ||||||||||||||||
Money Market Funds | 3,128,103 | – | – | 3,128,103 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 5,757,485 | $ | 72,721,103 | $0 | $ | 78,478,588 | |||||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $2,435.
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.
14 | Invesco Greater China Fund |
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||
| ||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||
| ||||||||||
Not subject to expiration | $ | 10,476,498 | $– | $ | 10,476,498 | |||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $27,028,100 and $36,386,338, 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 | $ | 6,903,767 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (15,386,979 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (8,483,212 | ) | |
|
Cost of investments for tax purposes is $86,961,800.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 815,934 | $ | 15,223,466 | 551,375 | $ | 11,191,105 | ||||||||||
| ||||||||||||||||
Class C | 10,909 | 214,480 | 56,736 | 1,128,081 | ||||||||||||
| ||||||||||||||||
Class R | 6,662 | 135,254 | 9,502 | 198,380 | ||||||||||||
| ||||||||||||||||
Class Y | 193,933 | 4,240,469 | 355,448 | 7,310,714 | ||||||||||||
| ||||||||||||||||
Class R5 | - | - | 1,070 | 22,421 | ||||||||||||
| ||||||||||||||||
Class R6 | 7,196 | 138,865 | 8,289 | 172,430 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 53,343 | 1,017,779 | 2,464 | 57,624 | ||||||||||||
| ||||||||||||||||
Class C | 1,174 | 21,445 | - | - | ||||||||||||
| ||||||||||||||||
Class R | 351 | 6,683 | - | - | ||||||||||||
| ||||||||||||||||
Class Y | 5,452 | 104,082 | 1,118 | 26,181 | ||||||||||||
| ||||||||||||||||
Class R5 | - | - | 1 | 31 | ||||||||||||
| ||||||||||||||||
Class R6 | 426 | 8,124 | 144 | 3,377 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 2,641 | 51,680 | 11,489 | 230,452 | ||||||||||||
| ||||||||||||||||
Class C | (2,765 | ) | (51,680 | ) | (12,039 | ) | (230,452 | ) | ||||||||
|
15 | Invesco Greater China Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (1,096,988 | ) | $ | (20,339,424 | ) | (1,176,210 | ) | $ | (24,192,459 | ) | ||||||
| ||||||||||||||||
Class C | (11,111 | ) | (206,828 | ) | (71,412 | ) | (1,449,667 | ) | ||||||||
| ||||||||||||||||
Class R | (487 | ) | (9,230 | ) | (12,296 | ) | (251,038 | ) | ||||||||
| ||||||||||||||||
Class Y | (228,769 | ) | (4,561,109 | ) | (453,053 | ) | (8,998,042 | ) | ||||||||
| ||||||||||||||||
Class R5 | - | - | (1,366 | ) | (27,558 | ) | ||||||||||
| ||||||||||||||||
Class R6 | (3,758 | ) | (72,956 | ) | (24,964 | ) | (541,311 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (245,857 | ) | $ | (4,078,900 | ) | (753,704 | ) | $ | (15,349,731 | ) | ||||||
|
(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. |
16 | 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | |||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | Annualized Ratio | |||||||
Class A | $1,000.00 | $1,345.60 | $9.25 | $1,016.91 | $7.95 | 1.59% | ||||||
Class C | 1,000.00 | 1,341.80 | 13.12 | 1,013.59 | 11.28 | 2.26 | ||||||
Class R | 1,000.00 | 1,343.70 | 10.69 | 1,015.67 | 9.20 | 1.84 | ||||||
Class Y | 1,000.00 | 1,348.00 | 7.80 | 1,018.15 | 6.71 | 1.34 | ||||||
Class R5 | 1,000.00 | 1,348.70 | 6.81 | 1,018.99 | 5.86 | 1.17 | ||||||
Class R6 | 1,000.00 | 1,348.80 | 6.81 | 1,018.99 | 5.86 | 1.17 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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 Greater China 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/ corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | CHI-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Health Care Fund
Nasdaq:
A: GGHCX ∎ C: GTHCX ∎ Y: GGHYX ∎ Investor: GTHIX ∎ R6: GGHSX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
8 | Financial Statements | |
11 | Financial Highlights | |
12 | Notes to Financial Statements | |
17 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
| ||||
Fund vs. Indexes | ||||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 3.75 | % | ||
Class C Shares | 3.35 | |||
Class Y Shares | 3.87 | |||
Investor Class Shares | 3.75 | |||
Class R6 Shares | 3.91 | |||
MSCI World Index▼ (Broad Market Index) | 12.26 | |||
S&P Composite 1500 Health Care Index▼ (Style-Specific Index) | 1.38 | |||
MSCI World Health Care Index▼ (Style-Specific Index) | 6.29 | |||
Source(s): ▼RIMES Technologies Corp. | ||||
The MSCI World IndexSM 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. The S&P Composite 1500® Health Care Index comprises those companies included in the S&P Composite 1500 that are classified as members of the GICS® Health Care sector. The MSCI 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. 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 visiting invesco.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, visit blog.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 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (8/7/89) | 10.02 | % | ||
10 Years | 7.88 | |||
5 Years | 7.60 | |||
1 Year | -1.12 | |||
Class C Shares | ||||
Inception (3/1/99) | 8.24 | % | ||
10 Years | 7.84 | |||
5 Years | 8.02 | |||
1 Year | 2.89 | |||
Class Y Shares | ||||
Inception (10/3/08) | 9.93 | % | ||
10 Years | 8.76 | |||
5 Years | 9.10 | |||
1 Year | 4.91 | |||
Investor Class Shares | ||||
Inception (7/15/05) | 8.16 | % | ||
10 Years | 8.49 | |||
5 Years | 8.82 | |||
1 Year | 4.67 | |||
Class R6 Shares | ||||
10 Years | 8.70 | % | ||
5 Years | 9.18 | |||
1 Year | 5.03 |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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 |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Health Care Fund |
April 30, 2023
(Unaudited)
Shares | Value | |||||||
| ||||||||
Common Stocks & Other Equity Interests–96.39% |
| |||||||
Biotechnology–18.09% | ||||||||
AbbVie, Inc. | 269,631 | $ | 40,746,637 | |||||
| ||||||||
Alnylam Pharmaceuticals, Inc.(b) | 32,335 | 6,441,132 | ||||||
| ||||||||
Apellis Pharmaceuticals, Inc.(b)(c) | 82,375 | 6,872,546 | ||||||
| ||||||||
Argenx SE, ADR (Netherlands)(b) | 28,146 | 10,917,270 | ||||||
| ||||||||
Ascendis Pharma A/S, ADR (Denmark)(b) | 31,986 | 2,237,741 | ||||||
| ||||||||
Biogen, Inc.(b) | 43,809 | 13,328,012 | ||||||
| ||||||||
BioMarin Pharmaceutical, Inc.(b) | 38,168 | 3,665,655 | ||||||
| ||||||||
CSL Ltd. (Australia) | 41,427 | 8,245,224 | ||||||
| ||||||||
Cytokinetics, Inc.(b)(c) | 87,863 | 3,286,076 | ||||||
| ||||||||
Deciphera Pharmaceuticals, Inc.(b) | 56,507 | 802,964 | ||||||
| ||||||||
Exact Sciences Corp.(b) | 67,429 | 4,320,176 | ||||||
| ||||||||
Genmab A/S, ADR (Denmark)(b) | 149,372 | 6,125,746 | ||||||
| ||||||||
Gilead Sciences, Inc. | 92,336 | 7,590,943 | ||||||
| ||||||||
Halozyme Therapeutics, Inc.(b) | 92,611 | 2,975,591 | ||||||
| ||||||||
Incyte Corp.(b) | 36,761 | 2,735,386 | ||||||
| ||||||||
IVERIC bio, Inc.(b)(c) | 152,730 | 5,023,290 | ||||||
| ||||||||
Karuna Therapeutics, Inc.(b) | 14,840 | 2,944,850 | ||||||
| ||||||||
Legend Biotech Corp., ADR(b)(c) | 108,784 | 7,474,549 | ||||||
| ||||||||
Madrigal Pharmaceuticals, Inc.(b)(c) | 10,885 | 3,396,120 | ||||||
| ||||||||
Natera, Inc.(b) | 77,165 | 3,913,809 | ||||||
| ||||||||
Regeneron Pharmaceuticals, Inc.(b) | 50,980 | 40,875,254 | ||||||
| ||||||||
Sarepta Therapeutics, Inc.(b)(c) | 30,503 | 3,744,853 | ||||||
| ||||||||
United Therapeutics Corp.(b) | 35,709 | 8,217,712 | ||||||
| ||||||||
Vaxcyte, Inc.(b) | 55,573 | 2,380,192 | ||||||
| ||||||||
Vertex Pharmaceuticals, Inc.(b) | 137,547 | 46,866,389 | ||||||
| ||||||||
245,128,117 | ||||||||
| ||||||||
Health Care Distributors–4.00% | ||||||||
AmerisourceBergen Corp. | 147,037 | 24,533,124 | ||||||
| ||||||||
McKesson Corp. | 81,458 | 29,670,262 | ||||||
| ||||||||
54,203,386 | ||||||||
| ||||||||
Health Care Equipment–21.55% | ||||||||
AtriCure, Inc.(b) | 43,487 | 1,912,993 | ||||||
| ||||||||
Axonics, Inc.(b) | 101,873 | 5,853,623 | ||||||
| ||||||||
Becton, Dickinson and Co. | 45,656 | 12,067,337 | ||||||
| ||||||||
Boston Scientific Corp.(b) | 1,014,057 | 52,852,651 | ||||||
| ||||||||
DexCom, Inc.(b) | 198,049 | 24,031,266 | ||||||
| ||||||||
GE HealthCare Technologies, Inc.(b) | 91,958 | 7,479,864 | ||||||
| ||||||||
IDEXX Laboratories, Inc.(b) | 46,792 | 23,029,151 | ||||||
| ||||||||
Inari Medical, Inc.(b) | 45,770 | 3,040,043 | ||||||
| ||||||||
Inspire Medical Systems, Inc.(b) | 48,458 | 12,968,814 | ||||||
| ||||||||
Insulet Corp.(b)(c) | 51,832 | 16,484,649 | ||||||
| ||||||||
Intuitive Surgical, Inc.(b) | 114,040 | 34,351,129 | ||||||
| ||||||||
iRhythm Technologies, Inc.(b) | 31,615 | 4,154,211 | ||||||
| ||||||||
Penumbra, Inc.(b)(c) | 27,955 | 7,942,575 | ||||||
| ||||||||
ResMed, Inc. | 55,313 | 13,328,220 | ||||||
| ||||||||
Shockwave Medical, Inc.(b) | 50,917 | 14,774,077 | ||||||
| ||||||||
Silk Road Medical, Inc.(b) | 96,224 | 4,235,780 | ||||||
| ||||||||
Stryker Corp. | 165,832 | 49,691,559 | ||||||
| ||||||||
TransMedics Group, Inc.(b)(c) | 48,380 | 3,826,858 | ||||||
| ||||||||
292,024,800 | ||||||||
|
Shares | Value | |||||||
| ||||||||
Health Care Facilities–4.87% | ||||||||
Acadia Healthcare Co., Inc.(b) | 100,337 | $ | 7,253,362 | |||||
| ||||||||
Encompass Health Corp. | 180,447 | 11,575,675 | ||||||
| ||||||||
HCA Healthcare, Inc. | 136,394 | 39,190,088 | ||||||
| ||||||||
Surgery Partners, Inc.(b) | 201,321 | 7,984,391 | ||||||
| ||||||||
66,003,516 | ||||||||
| ||||||||
Health Care Services–0.92% | ||||||||
Guardant Health, Inc.(b) | 56,433 | 1,273,128 | ||||||
| ||||||||
NeoGenomics, Inc.(b) | 45,232 | 661,292 | ||||||
| ||||||||
Option Care Health, Inc.(b) | 228,198 | 7,336,566 | ||||||
| ||||||||
Privia Health Group, Inc.(b) | 117,603 | 3,249,371 | ||||||
| ||||||||
12,520,357 | ||||||||
| ||||||||
Health Care Supplies–2.12% | ||||||||
Align Technology, Inc.(b) | 23,880 | 7,768,164 | ||||||
| ||||||||
Cooper Cos., Inc. (The) | 31,829 | 12,141,172 | ||||||
| ||||||||
Haemonetics Corp.(b) | 62,881 | 5,263,768 | ||||||
| ||||||||
Lantheus Holdings, Inc.(b)(c) | 42,164 | 3,602,914 | ||||||
| ||||||||
28,776,018 | ||||||||
| ||||||||
Health Care Technology–0.47% | ||||||||
Evolent Health, Inc., Class A(b) | 175,730 | 6,398,329 | ||||||
| ||||||||
Life Sciences Tools & Services–9.34% | ||||||||
10X Genomics, Inc., Class A(b)(c) | 112,238 | 5,884,638 | ||||||
| ||||||||
Agilent Technologies, Inc. | 151,030 | 20,453,993 | ||||||
| ||||||||
Bruker Corp. | 123,981 | 9,810,617 | ||||||
| ||||||||
Danaher Corp. | 61,051 | 14,463,592 | ||||||
| ||||||||
Lonza Group AG (Switzerland) | 4,757 | 2,960,685 | ||||||
| ||||||||
Maravai LifeSciences Holdings, Inc., | ||||||||
Class A(b)(c) | 153,142 | 2,111,828 | ||||||
| ||||||||
Medpace Holdings, Inc.(b)(c) | 14,812 | 2,964,474 | ||||||
| ||||||||
Mettler-Toledo International, Inc.(b) | 8,140 | 12,140,810 | ||||||
| ||||||||
Repligen Corp.(b)(c) | 42,415 | 6,431,386 | ||||||
| ||||||||
Thermo Fisher Scientific, Inc. | 58,749 | 32,599,820 | ||||||
| ||||||||
West Pharmaceutical Services, Inc. | 46,600 | 16,833,784 | ||||||
| ||||||||
126,655,627 | ||||||||
| ||||||||
Managed Health Care–11.27% | ||||||||
Elevance Health, Inc. | 18,899 | 8,857,016 | ||||||
| ||||||||
Humana, Inc. | 93,434 | 49,565,803 | ||||||
| ||||||||
Molina Healthcare, Inc.(b) | 15,513 | 4,621,168 | ||||||
| ||||||||
UnitedHealth Group, Inc. | 182,258 | 89,687,339 | ||||||
| ||||||||
152,731,326 | ||||||||
| ||||||||
Pharmaceuticals–23.76% | ||||||||
AstraZeneca PLC (United Kingdom) | 41,747 | 6,142,982 | ||||||
| ||||||||
AstraZeneca PLC, ADR (United Kingdom) | 635,427 | 46,525,965 | ||||||
| ||||||||
Axsome Therapeutics, Inc.(b)(c) | 30,104 | 2,153,339 | ||||||
| ||||||||
Eli Lilly and Co. | 231,619 | 91,688,697 | ||||||
| ||||||||
Intra-Cellular Therapies, Inc.(b) | 86,650 | 5,385,297 | ||||||
| ||||||||
Merck & Co., Inc. | 571,256 | 65,962,930 | ||||||
| ||||||||
Novo Nordisk A/S, Class B (Denmark) | 350,671 | 58,498,243 | ||||||
| ||||||||
Roche Holding AG | 11,461 | 3,592,311 | ||||||
| ||||||||
Sanofi, ADR | 257,069 | 13,791,752 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Health Care Fund |
Shares | Value | |||||||
Pharmaceuticals–(continued) | ||||||||
Zoetis, Inc. | 160,843 | $ | 28,272,983 | |||||
| ||||||||
322,014,499 | ||||||||
| ||||||||
Total Common Stocks & Other Equity Interests (Cost $925,954,461) |
| 1,306,455,975 | ||||||
| ||||||||
Money Market Funds–4.19% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e) | 19,638,986 | 19,638,986 | ||||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(d)(e) | 14,674,589 | 14,678,991 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(d)(e) | 22,444,555 | 22,444,555 | ||||||
| ||||||||
Total Money Market Funds |
| 56,762,532 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.58% |
| 1,363,218,507 | ||||||
|
Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–2.85% | ||||||||
Invesco Private Government Fund, 4.83%(d)(e)(f) | 10,817,107 | $ | 10,817,107 | |||||
| ||||||||
Invesco Private Prime Fund, 4.99%(d)(e)(f) | 27,815,418 | 27,815,418 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 38,632,525 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–103.43% |
| 1,401,851,032 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(3.43)% |
| (46,486,490 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 1,355,364,542 | ||||||
|
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2023. |
(d) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in (Depreciation) | Realized Gain | Value April 30, 2023 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 16,763,030 | $ | 66,242,481 | $ | (63,366,525 | ) | $ | - | $ | - | $ | 19,638,986 | $ | 286,592 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 12,624,352 | 47,316,057 | (45,261,803 | ) | (1,258 | ) | 1,643 | 14,678,991 | 225,646 | ||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 19,157,749 | 75,705,692 | (72,418,886 | ) | - | - | 22,444,555 | 327,342 | |||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 10,015,507 | 57,709,722 | (56,908,122 | ) | - | - | 10,817,107 | 162,372 | * | ||||||||||||||||||||||||||
Invesco Private Prime Fund | 27,798,816 | 137,793,567 | (137,777,675 | ) | (10 | ) | 720 | 27,815,418 | 447,672 | * | |||||||||||||||||||||||||
Total | $ | 86,359,454 | $ | 384,767,519 | $ | (375,733,011 | ) | $ | (1,268 | ) | $ | 2,363 | $ | 95,395,057 | $ | 1,449,624 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(e) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Health Care Fund |
Portfolio Composition
By industry, based on Net Assets
as of April 30, 2023
Pharmaceuticals | 23.76 | % | |||
Health Care Equipment | 21.55 | ||||
Biotechnology | 18.09 | ||||
Managed Health Care | 11.27 | ||||
Life Sciences Tools & Services | 9.34 | ||||
Health Care Facilities | 4.87 | ||||
Health Care Distributors | 4.00 | ||||
Health Care Supplies | 2.12 | ||||
Industry Type Each Less Than 1% of Net Assets | 1.39 | ||||
Money Market Funds Plus Other Assets Less Liabilities | 3.61 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Health Care Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 1,306,455,975 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $95,391,150) | 95,395,057 | |||
| ||||
Foreign currencies, at value (Cost $7,601) | 7,568 | |||
| ||||
Receivable for: | ||||
Investments sold | 1,403,627 | |||
| ||||
Fund shares sold | 64,271 | |||
| ||||
Dividends | 2,144,870 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 170,136 | |||
| ||||
Other assets | 68,445 | |||
| ||||
Total assets | 1,405,709,949 | |||
| ||||
Liabilities: | ||||
Payable for: | ||||
Investments purchased | 10,441,294 | |||
| ||||
Fund shares reacquired | 312,630 | |||
| ||||
Amount due custodian | 5,280 | |||
| ||||
Collateral upon return of securities loaned | 38,632,525 | |||
| ||||
Accrued fees to affiliates | 629,292 | |||
| ||||
Accrued other operating expenses | 96,753 | |||
| ||||
Trustee deferred compensation and retirement plans | 227,633 | |||
| ||||
Total liabilities | 50,345,407 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,355,364,542 | ||
| ||||
Net assets consist of: | ||||
Shares of beneficial interest | $ | 975,637,198 | ||
| ||||
Distributable earnings | 379,727,344 | |||
| ||||
$ | 1,355,364,542 | |||
|
Net Assets: | ||||
Class A | $ | 694,243,134 | ||
| ||||
Class C | $ | 18,860,287 | ||
| ||||
Class Y | $ | 52,418,703 | ||
| ||||
Investor Class | $ | 588,404,011 | ||
| ||||
Class R6 | $ | 1,438,407 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 19,607,198 | |||
| ||||
Class C | 1,037,480 | |||
| ||||
Class Y | 1,425,174 | |||
| ||||
Investor Class | 16,613,861 | |||
| ||||
Class R6 | 38,932 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 35.41 | ||
| ||||
Maximum offering price per share | $ | 37.47 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 18.18 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 36.78 | ||
| ||||
Investor Class: | ||||
Net asset value and offering price per share | $ | 35.42 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 36.95 | ||
|
* | At April 30, 2023, securities with an aggregate value of $38,271,546 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Health Care Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Dividends (net of foreign withholding taxes of $80,150) | $ | 6,446,657 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $26,111) | 865,691 | |||
| ||||
Total investment income | 7,312,348 | |||
| ||||
Expenses: | ||||
Advisory fees | 4,141,411 | |||
| ||||
Administrative services fees | 95,892 | |||
| ||||
Custodian fees | 547 | |||
| ||||
Distribution fees: | ||||
Class A | 847,597 | |||
| ||||
Class C | 96,313 | |||
| ||||
Investor Class | 717,099 | |||
| ||||
Transfer agent fees – A, C, Y and Investor | 822,451 | |||
| ||||
Transfer agent fees – R6 | 177 | |||
| ||||
Trustees’ and officers’ fees and benefits | 11,851 | |||
| ||||
Registration and filing fees | 55,493 | |||
| ||||
Reports to shareholders | 38,914 | |||
| ||||
Professional services fees | 37,897 | |||
| ||||
Other | 12,491 | |||
| ||||
Total expenses | 6,878,133 | |||
| ||||
Less: Fees waived and/or expense offset arrangement(s) | (43,233 | ) | ||
| ||||
Net expenses | 6,834,900 | |||
| ||||
Net investment income | 477,448 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | 27,440,125 | |||
| ||||
Affiliated investment securities | 2,363 | |||
| ||||
Foreign currencies | (72,142 | ) | ||
| ||||
27,370,346 | ||||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 20,765,947 | |||
| ||||
Affiliated investment securities | (1,268 | ) | ||
| ||||
Foreign currencies | 87,643 | |||
| ||||
20,852,322 | ||||
| ||||
Net realized and unrealized gain | 48,222,668 | |||
| ||||
Net increase in net assets resulting from operations | $ | 48,700,116 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Health Care Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, 2023 | October 31, 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 477,448 | $ | (2,206,504) | ||||
| ||||||||
Net realized gain (loss) | 27,370,346 | (27,612,730 | ) | |||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 20,852,322 | (219,616,690 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 48,700,116 | (249,435,924 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | – | (175,765,430 | ) | |||||
| ||||||||
Class C | – | (9,290,808 | ) | |||||
| ||||||||
Class Y | – | (11,596,963 | ) | |||||
| ||||||||
Investor Class | – | (146,619,587 | ) | |||||
| ||||||||
Class R6 | – | (399,985 | ) | |||||
| ||||||||
Total distributions from distributable earnings | – | (343,672,773 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (27,132,332 | ) | 104,833,962 | |||||
| ||||||||
Class C | (1,763,576 | ) | 4,224,192 | |||||
| ||||||||
Class Y | 4,546,280 | 5,704,868 | ||||||
| ||||||||
Investor Class | (20,940,877 | ) | 96,663,657 | |||||
| ||||||||
Class R6 | 115,412 | (232,412 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (45,175,093 | ) | 211,194,267 | |||||
| ||||||||
Net increase (decrease) in net assets | 3,525,023 | (381,914,430 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,351,839,519 | 1,733,753,949 | ||||||
| ||||||||
End of period | $ | 1,355,364,542 | $ | 1,351,839,519 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Health Care Fund |
(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 on securities | 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 04/30/23 | $34.13 | $ 0.01 | $ 1.27 | $ 1.28 | $ – | $ – | $ – | $35.41 | 3.75 | % | $694,243 | 1.05 | %(d) | 1.05 | %(d) | 0.06 | %(d) | 33 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 50.30 | (0.05 | ) | (6.19 | ) | (6.24 | ) | – | (9.93 | ) | (9.93 | ) | 34.13 | (14.73 | ) | 696,308 | 1.04 | 1.04 | (0.16 | ) | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 41.82 | (0.11 | ) | 11.49 | 11.38 | (0.01 | ) | (2.89 | ) | (2.90 | ) | 50.30 | 28.20 | 896,054 | 1.02 | 1.02 | (0.24 | ) | 78 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 38.59 | 0.03 | 4.67 | 4.70 | (0.10 | ) | (1.37 | ) | (1.47 | ) | 41.82 | 12.32 | 740,884 | 1.06 | 1.06 | 0.08 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 37.89 | 0.08 | 3.52 | 3.60 | – | (2.90 | ) | (2.90 | ) | 38.59 | 10.46 | 700,483 | 1.08 | 1.08 | 0.22 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 17.59 | (0.06 | ) | 0.65 | 0.59 | – | – | – | 18.18 | 3.35 | 18,860 | 1.80 | (d) | 1.80 | (d) | (0.69 | )(d) | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 31.06 | (0.17 | ) | (3.37 | ) | (3.54 | ) | – | (9.93 | ) | (9.93 | ) | 17.59 | (15.35 | ) | 20,023 | 1.79 | 1.79 | (0.91 | ) | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 26.99 | (0.29 | ) | 7.25 | 6.96 | – | (2.89 | ) | (2.89 | ) | 31.06 | 27.26 | 29,391 | 1.77 | 1.77 | (0.99 | ) | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 25.48 | (0.18 | ) | 3.06 | 2.88 | – | (1.37 | ) | (1.37 | ) | 26.99 | 11.46 | 27,720 | 1.81 | 1.81 | (0.67 | ) | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 26.20 | (0.13 | ) | 2.31 | 2.18 | – | (2.90 | ) | (2.90 | ) | 25.48 | 9.62 | 24,570 | 1.83 | 1.83 | (0.53 | ) | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 35.41 | 0.06 | 1.31 | 1.37 | – | – | – | 36.78 | 3.87 | 52,419 | 0.80 | (d) | 0.80 | (d) | 0.31 | (d) | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 51.69 | 0.04 | (6.39 | ) | (6.35 | ) | – | (9.93 | ) | (9.93 | ) | 35.41 | (14.51 | ) | 46,087 | 0.79 | 0.79 | 0.09 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 42.90 | 0.00 | 11.79 | 11.79 | (0.11 | ) | (2.89 | ) | (3.00 | ) | 51.69 | 28.52 | 60,527 | 0.77 | 0.77 | 0.01 | 78 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 39.54 | 0.14 | 4.79 | 4.93 | (0.20 | ) | (1.37 | ) | (1.57 | ) | 42.90 | 12.62 | 43,816 | 0.81 | 0.81 | 0.33 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 38.67 | 0.18 | 3.59 | 3.77 | – | (2.90 | ) | (2.90 | ) | 39.54 | 10.70 | 38,519 | 0.83 | 0.83 | 0.47 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor Class | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 34.14 | 0.01 | 1.27 | 1.28 | – | – | – | 35.42 | 3.75 | 588,404 | 1.05 | (d) | 1.05 | (d) | 0.06 | (d) | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 50.31 | (0.05 | ) | (6.19 | ) | (6.24 | ) | – | (9.93 | ) | (9.93 | ) | 34.14 | (14.73 | ) | 588,159 | 1.04 | 1.04 | (0.16 | ) | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 41.83 | (0.11 | ) | 11.49 | 11.38 | (0.01 | ) | (2.89 | ) | (2.90 | ) | 50.31 | 28.20 | 745,607 | 1.02 | 1.02 | (0.24 | ) | 78 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 38.60 | 0.03 | 4.67 | 4.70 | (0.10 | ) | (1.37 | ) | (1.47 | ) | 41.83 | 12.33 | 618,818 | 1.06 | 1.06 | 0.08 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 37.90 | 0.08 | 3.52 | 3.60 | – | (2.90 | ) | (2.90 | ) | 38.60 | 10.45 | 597,301 | 1.08 | 1.08 | 0.22 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 35.56 | 0.07 | 1.32 | 1.39 | – | – | – | 36.95 | 3.91 | 1,438 | 0.70 | (d) | 0.70 | (d) | 0.41 | (d) | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 51.82 | 0.07 | (6.40 | ) | (6.33 | ) | – | (9.93 | ) | (9.93 | ) | 35.56 | (14.42 | ) | 1,262 | 0.69 | 0.69 | 0.19 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 42.97 | 0.04 | 11.83 | 11.87 | (0.13 | ) | (2.89 | ) | (3.02 | ) | 51.82 | 28.66 | 2,174 | 0.69 | 0.69 | 0.09 | 78 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 39.61 | 0.16 | 4.79 | 4.95 | (0.22 | ) | (1.37 | ) | (1.59 | ) | 42.97 | 12.65 | 374 | 0.77 | 0.77 | 0.37 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 38.71 | 0.20 | 3.60 | 3.80 | – | (2.90 | ) | (2.90 | ) | 39.61 | 10.77 | 52 | 0.77 | 0.77 | 0.53 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
(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) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Health Care Fund |
April 30, 2023
(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. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used.
12 | Invesco Health Care Fund |
Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements.Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R6 are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, the Fund paid the Adviser $1,335 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
13 | Invesco Health Care Fund |
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 exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
L. | Other Risks - The Fund’s performance is vulnerable to factors affecting the health care 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 the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $ 350 million | 0.750 | % | ||
Next $350 million | 0.650 | % | ||
Next $1.3 billion | 0.550 | % | ||
Next $2 billion | 0.450 | % | ||
Next $2 billion | 0.400 | % | ||
Next $2 billion | 0.375 | % | ||
Over $8 billion | 0.350 | % |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.63%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2023, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class Y, Investor Class and Class R6 shares to 2.00%, 2.75%, 1.75%, 2.00% and 1.75% of the Fund’s 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. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits. Effective July 1, 2023, the fee waiver agreement has been extended for an indefinite period. Invesco may amend and/or terminate this expense limit at any time in its sole discretion and will inform the Board of Trustees of any such changes.
Further, the Adviser has contractually agreed, through at least June 30, 2025, 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, 2023, the Adviser waived advisory fees of $21,035.
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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
14 | 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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y, Investor Class and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.25% of the average daily net assets of Investor Class shares. The fees are accrued daily and paid monthly. Of the 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, 2023, expenses incurred under the Plan 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, 2023, IDI advised the Fund that IDI retained $27,249 in front-end sales commissions from the sale of Class A shares and $573 and $672 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the six months ended April 30, 2023, the Fund incurred $26,674 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - Prices are determined using quoted prices in an active market for identical assets.
Level 2 - Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | 1,227,016,530 | $ | 79,439,445 | $– | $ | 1,306,455,975 | |||||||||
Money Market Funds | 56,762,532 | 38,632,525 | – | 95,395,057 | ||||||||||||
Total Investments | $ | 1,283,779,062 | $ | 118,071,970 | $– | $ | 1,401,851,032 |
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $22,198.
NOTE 5–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
15 | Invesco Health Care Fund |
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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||
| ||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||
| ||||||||||
Not subject to expiration | $25,038,826 | $– | $ | 25,038,826 | ||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $422,656,132 and $460,716,377, 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 | $ | 390,376,982 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (13,294,641 | ) | ||
| ||||
Net unrealized appreciation of investments | $ | 377,082,341 | ||
|
Cost of investments for tax purposes is $1,024,768,691.
NOTE 9–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 413,065 | $ | 14,151,813 | 1,020,924 | $ | 37,178,045 | ||||||||||
| ||||||||||||||||
Class C | 102,625 | 1,809,230 | 241,467 | 4,562,878 | ||||||||||||
| ||||||||||||||||
Class Y | 352,233 | 12,618,395 | 292,440 | 10,821,049 | ||||||||||||
| ||||||||||||||||
Investor Class | 49,756 | 1,698,178 | 141,992 | 5,399,582 | ||||||||||||
| ||||||||||||||||
Class R6 | 12,000 | 418,392 | 9,899 | 373,272 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | – | – | 4,091,961 | 158,317,977 | ||||||||||||
| ||||||||||||||||
Class C | – | – | 440,490 | 8,840,630 | ||||||||||||
| ||||||||||||||||
Class Y | – | – | 233,867 | 9,366,384 | ||||||||||||
| ||||||||||||||||
Investor Class | – | – | 3,463,003 | 134,018,202 | ||||||||||||
| ||||||||||||||||
Class R6 | – | – | 7,307 | 293,596 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 50,874 | 1,737,044 | 73,766 | 2,605,013 | ||||||||||||
| ||||||||||||||||
Class C | (98,954 | ) | (1,737,044 | ) | (141,001 | ) | (2,605,013 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (1,255,670 | ) | (43,021,189 | ) | (2,601,958 | ) | (93,267,073 | ) | ||||||||
| ||||||||||||||||
Class C | (104,487 | ) | (1,835,762 | ) | (348,834 | ) | (6,574,303 | ) | ||||||||
| ||||||||||||||||
Class Y | (228,453 | ) | (8,072,115 | ) | (395,818 | ) | (14,482,565 | ) | ||||||||
| ||||||||||||||||
Investor Class | (662,225 | ) | (22,639,055 | ) | (1,199,075 | ) | (42,754,127 | ) | ||||||||
| ||||||||||||||||
Class R6 | (8,551 | ) | (302,980 | ) | (23,683 | ) | (899,280 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (1,377,787 | ) | $ | (45,175,093 | ) | 5,306,747 | $ | 211,194,267 | ||||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 7% 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. |
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, 2022 through April 30, 2023.
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 | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Ratio | |||||||||
Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,037.50 | $5.30 | $1,019.59 | $5.26 | 1.05% | ||||||
Class C | 1,000.00 | 1,033.50 | 9.08 | 1,015.87 | 9.00 | 1.80 | ||||||
Class Y | 1,000.00 | 1,038.70 | 4.04 | 1,020.83 | 4.01 | 0.80 | ||||||
Investor Class | 1,000.00 | 1,037.50 | 5.30 | 1,019.59 | 5.26 | 1.05 | ||||||
Class R6 | 1,000.00 | 1,039.10 | 3.54 | 1,021.32 | 3.51 | 0.70 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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 |
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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/ corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | GHC-SAR-1 |
| ||
Semiannual Report to Shareholders | April 30, 2023 | |
Invesco International Bond Fund | ||
Nasdaq: | ||
A: OIBAX ∎ C: OIBCX ∎ R: OIBNX ∎ Y: OIBYX ∎ R5: INBQX ∎ R6: OIBIX |
|
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary | ||
Fund vs. Indexes | ||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 11.40 | % | ||
Class C Shares | 11.04 | |||
Class R Shares | 11.03 | |||
Class Y Shares | 11.55 | |||
Class R5 Shares | 11.53 | |||
Class R6 Shares | 11.58 | |||
FTSE Non-U.S. Dollar World Government Bond Index▼ | 10.60 | |||
JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index▼ | 16.06 | |||
JP Morgan EMBI Global Diversified Index▼ | 10.54 | |||
Custom Invesco International Bond Index∎ | 12.25 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Invesco, RIMES Technologies Corp. | ||||
The Custom Invesco International Bond Index is composed of 50% FTSE Non-U.S. Dollar World Government Bond Index, 30% JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index and 20% JP Morgan EMBI Global Diversified Index. |
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The FTSE Non-U.S. Dollar World Government Bond Index is a broad benchmark providing exposure to the global sovereign fixed-income market, excluding the US. |
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The JP Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Index is a comprehensive global local emerging markets index comprising liquid, fixed-rate, domestic currency government bonds. |
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The JP 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. |
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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). |
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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. |
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For more information about your Fund
Read the most recent quarterly commentary from your Fund’s portfolio managers by visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
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2 | Invesco International Bond Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (6/15/95) | 5.39 | % | ||
10 Years | -0.93 | |||
5 Years | -3.26 | |||
1 Year | -3.81 | |||
Class C Shares | ||||
Inception (6/15/95) | 5.32 | % | ||
10 Years | -1.10 | |||
5 Years | -3.18 | |||
1 Year | -1.24 | |||
Class R Shares | ||||
Inception (3/1/01) | 4.65 | % | ||
10 Years | -0.77 | |||
5 Years | -2.69 | |||
1 Year | 0.23 | |||
Class Y Shares | ||||
Inception (9/27/04) | 3.68 | % | ||
10 Years | -0.27 | |||
5 Years | -2.22 | |||
1 Year | 0.75 | |||
Class R5 Shares | ||||
10 Years | -0.38 | % | ||
5 Years | -2.18 | |||
1 Year | 0.78 | |||
Class R6 Shares | ||||
Inception (1/27/12) | 0.77 | % | ||
10 Years | -0.12 | |||
5 Years | -2.07 | |||
1 Year | 0.81 |
Effective May 24, 2019, Class A, Class C, Class R, Class Y and Class I shares of the Oppenheimer International Bond Fund, (the predecessor fund), were reorganized into Class A, Class C, Class R, Class Y and Class R6 shares, respectively, of the Invesco Oppenheimer International Bond Fund. Note: The Fund was subsequently renamed the Invesco International Bond Fund (the Fund). Returns shown above, for periods ending on or prior to May 24, 2019, for Class A, Class C, Class R, Class Y and Class R6 shares are those for Class A, Class C, Class R, Class Y and Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares.
The performance data quoted represent past performance and cannot guarantee 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.
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.
3 | Invesco International Bond Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco International Bond Fund |
Consolidated Schedule of Investments
April 30, 2023
(Unaudited)
Principal Amount | Value | |||||||||
Non-U.S. Dollar Denominated Bonds & Notes–58.65%(a) | ||||||||||
Argentina–0.45% | ||||||||||
Argentina Treasury Bond BONCER, 1.50%, 03/25/2024 | ARS | 300,000,000 | $ 5,585,741 | |||||||
Argentine Bonos del Tesoro, 15.50%, 10/17/2026 | ARS | 135,000,000 | 121,040 | |||||||
Provincia de Buenos Aires, 78.02%, 04/12/2025(b) | ARS | 120,000,000 | 457,878 | |||||||
6,164,659 | ||||||||||
Australia–1.68% | ||||||||||
New South Wales Treasury Corp., 1.75%, 03/20/2034(b) | AUD | 25,850,000 | 13,459,356 | |||||||
Treasury Corp. of Victoria, 2.00%, 11/20/2037 | AUD | 20,000,000 | 9,672,478 | |||||||
23,131,834 | ||||||||||
Austria–0.91% | ||||||||||
Erste Group Bank AG, | ||||||||||
6.50%(b)(c)(d) | EUR | 6,000,000 | 6,286,571 | |||||||
4.25%(b)(c)(d) | EUR | 2,600,000 | 2,150,276 | |||||||
Republic of Austria Government Bond, 2.10%, 09/20/2117(b) | EUR | 5,125,000 | 4,126,461 | |||||||
12,563,308 | ||||||||||
Belgium–0.71% | ||||||||||
KBC Group N.V., | ||||||||||
4.25%(b)(c)(d) | EUR | 4,400,000 | 4,089,933 | |||||||
4.75%(b)(c)(d) | EUR | 5,400,000 | 5,597,483 | |||||||
9,687,416 | ||||||||||
Brazil–8.78% | ||||||||||
Brazil Notas do Tesouro Nacional, |
| |||||||||
Series B, 6.00%, 05/15/2055 | BRL | 28,000,000 | 23,139,530 | |||||||
Series F, 10.00%, 01/01/2027 | BRL | 500,000,000 | 95,217,117 | |||||||
Swiss Insured Brazil Power Finance S.a r.l., 9.85%, 07/16/2032(b) | BRL | 12,508,875 | 2,244,565 | |||||||
120,601,212 | ||||||||||
Colombia–4.85% | ||||||||||
Colombian TES, | ||||||||||
Series B, 7.75%, 09/18/2030 | COP | 175,000,000,000 | 30,271,876 | |||||||
Series B, 7.25%, 10/18/2034 | COP | 47,750,000,000 | 7,243,466 | |||||||
Series B, 9.25%, 05/28/2042 | COP | 16,250,000,000 | 2,742,080 | |||||||
Series B, 7.25%, 10/26/2050 | COP | 151,500,000,000 | 19,972,727 |
Principal Amount | Value | |||||||||
Colombia–(continued) | ||||||||||
Fideicomiso PA Concesion Ruta al Mar, 6.75%, 02/15/2044(b) | COP | 8,000,000,000 | $ 1,073,049 | |||||||
Fideicomiso PA Costera, Series B, 6.25%, 01/15/2034(b) | COP | 6,107,644,400 | 1,145,671 | |||||||
PA Autopista Rio Magdalena, 6.05%, 06/15/2036(b) | COP | 23,500,000,000 | 4,168,859 | |||||||
66,617,728 | ||||||||||
Egypt–0.35% | ||||||||||
Egypt Government International Bond, 4.75%, 04/16/2026(b) | EUR | 6,800,000 | 4,837,993 | |||||||
France–1.45% | ||||||||||
Accor S.A., 4.38%(b)(c)(d) | EUR | 2,500,000 | 2,683,128 | |||||||
French Republic Government Bond OAT, 0.00%, 05/25/2032(b) | EUR | 20,000,000 | 17,167,869 | |||||||
19,850,997 | ||||||||||
Germany–0.74% | ||||||||||
Bayer AG, 2.38%, 11/12/2079(b)(c) | EUR | 5,000,000 | 5,131,054 | |||||||
Deutsche Lufthansa AG, 4.38%, 08/12/2075(b)(c) | EUR | 5,000,000 | 4,985,973 | |||||||
10,117,027 | ||||||||||
Greece–2.88% | ||||||||||
Hellenic Republic Government Bond, | ||||||||||
3.88%, 06/15/2028(b) | EUR | 14,875,000 | 16,502,226 | |||||||
4.25%, 06/15/2033(b) | EUR | 20,500,000 | 22,762,063 | |||||||
Series GDP, 0.00%, 10/15/2042 | EUR | 107,000,000 | 353,710 | |||||||
39,617,999 | ||||||||||
India–5.64% | ||||||||||
India Government Bond, | ||||||||||
8.40%, 07/28/2024 | INR | 1,997,000,000 | 24,782,564 | |||||||
8.15%, 11/24/2026 | INR | 500,000,000 | 6,324,533 | |||||||
6.54%, 01/17/2032 | INR | 1,000,000,000 | 11,751,516 | |||||||
7.26%, 08/22/2032 | INR | 1,300,000,000 | 15,994,985 | |||||||
State of Gujarat India, 7.52%, 05/24/2027 | INR | 500,000,000 | 6,161,883 | |||||||
State of Maharashtra India, 7.99%, 10/28/2025 | INR | 500,000,000 | 6,193,679 | |||||||
State of Tamil Nadu India, 8.53%, 03/09/2026 | INR | 500,000,000 | 6,302,629 | |||||||
77,511,789 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 | Invesco International Bond Fund |
Principal Amount | Value | |||||||||
Indonesia–1.51% | ||||||||||
Indonesia Treasury Bond, | ||||||||||
Series FR95, 6.38%, 08/15/2028 | IDR | 200,000,000,000 | $ 13,696,660 | |||||||
Series FR96, 7.00%, 02/15/2033 | IDR | 100,000,000,000 | 7,049,864 | |||||||
20,746,524 | ||||||||||
Italy–0.78% | ||||||||||
Intesa Sanpaolo S.p.A., | EUR | 4,000,000 | 3,606,520 | |||||||
5.88%(b)(c)(d) | EUR | 2,400,000 | 2,385,725 | |||||||
6.38%(b)(c)(d) | EUR | 5,000,000 | 4,725,819 | |||||||
10,718,064 | ||||||||||
Ivory Coast–0.24% | ||||||||||
Ivory Coast Government International Bond, 4.88%, 01/30/2032(b) | EUR | 3,950,000 | 3,309,546 | |||||||
Japan–1.74% | ||||||||||
Japan Government Bond, | JPY | 2,405,700,000 | 15,646,686 | |||||||
Series 77, 1.60%, 12/20/2052 | JPY | 1,054,500,000 | 8,322,145 | |||||||
23,968,831 | ||||||||||
Mexico–4.23% | ||||||||||
Mexican Bonos, | MXN | 951,000,000 | 49,674,735 | |||||||
Series M 30, 8.50%, 11/18/2038 | MXN | 160,000,000 | 8,449,845 | |||||||
58,124,580 | ||||||||||
Netherlands–0.68% | ||||||||||
ABN AMRO Bank N.V., 4.38%(b)(c)(d) | EUR | 2,500,000 | 2,478,692 | |||||||
Cooperatieve Rabobank U.A., 3.25%(b)(c)(d) | EUR | 2,400,000 | 2,147,056 | |||||||
4.38%(b)(c)(d) | EUR | 5,000,000 | 4,693,346 | |||||||
9,319,094 | ||||||||||
Peru–3.60% | ||||||||||
Peru Government Bond, 6.15%, 08/12/2032 | PEN | 200,000,000 | 49,417,703 | |||||||
Poland–2.52% | ||||||||||
Republic of Poland Government Bond, Series 432, 1.75%, 04/25/2032 | PLN | 200,000,000 | 34,650,777 | |||||||
Romania–0.23% | ||||||||||
Romanian Government International Bond, 2.00%, 04/14/2033(b) | EUR | 4,106,000 | 3,149,880 |
Principal Amount | Value | |||||||||
South Africa–5.43% | ||||||||||
Republic of South Africa Government Bond, | ||||||||||
Series 2030, 8.00%, 01/31/2030 | ZAR | 400,000,000 | $ 19,594,916 | |||||||
Series 2032, 8.25%, 03/31/2032 | ZAR | 533,300,000 | 24,868,383 | |||||||
Series 2037, 8.50%, 01/31/2037 | ZAR | 700,000,000 | 30,108,515 | |||||||
74,571,814 | ||||||||||
Spain–5.41% | ||||||||||
Banco Bilbao Vizcaya Argentaria S.A., | EUR | 5,000,000 | 5,335,788 | |||||||
Banco Santander S.A., | EUR | 2,200,000 | 2,016,165 | |||||||
4.75%(b)(c)(d) | EUR | 2,200,000 | 2,036,404 | |||||||
4.13%(c)(d) | EUR | 2,000,000 | 1,652,862 | |||||||
CaixaBank S.A., | EUR | 5,000,000 | 5,419,345 | |||||||
5.25%(b)(c)(d) | EUR | 2,000,000 | 1,867,721 | |||||||
Repsol International Finance B.V., 3.75%(b)(c)(d) | EUR | 2,500,000 | 2,577,138 | |||||||
Spain Government Bond, 4.40%, 10/31/2023(b) | EUR | 44,000,000 | 48,779,418 | |||||||
Telefonica Europe B.V., | EUR | 5,000,000 | 4,689,909 | |||||||
74,374,750 | ||||||||||
Supranational–0.82% | ||||||||||
African Development Bank, 0.00%, 04/05/2046(e) | ZAR | 600,000,000 | 4,175,482 | |||||||
0.00%, 01/17/2050(e) | ZAR | 310,000,000 | 1,781,112 | |||||||
International Finance Corp., 0.00%, 03/23/2038(e) | MXN | 350,000,000 | 5,304,653 | |||||||
11,261,247 | ||||||||||
Sweden–0.11% | ||||||||||
Heimstaden Bostad AB, | EUR | 2,500,000 | 1,567,619 | |||||||
Thailand–1.10% | ||||||||||
Thailand Government Bond, 3.45%, 06/17/2043 | THB | 480,000,000 | 15,073,216 | |||||||
United Kingdom–1.81% | ||||||||||
Barclays PLC, 7.13%(c)(d) | GBP | 2,150,000 | 2,413,357 | |||||||
Gatwick Airport Finance PLC, 4.38%, 04/07/2026(b) | GBP | 5,400,000 | 6,294,068 | |||||||
HSBC Holdings PLC, 5.88%(c)(d) | GBP | 5,000,000 | 5,536,299 | |||||||
International Consolidated Airlines Group S.A., 1.50%, 07/04/2027(b) | EUR | 2,600,000 | 2,377,781 | |||||||
Lloyds Banking Group PLC, 8.50%(c)(d) | GBP | 3,275,000 | 3,900,931 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 | Invesco International Bond Fund |
Principal Amount | Value | |||||||||
United Kingdom–(continued) | ||||||||||
Nationwide Building Society, 5.75%(b)(c)(d) | GBP | 2,500,000 | $ 2,678,669 | |||||||
NatWest Group PLC, | GBP | 1,550,000 | 1,637,131 | |||||||
24,838,236 | ||||||||||
Total Non-U.S. Dollar Denominated Bonds & Notes |
| 805,793,843 | ||||||||
U.S. Dollar Denominated Bonds & Notes–13.86% | ||||||||||
Brazil–0.92% | ||||||||||
CSN Inova Ventures, 6.75%, 01/28/2028(b)(f) | $ | 475,000 | 452,044 | |||||||
CSN Resources S.A., 5.88%, 04/08/2032(b) | 1,500,000 | 1,235,763 | ||||||||
Sitios Latinoamerica S.A.B. de C.V., 5.38%, 04/04/2032(b) | 6,786,000 | 6,202,356 | ||||||||
Suzano Austria GmbH, 3.75%, 01/15/2031(f) | 2,500,000 | 2,125,092 | ||||||||
Vale Overseas Ltd., 6.88%, 11/10/2039 | 2,500,000 | 2,618,133 | ||||||||
12,633,388 | ||||||||||
Chile–0.86% | ||||||||||
AES Andes S.A., 6.35%, 10/07/2079(b)(c) | 2,500,000 | 2,324,483 | ||||||||
Mercury Chile Holdco LLC, 6.50%, 01/24/2027(b) | 10,000,000 | 9,423,000 | ||||||||
11,747,483 | ||||||||||
China–0.13% | ||||||||||
Prosus N.V., 4.99%, 01/19/2052(b) | 2,500,000 | 1,839,421 | ||||||||
Colombia–0.23% | ||||||||||
Colombia Government International Bond, 4.13%, 02/22/2042 | 5,000,000 | 3,124,299 | ||||||||
Denmark–0.17% | ||||||||||
Danske Bank A/S, 7.00%(b)(c)(d) | 2,500,000 | 2,342,513 | ||||||||
Dominican Republic–0.18% | ||||||||||
Dominican Republic International Bond, | 975,000 | 865,478 | ||||||||
4.88%, 09/23/2032(b) | 1,800,000 | 1,556,534 | ||||||||
2,422,012 | ||||||||||
Egypt–0.22% | ||||||||||
Egypt Government International Bond, | 2,000,000 | 1,128,104 | ||||||||
8.50%, 01/31/2047(b) | 3,550,000 | 1,883,594 | ||||||||
3,011,698 |
Principal Amount | Value | |||||
France–0.99% | ||||||
BNP Paribas S.A., | $ | 5,000,000 | $ 4,819,352 | |||
6.63%(b)(c)(d) | 2,000,000 | 1,913,300 | ||||
7.75%(b)(c)(d) | 2,500,000 | 2,393,750 | ||||
Societe Generale S.A., | 2,500,000 | 2,361,263 | ||||
9.38%(b)(c)(d) | 2,282,000 | 2,172,236 | ||||
13,659,901 | ||||||
Guatemala–0.27% | ||||||
CT Trust, 5.13%, 02/03/2032(b) | 2,817,000 | 2,326,693 | ||||
Guatemala Government Bond, 3.70%, 10/07/2033(b) | 1,600,000 | 1,341,336 | ||||
3,668,029 | ||||||
Hong Kong–0.33% | ||||||
Melco Resorts Finance Ltd., 4.88%, 06/06/2025(b) | 2,500,000 | 2,351,087 | ||||
5.75%, 07/21/2028(b)(f) | 2,500,000 | 2,181,250 | ||||
4,532,337 | ||||||
India–1.24% | ||||||
JSW Steel Ltd., 3.95%, 04/05/2027(b) | 6,000,000 | 5,279,264 | ||||
Network i2i Ltd., 5.65%(b)(c)(d) | 1,500,000 | 1,440,000 | ||||
3.98%(b)(c)(d) | 1,500,000 | 1,329,421 | ||||
Oil & Natural Gas Corp. Ltd., 3.38%, 12/05/2029(b) | 5,000,000 | 4,504,625 | ||||
Reliance Industries Ltd., 4.88%, 02/10/2045(b) | 5,000,000 | 4,517,236 | ||||
17,070,546 | ||||||
Indonesia–0.60% | ||||||
PT Freeport Indonesia, 6.20%, 04/14/2052(b) | 2,700,000 | 2,492,556 | ||||
PT Pertamina (Persero), 4.18%, 01/21/2050(b) | 2,500,000 | 1,964,130 | ||||
PT Perusahaan Perseroan (Persero) Perusahaan Listrik Negara, 4.38%, 02/05/2050(b) | 5,000,000 | 3,841,018 | ||||
8,297,704 | ||||||
Iraq–0.11% | ||||||
Iraq International Bond, 5.80%, 01/15/2028(b) | 1,562,500 | 1,463,047 | ||||
Ireland–0.65% | ||||||
BB Blue Financing DAC, Series A1, 4.40%, 09/20/2037 | 2,500,000 | 2,569,775 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 | Invesco International Bond Fund |
Principal Amount | Value | |||||
Ireland–(continued) | ||||||
Coriolanus DAC, | ||||||
Series 116, 0.00%, | $ | 693,302 | $ 656,328 | |||
Series 119, 0.00%, | 737,589 | 698,251 | ||||
Series 120, 0.00%, | 1,154,095 | 1,092,543 | ||||
Series 122, 0.00%, | 808,934 | 765,791 | ||||
Series 124, 0.00%, | 812,139 | 768,826 | ||||
Series 126, 0.00%, | 908,551 | 860,095 | ||||
Series 127, 0.00%, | 841,894 | 796,993 | ||||
0.00%, 04/30/2025(b)(e) | 825,942 | 781,893 | ||||
8,990,495 | ||||||
Ivory Coast–0.21% | ||||||
Ivory Coast Government International Bond, 5.38%, 07/23/2024(b) | 3,009,000 | 2,932,180 | ||||
Macau–0.18% | ||||||
MGM China Holdings Ltd., 5.88%, 05/15/2026(b) | 2,500,000 | 2,403,538 | ||||
Mexico–1.85% | ||||||
Alpek S.A.B. de C.V., 3.25%, 02/25/2031(b) | 2,443,000 | 1,992,799 | ||||
Banco Mercantil del Norte S.A., | 2,500,000 | 2,366,875 | ||||
5.88%(b)(c)(d) | 2,490,000 | 2,175,638 | ||||
Braskem Idesa S.A.P.I., | 5,000,000 | 3,960,694 | ||||
6.99%, 02/20/2032(b) | 2,076,000 | 1,486,935 | ||||
Cemex S.A.B. de C.V., 5.13%(b)(c)(d) | 3,457,000 | 3,065,322 | ||||
Nemak S.A.B. de C.V., 3.63%, 06/28/2031(b) | 4,254,000 | 3,183,055 | ||||
Petroleos Mexicanos, | 5,000,000 | 3,852,614 | ||||
7.69%, 01/23/2050 | 2,500,000 | 1,668,156 | ||||
6.95%, 01/28/2060 | 2,750,000 | 1,689,041 | ||||
25,441,129 | ||||||
Morocco–0.15% | ||||||
OCP S.A., 3.75%, 06/23/2031(b) | 2,500,000 | 2,101,563 | ||||
Nigeria–0.15% | ||||||
Nigeria Government International Bond, 6.50%, 11/28/2027(b) | 2,500,000 | 1,999,800 |
Principal Amount | Value | |||||
Oman–0.35% | ||||||
Oman Government International Bond, 6.75%, 01/17/2048(b) | $ | 5,000,000 | $ 4,843,905 | |||
Panama–0.15% | ||||||
Telecomunicaciones Digitales S.A., 4.50%, 01/30/2030(b) | 2,500,000 | 2,052,250 | ||||
Romania–0.20% | ||||||
Romanian Government International Bond, 7.13%, 01/17/2033(b) | 2,500,000 | 2,679,437 | ||||
Supranational–0.18% | ||||||
European Bank for Reconstruction and Development, 6.40%, 08/27/2025 | 2,400,000 | 2,511,300 | ||||
Sweden–0.34% | ||||||
Swedbank AB, Series NC5, | 5,000,000 | 4,732,000 | ||||
Switzerland–0.61% | ||||||
Credit Suisse Group AG, | 1,250,000 | 1,218,351 | ||||
6.54%, 08/12/2033(b)(c) | 2,500,000 | 2,540,231 | ||||
6.25%(b)(d)(g) | 9,800,000 | 392,000 | ||||
UBS Group AG, 5.13%(b)(c)(d) | 5,000,000 | 4,287,500 | ||||
8,438,082 | ||||||
Tanzania–0.31% | ||||||
HTA Group Ltd., 7.00%, 12/18/2025(b) | 4,500,000 | 4,249,237 | ||||
Thailand–0.33% | ||||||
GC Treasury Center Co. Ltd., 4.40%, 03/30/2032(b) | 2,500,000 | 2,298,315 | ||||
Muang Thai Life Assurance PCL, 3.55%, 01/27/2037(b)(c) | 2,450,000 | 2,174,879 | ||||
4,473,194 | ||||||
Turkey–0.17% | ||||||
Turkey Government International Bond, 4.88%, 04/16/2043 | 3,500,000 | 2,342,382 | ||||
United Kingdom–1.67% | ||||||
abrdn PLC, 4.25%, 06/30/2028(b) | 2,500,000 | 2,232,500 | ||||
BP Capital Markets PLC, 4.88%(c)(d) | 1,750,000 | 1,613,334 | ||||
British Telecommunications PLC, 4.25%, 11/23/2081(b)(c) | 5,000,000 | 4,415,625 | ||||
Lloyds Banking Group PLC, | 2,000,000 | 1,926,180 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 | Invesco International Bond Fund |
Principal Amount | Value | |||||||||
United Kingdom–(continued) | ||||||||||
M&G PLC, 6.50%, 10/20/2048(b)(c) | $ | 1,300,000 | $ 1,305,512 | |||||||
NatWest Group PLC, | 5,000,000 | 4,699,500 | ||||||||
Standard Chartered PLC, 6.00%(b)(c)(d) | 2,500,000 | 2,363,106 | ||||||||
Vodafone Group PLC, 3.25%, 06/04/2081(c)(f) | 5,000,000 | 4,380,974 | ||||||||
22,936,731 | ||||||||||
United States–0.11% | ||||||||||
U.S. International Development Finance Corp., Series 4, 3.13%, 04/15/2028 | 1,600,000 | 1,533,182 | ||||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 190,472,783 | ||||||||
Asset-Backed Securities–8.62%(a) | ||||||||||
Alba PLC, | GBP | 3,636,212 | 4,308,682 | |||||||
Series 2006-2, Class F, 7.53% (SONIA + 3.37%), 12/15/2038(b)(h) | GBP | 1,199,248 | 1,400,405 | |||||||
Eurohome UK Mortgages PLC, Series 2007-1, Class M2, 4.76% (3 mo. GBP LIBOR + 0.50%), 06/15/2044(b)(h) | GBP | 4,000,000 | 4,400,174 | |||||||
Series 2007-1, Class B1, 5.16% (3 mo. GBP LIBOR + 0.90%), 06/15/2044(b)(h) | GBP | 5,275,000 | 5,461,616 | |||||||
Series 2007-2, Class B1, 5.68% (SONIA + 1.52%), 09/15/2044(b)(h) | GBP | 4,000,000 | 3,890,477 | |||||||
Series 2007-1, Class M1, 4.56% (3 mo. GBP LIBOR + 0.30%), 06/15/2044(b)(h) | GBP | 5,200,000 | 5,882,239 | |||||||
Series 2007-2, Class B2, 8.28% (SONIA + 4.12%), 09/15/2044(b)(h) | GBP | 3,750,000 | 4,262,655 | |||||||
Eurosail PLC, Series 2007-4X, Class D1A, 6.02% (SONIA + 1.87%), 06/13/2045(b)(h) | GBP | 4,217,713 | 4,743,460 | |||||||
Grifonas Finance No. 1 PLC, Class B, 3.75% (6 mo. EURIBOR + 0.52%), 08/28/2039(b)(h) | EUR | 5,000,000 | 4,739,770 |
Principal Amount | Value | |||||||||
Ludgate Funding PLC, Series 2007-1, Class RES, 0.00%, 01/01/2061(b)(i) | GBP | 207,500,000 | $ 3,800,023 | |||||||
Mansard Mortgages PLC, Series 2006-1X, Class B2, 7.82% (SONIA + 3.62%), 10/15/2048(b)(h) | GBP | 3,757,189 | 4,542,479 | |||||||
Series 2007-1X, Class B2, 7.32% (SONIA + 3.12%), 04/15/2049(b)(h) | GBP | 2,323,576 | 2,613,063 | |||||||
Newday Funding Master Issuer PLC, Series 2021-1X, Class E, 8.23% (SONIA +4.05%), 03/15/2029(b)(h) | GBP | 5,084,000 | 6,262,178 | |||||||
Newday Funding Master Issuer PLC, | GBP | 3,600,000 | 4,384,478 | |||||||
Newgate Funding PLC, | EUR | 1,543,510 | 1,566,886 | |||||||
Series 2007-2X, Class CB, 3.40% (3 mo. EURIBOR + 0.44%), 12/15/2050(b)(h) | EUR | 2,064,266 | 1,938,077 | |||||||
Series 2007-1X, Class CB, 3.10% (3 mo. EURIBOR + 0.38%), 12/01/2050(b)(h) | EUR | 1,156,978 | 1,101,671 | |||||||
ResLoC UK PLC, Series 2007-1X, Class D1A, 4.16% (3 mo. EURIBOR + 1.20%), 12/15/2043(b)(h) | EUR | 4,082,269 | 3,972,826 | |||||||
RMAC Securities No. 1 PLC, Series 2006-NS4X, Class B1C, 3.80% (3 mo. EURIBOR + 0.85%), 06/12/2044(b)(h) | EUR | 7,855,050 | 7,773,100 | |||||||
Towd Point Mortgage Funding 2019 - Granite4 PLC, | GBP | 3,000,000 | 3,668,752 | |||||||
Series 2019-GR4X, Class GR, 6.70% (SONIA + 2.50%), 10/20/2051(b)(h) | GBP | 2,500,000 | 3,050,485 | |||||||
Sestante Finance S.r.l., Series 2005, Class C1, 3.98% (3 mo. EURIBOR +0.80%), 07/15/2045(b)(h) | EUR | 9,700,000 | 6,263,829 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 | Invesco International Bond Fund |
Principal Amount | Value | |||||||||
IM Pastor 4, FTA, | EUR | 7,393,036 | $ 7,095,253 | |||||||
Series B, 2.94% (3 mo. EURIBOR + 0.19%), 03/22/2044(b)(h) | EUR | 3,800,000 | 2,576,523 | |||||||
Lusitano Mortgages No. 5 PLC, Class D, 4.14% (3 mo. EURIBOR + 0.96%), 07/15/2059(b)(h) | EUR | 5,877,128 | 4,879,331 | |||||||
Fideicomiso Dorrego Y Libertador, | $ | 10,843,617 | 10,301,436 | |||||||
0.00%, 12/31/2043(j) | ARS | 117,222,368 | 500,169 | |||||||
Fideicomiso Financiero Invernea Proteina 2, Serie II, 0.00%, 08/25/2032(j) | ARS | 445,000,000 | 3,069,972 | |||||||
Total Asset-Backed Securities |
| 118,450,009 | ||||||||
U.S. Treasury Securities–3.94% |
| |||||||||
U.S. Treasury Bills–1.06% | ||||||||||
4.89%, 10/26/2023(k) | 4,882,137 | 4,880,526 | ||||||||
4.77%, 11/02/2023(k) | 9,766,309 | 9,755,568 | ||||||||
14,636,094 | ||||||||||
U.S. Treasury Inflation – Indexed Bonds–2.88% | ||||||||||
0.13%, 02/15/2052(l) | 41,634,845 | 39,515,522 | ||||||||
Total U.S. Treasury Securities |
| 54,151,616 | ||||||||
Shares | ||||||||||
Common Stocks & Other Equity Interests–2.09% | ||||||||||
Argentina–2.09% |
| |||||||||
Grupo Financiero Galicia S.A., Class B | 500,000 | 1,176,750 | ||||||||
YPF S.A., Class D(m) |
| 1,200,000 | 27,568,034 | |||||||
Total Common Stocks & Other Equity Interests (Cost $11,908,360) |
| 28,744,784 |
Shares | Value | |||||||||
Preferred Stocks–0.57% |
| |||||||||
United States–0.57% |
| |||||||||
AT&T, Inc., 2.88%, Series B, Pfd.(c) (Cost $8,912,532) |
| 7,700,000 | $ 7,795,130 | |||||||
Money Market Funds–3.14% | ||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(n)(o) | 15,074,151 | 15,074,151 | ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(n)(o) | 10,763,462 | 10,766,690 | ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(n)(o) | 17,227,601 | 17,227,601 | ||||||||
Total Money Market Funds |
| 43,068,442 | ||||||||
Options Purchased–2.66% | ||||||||||
(Cost $54,244,259)(p) | 36,576,599 | |||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-93.53% |
| 1,285,053,206 | ||||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||||
Money Market Funds–0.67% | ||||||||||
Invesco Private Government Fund, 4.83%(n)(o)(q) | 2,570,993 | 2,570,993 | ||||||||
Invesco Private Prime Fund, 4.99%(n)(o)(q) | 6,611,126 | 6,611,126 | ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 9,182,119 | ||||||||
TOTAL INVESTMENTS IN SECURITIES–94.20% |
| 1,294,235,325 | ||||||||
OTHER ASSETS LESS LIABILITIES–5.80% |
| 79,732,972 | ||||||||
NET ASSETS–100.00% |
| $1,373,968,297 |
Investment Abbreviations: | ||
ARS | – Argentina Peso | |
AUD | – Australian Dollar | |
BRL | – Brazilian Real | |
COP | – Colombia Peso | |
EUR | – Euro | |
EURIBOR | – Euro Interbank Offered Rate | |
GBP | – British Pound Sterling | |
IDR | – Indonesian Rupiah | |
INR | – Indian Rupee | |
JPY | – Japanese Yen | |
LIBOR | – London Interbank Offered Rate | |
MXN | – Mexican Peso | |
PEN | – Peruvian Sol | |
Pfd. | – Preferred | |
PLN | – Polish Zloty | |
SONIA | – Sterling Overnight Index Average | |
THB | – Thai Baht | |
ZAR | – South African Rand |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 | Invesco International Bond Fund |
Notes to Consolidated 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, 2023 was $489,404,270, which represented 35.62% of the Fund’s Net Assets. |
(c) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(d) | Perpetual bond with no specified maturity date. |
(e) | Zero coupon bond issued at a discount. |
(f) | All or a portion of this security was out on loan at April 30, 2023. |
(g) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The value of this security at April 30, 2023 represented less than 1% of the Fund’s Net Assets. |
(h) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2023. |
(i) | 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, 2023. |
(j) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(k) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(l) | Principal amount of security and interest payments are adjusted for inflation. See Note 1I. |
(m) | Non-income producing security. |
(n) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | |||||||||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | |||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 23,284,920 | $ | 220,626,790 | $ | (228,837,559) | $ | - | $ | - | $ | 15,074,151 | $ | 498,588 | |||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 16,742,380 | 157,590,564 | (163,570,521) | (346) | 4,613 | 10,766,690 | 370,883 | ||||||||||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 26,611,337 | 252,144,903 | (261,528,639) | - | - | 17,227,601 | 569,784 | ||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | |||||||||||||||||||||||||||||||||||
Invesco Private Government Fund | 1,248,525 | 19,703,179 | (18,380,711) | - | - | 2,570,993 | 64,840* | ||||||||||||||||||||||||||||
Invesco Private Prime Fund | 3,209,614 | 45,338,143 | (41,934,316) | (653) | (1,662) | 6,611,126 | 175,368* | ||||||||||||||||||||||||||||
Total | $ | 71,096,776 | $ | 695,403,579 | $ | (714,251,746) | $ | (999) | $ | 2,951 | $ | 52,250,561 | $ | 1,679,463 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(o) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(p) | The table below details options purchased. |
(q) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1K. |
Open Over-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 | Bank of America, N.A. | 07/27/2023 | USD | 0.73 | AUD | 75,000,000 | $ | 35,285 | |||||||||||||||||||
AUD versus USD | Call | Goldman Sachs International | 07/20/2023 | USD | 0.71 | AUD | 75,000,000 | 93,151 | ||||||||||||||||||||
AUD versus USD | Call | Goldman Sachs International | 10/12/2023 | USD | 0.80 | AUD | 8,750,000 | 76,542 | ||||||||||||||||||||
AUD versus USD | Call | Standard Chartered Bank PLC | 05/11/2023 | USD | 0.75 | AUD | 4,000,000 | 3 | ||||||||||||||||||||
EUR versus USD | Call | Bank of America, N.A. | 10/23/2023 | USD | 1.18 | EUR | 9,000,000 | 1,065,632 | ||||||||||||||||||||
EUR versus USD | Call | Goldman Sachs International | 08/01/2023 | USD | 1.18 | EUR | 250,000,000 | 276,302 | ||||||||||||||||||||
EUR versus USD | Call | Goldman Sachs International | 08/23/2023 | USD | 1.14 | EUR | 100,000,000 | 235,807 | ||||||||||||||||||||
EUR versus USD | Call | Goldman Sachs International | 10/23/2023 | USD | 1.18 | EUR | 100,000,000 | 372,112 | ||||||||||||||||||||
EUR versus USD | Call | J.P. Morgan Chase Bank, N.A. | 07/11/2023 | USD | 1.18 | EUR | 150,000,000 | 116,526 | ||||||||||||||||||||
NZD versus USD | Call | Goldman Sachs International | 10/12/2023 | USD | 0.70 | NZD | 14,285,714 | 651,184 | ||||||||||||||||||||
USD versus CNH | Call | Goldman Sachs International | 05/31/2023 | CNH | 7.50 | USD | 6,000,000 | 5,610 | ||||||||||||||||||||
Subtotal – Foreign Currency Call Options Purchased | 2,928,154 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 | Invesco International Bond Fund |
Open Over-The-Counter Foreign Currency Options Purchased(a)–(continued) | ||||||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Expiration Date | Exercise Price | Notional Value | Value | ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||
CNY versus INR | Put | Goldman Sachs International | 07/20/2023 | INR | 11.80 | CNY | 17,500,000 | $ | 842,600 | |||||||||||||||||||
EUR versus HUF | Put | Bank of America, N.A. | 08/14/2023 | HUF | 370.00 | EUR | 50,000,000 | 370,294 | ||||||||||||||||||||
EUR versus HUF | Put | Goldman Sachs International | 09/15/2023 | HUF | 358.00 | EUR | 5,000,000 | 1,486,458 | ||||||||||||||||||||
EUR versus NOK | Put | Goldman Sachs International | 05/08/2023 | NOK | 10.60 | EUR | 100,000,000 | 110 | ||||||||||||||||||||
EUR versus PLN | Put | Goldman Sachs International | 07/31/2023 | PLN | 4.50 | EUR | 3,000,000 | 458,547 | ||||||||||||||||||||
GBP versus USD | Put | Goldman Sachs International | 05/08/2023 | USD | 1.15 | GBP | 100,000,000 | 126 | ||||||||||||||||||||
GBP versus USD | Put | Morgan Stanley and Co. International PLC | 06/01/2023 | USD | 1.19 | GBP | 100,000,000 | 25,135 | ||||||||||||||||||||
USD versus BRL | Put | Bank of America, N.A. | 10/10/2023 | BRL | 5.27 | USD | 30,000,000 | 1,675,290 | ||||||||||||||||||||
USD versus BRL | Put | Goldman Sachs International | 07/07/2023 | BRL | 5.00 | USD | 5,000,000 | 1,634,845 | ||||||||||||||||||||
USD versus BRL | Put | Goldman Sachs International | 09/27/2023 | BRL | 5.05 | USD | 5,000,000 | 783,650 | ||||||||||||||||||||
USD versus BRL | Put | Goldman Sachs International | 11/16/2023 | BRL | 4.50 | USD | 3,400,000 | 829,644 | ||||||||||||||||||||
USD versus BRL | Put | Morgan Stanley and Co. International PLC | 07/11/2023 | BRL | 4.90 | USD | 5,000,000 | 1,734,175 | ||||||||||||||||||||
USD versus CAD | Put | J.P. Morgan Chase Bank, N.A. | 05/23/2023 | CAD | 1.22 | USD | 7,500,000 | 510 | ||||||||||||||||||||
USD versus CLP | Put | Morgan Stanley and Co. International PLC | 06/28/2023 | CLP | 801.95 | USD | 25,000,000 | 469,000 | ||||||||||||||||||||
USD versus CNH | Put | Morgan Stanley and Co. International PLC | 09/20/2023 | CNH | 6.50 | USD | 3,000,000 | 155,841 | ||||||||||||||||||||
USD versus COP | Put | Morgan Stanley and Co. International PLC | 06/08/2023 | COP | 4,480.00 | USD | 40,000,000 | 162,880 | ||||||||||||||||||||
USD versus COP | Put | Morgan Stanley and Co. International PLC | 09/27/2023 | COP | 4,630.00 | USD | 50,000,000 | 1,157,200 | ||||||||||||||||||||
USD versus IDR | Put | Goldman Sachs International | 10/04/2023 | IDR | 14,750.00 | USD | 60,000,000 | 1,369,680 | ||||||||||||||||||||
USD versus JPY | Put | Bank of America, N.A. | 09/04/2023 | JPY | 120.00 | USD | 6,000,000 | 303,438 | ||||||||||||||||||||
USD versus JPY | Put | Goldman Sachs International | 05/23/2023 | JPY | 122.00 | USD | 7,500,000 | 13,432 | ||||||||||||||||||||
USD versus JPY | Put | Goldman Sachs International | 02/08/2024 | JPY | 113.00 | USD | 50,000,000 | 243,250 | ||||||||||||||||||||
USD versus JPY | Put | J.P. Morgan Chase Bank, N.A. | 11/07/2023 | JPY | 114.00 | USD | 6,000,000 | 216,582 | ||||||||||||||||||||
USD versus MXN | Put | Goldman Sachs International | 06/30/2023 | MXN | 18.00 | USD | 100,000,000 | 1,168,700 | ||||||||||||||||||||
USD versus MXN | Put | J.P. Morgan Chase Bank, N.A. | 10/31/2023 | MXN | 18.00 | USD | 75,000,000 | 1,176,075 | ||||||||||||||||||||
USD versus THB | Put | Standard Chartered Bank PLC | 10/04/2023 | THB | 30.00 | USD | 5,000,000 | 124,005 | ||||||||||||||||||||
USD versus ZAR | Put | Bank of America, N.A. | 06/01/2023 | ZAR | 16.50 | USD | 2,500,000 | 18,225 | ||||||||||||||||||||
USD versus ZAR | Put | Goldman Sachs International | 05/01/2023 | ZAR | 17.55 | USD | 75,000,000 | 75 | ||||||||||||||||||||
USD versus ZAR | Put | Goldman Sachs International | 07/13/2023 | ZAR | 16.50 | USD | 50,000,000 | 62,900 | ||||||||||||||||||||
USD versus ZAR | Put | Goldman Sachs International | 07/31/2023 | ZAR | 17.10 | USD | 5,000,000 | 736,160 | ||||||||||||||||||||
USD versus ZAR | Put | J.P. Morgan Chase Bank, N.A. | 08/10/2023 | ZAR | 17.00 | USD | 50,000,000 | 258,350 | ||||||||||||||||||||
Subtotal – Foreign Currency Put Options Purchased |
| 17,477,177 | ||||||||||||||||||||||||||
Total Foreign Currency Options Purchased |
| $ | 20,405,331 |
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,115,000. |
Open Over-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 Swap | Call | Morgan Stanley and Co. International PLC | 2.84% | Receive | 6 Month EURIBOR | Semi-Annually | 03/07/2024 | EUR | 22,800,000 | $ | 741,710 | |||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
12 | Invesco International Bond Fund |
Open Over-The-Counter Interest Rate Swaptions Purchased(a)–(continued) | ||||||||||||||||||||||||||||||
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 Swap | Put | Morgan Stanley and Co. International PLC | 3.77% | Pay | SOFR | Annually | 08/07/2023 | USD | 236,000,000 | $ | 851,873 | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
15 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 1.81 | Pay | 6 Month EURIBOR | Semi-Annually | 04/06/2038 | EUR | 67,500,000 | 6,279,938 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
30 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 2.82 | Pay | SOFR | Annually | 03/31/2025 | USD | 22,000,000 | 1,886,401 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
40 Year Interest Rate Swap | Put | J.P. Morgan Chase Bank, N.A. | 2.00 | Pay | 6 Month EURIBOR | Semi-Annually | 04/17/2024 | EUR | 44,000,000 | 6,157,135 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Put | J.P. Morgan Chase Bank, N.A. | 0.75 | Pay | TONAR | Annually | 03/04/2024 | JPY | 10,400,000,000 | 254,211 | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Subtotal – Interest Rate Put Swaptions Purchased |
| 15,429,558 | ||||||||||||||||||||||||||||
Total Interest Rate Swaptions Purchased |
| $ | 16,171,268 |
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,115,000. |
Open Over-The-Counter Credit Default Swaptions Written(a) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Counterparty | Type of Contract | Exercise Rate | Reference Entity | (Pay)/ Receive Fixed Rate | Payment Frequency | Expiration Date | Implied Credit Spread(b) | Notional Value | Value | |||||||||||||||||||
| ||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Put | 96.00% | Markit CDX North America High Yield Index, Series 40, Version 1 | 5.00% | Quarterly | 09/20/2023 | 4.645 | % | USD | 50,000,000 | $ | (613,018 | ) | |||||||||||||||
|
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,115,000. |
(b) | Implied credit spreads represent the current level, as of April 30, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Open Over-The-Counter Foreign Currency Options Written(a) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Expiration Date | �� | Exercise Price | Notional Value | Value | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
AUD versus USD | Call | Bank of America, N.A. | 07/27/2023 | USD | 0.78 | AUD | 75,000,000 | $ | (2,432 | ) | ||||||||||||||||||
| ||||||||||||||||||||||||||||
AUD versus USD | Call | Goldman Sachs International | 07/20/2023 | USD | 0.75 | AUD | 75,000,000 | (9,429 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
CNY versus INR | Call | Goldman Sachs International | 07/20/2023 | INR | 12.20 | CNY | 175,000,000 | (79,099 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
EUR versus HUF | Call | Goldman Sachs International | 09/15/2023 | HUF | 450.00 | EUR | 2,500,000 | (120,217 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
EUR versus HUF | Call | J.P. Morgan Chase Bank, N.A. | 10/12/2023 | HUF | 418.00 | EUR | 50,000,000 | (820,255 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
EUR versus JPY | Call | J.P. Morgan Chase Bank, N.A. | 07/03/2023 | JPY | 146.00 | EUR | 50,000,000 | (1,713,345 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Bank of America, N.A. | 10/10/2023 | BRL | 6.24 | USD | 30,000,000 | (141,240 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Goldman Sachs International | 07/03/2023 | BRL | 5.48 | USD | 50,000,000 | (286,050 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Goldman Sachs International | 11/16/2023 | BRL | 5.55 | USD | 3,400,000 | (704,633 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Goldman Sachs International | 01/08/2024 | BRL | 6.10 | USD | 5,000,000 | (473,245 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Call | Morgan Stanley and Co. International PLC | 07/11/2023 | BRL | 5.60 | USD | 50,000,000 | (230,200 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus CLP | Call | Morgan Stanley and Co. International PLC | 06/28/2023 | CLP | 897.85 | USD | 25,000,000 | (98,700 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus COP | Call | Morgan Stanley and Co. International PLC | 06/08/2023 | COP | 4,810.00 | USD | 40,000,000 | (748,360 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus COP | Call | Morgan Stanley and Co. International PLC | 09/27/2023 | COP | 5,280.00 | USD | 50,000,000 | (993,350 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus IDR | Call | Goldman Sachs International | 10/04/2023 | IDR | 15,700.00 | USD | 60,000,000 | (366,060 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus JPY | Call | Goldman Sachs International | 05/11/2023 | JPY | 136.25 | USD | 50,000,000 | (335,550 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | Goldman Sachs International | 06/30/2023 | MXN | 19.00 | USD | 100,000,000 | (690,500 | ) | |||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13 | Invesco International Bond Fund |
Open Over-The-Counter Foreign Currency Options Written(a)–(continued) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Expiration Date | Exercise Price | Notional Value | Value | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | Goldman Sachs International | 08/17/2023 | MXN | 20.00 | USD | 3,000,000 | $ | (305,493 | ) | ||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | Goldman Sachs International | 01/16/2024 | MXN | 21.00 | USD | 70,000,000 | (958,300 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | J.P. Morgan Chase Bank, N.A. | 10/31/2023 | MXN | 19.75 | USD | 75,000,000 | (1,204,950 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Call | Morgan Stanley and Co. International PLC | 06/05/2023 | MXN | 19.82 | USD | 65,000,000 | (72,540 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
Subtotal – Foreign Currency Call Options Written |
| (10,353,948 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
AUD versus USD | Put | Bank of America, N.A. | 07/27/2023 | USD | 0.68 | AUD | 75,000,000 | (1,482,373 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
AUD versus USD | Put | Goldman Sachs International | 07/20/2023 | USD | 0.65 | AUD | 75,000,000 | (681,932 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Put | Bank of America, N.A. | 10/10/2023 | BRL | 4.69 | USD | 30,000,000 | (265,680 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus BRL | Put | Goldman Sachs International | 07/03/2023 | BRL | 4.90 | USD | 50,000,000 | (631,050 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus CLP | Put | Morgan Stanley and Co. International PLC | 06/28/2023 | CLP | 744.05 | USD | 25,000,000 | (43,275 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus COP | Put | Morgan Stanley and Co. International PLC | 06/08/2023 | COP | 4,260.00 | USD | 40,000,000 | (23,600 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus COP | Put | Morgan Stanley and Co. International PLC | 09/27/2023 | COP | 4,230.00 | USD | 50,000,000 | (237,200 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus IDR | Put | Goldman Sachs International | 10/04/2023 | IDR | 14,250.00 | USD | 60,000,000 | (490,440 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Put | Goldman Sachs International | 06/30/2023 | MXN | 17.50 | USD | 100,000,000 | (320,600 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
USD versus MXN | Put | J.P. Morgan Chase Bank, N.A. | 10/31/2023 | MXN | 17.35 | USD | 75,000,000 | (453,825 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
Subtotal – Foreign Currency Put Options Written |
| (4,629,975 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Total – Foreign Currency Options Written |
| $ | (14,983,923 | ) | ||||||||||||||||||||||||
|
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,115,000. |
Open Over-The-Counter Interest Rate Swaptions Written(a) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Exercise Rate | Floating Rate Index | Pay/ Receive Exercise Rate | Payment Frequency | Expiration Date | Notional Value | Value | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Bank of America, N.A. | 3.61% | SOFR | Receive | Annually | 03/14/2024 | USD | 500,000,000 | $ (7,829,385 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Barclays Bank PLC | 3.92 | SONIA | Receive | Annually | 06/02/2023 | GBP | 143,000,000 | (65,693 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Goldman Sachs International | 3.25 | SOFR | Receive | Annually | 03/27/2024 | USD | 75,000,000 | (3,465,208 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 3.49 | SOFR | Receive | Annually | 05/30/2023 | USD | 125,000,000 | (1,580,212 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.75 | SOFR | Receive | Annually | 07/05/2024 | USD | 50,000,000 | (1,452,362 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
30 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.42 | SOFR | Receive | Annually | 04/15/2024 | USD | 50,000,000 | (1,473,948 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.75 | SOFR | Receive | Annually | 09/16/2024 | USD | 125,000,000 | (1,399,638 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
30 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.48 | SOFR | Receive | Annually | 04/17/2024 | USD | 25,000,000 | (830,717 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 2.44 | 6 Month EURIBOR | Receive | Semi-Annually | 04/14/2025 | EUR | 75,000,000 | (2,522,349 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Call | J.P. Morgan Chase Bank, N.A. | 0.35 | TONAR | Receive | Annually | 03/04/2024 | JPY | 10,400,000,000 | (604,347 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 3.98 | SONIA | Receive | Annually | 05/30/2023 | GBP | 250,000,000 | (128,669 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 2.47 | SOFR | Receive | Annually | 03/13/2025 | USD | 40,000,000 | (1,067,340 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 2.56 | SOFR | Receive | Annually | 03/10/2025 | USD | 40,000,000 | (1,172,102 | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 3.20 | 6 Month EURIBOR | Receive | Semi-Annually | 03/07/2024 | EUR | 100,000,000 | (1,179,104 | ) | |||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14 | Invesco International Bond Fund |
Open Over-The-Counter Interest Rate Swaptions Written(a)–(continued) | ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Description | Type of Contract | Counterparty | Exercise Rate | Floating Rate Index | Pay/ Receive Exercise Rate | Payment Frequency | Expiration Date | Notional Value | Value | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 2.95% | SOFR | Receive | Annually | 07/08/2024 | USD | 50,000,000 | $ | (1,854,678 | ) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 3.50 | SOFR | Receive | Annually | 03/14/2024 | USD | 750,000,000 | (7,244,480 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Call | Morgan Stanley and Co. International PLC | 3.77 | SOFR | Receive | Annually | 08/07/2023 | USD | 236,000,000 | (14,013,663 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Subtotal–Interest Rate Call Swaptions Written |
| (47,883,895 | ) | |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Put | Barclays Bank PLC | 4.52 | SONIA | Pay | Annually | 06/02/2023 | GBP | 286,000,000 | (998,750 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Put | J.P. Morgan Chase Bank, N.A. | 1.10 | TONAR | Pay | Annually | 03/04/2024 | JPY | 10,400,000,000 | (159,189 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Put | J.P. Morgan Chase Bank, N.A. | 2.60 | | 6 Month EURIBOR | | Pay | | Semi- Annually | 04/17/2024 | EUR | 132,000,000 | (7,162,966 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 5.13 | SONIA | Pay | Annually | 05/30/2023 | GBP | 500,000,000 | (142,874 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
2 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 4.00 | SOFR | Pay | Annually | 09/16/2024 | USD | 125,000,000 | (669,030 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
10 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 3.56 | SOFR | Pay | Annually | 03/10/2025 | USD | 40,000,000 | (1,071,811 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
5 Year Interest Rate Swap | Put | Morgan Stanley and Co. International PLC | 3.31 | SOFR | Pay | Annually | 03/31/2025 | USD | 93,600,000 | (1,828,566 | ) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Subtotal–Interest Rate Put Swaptions Written | (12,033,186 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
Total Open Over-The-Counter Interest Rate Swaptions Written |
| $ | (59,917,081 | ) | ||||||||||||||||||||||||||||||
|
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,115,000. |
Open Futures Contracts(a) | ||||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||
Euro-Schatz | 3,300 | May-2023 | $ | 363,627 | $ | (648,784 | ) | $ | (648,784 | ) | ||||||||||||
U.S. Treasury 5 Year Notes | 624 | June-2023 | 68,479,125 | 36,624 | 36,624 | |||||||||||||||||
Subtotal–Long Futures Contracts | (612,160 | ) | (612,160 | ) | ||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||
Euro-Bobl | 123 | June-2023 | (15,988,917 | ) | 6,777 | 6,777 | ||||||||||||||||
Euro-Bund | 140 | June-2023 | (20,912,307 | ) | (23,949 | ) | (23,949 | ) | ||||||||||||||
Euro-Schatz | 1,346 | June-2023 | (156,732,722 | ) | 1,249,319 | 1,249,319 | ||||||||||||||||
U.S. Treasury 2 Year Notes | 6 | June-2023 | (1,236,984 | ) | (12,234 | ) | (12,234 | ) | ||||||||||||||
U.S. Treasury 10 Year Notes | 38 | June-2023 | (4,377,719 | ) | (16,031 | ) | (16,031 | ) | ||||||||||||||
U.S. Treasury 10 Year Ultra Notes | 16 | June-2023 | (1,943,250 | ) | (68,250 | ) | (68,250 | ) | ||||||||||||||
U.S. Treasury Ultra Bonds | 87 | June-2023 | (12,302,344 | ) | (558,024 | ) | (558,024 | ) | ||||||||||||||
Subtotal–Short Futures Contracts | 577,608 | 577,608 | ||||||||||||||||||||
Total Futures Contracts | $ | (34,552 | ) | $ | (34,552 | ) |
(a) | Futures contracts collateralized by $5,596,137 cash held with Merrill Lynch International, the futures commission merchant. |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||||||
|
| |||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
05/03/2023 | Bank of America, N.A. | USD | 36,318,203 | EUR | 33,000,000 | $ | 44,512 | |||||||||||||||
05/30/2023 | Bank of America, N.A. | USD | 25,302,530 | EUR | 23,000,000 | 80,722 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15 | Invesco International Bond Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||||||
|
| |||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
06/21/2023 | Bank of America, N.A. | AUD | 9,580,000 | USD | 6,506,440 | $ | 153,815 | |||||||||||||||
06/21/2023 | Bank of America, N.A. | JPY | 2,088,000,000 | USD | 16,127,556 | 685,864 | ||||||||||||||||
06/21/2023 | Bank of America, N.A. | NOK | 230,895,886 | USD | 22,286,626 | 568,416 | ||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 1,577,729 | GBP | 1,265,000 | 13,697 | ||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 15,762,738 | SEK | 164,510,733 | 319,876 | ||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 326,566 | SGD | 438,797 | 2,869 | ||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 11,919,883 | THB | 407,749,409 | 78,530 | ||||||||||||||||
09/06/2023 | Bank of America, N.A. | JPY | 1,116,024,000 | USD | 8,400,000 | 50,071 | ||||||||||||||||
06/21/2023 | BNP Paribas S.A. | NOK | 143,492,000 | USD | 13,618,438 | 121,492 | ||||||||||||||||
06/21/2023 | BNP Paribas S.A. | NZD | 1,860,000 | USD | 1,156,581 | 6,584 | ||||||||||||||||
06/21/2023 | BNP Paribas S.A. | USD | 4,113,036 | EUR | 3,795,000 | 80,374 | ||||||||||||||||
06/21/2023 | Citibank, N.A. | COP | 63,628,394,400 | USD | 13,896,000 | 501,319 | ||||||||||||||||
06/21/2023 | Citibank, N.A. | TWD | 403,015,800 | USD | 13,214,499 | 59,249 | ||||||||||||||||
06/21/2023 | Citibank, N.A. | USD | 47,776,079 | IDR | 739,478,143,200 | 2,598,563 | ||||||||||||||||
06/22/2023 | Citibank, N.A. | CLP | 5,428,840,000 | USD | 6,695,659 | 14,952 | ||||||||||||||||
06/21/2023 | Deutsche Bank AG | JPY | 3,747,453,649 | USD | 27,906,614 | 192,522 | ||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 50,246,121 | HUF | 18,305,666,623 | 3,016,986 | ||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 104,095,838 | MXN | 1,925,417,473 | 1,921,347 | ||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 49,787,767 | ZAR | 924,618,572 | 533,157 | ||||||||||||||||
05/15/2023 | Goldman Sachs International | JPY | 1,306,031,000 | USD | 10,100,000 | 495,332 | ||||||||||||||||
05/16/2023 | Goldman Sachs International | USD | 19,796,400 | EUR | 18,000,000 | 53,198 | ||||||||||||||||
06/02/2023 | Goldman Sachs International | USD | 3,463,883 | BRL | 17,561,471 | 35,623 | ||||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 71,306,827 | MXN | 1,312,830,000 | 980,114 | ||||||||||||||||
07/05/2023 | Goldman Sachs International | USD | 13,500,000 | MXN | 247,623,750 | 96,494 | ||||||||||||||||
07/24/2023 | Goldman Sachs International | AUD | 32,625,000 | USD | 22,739,625 | 1,076,144 | ||||||||||||||||
08/02/2023 | Goldman Sachs International | USD | 28,449,900 | EUR | 25,700,000 | 11,863 | ||||||||||||||||
09/05/2023 | Goldman Sachs International | USD | 47,750,000 | MXN | 921,575,000 | 2,245,256 | ||||||||||||||||
09/19/2023 | Goldman Sachs International | USD | 21,828,125 | EUR | 19,843,750 | 195,076 | ||||||||||||||||
09/29/2023 | Goldman Sachs International | USD | 8,000,000 | SEK | 82,248,000 | 75,858 | ||||||||||||||||
02/13/2024 | Goldman Sachs International | JPY | 1,042,440,000 | USD | 8,400,000 | 412,023 | ||||||||||||||||
06/02/2023 | HSBC Bank USA | USD | 3,544,617 | BRL | 17,971,102 | 36,517 | ||||||||||||||||
06/21/2023 | HSBC Bank USA | CNY | 306,834,038 | USD | 44,723,808 | 237,270 | ||||||||||||||||
06/21/2023 | HSBC Bank USA | KRW | 25,023,000,000 | USD | 19,076,625 | 319,477 | ||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 48,768,756 | EUR | 44,500,000 | 402,984 | ||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 29,354,679 | THB | 1,005,750,000 | 240,469 | ||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | USD | 181,412,951 | BRL | 920,121,545 | 3,061,476 | ||||||||||||||||
05/24/2023 | J.P. Morgan Chase Bank, N.A. | CAD | 46,582,538 | USD | 34,875,000 | 477,899 | ||||||||||||||||
06/05/2023 | J.P. Morgan Chase Bank, N.A. | USD | 11,700,000 | MXN | 211,927,950 | 6,786 | ||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | KRW | 17,103,799,650 | USD | 13,027,000 | 206,055 | ||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 14,602,600 | COP | 70,660,523,000 | 272,443 | ||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 836,730 | CZK | 18,846,926 | 43,874 | ||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 25,626,000 | EUR | 23,608,459 | 460,944 | ||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 56,054 | INR | 4,631,125 | 466 | ||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 13,080,201 | ZAR | 241,498,750 | 62,992 | ||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | ZAR | 478,791,934 | USD | 26,062,000 | 4,496 | ||||||||||||||||
07/05/2023 | J.P. Morgan Chase Bank, N.A. | JPY | 2,962,567,000 | USD | 22,591,734 | 635,088 | ||||||||||||||||
07/05/2023 | J.P. Morgan Chase Bank, N.A. | USD | 22,628,205 | EUR | 20,700,000 | 262,762 | ||||||||||||||||
07/12/2023 | J.P. Morgan Chase Bank, N.A. | USD | 5,407,050 | EUR | 5,000,000 | 124,189 | ||||||||||||||||
10/16/2023 | J.P. Morgan Chase Bank, N.A. | USD | 11,080,000 | EUR | 10,000,000 | 31,626 | ||||||||||||||||
05/03/2023 | Morgan Stanley and Co. International PLC | USD | 182,713,009 | BRL | 920,121,545 | 1,761,417 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16 | Invesco International Bond Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||||||
|
| |||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
06/02/2023 | Morgan Stanley and Co. International PLC | USD | 61,068,836 | BRL | 310,550,301 | $ | 815,086 | |||||||||||||||
| ||||||||||||||||||||||
06/05/2023 | Morgan Stanley and Co. International PLC | USD | 9,880,800 | GBP | 8,000,000 | 180,427 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 76,894,543 | AUD | 116,005,949 | 30,538 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 62,869,153 | CAD | 85,532,131 | 323,952 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 347,862,264 | EUR | 328,057,437 | 14,635,600 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 13,262,871 | GBP | 11,185,500 | 808,981 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 37,668,118 | PLN | 164,874,264 | 1,837,832 | ||||||||||||||||
| ||||||||||||||||||||||
09/22/2023 | Morgan Stanley and Co. International PLC | CNY | 111,231,200 | USD | 16,300,000 | 78,635 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | USD | 9,861,165 | EUR | 9,000,000 | 83,681 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Standard Chartered Bank PLC | JPY | 1,125,000,000 | USD | 8,626,029 | 306,152 | ||||||||||||||||
| ||||||||||||||||||||||
Subtotal—Appreciation | 44,472,012 | |||||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Bank of America, N.A. | EUR | 33,000,000 | USD | 36,165,030 | (197,685 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | EUR | 48,550,000 | USD | 53,587,454 | (59,466 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | THB | 480,000,000 | USD | 14,032,010 | (92,445 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 89,978,659 | KRW | 117,866,644,322 | (1,626,260 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 36,141,443 | NOK | 374,435,799 | (921,780 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 13,331,651 | TWD | 403,015,800 | (176,400 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/29/2023 | Bank of America, N.A. | AUD | 38,176,682 | USD | 25,000,000 | (415,463 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/13/2023 | Bank of America, N.A. | BRL | 78,497,600 | USD | 14,200,000 | (1,063,947 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Barclays Bank PLC | USD | 3,463,883 | COP | 15,907,882,677 | (115,048 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | EUR | 82,679,403 | USD | 89,998,330 | (1,360,998 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | USD | 3,075,720 | NZD | 4,946,337 | (17,508 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Citibank, N.A. | IDR | 313,926,600,000 | USD | 20,282,116 | (1,103,154 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/22/2023 | Citibank, N.A. | USD | 14,057,163 | CLP | 11,397,547,732 | (31,391 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | EUR | 4,830,000 | USD | 5,190,015 | (147,052 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | GBP | 1,355,000 | USD | 1,641,059 | (63,591 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | MXN | 1,542,835,550 | USD | 83,171,885 | (1,779,604 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 3,633,760 | AUD | 5,415,000 | (43,001 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 143,192,042 | JPY | 19,228,614,987 | (987,854 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | ZAR | 1,753,399,780 | USD | 94,414,997 | (1,011,051 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/25/2023 | Goldman Sachs International | JPY | 1,499,850,000 | USD | 11,000,000 | (46,525 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | COP | 59,983,132,000 | USD | 12,312,440 | (314,861 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | EUR | 25,412,351 | USD | 27,862,000 | (218,214 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | MXN | 1,770,452,155 | USD | 96,179,000 | (1,305,497 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/29/2023 | Goldman Sachs International | PLN | 37,966,555 | USD | 7,370,000 | (1,723,285 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/17/2023 | Goldman Sachs International | MXN | 438,918,750 | USD | 22,500,000 | (1,543,269 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/26/2023 | Goldman Sachs International | ZAR | 140,775,000 | USD | 7,500,000 | (136,090 | ) | |||||||||||||||
| ||||||||||||||||||||||
08/02/2023 | Goldman Sachs International | PLN | 118,492,100 | USD | 28,300,000 | (26,159 | ) | |||||||||||||||
| ||||||||||||||||||||||
08/03/2023 | Goldman Sachs International | EUR | 23,750,000 | USD | 26,144,000 | (159,587 | ) | |||||||||||||||
| ||||||||||||||||||||||
08/21/2023 | Goldman Sachs International | MXN | 478,737,500 | USD | 25,000,000 | (1,046,494 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/06/2023 | Goldman Sachs International | IDR | 443,120,000,000 | USD | 29,000,000 | (1,145,555 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/19/2023 | Goldman Sachs International | HUF | 8,400,000,000 | USD | 21,875,000 | (2,018,664 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/29/2023 | Goldman Sachs International | SEK | 55,197,500 | USD | 5,000,000 | (419,794 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/16/2023 | Goldman Sachs International | AUD | 12,250,000 | USD | 7,754,250 | (406,296 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/16/2023 | Goldman Sachs International | NZD | 23,333,333 | USD | 13,055,000 | (1,357,273 | ) | |||||||||||||||
| ||||||||||||||||||||||
11/16/2023 | Goldman Sachs International | MXN | 78,451,000 | USD | 3,800,000 | (398,029 | ) | |||||||||||||||
| ||||||||||||||||||||||
11/20/2023 | Goldman Sachs International | BRL | 70,808,400 | USD | 12,240,000 | (1,441,030 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | PEN | 136,035,000 | USD | 35,651,388 | (938,659 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 21,150,435 | CNY | 145,105,564 | (112,208 | ) | |||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
17 | Invesco International Bond Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | BRL | 920,121,544 | USD | 178,923,345 | $ | (5,551,081 | ) | ||||||||||||||
| ||||||||||||||||||||||
06/12/2023 | J.P. Morgan Chase Bank, N.A. | MXN | 483,775,000 | USD | 25,000,000 | (1,685,826 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | COP | 327,020,165,000 | USD | 67,581,509 | (1,260,880 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | EUR | 16,200,199 | USD | 17,447,477 | (453,466 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | INR | 6,665,905,000 | USD | 80,682,470 | (671,416 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | MXN | 240,706,094 | USD | 12,500,000 | (753,740 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 3,544,617 | COP | 16,281,382,928 | (117,155 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 27,716,000 | EUR | 24,991,601 | (100,708 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 58,300,500 | JPY | 7,701,935,226 | (1,341,253 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | ZAR | 359,983,200 | USD | 19,540,500 | (51,024 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/12/2023 | J.P. Morgan Chase Bank, N.A. | HUF | 2,108,750,000 | USD | 5,407,051 | (693,004 | ) | |||||||||||||||
| ||||||||||||||||||||||
10/16/2023 | J.P. Morgan Chase Bank, N.A. | HUF | 3,991,800,000 | USD | 11,079,999 | (204,432 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Morgan Stanley and Co. International PLC | BRL | 920,121,544 | USD | 183,343,622 | (1,130,805 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | Morgan Stanley and Co. International PLC | BRL | 609,571,244 | USD | 119,870,457 | (1,599,910 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/07/2023 | Morgan Stanley and Co. International PLC | MXN | 122,220,000 | USD | 6,000,000 | (748,647 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | AUD | 29,195,000 | USD | 19,351,906 | (7,686 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | EUR | 149,081,182 | USD | 158,145,172 | (6,586,986 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | GBP | 80,110,865 | USD | 95,214,245 | (5,568,754 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | MXN | 492,998,229 | USD | 26,396,000 | (749,429 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | PLN | 131,710,000 | USD | 29,521,217 | (2,038,158 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | SEK | 188,709,250 | USD | 18,425,911 | (22,356 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/13/2023 | Morgan Stanley and Co. International PLC | BRL | 87,842,000 | USD | 16,700,000 | (676,064 | ) | |||||||||||||||
| ||||||||||||||||||||||
07/13/2023 | Morgan Stanley and Co. International PLC | COP | 20,825,850,000 | USD | 4,250,000 | (114,076 | ) | |||||||||||||||
| ||||||||||||||||||||||
09/29/2023 | Morgan Stanley and Co. International PLC | USD | 1,400,000 | COP | 6,713,000,000 | (16,519 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | CAD | 36,330,000 | USD | 26,725,989 | (115,450 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | EUR | 14,380,000 | USD | 15,813,068 | (76,587 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | USD | 29,249,748 | JPY | 3,820,658,000 | (994,278 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | USD | 1,213,604 | ZAR | 21,995,000 | (16,561 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/15/2023 | Standard Chartered Bank PLC | AUD | 7,000,000 | USD | 4,623,500 | (10,908 | ) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | UBS AG | HUF | 3,708,870,750 | USD | 10,557,629 | (233,892 | ) | |||||||||||||||
| ||||||||||||||||||||||
Subtotal–Depreciation | (59,562,238 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||
Total Forward Foreign Currency Contracts | $(15,090,226 | ) | ||||||||||||||||||||
|
Open Centrally Cleared Credit Default Swap Agreements(a) | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
(Pay)/ | ||||||||||||||||||||||||||||||||||||
Receive | Implied | Upfront | Unrealized | |||||||||||||||||||||||||||||||||
Buy/Sell | Fixed | Payment | Maturity | Credit | Payments Paid | Appreciation | ||||||||||||||||||||||||||||||
Reference Entity | Protection | Rate | Frequency | Date | Spread(b) | Notional Value | (Received) | Value | (Depreciation) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Markit iTraxx Europe Index, Series 37, Version 1 | Buy | (1.00)% | Quarterly | 06/20/2027 | 0.701 | % | EUR 10,750,000 | $ | (99,192 | ) | $ | (136,033 | ) | $ | (36,841 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Brazil Government International Bonds | Buy | (1.00) | Quarterly | 12/20/2027 | 1.978 | USD 5,000,000 | 257,718 | 197,635 | (60,083 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Markit CDX North America High Yield Index, Series 40, Version 1 | Buy | (5.00) | Quarterly | 06/20/2028 | 4.645 | USD 20,000,000 | (280,000 | ) | (282,212 | ) | (2,212 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Societe Generale | Sell | 1.00 | Quarterly | 06/20/2027 | 1.142 | EUR 15,000,000 | 13,420 | (96,113 | ) | (109,533 | ) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Total Centrally Cleared Credit Default Swap Agreements |
| $(108,054 | ) | $ | (316,723 | ) | $(208,669 | ) | ||||||||||||||||||||||||||||
|
(a) | Centrally cleared swap agreements collateralized by $50,284,353 cash held with Counterparties. |
(b) | Implied credit spreads represent the current level, as of April 30, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
18 | Invesco International Bond 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) | |||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||||||
Receive | CPURNSA | At Maturity | (2.44 | )% | At Maturity | 01/18/2033 | USD | 4,000,000 | $ | – | $ 25,222 | $ 25,222 | ||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.01 | ) | Quarterly | 05/24/2032 | COP | 36,300,000,000 | – | 44,506 | 44,506 | |||||||||||||||||||||||||||
Pay | TTHORON | Quarterly | 2.00 | Quarterly | 04/24/2025 | THB | 1,755,000,000 | – | 54,155 | 54,155 | ||||||||||||||||||||||||||||
Receive | 3 Month CZK PRIOBR | Quarterly | (7.02 | ) | Annually | 02/10/2024 | CZK | 1,040,000,000 | – | 62,997 | 62,997 | |||||||||||||||||||||||||||
Pay | SOFR | Annually | 4.11 | Annually | 04/18/2025 | USD | 131,500,000 | – | 63,500 | 63,500 | ||||||||||||||||||||||||||||
Pay | NFIX3FRA | Quarterly | 4.37 | Semi-Annually | 03/23/2028 | NZD | 36,000,000 | – | 67,105 | 67,105 | ||||||||||||||||||||||||||||
Pay | TTHORON | Quarterly | 2.60 | Quarterly | 04/24/2033 | THB | 384,000,000 | – | 68,716 | 68,716 | ||||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 days | 9.25 | 28 days | 02/10/2025 | MXN | 1,075,000,000 | – | 79,214 | 79,214 | ||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (8.54 | ) | Quarterly | 05/27/2032 | COP | 13,500,000,000 | – | 97,643 | 97,643 | |||||||||||||||||||||||||||
Pay | SOFR | Annually | 4.21 | Annually | 04/19/2025 | USD | 65,625,000 | – | 151,396 | 151,396 | ||||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 days | 9.40 | 28 days | 02/10/2025 | MXN | 1,125,000,000 | – | 164,687 | 164,687 | ||||||||||||||||||||||||||||
Receive | SOFR | Annually | (2.94 | ) | Annually | 04/14/2053 | USD | 20,480,000 | – | 172,113 | 172,113 | |||||||||||||||||||||||||||
Receive | BZDIOVRA | At Maturity | (13.14 | ) | At Maturity | 01/02/2024 | BRL | 784,724,489 | – | 176,156 | 176,156 | |||||||||||||||||||||||||||
Pay | 3 Month CDOR | Semi-Annually | 3.99 | Semi-Annually | 02/13/2025 | CAD | 357,500,000 | – | 186,013 | 186,013 | ||||||||||||||||||||||||||||
Receive | BZDIOVRA | At Maturity | (13.11 | ) | At Maturity | 01/02/2024 | BRL | 778,033,887 | – | 209,613 | 209,613 | |||||||||||||||||||||||||||
Pay | 28 Day MXN TIIE | 28 Days | 9.13 | 28 Days | 02/11/2028 | MXN | 233,000,000 | – | 297,796 | 297,796 | ||||||||||||||||||||||||||||
Receive | FBIL Overnight MIBOR | Semi-Annually | (5.65 | ) | Semi-Annually | 02/17/2027 | INR | 2,625,000,000 | – | 400,404 | 400,404 | |||||||||||||||||||||||||||
Pay | SOFR | Annually | 3.37 | Annually | 12/15/2032 | USD | 28,400,000 | – | 454,738 | 454,738 | ||||||||||||||||||||||||||||
Pay | 3 Month CDOR | Semi-Annually | 4.15 | Semi-Annually | 02/14/2025 | CAD | 357,500,000 | – | 577,119 | 577,119 | ||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (7.45 | ) | Quarterly | 04/29/2027 | ZAR | 385,000,000 | – | 598,397 | 598,397 | |||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (7.42 | ) | Quarterly | 05/05/2027 | ZAR | 370,000,000 | – | 599,172 | 599,172 | |||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 12.58 | At Maturity | 01/04/2027 | BRL | 147,410,436 | – | 733,387 | 733,387 | ||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (6.61 | ) | Quarterly | 10/19/2026 | ZAR | 336,700,000 | 1,356 | 900,161 | 898,805 | |||||||||||||||||||||||||||
Pay | 6 Month EURIBOR | Semi-Annually | 3.08 | Annually | 03/16/2033 | EUR | 83,000,000 | – | 903,560 | 903,560 | ||||||||||||||||||||||||||||
Receive | 3 Month JIBAR | Quarterly | (6.65 | ) | Quarterly | 10/11/2026 | ZAR | 350,000,000 | – | 944,193 | 944,193 | |||||||||||||||||||||||||||
Pay | 6 Month EURIBOR | Semi-Annually | 3.74 | Annually | 03/14/2025 | EUR | 194,440,000 | – | 955,886 | 955,886 | ||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (4.20 | ) | Quarterly | 02/08/2031 | COP | 43,000,000,000 | – | 2,523,480 | 2,523,480 | |||||||||||||||||||||||||||
Pay | SOFR | Annually | 3.77 | Annually | 08/09/2033 | USD | 135,300,000 | (31,554 | ) | 7,545,962 | 7,577,516 | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Subtotal – Appreciation |
| (30,198 | ) | 19,057,291 | 19,087,489 | |||||||||||||||||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
19 | Invesco International Bond 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) | |||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||||||
Pay | 6 Month EURIBOR | Semi-Annually | 2.55% | Annually | 04/24/2034 | EUR | 54,000,000 | $ – | $ (1,825,311 | ) | $ (1,825,311 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | SOFR | Annually | (3.53) | Annually | 09/27/2032 | USD | 62,000,000 | – | (1,760,686 | ) | (1,760,686 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | SOFR | At Maturity | (4.20) | At Maturity | 02/16/2025 | USD | 267,500,000 | – | (1,634,746 | ) | (1,634,746 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 11.30 | At Maturity | 01/02/2026 | BRL | 259,730,842 | – | (1,201,695 | ) | (1,201,695 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | SOFR | At Maturity | (4.00) | At Maturity | 02/15/2025 | USD | 267,500,000 | – | (1,131,905 | ) | (1,131,905 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Pay | SONIA | Annually | 4.24 | Annually | 05/30/2025 | GBP | 168,800,000 | – | (970,372 | ) | (970,372 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | FBIL Overnight MIBOR | Semi-Annually | (7.02) | Semi-Annually | 05/25/2027 | INR | 1,875,000,000 | – | (851,114 | ) | (851,114 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Pay | BZDIOVRA | At Maturity | 11.72 | At Maturity | 01/02/2026 | BRL | 248,590,247 | – | (555,734 | ) | (555,734 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | CLICP | Semi-Annually | (6.30) | Semi-Annually | 03/09/2028 | CLP | 18,750,000,000 | – | (533,737) | (533,737) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Pay | SONIA | Annually | 4.25 | Annually | 06/02/2025 | GBP | 94,380,000 | – | (523,283 | ) | (523,283 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | FBIL Overnight MIBOR | Semi-Annually | (6.62) | Semi-Annually | 05/02/2027 | INR | 1,800,000,000 | – | (453,514 | ) | (453,514 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | 6 Month WIBOR | Semi-Annually | (7.61) | Annually | 09/21/2024 | PLN | 127,000,000 | – | (366,023 | ) | (366,023 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.86) | Quarterly | 09/09/2032 | COP | 36,000,000,000 | – | (359,459 | ) | (359,459 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.91) | Quarterly | 01/17/2028 | COP | 60,845,000,000 | – | (296,934 | ) | (296,934 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | TTHORON | Quarterly | (2.26) | Quarterly | 04/24/2028 | THB | 1,450,000,000 | – | (200,927 | ) | (200,927 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.85) | Quarterly | 07/21/2032 | COP | 17,843,000,000 | – | (187,247 | ) | (187,247 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (9.71) | Quarterly | 07/21/2032 | COP | 16,883,000,000 | – | (147,182 | ) | (147,182 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Pay | SOFR | Annually | 2.94 | Annually | 04/24/2034 | USD | 37,500,000 | – | (123,872 | ) | (123,872 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Receive | COOVIBR | Quarterly | (11.46) | Quarterly | 11/01/2024 | COP | 137,500,000,000 | – | (49,779 | ) | (49,779 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Pay | SOFR | Annually | 3.34 | Annually | 04/14/2028 | USD | 87,800,000 | – | (33,370 | ) | (33,370 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Pay | CLICP | Semi-Annually | 7.87 | Semi-Annually | 04/11/2025 | CLP | 21,000,000,000 | – | (7,048 | ) | (7,048 | ) | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Subtotal – Depreciation |
| – | (13,213,938 | ) | (13,213,938 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Total Centrally Cleared Interest Rate Swap Agreements |
| $(30,198 | ) | $ 5,843,353 | $ 5,873,551 | |||||||||||||||||||||||||||||||||
|
(a) | Centrally cleared swap agreements collateralized by $50,284,353 cash held with Counterparties. |
Open Over-The-Counter Credit Default Swap Agreements(a) | ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
(Pay)/ | Implied | Upfront | Unrealized | |||||||||||||||||||||||||||||||||||||||
Buy/Sell | Receive | Payment | Maturity | Credit | Notional | Payments Paid | Appreciation | |||||||||||||||||||||||||||||||||||
Counterparty | Reference Entity | Protection | Fixed Rate | Frequency | Date | Spread(b) | Value | (Received) | Value | (Depreciation) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Citibank, N.A. | Assicurazioni Generali S.p.A. | Sell | 1.00 | % | Quarterly | 12/20/2024 | 0.537 | % | EUR | 5,000,000 | $ | 32,308 | $ | 40,988 | $ | 8,680 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Royal Bank of Scotland Group PLC (The) | Buy | (1.00 | ) | Quarterly | 06/20/2027 | 1.841 | EUR | 7,500,000 | 217,708 | 262,898 | 45,190 | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Markit iTraxx Europe Index, Series 30, Version 1 | Sell | 1.00 | Quarterly | 12/20/2023 | 5.893 | EUR | 20,000,000 | (1,374,434 | ) | (682,063 | ) | 692,371 | |||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Subtotal–Appreciation |
| (1,124,418 | ) | (378,177 | ) | 746,241 | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Citibank, N.A. | Assicurazioni Generali S.p.A. | Buy | (1.00 | ) | Quarterly | 12/20/2024 | 0.990 | EUR | 5,000,000 | 20,988 | (887 | ) | (21,875 | ) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Goldman Sachs International | Markit iTraxx Europe Crossover Index, Series 32, Version 5 | Sell | 5.00 | Quarterly | 12/20/2024 | 3.010 | EUR | 10,000,000 | 441,010 | 349,637 | (91,373 | ) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Subtotal–Depreciation |
| 461,998 | 348,750 | (113,248 | ) | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Total Open Over-The-Counter Credit Default Swap Agreements |
| $ | (662,420 | ) | $ | (29,427 | ) | $ | 632,993 | |||||||||||||||||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
20 | Invesco International Bond Fund |
(a) | Over-The-Counter options purchased, options written and swap agreements are collateralized by cash held with Counterparties in the amount of $61,115,000. |
(b) | Implied credit spreads represent the current level, as of April 30, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Abbreviations:
AUD | – Australian Dollar | |
BRL | – Brazilian Real | |
BZDIOVRA | – Brazil Ceptip DI Interbank Deposit Rate | |
CAD | – Canadian Dollar | |
CDOR | – Canadian Dealer Offered Rate | |
CLICP | – Sinacofi Chile Interbank Rate Avg (CAMARA) | |
CLP | – Chile Peso | |
CNH | – Chinese Renminbi | |
CNY | – Chinese Yuan Renminbi | |
COOVIBR | – Colombia IBR Overnight Nominal Interbank Reference Rate | |
COP | – Colombia Peso | |
CZK | – Czech Koruna | |
EUR | – Euro | |
EURIBOR | – Euro Interbank Offered Rate | |
FBIL | – Financial Benchmarks India Private Ltd. | |
GBP | – British Pound Sterling | |
HUF | – Hungarian Forint | |
IDR | – Indonesian Rupiah | |
INR | – Indian Rupee | |
JIBAR | – Johannesburg Interbank Average Rate | |
JPY | – Japanese Yen | |
KRW | – South Korean Won | |
MIBOR | – Mumbai Interbank Offered Rate | |
MXN | – Mexican Peso | |
NOK | – Norwegian Krone | |
NZD | – New Zealand Dollar | |
PEN | – Peruvian Sol | |
PLN | – Polish Zloty | |
SEK | – Swedish Krona | |
SGD | – Singapore Dollar | |
SOFR | – Secured Overnight Financing Rate | |
SONIA | – Sterling Overnight Index Average | |
THB | – Thai Baht | |
TIIE | – Interbank Equilibrium Interest Rate | |
TONAR | – Tokyo Overnight Average Rate | |
TTHORON | – Thai Overnight Repurchase Rate | |
TWD | – New Taiwan Dollar | |
USD | – U.S. Dollar | |
WIBOR | – Warsaw Interbank Offered Rate | |
ZAR | – South African Rand |
Portfolio Composition
By security type, based on Net Assets
as of April 30, 2023
Non-U.S. Dollar Denominated Bonds & Notes | 58.65% | |||
U.S. Dollar Denominated Bonds & Notes | 13.86 | |||
Asset-Backed Securities | 8.62 | |||
U.S. Treasury Securities | 3.94 | |||
Common Stocks & Other Equity Interests | 2.09 | |||
Open Over-The-Counter Foreign Currency Options Purchased | 1.48 | |||
Open Over-The-Counter Interest Rate Swaptions Purchased | 1.18 | |||
Security Types Each Less Than 1% of Portfolio | 0.57 | |||
Money Market Funds Plus Other Assets Less Liabilities | 9.61 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
21 | Invesco International Bond Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 1,241,984,764 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $52,251,145) | 52,250,561 | |||
| ||||
Other investments: | ||||
Variation margin receivable – futures contracts | 1,888,255 | |||
| ||||
Swaps receivable – OTC | 95,498 | |||
| ||||
Unrealized appreciation on swap agreements – OTC | 746,241 | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 44,472,012 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral – exchange-traded futures contracts | 5,596,137 | |||
| ||||
Cash collateral – centrally cleared swap agreements | 50,284,353 | |||
| ||||
Cash collateral – OTC Derivatives | 61,115,000 | |||
| ||||
Cash | 39,777,571 | |||
| ||||
Foreign currencies, at value (Cost $16,503,536) | 15,587,090 | |||
| ||||
Receivable for: | ||||
Investments sold | 8,537,484 | |||
| ||||
Fund shares sold | 768,049 | |||
| ||||
Dividends | 136,156 | |||
| ||||
Interest | 22,065,629 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 350,327 | |||
| ||||
Other assets | 71,636 | |||
| ||||
Total assets | 1,545,726,763 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Options written, at value (premiums received $72,498,318) | 75,514,022 | |||
| ||||
Variation margin payable – centrally cleared swap agreements | 453,635 | |||
| ||||
Premiums received on swap agreements – OTC | 662,420 | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 59,562,238 | |||
| ||||
Swaps payable – OTC | 15,916 | |||
| ||||
Unrealized depreciation on swap agreements– OTC | 113,248 | |||
| ||||
Payable for: | ||||
Investments purchased | 21,909,564 | |||
| ||||
Dividends | 779,494 | |||
| ||||
Fund shares reacquired | 2,084,282 | |||
| ||||
Accrued foreign taxes | 4,853 | |||
| ||||
Collateral upon return of securities loaned | 9,182,703 | |||
| ||||
Accrued fees to affiliates | 773,193 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 915 | |||
| ||||
Accrued other operating expenses | 351,656 | |||
| ||||
Trustee deferred compensation and retirement plans | 350,327 | |||
| ||||
Total liabilities | 171,758,466 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,373,968,297 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 1,744,771,857 | ||
| ||||
Distributable earnings (loss) | (370,803,560 | ) | ||
| ||||
$ | 1,373,968,297 | |||
| ||||
Net Assets: | ||||
Class A | $ | 450,675,852 | ||
| ||||
Class C | $ | 17,117,228 | ||
| ||||
Class R | $ | 41,758,710 | ||
| ||||
Class Y | $ | 487,779,346 | ||
| ||||
Class R5 | $ | 1,163,632 | ||
| ||||
Class R6 | $ | 375,473,529 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 103,913,617 | |||
| ||||
Class C | 3,962,133 | |||
| ||||
Class R | 9,656,898 | |||
| ||||
Class Y | 112,537,242 | |||
| ||||
Class R5 | 267,866 | |||
| ||||
Class R6 | 86,691,420 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 4.34 | ||
| ||||
Maximum offering price per share | $ | 4.53 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 4.32 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 4.32 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 4.33 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 4.34 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 4.33 | ||
|
* | At April 30, 2023, securities with an aggregate value of $8,958,127 were on loan to brokers. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
22 | Invesco International Bond Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest (net of foreign withholding taxes of $397,553) | $ | 38,578,785 | ||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $25,619) | 1,464,874 | |||
| ||||
Total investment income | 40,043,659 | |||
| ||||
Expenses: | ||||
Advisory fees | 4,123,788 | |||
| ||||
Administrative services fees | 95,458 | |||
| ||||
Custodian fees | 199,841 | |||
| ||||
Distribution fees: | ||||
| ||||
Class A | 560,613 | |||
| ||||
Class C | 88,858 | |||
| ||||
Class R | 105,832 | |||
| ||||
Transfer agent fees – A, C, R and Y | 1,034,085 | |||
| ||||
Transfer agent fees – R5 | 537 | |||
| ||||
Transfer agent fees – R6 | 45,644 | |||
| ||||
Trustees’ and officers’ fees and benefits | 10,235 | |||
| ||||
Registration and filing fees | 48,463 | |||
| ||||
Reports to shareholders | 82,278 | |||
| ||||
Professional services fees | 58,606 | |||
| ||||
Other | 54,856 | |||
| ||||
Total expenses | 6,509,094 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (708,254 | ) | ||
| ||||
Net expenses | 5,800,840 | |||
| ||||
Net investment income | 34,242,819 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (28,327,421 | ) | ||
| ||||
Affiliated investment securities | 2,951 | |||
| ||||
Foreign currencies | 3,736 | |||
| ||||
Forward foreign currency contracts | 7,260,693 | |||
| ||||
Futures contracts | 7,648,591 | |||
| ||||
Option contracts written | 18,294,028 | |||
| ||||
Swap agreements | (12,140,198 | ) | ||
| ||||
(7,257,620 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities (net of foreign taxes of $4,853) | 104,436,427 | |||
| ||||
Affiliated investment securities | (999 | ) | ||
| ||||
Foreign currencies | 1,352,768 | |||
| ||||
Forward foreign currency contracts | (10,570,191 | ) | ||
| ||||
Futures contracts | (4,703,097 | ) | ||
| ||||
Option contracts written | 15,853,091 | |||
| ||||
Swap agreements | 15,468,114 | |||
| ||||
121,836,113 | ||||
| ||||
Net realized and unrealized gain | 114,578,493 | |||
| ||||
Net increase in net assets resulting from operations | $ | 148,821,312 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
23 | Invesco International Bond Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, 2023 | October 31, 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 34,242,819 | $ | 58,643,561 | ||||
| ||||||||
Net realized gain (loss) | (7,257,620 | ) | (303,143,970 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 121,836,113 | (117,343,724 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 148,821,312 | (361,844,133 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (8,671,157 | ) | – | |||||
| ||||||||
Class C | (269,886 | ) | – | |||||
| ||||||||
Class R | (748,386 | ) | – | |||||
| ||||||||
Class Y | (9,946,196 | ) | – | |||||
| ||||||||
Class R5 | (21,756 | ) | – | |||||
| ||||||||
Class R6 | (6,346,530 | ) | – | |||||
| ||||||||
Total distributions from distributable earnings | (26,003,911 | ) | – | |||||
| ||||||||
Return of capital: | ||||||||
Class A | – | (17,732,927 | ) | |||||
| ||||||||
Class C | – | (542,467 | ) | |||||
| ||||||||
Class R | – | (1,451,576 | ) | |||||
| ||||||||
Class Y | – | (24,106,074 | ) | |||||
| ||||||||
Class R5 | – | (22,987 | ) | |||||
| ||||||||
Class R6 | – | (12,876,954 | ) | |||||
| ||||||||
Total return of capital | – | (56,732,985 | ) | |||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (41,099,610 | ) | (102,712,578 | ) | ||||
| ||||||||
Class C | (1,978,720 | ) | (7,390,569 | ) | ||||
| ||||||||
Class R | (3,117,304 | ) | (7,684,378 | ) | ||||
| ||||||||
Class Y | (54,962,816 | ) | (266,241,633 | ) | ||||
| ||||||||
Class R5 | 107,739 | 1,078,038 | ||||||
| ||||||||
Class R6 | 61,372,060 | (96,211,294 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (39,678,651 | ) | (479,162,414 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | 83,138,750 | (897,739,532 | ) | |||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,290,829,547 | 2,188,569,079 | ||||||
| ||||||||
End of period | $ | 1,373,968,297 | $ | 1,290,829,547 | ||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
24 | Invesco International Bond Fund |
Consolidated Financial Highlights
(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(c) | Ratio of net investment income to average net assets | Portfolio turnover (d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $ | 3.96 | $ | 0.11 | $ | 0.35 | $ | 0.46 | $ | (0.08 | ) | $ | – | $ | (0.08 | ) | $ | 4.34 | 11.66 | %(e) | $ | 450,676 | 1.01 | %(e)(f) | 1.15 | %(e)(f) | 5.04 | %(e)(f) | 41 | % | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 5.08 | 0.15 | (1.13 | ) | (0.98 | ) | – | (0.14 | ) | (0.14 | ) | 3.96 | (19.50 | ) | 449,632 | 1.16 | (g) | 1.18 | (g) | 3.21 | (g) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.41 | 0.15 | (0.33 | ) | (0.18 | ) | – | (0.15 | ) | (0.15 | ) | 5.08 | (3.54 | ) | 690,866 | 1.01 | 1.07 | 2.73 | 197 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 5.53 | 0.17 | (0.10 | ) | 0.07 | (0.12 | ) | (0.07 | ) | (0.19 | ) | 5.41 | 1.35 | 894,798 | 1.00 | 1.04 | 3.17 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 5.41 | 0.02 | 0.12 | 0.14 | – | (0.02 | ) | (0.02 | ) | 5.53 | 2.60 | 1,043,265 | 1.01 | (f) | 1.03 | (f) | 4.60 | (f) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 5.47 | 0.28 | (0.06 | ) | 0.22 | – | (0.28 | ) | (0.28 | ) | 5.41 | 4.15 | 1,039,683 | 0.99 | 1.02 | 5.15 | 105 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 5.95 | 0.25 | (0.48 | ) | (0.23 | ) | (0.13 | ) | (0.12 | ) | (0.25 | ) | 5.47 | (4.20 | ) | 1,082,539 | 0.99 | 1.01 | 4.31 | 115 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 3.94 | 0.09 | 0.35 | 0.44 | (0.06 | ) | – | (0.06 | ) | 4.32 | 11.30 | 17,117 | 1.77 | (f) | 1.91 | (f) | 4.28 | (f) | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 5.06 | 0.11 | (1.12 | ) | (1.01 | ) | – | (0.11 | ) | (0.11 | ) | 3.94 | (20.21 | ) | 17,454 | 1.91 | (g) | 1.93 | (g) | 2.46 | (g) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.39 | 0.11 | (0.33 | ) | (0.22 | ) | – | (0.11 | ) | (0.11 | ) | 5.06 | (4.29 | ) | 30,414 | 1.76 | 1.82 | 1.98 | 197 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 5.51 | 0.13 | (0.10 | ) | 0.03 | (0.09 | ) | (0.06 | ) | (0.15 | ) | 5.39 | 0.58 | 64,440 | 1.75 | 1.79 | 2.42 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 5.39 | 0.02 | 0.12 | 0.14 | – | (0.02 | ) | (0.02 | ) | 5.51 | 2.55 | 113,329 | 1.77 | (f) | 1.79 | (f) | 3.84 | (f) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 5.45 | 0.24 | (0.06 | ) | 0.18 | – | (0.24 | ) | (0.24 | ) | 5.39 | 3.36 | 116,134 | 1.74 | 1.77 | 4.39 | 105 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 5.93 | 0.21 | (0.48 | ) | (0.27 | ) | (0.11 | ) | (0.10 | ) | (0.21 | ) | 5.45 | (4.79 | ) | 291,793 | 1.74 | 1.76 | 3.56 | 115 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 3.95 | 0.10 | 0.35 | 0.45 | (0.08 | ) | – | (0.08 | ) | 4.32 | 11.28 | 41,759 | 1.27 | (f) | 1.41 | (f) | 4.78 | (f) | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 5.06 | 0.14 | (1.12 | ) | (0.98 | ) | – | (0.13 | ) | (0.13 | ) | 3.95 | (19.59 | ) | 40,962 | 1.41 | (g) | 1.43 | (g) | 2.96 | (g) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.39 | 0.14 | (0.34 | ) | (0.20 | ) | – | (0.13 | ) | (0.13 | ) | 5.06 | (3.80 | ) | 60,913 | 1.26 | 1.32 | 2.48 | 197 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 5.51 | 0.15 | (0.10 | ) | 0.05 | (0.10 | ) | (0.07 | ) | (0.17 | ) | 5.39 | 1.09 | 79,763 | 1.25 | 1.29 | 2.92 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 5.39 | 0.02 | 0.12 | 0.14 | – | (0.02 | ) | (0.02 | ) | 5.51 | 2.59 | 99,080 | 1.27 | (f) | 1.29 | (f) | 4.34 | (f) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 5.45 | 0.27 | (0.06 | ) | 0.21 | – | (0.27 | ) | (0.27 | ) | 5.39 | 3.88 | 98,380 | 1.24 | 1.27 | 4.90 | 105 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 5.93 | 0.24 | (0.49 | ) | (0.25 | ) | (0.12 | ) | (0.11 | ) | (0.23 | ) | 5.45 | (4.47 | ) | 117,668 | 1.23 | 1.25 | 4.06 | 115 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 3.96 | 0.11 | 0.35 | 0.46 | (0.09 | ) | – | (0.09 | ) | 4.33 | 11.53 | 487,779 | 0.77 | (f) | 0.91 | (f) | 5.28 | (f) | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 5.08 | 0.16 | (1.12 | ) | (0.96 | ) | – | (0.16 | ) | (0.16 | ) | 3.96 | (19.28 | ) | 497,025 | 0.91 | (g) | 0.93 | (g) | 3.46 | (g) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.40 | 0.16 | (0.32 | ) | (0.16 | ) | – | (0.16 | ) | (0.16 | ) | 5.08 | (3.11 | ) | 936,624 | 0.76 | 0.82 | 2.98 | 197 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 5.53 | 0.18 | (0.11 | ) | 0.07 | (0.12 | ) | (0.08 | ) | (0.20 | ) | 5.40 | 1.41 | 1,105,508 | 0.75 | 0.79 | 3.42 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 5.41 | 0.02 | 0.12 | 0.14 | – | (0.02 | ) | (0.02 | ) | 5.53 | 2.62 | 1,623,640 | 0.77 | (f) | 0.79 | (f) | 4.84 | (f) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 5.47 | 0.29 | (0.05 | ) | 0.24 | – | (0.30 | ) | (0.30 | ) | 5.41 | 4.40 | 1,611,797 | 0.74 | 0.77 | 5.39 | 105 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 5.95 | 0.26 | (0.48 | ) | (0.22 | ) | (0.14 | ) | (0.12 | ) | (0.26 | ) | 5.47 | (3.80 | ) | 2,597,821 | 0.74 | 0.76 | 4.56 | 115 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 3.96 | 0.11 | 0.36 | 0.47 | (0.09 | ) | – | (0.09 | ) | 4.34 | 11.79 | 1,164 | 0.77 | (f) | 0.81 | (f) | 5.28 | (f) | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 5.08 | 0.15 | (1.11 | ) | (0.96 | ) | – | (0.16 | ) | (0.16 | ) | 3.96 | (19.23 | ) | 964 | 0.84 | (g) | 0.84 | (g) | 3.53 | (g) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.41 | 0.16 | (0.32 | ) | (0.16 | ) | – | (0.17 | ) | (0.17 | ) | 5.08 | (3.16 | ) | 70 | 0.64 | 0.64 | 3.10 | 197 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 5.53 | 0.19 | (0.11 | ) | 0.08 | (0.12 | ) | (0.08 | ) | (0.20 | ) | 5.41 | 1.71 | 10 | 0.61 | 0.62 | 3.56 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 5.41 | 0.02 | 0.12 | 0.14 | – | (0.02 | ) | (0.02 | ) | 5.53 | 2.62 | 10 | 0.68 | (f) | 0.68 | (f) | 4.93 | (f) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended 09/30/19(h) | 5.41 | 0.11 | (0.01 | ) | 0.10 | – | (0.10 | ) | (0.10 | ) | 5.41 | 1.74 | 10 | 0.65 | (f) | 0.67 | (f) | 5.48 | (f) | 105 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 3.95 | 0.11 | 0.36 | 0.47 | (0.09 | ) | – | (0.09 | ) | 4.33 | 11.84 | 375,474 | 0.73 | (f) | 0.74 | (f) | 5.32 | (f) | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 5.07 | 0.17 | (1.13 | ) | (0.96 | ) | – | (0.16 | ) | (0.16 | ) | 3.95 | (19.25 | ) | 284,792 | 0.78 | (g) | 0.78 | (g) | 3.59 | (g) | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 5.40 | 0.17 | (0.33 | ) | (0.16 | ) | – | (0.17 | ) | (0.17 | ) | 5.07 | (3.17 | ) | 469,683 | 0.64 | 0.65 | 3.10 | 197 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 5.52 | 0.19 | (0.10 | ) | 0.09 | (0.13 | ) | (0.08 | ) | (0.21 | ) | 5.40 | 1.75 | 574,695 | 0.61 | 0.62 | 3.56 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
One month ended 10/31/19 | 5.40 | 0.02 | 0.12 | 0.14 | – | (0.02 | ) | (0.02 | ) | 5.52 | 2.64 | 878,616 | 0.60 | (f) | 0.62 | (f) | 5.01 | (f) | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/19 | 5.46 | 0.30 | (0.06 | ) | 0.24 | – | (0.30 | ) | (0.30 | ) | 5.40 | 4.55 | 857,498 | 0.60 | 0.62 | 5.53 | 105 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 09/30/18 | 5.94 | 0.27 | (0.48 | ) | (0.21 | ) | (0.14 | ) | (0.13 | ) | (0.27 | ) | 5.46 | (3.83 | ) | 1,404,290 | 0.58 | 0.60 | 4.71 | 115 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Does not include estimated acquired fund fees from underlying funds of 0.01%, 0.01% and 0.01% for the one month ended October 31, 2019 and the years ended September 30, 2019 and 2018 respectively. |
(d) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
(e) | The total return, ratio of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for the six months ended April 30, 2023. |
(f) | Annualized. |
(g) | Ratios include interest, facilities and maintenance fees of 0.15% for the year ended October 31, 2022. (h) Commencement date after the close of business on May 24, 2019. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
25 | Invesco International Bond Fund |
Notes to Consolidated Financial Statements
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco International Bond Fund (the “Fund”) is a series portfolio of AIM Investment Funds (Invesco Investment Funds) (the “Trust”). The Trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these consolidated financial statements pertains only to the Fund and the Invesco International Bond Fund (Cayman) Ltd. (the “Subsidiary”), a wholly-owned and controlled subsidiary by the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to Regulation S securities primarily through investments in the Susbsidiary. The Subsidiary was organized by the Fund to invest in Regulation S securities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek total return.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the
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inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust 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. | 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 |
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(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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, there were no securities lending transactions with the Adviser. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Consolidated Statement of Operations.
L. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
M. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
N. | Futures Contracts – The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity, commodity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities. |
O. | 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 |
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option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written. |
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Consolidated Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Consolidated Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
P. | Put Options Purchased and Written – The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. |
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Consolidated Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
Q. | Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and 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
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maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of April 30, 2023, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
R. | LIBOR Transition Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates will no longer be published after June 2023. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that will replace LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Funds may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
S. | Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
T. | Collateral –To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
U. | Other Risks – Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
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’ claims. Junk bonds are less liquid than investment grade debt securities and their prices tend to be more volatile.
The Fund is non-diversified and may invest in securities of fewer issuers than if it were diversified. Thus, the value of the Fund’s shares may vary more widely and the Fund may be subject to greater market and credit risk than if the Fund invested more broadly.
30 | Invesco International Bond Fund |
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate* | |||
| ||||
First $200 million | 0.750% | |||
| ||||
Next $200 million | 0.720% | |||
| ||||
Next $200 million | 0.690% | |||
| ||||
Next $200 million | 0.660% | |||
| ||||
Next $200 million | 0.600% | |||
| ||||
Next $4 billion | 0.500% | |||
| ||||
Next $10 billion | 0.480% | |||
| ||||
Over $15 billion | 0.450% | |||
|
* | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.62%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
Effective March 1, 2023, through at least February 29, 2024, the Adviser has contractually agreed to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.04%, 1.79%, 1.29%, 0.79%, 0.79%, and 0.79%, respectively, of the Fund’s average daily net assets (the “expense limits”). Prior to March 1, 2023, the Adviser had contractually agreed, 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 1.01%, 1.76%, 1.26%, 0.76%, 0.76%, and 0.76%, respectively, of the Fund’s average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waivers and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expenses on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate February 29, 2024. 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, 2025, 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, 2023, the Adviser waived advisory fees of $37,812 and reimbursed class level expenses of $288,789, $11,668, $27,826, $324,392, $164 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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $8,558 in front-end sales commissions from the sale of Class A shares and $194 and $(699) 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.
31 | Invesco International Bond Fund |
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | Prices are determined using quoted prices in an active market for identical assets. | |
Level 2 – | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
Level 3 – | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | ||||||||||||||||
| ||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | $ | – | $ | 805,793,843 | $ | – | $ | 805,793,843 | ||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 190,472,783 | – | 190,472,783 | ||||||||||||
| ||||||||||||||||
Asset-Backed Securities | – | 104,578,432 | 13,871,577 | 118,450,009 | ||||||||||||
| ||||||||||||||||
U.S. Treasury Securities | – | 54,151,616 | – | 54,151,616 | ||||||||||||
| ||||||||||||||||
Common Stocks & Other Equity Interests | 28,744,784 | – | – | 28,744,784 | ||||||||||||
| ||||||||||||||||
Preferred Stocks | – | 7,795,130 | – | 7,795,130 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 43,068,442 | 9,182,119 | – | 52,250,561 | ||||||||||||
| ||||||||||||||||
Options Purchased | – | 36,576,599 | – | 36,576,599 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 71,813,226 | 1,208,550,522 | 13,871,577 | 1,294,235,325 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 1,292,720 | – | – | 1,292,720 | ||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 44,472,012 | – | 44,472,012 | ||||||||||||
| ||||||||||||||||
Swap Agreements | – | 19,833,730 | – | 19,833,730 | ||||||||||||
| ||||||||||||||||
1,292,720 | 64,305,742 | – | 65,598,462 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | (1,327,272 | ) | – | – | (1,327,272 | ) | ||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (59,562,238 | ) | – | (59,562,238 | ) | ||||||||||
| ||||||||||||||||
Options Written | – | (75,514,022 | ) | – | (75,514,022 | ) | ||||||||||
| ||||||||||||||||
Swap Agreements | – | (13,535,855 | ) | – | (13,535,855 | ) | ||||||||||
| ||||||||||||||||
(1,327,272 | ) | (148,612,115 | ) | – | (149,939,387 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | (34,552 | ) | (84,306,373 | ) | – | (84,340,925 | ) | |||||||||
| ||||||||||||||||
Total Investments | $ | 71,778,674 | $ | 1,124,244,149 | $ | 13,871,577 | $ | 1,209,894,400 | ||||||||
|
* | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). Options written are shown at value. |
NOTE 4–Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
32 | Invesco International Bond Fund |
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2023:
Value | ||||||||||||||||
Derivative Assets | Credit Risk | Currency Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on futures contracts –Exchange-Traded(a) | $ | – | $ | – | $ | 1,292,720 | $ | 1,292,720 | ||||||||
| ||||||||||||||||
Unrealized appreciation on swap agreements – Centrally Cleared(a) | – | – | 19,087,489 | 19,087,489 | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | – | 44,472,012 | – | 44,472,012 | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on swap agreements – OTC | 746,241 | – | – | 746,241 | ||||||||||||
| ||||||||||||||||
Options purchased, at value – OTC(b) | – | 20,405,331 | 16,171,268 | 36,576,599 | ||||||||||||
| ||||||||||||||||
Total Derivative Assets | 746,241 | 64,877,343 | 36,551,477 | 102,175,061 | ||||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | – | – | (20,380,209 | ) | (20,380,209 | ) | ||||||||||
| ||||||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 746,241 | $ | 64,877,343 | $ | 16,171,268 | $ | 81,794,852 | ||||||||
| ||||||||||||||||
Value | ||||||||||||||||
Derivative Liabilities | Credit Risk | Currency Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized depreciation on futures contracts –Exchange-Traded(a) | $ | – | $ | – | $ | (1,327,272 | ) | $ | (1,327,272 | ) | ||||||
| ||||||||||||||||
Unrealized depreciation on swap agreements – Centrally Cleared(a) | (208,669 | ) | – | (13,213,938 | ) | (13,422,607 | ) | |||||||||
| ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | – | (59,562,238 | ) | – | (59,562,238 | ) | ||||||||||
| ||||||||||||||||
Unrealized depreciation on swap agreements – OTC | (113,248 | ) | – | – | (113,248 | ) | ||||||||||
| ||||||||||||||||
Options written, at value – OTC | (613,018 | ) | (14,983,923 | ) | (59,917,081 | ) | (75,514,022 | ) | ||||||||
| ||||||||||||||||
Total Derivative Liabilities | (934,935 | ) | (74,546,161 | ) | (74,458,291 | ) | (149,939,387 | ) | ||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | 208,669 | – | 14,541,210 | 14,749,879 | ||||||||||||
| ||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (726,266 | ) | $ | (74,546,161 | ) | $ | (59,917,081 | ) | $ | (135,189,508 | ) | ||||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
(b) | Options purchased, at value as reported in the Consolidated Schedule of Investments. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of April 30, 2023.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||||||||||||||||||||||||||
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 | Net Amount | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Bank of America, N.A. | $ | 1,998,372 | $ | 3,468,164 | $ | – | $ | 5,466,536 | $ | (4,553,446 | ) | $ | (9,721,110 | ) | $ | – | $ | (14,274,556 | ) | $ | (8,808,020 | ) | $– | $ | 8,790,000 | $ | (18,020 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Barclays Bank PLC | – | – | – | – | (115,048 | ) | (1,064,443 | ) | – | (1,179,491 | ) | (1,179,491 | ) | – | 1,179,491 | – | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
BNP Paribas S.A. | 208,450 | – | – | 208,450 | (1,378,506 | ) | – | – | (1,378,506 | ) | (1,170,056 | ) | – | 1,170,056 | – | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Citibank, N.A. | 3,174,083 | – | 15,046 | 3,189,129 | (1,134,545 | ) | – | (28,241 | ) | (1,162,786 | ) | 2,026,343 | – | (1,880,000 | ) | 146,343 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Deutsche Bank AG | 5,664,012 | – | – | 5,664,012 | (4,032,153 | ) | – | – | (4,032,153 | ) | 1,631,859 | – | (1,631,859 | ) | – | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Goldman Sachs | ||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
International | 5,676,981 | 11,340,885 | 63,666 | 17,081,532 | (13,706,622 | ) | (9,917,806 | ) | – | (23,624,428 | ) | (6,542,896 | ) | – | 6,542,896 | – | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
HSBC Bank USA | 1,236,717 | – | – | 1,236,717 | (1,050,867 | ) | – | – | (1,050,867 | ) | 185,850 | (185,850 | ) | – | – | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 5,651,096 | 8,179,389 | 763,027 | 14,593,512 | (12,883,985 | ) | (21,991,121 | ) | (100,923 | ) | (34,976,029 | ) | (20,382,517 | ) | – | 18,949,000 | (1,433,517 | ) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Morgan Stanley and Co. International PLC | 20,472,468 | 13,464,153 | – | 33,936,621 | (19,259,390 | ) | (32,819,542 | ) | – | (52,078,932 | ) | (18,142,311 | ) | – | – | (18,142,311 | ) | |||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Royal Bank of Canada | 83,681 | – | – | 83,681 | (1,202,876 | ) | – | – | (1,202,876 | ) | (1,119,195 | ) | – | 400,000 | (719,195 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Standard Chartered Bank PLC | 306,152 | 124,008 | – | 430,160 | (10,908 | ) | – | – | (10,908 | ) | 419,252 | – | (250,000 | ) | 169,252 | |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
UBS AG | – | – | – | – | (233,892 | ) | – | – | (233,892 | ) | (233,892 | ) | – | – | (233,892 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 44,472,012 | $ | 36,576,599 | $ | 841,739 | $ | 81,890,350 | $ | (59,562,238 | ) | $ | (75,514,022 | ) | $ | (129,164 | ) | $ | (135,205,424 | ) | $ | (53,315,074 | ) | $ | (185,850 | ) | $ | 33,269,584 | $ | (20,231,340 | ) | |||||||||||||||||
|
33 | Invesco International Bond Fund |
Effect of Derivative Investments for the six months ended April 30, 2023
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 | Currency | Interest | ||||||||||||||
Risk | Risk | Rate Risk | Total | |||||||||||||
| ||||||||||||||||
Realized Gain (Loss): | ||||||||||||||||
Forward foreign currency contracts | $ | - | $ | 7,260,693 | $ | - | $ | 7,260,693 | ||||||||
| ||||||||||||||||
Futures contracts | - | - | 7,648,591 | 7,648,591 | ||||||||||||
| ||||||||||||||||
Options purchased(a) | - | 11,294,353 | 21,059,588 | 32,353,941 | ||||||||||||
| ||||||||||||||||
Options written | - | 11,438,513 | 6,855,515 | 18,294,028 | ||||||||||||
| ||||||||||||||||
Swap agreements | (2,902,039 | ) | - | (9,238,159 | ) | (12,140,198 | ) | |||||||||
| ||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||
Forward foreign currency contracts | - | (10,570,191 | ) | - | (10,570,191 | ) | ||||||||||
| ||||||||||||||||
Futures contracts | - | - | (4,703,097 | ) | (4,703,097 | ) | ||||||||||
| ||||||||||||||||
Options purchased(a) | (944,391 | ) | (4,892,315 | ) | (39,070,840 | ) | (44,907,546 | ) | ||||||||
| ||||||||||||||||
Options written | 709,114 | 4,881,616 | 10,262,361 | 15,853,091 | ||||||||||||
| ||||||||||||||||
Swap agreements | 3,495,890 | - | 11,972,224 | 15,468,114 | ||||||||||||
| ||||||||||||||||
Total | $ | 358,574 | $ | 19,412,669 | $ | 4,786,183 | $ | 24,557,426 | ||||||||
|
(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 | Swaptions Purchased | Foreign Currency Options Purchased | Swaptions Written | Foreign Currency Options Written | Swap Agreements | ||||||||||||||||||||||
Average notional value | $ | 4,723,333,171 | $ | 414,038,012 | $ | 560,543,389 | $ | 1,165,566,789 | $ | 3,152,510,127 | $ | 1,097,559,088 | $ | 2,459,643,389 |
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $17,603.
NOTE 6–Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
Not subject to expiration | $ | 198,541,915 | $37,502,202 | $ | 236,044,117 |
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
34 | Invesco International Bond Fund |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $415,418,501 and $445,219,840, 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 | $ | 128,355,821 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (264,299,660 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (135,943,839 | ) | |
|
Cost of investments for tax purposes is $1,345,175,819.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended | Year ended | |||||||||||||||
April 30, 2023(a) | October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 2,557,332 | $ | 10,991,436 | 6,791,760 | $ | 31,312,761 | ||||||||||
| ||||||||||||||||
Class C | 219,714 | 940,499 | 482,560 | 2,196,516 | ||||||||||||
| ||||||||||||||||
Class R | 497,579 | 2,131,191 | 1,266,442 | 5,839,373 | ||||||||||||
| ||||||||||||||||
Class Y | 14,636,669 | 63,086,658 | 39,767,405 | 189,983,572 | ||||||||||||
| ||||||||||||||||
Class R5 | 32,402 | 141,550 | 248,165 | 1,156,653 | ||||||||||||
| ||||||||||||||||
Class R6 | 24,111,916 | 102,068,286 | 11,857,360 | 54,706,960 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 1,661,022 | 7,188,185 | 3,281,576 | 14,668,894 | ||||||||||||
| ||||||||||||||||
Class C | 53,659 | 231,312 | 103,470 | 459,930 | ||||||||||||
| ||||||||||||||||
Class R | 172,600 | 744,645 | 323,717 | 1,439,296 | ||||||||||||
| ||||||||||||||||
Class Y | 1,715,176 | 7,419,043 | 3,842,890 | 17,291,282 | ||||||||||||
| ||||||||||||||||
Class R5 | 4,979 | 21,597 | 5,409 | 22,693 | ||||||||||||
| ||||||||||||||||
Class R6 | 1,384,048 | 5,979,977 | 2,593,720 | 11,614,884 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 228,786 | 987,881 | 656,099 | 3,019,260 | ||||||||||||
| ||||||||||||||||
Class C | (229,545 | ) | (987,881 | ) | (658,721 | ) | (3,019,260 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (14,118,573 | ) | (60,267,112 | ) | (33,153,319 | ) | (151,713,493 | ) | ||||||||
| ||||||||||||||||
Class C | (507,910 | ) | (2,162,650 | ) | (1,512,565 | ) | (7,027,755 | ) | ||||||||
| ||||||||||||||||
Class R | (1,391,551 | ) | (5,993,140 | ) | (3,239,823 | ) | (14,963,047 | ) | ||||||||
| ||||||||||||||||
Class Y | (29,458,440 | ) | (125,468,517 | ) | (102,430,021 | ) | (473,516,487 | ) | ||||||||
| ||||||||||||||||
Class R5 | (12,768 | ) | (55,408 | ) | (23,998 | ) | (101,308 | ) | ||||||||
| ||||||||||||||||
Class R6 | (10,845,588 | ) | (46,676,203 | ) | (35,016,427 | ) | (162,533,138 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (9,288,493 | ) | $ | (39,678,651 | ) | (104,814,301 | ) | $ | (479,162,414 | ) | ||||||
|
(a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 38% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
In addition, 5% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
35 | Invesco International 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, 2022 through April 30, 2023.
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 | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Ratio | |||||||||
Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,114.00 | $5.29 | $1,019.79 | $5.06 | 1.01% | ||||||
Class C | 1,000.00 | 1,110.40 | 9.26 | 1,016.02 | 8.85 | 1.77 | ||||||
Class R | 1,000.00 | 1,110.30 | 6.65 | 1,018.50 | 6.36 | 1.27 | ||||||
Class Y | 1,000.00 | 1,115.50 | 4.04 | 1,020.98 | 3.86 | 0.77 | ||||||
Class R5 | 1,000.00 | 1,115.30 | 4.04 | 1,020.98 | 3.86 | 0.77 | ||||||
Class R6 | 1,000.00 | 1,115.80 | 3.83 | 1,021.17 | 3.66 | 0.73 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
36 | Invesco International Bond 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | O-IBD-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Macro Allocation Strategy Fund
Nasdaq:
A: GMSDX ∎ C: GMSEX ∎ R: GMSJX ∎ Y: GMSHX ∎ R5: GMSKX ∎ R6: GMSLX
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary |
| |||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | -1.19 | % | ||
Class C Shares | -1.48 | |||
Class R Shares | -1.20 | |||
Class Y Shares | -0.92 | |||
Class R5 Shares | -1.05 | |||
Class R6 Shares | -0.92 | |||
Bloomberg 3-Month Treasury Bellwether Index▼ (Broad Market/Style-Specific Index) | 2.19 | |||
Lipper Absolute Return Funds Index∎ (Peer Group Index) | 3.76 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc. | ||||
The Bloomberg 3-Month Treasury Bellwether Index measures the performance of treasury bills with maturities of less than three months. The Lipper 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 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 visiting invesco.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, visit blog.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 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
10 Years | 0.48 | % | ||
5 Years | -2.65 | |||
1 Year | -10.35 | |||
Class C Shares | ||||
10 Years | 0.43 | % | ||
5 Years | -2.29 | |||
1 Year | -6.73 | |||
Class R Shares | ||||
10 Years | 0.83 | % | ||
5 Years | -1.78 | |||
1 Year | -5.23 | |||
Class Y Shares | ||||
Inception (9/26/12) | 1.87 | % | ||
10 Years | 1.32 | |||
5 Years | -1.31 | |||
1 Year | -4.80 | |||
Class R5 Shares | ||||
10 Years | 1.32 | % | ||
5 Years | -1.31 | |||
1 Year | -4.92 | |||
Class R6 Shares | ||||
10 Years | 1.31 | % | ||
5 Years | -1.31 | |||
1 Year | -4.80 |
On August 28, 2013, Class H1 shares converted to Class Y shares.
Class A, Class C and Class R shares incepted on August 28, 2013. Performance shown prior to that date is that of Class Y shares at net asset value, restated to reflect the higher
12b-1 fees applicable to Class A, Class C and Class R shares.
Class R5 shares and Class R6 shares incepted on August 28, 2013. Performance shown prior to that date is that of Class Y shares at net asset value.
The performance data quoted represent past performance and cannot guarantee 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.
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 Macro Allocation Strategy Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Macro Allocation Strategy Fund |
Consolidated Schedule of Investments
April 30, 2023
(Unaudited)
Interest Rate | Maturity Date | Principal (000) | Value | |||||||||||
U.S. Treasury Securities–31.89% | ||||||||||||||
U.S. Treasury Bills–6.92% | ||||||||||||||
U.S. Treasury Bills(a) | 4.62% | 05/25/2023 | $ | 9,200 | $ 9,172,302 | |||||||||
U.S. Treasury Bills(a) | 4.58% | 06/08/2023 | 1,480 | 1,472,915 | ||||||||||
10,645,217 | ||||||||||||||
U.S. Treasury Floating Rate Notes–24.97% | ||||||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate - 0.02%)(b) | 5.17% | 01/31/2024 | 19,200 | 19,203,839 | ||||||||||
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate - 0.08%)(b) | 5.11% | 04/30/2024 | 19,250 | 19,236,566 | ||||||||||
38,440,405 | ||||||||||||||
Total U.S. Treasury Securities (Cost $49,095,215) | 49,085,622 | |||||||||||||
Shares | ||||||||||||||
Exchange-Traded Funds–4.21% | ||||||||||||||
Invesco Treasury Collateral ETF ($6,489,480) | 61,500 | 6,486,405 | ||||||||||||
Money Market Funds–50.16% | ||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(c)(d) | 32,322,073 | 32,322,073 | ||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(c)(d) | 13,142,648 | 13,146,591 | ||||||||||||
Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio (Ireland), Agency Class, 4.93%(c)(d) |
| 10,976,464 | 10,976,464 | |||||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(c)(d) | 20,781,797 | 20,781,797 | ||||||||||||
Total Money Market Funds (Cost $77,222,353) | 77,226,925 | |||||||||||||
Options Purchased–0.54% | ||||||||||||||
(Cost $1,987,261)(e) | 827,640 | |||||||||||||
TOTAL INVESTMENTS IN SECURITIES–86.80% (Cost $134,794,309) | 133,626,592 | |||||||||||||
OTHER ASSETS LESS LIABILITIES–13.20% | 20,320,057 | |||||||||||||
NET ASSETS–100.00% | $153,946,649 |
Investment Abbreviations:
ETF – Exchange-Traded Fund
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, 2023. |
(c) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Invesco Treasury Collateral ETF | $ | - | $ | 6,489,480 | $ | - | $(3,075) | $ | - | $ | 6,486,405 | $ | 85,326 | |||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | 28,357,639 | 31,850,916 | (27,886,482 | ) | - | - | 32,322,073 | 690,785 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 9,056,334 | 22,750,654 | (18,661,773 | ) | 1,320 | 56 | 13,146,591 | 287,544 | ||||||||||||||||||||
Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Agency Class | - | 34,448,634 | (23,472,170 | ) | - | - | 10,976,464 | 146,499 | ||||||||||||||||||||
Invesco Liquidity Funds PLC, Invesco US Dollar Liquidity Portfolio, Institutional Class | 10,138,306 | 9,133,806 | (19,272,112 | ) | - | - | - | 89,598 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 14,239,588 | 36,401,046 | (29,858,837 | ) | - | - | 20,781,797 | 438,556 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
5 | Invesco Macro Allocation Strategy Fund |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | $ | - | $ | 12,359,773 | $ | (12,359,773 | ) | $ - | $ - | $ | - | $ 3,591* | ||||||||||||||||
Invesco Private Prime Fund | - | 31,445,067 | (31,444,435 | ) | - | (632) | - | 10,137* | ||||||||||||||||||||
Total | $ | 61,791,867 | $ | 184,879,376 | $ | (162,955,582 | ) | $(1,755) | $(576) | $ | 83,713,330 | $1,752,036 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(d) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(e) | The table below details options purchased. |
Open Exchange-Traded Index Options Purchased(a)
Description | Type of Contract | Expiration Date | Number of Contracts | Exercise Price | Notional Value* | Value | ||||||||||||||||
Equity Risk | ||||||||||||||||||||||
S&P 500 Index | Put | 09/15/2023 | 6 | USD 3,900.00 | USD 2,340,000 | $ 49,530 | ||||||||||||||||
S&P 500 Index | Put | 10/20/2023 | 6 | USD 3,625.00 | USD 2,175,000 | 35,970 | ||||||||||||||||
S&P 500 Index | Put | 08/18/2023 | 6 | USD 4,075.00 | USD 2,445,000 | 60,630 | ||||||||||||||||
S&P 500 Index | Put | 12/15/2023 | 6 | USD 4,100.00 | USD 2,460,000 | 104,880 | ||||||||||||||||
S&P 500 Index | Put | 01/19/2024 | 6 | USD 3,900.00 | USD 2,340,000 | 83,160 | ||||||||||||||||
S&P 500 Index | Put | 04/19/2024 | 6 | USD 4,150.00 | USD 2,490,000 | 142,470 | ||||||||||||||||
S&P 500 Index | Put | 06/16/2023 | 6 | USD 4,025.00 | USD 2,415,000 | 25,020 | ||||||||||||||||
S&P 500 Index | Put | 07/21/2023 | 6 | USD 3,750.00 | USD 2,250,000 | 18,480 | ||||||||||||||||
S&P 500 Index | Put | 05/19/2023 | 6 | USD 4,050.00 | USD 2,430,000 | 11,250 | ||||||||||||||||
S&P 500 Index | Put | 11/17/2023 | 6 | USD 3,875.00 | USD 2,325,000 | 65,820 | ||||||||||||||||
S&P 500 Index | Put | 02/16/2024 | 6 | USD 4,100.00 | USD 2,460,000 | 119,580 | ||||||||||||||||
S&P 500 Index | Put | 03/15/2024 | 6 | USD 4,000.00 | USD 2,400,000 | 110,850 | ||||||||||||||||
Total Index Options Purchased | $827,640 |
(a) | Open Exchange-Traded Index Options Purchased collateralized by $4,095,000 cash held with Morgan Stanley & Co. |
* | Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier. |
Open Futures Contracts(a) | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Brent Crude | 40 | September-2023 | $ | 3,141,200 | $ | (155,303 | ) | $ | (155,303 | ) | ||||||||||
| ||||||||||||||||||||
Cocoa | 18 | July-2023 | 528,660 | 15,654 | 15,654 | |||||||||||||||
| ||||||||||||||||||||
Gasoline Reformulated Blendstock Oxygenate Blending | 49 | May-2023 | 5,206,946 | (404,470 | ) | (404,470 | ) | |||||||||||||
| ||||||||||||||||||||
Low Sulphur Gas Oil | 57 | June-2023 | 3,958,650 | 49,158 | 49,158 | |||||||||||||||
| ||||||||||||||||||||
New York Harbor Ultra-Low Sulfur Diesel | 35 | May-2023 | 3,494,337 | (409,592 | ) | (409,592 | ) | |||||||||||||
| ||||||||||||||||||||
Soybean | 37 | July-2023 | 2,625,612 | (74,054 | ) | (74,054 | ) | |||||||||||||
| ||||||||||||||||||||
Soybean Meal | 73 | July-2023 | 3,156,520 | (140,512 | ) | (140,512 | ) | |||||||||||||
| ||||||||||||||||||||
Soybean Oil | 4 | July-2023 | 124,008 | (20,436 | ) | (20,436 | ) | |||||||||||||
| ||||||||||||||||||||
Sugar No. 11 | 99 | February-2024 | 2,834,093 | 685,680 | 685,680 | |||||||||||||||
| ||||||||||||||||||||
WTI Crude | 27 | October-2023 | 2,014,470 | (87,173 | ) | (87,173 | ) | |||||||||||||
| ||||||||||||||||||||
Subtotal | (541,048 | ) | (541,048 | ) | ||||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
EURO STOXX 50 Index | 202 | June-2023 | 9,615,624 | 430,758 | 430,758 | |||||||||||||||
| ||||||||||||||||||||
FTSE 100 Index | 122 | June-2023 | 12,055,063 | 403,921 | 403,921 | |||||||||||||||
| ||||||||||||||||||||
Tokyo Stock Price Index | 139 | June-2023 | 20,996,147 | 404,722 | 404,722 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 1,239,401 | 1,239,401 | ||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
6 | Invesco Macro Allocation Strategy Fund |
Open Futures Contracts(a)–(continued) | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Australia 10 Year Bonds | 318 | June-2023 | $ | 25,767,299 | $ | (53,687 | ) | $ | (53,687 | ) | ||||||||||
| ||||||||||||||||||||
Canada 10 Year Bonds | 102 | June-2023 | 9,491,944 | (46,470 | ) | (46,470 | ) | |||||||||||||
| ||||||||||||||||||||
Euro-Bund | 9 | June-2023 | 1,344,363 | 44,338 | 44,338 | |||||||||||||||
| ||||||||||||||||||||
Japan 10 Year Bonds | 31 | June-2023 | 33,811,149 | 339,014 | 339,014 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury Long Bonds | 1 | June-2023 | 131,656 | 7,346 | 7,346 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 290,541 | 290,541 | ||||||||||||||||||
| ||||||||||||||||||||
Subtotal–Long Futures Contracts | 988,894 | 988,894 | ||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Coffee ’C’ | 25 | July-2023 | (1,743,281 | ) | (103,291 | ) | (103,291 | ) | ||||||||||||
| ||||||||||||||||||||
Corn | 42 | July-2023 | (1,228,500 | ) | 108,836 | 108,836 | ||||||||||||||
| ||||||||||||||||||||
Cotton No. 2 | 24 | December-2023 | (973,200 | ) | 25,178 | 25,178 | ||||||||||||||
| ||||||||||||||||||||
Gold 100 Oz. | 52 | June-2023 | (10,395,320 | ) | (46,725 | ) | (46,725 | ) | ||||||||||||
| ||||||||||||||||||||
Kansas City Wheat | 43 | July-2023 | (1,668,938 | ) | 71,445 | 71,445 | ||||||||||||||
| ||||||||||||||||||||
Lean Hogs | 192 | December-2023 | (6,151,680 | ) | 149,274 | 149,274 | ||||||||||||||
| ||||||||||||||||||||
Live Cattle | 9 | December-2023 | (618,390 | ) | (11,567 | ) | (11,567 | ) | ||||||||||||
| ||||||||||||||||||||
LME Nickel | 23 | June-2023 | (3,343,602 | ) | (40,679 | ) | (40,679 | ) | ||||||||||||
| ||||||||||||||||||||
Natural Gas | 39 | November-2023 | (1,422,330 | ) | (25,742 | ) | (25,742 | ) | ||||||||||||
| ||||||||||||||||||||
Silver | 42 | July-2023 | (5,297,460 | ) | 58,833 | 58,833 | ||||||||||||||
| ||||||||||||||||||||
Wheat | 142 | July-2023 | (4,499,625 | ) | 750,670 | 750,670 | ||||||||||||||
| ||||||||||||||||||||
Subtotal | 936,232 | 936,232 | ||||||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
E-Mini Russell 2000 Index | 41 | June-2023 | (3,638,340 | ) | 98,399 | 98,399 | ||||||||||||||
| ||||||||||||||||||||
E-Mini S&P 500 Index | 83 | June-2023 | (17,382,275 | ) | (620,659 | ) | (620,659 | ) | ||||||||||||
| ||||||||||||||||||||
MSCI EAFE Index | 133 | June-2023 | (14,294,840 | ) | (656,592 | ) | (656,592 | ) | ||||||||||||
| ||||||||||||||||||||
MSCI Emerging Markets Index | 196 | June-2023 | (9,645,160 | ) | (183,491 | ) | (183,491 | ) | ||||||||||||
| ||||||||||||||||||||
S&P/TSX 60 Index | 39 | June-2023 | (7,187,733 | ) | (165,649 | ) | (165,649 | ) | ||||||||||||
| ||||||||||||||||||||
Subtotal | (1,527,992 | ) | (1,527,992 | ) | ||||||||||||||||
| ||||||||||||||||||||
Subtotal–Short Futures Contracts | (591,760 | ) | (591,760 | ) | ||||||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | 397,134 | $ | 397,134 | ||||||||||||||||
|
(a) | Futures contracts collateralized by $14,541,000 cash held with Goldman Sachs International, the futures commission merchant. |
Open Over-The-Counter Total Return Swap Agreements(a)(b) |
| |||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity(c) | Fixed Rate | Payment Frequency | Number of Contracts | Maturity Date | Notional Value | Upfront (Received) | Value | Unrealized (Depreciation) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Barclays Bank PLC | Receive | | Barclays Commodity Strategy 1756 Excess Return Index | | 0.42 | % | Monthly | 84,400 | March–2024 | USD 18,202,075 | $– | $ | 133,849 | $ | 133,849 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Macquarie Bank Ltd. | Receive | | Macquarie F6 Carry Alpha Index | | 0.32 | Monthly | 175,720 | April–2024 | USD 51,171,368 | – | 64,841 | 64,841 | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Subtotal – Appreciation |
| – | 198,690 | 198,690 | ||||||||||||||||||||||||||||||||||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
7 | 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 (Received) | Value | Unrealized (Depreciation) | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Commodity Risk | ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | Receive | | Canadian Imperial Bank of Commerce Dynamic Roll LME | | 0.27 | % | Monthly | 24,600 | February–2024 | USD 2,652,817 | $– | $ | (70,191 | ) | $ | (70,191 | ) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Macquarie Bank Ltd. | Pay | | Macquarie Single Commodity Aluminium type A Excess Return Index |
| 0.14 | Monthly | 71,800 | March–2024 | USD 4,339,305 | – | (37,637 | ) | (37,637 | ) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Subtotal – Depreciation |
| – | (107,828 | ) | (107,828 | ) | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Total – Total Return Swap Agreements |
| $– | $ | 90,862 | $ | 90,862 | ||||||||||||||||||||||||||||||||
|
(a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $280,000. |
(b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
(c) | The Reference Entity Components table below includes additional information regarding the underlying components of certain reference entities that are not publicly available. |
Open Over-The-Counter Total Return Swap Agreements(a)(b)
Counterparty | Pay/ Receive | Reference Entity | Floating Rate Index | Payment Frequency | Number of Contracts | Maturity Date | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||||||||||||||||
Bank of America N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.590% | Monthly | 60 | July–2023 | USD | 113,051 | $ | – | $ | 431 | $ | 431 | ||||||||||||||||||||||||
BNP Paribas S.A. | Receive | Invesco U.S. Low Volatility Total Return Index | SOFR + 0.270% | Monthly | 70 | May–2023 | USD | 441,372 | – | 2,208 | 2,208 | |||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | Invesco U.S. Low Volatility Total Return Index | SOFR + 0.370% | Monthly | 65 | May–2023 | USD | 409,845 | – | 2,050 | 2,050 | |||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | Invesco US Large Cap Broad Quality Total Return Index | SOFR + 0.370% | Monthly | 52 | May–2023 | USD | 495,030 | – | 9,375 | 9,375 | |||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | MSCI EAFE Minimum Volatility Index | SOFR - 0.300% | Monthly | 20 | May–2023 | USD | 41,122 | – | 570 | 570 | |||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI EAFE Minimum Volatility Index | SOFR - 0.340% | Monthly | 2,310 | May–2023 | USD | 4,749,591 | – | 65,835 | 65,835 | |||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI EAFE Momentum Index | SOFR - 0.390% | Monthly | 730 | May–2023 | USD | 4,729,283 | – | 31,881 | 31,881 | |||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI EAFE Momentum Index | SOFR + 0.300% | Monthly | 10 | May–2023 | USD | 64,785 | – | 437 | 437 | |||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.620% | Monthly | 300 | August–2023 | USD | 565,254 | – | 2,154 | 2,154 | |||||||||||||||||||||||||||
Citibank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.620% | Monthly | 190 | May–2023 | USD | 357,994 | – | 1,364 | 1,364 | |||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.560% | Monthly | 20 | May–2023 | USD | 129,336 | – | 112 | 112 | |||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.630% | Monthly | 552 | August–2023 | USD | 3,569,668 | – | 3,100 | 3,100 | |||||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.630% | Monthly | 368 | August–2023 | USD | 2,379,779 | – | 2,067 | 2,067 |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
8 | Invesco Macro Allocation Strategy Fund |
Open Over-The-Counter Total Return Swap Agreements(a)(b)–(continued) |
| |||||||||||||||||||||||||||||||
Counterparty | Pay/ Receive | Reference Entity | Floating Rate Index | Payment Frequency | Number of Contracts | Maturity Date | Notional Value | Upfront Payments Paid (Received) | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.630% | Monthly | 90 | July-2023 | USD 582,011 | $– | $ | 505 | $ | 505 | ||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco Emerging Markets + Korea Large Cap Broad Price Momentum Index | SOFR + 0.630% | Monthly | 60 | September-2023 | USD 388,007 | – | 337 | 337 | ||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Low Volatility Total Return Index | SOFR + 0.380% | Monthly | 620 | May-2023 | USD 3,909,292 | – | 19,557 | 19,557 | ||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco US Large Cap Broad Quality Total Return Index | SOFR + 0.380% | Monthly | 445 | May-2023 | USD 4,236,311 | – | 80,229 | 80,229 | ||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.630% | Monthly | 2,737 | August-2023 | USD 5,157,001 | – | 19,652 | 19,652 | ||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.630% | Monthly | 483 | August-2023 | USD 910,059 | – | 3,468 | 3,468 | ||||||||||||||||||||||
Subtotal – Appreciation |
| – | 245,332 | 245,332 | ||||||||||||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||||||||||
BNP Paribas S.A. | Receive | Invesco U.S. Large Cap Broad Price Momentum Total Return Index | SOFR + 0.270% | Monthly | 55 | May-2023 | USD 405,276 | – | (4,253 | ) | (4,253 | ) | ||||||||||||||||||||
BNP Paribas S.A. | Receive | Invesco U.S. Large Cap Broad Price Momentum Total Return Index | SOFR + 0.370% | Monthly | 75 | May-2023 | USD 552,649 | – | (5,799 | ) | (5,799 | ) | ||||||||||||||||||||
Citibank, N.A. | Receive | MSCI EAFE Quality Index | SOFR –0.420% | Monthly | 75 | May-2023 | USD 357,097 | – | (79 | ) | (79 | ) | ||||||||||||||||||||
Citibank, N.A. | Receive | MSCI EAFE Quality Index | SOFR –0.420% | Monthly | 920 | May-2023 | USD 4,380,387 | – | (968 | ) | (968 | ) | ||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Large Cap Broad Price Momentum Total Return Index | SOFR + 0.360% | Monthly | 40 | May-2023 | USD 294,746 | – | (3,093 | ) | (3,093 | ) | ||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | Receive | Invesco U.S. Large Cap Broad Price Momentum Total Return Index | SOFR + 0.360% | Monthly | 475 | May-2023 | USD 3,500,109 | – | (36,727 | ) | (36,727 | ) | ||||||||||||||||||||
Subtotal – Depreciation | – | (50,919 | ) | (50,919 | ) | |||||||||||||||||||||||||||
Total – Total Return Swap Agreements | $– | $ | 194,413 | $194,413 |
(a) | Open Over-The-Counter Total Return Swap Agreements are collateralized by cash held with the swap Counterparties in the amount of $280,000. |
(b) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
9 | Invesco Macro Allocation Strategy Fund |
Reference Entity Components
Reference Entity | Underlying Components | Percentage |
Barclays Commodity Strategy 1756 Excess Return Index
Long Futures Contracts | ||||
Aluminum | 4.23 | % | ||
Brent Crude | 7.80 | |||
Cocoa | 0.00 | |||
Coffee | 3.42 | |||
Corn | 5.34 | |||
Cotton | 1.49 | |||
Gas Oil | 2.45 | |||
Gasoline | 2.65 | |||
Gold | 15.82 | |||
Heating Oil | 1.85 | |||
Kansas Wheat | 1.80 | |||
Lead | 0.91 | |||
Lean Hogs | 1.86 | |||
Live Cattle | 3.42 | |||
Natural Gas | 5.68 | |||
Nickel | 2.36 | |||
Silver | 4.85 | |||
Soybean Meal | 3.34 | |||
Soybean Oil | 2.74 | |||
Soybeans | 5.64 | |||
Sugar | 3.14 | |||
US Copper | 5.42 | |||
Wheat | 2.56 | |||
WTI Crude | 8.52 | |||
Zinc | 2.71 | |||
Total | 100 | % |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
10 | Invesco Macro Allocation Strategy Fund |
Reference Entity Components–(continued) | ||||
Reference Entity | Underlying Components | Percentage |
Macquarie F6 Carry Alpha Index
Long Futures Contracts | ||||
Aluminum | 6.20 | % | ||
Coffee ‘C’ | 4.00 | |||
Copper | 7.40 | |||
Corn | 6.70 | |||
Cotton No. 2 | 2.02 | |||
Heating Oil | 2.62 | |||
KC HRW Wheat | 2.37 | |||
Lean Hogs | 2.97 | |||
Live Cattle | 4.41 | |||
LME Lead | 1.21 | |||
Low Sulphur Gasoil | 3.44 | |||
Natural Gas | 9.77 | |||
Nickel | 3.85 | |||
RBOB Gasoline | 3.16 | |||
Soybean Meal | 3.88 | |||
Soybean Oil | 4.07 | |||
Soybeans | 6.96 | |||
Sugar No. 11 | 3.33 | |||
Wheat | 3.80 | |||
WTI Crude | 13.54 | |||
Zinc | 4.30 | |||
Total | 100 | % |
Macquarie F6 Carry Alpha Index
Short Futures Contracts | ||||
Aluminum | (5.87 | )% | ||
Coffee ‘C’ | (3.93 | ) | ||
Copper | (7.18 | ) | ||
Corn | (7.37 | ) | ||
Cotton No. 2 | (1.98 | ) | ||
Heating Oil | (2.81 | ) | ||
KC HRW Wheat | (2.36 | ) | ||
Lean Hogs | (2.40 | ) | ||
Live Castle | (4.42 | ) | ||
LME Lead | (1.17 | ) | ||
Low Sulphur Gasoil | (3.71 | ) | ||
Natural Gas | (8.01 | ) | ||
Nickel | (3.69 | ) | ||
RBOB Gasoline | (3.13 | ) | ||
Soybean Meal | (4.62 | ) | ||
Soybean Oil | (4.05 | ) | ||
Soybeans | (7.61 | ) | ||
Sugar No. 11 | (3.66 | ) | ||
Wheat | (3.62 | ) | ||
WTI Crude | (14.17 | ) | ||
Zinc | (4.24 | ) | ||
Total | 100 | % |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
11 | Invesco Macro Allocation Strategy Fund |
Reference Entity Components–(continued) | ||||
Reference Entity | Underlying Components | Percentage |
Canadian Imperial Bank of Commerce Dynamic Roll LME Copper
Excess Return Index 2
Long Futures Contracts | ||||
| ||||
Copper | 100% | |||
|
Macquarie Single Commodity Aluminium type A Excess Return
Index
Long Futures Contracts | ||||
| ||||
Aluminum | 100% | |||
|
Abbreviations:
SOFR –Secured Overnight Financing Rate
USD –U.S. Dollar
Notional Asset Weights as of April 30, 2023
Asset Class | Notional Asset Weights * | |
Equities | 22.79% | |
Fixed Income | 47.37 | |
Commodities | 37.25 | |
Options | 18.34 | |
Total | 125.75 |
* | Total Notional Asset Weights 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.
12 | Invesco Macro Allocation Strategy Fund |
Consolidated Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||
Investments in unaffiliated securities, at value (Cost $51,082,476) | $ 49,913,262 | |
| ||
Investments in affiliates, at value (Cost $83,711,833) | 83,713,330 | |
| ||
Other investments: | ||
Variation margin receivable – non-LME futures contracts | 576,345 | |
| ||
Unrealized appreciation on swap agreements – OTC | 444,022 | |
| ||
Deposits with brokers: | ||
Cash collateral – exchange-traded futures contracts | 14,541,000 | |
| ||
Cash collateral – exchange-traded options contracts | 4,095,000 | |
| ||
Cash collateral – OTC Derivatives | 280,000 | |
| ||
Cash | 38,064 | |
| ||
Foreign currencies, at value (Cost $31) | 28 | |
| ||
Receivable for: | ||
Fund shares sold | 50 | |
| ||
Dividends | 225,425 | |
| ||
Interest | 460,128 | |
| ||
Investment for trustee deferred compensation and retirement plans | 25,097 | |
| ||
Other assets | 44,601 | |
| ||
Total assets | 154,356,352 | |
| ||
Liabilities: | ||
Other investments: | ||
Swaps payable – OTC | 100,336 | |
| ||
Unrealized depreciation on LME futures contracts | 40,679 | |
| ||
Unrealized depreciation on swap agreements–OTC | 158,747 | |
| ||
Payable for: | ||
Fund shares reacquired | 194 | |
| ||
Accrued fees to affiliates | 39,829 | |
| ||
Accrued other operating expenses | 42,685 | |
| ||
Trustee deferred compensation and retirement plans | 27,233 | |
| ||
Total liabilities | 409,703 | |
| ||
Net assets applicable to shares outstanding | $153,946,649 | |
|
Net assets consist of: |
| |||
Shares of beneficial interest | $ | 162,811,974 | ||
| ||||
Distributable earnings (loss) | (8,865,325 | ) | ||
| ||||
$ | 153,946,649 | |||
| ||||
Net Assets: | ||||
Class A | $ | 1,357,247 | ||
| ||||
Class C | $ | 145,814 | ||
| ||||
Class R | $ | 135,071 | ||
| ||||
Class Y | $ | 3,450,359 | ||
| ||||
Class R5 | $ | 7,174 | ||
| ||||
Class R6 | $ | 148,850,984 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 182,114 | |||
| ||||
Class C | 19,916 | |||
| ||||
Class R | 18,182 | |||
| ||||
Class Y | 457,705 | |||
| ||||
Class R5 | 952 | |||
| ||||
Class R6 | 19,776,970 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 7.45 | ||
| ||||
Maximum offering price per share | ||||
(Net asset value of $7.45 ÷ 94.50%) | $ | 7.88 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 7.32 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 7.43 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 7.54 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 7.54 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 7.53 | ||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
13 | Invesco Macro Allocation Strategy Fund |
Consolidated Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest | $ | 1,394,931 | ||
| ||||
Dividends from affiliates (includes net securities lending income of $ 9,119) | 1,747,427 | |||
| ||||
Total investment income | 3,142,358 | |||
| ||||
Expenses: | ||||
Advisory fees | 851,031 | |||
| ||||
Administrative services fees | 11,047 | |||
| ||||
Custodian fees | 16,139 | |||
| ||||
Distribution fees: | ||||
Class A | 1,680 | |||
| ||||
Class C | 922 | |||
| ||||
Class R | 319 | |||
| ||||
Transfer agent fees – A, C, R and Y | 3,426 | |||
| ||||
Transfer agent fees – R5 | 2 | |||
| ||||
Transfer agent fees – R6 | 22,410 | |||
| ||||
Trustees’ and officers’ fees and benefits | 6,724 | |||
| ||||
Registration and filing fees | 39,474 | |||
| ||||
Reports to shareholders | 4,670 | |||
| ||||
Professional services fees | 38,750 | |||
| ||||
Other | 9,637 | |||
| ||||
Total expenses | 1,006,231 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (119,411 | ) | ||
| ||||
Net expenses | 886,820 | |||
| ||||
Net investment income | 2,255,538 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (1,480,619 | ) | ||
| ||||
Affiliated investment securities | (576 | ) | ||
| ||||
Foreign currencies | (26,587 | ) | ||
| ||||
Futures contracts | (8,026,495 | ) | ||
| ||||
Swap agreements | 8,404,736 | |||
| ||||
(1,129,541 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | (1,439,204 | ) | ||
| ||||
Affiliated investment securities | (1,755 | ) | ||
| ||||
Foreign currencies | 9,952 | |||
| ||||
Futures contracts | (778,363 | ) | ||
| ||||
Swap agreements | (513,047 | ) | ||
| ||||
(2,722,417 | ) | |||
| ||||
Net realized and unrealized gain (loss) | (3,851,958 | ) | ||
| ||||
Net increase (decrease) in net assets resulting from operations | $ | (1,596,420 | ) | |
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
14 | Invesco Macro Allocation Strategy Fund |
Consolidated Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: |
| |||||||
Net investment income (loss) | $ | 2,255,538 | $ | (851,859 | ) | |||
| ||||||||
Net realized gain (loss) | (1,129,541 | ) | (21,320,150 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | (2,722,417 | ) | 1,267,440 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | (1,596,420 | ) | (20,904,569 | ) | ||||
| ||||||||
Distributions to shareholders from distributable earnings: |
| |||||||
Class A | – | (169,053 | ) | |||||
| ||||||||
Class C | – | (19,921 | ) | |||||
| ||||||||
Class R | – | (10,162 | ) | |||||
| ||||||||
Class Y | – | (529,967 | ) | |||||
| ||||||||
Class R5 | – | (796 | ) | |||||
| ||||||||
Class R6 | – | (22,091,201 | ) | |||||
| ||||||||
Total distributions from distributable earnings | – | (22,821,100 | ) | |||||
| ||||||||
Share transactions–net: |
| |||||||
Class A | (37,610 | ) | (225,349 | ) | ||||
| ||||||||
Class C | (47,715 | ) | (122,716 | ) | ||||
| ||||||||
Class R | 9,862 | (1,478 | ) | |||||
| ||||||||
Class Y | (773,326 | ) | (619,490 | ) | ||||
| ||||||||
Class R6 | 275,704 | (51,010,922 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (573,085 | ) | (51,979,955 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (2,169,505 | ) | (95,705,624 | ) | ||||
| ||||||||
Net assets: |
| |||||||
Beginning of period | 156,116,154 | 251,821,778 | ||||||
| ||||||||
End of period | $ | 153,946,649 | $ | 156,116,154 | ||||
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
15 | Invesco Macro Allocation Strategy Fund |
Consolidated Financial Highlights
(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 on securities realized and unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Total distributions | Net asset of period | Total return (b) | Net assets, (000’s omitted) | Ratio of expenses to average net assets with fee waivers and/or expenses absorbed | Ratio of fee waivers and/or | Ratio of net investment income to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $7.54 | $ 0.10 | $(0.19 | ) | $(0.09 | ) | $ – | $ – | $ – | $ | 7.45 | (1.19 | )% | $ 1,357 | 1.40 | %(d) | 1.63 | %(d) | 2.66 | %(d) | 18 | % | ||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.16 | (0.05 | ) | (0.76 | ) | (0.81 | ) | (0.49 | ) | (0.32 | ) | (0.81 | ) | 7.54 | (9.88 | ) | 1,411 | 1.41 | 1.58 | (0.67 | ) | 104 | ||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 8.18 | (0.12 | ) | 1.10 | 0.98 | – | – | – | 9.16 | 11.98 | 1,982 | 1.42 | 1.62 | (1.36 | ) | 86 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.47 | (0.06 | ) | (0.56 | ) | (0.62 | ) | (0.67 | ) | – | (0.67 | ) | 8.18 | (7.02 | ) | 2,111 | 1.38 | 1.85 | (0.75 | ) | 120 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 8.81 | 0.08 | 0.60 | 0.68 | (0.02 | ) | – | (0.02 | ) | 9.47 | 7.67 | 4,982 | 1.37 | (e) | 2.12 | (e) | 0.87 | (e) | 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 | |||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.43 | 0.07 | (0.18 | ) | (0.11 | ) | – | – | – | 7.32 | (1.48 | ) | 146 | 2.15 | (d) | 2.38 | (d) | 1.91 | (d) | 18 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 8.98 | (0.11 | ) | (0.77 | ) | (0.88 | ) | (0.35 | ) | (0.32 | ) | (0.67 | ) | 7.43 | (10.66 | ) | 197 | 2.16 | 2.33 | (1.42 | ) | 104 | ||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 8.08 | (0.19 | ) | 1.09 | 0.90 | – | – | – | 8.98 | 11.14 | 364 | 2.17 | 2.37 | (2.11 | ) | 86 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.30 | (0.13 | ) | (0.54 | ) | (0.67 | ) | (0.55 | ) | – | (0.55 | ) | 8.08 | (7.61 | ) | 828 | 2.13 | 2.60 | (1.50 | ) | 120 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 8.71 | 0.01 | 0.58 | 0.59 | (0.00 | ) | – | (0.00 | ) | 9.30 | 6.82 | 3,329 | 2.12 | (e) | 2.87 | (e) | 0.12 | (e) | 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 | |||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.52 | 0.09 | (0.18 | ) | (0.09 | ) | – | – | – | 7.43 | (1.20 | ) | 135 | 1.65 | (d) | 1.88 | (d) | 2.41 | (d) | 18 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.12 | (0.07 | ) | (0.76 | ) | (0.83 | ) | (0.45 | ) | (0.32 | ) | (0.77 | ) | 7.52 | (10.11 | ) | 127 | 1.66 | 1.83 | (0.92 | ) | 104 | ||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 8.17 | (0.15 | ) | 1.10 | 0.95 | – | – | – | 9.12 | 11.63 | 151 | 1.67 | 1.87 | (1.61 | ) | 86 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.44 | (0.08 | ) | (0.56 | ) | (0.64 | ) | (0.63 | ) | – | (0.63 | ) | 8.17 | (7.22 | ) | 98 | 1.63 | 2.10 | (1.00 | ) | 120 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 8.80 | 0.06 | 0.59 | 0.65 | (0.01 | ) | – | (0.01 | ) | 9.44 | 7.41 | 128 | 1.62 | (e) | 2.37 | (e) | 0.62 | (e) | 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 | |||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.61 | 0.11 | (0.18 | ) | (0.07 | ) | – | – | – | 7.54 | (0.92 | ) | 3,450 | 1.15 | (d) | 1.38 | (d) | 2.91 | (d) | 18 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.25 | (0.03 | ) | (0.77 | ) | (0.80 | ) | (0.52 | ) | (0.32 | ) | (0.84 | ) | 7.61 | (9.70 | ) | 4,275 | 1.16 | 1.33 | (0.42 | ) | 104 | ||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 8.25 | (0.10 | ) | 1.10 | 1.00 | – | – | – | 9.25 | 12.12 | 5,934 | 1.17 | 1.37 | (1.11 | ) | 86 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.54 | (0.04 | ) | (0.55 | ) | (0.59 | ) | (0.70 | ) | – | (0.70 | ) | 8.25 | (6.66 | ) | 10,377 | 1.13 | 1.60 | (0.50 | ) | 120 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 8.87 | 0.10 | 0.60 | 0.70 | (0.03 | ) | – | (0.03 | ) | 9.54 | 7.88 | 17,768 | 1.12 | (e) | 1.87 | (e) | 1.12 | (e) | 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 | |||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.62 | 0.11 | (0.19 | ) | (0.08 | ) | – | – | – | 7.54 | (1.05 | ) | 7 | 1.15 | (d) | 1.29 | (d) | 2.91 | (d) | 18 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.26 | (0.03 | ) | (0.77 | ) | (0.80 | ) | (0.52 | ) | (0.32 | ) | (0.84 | ) | 7.62 | (9.69 | ) | 7 | 1.16 | 1.27 | (0.42 | ) | 104 | ||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 8.26 | (0.10 | ) | 1.10 | 1.00 | – | – | – | 9.26 | 12.11 | 9 | 1.17 | 1.22 | (1.11 | ) | 86 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.54 | (0.04 | ) | (0.54 | ) | (0.58 | ) | (0.70 | ) | – | (0.70 | ) | 8.26 | (6.55 | ) | 8 | 1.13 | 1.58 | (0.50 | ) | 120 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 8.88 | 0.11 | 0.58 | 0.69 | (0.03 | ) | – | (0.03 | ) | 9.54 | 7.76 | 9 | 1.12 | (e) | 1.83 | (e) | 1.12 | (e) | 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 | |||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.60 | 0.11 | (0.18 | ) | (0.07 | ) | – | – | – | 7.53 | (0.92 | ) | 148,851 | 1.15 | (d) | 1.29 | (d) | 2.91 | (d) | 18 | ||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.24 | (0.03 | ) | (0.77 | ) | (0.80 | ) | (0.52 | ) | (0.32 | ) | (0.84 | ) | 7.60 | (9.72 | ) | 150,099 | 1.16 | 1.27 | (0.42 | ) | 104 | ||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 8.23 | (0.10 | ) | 1.11 | 1.01 | – | – | – | 9.24 | 12.27 | 243,382 | 1.17 | 1.22 | (1.11 | ) | 86 | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 9.53 | (0.04 | ) | (0.56 | ) | (0.60 | ) | (0.70 | ) | – | (0.70 | ) | 8.23 | (6.77 | ) | 169,884 | 1.13 | 1.58 | (0.50 | ) | 120 | |||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 8.86 | 0.10 | 0.60 | 0.70 | (0.03 | ) | – | (0.03 | ) | 9.53 | 7.89 | 244 | 1.12 | (e) | 1.83 | (e) | 1.12 | (e) | 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 |
(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) | Annualized. |
(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 investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. Estimated acquired fund fees from underlying funds was 0.11% for the year ended October 31, 2019. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.
16 | Invesco Macro Allocation Strategy Fund |
Notes to Consolidated Financial Statements
April 30, 2023
(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 and the Invesco Cayman Commodity Fund V Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund will seek to gain exposure to the commodity markets primarily through investments in the Subsidiary. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives and other securities that may provide leveraged and non-leveraged exposure to commodities. The Fund may invest up to 25% of its total assets in the Subsidiary.
The Fund’s investment objective is to seek a positive absolute return over a complete economic and market cycle.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the
17 | Invesco Macro Allocation Strategy Fund |
inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates –The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation. |
In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | 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
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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. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Consolidated Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Consolidated Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Consolidated Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, the Fund paid the Adviser $964 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Consolidated Statement of Operations.
K. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.
L. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.
M. | Futures Contracts – The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity 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 or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made on non-LME futures contracts depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. For LME contracts, subsequent or variation margin payments are not made and the value of the contracts is presented as unrealized appreciation or depreciation on the Consolidated Statement of Assets and Liabilities. When LME or non-LME contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. For settlement of LME commodity futures contracts, cash is not transferred until the settled futures contracts expire. Net realized gains or losses on LME contracts which have been closed out but for which the contract has not yet expired are reflected as a receivable or payable on the Consolidated Statements of Assets and Liabilities. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin 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. |
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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. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Consolidated Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Consolidated Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased. |
P. | Swap Agreements – The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Q. | Leverage Risk – Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
R. | Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. |
S. | 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.
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NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser less the amount paid by the Subsidiary to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $250 million | 1.100% | |||
Next $250 million | 1.080% | |||
Next $500 million | 1.050% | |||
Next $1.5 billion | 1.030% | |||
Next $2.5 billion | 1.000% | |||
Next $2.5 billion | 0.980% | |||
Next $2.5 billion | 0.950% | |||
Over $10 billion | 0.930% |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 1.10%.
The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least February 29, 2024, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.44%, 2.19%, 1.69%, 1.19%, 1.19% and 1.19%, respectively, of the Fund’s average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of a Fund directly, but are fees and expenses, including management fees, of the investment companies in which a Fund invests. As a result, the total annual fund operating expenses after expense reimbursement may exceed the expense limits above. Unless Invesco continues the fee waiver agreement, it will terminate on February 29, 2024. 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, 2025, 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, 2023, the Adviser waived advisory fees of $93,446 and reimbursed class level expenses of $826, $113, $79, $2,408, $1 and $22,411 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, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $118 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.
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
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market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 | - | Prices are determined using quoted prices in an active market for identical assets. | ||
Level 2 | - | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | ||
Level 3 | - | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | – | $ | 49,085,622 | $– | $ | 49,085,622 | |||||||||
| ||||||||||||||||
Exchange-Traded Funds | 6,486,405 | – | – | 6,486,405 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 77,226,925 | – | – | 77,226,925 | ||||||||||||
| ||||||||||||||||
Options Purchased | 827,640 | – | – | 827,640 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 84,540,970 | 49,085,622 | – | 133,626,592 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 3,643,226 | – | – | 3,643,226 | ||||||||||||
| ||||||||||||||||
Swap Agreements | – | 444,022 | – | 444,022 | ||||||||||||
| ||||||||||||||||
3,643,226 | 444,022 | – | 4,087,248 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | (3,246,092 | ) | – | – | (3,246,092 | ) | ||||||||||
| ||||||||||||||||
Swap Agreements | – | (158,747 | ) | – | (158,747 | ) | ||||||||||
| ||||||||||||||||
(3,246,092 | ) | (158,747 | ) | – | (3,404,839 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | 397,134 | 285,275 | – | 682,409 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 84,938,104 | $ | 49,370,897 | $– | $ | 134,309,001 | |||||||||
|
* | Unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Consolidated Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2023:
Value | ||||||||||||||||
Derivative Assets | Commodity Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | 1,914,728 | $ | 1,337,800 | $ | 390,698 | $ | 3,643,226 | ||||||||
| ||||||||||||||||
Unrealized appreciation on swap agreements – OTC | 198,690 | 245,332 | – | 444,022 | ||||||||||||
| ||||||||||||||||
Options purchased, at value – Exchange-Traded(b) | – | 827,640 | – | 827,640 | ||||||||||||
| ||||||||||||||||
Total Derivative Assets | 2,113,418 | 2,410,772 | 390,698 | 4,914,888 | ||||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | (1,914,728 | ) | (2,165,440 | ) | (390,698 | ) | (4,470,866 | ) | ||||||||
| ||||||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 198,690 | $ | 245,332 | $ | – | $ | 444,022 | ||||||||
| ||||||||||||||||
Value | ||||||||||||||||
Derivative Liabilities | Commodity Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized depreciation on futures contracts – Exchange-Traded(a) | $ | (1,519,544 | ) | $ | (1,626,391 | ) | $ | (100,157 | ) | $ | (3,246,092 | ) | ||||
| ||||||||||||||||
Unrealized depreciation on swap agreements – OTC | (107,828 | ) | (50,919 | ) | – | (158,747 | ) | |||||||||
| ||||||||||||||||
Total Derivative Liabilities | (1,627,372 | ) | (1,677,310 | ) | (100,157 | ) | (3,404,839 | ) | ||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | 1,519,544 | 1,626,391 | 100,157 | 3,246,092 | ||||||||||||
| ||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (107,828 | ) | $ | (50,919 | ) | $ | – | $ | (158,747 | ) | |||||
|
22 | Invesco Macro Allocation Strategy Fund |
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Consolidated Statement of Assets and Liabilities. |
(b) | Options purchased, at value as reported in the Consolidated Schedule of Investments. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of April 30, 2023.
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||
Counterparty | Swap Agreements | Swap Agreements | Net Value of Derivatives | Non-Cash | Cash | Net Amount(a) | ||||||||||||||||
| ||||||||||||||||||||||
Fund | ||||||||||||||||||||||
Bank of America N.A. | $ 431 | $ (305 | ) | $ 126 | $ – | $– | $ 126 | |||||||||||||||
| ||||||||||||||||||||||
BNP Paribas S.A. | 14,203 | (15,051 | ) | (848 | ) | – | – | (848 | ) | |||||||||||||
| ||||||||||||||||||||||
Citibank, N.A. | 101,671 | (28,096 | ) | 73,575 | (73,575 | ) | – | – | ||||||||||||||
| ||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 129,026 | (101,164 | ) | 27,862 | – | – | 27,862 | |||||||||||||||
| ||||||||||||||||||||||
Subtotal - Fund | 245,331 | (144,616 | ) | 100,715 | (73,575 | ) | – | 27,140 | ||||||||||||||
| ||||||||||||||||||||||
Subsidiary | ||||||||||||||||||||||
Barclays Bank PLC | 133,850 | (2,973 | ) | 130,877 | – | – | 130,877 | |||||||||||||||
| ||||||||||||||||||||||
Canadian Imperial Bank of Commerce | – | (70,589 | ) | (70,589 | ) | – | – | (70,589 | ) | |||||||||||||
| ||||||||||||||||||||||
Macquarie Bank Ltd | 64,841 | (40,905 | ) | 23,936 | – | – | 23,936 | |||||||||||||||
| ||||||||||||||||||||||
Subtotal - Subsidiary | 198,691 | (114,467 | ) | 84,224 | – | – | 84,224 | |||||||||||||||
| ||||||||||||||||||||||
Total | $444,022 | $(259,083 | ) | $184,939 | $(73,575 | ) | $– | $111,364 | ||||||||||||||
|
(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, 2023
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 | $ | (5,377,550 | ) | $ | (1,081,801 | ) | $ | (1,567,144 | ) | $ | (8,026,495 | ) | ||||
| ||||||||||||||||
Options purchased(a) | - | (1,459,520 | ) | - | (1,459,520 | ) | ||||||||||
| ||||||||||||||||
Swap agreements | 3,363,812 | 5,040,924 | - | 8,404,736 | ||||||||||||
| ||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||
Futures contracts | (474,933 | ) | (2,087,863 | ) | 1,784,433 | (778,363 | ) | |||||||||
| ||||||||||||||||
Options purchased(a) | - | (1,490,323 | ) | - | (1,490,323 | ) | ||||||||||
| ||||||||||||||||
Swap agreements | 325,988 | (839,035 | ) | - | (513,047 | ) | ||||||||||
| ||||||||||||||||
Total | $ | (2,162,683 | ) | $ | (1,917,618 | ) | $ | 217,289 | $ | (3,863,012 | ) | |||||
|
(a) | Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities. |
The table below summarizes the average notional value of derivatives held during the period.
Futures Contracts | Index Options | Swap Agreements | ||||||||||
| ||||||||||||
Average notional value | $ | 151,566,867 | $ | 40,389,167 | $ | 110,466,684 | ||||||
| ||||||||||||
Average contracts | – | 100 | – | |||||||||
|
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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $127.
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
23 | Invesco Macro Allocation Strategy Fund |
period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $4,930,273 | $1,432,485 | $6,362,758 | |||||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $7,970,663 and $3,161,998, 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 | $ | 4,095,659 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (7,713,914 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (3,618,255 | ) | |
|
Cost of investments for tax purposes is $137,927,256.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 8,502 | $ | 63,372 | 37,914 | $ | 298,375 | ||||||||||
| ||||||||||||||||
Class C | 209 | 1,544 | 4,285 | 33,815 | ||||||||||||
| ||||||||||||||||
Class R | 1,332 | 9,862 | 4,722 | 37,670 | ||||||||||||
| ||||||||||||||||
Class Y | 8,179 | 61,298 | 20,824 | 167,103 | ||||||||||||
| ||||||||||||||||
Class R6 | 1,752,205 | 13,095,256 | 297,557 | 2,446,746 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | - | - | 16,258 | 138,513 | ||||||||||||
| ||||||||||||||||
Class C | - | - | 2,045 | 17,284 | ||||||||||||
| ||||||||||||||||
Class R | - | - | 1,107 | 9,432 | ||||||||||||
| ||||||||||||||||
Class Y | - | - | 56,522 | 484,963 | ||||||||||||
| ||||||||||||||||
Class R6 | - | - | 2,577,644 | 22,090,405 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 2,676 | 19,814 | 7,936 | 65,455 | ||||||||||||
| ||||||||||||||||
Class C | (2,723 | ) | (19,814 | ) | (8,047 | ) | (65,455 | ) | ||||||||
|
24 | Invesco Macro Allocation Strategy Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (16,240 | ) | $ | (120,796 | ) | (91,257 | ) | $ | (727,692 | ) | ||||||
| ||||||||||||||||
Class C | (4,030 | ) | (29,445 | ) | (12,373 | ) | (108,360 | ) | ||||||||
| ||||||||||||||||
Class R | - | - | (5,484 | ) | (48,580 | ) | ||||||||||
| ||||||||||||||||
Class Y | (111,936 | ) | (834,624 | ) | (157,159 | ) | (1,271,556 | ) | ||||||||
| ||||||||||||||||
Class R6 | (1,717,383 | ) | (12,819,552 | ) | (9,470,381 | ) | (75,548,073 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (79,209 | ) | $ | (573,085 | ) | (6,717,887 | ) | $ | (51,979,955 | ) | ||||||
|
(a) | 92% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
25 | 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Ratio | ||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | ||||||||
Class A | $1,000.00 | $988.10 | $6.90 | $1,017.85 | $7.00 | 1.40% | ||||||
Class C | 1,000.00 | 985.20 | 10.58 | 1,014.13 | 10.74 | 2.15 | ||||||
Class R | 1,000.00 | 988.00 | 8.13 | 1,016.61 | 8.25 | 1.65 | ||||||
Class Y | 1,000.00 | 990.80 | 5.68 | 1,019.09 | 5.76 | 1.15 | ||||||
Class R5 | 1,000.00 | 989.50 | 5.67 | 1,019.09 | 5.76 | 1.15 | ||||||
Class R6 | 1,000.00 | 990.80 | 5.68 | 1,019.09 | 5.76 | 1.15 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
26 | Invesco Macro Allocation Strategy Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 Invesco Distributors, Inc. MAS-SAR-1
Semiannual Report to Shareholders | April 30, 2023 |
Invesco Multi-Asset Income Fund
Nasdaq:
A: PIAFX ∎ C: PICFX ∎ R: PIRFX ∎ Y: PIYFX ∎ R5: IPNFX ∎ R6: PIFFX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
29 | Financial Statements | |
32 | Financial Highlights | |
33 | Notes to Financial Statements | |
42 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary | ||||
Fund vs. Indexes | ||||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 7.88 | % | ||
Class C Shares | 7.33 | |||
Class R Shares | 7.73 | |||
Class Y Shares | 8.00 | |||
Class R5 Shares | 8.01 | |||
Class R6 Shares | 8.02 | |||
Bloomberg U.S. Aggregate Bond Index▼ (Broad Market Index) | 6.91 | |||
Custom Invesco Multi-Asset Income Index∎ (Style-Specific Index) | 9.07 | |||
Lipper Mixed-Asset Target Allocation Conservative Funds Index◆ (Peer Group Index) | 6.91 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Invesco, RIMES Technologies Corp.; ◆Lipper Inc.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. The Custom Invesco Multi-Asset Income Index comprises the following indexes: 60% of the Bloomberg U.S. Aggregate Bond Index and 40% of the MSCI World Index. The MSCI World Index is an unmanaged index considered representative of stocks of developed countries. The index return is computed using the net return, which withholds applicable taxes for non-resident investors. The Lipper Mixed-Asset Target Allocation Conservative Funds Index is an unmanaged index considered representative of mixed-asset target allocation conservative 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 visiting invesco.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, visit blog.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 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (12/14/11) | 2.89 | % | ||
10 Years | 1.59 | |||
5 Years | -1.03 | |||
1 Year | -7.67 | |||
Class C Shares | ||||
Inception (12/14/11) | 2.85 | % | ||
10 Years | 1.56 | |||
5 Years | -0.66 | |||
1 Year | -3.94 | |||
Class R Shares | ||||
Inception (12/14/11) | 3.14 | % | ||
10 Years | 1.90 | |||
5 Years | -0.16 | |||
1 Year | -2.53 | |||
Class Y Shares | ||||
Inception (12/14/11) | 3.65 | % | ||
10 Years | 2.41 | |||
5 Years | 0.34 | |||
1 Year | -2.04 | |||
Class R5 Shares | ||||
Inception (12/14/11) | 3.66 | % | ||
10 Years | 2.41 | |||
5 Years | 0.35 | |||
1 Year | -2.03 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 2.88 | % | ||
10 Years | 2.43 | |||
5 Years | 0.38 | |||
1 Year | -1.99 |
The performance data quoted represent past performance and cannot guarantee 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.
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 Multi-Asset Income Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco Multi-Asset Income Fund |
April 30, 2023
(Unaudited)
Principal Amount | Value | |||||
U.S. Dollar Denominated Bonds & Notes–31.29% | ||||||
Advertising–0.11% | ||||||
Advantage Sales & Marketing, Inc., 6.50%, 11/15/2028(b)(c) | $ | 700,000 | $ 545,321 | |||
Belo Corp., 7.25%, 09/15/2027 | 813,000 | 770,381 | ||||
1,315,702 | ||||||
Aerospace & Defense–0.29% | ||||||
Boeing Co. (The), | ||||||
2.75%, 02/01/2026 | 119,000 | 112,832 | ||||
2.25%, 06/15/2026 | 134,000 | 123,519 | ||||
General Dynamics Corp., 3.25%, 04/01/2025 | 201,000 | 196,035 | ||||
Rolls-Royce PLC (United Kingdom), | ||||||
3.63%, 10/14/2025(b) | 870,000 | 826,500 | ||||
5.75%, 10/15/2027(b) | 984,000 | 983,055 | ||||
TransDigm, Inc., 6.25%, 03/15/2026(b) | 1,160,000 | 1,167,299 | ||||
3,409,240 | ||||||
Agricultural & Farm Machinery–0.05% | ||||||
Deere & Co., 2.75%, 04/15/2025 | 225,000 | 218,152 | ||||
Titan International, Inc., 7.00%, 04/30/2028 | 420,000 | 375,900 | ||||
594,052 | ||||||
Agricultural Products & Services–0.05% | ||||||
Darling Ingredients, Inc., 5.25%, 04/15/2027(b) | 622,000 | 610,413 | ||||
Air Freight & Logistics–0.07% | ||||||
Rand Parent LLC, 8.50%, 02/15/2030(b)(c) | 955,000 | 866,251 | ||||
Airport Services–0.02% | ||||||
Promontoria Holding 264 B.V. (Netherlands), 7.88%, 03/01/2027(b) | 263,000 | 266,178 | ||||
Alternative Carriers–0.07% | ||||||
Lumen Technologies, Inc., | 1,157,000 | 773,917 | ||||
Aluminum–0.11% | ||||||
Arconic Corp., 6.00%, 05/15/2025(b) | 744,000 | 741,552 | ||||
Kaiser Aluminum Corp., 4.50%, 06/01/2031(b)(c) | 400,000 | 317,494 | ||||
Novelis Corp., 3.25%, 11/15/2026(b) | 216,000 | 197,977 | ||||
1,257,023 | ||||||
Apparel Retail–0.08% | ||||||
Gap, Inc. (The), 3.63%, 10/01/2029(b) | 975,000 | 691,386 | ||||
Ross Stores, Inc., 0.88%, 04/15/2026 | 264,000 | 237,084 | ||||
928,470 |
Principal Amount | Value | |||||
Apparel, Accessories & Luxury Goods–0.15% | ||||||
G-III Apparel Group Ltd., 7.88%, 08/15/2025(b) | $ | 635,000 | $ 598,176 | |||
Hanesbrands, Inc., 4.88%, 05/15/2026(b)(c) | 495,000 | 467,098 | ||||
Under Armour, Inc., 3.25%, 06/15/2026 | 752,000 | 691,298 | ||||
1,756,572 | ||||||
Application Software–0.08% | ||||||
Adobe, Inc., 3.25%, 02/01/2025 | 225,000 | 220,850 | ||||
Cloud Software Group, Inc., 6.50%, 03/31/2029(b) | 308,000 | 277,734 | ||||
GoTo Group, Inc., 5.50%, 09/01/2027(b) | 739,000 | 416,800 | ||||
915,384 | ||||||
Asset Management & Custody Banks–0.10% | ||||||
Brightsphere Investment Group, Inc., 4.80%, 07/27/2026 | 528,000 | 493,093 | ||||
FS KKR Capital Corp., 4.63%, 07/15/2024 | 150,000 | 145,913 | ||||
Golub Capital BDC, Inc., 3.38%, 04/15/2024 | 193,000 | 186,707 | ||||
Legg Mason, Inc., 4.75%, 03/15/2026 | 59,000 | 58,527 | ||||
Main Street Capital Corp., 5.20%, 05/01/2024 | 174,000 | 171,074 | ||||
Owl Rock Capital Corp., 5.25%, 04/15/2024 | 138,000 | 135,820 | ||||
1,191,134 | ||||||
Automobile Manufacturers–0.48% | ||||||
Ford Motor Credit Co. LLC, | ||||||
2.30%, 02/10/2025(c) | 607,000 | 566,005 | ||||
4.69%, 06/09/2025 | 291,000 | 281,844 | ||||
5.13%, 06/16/2025 | 682,000 | 664,926 | ||||
4.13%, 08/04/2025 | 306,000 | 290,109 | ||||
3.38%, 11/13/2025 | 811,000 | 754,315 | ||||
4.39%, 08/01/2026 | 582,000 | 553,618 | ||||
4.27%, 01/09/2027 | 605,000 | 561,068 | ||||
General Motors Co., 6.13%, 10/01/2025 | 135,000 | 137,445 | ||||
J.B. Poindexter & Co., Inc., | 167,000 | 161,363 | ||||
Jaguar Land Rover Automotive PLC (United Kingdom), | ||||||
7.75%, 10/15/2025(b) | 434,000 | 431,467 | ||||
4.50%, 10/01/2027(b) | 412,000 | 345,631 | ||||
5.88%, 01/15/2028(b) | 585,000 | 506,480 | ||||
PM General Purchaser LLC, | 239,000 | 226,684 | ||||
Toyota Motor Credit Corp., | ||||||
3.20%, 01/11/2027 | 100,000 | 96,377 | ||||
1.15%, 08/13/2027 | 100,000 | 88,368 | ||||
5,665,700 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Automotive Parts & Equipment–0.33% | ||||||
American Honda Finance Corp., 2.35%, 01/08/2027 | $ | 170,000 | $ 158,848 | |||
Clarios Global L.P./Clarios US Finance Co., 8.50%, 05/15/2027(b) | 719,000 | 724,552 | ||||
Dana, Inc., 4.50%, 02/15/2032 | 283,000 | 226,585 | ||||
IHO Verwaltungs GmbH (Germany), 7.13% PIK Rate, 6.38% Cash Rate, | 1,757,000 | 1,583,574 | ||||
ZF North America Capital, Inc. (Germany), 4.75%, 04/29/2025(b) | 1,182,000 | 1,156,281 | ||||
3,849,840 | ||||||
Automotive Retail–0.02% | ||||||
Sonic Automotive, Inc., 4.63%, 11/15/2029(b)(c) | 250,000 | 210,010 | ||||
Broadcasting–0.29% | ||||||
AMC Networks, Inc., 4.75%, 08/01/2025 | 494,000 | 458,880 | ||||
iHeartCommunications, Inc., | ||||||
6.38%, 05/01/2026 | 490,000 | 421,159 | ||||
8.38%, 05/01/2027 | 532,000 | 351,565 | ||||
Liberty Interactive LLC, 8.25%, 02/01/2030 | 710,000 | 214,855 | ||||
Paramount Global, | ||||||
3.70%, 06/01/2028 | 125,000 | 114,723 | ||||
6.38%, 03/30/2062(c)(f) | 1,182,000 | 1,015,196 | ||||
Univision Communications, Inc., 5.13%, 02/15/2025(b) | 444,000 | 437,766 | ||||
Videotron Ltd. (Canada), 5.13%, 04/15/2027(b) | 411,000 | 397,236 | ||||
3,411,380 | ||||||
Broadline Retail–0.45% | ||||||
Amazon.com, Inc., | ||||||
3.30%, 04/13/2027(c) | 250,000 | 243,154 | ||||
1.65%, 05/12/2028 | 60,000 | 53,433 | ||||
GrubHub Holdings, Inc., 5.50%, 07/01/2027(b) | 289,000 | 211,347 | ||||
Kohl’s Corp., 4.63%, 05/01/2031(c) | 840,000 | 573,790 | ||||
Macy’s Retail Holdings LLC, 6.13%, 03/15/2032(b) | 1,569,000 | 1,375,025 | ||||
Nordstrom, Inc., | ||||||
4.00%, 03/15/2027(c) | 456,000 | 392,452 | ||||
6.95%, 03/15/2028(c) | 462,000 | 446,405 | ||||
4.38%, 04/01/2030 | 692,000 | 542,120 | ||||
4.25%, 08/01/2031(c) | 578,000 | 429,879 | ||||
QVC, Inc., | ||||||
4.45%, 02/15/2025 | 445,000 | 327,629 | ||||
4.75%, 02/15/2027 | 605,000 | 306,272 | ||||
4.38%, 09/01/2028 | 506,000 | 249,635 | ||||
5.45%, 08/15/2034 | 436,000 | 187,962 | ||||
5,339,103 | ||||||
Building Products–0.46% | ||||||
Builders FirstSource, Inc., | ||||||
4.25%, 02/01/2032(b)(c) | 591,000 | 518,508 | ||||
6.38%, 06/15/2032(b)(c) | 336,000 | 334,702 | ||||
Cornerstone Building Brands, Inc., 6.13%, 01/15/2029(b) | 269,000 | 202,736 |
Principal Amount | Value | |||||
Building Products–(continued) | ||||||
JELD-WEN, Inc., | ||||||
6.25%, 05/15/2025(b) | $ | 887,000 | $ 894,371 | |||
4.63%, 12/15/2025(b) | 521,000 | 503,518 | ||||
Masonite International Corp., | ||||||
5.38%, 02/01/2028(b) | 543,000 | 523,422 | ||||
3.50%, 02/15/2030(b) | 546,000 | 468,275 | ||||
Standard Industries, Inc., | ||||||
5.00%, 02/15/2027(b) | 630,000 | 603,464 | ||||
4.75%, 01/15/2028(b) | 967,000 | 905,370 | ||||
4.38%, 07/15/2030(b) | 509,000 | 439,971 | ||||
5,394,337 | ||||||
Cable & Satellite–0.67% | ||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | ||||||
5.50%, 05/01/2026(b) | 969,000 | 952,586 | ||||
5.13%, 05/01/2027(b) | 1,353,000 | 1,278,706 | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.91%, 07/23/2025 | 100,000 | 99,094 | ||||
CSC Holdings LLC, 4.50%, 11/15/2031(b) | 371,000 | 260,275 | ||||
DIRECTV Financing LLC/DIRECTV Financing Co-Obligor, Inc., 5.88%, 08/15/2027(b) | 1,863,000 | 1,636,962 | ||||
Discovery Communications LLC, 3.95%, 03/20/2028 | 200,000 | 187,436 | ||||
DISH DBS Corp., | ||||||
7.75%, 07/01/2026 | 915,000 | 529,675 | ||||
5.25%, 12/01/2026(b) | 532,000 | 407,356 | ||||
7.38%, 07/01/2028 | 814,000 | 408,668 | ||||
5.13%, 06/01/2029 | 751,000 | 347,082 | ||||
DISH Network Corp., 11.75%, 11/15/2027(b) | 820,000 | 775,514 | ||||
LCPR Senior Secured Financing DAC, 6.75%, 10/15/2027(b) | 982,000 | 934,130 | ||||
7,817,484 | ||||||
Cargo Ground Transportation–0.01% | ||||||
Ryder System, Inc., 5.65%, 03/01/2028 | 150,000 | 153,825 | ||||
Casinos & Gaming–0.57% | ||||||
Caesars Entertainment, Inc., 4.63%, 10/15/2029(b) | 283,000 | 248,529 | ||||
Caesars Resort Collection LLC/CRC Finco, Inc., 5.75%, 07/01/2025(b) | 264,000 | 266,416 | ||||
Codere Finance 2 (Luxembourg) S.A. (Spain), 11.63% PIK Rate, 2.00% Cash Rate, | 100,894 | 39,752 | ||||
Genting New York LLC/GENNY Capital, Inc., 3.30%, 02/15/2026(b) | 325,000 | 295,600 | ||||
International Game Technology PLC, | ||||||
6.50%, 02/15/2025(b) | 200,000 | 202,716 | ||||
4.13%, 04/15/2026(b) | 227,000 | 218,137 | ||||
Las Vegas Sands Corp., 2.90%, 06/25/2025 | 233,000 | 220,886 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Casinos & Gaming–(continued) |
| |||||
Melco Resorts Finance Ltd. | ||||||
4.88%, 06/06/2025(b) | $ | 616,000 | $ 579,308 | |||
5.25%, 04/26/2026(b) | 310,000 | 287,931 | ||||
5.75%, 07/21/2028(b) | 319,000 | 278,327 | ||||
MGM China Holdings Ltd. (Macau), | ||||||
5.25%, 06/18/2025(b) | 683,000 | 652,999 | ||||
4.75%, 02/01/2027(b) | 646,000 | 590,928 | ||||
MGM Resorts International, 6.75%, 05/01/2025 | 613,000 | 619,514 | ||||
Premier Entertainment Sub LLC/Premier Entertainment Finance Corp., 5.63%, 09/01/2029(b) | 447,000 | 324,608 | ||||
Sands China Ltd. (Macau), | 769,000 | 635,694 | ||||
Studio City Finance Ltd. (Macau), 6.00%, 07/15/2025(b) | 230,000 | 211,699 | ||||
Wynn Macau Ltd. (Macau), | ||||||
5.50%, 01/15/2026(b) | 385,000 | 356,765 | ||||
5.63%, 08/26/2028(b) | 740,000 | 646,790 | ||||
6,676,599 | ||||||
Coal & Consumable Fuels–0.07% | ||||||
Alliance Resource Operating Partners L.P./Alliance Resource Finance Corp., 7.50%, 05/01/2025(b) | 106,000 | 105,456 | ||||
Enviva Partners L.P./Enviva Partners Finance Corp., 6.50%, 01/15/2026(b)(c) | 903,000 | 771,142 | ||||
876,598 | ||||||
Commercial & Residential Mortgage Finance–0.15% | ||||||
Enact Holdings, Inc., 6.50%, 08/15/2025(b) | 729,000 | 722,705 | ||||
NMI Holdings, Inc., 7.38%, 06/01/2025(b) | 431,000 | 438,687 | ||||
PennyMac Financial Services, Inc., | ||||||
5.38%, 10/15/2025(b) | 362,000 | 342,083 | ||||
5.75%, 09/15/2031(b) | 280,000 | 234,098 | ||||
1,737,573 | ||||||
Commodity Chemicals–0.08% | ||||||
Methanex Corp. (Canada), | ||||||
5.25%, 12/15/2029(c) | 508,000 | 477,386 | ||||
5.65%, 12/01/2044(c) | 597,000 | 498,693 | ||||
976,079 | ||||||
Communications Equipment–0.26% | ||||||
CommScope Technologies LLC, 6.00%, 06/15/2025(b) | 477,000 | 449,006 | ||||
Hughes Satellite Systems Corp., | ||||||
5.25%, 08/01/2026(c) | 944,000 | 903,847 | ||||
6.63%, 08/01/2026(c) | 513,000 | 485,296 | ||||
Viasat, Inc., | ||||||
5.63%, 09/15/2025(b) | 1,055,000 | 1,008,601 | ||||
6.50%, 07/15/2028(b) | 277,000 | 220,083 | ||||
3,066,833 | ||||||
Computer & Electronics Retail–0.01% | ||||||
Dell International LLC/EMC Corp., 6.02%, 06/15/2026 | 125,000 | 128,689 |
Principal Amount | Value | |||||
Construction & Engineering–0.02% | ||||||
Howard Midstream Energy Partners LLC, 6.75%, 01/15/2027(b) | $ | 36,000 | $ 33,631 | |||
Tutor Perini Corp., 6.88%, 05/01/2025(b) | 264,000 | 191,540 | ||||
225,171 | ||||||
Construction Machinery & Heavy Transportation Equipment– 0.06% | ||||||
Caterpillar Financial Services Corp., 1.10%, 09/14/2027 | 130,000 | 114,750 | ||||
Manitowoc Co., Inc. (The), 9.00%, 04/01/2026(b)(c) | 403,000 | 400,495 | ||||
Wabtec Corp., 3.45%, 11/15/2026 | 235,000 | 224,202 | ||||
739,447 | ||||||
Construction Materials–0.07% | ||||||
Camelot Return Merger Sub, Inc., 8.75%, 08/01/2028(b)(c) | 427,000 | 405,112 | ||||
Eco Material Technologies, Inc., 7.88%, 01/31/2027(b) | 492,000 | 472,937 | ||||
878,049 | ||||||
Consumer Electronics–0.01% | ||||||
Tyco Electronics Group S.A., 3.13%, 08/15/2027 | 75,000 | 71,058 | ||||
Consumer Finance–0.52% | ||||||
Ally Financial, Inc., 5.75%, 11/20/2025(c) | 558,000 | 542,670 | ||||
American Express Co., 3.30%, 05/03/2027 | 130,000 | 123,921 | ||||
ASG Finance Designated Activity Co. (Cyprus), 7.88%, 12/03/2024(b) | 712,000 | 692,064 | ||||
Credit Acceptance Corp., 5.13%, 12/31/2024(b) | 495,000 | 472,225 | ||||
General Motors Financial Co., Inc., 2.75%, 06/20/2025 | 200,000 | 189,784 | ||||
goeasy Ltd. (Canada), 5.38%, 12/01/2024(b) | 335,000 | 318,531 | ||||
Navient Corp., | ||||||
5.88%, 10/25/2024 | 272,000 | 267,676 | ||||
5.00%, 03/15/2027 | 300,000 | 270,562 | ||||
4.88%, 03/15/2028 | 279,000 | 240,233 | ||||
5.50%, 03/15/2029 | 416,000 | 358,552 | ||||
5.63%, 08/01/2033 | 302,000 | 226,781 | ||||
OneMain Finance Corp., | ||||||
6.88%, 03/15/2025(c) | 686,000 | 672,181 | ||||
7.13%, 03/15/2026(c) | 952,000 | 928,882 | ||||
Synchrony Financial, | ||||||
3.95%, 12/01/2027 | 75,000 | 66,484 | ||||
7.25%, 02/02/2033(c) | 800,000 | 736,892 | ||||
6,107,438 | ||||||
Copper–0.01% | ||||||
Freeport-McMoRan, Inc., 5.00%, 09/01/2027 | 75,000 | 74,989 | ||||
Distillers & Vintners–0.01% | ||||||
Constellation Brands, Inc., 3.70%, 12/06/2026 | 117,000 | 113,747 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Distributors–0.02% | ||||||
Resideo Funding, Inc., 4.00%, 09/01/2029(b) | $ | 250,000 | $ 212,016 | |||
Diversified Banks–0.66% | ||||||
Banco Santander S.A. (Spain), | ||||||
2.75%, 05/28/2025 | 200,000 | 188,574 | ||||
4.25%, 04/11/2027 | 200,000 | 192,486 | ||||
Bank of America Corp., | ||||||
4.45%, 03/03/2026 | 200,000 | 197,167 | ||||
1.32%, 06/19/2026(f) | 160,000 | 146,419 | ||||
1.20%, 10/24/2026(f) | 160,000 | 144,822 | ||||
1.73%, 07/22/2027(f) | 70,000 | 62,759 | ||||
Series L, 4.18%, 11/25/2027 | 100,000 | 96,542 | ||||
Banque Centrale de Tunisie International Bond (Tunisia), 5.75%, 01/30/2025(b) | 600,000 | 312,002 | ||||
Barclays PLC (United Kingdom), 4.38%, 09/11/2024 | 306,000 | 297,636 | ||||
Canadian Imperial Bank of Commerce (Canada), 2.25%, 01/28/2025(c) | 350,000 | 334,068 | ||||
Citigroup, Inc., | ||||||
3.11%, 04/08/2026(f) | 225,000 | 216,575 | ||||
1.12%, 01/28/2027(f) | 110,000 | 98,870 | ||||
1.46%, 06/09/2027(f) | 140,000 | 125,748 | ||||
4.45%, 09/29/2027 | 75,000 | 73,361 | ||||
Freedom Mortgage Corp., 8.13%, 11/15/2024(b) | 427,000 | 411,807 | ||||
HSBC Holdings PLC (United Kingdom), | ||||||
1.59%, 05/24/2027(f) | 200,000 | 178,324 | ||||
2.25%, 11/22/2027(f) | 200,000 | 178,950 | ||||
ING Groep N.V. (Netherlands), 4.02%, 03/28/2028(f) | 200,000 | 191,169 | ||||
Intesa Sanpaolo S.p.A. (Italy), | ||||||
5.71%, 01/15/2026(b)(c) | 956,000 | 921,149 | ||||
4.20%, 06/01/2032(b)(f) | 940,000 | 713,346 | ||||
JPMorgan Chase & Co., | ||||||
2.30%, 10/15/2025(f) | 200,000 | 191,109 | ||||
2.01%, 03/13/2026(f) | 134,000 | 126,423 | ||||
2.08%, 04/22/2026(f) | 134,000 | 126,319 | ||||
1.05%, 11/19/2026(f) | 60,000 | 54,092 | ||||
4.25%, 10/01/2027 | 75,000 | 73,844 | ||||
2.18%, 06/01/2028(f) | 75,000 | 67,414 | ||||
Lloyds Banking Group PLC (United Kingdom), 4.45%, 05/08/2025 | 275,000 | 270,239 | ||||
Mitsubishi UFJ Financial Group, Inc. (Japan), | ||||||
0.96%, 10/11/2025(f) | 200,000 | 186,897 | ||||
3.68%, 02/22/2027 | 125,000 | 123,188 | ||||
3.29%, 07/25/2027 | 60,000 | 56,750 | ||||
PNC Bank N.A., 4.20%, 11/01/2025 | 275,000 | 266,662 | ||||
Royal Bank of Canada (Canada), 4.65%, 01/27/2026 | 125,000 | 123,780 | ||||
Sumitomo Mitsui Financial Group, Inc. (Japan), | ||||||
2.35%, 01/15/2025 | 275,000 | 261,589 | ||||
2.63%, 07/14/2026 | 150,000 | 140,250 | ||||
Toronto-Dominion Bank (The) (Canada), 5.16%, 01/10/2028 | 100,000 | 101,185 |
Principal Amount | Value | |||||
Diversified Banks–(continued) | ||||||
U.S. Bancorp, 1.45%, 05/12/2025 | $ | 125,000 | $ 116,060 | |||
Vnesheconombank Via VEB Finance PLC (Russia), 5.94%, 11/21/2023(b)(g)(h) | 1,450,000 | 0 | ||||
Wells Fargo & Co., | ||||||
2.19%, 04/30/2026(f) | 150,000 | 141,366 | ||||
4.30%, 07/22/2027 | 130,000 | 127,321 | ||||
Westpac Banking Corp. (Australia), | ||||||
3.40%, 01/25/2028 | 105,000 | 100,430 | ||||
1.95%, 11/20/2028 | 60,000 | 52,729 | ||||
7,789,421 | ||||||
Diversified Capital Markets–0.03% | ||||||
Deutsche Bank AG (Germany), | ||||||
3.70%, 05/30/2024 | 185,000 | 179,492 | ||||
3.70%, 05/30/2024 | 188,000 | 182,355 | ||||
361,847 | ||||||
Diversified Chemicals–0.12% | ||||||
Chemours Co. (The), | ||||||
5.75%, 11/15/2028(b) | 303,000 | 269,652 | ||||
4.63%, 11/15/2029(b)(c) | 974,000 | 803,125 | ||||
Trinseo Materials Operating S.C.A./Trinseo Materials Finance, Inc., 5.13%, 04/01/2029(b) | 476,000 | 295,579 | ||||
1,368,356 | ||||||
Diversified Financial Services–0.56% | ||||||
Albion Financing 1 S.a.r.l/Aggreko Holdings, Inc. (Luxembourg), 6.13%, 10/15/2026(b) | 439,000 | 400,658 | ||||
Albion Financing 2 S.a.r.l. (Luxembourg), 8.75%, 04/15/2027(b) | 635,000 | 554,928 | ||||
Corebridge Financial, Inc., 3.65%, 04/05/2027(b) | 130,000 | 122,858 | ||||
Jefferies Finance LLC/JFIN | 466,000 | 392,318 | ||||
Jefferson Capital Holdings LLC, 6.00%, 08/15/2026(b) | 251,000 | 214,527 | ||||
Midcap Financial Issuer Trust, | ||||||
6.50%, 05/01/2028(b) | 306,000 | 276,739 | ||||
5.63%, 01/15/2030(b) | 285,000 | 234,024 | ||||
PHH Mortgage Corp., 7.88%, 03/15/2026(b) | 1,299,000 | 1,168,769 | ||||
Photo Holdings Merger Sub, Inc., 8.50%, 10/01/2026(b) | 311,000 | 133,352 | ||||
Resorts World Las Vegas LLC/RWLV Capital, Inc., | ||||||
4.63%, 04/16/2029(b) | 1,200,000 | 964,250 | ||||
4.63%, 04/06/2031(b) | 500,000 | 391,737 | ||||
United Wholesale Mortgage LLC, | ||||||
5.50%, 11/15/2025(b) | 677,000 | 645,793 | ||||
5.75%, 06/15/2027(b) | 350,000 | 319,266 | ||||
5.50%, 04/15/2029(b)(c) | 410,000 | 354,043 | ||||
VistaJet Malta Finance PLC/XO Management Holding, Inc. (Switzerland), 6.38%, 02/01/2030(b) | 407,000 | 352,558 | ||||
6,525,820 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Diversified Metals & Mining–0.26% | ||||||
Corporacion Nacional del Cobre de Chile (Chile), 3.63%, 08/01/2027(b) | $ | 1,524,000 | $ 1,455,818 | |||
Mineral Resources Ltd. (Australia), 8.13%, 05/01/2027(b) | 928,000 | 937,034 | ||||
Perenti Finance Pty. Ltd. (Australia), 6.50%, 10/07/2025(b) | 740,000 | 720,575 | ||||
3,113,427 | ||||||
Diversified Real Estate Activities–0.06% | ||||||
Five Point Operating Co. L.P./Five Point Capital Corp., 7.88%, 11/15/2025(b) | 321,000 | 290,205 | ||||
Greystar Real Estate Partners LLC, 5.75%, 12/01/2025(b) | 376,000 | 368,179 | ||||
658,384 | ||||||
Diversified REITs–0.07% | ||||||
HAT Holdings I LLC/HAT Holdings II LLC, 3.38%, 06/15/2026(b) | 253,000 | 224,843 | ||||
MGM Growth Properties Operating Partnership L.P./MGP Finance Co-Issuer, Inc., 4.63%, 06/15/2025(b) | 630,000 | 614,124 | ||||
838,967 | ||||||
Diversified Support Services–0.14% | ||||||
MPH Acquisition Holdings LLC, | ||||||
5.50%, 09/01/2028(b) | 606,000 | 463,863 | ||||
5.75%, 11/01/2028(b)(c) | 528,000 | 334,453 | ||||
Neptune Bidco US, Inc., 9.29%, 04/15/2029(b) | 824,000 | 776,352 | ||||
Ritchie Bros. Holdings, Inc. (Canada), 6.75%, 03/15/2028(b) | 96,000 | 99,480 | ||||
1,674,148 | ||||||
Drug Retail–0.01% | ||||||
Walgreens Boots Alliance, Inc., 3.45%, 06/01/2026 | 75,000 | 72,132 | ||||
Electric Utilities–0.33% | ||||||
Drax Finco PLC (United Kingdom), 6.63%, 11/01/2025(b) | 706,000 | 689,377 | ||||
Duke Energy Corp., 3.75%, 04/15/2024 | 200,000 | 196,839 | ||||
Edison International, | ||||||
5.75%, 06/15/2027 | 75,000 | 77,046 | ||||
4.13%, 03/15/2028 | 100,000 | 95,564 | ||||
NRG Energy, Inc., | ||||||
5.25%, 06/15/2029(b)(c) | 540,000 | 498,724 | ||||
3.63%, 02/15/2031(b) | 1,103,000 | 894,466 | ||||
3.88%, 02/15/2032(b) | 854,000 | 690,660 | ||||
Pacific Gas and Electric Co., 3.30%, 12/01/2027 | 100,000 | 90,947 | ||||
PG&E Corp., 5.25%, 07/01/2030 | 523,000 | 482,530 | ||||
System Energy Resources, Inc., 6.00%, 04/15/2028 | 150,000 | 154,829 | ||||
3,870,982 |
Principal Amount | Value | |||||
Electrical Components & Equipment–0.10% | ||||||
Emerson Electric Co., 1.80%, 10/15/2027 | $ | 80,000 | $ 72,248 | |||
EnerSys, 4.38%, 12/15/2027(b) | 222,000 | 208,265 | ||||
WESCO Distribution, Inc., 7.13%, 06/15/2025(b) | 863,000 | 878,915 | ||||
1,159,428 | ||||||
Electronic Components–0.08% | ||||||
Imola Merger Corp., 4.75%, 05/15/2029(b) | 774,000 | 671,102 | ||||
Likewize Corp., 9.75%, 10/15/2025(b) | 239,000 | 213,886 | ||||
884,988 | ||||||
Environmental & Facilities Services–0.07% | ||||||
GFL Environmental, Inc. (Canada), 3.75%, 08/01/2025(b) | 190,000 | 183,911 | ||||
Harsco Corp., 5.75%, 07/31/2027(b) | 763,000 | 645,254 | ||||
829,165 | ||||||
Financial Exchanges & Data–0.08% | ||||||
Cboe Global Markets, Inc., 3.65%, 01/12/2027 | 60,000 | 58,470 | ||||
Coinbase Global, Inc., 3.38%, 10/01/2028(b) | 1,215,000 | 735,075 | ||||
Intercontinental Exchange, Inc., 3.10%, 09/15/2027 | 75,000 | 71,005 | ||||
S&P Global, Inc., 2.45%, 03/01/2027 | 65,000 | 61,029 | ||||
925,579 | ||||||
Food Distributors–0.10% | ||||||
C&S Group Enterprises LLC, 5.00%, 12/15/2028(b) | 1,087,000 | 859,111 | ||||
US Foods, Inc., 6.25%, 04/15/2025(b) | 307,000 | 309,066 | ||||
1,168,177 | ||||||
Food Retail–0.02% | ||||||
Albertson’s Cos., Inc./Safeway, Inc./New Albertson’s L.P./Albertson’s LLC, 4.63%, 01/15/2027(b) | 200,000 | 193,627 | ||||
Footwear–0.03% | ||||||
Abercrombie & Fitch Management Co., 8.75%, 07/15/2025(b)(c) | 401,000 | 407,506 | ||||
Gas Utilities–0.05% | ||||||
AmeriGas Partners L.P./AmeriGas Finance Corp., 5.50%, 05/20/2025 | 184,000 | 178,922 | ||||
Ferrellgas L.P./Ferrellgas Finance Corp., 5.88%, 04/01/2029(b) | 458,000 | 387,436 | ||||
Southwest Gas Corp., 5.45%, 03/23/2028 | 80,000 | 81,366 | ||||
647,724 | ||||||
Gold–0.03% | ||||||
Coeur Mining, Inc., 5.13%, 02/15/2029(b)(c) | 380,000 | 313,728 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Health Care Distributors–0.06% | ||||||
CommonSpirit Health, 1.55%, 10/01/2025 | $ | 64,000 | $ 59,053 | |||
Owens & Minor, Inc., 6.63%, 04/01/2030(b)(c) | 712,000 | 620,298 | ||||
679,351 | ||||||
Health Care Equipment–0.23% | ||||||
Baxter International, Inc., 2.27%, 12/01/2028 | 125,000 | 109,222 | ||||
Community Health Systems, Inc., | ||||||
5.63%, 03/15/2027(b) | 707,000 | 653,322 | ||||
6.88%, 04/15/2029(b) | 650,000 | 481,588 | ||||
6.13%, 04/01/2030(b) | 530,000 | 377,689 | ||||
RP Escrow Issuer LLC, 5.25%, 12/15/2025(b) | 397,000 | 278,892 | ||||
Varex Imaging Corp., 7.88%, 10/15/2027(b) | 810,000 | 802,763 | ||||
2,703,476 | ||||||
Health Care Facilities–0.26% | ||||||
HCA, Inc., 5.63%, 09/01/2028 | 200,000 | 204,256 | ||||
Legacy LifePoint Health LLC, 6.75%, 04/15/2025(b) | 820,000 | 790,080 | ||||
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc., 9.75%, 12/01/2026(b) | 522,000 | 434,800 | ||||
Tenet Healthcare Corp., | ||||||
4.63%, 07/15/2024 | 226,000 | 224,399 | ||||
4.88%, 01/01/2026 | 1,293,000 | 1,275,261 | ||||
Universal Health Services, Inc., 1.65%, 09/01/2026 | 134,000 | 118,506 | ||||
3,047,302 | ||||||
Health Care REITs–0.13% | ||||||
MPT Operating Partnership L.P./MPT Finance Corp., | ||||||
5.00%, 10/15/2027(c) | 952,000 | 798,689 | ||||
4.63%, 08/01/2029(c) | 847,000 | 642,426 | ||||
Omega Healthcare Investors, Inc., 5.25%, 01/15/2026 | 120,000 | 117,420 | ||||
1,558,535 | ||||||
Health Care Services–0.26% | ||||||
Community Health Systems, Inc., | ||||||
8.00%, 03/15/2026(b)(c) | 600,000 | 595,447 | ||||
8.00%, 12/15/2027(b) | 329,000 | 326,356 | ||||
5.25%, 05/15/2030(b) | 746,000 | 622,462 | ||||
ModivCare, Inc., 5.88%, 11/15/2025(b) | 624,000 | 596,862 | ||||
Prime Healthcare Services, Inc., 7.25%, 11/01/2025(b) | 453,000 | 409,417 | ||||
Sutter Health, Series 20A, | 167,000 | 154,183 | ||||
US Acute Care Solutions LLC, 6.38%, 03/01/2026(b) | 361,000 | 322,582 | ||||
3,027,309 | ||||||
Health Care Technology–0.06% | ||||||
AthenaHealth Group, Inc., 6.50%, 02/15/2030(b) | 858,000 | 705,541 | ||||
Home Furnishings–0.07% | ||||||
Tempur Sealy International, Inc., 3.88%, 10/15/2031(b)(c) | 937,000 | 778,144 |
Principal Amount | Value | |||||
Home Improvement Retail–0.04% | ||||||
Home Depot, Inc. (The), 2.50%, 04/15/2027 | $ | 80,000 | $ 75,825 | |||
Specialty Building Products Holdings LLC/SBP Finance Corp., 6.38%, 09/30/2026(b) | 485,000 | 440,770 | ||||
516,595 | ||||||
Homebuilding–0.30% | ||||||
Beazer Homes USA, Inc., 5.88%, 10/15/2027(c) | 750,000 | 694,762 | ||||
Empire Communities Corp. (Canada), 7.00%, 12/15/2025(b) | 477,000 | 436,982 | ||||
Lennar Corp., 4.75%, 11/29/2027 | 60,000 | 59,483 | ||||
LGI Homes, Inc., 4.00%, 07/15/2029(b) | 508,000 | 415,472 | ||||
Mattamy Group Corp. (Canada), 4.63%, 03/01/2030(b) | 276,000 | 242,280 | ||||
Meritage Homes Corp., 6.00%, 06/01/2025 | 246,000 | 247,581 | ||||
New Home Co., Inc. (The), 7.25%, 10/15/2025(b) | 486,000 | 453,778 | ||||
Taylor Morrison Communities, Inc., 5.75%, 01/15/2028(b) | 100,000 | 99,231 | ||||
TopBuild Corp., 4.13%, 02/15/2032(b) | 1,060,000 | 912,417 | ||||
3,561,986 | ||||||
Hotel & Resort REITs–0.09% | ||||||
Host Hotels & Resorts L.P., | 50,000 | 48,887 | ||||
Service Properties Trust, | ||||||
5.25%, 02/15/2026 | 323,000 | 287,258 | ||||
4.95%, 02/15/2027 | 277,000 | 235,119 | ||||
4.95%, 10/01/2029 | 595,000 | 451,539 | ||||
1,022,803 | ||||||
Hotels, Resorts & Cruise Lines–0.48% | ||||||
Booking Holdings, Inc., 3.55%, 03/15/2028 | 50,000 | 48,277 | ||||
Carnival Corp., | ||||||
7.63%, 03/01/2026(b)(c) | 587,000 | 537,381 | ||||
5.75%, 03/01/2027(b) | 1,706,000 | 1,405,914 | ||||
6.00%, 05/01/2029(b) | 745,000 | 585,420 | ||||
10.50%, 06/01/2030(b)(c) | 479,000 | 454,997 | ||||
Hilton Domestic Operating Co., Inc., 5.38%, 05/01/2025(b)(c) | 490,000 | 489,722 | ||||
Royal Caribbean Cruises Ltd., | ||||||
11.50%, 06/01/2025(b) | 368,000 | 391,037 | ||||
11.63%, 08/15/2027(b) | 629,000 | 669,746 | ||||
5.50%, 04/01/2028(b)(c) | 631,000 | 557,009 | ||||
Six Flags Theme Parks, Inc., 7.00%, 07/01/2025(b) | 96,000 | 97,304 | ||||
Travel + Leisure Co., 6.60%, 10/01/2025 | 444,000 | 445,603 | ||||
5,682,410 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Housewares & Specialties–0.13% |
| |||||
Newell Brands, Inc., | ||||||
4.88%, 06/01/2025 | $ | 490,000 | $ 477,518 | |||
4.70%, 04/01/2026 | 1,099,000 | 1,050,688 | ||||
1,528,206 | ||||||
Human Resource & Employment Services–0.01% | ||||||
Automatic Data Processing, Inc., 3.38%, 09/15/2025 | 100,000 | 98,157 | ||||
Independent Power Producers & Energy Traders–0.11% | ||||||
EnfraGen Energia Sur S.A./EnfraGen Spain S.A./Prime Energia S.p.A. (Colombia), 5.38%, 12/30/2030(b) | 1,044,000 | 662,157 | ||||
Vistra Operations Co. LLC, 5.63%, 02/15/2027(b) | 689,000 | 673,103 | ||||
1,335,260 | ||||||
Industrial Conglomerates–0.01% | ||||||
Berkshire Hathaway Energy Co., 3.50%, 02/01/2025 | 127,000 | 124,220 | ||||
Industrial Machinery & Supplies & Components–0.11% | ||||||
Chart Industries, Inc., 9.50%, 01/01/2031(b) | 772,000 | 818,258 | ||||
JPW Industries Holding Corp., 9.00%, 10/01/2024(b) | 457,000 | 410,925 | ||||
Stanley Black & Decker, Inc., 3.40%, 03/01/2026 | 80,000 | 77,197 | ||||
1,306,380 | ||||||
Insurance Brokers–0.01% | ||||||
Willis North America, Inc., 4.65%, 06/15/2027 | 75,000 | 73,903 | ||||
Integrated Oil & Gas–0.46% | ||||||
BP Capital Markets America, Inc., 3.54%, 04/06/2027 | 75,000 | 73,289 | ||||
Chevron USA, Inc., 1.02%, 08/12/2027 | 100,000 | 88,862 | ||||
Exxon Mobil Corp., 3.29%, 03/19/2027 | 110,000 | 107,910 | ||||
Occidental Petroleum Corp., | ||||||
5.88%, 09/01/2025(c) | 556,000 | 562,459 | ||||
5.50%, 12/01/2025(c) | 464,000 | 465,931 | ||||
5.55%, 03/15/2026(c) | 299,000 | 301,888 | ||||
Petroleos Mexicanos (Mexico), 7.69%, 01/23/2050 | 4,600,000 | 3,069,407 | ||||
Qatar Energy (Qatar), 1.38%, 09/12/2026(b) | 800,000 | 727,468 | ||||
5,397,214 | ||||||
Integrated Telecommunication Services–0.61% | ||||||
Altice France Holding S.A. (Luxembourg), 10.50%, 05/15/2027(b) | 574,000 | 424,452 | ||||
Altice France S.A. (France), | ||||||
5.13%, 07/15/2029(b) | 200,000 | 148,050 | ||||
5.50%, 10/15/2029(b) | 200,000 | 149,896 | ||||
Connect Finco S.a.r.l./Connect US Finco LLC (United Kingdom), 6.75%, 10/01/2026(b) | 1,400,000 | 1,336,122 | ||||
Consolidated Communications, Inc., 6.50%, 10/01/2028(b) | 292,000 | 228,490 |
Principal Amount | Value | |||||
Integrated Telecommunication Services–(continued) | ||||||
Frontier Communications Holdings LLC, | ||||||
5.88%, 11/01/2029 | $ | 760,000 | $ 578,819 | |||
6.00%, 01/15/2030(b) | 266,000 | 203,744 | ||||
Iliad Holding S.A.S. (France), | 889,000 | 856,205 | ||||
Level 3 Financing, Inc., 10.50%, 05/15/2030(b) | 643,000 | 616,215 | ||||
Telecom Italia Capital S.A. (Italy), | ||||||
6.38%, 11/15/2033 | 548,000 | 490,701 | ||||
7.72%, 06/04/2038 | 414,000 | 387,541 | ||||
Telecom Italia S.p.A. (Italy), | 696,000 | 680,580 | ||||
Windstream Escrow LLC/ Windstream Escrow Finance Corp., 7.75%, 08/15/2028(b) | 1,228,000 | 1,012,583 | ||||
7,113,398 | ||||||
Interactive Media & Services–0.10% | ||||||
CSC Holdings LLC, | ||||||
5.25%, 06/01/2024 | 440,000 | 429,578 | ||||
7.50%, 04/01/2028(b) | 411,000 | 257,377 | ||||
5.75%, 01/15/2030(b) | 452,000 | 231,082 | ||||
5.00%, 11/15/2031(b) | 320,000 | 153,875 | ||||
TripAdvisor, Inc., 7.00%, 07/15/2025(b) | 133,000 | 133,986 | ||||
1,205,898 | ||||||
Internet Services & Infrastructure–0.06% | ||||||
Booz Allen Hamilton, Inc., 3.88%, 09/01/2028(b) | 329,000 | 301,798 | ||||
Cogent Communications Group, Inc., 3.50%, 05/01/2026(b) | 261,000 | 242,896 | ||||
VeriSign, Inc., 5.25%, 04/01/2025 | 150,000 | 150,696 | ||||
695,390 | ||||||
Investment Banking & Brokerage–0.27% | ||||||
Goldman Sachs Group, Inc. (The), | ||||||
3.85%, 01/26/2027 | 125,000 | 121,086 | ||||
1.54%, 09/10/2027(f) | 140,000 | 124,139 | ||||
1.95%, 10/21/2027(f) | 75,000 | 67,212 | ||||
3.62%, 03/15/2028(f) | 105,000 | 100,035 | ||||
Icahn Enterprises L.P./Icahn Enterprises Finance Corp., | ||||||
6.38%, 12/15/2025 | 667,000 | 662,400 | ||||
6.25%, 05/15/2026 | 719,000 | 708,431 | ||||
Morgan Stanley, | ||||||
2.72%, 07/22/2025(f) | 100,000 | 96,500 | ||||
3.63%, 01/20/2027 | 130,000 | 125,262 | ||||
1.59%, 05/04/2027(f) | 110,000 | 98,998 | ||||
1.51%, 07/20/2027(f) | 110,000 | 97,802 | ||||
6.30%, 10/18/2028(f)(i) | 100,000 | 105,115 | ||||
NFP Corp., 6.88%, 08/15/2028(b) | 763,000 | 666,364 | ||||
Nomura Holdings, Inc. (Japan), 1.65%, 07/14/2026 | 200,000 | 177,364 | ||||
3,150,708 | ||||||
IT Consulting & Other Services–0.19% | ||||||
Conduent Business Services LLC/Conduent State & Local Solutions, Inc., 6.00%, 11/01/2029(b) | 273,000 | 224,639 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
IT Consulting & Other Services–(continued) | ||||||
International Business Machines Corp., | ||||||
3.45%, 02/19/2026 | $ | 150,000 | $ 146,142 | |||
3.30%, 05/15/2026 | 100,000 | 96,993 | ||||
Kyndryl Holdings, Inc., 2.05%, 10/15/2026 | 100,000 | 87,683 | ||||
Sabre GLBL, Inc., | ||||||
9.25%, 04/15/2025(b) | 1,014,000 | 936,424 | ||||
7.38%, 09/01/2025(b) | 682,000 | 606,813 | ||||
Unisys Corp., 6.88%, 11/01/2027(b) | 280,000 | 186,739 | ||||
2,285,433 | ||||||
Leisure Facilities–0.10% | ||||||
Carnival Holdings Bermuda Ltd., 10.38%, 05/01/2028(b)(c) | 450,000 | 484,242 | ||||
Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp., 5.50%, 05/01/2025(b) | 100,000 | 99,821 | ||||
NCL Corp. Ltd., 5.88%, 02/15/2027(b) | 634,000 | 598,647 | ||||
1,182,710 | ||||||
Leisure Products–0.04% | ||||||
Mattel, Inc., 3.38%, 04/01/2026(b) | 513,000 | 485,753 | ||||
Life & Health Insurance–0.01% | ||||||
Principal Financial Group, Inc., 3.40%, 05/15/2025 | 160,000 | 155,018 | ||||
Life Sciences Tools & Services–0.06% | ||||||
IQVIA, Inc., | ||||||
5.00%, 10/15/2026(b) | 308,000 | 303,112 | ||||
5.00%, 05/15/2027(b) | 419,000 | 409,437 | ||||
712,549 | ||||||
Managed Health Care–0.00% | ||||||
Centene Corp., 2.45%, 07/15/2028 | 60,000 | 52,204 | ||||
Marine Ports & Services–0.08% | ||||||
DP World Ltd. (United Arab Emirates), 6.85%, 07/02/2037(b) | 810,000 | 908,537 | ||||
Marine Transportation–0.06% | ||||||
NCL Corp. Ltd., 5.88%, 03/15/2026(b)(c) | 524,000 | 451,923 | ||||
Seaspan Corp. (Hong Kong), 5.50%, 08/01/2029(b) | 276,000 | 221,142 | ||||
673,065 | ||||||
Metal, Glass & Plastic Containers–0.18% | ||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., | ||||||
5.25%, 04/30/2025(b) | 819,000 | 806,687 | ||||
4.13%, 08/15/2026(b) | 307,000 | 289,677 | ||||
Ball Corp., | ||||||
5.25%, 07/01/2025 | 585,000 | 585,349 | ||||
4.88%, 03/15/2026 | 198,000 | 196,373 |
Principal Amount | Value | |||||
Metal, Glass & Plastic Containers–(continued) | ||||||
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC (Canada), 6.00%, 09/15/2028(b) | $ | 350,000 | $ 291,800 | |||
2,169,886 | ||||||
Mortgage REITs–0.03% | ||||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.75%, 06/15/2029(b) | 420,000 | 332,751 | ||||
Movies & Entertainment–0.22% | ||||||
Cinemark USA, Inc., 8.75%, 05/01/2025(b) | 388,000 | 396,282 | ||||
Netflix, Inc., | ||||||
5.88%, 02/15/2025 | 496,000 | 503,761 | ||||
6.38%, 05/15/2029 | 697,000 | 753,735 | ||||
5.38%, 11/15/2029(b)(c) | 393,000 | 402,120 | ||||
Odeon Finco PLC (United Kingdom), 12.75%, 11/01/2027(b) | 617,000 | 588,467 | ||||
2,644,365 | ||||||
Multi-line Insurance–0.01% | ||||||
Boardwalk Pipelines L.P., 5.95%, 06/01/2026 | 94,000 | 95,938 | ||||
Multi-Utilities–0.11% | ||||||
Algonquin Power & Utilities Corp. (Canada), 4.75%, 01/18/2082(f) | 1,037,000 | 839,854 | ||||
DTE Energy Co., Series E, Investment Units, 5.25%, 12/01/2077 | 11,763 | 280,783 | ||||
Public Service Enterprise Group, Inc., 2.88%, 06/15/2024 | 230,000 | 224,021 | ||||
1,344,658 | ||||||
Office REITs–0.08% | ||||||
Office Properties Income Trust, | ||||||
4.50%, 02/01/2025(c) | 678,000 | 577,128 | ||||
2.65%, 06/15/2026 | 133,000 | 93,186 | ||||
2.40%, 02/01/2027 | 358,000 | 229,885 | ||||
900,199 | ||||||
Office Services & Supplies–0.15% | ||||||
ACCO Brands Corp., 4.25%, 03/15/2029(b) | 1,090,000 | 919,687 | ||||
Pitney Bowes, Inc., | ||||||
6.88%, 03/15/2027(b) | 578,000 | 445,366 | ||||
7.25%, 03/15/2029(b) | 540,000 | 397,470 | ||||
1,762,523 | ||||||
Oil & Gas Drilling–0.22% | ||||||
Delek Logistics Partners L.P./Delek Logistics Finance Corp., 7.13%, 06/01/2028(b) | 370,000 | 337,396 | ||||
Harvest Midstream I L.P., 7.50%, 09/01/2028(b) | 305,000 | 298,745 | ||||
NGL Energy Operating LLC/NGL Energy Finance Corp., 7.50%, 02/01/2026(b) | 981,000 | 941,559 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Oil & Gas Drilling–(continued) | ||||||
Rockies Express Pipeline LLC, | ||||||
4.80%, 05/15/2030(b) | $ | 142,000 | $ 126,670 | |||
7.50%, 07/15/2038(b) | 366,000 | 335,929 | ||||
6.88%, 04/15/2040(b) | 620,000 | 540,401 | ||||
2,580,700 | ||||||
Oil & Gas Equipment & Services–0.06% | ||||||
Baker Hughes Holdings LLC/Baker Hughes Co-Obligor, Inc., 3.34%, 12/15/2027 | 75,000 | 71,364 | ||||
USA Compression Partners L.P./USA Compression Finance Corp., 6.88%, 04/01/2026(c) | 622,000 | 616,094 | ||||
687,458 | ||||||
Oil & Gas Exploration & Production–1.06% | ||||||
Civitas Resources, Inc., 5.00%, 10/15/2026(b) | 427,000 | 401,848 | ||||
CNX Resources Corp., 6.00%, 01/15/2029(b) | 505,000 | 467,725 | ||||
Comstock Resources, Inc., | 1,020,000 | 924,525 | ||||
Crescent Energy Finance LLC, | ||||||
7.25%, 05/01/2026(b) | 615,000 | 589,911 | ||||
9.25%, 02/15/2028(b) | 405,000 | 404,445 | ||||
Devon Energy Corp., 5.25%, 10/15/2027 | 75,000 | 74,906 | ||||
Encino Acquisition Partners Holdings LLC, 8.50%, 05/01/2028(b) | 616,000 | 546,867 | ||||
Hilcorp Energy I L.P./Hilcorp Finance Co., | ||||||
6.25%, 11/01/2028(b) | 403,000 | 386,466 | ||||
5.75%, 02/01/2029(b) | 553,000 | 517,145 | ||||
6.00%, 04/15/2030(b) | 307,000 | 286,409 | ||||
6.00%, 02/01/2031(b) | 788,000 | 729,194 | ||||
Ithaca Energy North Sea PLC (United Kingdom), 9.00%, 07/15/2026(b) | 249,000 | 239,965 | ||||
Moss Creek Resources Holdings, Inc., | ||||||
7.50%, 01/15/2026(b) | 344,000 | 322,006 | ||||
10.50%, 05/15/2027(b) | 284,000 | 274,538 | ||||
Murphy Oil Corp., | ||||||
5.75%, 08/15/2025 | 187,000 | 185,689 | ||||
7.05%, 05/01/2029 | 473,000 | 482,582 | ||||
6.13%, 12/01/2042 | 214,000 | 183,533 | ||||
PDC Energy, Inc., 5.75%, 05/15/2026 | 496,000 | 482,125 | ||||
Range Resources Corp., 4.88%, 05/15/2025(c) | 467,000 | 461,363 | ||||
Sinopec Group Overseas Development 2018 Ltd. (China), 2.95%, 11/12/2029(b) | 2,760,000 | 2,557,968 | ||||
SM Energy Co., 6.63%, 01/15/2027(c) | 423,000 | 408,939 | ||||
Strathcona Resources Ltd. (Canada), 6.88%, 08/01/2026(b) | 668,000 | 565,667 | ||||
Talos Production, Inc., 12.00%, 01/15/2026 | 288,000 | 304,835 |
Principal Amount | Value | |||||
Oil & Gas Exploration & Production–(continued) | ||||||
Tap Rock Resources LLC, 7.00%, 10/01/2026(b) | $ | 632,000 | $ 607,861 | |||
12,406,512 | ||||||
Oil & Gas Refining & Marketing–0.28% | ||||||
CVR Energy, Inc., 5.25%, 02/15/2025(b) | 158,000 | 152,959 | ||||
EnLink Midstream Partners L.P., 5.60%, 04/01/2044 | 454,000 | 377,883 | ||||
HF Sinclair Corp., 5.88%, 04/01/2026 | 94,000 | 95,346 | ||||
NuStar Logistics L.P., | ||||||
6.00%, 06/01/2026 | 422,000 | 415,831 | ||||
5.63%, 04/28/2027 | 555,000 | 530,281 | ||||
Parkland Corp. (Canada), 4.50%, 10/01/2029(b) | 229,000 | 200,920 | ||||
Petronas Capital Ltd. (Malaysia), 3.50%, 03/18/2025(b) | 1,000,000 | 981,045 | ||||
Puma International Financing S.A. (Singapore), 5.13%, 10/06/2024(b) | 600,000 | 576,600 | ||||
3,330,865 | ||||||
Oil & Gas Storage & Transportation–0.99% | ||||||
Abu Dhabi Crude Oil Pipeline LLC (United Arab Emirates), 4.60%, 11/02/2047(b) | 1,587,000 | 1,501,413 | ||||
Cheniere Corpus Christi Holdings LLC, 5.13%, 06/30/2027 | 125,000 | 125,649 | ||||
Crestwood Midstream Partners L.P./Crestwood Midstream Finance Corp., 5.75%, 04/01/2025 | 151,000 | 148,961 | ||||
Energy Transfer L.P., | ||||||
3.90%, 05/15/2024 | 236,000 | 232,039 | ||||
4.40%, 03/15/2027 | 60,000 | 58,564 | ||||
5.50%, 06/01/2027 | 50,000 | 50,766 | ||||
EQM Midstream Partners L.P., | ||||||
6.00%, 07/01/2025(b) | 100,000 | 98,373 | ||||
5.50%, 07/15/2028(c) | 381,000 | 347,654 | ||||
4.50%, 01/15/2029(b) | 317,000 | 269,810 | ||||
7.50%, 06/01/2030(b) | 224,000 | 217,662 | ||||
6.50%, 07/15/2048 | 1,568,000 | 1,189,314 | ||||
Genesis Energy L.P./Genesis Energy Finance Corp., | ||||||
8.00%, 01/15/2027 | 471,000 | 470,482 | ||||
7.75%, 02/01/2028 | 350,000 | 344,916 | ||||
Hess Midstream Operations L.P., 5.63%, 02/15/2026(b) | 243,000 | 239,508 | ||||
Holly Energy Partners L.P./Holly Energy Finance Corp., 5.00%, 02/01/2028(b) | 313,000 | 292,231 | ||||
ITT Holdings LLC, 6.50%, 08/01/2029(b) | 497,000 | 413,149 | ||||
New Fortress Energy, Inc., | ||||||
6.75%, 09/15/2025(b) | 1,188,000 | 1,132,968 | ||||
6.50%, 09/30/2026(b) | 782,000 | 721,090 | ||||
Northriver Midstream Finance L.P. (Canada), 5.63%, 02/15/2026(b) | 443,000 | 416,398 | ||||
Rockies Express Pipeline LLC, 4.95%, 07/15/2029(b) | 570,000 | 527,108 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Oil & Gas Storage & Transportation–(continued) | ||||||
Southeast Supply Header LLC, 4.25%, 06/15/2024(b) | $ | 214,000 | $ 202,221 | |||
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 8.50%, 10/15/2026(b) | 948,000 | 911,227 | ||||
Tallgrass Energy Partners L.P./Tallgrass Energy Finance Corp., | ||||||
7.50%, 10/01/2025(b) | 358,000 | 361,120 | ||||
5.50%, 01/15/2028(b) | 758,000 | 702,263 | ||||
6.00%, 12/31/2030(b) | 495,000 | 440,158 | ||||
Western Midstream Operating L.P., 3.35%, 02/01/2025 | 243,000 | 232,385 | ||||
11,647,429 | ||||||
Other Specialized REITs–0.07% | ||||||
EPR Properties, 4.75%, 12/15/2026 | 75,000 | 68,370 | ||||
GLP Capital L.P./GLP Financing II, Inc., 3.35%, 09/01/2024 | 100,000 | 96,858 | ||||
Iron Mountain, Inc., | ||||||
5.25%, 07/15/2030(b) | 522,000 | 481,460 | ||||
4.50%, 02/15/2031(b) | 262,000 | 228,142 | ||||
874,830 | ||||||
Other Specialty Retail–0.18% | ||||||
Bath & Body Works, Inc., | ||||||
6.88%, 11/01/2035 | 692,000 | 627,264 | ||||
6.75%, 07/01/2036 | 175,000 | 155,995 | ||||
LSF9 Atlantis Holdings LLC/Victra Finance Corp., 7.75%, 02/15/2026(b) | 377,000 | 353,864 | ||||
Michaels Cos., Inc. (The), 5.25%, 05/01/2028(b)(c) | 427,000 | 352,189 | ||||
Staples, Inc., 7.50%, 04/15/2026(b) | 786,000 | 663,759 | ||||
2,153,071 | ||||||
Packaged Foods & Meats–0.09% | ||||||
Aramark Services, Inc., 6.38%, 05/01/2025(b) | 395,000 | 395,513 | ||||
Conagra Brands, Inc., 1.38%, 11/01/2027 | 100,000 | 86,278 | ||||
TKC Holdings, Inc., 6.88%, 05/15/2028(b) | 500,000 | 444,845 | ||||
Tyson Foods, Inc., 4.00%, 03/01/2026 | 127,000 | 124,702 | ||||
1,051,338 | ||||||
Paper & Plastic Packaging Products & Materials–0.10% | ||||||
Berry Global, Inc., 1.57%, 01/15/2026 | 80,000 | 72,735 | ||||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 02/01/2026 | 544,000 | 533,920 | ||||
LABL, Inc., | ||||||
6.75%, 07/15/2026(b) | 276,000 | 273,818 | ||||
5.88%, 11/01/2028(b) | 266,000 | 245,884 | ||||
1,126,357 | ||||||
Paper Products–0.13% | ||||||
Domtar Corp., 6.75%, 10/01/2028(b) | 999,000 | 866,338 |
Principal Amount | Value | |||||
Paper Products–(continued) | ||||||
Glatfelter Corp., 4.75%, 11/15/2029(b) | $ | 885,000 | $ 630,872 | |||
1,497,210 | ||||||
Passenger Airlines–0.38% | ||||||
Air Canada (Canada), 3.88%, 08/15/2026(b) | 330,000 | 305,890 | ||||
American Airlines Pass-Through Trust, Series 16-1, Class A, 4.10%, 01/15/2028 | 234,807 | 212,377 | ||||
American Airlines, Inc., 11.75%, 07/15/2025(b) | 802,000 | 883,206 | ||||
American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.50%, 04/20/2026(b) | 939,000 | 923,172 | ||||
Delta Air Lines, Inc., | ||||||
2.90%, 10/28/2024 | 247,000 | 238,527 | ||||
7.38%, 01/15/2026 | 226,000 | 238,466 | ||||
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd., 5.75%, 01/20/2026(b) | 838,000 | 781,492 | ||||
Southwest Airlines Co., 3.45%, 11/16/2027 | 125,000 | 117,486 | ||||
United Airlines, Inc., 4.38%, 04/15/2026(b) | 799,000 | 764,023 | ||||
4,464,639 | ||||||
Personal Care Products–0.03% | ||||||
Herbalife Nutrition Ltd./HLF Financing, Inc., 7.88%, 09/01/2025(b) | 381,000 | 365,188 | ||||
Pharmaceuticals–0.38% | ||||||
1375209 BC Ltd. (Canada), 9.00%, 01/30/2028(b) | 669,000 | 663,056 | ||||
AdaptHealth LLC, 5.13%, 03/01/2030(b) | 1,043,000 | 864,021 | ||||
Bausch Health Cos., Inc., | ||||||
5.50%, 11/01/2025(b) | 550,000 | 480,134 | ||||
4.88%, 06/01/2028(b) | 805,000 | 531,107 | ||||
Bristol-Myers Squibb Co., 0.75%, 11/13/2025 | 275,000 | 252,753 | ||||
HLF Financing S.a.r.l. LLC/Herbalife International, Inc., 4.88%, 06/01/2029(b) | 565,000 | 433,078 | ||||
Merck & Co., Inc., 2.75%, 02/10/2025 | 183,000 | 178,093 | ||||
Perrigo Finance Unlimited Co., 3.90%, 12/15/2024 | 705,000 | 682,767 | ||||
Royalty Pharma PLC, 1.20%, 09/02/2025 | 200,000 | 182,436 | ||||
Utah Acquisition Sub, Inc., 3.95%, 06/15/2026 | 134,000 | 128,267 | ||||
Viatris, Inc., 2.30%, 06/22/2027 | 85,000 | 74,994 | ||||
4,470,706 | ||||||
Precious Metals & Minerals–0.02% | ||||||
Corp. Nacional del Cobre de Chile (Chile), | ||||||
5.63%, 10/18/2043(b) | 95,000 | 94,908 | ||||
4.88%, 11/04/2044(b) | 105,000 | 96,290 | ||||
191,198 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Publishing–0.13% | ||||||
Gannett Holdings LLC, 6.00%, 11/01/2026(b) | $ | 1,806,000 | $ 1,529,176 | |||
Rail Transportation–0.11% | ||||||
Empresa de Transporte de Pasajeros Metro S.A. (Chile), 4.70%, 05/07/2050(b) | 1,550,000 | 1,349,910 | ||||
Real Estate Development–0.04% | ||||||
Forestar Group, Inc., 3.85%, 05/15/2026(b) | 558,000 | 516,686 | ||||
Real Estate Services–0.06% | ||||||
Realogy Group LLC/Realogy Co-Issuer Corp., | ||||||
5.75%, 01/15/2029(b) | 431,000 | 320,492 | ||||
5.25%, 04/15/2030(b) | 571,000 | 407,613 | ||||
728,105 | ||||||
Regional Banks–0.03% | ||||||
Santander Holdings USA, Inc., 4.40%, 07/13/2027 | 75,000 | 71,555 | ||||
Truist Financial Corp., 4.00%, 05/01/2025 | 275,000 | 266,743 | ||||
338,298 | ||||||
Reinsurance–0.14% | ||||||
Enstar Finance LLC, | ||||||
5.75%, 09/01/2040(f) | 410,000 | 344,238 | ||||
5.50%, 01/15/2042(f) | 638,000 | 460,175 | ||||
Global Atlantic Fin Co., 4.70%, 10/15/2051(b)(f) | 992,000 | 794,015 | ||||
1,598,428 | ||||||
Renewable Electricity–0.05% | ||||||
Sunnova Energy Corp., 5.88%, 09/01/2026(b)(c) | 700,000 | 635,341 | ||||
Retail REITs–0.17% | ||||||
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LLC, | ||||||
5.75%, 05/15/2026(Acquired 04/19/2022; Cost | 1,000,000 | 909,238 | ||||
4.50%, 04/01/2027(b) | 517,000 | 428,190 | ||||
Necessity Retail REIT, Inc. (The)/American Finance Operating Partner L.P., 4.50%, 09/30/2028(b) | 594,000 | 441,101 | ||||
Realty Income Corp., 4.88%, 06/01/2026 | 80,000 | 80,089 | ||||
Simon Property Group L.P., 3.30%, 01/15/2026 | 64,000 | 61,591 | ||||
Spirit Realty L.P., 4.45%, 09/15/2026 | 75,000 | 72,767 | ||||
1,992,976 | ||||||
Security & Alarm Services–0.09% | ||||||
CoreCivic, Inc., | ||||||
8.25%, 04/15/2026(c) | 651,000 | 658,389 | ||||
4.75%, 10/15/2027 | 467,000 | 405,251 | ||||
1,063,640 |
Principal Amount | Value | |||||
Semiconductor Materials & Equipment–0.02% | ||||||
NXP B.V./NXP Funding LLC/NXP USA, Inc. (China), 2.70%, 05/01/2025 | $ | 200,000 | $ 190,404 | |||
Semiconductors–0.04% | ||||||
ams-OSRAM AG (Austria), 7.00%, 07/31/2025(b) | 394,000 | 368,441 | ||||
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.88%, 01/15/2027 | 77,000 | 74,850 | ||||
Micron Technology, Inc., 4.19%, 02/15/2027 | 75,000 | 72,374 | ||||
515,665 | ||||||
Sovereign Debt–11.65% | ||||||
Abu Dhabi Government International Bond (United Arab Emirates), | ||||||
1.88%, 09/15/2031(b) | 780,000 | 668,857 | ||||
2.70%, 09/02/2070(b) | 3,400,000 | 2,131,807 | ||||
Angolan Government International Bond (Angola), 9.13%, 11/26/2049(b) | 1,140,000 | 853,806 | ||||
Argentine Republic Government International Bond (Argentina), 0.50%, 07/09/2030(j) | 3,000,000 | 734,150 | ||||
Bahrain Government International Bond (Bahrain), 7.00%, 01/26/2026(b) | 2,000,000 | 2,059,358 | ||||
Brazilian Government International Bond (Brazil), | ||||||
4.25%, 01/07/2025 | 1,600,000 | 1,584,696 | ||||
4.63%, 01/13/2028 | 3,160,000 | 3,102,688 | ||||
4.50%, 05/30/2029 | 760,000 | 722,973 | ||||
3.88%, 06/12/2030 | 1,540,000 | 1,379,944 | ||||
CBB International Sukuk Programme Co. WLL (Bahrain), 4.50%, 03/30/2027(b) | 2,000,000 | 1,951,434 | ||||
Chile Government International Bond (Chile), | ||||||
3.24%, 02/06/2028 | 1,241,000 | 1,191,078 | ||||
2.45%, 01/31/2031 | 1,414,000 | 1,245,159 | ||||
2.55%, 01/27/2032 | 770,000 | 670,402 | ||||
3.50%, 01/31/2034 | 1,140,000 | 1,033,858 | ||||
Colombia Government International Bond (Colombia), | ||||||
3.88%, 04/25/2027 | 2,250,000 | 2,034,110 | ||||
7.38%, 09/18/2037 | 3,800,000 | 3,547,134 | ||||
6.13%, 01/18/2041 | 1,950,000 | 1,550,294 | ||||
Dominican Republic International Bond (Dominican Republic), | ||||||
5.50%, 01/27/2025(b) | 300,000 | 297,613 | ||||
5.95%, 01/25/2027(b) | 2,070,000 | 2,060,246 | ||||
6.00%, 07/19/2028(b) | 600,000 | 594,483 | ||||
4.50%, 01/30/2030(b) | 1,140,000 | 1,011,944 | ||||
6.85%, 01/27/2045(b)(c) | 802,000 | 724,488 | ||||
Ecuador Government International Bond (Ecuador), 5.50%, 07/31/2030(b)(j) | 3,135,000 | 1,669,564 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Sovereign Debt–(continued) | ||||||
Egypt Government International Bond (Egypt), | ||||||
5.80%, 09/30/2027(b) | $ | 770,000 | $ 474,505 | |||
7.60%, 03/01/2029(b) | 200,000 | 123,091 | ||||
8.50%, 01/31/2047(b) | 2,896,000 | 1,536,589 | ||||
7.90%, 02/21/2048(b) | 1,200,000 | 609,414 | ||||
8.70%, 03/01/2049(b) | 2,110,000 | 1,129,251 | ||||
Ghana Government International Bond (Ghana), | ||||||
7.63%, 05/16/2029(b) | 818,000 | 305,935 | ||||
8.95%, 03/26/2051(b) | 738,000 | 261,879 | ||||
Hungary Government International Bond (Hungary), | ||||||
5.25%, 06/16/2029(b) | 3,080,000 | 3,057,344 | ||||
2.13%, 09/22/2031(b) | 2,400,000 | 1,878,734 | ||||
7.63%, 03/29/2041 | 1,460,000 | 1,665,413 | ||||
6.75%, 09/25/2052(b) | 380,000 | 395,770 | ||||
Indonesia Government International Bond (Indonesia), 4.85%, 01/11/2033 | 780,000 | 795,234 | ||||
Ivory Coast Government International Bond (Ivory Coast), 6.38%, 03/03/2028(b) | 650,000 | 623,724 | ||||
Jamaica Government International Bond (Jamaica), 6.75%, 04/28/2028 | 1,600,000 | 1,684,800 | ||||
Jordan Government International Bond (Jordan), 6.13%, 01/29/2026(b) | 1,000,000 | 984,130 | ||||
Kazakhstan Government International Bond (Kazakhstan), | ||||||
3.88%, 10/14/2024(b) | 1,650,000 | 1,655,734 | ||||
5.13%, 07/21/2025(b) | 2,000,000 | 2,067,500 | ||||
4.88%, 10/14/2044(b) | 1,000,000 | 919,880 | ||||
KSA Sukuk Ltd. (Saudi Arabia), 4.30%, 01/19/2029(b) | 2,000,000 | 2,016,450 | ||||
Kuwait International Government Bond (Kuwait), 3.50%, 03/20/2027(b) | 800,000 | 788,339 | ||||
Malaysia Sukuk Global Bhd. (Malaysia), 3.18%, 04/27/2026(b) | 250,000 | 243,299 | ||||
Mexico Government International Bond (Mexico), | ||||||
4.13%, 01/21/2026(c) | 2,310,000 | 2,287,292 | ||||
4.50%, 04/22/2029 | 2,310,000 | 2,283,983 | ||||
5.75%, 10/12/2110 | 1,920,000 | 1,716,333 | ||||
Nigeria Government International Bond (Nigeria), | ||||||
8.38%, 03/24/2029(b) | 780,000 | 636,285 | ||||
8.75%, 01/21/2031(b) | 2,550,000 | 2,031,661 | ||||
7.70%, 02/23/2038(b) | 1,560,000 | 1,037,774 | ||||
Oman Government International Bond (Oman), | ||||||
4.88%, 02/01/2025(b) | 770,000 | 764,011 | ||||
4.75%, 06/15/2026(b) | 3,310,000 | 3,255,468 | ||||
5.63%, 01/17/2028(b) | 1,000,000 | 1,010,630 | ||||
6.25%, 01/25/2031(b) | 1,000,000 | 1,037,460 | ||||
Pakistan Government International Bond (Pakistan), 8.25%, 04/15/2024(b) | 966,000 | 490,796 |
Principal Amount | Value | |||||
Sovereign Debt–(continued) | ||||||
Panama Government International Bond (Panama), | ||||||
7.13%, 01/29/2026 | $ | 1,110,000 | $ 1,179,568 | |||
3.88%, 03/17/2028 | 1,000,000 | 966,401 | ||||
3.16%, 01/23/2030(c) | 780,000 | 691,193 | ||||
2.25%, 09/29/2032 | 780,000 | 604,895 | ||||
6.40%, 02/14/2035(c) | 1,160,000 | 1,230,547 | ||||
6.70%, 01/26/2036 | 1,350,000 | 1,455,170 | ||||
4.50%, 04/01/2056 | 2,700,000 | 2,054,892 | ||||
4.50%, 01/19/2063 | 1,520,000 | 1,124,678 | ||||
Paraguay Government International Bond (Paraguay), 5.00%, 04/15/2026(b) | 1,000,000 | 995,919 | ||||
Perusahaan Penerbit SBSN Indonesia III (Indonesia), 4.15%, 03/29/2027(b) | 1,176,000 | 1,173,060 | ||||
Peruvian Government International Bond (Peru), | ||||||
2.39%, 01/23/2026 | 770,000 | 728,032 | ||||
4.13%, 08/25/2027 | 1,226,000 | 1,206,975 | ||||
2.84%, 06/20/2030 | 500,000 | 444,540 | ||||
3.60%, 01/15/2072 | 650,000 | 449,155 | ||||
Philippine Government International Bond (Philippines), | ||||||
4.20%, 01/21/2024 | 100,000 | 99,574 | ||||
10.63%, 03/16/2025 | 2,144,000 | 2,389,692 | ||||
3.00%, 02/01/2028 | 1,000,000 | 946,633 | ||||
6.38%, 01/15/2032 | 2,000,000 | 2,251,476 | ||||
Qatar Government International Bond (Qatar), | ||||||
4.50%, 04/23/2028(b) | 1,310,000 | 1,343,156 | ||||
4.00%, 03/14/2029(b) | 3,860,000 | 3,873,129 | ||||
6.40%, 01/20/2040(b) | 780,000 | 928,141 | ||||
Republic of Kenya Government International Bond (Kenya), 6.88%, 06/24/2024(b) | 2,200,000 | 1,915,870 | ||||
Republic of Poland Government International Bond (Poland), | ||||||
3.25%, 04/06/2026 | 2,310,000 | 2,256,588 | ||||
5.75%, 11/16/2032 | 1,540,000 | 1,671,919 | ||||
Republic of South Africa Government International Bond (South Africa), | ||||||
5.88%, 09/16/2025 | 1,100,000 | 1,099,725 | ||||
4.85%, 09/30/2029 | 1,000,000 | 899,840 | ||||
5.65%, 09/27/2047 | 780,000 | 565,608 | ||||
5.75%, 09/30/2049 | 3,833,000 | 2,760,097 | ||||
7.30%, 04/20/2052 | 400,000 | 342,265 | ||||
Romanian Government International Bond (Romania), | ||||||
4.38%, 08/22/2023(b) | 33,000 | 32,920 | ||||
3.00%, 02/27/2027(b) | 780,000 | 713,571 | ||||
3.63%, 03/27/2032(b) | 800,000 | 685,906 | ||||
7.13%, 01/17/2033(b) | 380,000 | 407,275 | ||||
6.00%, 05/25/2034(b) | 1,540,000 | 1,532,854 | ||||
6.13%, 01/22/2044(b) | 800,000 | 772,212 | ||||
5.13%, 06/15/2048(b) | 2,344,000 | 1,979,672 | ||||
4.00%, 02/14/2051(b) | 1,750,000 | 1,218,569 | ||||
7.63%, 01/17/2053(b) | 760,000 | 821,009 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Sovereign Debt–(continued) | ||||||
Saudi Government International Bond (Saudi Arabia), | ||||||
4.00%, 04/17/2025(b) | $ | 770,000 | $ 765,119 | |||
3.25%, 10/26/2026(b) | 500,000 | 486,478 | ||||
4.38%, 04/16/2029(b) | 1,798,000 | 1,813,812 | ||||
5.50%, 10/25/2032(b) | 390,000 | 422,584 | ||||
4.63%, 10/04/2047(b) | 780,000 | 710,432 | ||||
4.50%, 04/22/2060(b) | 1,140,000 | 1,013,940 | ||||
Sharjah Sukuk Program Ltd. (United Arab Emirates), | ||||||
3.85%, 04/03/2026(b) | 600,000 | 579,240 | ||||
4.23%, 03/14/2028(b) | 1,019,000 | 978,034 | ||||
Turkey Government International Bond (Turkey), | ||||||
7.63%, 04/26/2029 | 2,430,000 | 2,312,779 | ||||
11.88%, 01/15/2030 | 1,920,000 | 2,255,443 | ||||
6.88%, 03/17/2036 | 1,218,000 | 1,043,418 | ||||
7.25%, 03/05/2038 | 1,170,000 | 1,047,901 | ||||
6.00%, 01/14/2041 | 1,560,000 | 1,177,413 | ||||
UAE International Government Bond (United Arab Emirates), | ||||||
4.05%, 07/07/2032(b) | 780,000 | 784,203 | ||||
4.95%, 07/07/2052(b) | 780,000 | 788,582 | ||||
Ukraine Government International Bond (Ukraine), | ||||||
7.75%, 09/01/2025(b)(g) | 650,000 | 125,727 | ||||
7.75%, 09/01/2026(b)(g) | 650,000 | 116,879 | ||||
7.75%, 09/01/2028(b)(g) | 4,450,000 | 786,729 | ||||
7.75%, 09/01/2029(b)(g) | 1,090,000 | 194,241 | ||||
9.75%, 11/01/2030(b)(g) | 900,000 | 163,249 | ||||
Uruguay Government International Bond (Uruguay), 4.50%, 08/14/2024 | 943,948 | 948,262 | ||||
136,915,985 | ||||||
Specialized Finance–0.01% | ||||||
Blackstone Private Credit Fund, 3.25%, 03/15/2027 | 75,000 | 64,716 | ||||
Specialty Chemicals–0.17% | ||||||
Avient Corp., 5.75%, 05/15/2025(b) | 377,000 | 377,141 | ||||
PPG Industries, Inc., 1.20%, 03/15/2026 | 67,000 | 60,828 | ||||
Rayonier A.M. Products, Inc., 7.63%, 01/15/2026(b) | 871,000 | 776,187 | ||||
SCIL IV LLC/SCIL USA Holdings LLC, 5.38%, 11/01/2026(b)(c) | 832,000 | 766,736 | ||||
1,980,892 | ||||||
Steel–0.02% | ||||||
ArcelorMittal S.A. (Luxembourg), 4.55%, 03/11/2026 | 134,000 | 131,719 | ||||
Nucor Corp., 3.95%, 05/01/2028 | 100,000 | 97,511 | ||||
229,230 | ||||||
Systems Software–0.12% | ||||||
Gen Digital, Inc., 5.00%, 04/15/2025(b) | 400,000 | 396,060 | ||||
McAfee Corp., 7.38%, 02/15/2030(b) | 740,000 | 614,988 |
Principal Amount | Value | |||||
Systems Software–(continued) |
| |||||
Veritas US, Inc./Veritas Bermuda Ltd., 7.50%, 09/01/2025(b) | $ | 502,000 | $ 381,419 | |||
1,392,467 | ||||||
Technology Distributors–0.03% | ||||||
Avnet, Inc., 4.63%, 04/15/2026 | 75,000 | 73,905 | ||||
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 5.75%, 06/01/2025(b) | 260,000 | 261,746 | ||||
335,651 | ||||||
Technology Hardware, Storage & Peripherals–0.29% | ||||||
Apple, Inc., | ||||||
3.25%, 02/23/2026 | 150,000 | 146,884 | ||||
3.20%, 05/11/2027 | 135,000 | 131,801 | ||||
HP, Inc., 1.45%, 06/17/2026 | 150,000 | 135,655 | ||||
Seagate HDD Cayman, | ||||||
4.75%, 01/01/2025 | 249,000 | 242,425 | ||||
4.13%, 01/15/2031 | 248,000 | 206,082 | ||||
9.63%, 12/01/2032(b)(c) | 834,760 | 916,291 | ||||
Xerox Corp., 6.75%, 12/15/2039 | 513,000 | 390,924 | ||||
Xerox Holdings Corp., | ||||||
5.00%, 08/15/2025(b)(c) | 476,000 | 454,127 | ||||
5.50%, 08/15/2028(b)(c) | 930,000 | 802,766 | ||||
3,426,955 | ||||||
Telecom Tower REITs–0.03% | ||||||
American Tower Corp., | ||||||
1.30%, 09/15/2025 | 134,000 | 123,230 | ||||
3.65%, 03/15/2027 | 105,000 | 100,533 | ||||
3.55%, 07/15/2027 | 105,000 | 99,702 | ||||
323,465 | ||||||
Tires & Rubber–0.08% | ||||||
FXI Holdings, Inc., 12.25%, 11/15/2026(b) | 512,000 | 458,136 | ||||
Goodyear Tire & Rubber Co. (The), | ||||||
9.50%, 05/31/2025 | 100,000 | 102,523 | ||||
5.00%, 07/15/2029(c) | 462,000 | 408,927 | ||||
969,586 | ||||||
Tobacco–0.05% | ||||||
Altria Group, Inc., 4.40%, 02/14/2026 | 134,000 | 133,111 | ||||
B.A.T Capital Corp. (United Kingdom), 3.22%, 09/06/2026 | 134,000 | 127,182 | ||||
Vector Group Ltd., 5.75%, 02/01/2029(b) | 317,000 | 283,883 | ||||
544,176 | ||||||
Trading Companies & Distributors–0.08% | ||||||
Fortress Transportation and Infrastructure Investors LLC, | ||||||
6.50%, 10/01/2025(b) | 540,000 | 533,983 | ||||
5.50%, 05/01/2028(b) | 381,000 | 349,676 | ||||
883,659 | ||||||
Transaction & Payment Processing Services–0.04% | ||||||
Block, Inc., 2.75%, 06/01/2026 | 276,000 | 250,094 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
Transaction & Payment Processing Services–(continued) | ||||||
Global Payments, Inc., 2.15%, 01/15/2027 | $ | 110,000 | $ 98,757 | |||
Western Union Co. (The), 1.35%, 03/15/2026 | 75,000 | 67,585 | ||||
416,436 | ||||||
Wireless Telecommunication Services–0.12% | ||||||
Sprint LLC, | ||||||
7.63%, 02/15/2025 | 453,000 | 467,219 | ||||
7.63%, 01/03/2026 | 940,000 | 996,224 | ||||
1,463,443 | ||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $404,950,778) |
| 367,684,273 | ||||
Equity Linked Notes–26.27% | ||||||
Diversified Banks–23.66% | ||||||
Bank of Montreal (Financial Select Sector SPDR® Fund) (Canada), | ||||||
17.81%, 05/11/2023(b) | 11,506,000 | 11,841,338 | ||||
15.77%, 05/17/2023(b) | 11,359,000 | 11,557,723 | ||||
Bank of Montreal (Materials Select Sector SPDR® Fund) (Canada), 12.47%, 06/05/2023(b) | 6,881,000 | 6,833,436 | ||||
Bank of Montreal (MSCI EAFE Index) (Canada), 15.08%, 05/24/2023(b) | 10,783,000 | 10,812,163 | ||||
Bank of Montreal (Utilities Select Sector SPDR® Fund) (Canada), 14.40%, 05/02/2023 | 7,289,000 | 7,621,231 | ||||
BNP Paribas (Consumer Discretionary Select Sector SPDR® Fund) (France), | ||||||
17.33%, 05/16/2023(b) | 9,096,000 | 9,199,263 | ||||
14.10%, 05/30/2023(b) | 8,868,000 | 8,835,732 | ||||
BNP Paribas (Technology Select Sector SPDR® Fund) (France), | ||||||
16.20%, 05/03/2023(b) | 14,877,000 | 15,386,021 | ||||
15.63%, 05/15/2023(b) | 13,774,000 | 13,899,362 | ||||
Canadian Imperial Bank of Commerce (Communication Services Select Sector SPDR® Fund) (Canada), 14.65%, 05/09/2023(b) | 10,579,000 | 10,981,579 | ||||
Citigroup Global Markets Holdings, Inc. (Technology Select Sector SPDR® Fund), 17.58%, 06/07/2023(b) | 13,864,000 | 13,864,000 | ||||
Citigroup, Inc. (Consumer Discretionary Select Sector SPDR® Fund), 16.20%, 05/08/2023(b) | 9,377,000 | 9,563,476 | ||||
Citigroup, Inc. (Health Care Select Sector SPDR® Fund), 14.03%, 05/12/2023(b) | 12,404,000 | 12,422,376 | ||||
Citigroup, Inc. (Materials Select Sector SPDR® Fund), 15.98%, 05/02/2023(b) | 7,744,000 | 7,973,051 | ||||
HSBC Bank PLC (Utilities Select Sector SPDR® Fund) (United Kingdom), 14.68%, 06/05/2023(b) | 7,467,000 | 7,422,404 | ||||
HSBC Holdings PLC (Industrial Select Sector SPDR® Fund) (United Kingdom), 16.49%, 06/02/2023(b) | 11,474,000 | 11,603,003 |
Principal Amount | Value | |||||
Diversified Banks–(continued) | ||||||
HSBC Holdings PLC (Technology Select Sector SPDR® Fund) (United Kingdom), 13.61%, 05/26/2023(b) | $ | 13,652,000 | $ 13,803,388 | |||
J.P. Morgan Structured Products B.V. (Industrial Select Sector SPDR® Fund), 13.32%, 05/01/2023 | 11,377,000 | 11,433,902 | ||||
JPMorgan Chase & Co. (Financial Select Sector SPDR® Fund), 15.23%, 05/31/2023(b) | 11,249,000 | 11,116,215 | ||||
JPMorgan Chase & Co. (Health Care Select Sector SPDR® Fund), 10.66%, 06/01/2023(b) | 12,100,000 | 12,067,846 | ||||
JPMorgan Chase & Co. (Industrial Select Sector SPDR® Fund), 13.99%, 05/25/2023(b) | 11,330,000 | 11,150,025 | ||||
Royal Bank of Canada (Technology Select Sector SPDR® Fund) (Canada), 13.15%, 05/23/2023(b) | 13,494,000 | 13,590,003 | ||||
Societe Generale S.A. (Consumer Staples Select Sector SPDR® Fund) (France), 8.10%, 05/22/2023(b) | 9,959,000 | 10,058,186 | ||||
Societe Generale S.A. (Energy Select Sector SPDR® Fund (France), 18.90%, 05/10/2023(b) | 12,711,000 | 13,002,044 | ||||
Societe Generale S.A. (Health Care Select Sector SPDR® Fund) (France), 11.81%, 05/18/2023(b) | 12,072,000 | 12,026,684 | ||||
278,064,451 | ||||||
Investment Banking & Brokerage–2.61% | ||||||
Goldman Sachs Group, Inc. (The) (Consumer Staples Select Sector SPDR® Fund), 11.68%, 05/05/2023(b) | 9,039,000 | 9,267,902 | ||||
Goldman Sachs Group, Inc. (The) (Technology Select Sector SPDR® Fund), 15.21%, 05/19/2023(b) | 13,835,000 | 13,915,409 | ||||
Goldman Sachs International (iShares U.S. Real Estate ETF), 14.53%, 05/10/2023(b) | 7,480,000 | 7,527,995 | ||||
30,711,306 | ||||||
Total Equity Linked Notes (Cost $305,640,000) |
| 308,775,757 | ||||
U.S. Treasury Securities–21.49% |
| |||||
U.S. Treasury Bills–0.11% |
| |||||
3.95% - 4.77%, 05/11/2023(k)(l) | 1,330,000 | 1,328,347 | ||||
U.S. Treasury Bonds–18.36% | ||||||
1.88%, 11/15/2051 | 316,500,000 | 215,763,984 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||
U.S. Treasury Notes–3.02% | ||||||
0.13%, 12/15/2023 | $ | 1,500,000 | $ 1,456,685 | |||
0.75%, 12/31/2023 | 6,000,000 | 5,836,361 | ||||
1.13%, 01/15/2025 | 15,150,000 | 14,381,848 | ||||
0.38%, 12/31/2025 | 6,000,000 | 5,492,109 | ||||
1.25%, 12/31/2026 | 8,100,000 | 7,443,299 | ||||
2.63%, 05/31/2027 | 900,000 | 867,129 | ||||
35,477,431 | ||||||
Total U.S. Treasury Securities |
| 252,569,762 | ||||
Shares | ||||||
Preferred Stocks–6.65% | ||||||
Alternative Carriers–0.06% | ||||||
Qwest Corp., 6.50%, Pfd. | 29,686 | 395,417 | ||||
Qwest Corp., 6.75%, Pfd. | 20,044 | 278,211 | ||||
673,628 | ||||||
Apparel, Accessories & Luxury Goods–0.01% | ||||||
Fossil Group, Inc., 7.00%, Pfd. | 4,555 | 87,274 | ||||
Asset Management & Custody Banks–0.17% | ||||||
Affiliated Managers Group, Inc., 5.88%, Pfd. | 9,207 | 233,305 | ||||
Affiliated Managers Group, Inc., 4.75%, Pfd. | 8,884 | 177,147 | ||||
Affiliated Managers Group, Inc., 4.20%, Pfd. | 5,339 | 93,753 | ||||
Apollo Asset Management, Inc., 6.38%, Series A, Pfd. | 8,156 | 201,535 | ||||
Apollo Asset Management, Inc., 6.38%, Series B, Pfd. | 8,897 | 225,272 | ||||
Northern Trust Corp., 4.70%, Series E, Pfd. | 12,148 | 273,330 | ||||
Oaktree Capital Group LLC, 6.63%, Series A, Pfd. | 5,610 | 125,888 | ||||
Oaktree Capital Group LLC, 6.55%, Series B, Pfd. | 7,808 | 174,665 | ||||
Prospect Capital Corp., 5.35%, Series A, Pfd. | 4,555 | 72,607 | ||||
State Street Corp., 5.35%, | 15,185 | 386,003 | ||||
1,963,505 | ||||||
Automobile Manufacturers–0.14% | ||||||
Ford Motor Co., 6.20%, Pfd. | 22,778 | 571,728 | ||||
Ford Motor Co., 6.00%, Pfd. | 24,296 | 591,364 | ||||
Ford Motor Co., 6.50%, Pfd. | 18,221 | 438,944 | ||||
1,602,036 | ||||||
Broadline Retail–0.03% | ||||||
Dillard’s Capital Trust I, 7.50%, Pfd. | 6,074 | 156,102 | ||||
QVC, Inc., 6.38%, Pfd. | 6,833 | 61,497 | ||||
QVC, Inc., 6.25%, Pfd. | 15,192 | 135,057 | ||||
352,656 | ||||||
Commercial & Residential Mortgage Finance–0.02% | ||||||
Merchants Bancorp, 6.00%, Series B, Pfd.(f) | 4,184 | 86,316 | ||||
Merchants Bancorp, 6.00%, Series C, Pfd. | 6,372 | 121,896 | ||||
Merchants Bancorp, 8.25%, | 3,694 | 93,458 | ||||
301,670 |
Shares | Value | |||||
Consumer Finance–0.25% | ||||||
Capital One Financial Corp., 5.00%, Series I, Pfd.(c) | 44,392 | $ 910,924 | ||||
Capital One Financial Corp., 4.80%, Series J, Pfd. | 36,993 | 719,884 | ||||
Capital One Financial Corp., 4.63%, Series K, Pfd. | 5,390 | 100,362 | ||||
Capital One Financial Corp., 4.38%, Series L, Pfd. | 21,592 | 378,076 | ||||
Capital One Financial Corp., 4.25%, Series N, Pfd. | 12,577 | 219,846 | ||||
Navient Corp., 6.00%, Pfd. | 9,111 | 174,566 | ||||
Synchrony Financial, 5.63%, | 22,777 | 386,070 | ||||
2,889,728 | ||||||
Data Center REITs–0.04% | ||||||
Digital Realty Trust, Inc., 5.25%, Series J, Pfd. | 6,192 | 139,568 | ||||
Digital Realty Trust, Inc., 5.85%, Series K, Pfd. | 6,299 | 157,286 | ||||
Digital Realty Trust, Inc., 5.20%, Series L, Pfd. | 10,445 | 232,714 | ||||
529,568 | ||||||
Diversified Banks–1.60% | ||||||
Bank of America Corp., 6.00%, Series GG, Pfd. | 40,999 | 1,020,875 | ||||
Bank of America Corp., 5.88%, Series HH, Pfd. | 25,814 | 642,252 | ||||
Bank of America Corp., 6.45%, Series K, Pfd.(f) | 31,888 | 810,274 | ||||
Bank of America Corp., 5.38%, Series KK, Pfd. | 42,320 | 1,002,138 | ||||
Bank of America Corp., 5.00%, Series LL, Pfd. | 39,632 | 882,605 | ||||
Bank of America Corp., 4.38%, Series NN, Pfd. | 33,240 | 646,518 | ||||
Bank of America Corp., 4.13%, Series PP, Pfd. | 27,667 | 507,136 | ||||
Bank of America Corp., 4.25%, Series QQ, Pfd. | 39,389 | 744,058 | ||||
Bank of America Corp., 4.75%, Series SS, Pfd. | 20,851 | 435,786 | ||||
Fifth Third Bancorp, 6.00%, | 6,459 | 155,016 | ||||
Fifth Third Bancorp, 4.95%, | 7,178 | 163,658 | ||||
JPMorgan Chase & Co., 5.75%, Series DD, Pfd. | 51,514 | 1,298,668 | ||||
JPMorgan Chase & Co., 6.00%, Series EE, Pfd. | 56,184 | 1,437,187 | ||||
JPMorgan Chase & Co., 4.75%, Series GG, Pfd. | 27,333 | 612,806 | ||||
JPMorgan Chase & Co., 4.55%, Series JJ, Pfd. | 45,554 | 970,300 | ||||
JPMorgan Chase & Co., 4.63%, Series LL, Pfd. | 56,184 | 1,205,709 | ||||
JPMorgan Chase & Co., 4.20%, Series MM, Pfd. | 60,739 | 1,226,321 | ||||
U.S. Bancorp, 5.50%, Series K, Pfd. | 17,463 | 416,143 | ||||
U.S. Bancorp, 3.75%, Series L, Pfd. | 15,183 | 259,174 | ||||
U.S. Bancorp, 4.00%, Series M, Pfd.(c) | 22,777 | 412,036 | ||||
U.S. Bancorp, 4.50%, Series O, Pfd. | 13,667 | 279,900 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco Multi-Asset Income Fund |
Shares | Value | |||||
Diversified Banks–(continued) | ||||||
Wells Fargo & Co., 5.63%, | 20,955 | $ 495,586 | ||||
Wells Fargo & Co., 4.75%, | 61,119 | 1,229,714 | ||||
Wells Fargo & Co., 4.70%, | 35,532 | 702,112 | ||||
Wells Fargo & Co., 4.38%, | 31,888 | 581,956 | ||||
Wells Fargo & Co., 4.25%, | 37,962 | 678,001 | ||||
18,815,929 | ||||||
Diversified Chemicals–0.01% | ||||||
EIDP, Inc., 4.50%, Series B, Pfd. | 1,270 | 118,072 | ||||
Diversified Financial Services–0.19% | ||||||
Brookfield BRP Holdings Canada, Inc., 4.63%, Pfd. | 10,289 | 165,858 | ||||
Brookfield BRP Holdings Canada, Inc., 4.88%, Pfd. | 7,628 | 123,497 | ||||
Carlyle Finance LLC, 4.63%, Pfd. | 15,185 | 286,693 | ||||
Equitable Holdings, Inc., 5.25%, Series A, Pfd. | 24,210 | 519,789 | ||||
Equitable Holdings, Inc., 4.30%, Series C, Pfd. | 9,212 | 162,500 | ||||
Jackson Financial, Inc., 8.00%, Pfd.(f) | 16,703 | 416,406 | ||||
KKR Group Finance Co. IX LLC, 4.63%, Pfd. | 15,185 | 289,578 | ||||
Voya Financial, Inc., 5.35%, Series B, Pfd.(f) | 9,111 | 222,308 | ||||
2,186,629 | ||||||
Diversified REITs–0.02% | ||||||
Global Net Lease, Inc., 7.25%, Series A, Pfd. | 5,239 | 116,044 | ||||
Global Net Lease, Inc., 6.88%, Series B, Pfd. | 3,488 | 76,736 | ||||
192,780 | ||||||
Electric Utilities–0.47% | ||||||
BIP Bermuda Holdings I Ltd., 5.13%, Pfd. | 8,459 | 145,495 | ||||
Brookfield Infrastructure Finance ULC, 5.00%, Pfd. | 7,269 | 125,463 | ||||
Duke Energy Corp., 5.63%, Pfd. | 15,185 | 380,384 | ||||
Duke Energy Corp., 5.75%, Series A, Pfd. | 30,369 | 782,002 | ||||
Entergy Arkansas LLC, 4.88%, Pfd. | 12,343 | 288,332 | ||||
Entergy Louisiana LLC, 4.88%, Pfd. | 7,252 | 172,308 | ||||
Entergy Mississippi LLC, 4.90%, Pfd. | 8,463 | 201,419 | ||||
Entergy New Orleans LLC, 5.50%, Pfd. | 3,817 | 94,318 | ||||
Georgia Power Co., 5.00%, Series 2017-A, Pfd. | 8,199 | 204,975 | ||||
National Rural Utilities Cooperative Finance Corp., 5.50%, Pfd. | 7,592 | 189,952 | ||||
NextEra Energy Capital Holdings, Inc., 5.65%, Series N, Pfd. | 20,879 | 536,173 | ||||
Pacific Gas and Electric Co., 6.00%, Series A, Pfd. | 3,198 | 73,170 | ||||
SCE Trust II, 5.10%, Pfd. | 6,681 | 138,230 | ||||
SCE Trust IV, 5.38%, Series J, Pfd.(f) | 9,870 | 200,855 | ||||
SCE Trust V, 5.45%, Series K, Pfd.(f) | 9,111 | 202,993 | ||||
SCE Trust VI, 5.00%, Pfd. | 14,426 | 285,491 |
Shares | Value | |||||
Electric Utilities–(continued) | ||||||
Southern Co. (The), 5.25%, Pfd. | 13,666 | $ 341,103 | ||||
Southern Co. (The), 4.95%, | 30,370 | 701,243 | ||||
Southern Co. (The), 4.20%, | 22,778 | 461,710 | ||||
5,525,616 | ||||||
Gas Utilities–0.02% | ||||||
South Jersey Industries, Inc., 5.63%, Pfd. | 4,788 | 69,833 | ||||
Spire, Inc., 5.90%, Series A, Pfd. | 7,592 | 193,672 | ||||
263,505 | ||||||
Integrated Telecommunication Services–0.30% | ||||||
AT&T, Inc., 5.35%, Pfd. | 40,164 | 952,690 | ||||
AT&T, Inc., 5.63%, Pfd.(c) | 25,055 | 627,878 | ||||
AT&T, Inc., 5.00%, Series A, Pfd. | 36,444 | 811,244 | ||||
AT&T, Inc., 4.75%, Series C, Pfd. | 53,147 | 1,109,709 | ||||
3,501,521 | ||||||
Investment Banking & Brokerage–0.50% | ||||||
Brookfield Finance I (UK) PLC, 4.50%, Pfd. | 7,526 | 116,954 | ||||
Brookfield Finance, Inc., 4.63%, Series 50, Pfd. | 13,005 | 211,851 | ||||
Charles Schwab Corp. (The), 5.95%, Series D, Pfd. | 22,777 | 573,297 | ||||
Charles Schwab Corp. (The), 4.45%, Series J, Pfd. | 18,222 | 377,560 | ||||
Goldman Sachs Group, Inc. (The), 6.38%, Series K, Pfd.(f) | 21,259 | 536,365 | ||||
Morgan Stanley, 5.85%, Series K, Pfd.(f) | 30,370 | 759,554 | ||||
Morgan Stanley, 6.38%, Series I, Pfd.(f) | 30,370 | 763,198 | ||||
Morgan Stanley, 4.88%, Series L, Pfd. | 15,185 | 350,014 | ||||
Morgan Stanley, 4.25%, Series O, Pfd. | 39,480 | 770,255 | ||||
Morgan Stanley, 6.50%, Series P, Pfd. | 30,370 | 793,872 | ||||
Stifel Financial Corp., 5.20%, Pfd. | 6,010 | 136,968 | ||||
Stifel Financial Corp., 6.25%, Series B, Pfd. | 4,774 | 117,249 | ||||
Stifel Financial Corp., 6.13%, Series C, Pfd. | 7,351 | 178,703 | ||||
Stifel Financial Corp., 4.50%, Series D, Pfd. | 8,556 | 140,147 | ||||
5,825,987 | ||||||
Leisure Products–0.04% | ||||||
Brunswick Corp., 6.50%, Pfd. | 5,544 | 143,922 | ||||
Brunswick Corp., 6.63%, Pfd. | 3,239 | 85,575 | ||||
Brunswick Corp., 6.38%, Pfd. | 7,617 | 195,909 | ||||
425,406 | ||||||
Life & Health Insurance–0.64% | ||||||
AEGON Funding Co. LLC, 5.10%, Pfd. | 28,092 | 624,485 | ||||
American Equity Investment Life Holding Co., 5.95%, Series A, Pfd.(f) | 12,058 | 278,058 | ||||
American Equity Investment Life Holding Co., 6.63%, Series B, Pfd.(f) | 9,196 | 219,601 | ||||
Athene Holding Ltd., 6.35%, | 26,559 | 576,065 | ||||
Athene Holding Ltd., 5.63%, | 12,051 | 241,864 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 | Invesco Multi-Asset Income Fund |
Shares | Value | |||||
Life & Health Insurance–(continued) | ||||||
Athene Holding Ltd., 6.38%, Series C, Pfd.(f) | 17,796 | $ 401,300 | ||||
Athene Holding Ltd., 4.88%, Series D, Pfd. | 17,054 | 284,972 | ||||
Athene Holding Ltd., 7.75%, Series E, Pfd.(f) | 14,857 | 367,265 | ||||
Brighthouse Financial, Inc., 6.25%, Pfd. | 11,323 | 273,903 | ||||
Brighthouse Financial, Inc., 6.60%, Series A, Pfd. | 12,833 | 307,222 | ||||
Brighthouse Financial, Inc., 6.75%, Series B, Pfd. | 12,153 | 303,825 | ||||
Brighthouse Financial, Inc., 5.38%, Series C, Pfd. | 17,362 | 302,967 | ||||
Brighthouse Financial, Inc., 4.63%, Series D, Pfd. | 11,048 | 169,366 | ||||
CNO Financial Group, Inc., 5.13%, Pfd. | 4,555 | 71,923 | ||||
Globe Life, Inc., 4.25%, Pfd. | 9,870 | 190,688 | ||||
Lincoln National Corp., 9.00%, Series D, Pfd. | 15,185 | 400,429 | ||||
MetLife, Inc., 5.63%, Series E, Pfd. | 24,447 | 611,175 | ||||
MetLife, Inc., 4.75%, Series F, Pfd. | 30,370 | 662,977 | ||||
Prudential Financial, Inc., 5.63%, Pfd. | 17,608 | 435,622 | ||||
Prudential Financial, Inc., 4.13%, Pfd. | 15,703 | 327,643 | ||||
Prudential Financial, Inc., 5.95%, Pfd. | 8,252 | 211,251 | ||||
Unum Group, 6.25%, Pfd. | 9,111 | 226,408 | ||||
7,489,009 | ||||||
Multi-line Insurance–0.07% | ||||||
American International Group, Inc., 5.85%, Series A, Pfd. | 15,185 | 382,510 | ||||
Assurant, Inc., 5.25%, Pfd. | 7,592 | 161,482 | ||||
Hartford Financial Services Group, Inc. (The), 6.00%, Series G, Pfd. | 10,478 | 259,435 | ||||
803,427 | ||||||
Multi-Utilities–0.20% | ||||||
Algonquin Power & Utilities Corp., 6.20%, Series 19-A, Pfd.(f) | 10,629 | 243,191 | ||||
Brookfield Infrastructure Partners L.P., 5.13%, Series 13, Pfd. | 7,036 | 125,241 | ||||
Brookfield Infrastructure Partners L.P., 5.00%, Series 14, Pfd. | 5,918 | 106,169 | ||||
CMS Energy Corp., 5.63%, Pfd. | 6,584 | 164,929 | ||||
CMS Energy Corp., 5.88%, Pfd.(m) | 8,616 | 214,280 | ||||
CMS Energy Corp., 5.88%, Pfd.(m) | 17,831 | 442,744 | ||||
CMS Energy Corp., 4.20%, | 7,822 | 153,468 | ||||
DTE Energy Co., 4.38%, | 5,948 | 128,893 | ||||
DTE Energy Co., 4.38%, Pfd. | 10,096 | 218,276 | ||||
Sempra Energy, 5.75%, Pfd. | 23,005 | 566,843 | ||||
2,364,034 | ||||||
Office REITs–0.06% | ||||||
Hudson Pacific Properties, Inc., 4.75%, Series C, Pfd. | 12,907 | 120,035 | ||||
Office Properties Income Trust, 6.38%, Pfd. | 4,920 | 62,828 | ||||
SL Green Realty Corp., 6.50%, Series I, Pfd. | 6,985 | 128,594 | ||||
Vornado Realty Trust, 5.40%, Series L, Pfd. | 8,869 | 118,135 |
Shares | Value | |||||
Office REITs–(continued) | ||||||
Vornado Realty Trust, 5.25%, Series M, Pfd. | 10,046 | $ 126,680 | ||||
Vornado Realty Trust, 5.25%, Series N, Pfd. | 9,392 | 114,301 | ||||
Vornado Realty Trust, 4.45%, Series O, Pfd. | 8,670 | 95,110 | ||||
765,683 | ||||||
Office Services & Supplies–0.02% | ||||||
Pitney Bowes, Inc., 6.70%, Pfd. | 12,907 | 193,347 | ||||
Oil & Gas Storage & Transportation–0.05% | ||||||
Energy Transfer L.P., 7.60%, Series E, Pfd.(f) | 24,296 | 561,724 | ||||
Other Specialized REITs–0.00% | ||||||
EPR Properties, 5.75%, Series G, Pfd. | 3,150 | 61,740 | ||||
Property & Casualty Insurance–0.33% | ||||||
Allstate Corp. (The), 5.10%, | 34,925 | 832,961 | ||||
Allstate Corp. (The), 4.75%, | 9,110 | 218,002 | ||||
American Financial Group, Inc., 5.88%, Pfd. | 3,583 | 92,513 | ||||
American Financial Group, Inc., 5.13%, Pfd. | 6,348 | 145,623 | ||||
American Financial Group, Inc., 5.63%, Pfd. | 3,813 | 93,152 | ||||
American Financial Group, Inc., 4.50%, Pfd. | 6,906 | 133,838 | ||||
Arch Capital Group Ltd., 5.45%, Series F, Pfd. | 10,023 | 232,634 | ||||
Arch Capital Group Ltd., 4.55%, Series G, Pfd. | 15,184 | 291,229 | ||||
Argo Group International Holdings Ltd., 7.00%, Pfd.(f) | 4,438 | 106,379 | ||||
Argo Group U.S., Inc., 6.50%, Pfd. | 4,490 | 102,731 | ||||
Aspen Insurance Holdings Ltd., 5.63%, Pfd. | 7,415 | 152,008 | ||||
Aspen Insurance Holdings Ltd., 5.63%, Pfd. | 7,485 | 153,517 | ||||
AXIS Capital Holdings Ltd., 5.50%, Series E, Pfd. | 16,703 | 379,325 | ||||
Kemper Corp., 5.88%, Pfd.(f) | 4,555 | 87,912 | ||||
PartnerRe Ltd., 4.88%, Series J, Pfd. | 6,074 | 120,630 | ||||
Selective Insurance Group, Inc., 4.60%, Series B, Pfd. | 6,074 | 105,384 | ||||
W.R. Berkley Corp., 5.70%, Pfd. | 5,619 | 139,295 | ||||
W.R. Berkley Corp., 5.10%, Pfd. | 9,111 | 204,997 | ||||
W.R. Berkley Corp., 4.25%, Pfd. | 7,592 | 150,094 | ||||
W.R. Berkley Corp., 4.13%, Pfd. | 9,111 | 163,542 | ||||
3,905,766 | ||||||
Real Estate Operating Companies–0.05% | ||||||
Brookfield Property Partners L.P., 6.50%, Series A-1, Pfd. | 5,770 | 87,531 | ||||
Brookfield Property Partners L.P., 6.38%, Series A-2, Pfd. | 7,182 | 99,686 | ||||
Brookfield Property Partners L.P., 5.75%, Series A, Pfd. | 8,533 | 106,663 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 | Invesco Multi-Asset Income Fund |
Shares | Value | |||||
Real Estate Operating Companies–(continued) | ||||||
Brookfield Property Preferred L.P., 6.25%, Pfd. | 19,803 | $ 297,441 | ||||
591,321 | ||||||
Regional Banks–0.70% | ||||||
Associated Banc-Corp, 5.88%, Series E, Pfd. | 2,952 | 57,918 | ||||
Associated Banc-Corp, 5.63%, Series F, Pfd. | 2,952 | 59,630 | ||||
Associated Banc-Corp, 6.63%, Pfd.(f) | 9,248 | 228,980 | ||||
Bank of Hawaii Corp., 4.38%, Series A, Pfd. | 5,467 | 85,613 | ||||
Bank OZK, 4.63%, Series A, Pfd. | 10,629 | 166,344 | ||||
Cadence Bank, 5.50%, Series A, Pfd. | 5,239 | 111,434 | ||||
Citizens Financial Group, Inc., 6.35%, Series D, Pfd.(f) | 8,413 | 192,994 | ||||
Citizens Financial Group, Inc., 5.00%, Series E, Pfd. | 14,497 | 284,141 | ||||
Cullen/Frost Bankers, Inc., 4.45%, Series B, Pfd. | 4,555 | 88,777 | ||||
First Citizens BancShares, Inc., 5.38%, Series A, Pfd. | 10,319 | 227,121 | ||||
First Citizens BancShares, Inc., 5.63%, Series C, Pfd. | 6,231 | 133,219 | ||||
First Horizon Corp., 6.50%, Pfd. | 5,014 | 118,381 | ||||
First Horizon Corp., 6.10%, | 2,866 | 63,597 | ||||
First Horizon Corp., 4.70%, | 4,222 | 82,751 | ||||
Fulton Financial Corp., 5.13%, Series A, Pfd. | 6,074 | 100,828 | ||||
Hancock Whitney Corp., 6.25%, Pfd. | 5,239 | 127,334 | ||||
Huntington Bancshares, Inc., 4.50%, Series H, Pfd. | 14,688 | 281,422 | ||||
Huntington Bancshares, Inc., 5.70%, Series C, Pfd. | 5,340 | 120,524 | ||||
Huntington Bancshares, Inc., 6.88%, Series J, Pfd.(f) | 10,221 | 253,481 | ||||
KeyCorp, 6.13%, Series E, Pfd.(f) | 15,184 | 341,488 | ||||
KeyCorp, 5.65%, Series F, Pfd. | 12,908 | 277,393 | ||||
KeyCorp, 5.63%, Series G, Pfd. | 13,666 | 287,396 | ||||
KeyCorp, 6.20%, Pfd.(f) | 18,222 | 404,528 | ||||
M&T Bank Corp., 5.63%, Series H, Pfd.(f) | 7,592 | 174,920 | ||||
New York Community Bancorp, Inc., 6.38%, Series A, Pfd.(f) | 15,640 | 366,132 | ||||
Old National Bancorp, 7.00%, Series C, Pfd. | 3,698 | 95,408 | ||||
Old National Bancorp, 7.00%, Series A, Pfd. | 3,302 | 81,592 | ||||
PacWest Bancorp, 7.75%, Series A, Pfd.(f) | 15,587 | 244,872 | ||||
Popular Capital Trust II, 6.13%, Pfd. | 3,068 | 79,093 | ||||
Regions Financial Corp., 6.38%, Series B, Pfd.(f) | 14,850 | 355,806 | ||||
Regions Financial Corp., 5.70%, Series C, Pfd.(f) | 15,569 | 360,267 | ||||
Regions Financial Corp., 4.45%, Series E, Pfd. | 12,135 | 229,352 | ||||
Synovus Financial Corp., 5.88%, Series E, Pfd.(f) | 10,629 | 224,910 | ||||
Texas Capital Bancshares, Inc., 5.75%, Series B, Pfd. | 9,111 | 185,318 |
Shares | Value | |||||
Regional Banks–(continued) | ||||||
Truist Financial Corp., 5.25%, Series O, Pfd.(c) | 17,462 | $ 411,055 | ||||
Truist Financial Corp., 4.75%, Series R, Pfd. | 28,092 | 603,697 | ||||
Valley National Bancorp, 6.25%, Series A, Pfd.(f) | 3,493 | 64,446 | ||||
Washington Federal, Inc., 4.88%, Series A, Pfd. | 9,111 | 143,043 | ||||
Webster Financial Corp., 5.25%, Series F, Pfd. | 4,555 | 90,371 | ||||
Western Alliance Bancorporation, 4.25%, Series A, Pfd.(f) | 9,111 | 143,954 | ||||
Wintrust Financial Corp., 6.50%, Series D, Pfd.(f) | 4,273 | 103,193 | ||||
Wintrust Financial Corp., 6.88%, Series E, Pfd.(f) | 8,242 | 195,088 | ||||
8,247,811 | ||||||
Reinsurance–0.15% | ||||||
Enstar Group Ltd., 7.00%, Series D, Pfd.(f) | 12,102 | 277,136 | ||||
Enstar Group Ltd., 7.00%, Series E, Pfd. | 3,384 | 82,197 | ||||
Reinsurance Group of America, Inc., 5.75%, Pfd.(f) | 12,432 | 314,903 | ||||
Reinsurance Group of America, Inc., 7.13%, Pfd.(f) | 20,980 | 550,725 | ||||
RenaissanceRe Holdings Ltd., 5.75%, Series F, Pfd. | 7,594 | 183,471 | ||||
RenaissanceRe Holdings Ltd., 4.20%, Series G, Pfd. | 15,183 | 278,304 | ||||
SiriusPoint Ltd., 8.00%, Series B, Pfd.(f) | 6,074 | 136,179 | ||||
1,822,915 | ||||||
Renewable Electricity–0.01% | ||||||
Brookfield Renewable Partners L.P., 5.25%, Series 17, Pfd. | 5,468 | 103,892 | ||||
Retail REITs–0.06% | ||||||
Agree Realty Corp., 4.25%, | 5,315 | 101,676 | ||||
Federal Realty Investment Trust, 5.00%, Series C, Pfd. | 3,150 | 69,426 | ||||
Kimco Realty Corp., 5.13%, | 5,916 | 134,175 | ||||
Kimco Realty Corp., 5.25%, | 8,826 | 201,939 | ||||
SITE Centers Corp., 6.38%, | 5,315 | 129,367 | ||||
Spirit Realty Capital, Inc., 6.00%, Series A, Pfd. | 5,239 | 125,736 | ||||
762,319 | ||||||
Self-Storage REITs–0.24% | ||||||
Public Storage, 5.15%, Series F, Pfd. | 8,551 | 210,611 | ||||
Public Storage, 5.05%, Series G, Pfd. | 9,162 | 224,011 | ||||
Public Storage, 5.60%, Series H, Pfd. | 8,703 | 222,971 | ||||
Public Storage, 4.88%, Series I, Pfd. | 9,658 | 221,941 | ||||
Public Storage, 4.70%, Series J, Pfd. | 9,441 | 206,003 | ||||
Public Storage, 4.75%, Series K, Pfd. | 7,023 | 154,365 | ||||
Public Storage, 4.63%, Series L, Pfd. | 17,255 | 375,641 | ||||
Public Storage, 4.13%, Series M, Pfd. | 7,023 | 135,895 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 | Invesco Multi-Asset Income Fund |
Shares | Value | |||||||||
Self-Storage REITs–(continued) |
| |||||||||
Public Storage, 3.88%, Series N, Pfd. |
| 8,627 | $ 161,152 | |||||||
Public Storage, 3.90%, Series O, Pfd. |
| 5,192 | 97,142 | |||||||
Public Storage, 4.00%, Series P, Pfd. |
| 18,438 | 356,038 | |||||||
Public Storage, 3.95%, Series Q, Pfd. |
| 4,388 | 80,739 | |||||||
Public Storage, 4.00%, Series R, Pfd. |
| 13,284 | 248,411 | |||||||
Public Storage, 4.10%, Series S, Pfd. |
| 5,051 | 97,030 | |||||||
2,791,950 | ||||||||||
Single-Family Residential REITs–0.01% |
| |||||||||
American Homes 4 Rent, 5.88%, Series G, Pfd. | 3,814 | 92,986 | ||||||||
American Homes 4 Rent, 6.25%, Series H, Pfd. | 3,184 | 80,555 | ||||||||
173,541 | ||||||||||
Trading Companies & Distributors–0.09% |
| |||||||||
FTAI Aviation Ltd., 8.25%, Series A, Pfd.(f) | 3,487 | 80,236 | ||||||||
FTAI Aviation Ltd., 8.00%, Series B, Pfd.(f) | 3,596 | 78,752 | ||||||||
FTAI Aviation Ltd., 8.25%, Series C, Pfd.(f) | 3,031 | 69,743 | ||||||||
Triton International Ltd., 8.00%, Pfd. |
| 4,365 | 108,994 | |||||||
Triton International Ltd., 7.38%, Pfd. |
| 5,315 | 122,192 | |||||||
Triton International Ltd., 6.88%, Pfd. |
| 4,555 | 102,078 | |||||||
Triton International Ltd., 5.75%, Series E, Pfd. | 5,315 | 101,729 | ||||||||
WESCO International, Inc., 10.63%, Series A, Pfd.(f) | 16,409 | 446,325 | ||||||||
1,110,049 | ||||||||||
Wireless Telecommunication Services–0.10% | ||||||||||
Telephone and Data Systems, Inc., 6.63%, Series UU, Pfd. | 12,755 | 190,942 | ||||||||
Telephone and Data Systems, Inc., 6.00%, Series VV, Pfd. | 20,957 | 281,453 | ||||||||
United States Cellular Corp., 6.25%, Pfd. | 15,184 | 254,939 | ||||||||
United States Cellular Corp., 5.50%, Pfd. | 15,184 | 229,734 | ||||||||
United States Cellular Corp., 5.50%, Pfd. | 15,184 | 231,556 | ||||||||
1,188,624 | ||||||||||
Total Preferred Stocks (Cost $82,081,648) |
| 78,192,662 | ||||||||
Principal Amount | ||||||||||
Non-U.S. Dollar Denominated Bonds & Notes–0.88%(n) | ||||||||||
Aerospace & Defense–0.02% |
| |||||||||
Thales S.A. (France), 0.75%, 01/23/2025(b) | EUR | 200,000 | 210,190 | |||||||
Agricultural Products & Services–0.01% |
| |||||||||
Archer-Daniels-Midland Co., 1.00%, 09/12/2025 | EUR | 125,000 | 130,241 | |||||||
Apparel, Accessories & Luxury Goods–0.01% |
| |||||||||
PVH Corp., 3.13%, 12/15/2027(b) | EUR | 100,000 | 105,774 | |||||||
Automobile Manufacturers–0.05% |
| |||||||||
BMW Finance N.V. (Germany), 1.00%, 01/21/2025(b) | EUR | 150,000 | 159,817 |
Principal Amount | Value | |||||||||
Automobile Manufacturers–(continued) | ||||||||||
Mercedes-Benz International Finance B.V. (Germany), 2.00%, 08/22/2026(b) | EUR | 45,000 | $ 48,172 | |||||||
Nissan Motor Co. Ltd. (Japan), 2.65%, 03/17/2026(b) | EUR | 100,000 | 103,738 | |||||||
Volkswagen Financial Services AG (Germany), |
| |||||||||
0.13%, 02/12/2027(b) | EUR | 90,000 | 86,317 | |||||||
2.25%, 10/01/2027(b) | EUR | 49,000 | 50,653 | |||||||
Volkswagen Leasing GmbH (Germany), | ||||||||||
1.50%, 06/19/2026(b) | EUR | 100,000 | 102,416 | |||||||
0.38%, 07/20/2026(b) | EUR | 85,000 | 83,673 | |||||||
634,786 | ||||||||||
Automotive Parts & Equipment–0.01% |
| |||||||||
Magna International, Inc. (Canada), 1.50%, 09/25/2027 | EUR | 100,000 | 101,799 | |||||||
Brewers–0.02% |
| |||||||||
Anheuser-Busch InBev S.A./N.V. (Belgium), 2.88%, 09/25/2024(b) | EUR | 175,000 | 192,908 | |||||||
Broadcasting–0.02% |
| |||||||||
ITV PLC (United Kingdom), 1.38%, 09/26/2026(b) | EUR | 125,000 | 127,034 | |||||||
TDF Infrastructure S.A.S.U. (France), 2.50%, 04/07/2026(b) | EUR | 100,000 | 104,998 | |||||||
232,032 | ||||||||||
Cable & Satellite–0.01% |
| |||||||||
SES S.A. (Luxembourg), 1.63%, 03/22/2026(b) | EUR | 120,000 | 123,042 | |||||||
Casinos & Gaming–0.02% |
| |||||||||
Codere Finance 2 (Luxembourg) S.A. (Spain), 3.00% PIK Rate, 8.00% Cash Rate, 09/30/2026(b)(e) | EUR | 216,503 | 205,166 | |||||||
Commercial & Residential Mortgage Finance–0.01% | ||||||||||
Aareal Bank AG (Germany), 0.50%, 04/07/2027(b) | EUR | 200,000 | 174,088 | |||||||
Construction Machinery & Heavy Transportation Equipment– 0.01% | ||||||||||
Metso Outotec OYJ (Finland), 1.13%, 06/13/2024(b) | EUR | 100,000 | 106,743 | |||||||
Construction Materials–0.00% |
| |||||||||
HeidelbergCement Finance (Luxembourg) S.A. (Germany), 1.63%, 04/07/2026(b) | EUR | 60,000 | 62,660 | |||||||
Diversified Banks–0.25% |
| |||||||||
Banco Bilbao Vizcaya Argentaria S.A. (Spain), 0.38%, 10/02/2024(b) | EUR | 200,000 | 210,363 | |||||||
Banco Santander S.A. (Spain), | ||||||||||
3.13%, 01/19/2027(b) | EUR | 100,000 | 105,876 | |||||||
0.50%, 02/04/2027(b) | EUR | 100,000 | 96,702 | |||||||
Bankinter S.A. (Spain), 0.88%, 07/08/2026(b) | EUR | 100,000 | 99,072 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||||||
Diversified Banks–(continued) |
| |||||||||
Banque Federative du Credit Mutuel S.A. (France), | ||||||||||
1.25%, 01/14/2025(b) | EUR | 100,000 | $ 105,444 | |||||||
2.13%, 09/12/2026(b) | EUR | 100,000 | 103,459 | |||||||
0.63%, 11/19/2027(b) | EUR | 100,000 | 94,383 | |||||||
Belfius Bank S.A. (Belgium), 0.01%, 10/15/2025(b) | EUR | 200,000 | 201,645 | |||||||
BNP Paribas S.A. (France), | ||||||||||
1.50%, 11/17/2025(b) | EUR | 100,000 | 105,470 | |||||||
2.88%, 10/01/2026(b) | EUR | 100,000 | 105,593 | |||||||
0.25%, 04/13/2027(b)(f) | EUR | 100,000 | 98,195 | |||||||
BPCE S.A. (France), 0.63%, 09/26/2024(b) | EUR | 200,000 | 210,659 | |||||||
Credit Agricole S.A. (France), | ||||||||||
1.00%, 09/16/2024(b) | EUR | 100,000 | 106,056 | |||||||
1.38%, 03/13/2025(b) | EUR | 200,000 | 211,371 | |||||||
0.38%, 10/21/2025(b) | EUR | 100,000 | 102,131 | |||||||
de Volksbank N.V. (Netherlands), 0.01%, 09/16/2024(b) | EUR | 100,000 | 104,800 | |||||||
ING Groep N.V. (Netherlands), 1.13%, 02/14/2025(b) | EUR | 100,000 | 105,422 | |||||||
Mediobanca Banca di Credito Finanziario S.p.A. (Italy), 0.88%, 01/15/2026(b) | EUR | 100,000 | 102,165 | |||||||
Mizuho Financial Group, Inc. (Japan), 4.16%, 05/20/2028(b) | EUR | 100,000 | 110,694 | |||||||
Natwest Group PLC (United Kingdom), 4.07%, 09/06/2028(b)(f) | EUR | 100,000 | 109,229 | |||||||
Nordea Bank Abp (Finland), 1.13%, 02/12/2025(b) | EUR | 100,000 | 105,320 | |||||||
Skandinaviska Enskilda Banken AB (Sweden), 0.75%, 08/09/2027(b) | EUR | 200,000 | 191,497 | |||||||
Standard Chartered PLC (United Kingdom), 0.90%, 07/02/2027(b)(f) | EUR | 100,000 | 98,858 | |||||||
Swedbank AB (Sweden), 0.30%, 05/20/2027(b)(f) | EUR | 100,000 | 97,473 | |||||||
2,981,877 | ||||||||||
Diversified Capital Markets–0.04% | ||||||||||
Deutsche Bank AG (Germany), |
| |||||||||
2.63%, 02/12/2026(b) | EUR | 100,000 | 103,872 | |||||||
0.75%, 02/17/2027(b)(f) | EUR | 100,000 | 97,771 | |||||||
Macquarie Group Ltd. (Australia), 0.63%, 02/03/2027(b) | EUR | 100,000 | 96,979 | |||||||
UBS Group AG (Switzerland), 0.25%, 11/05/2028(b)(f) | EUR | 200,000 | 180,481 | |||||||
479,103 | ||||||||||
Diversified Chemicals–0.02% | ||||||||||
BASF SE (Germany), | ||||||||||
0.25%, 06/05/2027(b) | EUR | 100,000 | 98,507 | |||||||
3.13%, 06/29/2028(b) | EUR | 100,000 | 109,962 | |||||||
208,469 | ||||||||||
Diversified Financial Services–0.03% | ||||||||||
Clearstream Banking AG (Germany), 0.00%, 12/01/2025(b) | EUR | 100,000 | 100,886 |
Principal Amount | Value | |||||||||
Diversified Financial Services–(continued) | ||||||||||
LeasePlan Corp. N.V. (Netherlands), 3.50%, 04/09/2025(b) | EUR | 200,000 | $ 217,543 | |||||||
OP Corporate Bank PLC (Finland), 0.60%, 01/18/2027 | EUR | 100,000 | 96,733 | |||||||
415,162 | ||||||||||
Electric Utilities–0.03% | ||||||||||
AusNet Services Holdings Pty. Ltd. (Australia), 1.50%, 02/26/2027(b) | EUR | 100,000 | 101,718 | |||||||
EDP Finance B.V. (Portugal), 1.50%, 11/22/2027(b) | EUR | 100,000 | 100,901 | |||||||
Elenia Verkko OYJ (Finland), 0.38%, 02/06/2027(b) | EUR | 140,000 | 135,592 | |||||||
338,211 | ||||||||||
Food Retail–0.01% | ||||||||||
ELO SACA (France), 2.88%, 01/29/2026(b) | EUR | 100,000 | 106,034 | |||||||
Gas Utilities–0.01% | ||||||||||
2i Rete Gas S.p.A. (Italy), 1.75%, 08/28/2026(b) | EUR | 100,000 | 103,263 | |||||||
Health Care Equipment–0.01% | ||||||||||
Zimmer Biomet Holdings, Inc., 2.43%, 12/13/2026 | EUR | 100,000 | 105,617 | |||||||
Health Care Services–0.00% | ||||||||||
Fresenius Medical Care AG & Co. KGaA (Germany), 0.63%, 11/30/2026(b) | EUR | 30,000 | 29,898 | |||||||
Health Care Supplies–0.01% | ||||||||||
EssilorLuxottica S.A. (France), 2.38%, 04/09/2024(b) | EUR | 100,000 | 109,178 | |||||||
Household Appliances–0.01% | ||||||||||
Whirlpool Finance Luxembourg S.a.r.l., 1.10%, 11/09/2027 | EUR | 100,000 | 98,572 | |||||||
Household Products–0.01% | ||||||||||
Procter & Gamble Co. (The), 4.88%, 05/11/2027 | EUR | 75,000 | 88,636 | |||||||
Integrated Oil & Gas–0.03% | ||||||||||
Eni S.p.A. (Italy), 1.00%, 03/14/2025(b) | EUR | 130,000 | 137,241 | |||||||
Shell International Finance B.V. (Netherlands), 0.38%, 02/15/2025(b) | EUR | 160,000 | 167,572 | |||||||
304,813 | ||||||||||
Investment Banking & Brokerage–0.00% | ||||||||||
Goldman Sachs Group, Inc. (The), 0.25%, 01/26/2028(b) | EUR | 72,000 | 66,614 | |||||||
IT Consulting & Other Services–0.02% | ||||||||||
DXC Technology Co., 1.75%, 01/15/2026 | EUR | 100,000 | 103,260 | |||||||
International Business Machines Corp., 1.25%, 01/29/2027 | EUR | 100,000 | 102,200 | |||||||
205,460 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 | Invesco Multi-Asset Income Fund |
Principal Amount | Value | |||||||||
Life & Health Insurance–0.01% |
| |||||||||
Ethias S.A. (Belgium), 5.00%, 01/14/2026(b) | EUR | 100,000 | $ 110,250 | |||||||
Multi-line Insurance–0.02% | ||||||||||
Cloverie PLC for Zurich Insurance Co. Ltd. (Switzerland), 1.75%, 09/16/2024(b) | EUR | 100,000 | 107,090 | |||||||
New York Life Global Funding, 0.25%, 01/23/2027(b) | EUR | 100,000 | 97,366 | |||||||
204,456 | ||||||||||
Multi-Sector Holdings–0.02% | ||||||||||
Berkshire Hathaway, Inc., 1.13%, 03/16/2027 | EUR | 100,000 | 101,005 | |||||||
Groupe Bruxelles Lambert N.V. (Belgium), 1.88%, 06/19/2025(b) | EUR | 100,000 | 106,394 | |||||||
207,399 | ||||||||||
Office REITs–0.02% | ||||||||||
Globalworth Real Estate Investments Ltd. (Poland), 2.95%, 07/29/2026(b) | EUR | 100,000 | 86,668 | |||||||
Inmobiliaria Colonial SOCIMI S.A. (Spain), 1.63%, 11/28/2025(b) | EUR | 200,000 | 208,844 | |||||||
295,512 | ||||||||||
Oil & Gas Exploration & Production–0.01% | ||||||||||
APA Infrastructure Ltd. (Australia), 2.00%, 03/22/2027(b) | EUR | 100,000 | 102,073 | |||||||
Passenger Airlines–0.01% | ||||||||||
easyJet FinCo B.V. (United Kingdom), 1.88%, 03/03/2028(b) | EUR | 100,000 | 96,851 | |||||||
Pharmaceuticals–0.03% | ||||||||||
Bayer AG (Germany), 0.38%, 07/06/2024(b) | EUR | 200,000 | 212,409 | |||||||
Novartis Finance S.A. (Switzerland), 1.63%, 11/09/2026(b) | EUR | 100,000 | 104,495 | |||||||
316,904 | ||||||||||
Precious Metals & Minerals–0.01% | ||||||||||
Anglo American Capital PLC (South Africa), 1.63%, 03/11/2026(b) | EUR | 100,000 | 104,456 | |||||||
Rail Transportation–0.01% | ||||||||||
Autostrade Per L’Italia S.p.A. (Italy), 2.00%, 12/04/2028(b) | EUR | 100,000 | 96,191 | |||||||
Real Estate Operating Companies–0.01% | ||||||||||
Samhallsbyggnadsbolaget i Norden AB (Sweden), 1.13%, 09/04/2026(b) | EUR | 100,000 | 80,270 | |||||||
Regional Banks–0.01% | ||||||||||
Credit Mutuel Arkea S.A. (France), 0.38%, 10/03/2028(b) | EUR | 100,000 | 91,418 |
Principal Amount | Value | |||||||||
Regional Banks–(continued) | ||||||||||
SpareBank 1 SMN (Norway), 0.01%, 02/18/2028(b) | EUR | 100,000 | $ 90,985 | |||||||
182,403 | ||||||||||
Renewable Electricity–0.01% | ||||||||||
Southern Power Co., 1.85%, 06/20/2026 | EUR | 100,000 | 104,065 | |||||||
Restaurants–0.01% | ||||||||||
Sodexo S.A. (France), 0.75%, 04/27/2025(b) | EUR | 150,000 | 156,624 | |||||||
Telecom Tower REITs–0.01% | ||||||||||
American Tower Corp., 1.95%, 05/22/2026 | EUR | 100,000 | 104,201 | |||||||
Tobacco–0.01% | ||||||||||
Imperial Brands Finance PLC (United Kingdom), 3.38%, 02/26/2026(b) | EUR | 100,000 | 108,296 | |||||||
Transaction & Payment Processing Services–0.01% | ||||||||||
Euronet Worldwide, Inc., 1.38%, 05/22/2026 | EUR | 100,000 | 99,436 | |||||||
Total Non-U.S. Dollar Denominated Bonds & Notes |
| 10,289,723 | ||||||||
Asset-Backed Securities–0.00% | ||||||||||
Banc of America Funding Trust, Series 2007-1, Class 1A3, 6.00%, 01/25/2037 | $ | 48,681 | 40,554 | |||||||
GMACM Home Equity Loan Trust, Series 2007-HE2, Class A2, 6.05%, 12/25/2037(o) | 1,437 | 1,435 | ||||||||
Total Asset-Backed Securities (Cost $45,645) |
| 41,989 | ||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities–0.00% | ||||||||||
Fannie Mae REMICs, IO, 4.85% (9.80% - (1.00 x 1 mo. USD LIBOR)), 03/17/2031 (Cost $0)(p) | 13 | 0 | ||||||||
Shares | ||||||||||
Money Market Funds–16.61% | ||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(q)(r) | 68,326,944 | 68,326,944 | ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(q)(r) | 48,801,867 | 48,816,508 | ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(q)(r) | 78,087,935 | 78,087,935 | ||||||||
Total Money Market Funds |
| 195,231,387 | ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-103.19% |
| 1,212,785,553 | ||||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||||
Money Market Funds–3.09% | ||||||||||
Invesco Private Government Fund, 4.83%(q)(r)(s) | 10,165,469 | 10,165,469 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 | Invesco Multi-Asset Income Fund |
Shares | Value | |||||||||||
Money Market Funds–(continued) |
| |||||||||||
Invesco Private Prime Fund, 4.99%(q)(r)(s) | 26,139,779 | $ | 26,139,779 | |||||||||
| ||||||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $36,307,642) |
| 36,305,248 | ||||||||||
| ||||||||||||
TOTAL INVESTMENTS IN |
| 1,249,090,801 | ||||||||||
| ||||||||||||
OTHER ASSETS LESS LIABILITIES–(6.28)% |
| (73,797,513 | ) | |||||||||
| ||||||||||||
NET ASSETS–100.00% |
| $ | 1,175,293,288 | |||||||||
|
Investment Abbreviations:
| ||
ETF | – Exchange-Traded Fund | |
EUR | – Euro | |
IO | – Interest Only | |
LIBOR | – London Interbank Offered Rate | |
Pfd. | – Preferred | |
PIK | – Pay-in-Kind | |
REIT | – Real Estate Investment Trust | |
REMICs | – Real Estate Mortgage Investment Conduits | |
SPDR® | – Standard & Poor’s Depositary Receipt | |
USD | – U.S. Dollar |
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, 2023 was $526,085,131, which represented 44.76% of the Fund’s Net Assets. |
(c) | All or a portion of this security was out on loan at April 30, 2023. |
(d) | Restricted security. The aggregate value of these securities at April 30, 2023 was $1,683,155, which represented less than 1% of the Fund’s Net Assets. |
(e) | All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
(f) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(g) | Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at April 30, 2023 was $1,386,825, which represented less than 1% of the Fund’s Net Assets. |
(h) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
(i) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2023. |
(j) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(k) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1N. |
(l) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(m) | The Fund holds securities which have been issued by the same entity and that trade on separate exchanges. |
(n) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(o) | 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, 2023. |
(p) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. |
(q) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | $ | 71,909,306 | $ | 148,684,106 | $ | (152,266,468) | $ | - | $ | - | $ | 68,326,944 | $ | 1,447,873 | ||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | 51,368,964 | 106,202,934 | (108,761,764) | 4,429 | 1,945 | 48,816,508 | 1,070,099 | |||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | 82,182,063 | 169,924,693 | (174,018,821) | - | - | 78,087,935 | 1,654,108 | |||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | 11,815,323 | 31,464,035 | (33,113,889) | - | - | 10,165,469 | 209,321* | |||||||||||||||||||||
Invesco Private Prime Fund | 30,374,276 | 66,635,601 | (70,869,832) | (2,291) | 2,025 | 26,139,779 | 574,530* | |||||||||||||||||||||
Total | $ | 247,649,932 | $ | 522,911,369 | $ | (539,030,774) | $ | 2,138 | $ | 3,970 | $ | 231,536,635 | $ | 4,955,931 |
* | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
26 | Invesco Multi-Asset Income Fund |
(r) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(s) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1K. |
Open Futures Contracts(a) | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
EURO STOXX 50 Index | 490 | June-2023 | $ | 23,325,029 | $ | 1,131,836 | $ | 1,131,836 | ||||||||||||
| ||||||||||||||||||||
FTSE 100 Index | 333 | June-2023 | 32,904,394 | 1,205,478 | 1,205,478 | |||||||||||||||
| ||||||||||||||||||||
MSCI Emerging Markets Index | 125 | June-2023 | 6,151,250 | (69,227 | ) | (69,227 | ) | |||||||||||||
| ||||||||||||||||||||
Tokyo Stock Price Index | 341 | June-2023 | 51,508,532 | 1,011,078 | 1,011,078 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 3,279,165 | 3,279,165 | ||||||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 36 | June-2023 | 3,950,719 | (5,219 | ) | (5,219 | ) | |||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Notes | 112 | June-2023 | 12,902,750 | 360,969 | 360,969 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Ultra Notes | 84 | June-2023 | 10,202,063 | 288,734 | 288,734 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury Ultra Bonds | 41 | June-2023 | 5,797,656 | 204,562 | 204,562 | |||||||||||||||
| ||||||||||||||||||||
Subtotal | 849,046 | 849,046 | ||||||||||||||||||
| ||||||||||||||||||||
Subtotal–Long Futures Contracts | 4,128,211 | 4,128,211 | ||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Equity Risk | ||||||||||||||||||||
| ||||||||||||||||||||
E-Mini Russell 2000 Index | 207 | June-2023 | (18,369,180 | ) | 367,929 | 367,929 | ||||||||||||||
| ||||||||||||||||||||
E-Mini S&P 500 Index | 32 | June-2023 | (6,701,600 | ) | (250,562 | ) | (250,562 | ) | ||||||||||||
| ||||||||||||||||||||
Subtotal | 117,367 | 117,367 | ||||||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Euro-Bobl | 37 | June-2023 | (4,809,674 | ) | (105,430 | ) | (105,430 | ) | ||||||||||||
| ||||||||||||||||||||
Euro-Bund | 301 | June-2023 | (44,961,461 | ) | (1,127,139 | ) | (1,127,139 | ) | ||||||||||||
| ||||||||||||||||||||
Euro-Schatz | 27 | June-2023 | (3,143,970 | ) | (21,217 | ) | (21,217 | ) | ||||||||||||
| ||||||||||||||||||||
Long Gilt | 340 | June-2023 | (43,353,362 | ) | (331,854 | ) | (331,854 | ) | ||||||||||||
| ||||||||||||||||||||
U.S. Treasury 2 Year Notes | 67 | June-2023 | (13,812,992 | ) | (121,187 | ) | (121,187 | ) | ||||||||||||
| ||||||||||||||||||||
U.S. Treasury Long Bonds | 164 | June-2023 | (21,591,625 | ) | (1,000,067 | ) | (1,000,067 | ) | ||||||||||||
| ||||||||||||||||||||
Subtotal | (2,706,894 | ) | (2,706,894 | ) | ||||||||||||||||
| ||||||||||||||||||||
Subtotal–Short Futures Contracts | (2,589,527 | ) | (2,589,527 | ) | ||||||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | 1,538,684 | $ | 1,538,684 | ||||||||||||||||
|
(a) | Futures contracts collateralized by $14,965,000 cash held with Goldman Sachs International, the futures commission merchant. |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||
| ||||||||||||||||||||||
Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
Settlement Date | Contract to | |||||||||||||||||||||
Counterparty | Deliver | Receive | ||||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
05/10/2023 | Bank of America, N.A. | USD | 199,337 | EUR | 183,000 | $ | 2,399 | |||||||||||||||
| ||||||||||||||||||||||
05/10/2023 | Goldman Sachs International | USD | 45,847 | EUR | 43,000 | 1,556 | ||||||||||||||||
| ||||||||||||||||||||||
05/10/2023 | J.P. Morgan Chase Bank, N.A. | USD | 70,891 | EUR | 65,000 | 764 | ||||||||||||||||
| ||||||||||||||||||||||
Subtotal–Appreciation | 4,719 | |||||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
05/10/2023 | Bank of America, N.A. | EUR | 86,000 | USD | 93,613 | (1,193 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/10/2023 | J.P. Morgan Chase Bank, N.A. | EUR | 65,000 | USD | 69,212 | (2,443 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/10/2023 | State Street Bank & Trust Co. | EUR | 9,056,000 | USD | 9,720,480 | (262,722 | ) | |||||||||||||||
| ||||||||||||||||||||||
05/10/2023 | UBS AG | EUR | 210,000 | USD | 229,627 | (1,874 | ) | |||||||||||||||
| ||||||||||||||||||||||
Subtotal–Depreciation | (268,232 | ) | ||||||||||||||||||||
| ||||||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | (263,513 | ) | |||||||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
27 | Invesco Multi-Asset Income Fund |
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) | |||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||||||||
Markit CDX North America High Yield Index, Series 39, Version 2 | Sell | 5.00% | Quarterly | 12/20/2027 | 4.463% | USD 1,608,750 | $36,276 | $32,166 | $(4,110) |
(a) | Swaps are collateralized by $137,831 cash held with Merrill Lynch International, the Counterparty. |
(b) | Implied credit spreads represent the current level, as of April 30, 2023, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally. |
Abbreviations:
EUR –Euro
USD –U.S. Dollar
Portfolio Composition
By security type, based on Net Assets
as of April 30, 2023
U.S. Dollar Denominated Bonds & Notes | 31.29 | % | |||
Equity Linked Notes | 26.27 | ||||
U.S. Treasury Securities | 21.49 | ||||
Preferred Stocks | 6.65 | ||||
Security Types Each Less Than 1% of Portfolio | 0.88 | ||||
Money Market Funds Plus Other Assets Less Liabilities | 13.42 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
28 | Invesco Multi-Asset Income Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 1,017,554,166 | ||
| ||||
Investments in affiliated money market funds, at value (Cost $231,529,527) | 231,536,635 | |||
| ||||
Other investments: | ||||
Variation margin receivable–centrally cleared swap agreements | 318,480 | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 4,719 | |||
| ||||
Deposits with brokers: | ||||
Cash collateral – exchange-traded futures contracts | 14,965,000 | |||
| ||||
Cash collateral – centrally cleared swap agreements | 137,831 | |||
| ||||
Cash | 25,334,876 | |||
| ||||
Foreign currencies, at value (Cost $15,454) | 15,483 | |||
| ||||
Receivable for: | ||||
Investments sold | 263,645 | |||
| ||||
Fund shares sold | 249,625 | |||
| ||||
Dividends | 1,155,299 | |||
| ||||
Interest | 10,702,227 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 190,258 | |||
| ||||
Other assets | 66,373 | |||
| ||||
Total assets | 1,302,494,617 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Variation margin payable – futures contracts | 157,162 | |||
| ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 268,232 | |||
| ||||
Payable for: | ||||
Investments purchased | 88,017,000 | |||
| ||||
Fund shares reacquired | 1,300,293 | |||
| ||||
Collateral upon return of securities loaned | 36,307,642 | |||
| ||||
Accrued fees to affiliates | 615,400 | |||
| ||||
Accrued trustees’ and officers’ fees and benefits | 205 | |||
| ||||
Accrued other operating expenses | 305,709 | |||
| ||||
Trustee deferred compensation and retirement plans | 229,686 | |||
| ||||
Total liabilities | 127,201,329 | |||
| ||||
Net assets applicable to shares outstanding | $ | 1,175,293,288 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 1,907,092,140 | ||
| ||||
Distributable earnings (loss) | (731,798,852 | ) | ||
| ||||
$ | 1,175,293,288 | |||
| ||||
Net Assets: | ||||
Class A | $ | 863,210,295 | ||
| ||||
Class C | $ | 75,968,759 | ||
| ||||
Class R | $ | 25,055,079 | ||
| ||||
Class Y | $ | 161,235,554 | ||
| ||||
Class R5 | $ | 9,471 | ||
| ||||
Class R6 | $ | 49,814,130 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 110,593,813 | |||
| ||||
Class C | 9,736,064 | |||
| ||||
Class R | 3,207,717 | |||
| ||||
Class Y | 20,642,539 | |||
| ||||
Class R5 | 1,212 | |||
| ||||
Class R6 | 6,377,625 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 7.81 | ||
| ||||
Maximum offering price per share | $ | 8.26 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 7.80 | ||
| ||||
Class R: | ||||
Net asset value and offering price per share | $ | 7.81 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 7.81 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 7.81 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 7.81 | ||
|
* | At April 30, 2023, securities with an aggregate value of $35,984,259 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
29 | Invesco Multi-Asset Income Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest | $ | 37,944,984 | ||
| ||||
Dividends (net of foreign withholding taxes of $773) | 2,262,709 | |||
| ||||
Dividends from affiliated money market funds (includes net securities lending income of $125,616) | 4,297,696 | |||
| ||||
Total investment income | 44,505,389 | |||
| ||||
Expenses: | ||||
Advisory fees | 2,717,604 | |||
| ||||
Administrative services fees | 85,301 | |||
| ||||
Custodian fees | 28,061 | |||
| ||||
Distribution fees: | ||||
Class A | 994,822 | |||
| ||||
Class C | 401,407 | |||
| ||||
Class R | 60,196 | |||
| ||||
Transfer agent fees – A, C, R and Y | 808,544 | |||
| ||||
Transfer agent fees – R5 | 26 | |||
| ||||
Transfer agent fees – R6 | 7,582 | |||
| ||||
Trustees’ and officers’ fees and benefits | 13,613 | |||
| ||||
Registration and filing fees | 50,142 | |||
| ||||
Reports to shareholders | 49,201 | |||
| ||||
Professional services fees | 38,224 | |||
| ||||
Other | (369,556 | ) | ||
| ||||
Total expenses | 4,885,167 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (451,736 | ) | ||
| ||||
Net expenses | 4,433,431 | |||
| ||||
Net investment income | 40,071,958 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (37,625,784 | ) | ||
| ||||
Affiliated investment securities | 3,970 | |||
| ||||
Foreign currencies | (271,779 | ) | ||
| ||||
Forward foreign currency contracts | (525,007 | ) | ||
| ||||
Futures contracts | (10,475,062 | ) | ||
| ||||
Swap agreements | 188,002 | |||
| ||||
(48,705,660 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 94,065,080 | |||
| ||||
Affiliated investment securities | 2,138 | |||
| ||||
Foreign currencies | 140,544 | |||
| ||||
Forward foreign currency contracts | (368,589 | ) | ||
| ||||
Futures contracts | 4,008,787 | |||
| ||||
Swap agreements | (62,518 | ) | ||
| ||||
97,785,442 | ||||
| ||||
Net realized and unrealized gain | 49,079,782 | |||
| ||||
Net increase in net assets resulting from operations | $ | 89,151,740 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
30 | Invesco Multi-Asset Income Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 40,071,958 | $ | 82,010,526 | ||||
| ||||||||
Net realized gain (loss) | (48,705,660 | ) | (146,212,849 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 97,785,442 | (218,104,297 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 89,151,740 | (282,306,620 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (29,292,255 | ) | (63,724,100 | ) | ||||
| ||||||||
Class C | (2,444,623 | ) | (6,302,892 | ) | ||||
| ||||||||
Class R | (792,908 | ) | (1,654,502 | ) | ||||
| ||||||||
Class Y | (5,783,645 | ) | (14,535,382 | ) | ||||
| ||||||||
Class R5 | (1,648 | ) | (4,645 | ) | ||||
| ||||||||
Class R6 | (1,798,302 | ) | (3,841,106 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (40,113,381 | ) | (90,062,627 | ) | ||||
| ||||||||
Share transactions–net: | ||||||||
Class A | (25,398,510 | ) | (62,425,231 | ) | ||||
| ||||||||
Class C | (11,563,144 | ) | (33,565,852 | ) | ||||
| ||||||||
Class R | 610,111 | (16,663,281 | ) | |||||
| ||||||||
Class Y | (18,139,061 | ) | (43,908,235 | ) | ||||
| ||||||||
Class R5 | (55,128 | ) | 3,957 | |||||
| ||||||||
Class R6 | (2,593,313 | ) | 665,585 | |||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (57,139,045 | ) | (155,893,057 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (8,100,686 | ) | (528,262,304 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 1,183,393,974 | 1,711,656,278 | ||||||
| ||||||||
End of period | $ | 1,175,293,288 | $ | 1,183,393,974 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
31 | Invesco Multi-Asset Income Fund |
(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 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 net assets expenses absorbed | Ratio of fee waivers | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $ | 7.49 | $ | 0.26 | $ | 0.32 | $ | 0.58 | $ | (0.26 | ) | $ | – | $ | (0.26 | ) | $ | 7.81 | 7.88 | %(d) | $ | 863,210 | 0.73 | %(d)(e) | 0.82 | %(d)(e) | 6.86 | %(d)(e) | 30 | % | ||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.75 | 0.50 | (2.21 | ) | (1.71 | ) | (0.55 | ) | – | (0.55 | ) | 7.49 | (18.16 | )(d) | 852,899 | 0.82 | (d) | 0.87 | (d) | 5.68 | (d) | 94 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 9.26 | 0.48 | 0.59 | 1.07 | (0.58 | ) | – | (0.58 | ) | 9.75 | 11.73 | (d) | 1,178,389 | 0.82 | (d) | 0.91 | (d) | 4.93 | (d) | 53 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.79 | 0.58 | (1.55 | ) | (0.97 | ) | (0.56 | ) | – | (0.56 | ) | 9.26 | (8.97 | )(d) | 1,209,154 | 0.82 | (d) | 0.92 | (d) | 6.13 | (d) | 117 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.07 | 0.55 | 0.74 | 1.29 | (0.57 | ) | – | (0.57 | ) | 10.79 | 13.18 | 188,655 | 0.84 | 0.97 | 5.21 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.49 | 0.23 | 0.31 | 0.54 | (0.23 | ) | – | (0.23 | ) | 7.80 | 7.33 | 75,969 | 1.50 | (e) | 1.59 | (e) | 6.09 | (e) | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.75 | 0.43 | (2.21 | ) | (1.78 | ) | (0.48 | ) | – | (0.48 | ) | 7.49 | (18.80 | ) | 84,143 | 1.59 | 1.64 | 4.91 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 9.26 | 0.40 | 0.60 | 1.00 | (0.51 | ) | – | (0.51 | ) | 9.75 | 10.89 | 147,030 | 1.59 | 1.68 | 4.16 | 53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.78 | 0.51 | (1.54 | ) | (1.03 | ) | (0.49 | ) | – | (0.49 | ) | 9.26 | (9.58 | ) | 210,967 | 1.59 | 1.69 | 5.36 | 117 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.06 | 0.47 | 0.74 | 1.21 | (0.49 | ) | – | (0.49 | ) | 10.78 | 12.35 | 118,619 | 1.59 | 1.72 | 4.46 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.49 | 0.25 | 0.32 | 0.57 | (0.25 | ) | – | (0.25 | ) | 7.81 | 7.73 | 25,055 | 1.00 | (e) | 1.09 | (e) | 6.59 | (e) | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.76 | 0.47 | (2.22 | ) | (1.75 | ) | (0.52 | ) | – | (0.52 | ) | 7.49 | (18.47 | ) | 23,452 | 1.09 | 1.14 | 5.41 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 9.27 | 0.45 | 0.59 | 1.04 | (0.55 | ) | – | (0.55 | ) | 9.76 | 11.43 | 47,214 | 1.09 | 1.18 | 4.66 | 53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.78 | 0.55 | (1.52 | ) | (0.97 | ) | (0.54 | ) | – | (0.54 | ) | 9.27 | (9.02 | ) | 55,930 | 1.09 | 1.19 | 5.86 | 117 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.07 | 0.52 | 0.74 | 1.26 | (0.55 | ) | – | (0.55 | ) | 10.78 | 12.80 | 5,202 | 1.09 | 1.22 | 4.96 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.49 | 0.27 | 0.32 | 0.59 | (0.27 | ) | – | (0.27 | ) | 7.81 | 8.00 | 161,236 | 0.50 | (e) | 0.59 | (e) | 7.09 | (e) | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.76 | 0.52 | (2.22 | ) | (1.70 | ) | (0.57 | ) | – | (0.57 | ) | 7.49 | (18.05 | ) | 172,528 | 0.59 | 0.64 | 5.91 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 9.27 | 0.50 | 0.59 | 1.09 | (0.60 | ) | – | (0.60 | ) | 9.76 | 11.99 | 274,095 | 0.59 | 0.68 | 5.16 | 53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.79 | 0.62 | (1.55 | ) | (0.93 | ) | (0.59 | ) | – | (0.59 | ) | 9.27 | (8.65 | ) | 360,565 | 0.59 | 0.69 | 6.36 | 117 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.07 | 0.57 | 0.75 | 1.32 | (0.60 | ) | – | (0.60 | ) | 10.79 | 13.47 | 397,303 | 0.59 | 0.72 | 5.46 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.49 | 0.27 | 0.32 | 0.59 | (0.27 | ) | – | (0.27 | ) | 7.81 | 8.01 | 9 | 0.50 | (e) | 0.55 | (e) | 7.09 | (e) | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.75 | 0.52 | (2.21 | ) | (1.69 | ) | (0.57 | ) | – | (0.57 | ) | 7.49 | (17.97 | ) | 63 | 0.59 | 0.62 | 5.91 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 9.27 | 0.50 | 0.58 | 1.08 | (0.60 | ) | – | (0.60 | ) | 9.75 | 11.89 | 78 | 0.59 | 0.60 | 5.16 | 53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.79 | 0.62 | (1.55 | ) | (0.93 | ) | (0.59 | ) | – | (0.59 | ) | 9.27 | (8.63 | ) | 85 | 0.59 | 0.63 | 6.36 | 117 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.08 | 0.57 | 0.74 | 1.31 | (0.60 | ) | – | (0.60 | ) | 10.79 | 13.35 | 104 | 0.59 | 0.68 | 5.46 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 7.49 | 0.27 | 0.32 | 0.59 | (0.27 | ) | – | (0.27 | ) | 7.81 | 8.02 | 49,814 | 0.46 | (e) | 0.48 | (e) | 7.13 | (e) | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 9.76 | 0.52 | (2.22 | ) | (1.70 | ) | (0.57 | ) | – | (0.57 | ) | 7.49 | (18.01 | ) | 50,310 | 0.54 | 0.55 | 5.96 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 9.27 | 0.51 | 0.59 | 1.10 | (0.61 | ) | – | (0.61 | ) | 9.76 | 12.05 | 64,850 | 0.54 | 0.55 | 5.21 | 53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.79 | 0.62 | (1.55 | ) | (0.93 | ) | (0.59 | ) | – | (0.59 | ) | 9.27 | (8.59 | ) | 65,618 | 0.53 | 0.54 | 6.42 | 117 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 10.07 | 0.57 | 0.75 | 1.32 | (0.60 | ) | – | (0.60 | ) | 10.79 | 13.47 | 59,569 | 0.59 | 0.60 | 5.46 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
(c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the year ended October 31, 2020, the portfolio turnover calculation excludes the value of securities purchased of $1,279,950,104 in connection with the acquisition of Invesco Oppenheimer Capital Income Fund and Invesco Oppenheimer Global Multi-Asset Income Fund into the Fund. |
(d) | The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.23% for Class A for the six months ended April 30, 2023 and for the years ended October 31, 2022, 2021 and 2020. |
(e) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
32 | Invesco Multi-Asset Income Fund |
April 30, 2023
(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 eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and
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unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction of the cost of the related investment. These recharacterizations are reflected in the accompanying financial statements.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | 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.
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 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 based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
J. | Equity-Linked Notes – The Fund may invest in Equity-Linked Notes (ELNs). ELNs are hybrid derivative-type instruments, in a single note form, that are specially designed to combine the characteristics of one or more reference securities (such as a single stock, an exchange traded fund, exchange-traded note, or an index or basket of securities (underlying securities)) and a related equity derivative, such as a put or call option. Generally, when purchasing an ELN, the Fund pays the counterparty the current value of the underlying securities plus a commission. Upon the maturity of the note, the Fund generally receives the par value of the note plus a return based on the appreciation of the underlying securities. Investments in ELNs possess the risks associated with the underlying securities, such |
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as management risk, market risk and, as applicable, foreign securities and currency risks. In addition, as a note, ELNs are also subject to certain debt securities risks, such as interest rate and credit risk. An investment in an ELN also bears the risk that the ELN issuer will default or become bankrupt. In such an event, the Fund may have difficulty being repaid, or fail to be repaid, the principal amount of, or income from, its investment. As the holder of an ELN, the Fund generally has no rights to the underlying securities, including no voting rights or rights to receive dividends. Should the prices of the underlying securities move in an unexpected manner, the Fund may not achieve the anticipated benefits of its ELN investments, and it may realize losses, which could be significant and could include the Fund’s entire principal investment.
K. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, the Fund paid the Adviser $3,284 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
L. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the 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.
M. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the 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.
N. | 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. |
O. | 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 |
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agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of April 30, 2023, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
P. | 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. |
R. | 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’ claims. Junk bonds are less liquid than investment grade debt securities and their prices tend to be more volatile. |
Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility
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and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
First $500 million | 0.500 | % | ||
Next $500 million | 0.450 | % | ||
Next $500 million | 0.400 | % | ||
Over $1.5 billion | 0.390 | % |
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.46%.
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).
Effective March 1, 2023, through at least February 29, 2024, the Adviser has contractually agreed to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.90%, 1.65%, 1.15%, 0.65%, 0.65% and 0.65%, respectively, of the Fund’s average daily net assets. Prior to March 1, 2023, the Adviser has contractually agreed, through February 28, 2023, 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, 2024. 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 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, 2025, 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, 2023, the Adviser waived advisory fees of $107,045 and reimbursed class level expenses of $239,891, $22,829, $6,702, $45,606, $9 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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $39,308 in front-end sales commissions from the sale of Class A shares and $631 and $1,207 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of Invesco.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - Prices are determined using quoted prices in an active market for identical assets.
37 | Invesco Multi-Asset Income Fund |
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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | 280,783 | $ | 367,403,490 | $0 | $ | 367,684,273 | |||||||||
| ||||||||||||||||
Equity Linked Notes | – | 308,775,757 | – | 308,775,757 | ||||||||||||
| ||||||||||||||||
U.S. Treasury Securities | – | 252,569,762 | – | 252,569,762 | ||||||||||||
| ||||||||||||||||
Preferred Stocks | 78,192,662 | – | – | 78,192,662 | ||||||||||||
| ||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | – | 10,289,723 | – | 10,289,723 | ||||||||||||
| ||||||||||||||||
Asset-Backed Securities | – | 41,989 | – | 41,989 | ||||||||||||
| ||||||||||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | – | – | – | – | ||||||||||||
| ||||||||||||||||
Money Market Funds | 195,231,387 | 36,305,248 | – | 231,536,635 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 273,704,832 | 975,385,969 | 0 | 1,249,090,801 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 4,570,586 | – | – | 4,570,586 | ||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 4,719 | – | 4,719 | ||||||||||||
| ||||||||||||||||
4,570,586 | 4,719 | – | 4,575,305 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | (3,031,902 | ) | – | – | (3,031,902 | ) | ||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (268,232 | ) | – | (268,232 | ) | ||||||||||
| ||||||||||||||||
Swap Agreements | – | (4,110 | ) | – | (4,110 | ) | ||||||||||
| ||||||||||||||||
(3,031,902 | ) | (272,342 | ) | – | (3,304,244 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | 1,538,684 | (267,623 | ) | – | 1,271,061 | |||||||||||
| ||||||||||||||||
Total Investments | $ | 275,243,516 | $ | 975,118,346 | $0 | $ | 1,250,361,862 | |||||||||
|
* | Forward foreign currency contracts, futures contracts and swap agreements are valued at unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an 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, 2023:
Value | ||||||||||||||||
|
|
| ||||||||||||||
Derivative Assets | Currency Risk | Equity Risk | Interest Rate Risk | Total | ||||||||||||
| ||||||||||||||||
Unrealized appreciation on futures contracts –Exchange-Traded | $ | – | $ | 3,716,321 | $ | 854,265 | $ | 4,570,586 | ||||||||
| ||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | 4,719 | – | – | 4,719 | ||||||||||||
| ||||||||||||||||
Total Derivative Assets | 4,719 | 3,716,321 | 854,265 | 4,575,305 | ||||||||||||
| ||||||||||||||||
Derivatives not subject to master netting agreements | – | (3,716,321 | ) | (854,265 | ) | (4,570,586 | ) | |||||||||
| ||||||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 4,719 | $ | – | $ | – | $ | 4,719 | ||||||||
|
38 | Invesco Multi-Asset Income Fund |
Value | ||||||||||||||||||||
Derivative Liabilities | Credit Risk | Currency Risk | Equity Risk | Interest Rate Risk | Total | |||||||||||||||
| ||||||||||||||||||||
Unrealized depreciation on futures contracts – Exchange-Traded | $ | – | $ | – | $ | (319,789 | ) | $ | (2,712,113 | ) | $ | (3,031,902 | ) | |||||||
| ||||||||||||||||||||
Unrealized depreciation on swap agreements – Centrally Cleared(a) | (4,110 | ) | – | – | – | (4,110 | ) | |||||||||||||
| ||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | – | (268,232 | ) | – | – | (268,232 | ) | |||||||||||||
| ||||||||||||||||||||
Total Derivative Liabilities | (4,110 | ) | (268,232 | ) | (319,789 | ) | (2,712,113 | ) | (3,304,244 | ) | ||||||||||
| ||||||||||||||||||||
Derivatives not subject to master netting agreements | 4,110 | – | 319,789 | 2,712,113 | 3,036,012 | |||||||||||||||
| ||||||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | – | $ | (268,232 | ) | $ | – | $ | – | $ | (268,232 | ) | ||||||||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of April 30, 2023.
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. | $2,399 | $ (1,193 | ) | $ | 1,206 | $– | $– | $ | 1,206 | |||||||||||
| ||||||||||||||||||||
Goldman Sachs International | 1,556 | – | 1,556 | – | – | 1,556 | ||||||||||||||
| ||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 764 | (2,443 | ) | (1,679 | ) | – | – | (1,679 | ) | |||||||||||
| ||||||||||||||||||||
State Street Bank & Trust Co. | – | (262,722 | ) | (262,722 | ) | – | – | (262,722 | ) | |||||||||||
| ||||||||||||||||||||
UBS AG | – | (1,874 | ) | (1,874 | ) | – | – | (1,874 | ) | |||||||||||
| ||||||||||||||||||||
Total | $4,719 | $(268,232 | ) | $ | (263,513 | ) | $– | $– | $ | (263,513 | ) | |||||||||
|
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 | $ | - | $ | (525,007 | ) | $ | - | $ | - | $ | (525,007 | ) | ||||||||
| ||||||||||||||||||||
Futures contracts | - | - | (9,353,154 | ) | (1,121,908 | ) | (10,475,062 | ) | ||||||||||||
| ||||||||||||||||||||
Swap agreements | 188,002 | - | - | - | 188,002 | |||||||||||||||
| ||||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||||||
Forward foreign currency contracts | - | (368,589 | ) | - | - | (368,589 | ) | |||||||||||||
| ||||||||||||||||||||
Futures contracts | - | - | 9,175,455 | (5,166,668 | ) | 4,008,787 | ||||||||||||||
| ||||||||||||||||||||
Swap agreements | (62,518 | ) | - | - | - | (62,518 | ) | |||||||||||||
| ||||||||||||||||||||
Total | $ | 125,484 | $ | (893,596 | ) | $ | (177,699 | ) | $ | (6,288,576 | ) | $ | (7,234,387 | ) | ||||||
|
The table below summarizes the average notional value of derivatives held during the period.
Forward | ||||||||||
Foreign Currency | Futures | Swap | ||||||||
Contracts | Contracts | Agreements | ||||||||
Average notional value | $13,306,411 | $292,356,884 | $2,147,185 |
NOTE 5–Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the six months ended April 30, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $29,654.
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.
39 | Invesco Multi-Asset Income Fund |
NOTE 7–Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||||||||||
| ||||||||||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||||||||||
| ||||||||||||||||||||
Not subject to expiration | $ | 432,117,662 | $ | 161,448,780 | $ | 593,566,442 | ||||||||||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $167,746,331 and $175,533,618, 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 | $ | 15,642,181 | ||
| ||||
Aggregate unrealized (depreciation) of investments | (106,122,749 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $ | (90,480,568) | ||
|
Cost of investments for tax purposes is $1,340,842,430.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 1,932,090 | $ | 14,936,830 | 5,403,012 | $ | 48,658,733 | ||||||||||
| ||||||||||||||||
Class C | 346,075 | 2,673,155 | 767,584 | 6,837,877 | ||||||||||||
| ||||||||||||||||
Class R | 257,054 | 1,987,609 | 557,747 | 4,911,397 | ||||||||||||
| ||||||||||||||||
Class Y | 2,381,029 | 18,493,170 | 4,587,419 | 40,884,204 | ||||||||||||
| ||||||||||||||||
Class R5 | - | 21 | - | - | ||||||||||||
| ||||||||||||||||
Class R6 | 207,716 | 1,592,603 | 462,081 | 3,952,822 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 3,333,660 | 25,727,247 | 6,454,141 | 55,750,272 | ||||||||||||
| ||||||||||||||||
Class C | 236,836 | 1,827,305 | 547,183 | 4,751,803 | ||||||||||||
| ||||||||||||||||
Class R | 100,705 | 778,012 | 188,054 | 1,623,583 | ||||||||||||
| ||||||||||||||||
Class Y | 514,785 | 3,976,604 | 1,161,909 | 10,077,631 | ||||||||||||
| ||||||||||||||||
Class R5 | 170 | 1,318 | 459 | 3,957 | ||||||||||||
| ||||||||||||||||
Class R6 | 223,340 | 1,725,092 | 434,745 | 3,752,196 | ||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 800,012 | 6,165,438 | 1,720,539 | 14,795,155 | ||||||||||||
| ||||||||||||||||
Class C | (800,052 | ) | (6,165,438 | ) | (1,720,805 | ) | (14,795,155 | ) | ||||||||
|
40 | Invesco Multi-Asset Income Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (9,354,388 | ) | $ | (72,228,025 | ) | (20,542,216 | ) | $ | (181,629,391 | ) | ||||||
| ||||||||||||||||
Class C | (1,285,499 | ) | (9,898,166 | ) | (3,440,536 | ) | (30,360,377 | ) | ||||||||
| ||||||||||||||||
Class R | (279,095 | ) | (2,155,510 | ) | (2,454,515 | ) | (23,198,261 | ) | ||||||||
| ||||||||||||||||
Class Y | (5,272,815 | ) | (40,608,835 | ) | (10,817,953 | ) | (94,870,070 | ) | ||||||||
| ||||||||||||||||
Class R5 | (7,400 | ) | (56,467 | ) | - | - | ||||||||||
| ||||||||||||||||
Class R6 | (766,788 | ) | (5,911,008 | ) | (829,639 | ) | (7,039,433 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (7,432,565 | ) | $ | (57,139,045 | ) | (17,520,791 | ) | $ | (155,893,057 | ) | ||||||
|
(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, 4% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser.
41 | 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, 2022 through April 30, 2023.
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.
ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Expense Ratio2 | ||||||||||
Beginning Account Value (11/01/22) | Ending Account Value (04/30/23)1 | Expenses Paid During Period2,3 | Ending Account Value (04/30/23) | Expenses Paid During Period2,4 | ||||||||
Class A | $1,000.00 | $1,078.80 | $3.76 | $1,021.17 | $3.66 | 0.73% | ||||||
Class C | 1,000.00 | 1,073.30 | 7.71 | 1,017.36 | 7.50 | 1.50 | ||||||
Class R | 1,000.00 | 1,077.30 | 5.15 | 1,019.84 | 5.01 | 1.00 | ||||||
Class Y | 1,000.00 | 1,080.00 | 2.58 | 1,022.32 | 2.51 | 0.50 | ||||||
Class R5 | 1,000.00 | 1,080.10 | 2.58 | 1,022.32 | 2.51 | 0.50 | ||||||
Class R6 | 1,000.00 | 1,080.20 | 2.37 | 1,022.51 | 2.31 | 0.46 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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 | Effective March 1, 2023, the Adviser has contractually agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.90%, 1.65%, 1.15%, 0.65%, 0.65% and 0.65% of average daily net assets, respectively. The annualized expense ratios restated as if these agreements had been in effect throughout the entire most recent fiscal half year are 0.86%, 1.63%, 1.13%, 0.63%, 0.60% and 0.53% for of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
3 | The actual expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent half year are $4.43, $8.38, $5.82, $3.25, $3.09 and $2.73 for of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
4 | The hypothetical expenses paid restated as if the changes discussed above had been in effect throughout the entire most recent half year are $4.31, $8.15, $5.66, $3.16, $3.01 and $2.66 for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
42 | Invesco Multi-Asset Income Fund |
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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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/ corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | MAIN-SAR-1 |
Semiannual Report to Shareholders | April 30, 2023 |
Invesco World Bond Factor Fund
Nasdaq:
A: AUBAX ∎ C: AUBCX ∎ Y: AUBYX ∎ R5: AUBIX ∎ R6: AUBFX
2 | Fund Performance | |
4 | Liquidity Risk Management Program | |
5 | Schedule of Investments | |
16 | Financial Statements | |
19 | Financial Highlights | |
20 | Notes to Financial Statements | |
29 | Fund Expenses |
For the most current month-end Fund performance and commentary, please visit invesco.com/performance.
Unless otherwise noted, all data is provided by Invesco.
This report must be accompanied or preceded by a currently effective Fund prospectus, which contains more complete information, including sales charges and expenses. Investors should read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Performance summary
| ||||
Fund vs. Indexes |
| |||
Cumulative total returns, 10/31/22 to 4/30/23, 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 | 8.96 | % | ||
Class C Shares | 8.57 | |||
Class Y Shares | 9.10 | |||
Class R5 Shares | 8.90 | |||
Class R6 Shares | 9.21 | |||
Bloomberg Global Aggregate Index▼ (Broad Market/Style-Specific Index) | 8.92 | |||
Lipper Global Income Funds Index∎ (Peer Group Index) | 6.58 | |||
Source(s): ▼RIMES Technologies Corp.; ∎Lipper Inc.
The Bloomberg Global Aggregate Index is an unmanaged index considered representative of global investment-grade, fixed-income markets. The Lipper 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 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 visiting invesco.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, visit blog.invesco.us.com, where many of Invesco’s investment professionals share their insights about market and economic news and trends.
2 | Invesco World Bond Factor Fund |
Average Annual Total Returns |
| |||
As of 4/30/23, including maximum applicable sales charges |
| |||
Class A Shares | ||||
Inception (3/31/06) | 1.91 | % | ||
10 Years | -0.29 | |||
5 Years | -1.64 | |||
1 Year | -6.71 | |||
Class C Shares | ||||
Inception (3/31/06) | 1.81 | % | ||
10 Years | -0.46 | |||
5 Years | -1.52 | |||
1 Year | -4.29 | |||
Class Y Shares | ||||
Inception (10/3/08) | 1.82 | % | ||
10 Years | 0.39 | |||
5 Years | -0.54 | |||
1 Year | -2.45 | |||
Class R5 Shares | ||||
Inception (3/31/06) | 2.37 | % | ||
10 Years | 0.31 | |||
5 Years | -0.67 | |||
1 Year | -2.59 | |||
Class R6 Shares | ||||
Inception (9/24/12) | 0.09 | % | ||
10 Years | 0.41 | |||
5 Years | -0.51 | |||
1 Year | -2.34 |
The performance data quoted represent past performance and cannot guarantee 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.
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.
3 | Invesco World Bond Factor Fund |
Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Fund has adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Fund’s liquidity risk, which is the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Board of Trustees of the Fund (the “Board”) has appointed Invesco Advisers, Inc. (“Invesco”), the Fund’s investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco.
As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Fund’s liquidity risk that takes into account, as relevant to the Fund’s liquidity risk: (1) the Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Fund during both normal and reasonably foreseeable stressed conditions; and (3) the Fund’s holdings of cash and cash equivalents and any borrowing arrangements. The Liquidity Rule also requires the classification of the Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. The Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, the Fund may not acquire an investment if, immediately after the acquisition, over 15% of the Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of the Fund’s assets.
At a meeting held on March 17, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.
The Report stated, in relevant part, that during the Program Reporting Period:
∎ | The Program, as adopted and implemented, remained reasonably designed to assess and manage the Fund’s liquidity risk and was operated effectively to achieve that goal; |
∎ | The Fund’s investment strategy remained appropriate for an open-end fund; |
∎ | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
∎ | The Fund did not breach the 15% limit on Illiquid Investments; and |
∎ | The Fund primarily held Highly Liquid Investments and therefore has not adopted an HLIM. |
4 | Invesco World Bond Factor Fund |
April 30, 2023
(Unaudited)
Principal Amount | Value | |||||||||||
| ||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes–54.68%(a) |
| |||||||||||
Australia–1.09% | ||||||||||||
Australia Government Bond, | AUD | 18,000 | $ | 7,633 | ||||||||
| ||||||||||||
BHP Billiton Finance Ltd., | EUR | 100,000 | 103,572 | |||||||||
| ||||||||||||
Macquarie Group Ltd., 0.95%, | EUR | 100,000 | 84,410 | |||||||||
| ||||||||||||
Scentre Group Trust 1/Scentre Group Trust 2, 1.75%, 04/11/2028(b) | EUR | 100,000 | 95,905 | |||||||||
| ||||||||||||
291,520 | ||||||||||||
| ||||||||||||
Canada–1.25% | ||||||||||||
Canadian Government Bond, | ||||||||||||
3.00%, 11/01/2024 | CAD | 149,000 | 108,508 | |||||||||
| ||||||||||||
2.00%, 12/01/2051 | CAD | 199,000 | 119,289 | |||||||||
| ||||||||||||
Canadian Imperial Bank of Commerce, 0.38%, 05/03/2024(b) | EUR | 100,000 | 106,476 | |||||||||
| ||||||||||||
334,273 | ||||||||||||
| ||||||||||||
France–6.67% | ||||||||||||
Banque Federative du Credit Mutuel S.A., 3.00%, 05/21/2024(b) | EUR | 100,000 | 108,796 | |||||||||
| ||||||||||||
BNP Paribas S.A., | ||||||||||||
2.75%, 07/25/2028(b)(c) | EUR | 100,000 | 103,846 | |||||||||
| ||||||||||||
1.13%, 01/15/2032(b)(c) | EUR | 100,000 | 93,970 | |||||||||
| ||||||||||||
BPCE S.A., 1.00%, 01/14/2032(b) | EUR | 100,000 | 85,665 | |||||||||
| ||||||||||||
Caisse Nationale de Reassurance Mutuelle Agricole Groupama, | EUR | 100,000 | 111,247 | |||||||||
| ||||||||||||
Credit Agricole S.A., 1.00%, 07/03/2029(b) | EUR | 100,000 | 94,190 | |||||||||
| ||||||||||||
French Republic Government Bond OAT, 0.00%, 11/25/2030(b) | EUR | 1,000,000 | 900,425 | |||||||||
| ||||||||||||
Holding d’Infrastructures de Transport S.A.S.U., 1.63%, 09/18/2029(b) | EUR | 100,000 | 94,450 | |||||||||
| ||||||||||||
Imerys S.A., 1.00%, 07/15/2031(b) | EUR | 100,000 | 83,189 | |||||||||
| ||||||||||||
Mercialys S.A., 4.63%, 07/07/2027(b) | EUR | 100,000 | 104,969 | |||||||||
| ||||||||||||
1,780,747 | ||||||||||||
| ||||||||||||
Germany–7.71% | ||||||||||||
Bayer AG, 3.13%, | EUR | 100,000 | 95,283 | |||||||||
| ||||||||||||
BMW Finance N.V., 0.75%, 07/12/2024(b) | EUR | 50,000 | 53,578 | |||||||||
| ||||||||||||
Bundesobligation, Series 186, 1.30%, 10/15/2027(b) | EUR | 292,833 | 308,804 | |||||||||
|
Principal Amount | Value | |||||||||||
| ||||||||||||
Germany–(continued) | ||||||||||||
Bundesrepublik Deutschland Bundesanleihe, | ||||||||||||
0.00%, 08/15/2030(b) | EUR | 321,675 | $ | 301,604 | ||||||||
| ||||||||||||
0.00%, 08/15/2050(b) | EUR | 192,158 | 113,051 | |||||||||
| ||||||||||||
Bundesschatzanweisungen, 2.20%, 12/12/2024(b) | EUR | 438,000 | 478,199 | |||||||||
| ||||||||||||
Commerzbank AG, 0.63%, 08/28/2024(b) | EUR | 70,000 | 73,938 | |||||||||
| ||||||||||||
Heraeus Finance GmbH, 2.63%, 06/09/2027(b) | EUR | 100,000 | 105,030 | |||||||||
| ||||||||||||
HOCHTIEF AG, 0.63%, 04/26/2029(b) | EUR | 50,000 | 44,158 | |||||||||
| ||||||||||||
Merck Financial Services GmbH, 0.13%, 07/16/2025(b) | EUR | 100,000 | 102,915 | |||||||||
| ||||||||||||
Volkswagen International Finance N.V., 1.88%, 03/30/2027(b) | EUR | 100,000 | 101,681 | |||||||||
| ||||||||||||
Volkswagen Leasing GmbH, 0.63%, 07/19/2029(b) | EUR | 100,000 | 88,615 | |||||||||
| ||||||||||||
Vonovia Finance B.V., 1.25%, 12/06/2024(b) | EUR | 100,000 | 104,976 | |||||||||
| ||||||||||||
Wintershall Dea Finance B.V., 1.82%, 09/25/2031(b) | EUR | 100,000 | 87,477 | |||||||||
| ||||||||||||
2,059,309 | ||||||||||||
| ||||||||||||
Indonesia–0.65% | ||||||||||||
Indonesia Treasury Bond, | IDR | 2,546,000,000 | 174,687 | |||||||||
| ||||||||||||
Italy–0.36% | ||||||||||||
Enel Finance International N.V., | EUR | 100,000 | 94,781 | |||||||||
| ||||||||||||
Japan–8.80% | ||||||||||||
Japan Government Bond, | ||||||||||||
Series 146, 0.10%, 12/20/2025 | JPY | 108,100,000 | 796,520 | |||||||||
| ||||||||||||
Series 155, 0.30%, 12/20/2027 | JPY | 51,050,000 | 378,463 | |||||||||
| ||||||||||||
Series 361, 0.10%, 12/20/2030 | JPY | 77,450,000 | 561,205 | |||||||||
| ||||||||||||
Series 69, 0.70%, 12/20/2050 | JPY | 80,800,000 | 512,976 | |||||||||
| ||||||||||||
Nidec Corp., 0.05%, 03/30/2026(b) | EUR | 100,000 | 99,148 | |||||||||
| ||||||||||||
2,348,312 | ||||||||||||
| ||||||||||||
Luxembourg–0.31% | ||||||||||||
AXA Logistics Europe Master | EUR | 100,000 | 83,584 | |||||||||
| ||||||||||||
Malaysia–0.18% | ||||||||||||
Malaysia Government Bond, | MYR | 222,000 | 48,016 | |||||||||
| ||||||||||||
Mexico–1.15% | ||||||||||||
Mexican Bonos, Series M 20, | MXN | 5,600,000 | 307,990 | |||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 | Invesco World Bond Factor Fund |
Principal Amount | Value | |||||||||||
| ||||||||||||
New Zealand–4.74% | ||||||||||||
Fonterra Co-operative Group Ltd., 0.75%, 11/08/2024(b) | EUR | 150,000 | $ | 157,007 | ||||||||
| ||||||||||||
New Zealand Government Bond, | ||||||||||||
Series 0526, 0.50%, 05/15/2026 | NZD | 1,337,000 | 740,024 | |||||||||
| ||||||||||||
Series 0532, 2.00%, 05/15/2032 | NZD | 442,000 | 230,863 | |||||||||
| ||||||||||||
Series 425, 2.75%, 04/15/2025(b) | NZD | 230,000 | 137,463 | |||||||||
| ||||||||||||
1,265,357 | ||||||||||||
| ||||||||||||
Norway–3.91% | ||||||||||||
Norway Government Bond, | ||||||||||||
Series 477, 1.75%, 03/13/2025(b) | NOK | 1,348,000 | 122,800 | |||||||||
| ||||||||||||
Series 479, 1.75%, 02/17/2027(b) | NOK | 7,317,000 | 652,671 | |||||||||
| ||||||||||||
Series 484, 2.13%, 05/18/2032(b) | NOK | 3,091,000 | 267,160 | |||||||||
| ||||||||||||
1,042,631 | ||||||||||||
| ||||||||||||
Poland–1.04% | ||||||||||||
Energa Finance AB, 2.13%, | EUR | 100,000 | 100,945 | |||||||||
| ||||||||||||
Republic of Poland Government Bond, | PLN | 775,000 | 176,328 | |||||||||
| ||||||||||||
277,273 | ||||||||||||
| ||||||||||||
South Korea–1.02% | ||||||||||||
Korea Treasury Bond, | ||||||||||||
Series 2512, 2.25%, 12/10/2025 | KRW | 176,130,000 | 128,122 | |||||||||
| ||||||||||||
Series 3012, 1.50%, 12/10/2030 | KRW | 112,340,000 | 73,553 | |||||||||
| ||||||||||||
Series 5003, 1.50%, 03/10/2050 | KRW | 140,830,000 | 70,437 | |||||||||
| ||||||||||||
272,112 | ||||||||||||
| ||||||||||||
Spain–0.39% | ||||||||||||
Banco Bilbao Vizcaya Argentaria S.A., 0.38%, 10/02/2024(b) | EUR | 100,000 | 105,181 | |||||||||
| ||||||||||||
Sweden–3.19% | ||||||||||||
EQT AB, 2.38%, 04/06/2028(b) | EUR | 100,000 | 97,545 | |||||||||
| ||||||||||||
Swedbank AB, 0.75%, | EUR | 100,000 | 103,686 | |||||||||
| ||||||||||||
Sweden Government Bond, | ||||||||||||
Series 1056, 2.25%, 06/01/2032(b) | SEK | 2,180,000 | 211,272 | |||||||||
| ||||||||||||
Series 1060, 0.75%, 05/12/2028(b) | SEK | 4,275,000 | 384,569 | |||||||||
| ||||||||||||
Telia Co. AB, 3.88%, 10/01/2025(b) | EUR | 50,000 | 55,540 | |||||||||
| ||||||||||||
852,612 | ||||||||||||
| ||||||||||||
Switzerland–5.20% | ||||||||||||
Cloverie PLC for Zurich Insurance Co. Ltd., 1.50%, | EUR | 100,000 | 99,919 | |||||||||
| ||||||||||||
Credit Suisse AG, 0.25%, | EUR | 100,000 | 98,436 | |||||||||
|
Principal Amount | Value | |||||||||||
| ||||||||||||
Switzerland–(continued) | ||||||||||||
Swiss Confederation Government Bond, | ||||||||||||
1.50%, 07/24/2025(b) | CHF | 108,000 | $ | 122,105 | ||||||||
| ||||||||||||
3.25%, 06/27/2027(b) | CHF | 590,000 | 721,525 | |||||||||
| ||||||||||||
0.50%, 06/27/2032(b) | CHF | 305,000 | 326,654 | |||||||||
| ||||||||||||
4.00%, 01/06/2049(b) | CHF | 10,000 | 18,411 | |||||||||
| ||||||||||||
1,387,050 | ||||||||||||
| ||||||||||||
Thailand–0.17% | ||||||||||||
Thailand Government Bond, 1.88%, 06/17/2049 | THB | 1,949,000 | 45,057 | |||||||||
| ||||||||||||
United Kingdom–5.52% | ||||||||||||
B.A.T. International Finance PLC, 2.25%, 01/16/2030(b) | EUR | 100,000 | 92,033 | |||||||||
| ||||||||||||
BP Capital Markets PLC, 0.90%, 07/03/2024(b) | EUR | 100,000 | 106,966 | |||||||||
| ||||||||||||
CK Hutchison Group Telecom Finance S.A., 1.50%, 10/17/2031(b) | EUR | 100,000 | 87,210 | |||||||||
| ||||||||||||
easyJet FinCo B.V., 1.88%, 03/03/2028(b) | EUR | 100,000 | 96,851 | |||||||||
| ||||||||||||
Lloyds Banking Group PLC, 0.50%, 11/12/2025(b)(c) | EUR | 100,000 | 104,745 | |||||||||
| ||||||||||||
NatWest Markets PLC, 1.00%, 05/28/2024(b) | EUR | 100,000 | 106,868 | |||||||||
| ||||||||||||
United Kingdom Gilt, | ||||||||||||
0.63%, 06/07/2025(b) | GBP | 100,000 | 117,774 | |||||||||
| ||||||||||||
0.13%, 01/31/2028(b) | GBP | 324,000 | 345,089 | |||||||||
| ||||||||||||
3.25%, 01/31/2033(b) | GBP | 188,000 | 227,336 | |||||||||
| ||||||||||||
0.63%, 10/22/2050(b) | GBP | 342,946 | 188,822 | |||||||||
| ||||||||||||
1,473,694 | ||||||||||||
| ||||||||||||
United States–1.33% | ||||||||||||
AGCO International Holdings B.V., 0.80%, 10/06/2028(b) | EUR | 100,000 | 92,180 | |||||||||
| ||||||||||||
Altria Group, Inc., 3.13%, 06/15/2031 | EUR | 100,000 | 94,985 | |||||||||
| ||||||||||||
Goldman Sachs Group, Inc. (The), 0.13%, 08/19/2024(b) | EUR | 60,000 | 63,133 | |||||||||
| ||||||||||||
Philip Morris International, Inc., 2.88%, 05/14/2029 | EUR | 100,000 | 105,355 | |||||||||
| ||||||||||||
355,653 | ||||||||||||
| ||||||||||||
Total Non-U.S. Dollar Denominated Bonds & Notes |
| 14,599,839 | ||||||||||
| ||||||||||||
U.S. Dollar Denominated Bonds & Notes–23.39% |
| |||||||||||
Australia–0.23% | ||||||||||||
Westpac Banking Corp., | ||||||||||||
2.35%, 02/19/2025 | $ | 30,000 | 28,801 | |||||||||
| ||||||||||||
3.35%, 03/08/2027 | 35,000 | 33,676 | ||||||||||
| ||||||||||||
62,477 | ||||||||||||
| ||||||||||||
Brazil–0.08% | ||||||||||||
Suzano Austria GmbH, 3.75%, 01/15/2031 | 25,000 | 21,251 | ||||||||||
| ||||||||||||
Canada–0.83% | ||||||||||||
Brookfield Finance, Inc., 4.85%, 03/29/2029 | 90,000 | 88,642 | ||||||||||
| ||||||||||||
Magna International Inc., 5.50%, 03/21/2033 | 20,000 | 20,747 | ||||||||||
| ||||||||||||
Magna International, Inc., 3.63%, 06/15/2024 | 52,000 | 51,134 | ||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 | Invesco World Bond Factor Fund |
Principal Amount | Value | |||||||
| ||||||||
Canada–(continued) | ||||||||
TransCanada PipeLines Ltd., 4.88%, 01/15/2026 | $ | 60,000 | $ | 60,099 | ||||
| ||||||||
220,622 | ||||||||
| ||||||||
France–0.09% | ||||||||
AXA S.A., 8.60%, 12/15/2030 | 20,000 | 24,224 | ||||||
| ||||||||
Japan–0.25% | ||||||||
Mitsubishi UFJ Financial Group, Inc., 3.74%, 03/07/2029 | 25,000 | 23,557 | ||||||
| ||||||||
Sumitomo Mitsui Financial Group, Inc., | ||||||||
3.01%, 10/19/2026 | 25,000 | 23,433 | ||||||
| ||||||||
2.14%, 09/23/2030 | 25,000 | 20,097 | ||||||
| ||||||||
67,087 | ||||||||
| ||||||||
Luxembourg–0.13% | ||||||||
ArcelorMittal S.A., 6.75%, | 35,000 | 35,466 | ||||||
| ||||||||
Mexico–0.55% | ||||||||
America Movil S.A.B. de C.V., | ||||||||
6.38%, 03/01/2035 | 35,000 | 39,038 | ||||||
| ||||||||
6.13%, 03/30/2040 | 100,000 | 108,359 | ||||||
| ||||||||
147,397 | ||||||||
| ||||||||
Netherlands–0.59% | ||||||||
Cooperatieve Rabobank U.A., 5.25%, | 35,000 | 37,450 | ||||||
| ||||||||
Koninklijke KPN N.V., 8.38%, 10/01/2030 | 30,000 | 35,696 | ||||||
| ||||||||
Shell International Finance B.V., | ||||||||
2.38%, 11/07/2029 | 35,000 | 31,324 | ||||||
| ||||||||
6.38%, 12/15/2038 | 45,000 | 52,437 | ||||||
| ||||||||
156,907 | ||||||||
| ||||||||
Switzerland–0.15% | ||||||||
Credit Suisse USA, Inc., 7.13%, | 35,000 | 38,811 | ||||||
| ||||||||
United Kingdom–2.89% | ||||||||
B.A.T Capital Corp., | ||||||||
3.56%, 08/15/2027 | 35,000 | 32,782 | ||||||
| ||||||||
2.26%, 03/25/2028 | 30,000 | 26,062 | ||||||
| ||||||||
4.74%, 03/16/2032 | 25,000 | 23,378 | ||||||
| ||||||||
4.54%, 08/15/2047 | 15,000 | 11,216 | ||||||
| ||||||||
5.28%, 04/02/2050 | 75,000 | 62,358 | ||||||
| ||||||||
Barclays PLC, 4.84%, 05/09/2028 | 200,000 | 189,915 | ||||||
| ||||||||
BP Capital Markets PLC, 3.72%, 11/28/2028 | 35,000 | 34,288 | ||||||
| ||||||||
British Airways Pass-Through Trust, Series 2019-1, Class A, 3.35%, 06/15/2029(b) | 41,984 | 37,757 | ||||||
| ||||||||
British Telecommunications PLC, 9.63%, 12/15/2030 | 20,000 | 25,189 | ||||||
| ||||||||
HSBC Holdings PLC, 4.58%, 06/19/2029(c) | 200,000 | 192,223 | ||||||
| ||||||||
Mead Johnson Nutrition Co., 4.13%, 11/15/2025 | 95,000 | 93,564 | ||||||
| ||||||||
nVent Finance S.a.r.l., 4.55%, 04/15/2028 | 25,000 | 24,128 | ||||||
| ||||||||
Reynolds American, Inc., 5.70%, 08/15/2035 | 18,000 | 17,265 | ||||||
| ||||||||
770,125 | ||||||||
|
Principal Amount | Value | |||||||
| ||||||||
United States–17.60% | ||||||||
3M Co., | ||||||||
5.70%, 03/15/2037 | $ | 65,000 | $ | 71,801 | ||||
| ||||||||
3.63%, 10/15/2047 | 25,000 | 19,649 | ||||||
| ||||||||
Adventist Health System, 2.95%, | 40,000 | 35,692 | ||||||
| ||||||||
Aflac, Inc., 1.13%, 03/15/2026 | 50,000 | 45,755 | ||||||
| ||||||||
Allstate Corp. (The), 3.28%, | 20,000 | 19,176 | ||||||
| ||||||||
Altria Group, Inc., | ||||||||
4.80%, 02/14/2029 | 74,000 | 73,524 | ||||||
| ||||||||
3.40%, 05/06/2030 | 40,000 | 35,694 | ||||||
| ||||||||
2.45%, 02/04/2032 | 45,000 | 35,831 | ||||||
| ||||||||
5.95%, 02/14/2049 | 10,000 | 9,452 | ||||||
| ||||||||
Amazon.com, Inc., | ||||||||
4.25%, 08/22/2057 | 40,000 | 36,383 | ||||||
| ||||||||
3.25%, 05/12/2061 | 45,000 | 33,277 | ||||||
| ||||||||
4.10%, 04/13/2062 | 40,000 | 34,848 | ||||||
| ||||||||
American Express Co., 2.50%, | 45,000 | 43,639 | ||||||
| ||||||||
American Honda Finance Corp., | 20,000 | 19,332 | ||||||
| ||||||||
AmerisourceBergen Corp., | 50,000 | 49,090 | ||||||
| ||||||||
Appalachian Power Co., | 25,000 | 29,580 | ||||||
| ||||||||
Apple, Inc., | ||||||||
1.70%, 08/05/2031 | 40,000 | 33,483 | ||||||
| ||||||||
4.45%, 05/06/2044 | 35,000 | 35,119 | ||||||
| ||||||||
Ares Capital Corp., 3.20%, | 35,000 | 27,153 | ||||||
| ||||||||
Assured Guaranty US Holdings, Inc., | 30,000 | 26,298 | ||||||
| ||||||||
Athene Holding Ltd., 4.13%, | 20,000 | 18,218 | ||||||
| ||||||||
Baker Hughes Holdings LLC, | 20,000 | 19,614 | ||||||
| ||||||||
Bank of America Corp., | ||||||||
4.20%, 08/26/2024 | 70,000 | 69,081 | ||||||
| ||||||||
4.00%, 01/22/2025 | 30,000 | 29,451 | ||||||
| ||||||||
4.45%, 03/03/2026 | 35,000 | 34,504 | ||||||
| ||||||||
2.09%, 06/14/2029(c) | 20,000 | 17,293 | ||||||
| ||||||||
3.85%, 03/08/2037(c) | 40,000 | 34,642 | ||||||
| ||||||||
BGC Partners, Inc., 3.75%, | 36,000 | 34,746 | ||||||
| ||||||||
BlackRock, Inc., 2.10%, | 25,000 | 20,966 | ||||||
| ||||||||
Boeing Co. (The), 6.63%, | 92,000 | 100,741 | ||||||
| ||||||||
Booking Holdings, Inc., 4.63%, | 65,000 | 65,389 | ||||||
| ||||||||
Boston Properties L.P., 3.40%, | 35,000 | 29,748 | ||||||
| ||||||||
Bristol-Myers Squibb Co., | 25,000 | 23,930 | ||||||
| ||||||||
Broadcom, Inc., 4.93%, | 25,000 | 22,839 | ||||||
| ||||||||
California Institute of Technology, 4.70%, 11/01/2111 | 22,000 | 19,913 | ||||||
| ||||||||
Capital One Financial Corp., | 75,000 | 71,597 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 | Invesco World Bond Factor Fund |
Principal Amount | Value | |||||||
| ||||||||
United States–(continued) | ||||||||
CDW LLC/CDW Finance Corp., 3.25%, 02/15/2029 | $ | 30,000 | $ | 25,969 | ||||
| ||||||||
Celanese US Holdings LLC, 6.38%, 07/15/2032(e) | 25,000 | 25,374 | ||||||
| ||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.05%, 03/30/2029 | 59,000 | 57,195 | ||||||
| ||||||||
Cigna Group (The), 4.50%, 02/25/2026 | 55,000 | 54,898 | ||||||
| ||||||||
Cintas Corp. No. 2, 3.70%, 04/01/2027 | 25,000 | 24,501 | ||||||
| ||||||||
Citigroup, Inc., | ||||||||
3.75%, 06/16/2024 | 45,000 | 44,372 | ||||||
| ||||||||
8.13%, 07/15/2039 | 20,000 | 25,878 | ||||||
| ||||||||
CNA Financial Corp., 3.45%, 08/15/2027 | 25,000 | 23,724 | ||||||
| ||||||||
Collins Aerospace, 3.20%, 03/15/2024 | 51,000 | 50,182 | ||||||
| ||||||||
CommonSpirit Health, | ||||||||
2.76%, 10/01/2024 | 30,000 | 29,127 | ||||||
| ||||||||
1.55%, 10/01/2025 | 40,000 | 36,908 | ||||||
| ||||||||
ConocoPhillips Co., 6.95%, 04/15/2029 | 20,000 | 22,600 | ||||||
| ||||||||
Constellation Energy Generation LLC, 6.25%, 10/01/2039 | 25,000 | 26,549 | ||||||
| ||||||||
Corning, Inc., 5.85%, 11/15/2068 | 13,000 | 12,930 | ||||||
| ||||||||
Dell International LLC/EMC Corp., | ||||||||
8.10%, 07/15/2036 | 20,000 | 23,495 | ||||||
| ||||||||
8.35%, 07/15/2046 | 25,000 | 30,837 | ||||||
| ||||||||
Dick’s Sporting Goods, Inc., 4.10%, 01/15/2052 | 25,000 | 17,561 | ||||||
| ||||||||
Dignity Health, 5.27%, 11/01/2064 | 25,000 | 23,870 | ||||||
| ||||||||
DuPont de Nemours, Inc., 4.49%, 11/15/2025 | 15,000 | 14,964 | ||||||
| ||||||||
Emerson Electric Co., 5.25%, 11/15/2039 | 20,000 | 20,914 | ||||||
| ||||||||
Energy Transfer L.P., 4.95%, 05/15/2028 | 35,000 | 34,708 | ||||||
| ||||||||
Enstar Group Ltd., 3.10%, 09/01/2031 | 25,000 | 19,737 | ||||||
| ||||||||
Enterprise Products Operating LLC, 4.15%, 10/16/2028 | 25,000 | 24,625 | ||||||
| ||||||||
EOG Resources, Inc., 4.38%, 04/15/2030 | 15,000 | 15,060 | ||||||
| ||||||||
ERP Operating L.P., 4.15%, 12/01/2028 | 40,000 | 38,924 | ||||||
| ||||||||
Exxon Mobil Corp., 2.44%, 08/16/2029 | 45,000 | 41,249 | ||||||
| ||||||||
Fifth Third Bancorp, 2.38%, 01/28/2025 | 50,000 | 47,078 | ||||||
| ||||||||
General Motors Co., 6.75%, 04/01/2046 | 63,000 | 63,600 | ||||||
| ||||||||
Georgia-Pacific LLC, 8.88%, 05/15/2031 | 15,000 | 18,991 | ||||||
| ||||||||
GLP Capital L.P./GLP Financing II, Inc., 5.30%, 01/15/2029 | 20,000 | 19,313 | ||||||
| ||||||||
Harley-Davidson, Inc., 4.63%, 07/28/2045 | 26,000 | 20,302 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
United States–(continued) | ||||||||
Hasbro, Inc., 6.35%, 03/15/2040 | $ | 50,000 | $ | 50,675 | ||||
| ||||||||
HCA, Inc., 5.13%, 06/15/2039 | 30,000 | 28,237 | ||||||
| ||||||||
Hewlett Packard Enterprise Co., 6.35%, 10/15/2045 | 30,000 | 31,099 | ||||||
| ||||||||
Home Depot, Inc. (The), 2.70%, 04/15/2030 | 20,000 | 18,239 | ||||||
| ||||||||
Host Hotels & Resorts L.P., Series I, 3.50%, 09/15/2030 | 15,000 | 12,792 | ||||||
| ||||||||
HP, Inc., | ||||||||
5.50%, 01/15/2033 | 15,000 | 14,890 | ||||||
| ||||||||
6.00%, 09/15/2041 | 31,000 | 31,477 | ||||||
| ||||||||
Intel Corp., | ||||||||
4.95%, 03/25/2060 | 41,000 | 38,013 | ||||||
| ||||||||
5.05%, 08/05/2062 | 75,000 | 69,122 | ||||||
| ||||||||
International Business Machines Corp., 7.13%, 12/01/2096 | 43,000 | 56,184 | ||||||
| ||||||||
IPALCO Enterprises, Inc., 4.25%, 05/01/2030 | 68,000 | 62,979 | ||||||
| ||||||||
John Deere Capital Corp., 2.80%, 07/18/2029 | 20,000 | 18,454 | ||||||
| ||||||||
Johnson & Johnson, 5.95%, 08/15/2037 | 30,000 | 35,402 | ||||||
| ||||||||
JPMorgan Chase & Co., | ||||||||
3.88%, 09/10/2024 | 50,000 | 49,162 | ||||||
| ||||||||
4.13%, 12/15/2026 | 40,000 | 39,320 | ||||||
| ||||||||
2.96%, 05/13/2031(c) | 30,000 | 26,015 | ||||||
| ||||||||
Kemper Corp., 3.80%, 02/23/2032 | 25,000 | 21,641 | ||||||
| ||||||||
McKesson Corp., 1.30%, 08/15/2026(e) | 25,000 | 22,466 | ||||||
| ||||||||
Merck & Co., Inc., 1.90%, 12/10/2028 | 20,000 | 17,851 | ||||||
| ||||||||
Microsoft Corp., 3.04%, 03/17/2062 | 50,000 | 37,764 | ||||||
| ||||||||
MidAmerican Energy Co., | ||||||||
3.65%, 04/15/2029 | 20,000 | 19,294 | ||||||
| ||||||||
6.75%, 12/30/2031 | 20,000 | 23,196 | ||||||
| ||||||||
Morgan Stanley, | ||||||||
3.70%, 10/23/2024 | 85,000 | 83,387 | ||||||
| ||||||||
4.35%, 09/08/2026 | 35,000 | 34,258 | ||||||
| ||||||||
National Rural Utilities Cooperative Finance Corp., 8.00%, 03/01/2032 | 30,000 | 36,331 | ||||||
| ||||||||
Nucor Corp., 2.98%, 12/15/2055 | 25,000 | 16,685 | ||||||
| ||||||||
Omega Healthcare Investors, Inc., 3.38%, 02/01/2031 | 30,000 | 23,876 | ||||||
| ||||||||
Oracle Corp., 4.10%, 03/25/2061 | 45,000 | 33,568 | ||||||
| ||||||||
Pacific Gas and Electric Co., | ||||||||
4.20%, 03/01/2029 | 25,000 | 23,194 | ||||||
| ||||||||
4.55%, 07/01/2030 | 25,000 | 23,253 | ||||||
| ||||||||
4.40%, 03/01/2032 | 25,000 | 22,554 | ||||||
| ||||||||
Paramount Global, 7.88%, 07/30/2030 | 35,000 | 38,631 | ||||||
| ||||||||
Parker-Hannifin Corp., 3.30%, 11/21/2024 | 55,000 | 53,851 | ||||||
| ||||||||
PayPal Holdings, Inc., 5.25%, 06/01/2062 | 35,000 | 33,789 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 | Invesco World Bond Factor Fund |
Principal Amount | Value | |||||||
| ||||||||
United States–(continued) | ||||||||
Philip Morris International, Inc., | ||||||||
3.13%, 03/02/2028 | $ | 20,000 | $ | 18,808 | ||||
| ||||||||
2.10%, 05/01/2030 | 25,000 | 21,028 | ||||||
| ||||||||
6.38%, 05/16/2038 | 30,000 | 33,229 | ||||||
| ||||||||
4.50%, 03/20/2042 | 35,000 | 30,674 | ||||||
| ||||||||
PNC Financial Services Group, Inc. (The), 3.90%, 04/29/2024 | 50,000 | 49,100 | ||||||
| ||||||||
PPG Industries, Inc., 1.20%, 03/15/2026 | 40,000 | 36,315 | ||||||
| ||||||||
Prudential Financial, Inc., 3.70%, 10/01/2050(c) | 50,000 | 42,961 | ||||||
| ||||||||
Ralph Lauren Corp., 2.95%, 06/15/2030 | 44,000 | 39,727 | ||||||
| ||||||||
Realty Income Corp., 3.95%, 08/15/2027 | 25,000 | 24,141 | ||||||
| ||||||||
Ross Stores, Inc., | ||||||||
0.88%, 04/15/2026 | 15,000 | 13,471 | ||||||
| ||||||||
1.88%, 04/15/2031 | 40,000 | 32,482 | ||||||
| ||||||||
S&P Global, Inc., 2.70%, 03/01/2029 | 25,000 | 22,892 | ||||||
| ||||||||
Simon Property Group L.P., 6.75%, 02/01/2040 | 38,000 | 42,646 | ||||||
| ||||||||
Southern California Edison Co., 6.65%, 04/01/2029 | 40,000 | 43,148 | ||||||
| ||||||||
Series 2004-G, 5.75%, 04/01/2035 | 30,000 | 31,892 | ||||||
| ||||||||
Southern California Gas Co., 3.20%, 06/15/2025 | 25,000 | 24,277 | ||||||
| ||||||||
Southwest Airlines Co., 3.00%, 11/15/2026 | 50,000 | 47,090 | ||||||
| ||||||||
Southwest Gas Corp., 4.05%, 03/15/2032 | 45,000 | 41,713 | ||||||
| ||||||||
Stewart Information Services Corp., 3.60%, 11/15/2031 | 25,000 | 19,750 | ||||||
| ||||||||
Target Corp., 2.35%, 02/15/2030 | 20,000 | 17,770 | ||||||
| ||||||||
Time Warner Cable LLC, 7.30%, 07/01/2038 | 30,000 | 31,117 | ||||||
| ||||||||
Transcontinental Gas Pipe Line Co. LLC, 7.85%, 02/01/2026 | 50,000 | 53,645 | ||||||
| ||||||||
Truist Financial Corp., 2.50%, 08/01/2024 | 60,000 | 57,716 | ||||||
| ||||||||
U.S. Bancorp, 2.49%, 11/03/2036(c) | 60,000 | 45,953 | ||||||
| ||||||||
Union Electric Co., 8.45%, 03/15/2039 | 48,000 | 64,199 | ||||||
| ||||||||
Union Pacific Corp., 4.10%, 09/15/2067 | 25,000 | 21,078 | ||||||
| ||||||||
United Parcel Service, Inc., 3.40%, 03/15/2029 | 25,000 | 24,125 | ||||||
| ||||||||
UnitedHealth Group, Inc., 6.05%, 02/15/2063 | 30,000 | 34,552 | ||||||
| ||||||||
Verizon Communications, Inc., | ||||||||
4.13%, 03/16/2027 | 20,000 | 19,824 | ||||||
| ||||||||
4.33%, 09/21/2028 | 26,000 | 25,737 | ||||||
| ||||||||
Wachovia Corp., 7.57%, 08/01/2026(f) | 82,000 | 87,515 | ||||||
| ||||||||
Walt Disney Co. (The), 3.70%, 03/23/2027 | 25,000 | 24,603 | ||||||
| ||||||||
Warnermedia Holdings, Inc., 4.05%, 03/15/2029(b) | 46,000 | 42,601 | ||||||
|
Principal Amount | Value | |||||||
| ||||||||
United States–(continued) | ||||||||
Wells Fargo & Co., 4.10%, 06/03/2026 | $ | 76,000 | $ | 74,121 | ||||
| ||||||||
Western Union Co. (The), 6.20%, 11/17/2036 | 20,000 | 20,798 | ||||||
�� | ||||||||
Wyeth LLC, 6.00%, 02/15/2036 | 25,000 | 28,214 | ||||||
| ||||||||
4,699,444 | ||||||||
| ||||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 6,243,811 | ||||||
| ||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities–11.06% |
| |||||||
Federal Home Loan Mortgage Corp., | ||||||||
2.50%, 07/01/2035 - 08/01/2050 | 564,579 | 501,401 | ||||||
| ||||||||
4.50%, 09/01/2049 - 01/01/2050 | 31,615 | 31,310 | ||||||
| ||||||||
3.00%, 01/01/2050 - 05/01/2050 | 200,739 | 184,225 | ||||||
| ||||||||
2.00%, 01/01/2051 - 10/01/2051 | 516,157 | 431,076 | ||||||
| ||||||||
Federal National Mortgage Association, TBA, | ||||||||
3.50%, 05/01/2038(g) | 100,000 | 96,832 | ||||||
| ||||||||
3.00%, 05/01/2053(g) | 70,000 | 62,880 | ||||||
| ||||||||
4.50%, 06/01/2049 | 13,782 | 13,708 | ||||||
| ||||||||
3.00%, 10/01/2049 - 03/01/2050 | 155,170 | 140,833 | ||||||
| ||||||||
2.50%, 01/01/2050 - 08/01/2050 | 404,019 | 355,295 | ||||||
| ||||||||
2.00%, 03/01/2051 - 08/01/2051 | 462,219 | 386,011 | ||||||
| ||||||||
Freddie Mac Multifamily Structured Pass-Through Ctfs., | ||||||||
Series K038, Class X1, IO, 1.23%, 03/25/2024(h) | 1,427,861 | 9,066 | ||||||
| ||||||||
Uniform Mortgage-Backed Securities, TBA, | ||||||||
2.00%, 05/01/2038(g) | 120,000 | 108,309 | ||||||
| ||||||||
3.50%, 05/01/2053(g) | 285,000 | 264,827 | ||||||
| ||||||||
4.50%, 05/01/2053(g) | 375,000 | 366,606 | ||||||
| ||||||||
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $3,351,911) | 2,952,379 | |||||||
| ||||||||
U.S. Treasury Securities–10.39% |
| |||||||
U.S. Treasury Bills–0.70% | ||||||||
4.48%, 05/11/2023(i)(j) | 185,771 | 185,771 | ||||||
| ||||||||
U.S. Treasury Bonds–2.31% | ||||||||
4.00%, 11/15/2052 | 596,490 | 617,465 | ||||||
| ||||||||
U.S. Treasury Notes–7.38% | ||||||||
4.38%, 10/31/2024 | 1,057,181 | 1,059,834 | ||||||
| ||||||||
3.50%, 01/31/2028 | 577,663 | 580,710 | ||||||
| ||||||||
3.50%, 02/15/2033 | 328,032 | 330,979 | ||||||
| ||||||||
1,971,523 | ||||||||
| ||||||||
Total U.S. Treasury Securities (Cost $2,745,137) |
| 2,774,759 | ||||||
| ||||||||
Shares | ||||||||
Exchange-Traded Funds–1.41% |
| |||||||
United States–1.41% | ||||||||
Invesco High Yield Bond Factor ETF(k) (Cost $444,555) | 17,500 | 377,388 | ||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 | Invesco World Bond Factor Fund |
Shares | Value | |||||||
| ||||||||
Money Market Funds–0.89% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 4.78%(k)(l) | 83,413 | $ | 83,413 | |||||
| ||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 4.92%(k)(l) | 59,563 | 59,581 | ||||||
| ||||||||
Invesco Treasury Portfolio, Institutional Class, 4.77%(k)(l) | 95,329 | 95,329 | ||||||
| ||||||||
Total Money Market Funds (Cost $238,316) |
| 238,323 | ||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-101.82% | 27,186,499 | |||||||
|
Shares | Value | |||||||
| ||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds–0.18% | ||||||||
Invesco Private Government Fund, | 13,652 | $ | 13,652 | |||||
| ||||||||
Invesco Private Prime Fund, 4.99%(k)(l)(m) | 35,078 | 35,077 | ||||||
| ||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $48,740) | 48,729 | |||||||
| ||||||||
TOTAL INVESTMENTS IN SECURITIES–102.00% |
| 27,235,228 | ||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES–(2.00)% |
| (533,806 | ) | |||||
| ||||||||
NET ASSETS–100.00% | $ | 26,701,422 | ||||||
|
Investment Abbreviations:
AUD | – Australian Dollar | |
CAD | – Canadian Dollar | |
CHF | – Swiss Franc | |
Ctfs. | – Certificates | |
ETF | – Exchange-Traded Fund | |
EUR | – Euro | |
GBP | – British Pound Sterling | |
IDR | – Indonesian Rupiah | |
IO | – Interest Only | |
JPY | – Japanese Yen | |
KRW | – South Korean Won | |
MXN | – Mexican Peso | |
MYR | – Malaysian Ringgit | |
NOK | – Norwegian Krone | |
NZD | – New Zealand Dollar | |
PLN | – Polish Zloty | |
SEK | – Swedish Krona | |
TBA | – To Be Announced | |
THB | – Thai Baht |
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, 2023 was $10,030,658, which represented 37.57% of the Fund’s Net Assets. |
(c) | Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
(d) | Perpetual bond with no specified maturity date. |
(e) | All or a portion of this security was out on loan at April 30, 2023. |
(f) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(g) | Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1N. |
(h) | Interest only security. Principal amount shown is the notional principal and does not reflect the maturity value of the security. Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on April 30, 2023. |
(i) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L. |
(j) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(k) | Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the six months ended April 30, 2023. |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Invesco High Yield Bond Factor ETF | $ 368,287 | $ | - | $ | - | $10,853 | $ | - | $ | 377,388 | $11,069* | |||||||||||||||||
Investments in Affiliated Money Market Funds: | ||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class | - | 1,644,363 | (1,560,950 | )�� | - | - | 83,413 | 2,297 | ||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class | - | 1,174,545 | (1,114,964 | ) | 7 | (7) | 59,581 | 1,397 | ||||||||||||||||||||
Invesco Treasury Portfolio, Institutional Class | - | 1,879,272 | (1,783,943 | ) | - | - | 95,329 | 2,154 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 | Invesco World Bond Factor Fund |
Value October 31, 2022 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2023 | Dividend Income | ||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan: | ||||||||||||||||||||||||||||
Invesco Private Government Fund | $ 33,265 | $ | 122,903 | $ | (142,516 | ) | $ - | $ | - | $ | 13,652 | $ 603** | ||||||||||||||||
Invesco Private Prime Fund | 88,347 | 258,003 | (311,271 | ) | (11) | 9 | 35,077 | 1,647** | ||||||||||||||||||||
Total | $ 489,899 | $ | 5,079,086 | $ | (4,913,644 | ) | $10,849 | $ | 2 | $ | 664,440 | $ 19,167 |
* | Amounts include a return of capital distribution reclassification which reduces dividend income and increases realized gain (loss) and/or change in unrealized appreciation (depreciation). |
** | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
(l) | The rate shown is the 7-day SEC standardized yield as of April 30, 2023. |
(m) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
Open Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Canada 10 Year Bonds | 1 | June-2023 | $ | 93,058 | $ | 3,705 | $ | 3,705 | ||||||||||||
| ||||||||||||||||||||
Euro-Bobl | 1 | June-2023 | 129,991 | 3,162 | 3,162 | |||||||||||||||
| ||||||||||||||||||||
Euro-Buxl | 2 | June-2023 | 307,430 | 18,512 | 18,512 | |||||||||||||||
| ||||||||||||||||||||
Japan 10 Year Bonds | 1 | June-2023 | 1,090,682 | 25,249 | 25,249 | |||||||||||||||
| ||||||||||||||||||||
Long Gilt | 3 | June-2023 | 382,530 | 4,486 | 4,486 | |||||||||||||||
| ||||||||||||||||||||
U.S. Treasury 10 Year Ultra Notes | 4 | June-2023 | 485,813 | 10,281 | 10,281 | |||||||||||||||
| ||||||||||||||||||||
Subtotal–Long Futures Contracts | 65,395 | 65,395 | ||||||||||||||||||
| ||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||
| ||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||
| ||||||||||||||||||||
Euro-Schatz | 4 | June-2023 | (465,773 | ) | (4,694 | ) | (4,694) | |||||||||||||
| ||||||||||||||||||||
U.S. Treasury 5 Year Notes | 4 | June-2023 | (438,969 | ) | (10,031 | ) | (10,031) | |||||||||||||
| ||||||||||||||||||||
Subtotal–Short Futures Contracts | (14,725 | ) | (14,725) | |||||||||||||||||
| ||||||||||||||||||||
Total Futures Contracts | $ | 50,670 | $ | 50,670 | ||||||||||||||||
|
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||
| ||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||
Settlement | Contract to | Appreciation | ||||||||||||||||||||
Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Bank of America, N.A. | USD | 25,796 | BRL | 129,000 | $ | 67 | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | JPY | 5,145,280 | USD | 38,067 | 16 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | KRW | 124,468,300 | USD | 95,018 | 1,717 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | NOK | 15,949,249 | USD | 1,539,460 | 39,264 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | NZD | 224,840 | USD | 141,372 | 2,358 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 297,754 | CHF | 269,700 | 5,676 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 102,906 | SEK | 1,074,000 | 2,088 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 84,842 | SGD | 114,000 | 745 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 70,862 | THB | 2,424,000 | 467 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | NZD | 2,641,895 | USD | 1,642,777 | 9,351 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Citibank, N.A. | USD | 2,327,012 | CNY | 16,112,000 | 8,997 | ||||||||||||||||
| ||||||||||||||||||||||
06/22/2023 | Citibank, N.A. | CLP | 4,808,000 | USD | 5,930 | 13 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | EUR | 52,670 | USD | 58,269 | 70 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | JPY | 28,210,109 | USD | 211,571 | 2,944 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 64,003 | EUR | 59,000 | 1,191 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 66,593 | HUF | 24,261,150 | 3,998 | ||||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 | Invesco World Bond Factor Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
| ||||||||||||||||||||||
Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
Settlement | Contract to | |||||||||||||||||||||
Date | Counterparty | Deliver | Receive | |||||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 14,381 | MXN | 266,000 | $ | 265 | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 111,053 | ZAR | 2,062,380 | 1,189 | ||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Goldman Sachs International | USD | 5,518 | BRL | 27,593 | 14 | ||||||||||||||||
| ||||||||||||||||||||||
06/02/2023 | Goldman Sachs International | USD | 5,421 | BRL | 27,593 | 78 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | COP | 38,701,240 | USD | 8,293 | 145 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 15,127 | INR | 1,240,190 | 9 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | TRY | 9,000 | USD | 447 | 36 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 2,770 | TRY | 60,910 | 9 | ||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | USD | 30,011 | BRL | 156,593 | 1,385 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | JPY | 23,569,000 | USD | 179,339 | 5,036 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | KRW | 10,612,000 | USD | 8,150 | 195 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | NOK | 2,804,180 | USD | 268,637 | 4,874 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 73,587 | COP | 356,079,400 | 1,373 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 50,878 | CZK | 1,146,000 | 2,668 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 80,224 | INR | 6,628,000 | 668 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | CHF | 103,600 | USD | 116,983 | 427 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | PLN | 22,100 | USD | 5,303 | 7 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 2,746,266 | AUD | 4,143,118 | 1,091 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 1,366,931 | CAD | 1,859,681 | 7,043 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 526,742 | CHF | 477,840 | 10,859 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 7,137,519 | EUR | 6,718,510 | 286,320 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 1,203,271 | GBP | 996,918 | 50,895 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 143,470 | NOK | 1,528,140 | 269 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 16,219 | NZD | 26,280 | 30 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 11,358 | SEK | 116,290 | 10 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | AUD | 554,970 | USD | 371,831 | 3,823 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | CAD | 422,130 | USD | 312,277 | 397 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | USD | 64,720 | EUR | 59,000 | 474 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | State Street Bank & Trust Co. | SGD | 26,110 | USD | 19,605 | 2 | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | UBS AG | USD | 335,001 | EUR | 306,030 | 3,158 | ||||||||||||||||
| ||||||||||||||||||||||
Subtotal–Appreciation |
| 461,711 | ||||||||||||||||||||
| ||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Bank of America, N.A. | BRL | 129,000 | USD | 25,321 | (542) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | GBP | 56,840 | USD | 71,493 | (15) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | HUF | 12,524,000 | USD | 34,910 | (1,530) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | SEK | 6,596,753 | USD | 635,366 | (9,533) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | SGD | 41,840 | USD | 31,139 | (273) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | THB | 995,501 | USD | 29,102 | (192) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 114,040 | KRW | 149,385,000 | (2,061) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 249,797 | NOK | 2,587,970 | (6,371) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Bank of America, N.A. | USD | 163,849 | NZD | 262,220 | (1,724) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Barclays Bank PLC | USD | 43,312 | SGD | 57,500 | (143) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | BNP Paribas S.A. | USD | 118,767 | NZD | 191,000 | (676) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Citibank, N.A. | IDR | 700,427,002 | USD | 45,253 | (2,461) | ||||||||||||||||
| ||||||||||||||||||||||
06/22/2023 | Citibank, N.A. | USD | 21,903 | CLP | 17,759,000 | (49) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | HUF | 3,593,714 | USD | 9,864 | (592) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | MXN | 5,283,910 | USD | 285,670 | (5,273) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 357,759 | EUR | 323,380 | (430) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | USD | 1,217,175 | JPY | 163,448,980 | (8,397) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Deutsche Bank AG | ZAR | 2,079,000 | USD | 111,948 | (1,199) | ||||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 | Invesco World Bond Factor Fund |
Open Forward Foreign Currency Contracts–(continued) | ||||||||||||||||||||||
| ||||||||||||||||||||||
Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
Settlement | Contract to | |||||||||||||||||||||
Date | Counterparty | Deliver | Receive | |||||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | Goldman Sachs International | BRL | 27,593 | USD | 5,454 | $ | (78) | |||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | IDR | 123,758,000 | USD | 8,271 | (160) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Goldman Sachs International | USD | 15,395 | COP | 72,594,370 | (113) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 80,502 | NOK | 826,870 | (2,726) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | HSBC Bank USA | USD | 124,505 | TRY | 2,508,240 | (10,069) | ||||||||||||||||
| ||||||||||||||||||||||
05/03/2023 | J.P. Morgan Chase Bank, N.A. | BRL | 156,593 | USD | 31,314 | (81) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | COP | 38,678,356 | USD | 7,993 | (149) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | CZK | 318,000 | USD | 14,118 | (740) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | EUR | 97,000 | USD | 106,811 | (373) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | INR | 2,088,420 | USD | 25,278 | (210) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | MXN | 152,000 | USD | 8,305 | (64) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | NOK | 598,000 | USD | 55,856 | (392) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | SEK | 2,533,000 | USD | 245,247 | (2,379) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 16,286 | NOK | 170,000 | (295) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | J.P. Morgan Chase Bank, N.A. | USD | 12,062 | TRY | 264,000 | (17) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | AUD | 3,335,420 | USD | 2,210,883 | (878) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | CAD | 587,000 | USD | 431,466 | (2,223) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | CHF | 12,000 | USD | 13,228 | (273) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | EUR | 7,393,103 | USD | 7,841,568 | (327,684) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | GBP | 719,520 | USD | 885,210 | (19,978) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | PLN | 603,121 | USD | 135,182 | (9,333) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Morgan Stanley and Co. International PLC | USD | 230,264 | CAD | 309,000 | (1,967) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | AUD | 326,850 | USD | 216,271 | (468) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | CAD | 153,690 | USD | 113,367 | (184) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | CHF | 1,501,664 | USD | 1,610,192 | (79,277) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | EUR | 84,000 | USD | 90,925 | (1,893) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | Royal Bank of Canada | USD | 5,178 | CAD | 7,000 | (7) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | UBS AG | INR | 349,030 | USD | 4,228 | (32) | ||||||||||||||||
| ||||||||||||||||||||||
06/21/2023 | UBS AG | USD | 207,866 | JPY | 27,221,097 | (6,554) | ||||||||||||||||
| ||||||||||||||||||||||
Subtotal–Depreciation |
| (510,058) | ||||||||||||||||||||
| ||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | (48,347) | |||||||||||||||||||
|
Open Centrally Cleared Interest Rate Swap Agreements | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
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) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month STIBOR | Quarterly | (2.60 | )% | Annually | 07/05/2032 | SEK | 1,920,000 | $ | 652 | $ | 3,943 | $ | 3,291 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 6 Month SARON | Semi-Annually | 0.33 | Annually | 12/02/2026 | CHF | 61,000 | 48 | 5,130 | 5,082 | ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 3 Month CNRR007 | Quarterly | 2.86 | Quarterly | 02/03/2028 | CNY | 14,056,000 | (595 | ) | 13,391 | 13,986 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month STIBOR | Quarterly | (1.15 | ) | Annually | 02/02/2032 | SEK | 1,956,000 | 523 | 25,041 | 24,518 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | SONIA | Annually | (1.18 | ) | Annually | 09/30/2031 | GBP | 110,000 | (4,438 | ) | 24,869 | 29,307 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month NDBB | Quarterly | (1.46 | ) | Semi-Annually | 08/03/2026 | NZD | 473,000 | (6,684 | ) | 27,438 | 34,122 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | TONAR | Annually | 0.06 | Annually | 03/01/2024 | JPY | 41,000,000 | (57,256 | ) | 107 | 57,363 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Subtotal – Appreciation | (67,750 | ) | 99,919 | 167,669 | ||||||||||||||||||||||||||||||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 | Invesco World Bond Factor Fund |
Open Centrally Cleared Interest Rate Swap Agreements–(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) | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | SOFR | Annually | (3.46 | )% | Annually | 02/16/2033 | USD | 1,132,000 | $ | 862 | $ | (26,507 | ) | $ | (27,369) | |||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 6 Month ADBB | Semi-Annually | (4.30 | ) | Semi-Annually | 11/01/2027 | AUD | 295,000 | (1,547 | ) | (6,479 | ) | (4,932) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 3 Month CNRR007 | Quarterly | 2.47 | Quarterly | 07/29/2027 | CNY | 4,000,000 | – | (4,565 | ) | (4,565) | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month NDBB | Quarterly | (4.69 | ) | Semi-Annually | 01/06/2028 | NZD | 541,733 | (1,214 | ) | (5,010 | ) | (3,796) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | SOFR | Annually | (3.13 | ) | Annually | 02/16/2053 | USD | 23,000 | 19 | (645 | ) | (664) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month CDOR | Semi-Annually | (3.37 | ) | Semi-Annually | 04/03/2033 | CAD | 117,000 | (4 | ) | (272 | ) | (268) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Receive | 3 Month CDOR | Semi-Annually | (3.43 | ) | Semi-Annually | 04/03/2028 | CAD | 278,000 | (9 | ) | (275 | ) | (266) | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Pay | 3 Month STIBOR | Quarterly | 0.49 | Annually | 02/08/2031 | SEK | 171 | (1 | ) | (3 | ) | (2) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Subtotal – Depreciation |
| (1,894 | ) | (43,756 | ) | (41,862) | ||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
Total Centrally Cleared Interest Rate Swap Agreements |
| $ | (69,644 | ) | $ | 56,163 | $ | 125,807 | ||||||||||||||||||||||||||||
|
Abbreviations: | ||
ADBB | –Australian Dollar Bank Bill | |
AUD | –Australian Dollar | |
BRL | –Brazilian Real | |
CAD | –Canadian Dollar | |
CDOR | –Canadian Dealer Offered Rate | |
CHF | –Swiss Franc | |
CLP | –Chile Peso | |
CNRR007 | –China 7-Day Reverse Repo Rate | |
CNY | –Chinese Yuan Renminbi | |
COP | –Colombia Peso | |
CZK | –Czech Koruna | |
EUR | –Euro | |
GBP | –British Pound Sterling | |
HUF | –Hungarian Forint | |
IDR | –Indonesian Rupiah | |
INR | –Indian Rupee | |
JPY | –Japanese Yen | |
KRW | –South Korean Won | |
MXN | –Mexican Peso | |
NDBB | –New Zealand Dollar Bank Bill | |
NOK | –Norwegian Krone | |
NZD | –New Zealand Dollar | |
PLN | –Polish Zloty | |
SARON | –Swiss Average Rate Overnight | |
SEK | –Swedish Krona | |
SGD | –Singapore Dollar | |
SOFR | –Secured Overnight Financing Rate | |
SONIA | –Sterling Overnight Index Average | |
STIBOR | –Stockholm Interbank Offered Rate | |
THB | –Thai Baht | |
TONAR | –Tokyo Overnight Average Rate | |
TRY | –Turkish Lira | |
USD | –U.S. Dollar | |
ZAR | –South African Rand |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 | Invesco World Bond Factor Fund |
Portfolio Composition
By sector, based on Net Assets
as of April 30, 2023
Sovereign Debt | 39.04 | % | ||
Financials | 13.87 | |||
Collateralized Mortgage Obligations | 11.06 | |||
U.S. Treasury Securities | 10.39 | |||
Consumer Staples | 3.72 | |||
Industrials | 3.52 | |||
Consumer Discretionary | 3.13 | |||
Utilities | 2.50 | |||
Health Care | 2.32 | |||
Communication Services | 2.21 | |||
Energy | 2.19 | |||
Real Estate | 2.18 | |||
Information Technology | 2.05 | |||
Other Sectors, Each Less than 2% of Net Assets | 2.74 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.92 | ) |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 | Invesco World Bond Factor Fund |
Statement of Assets and Liabilities
April 30, 2023
(Unaudited)
Assets: | ||||
Investments in unaffiliated securities, at value | $ | 26,570,788 | ||
| ||||
Investments in affiliates, at value | 664,440 | |||
| ||||
Other investments: | ||||
Variation margin receivable - futures contracts | 15,954 | |||
| ||||
Variation margin receivable-centrally cleared swap agreements | 145,472 | |||
| ||||
Unrealized appreciation on forward foreign currency contracts outstanding | 461,711 | |||
| ||||
Foreign currencies, at value (Cost $81,979) | 87,613 | |||
| ||||
Receivable for: | ||||
Investments sold | 71,111 | |||
| ||||
Fund shares sold | 864 | |||
| ||||
Dividends | 1,367 | |||
| ||||
Interest | 281,162 | |||
| ||||
Investment for trustee deferred compensation and retirement plans | 23,640 | |||
| ||||
Other assets | 56,573 | |||
| ||||
Total assets | 28,380,695 | |||
| ||||
Liabilities: | ||||
Other investments: | ||||
Unrealized depreciation on forward foreign currency contracts outstanding | 510,058 | |||
| ||||
Payable for: | ||||
Investments purchased | 70,852 | |||
| ||||
TBA sales commitment | 909,452 | |||
| ||||
Fund shares reacquired | 13,803 | |||
| ||||
Amount due custodian | 19,520 | |||
| ||||
Collateral upon return of securities loaned | 48,740 | |||
| ||||
Accrued fees to affiliates | 17,865 | |||
| ||||
Accrued other operating expenses | 62,996 | |||
| ||||
Trustee deferred compensation and retirement plans | 25,987 | |||
| ||||
Total liabilities | 1,679,273 | |||
| ||||
Net assets applicable to shares outstanding | $ | 26,701,422 | ||
|
Net assets consist of: | ||||
Shares of beneficial interest | $ | 33,131,199 | ||
| ||||
Distributable earnings (loss) | (6,429,777 | ) | ||
| ||||
$ | 26,701,422 | |||
| ||||
Net Assets: | ||||
Class A | $ | 16,608,584 | ||
| ||||
Class C | $ | 1,383,421 | ||
| ||||
Class Y | $ | 7,249,604 | ||
| ||||
Class R5 | $ | 718 | ||
| ||||
Class R6 | $ | 1,459,095 | ||
| ||||
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |||
Class A | 1,861,872 | |||
| ||||
Class C | 155,446 | |||
| ||||
Class Y | 813,288 | |||
| ||||
Class R5 | 81.25 | |||
| ||||
Class R6 | 163,487 | |||
| ||||
Class A: | ||||
Net asset value per share | $ | 8.92 | ||
| ||||
Maximum offering price per share | ||||
(Net asset value of $8.92 ÷ 95.75%) | $ | 9.32 | ||
| ||||
Class C: | ||||
Net asset value and offering price per share | $ | 8.90 | ||
| ||||
Class Y: | ||||
Net asset value and offering price per share | $ | 8.91 | ||
| ||||
Class R5: | ||||
Net asset value and offering price per share | $ | 8.84 | ||
| ||||
Class R6: | ||||
Net asset value and offering price per share | $ | 8.92 | ||
|
* | At April 30, 2023, securities with an aggregate value of $47,788 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 | Invesco World Bond Factor Fund |
Statement of Operations
For the six months ended April 30, 2023
(Unaudited)
Investment income: | ||||
Interest (net of foreign withholding taxes of $881) | $ | 323,657 | ||
| ||||
Dividends from affiliates (includes net securities lending income of $160) | 17,077 | |||
| ||||
Total investment income | 340,734 | |||
| ||||
Expenses: | ||||
Advisory fees | 36,734 | |||
| ||||
Administrative services fees | 1,988 | |||
| ||||
Custodian fees | 20,381 | |||
| ||||
Distribution fees: | ||||
Class A | 20,580 | |||
| ||||
Class C | 6,700 | |||
| ||||
Interest expense | 22,394 | |||
| ||||
Transfer agent fees - A, C and Y | 37,131 | |||
| ||||
Transfer agent fees - R6 | 202 | |||
| ||||
Trustees’ and officers’ fees and benefits | 6,369 | |||
| ||||
Registration and filing fees | 35,794 | |||
| ||||
Reports to shareholders | 6,823 | |||
| ||||
Professional services fees | 31,499 | |||
| ||||
Other | 5,544 | |||
| ||||
Total expenses | 232,139 | |||
| ||||
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (143,101 | ) | ||
| ||||
Net expenses | 89,038 | |||
| ||||
Net investment income | 251,696 | |||
| ||||
Realized and unrealized gain (loss) from: | ||||
Net realized gain (loss) from: | ||||
Unaffiliated investment securities | (1,766,368 | ) | ||
| ||||
Affiliated investment securities | 2 | |||
| ||||
Foreign currencies | (18,922 | ) | ||
| ||||
Forward foreign currency contracts | (34,361 | ) | ||
| ||||
Futures contracts | (120,221 | ) | ||
| ||||
Swap agreements | 291,506 | |||
| ||||
(1,648,364 | ) | |||
| ||||
Change in net unrealized appreciation (depreciation) of: | ||||
Unaffiliated investment securities | 4,046,144 | |||
| ||||
Affiliated investment securities | 10,849 | |||
| ||||
Foreign currencies | 2,873 | |||
| ||||
Forward foreign currency contracts | (43,364 | ) | ||
| ||||
Futures contracts | 75,739 | |||
| ||||
Swap agreements | (282,104 | ) | ||
| ||||
3,810,137 | ||||
| ||||
Net realized and unrealized gain | 2,161,773 | |||
| ||||
Net increase in net assets resulting from operations | $ | 2,413,469 | ||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 | Invesco World Bond Factor Fund |
Statement of Changes in Net Assets
For the six months ended April 30, 2023 and the year ended October 31, 2022
(Unaudited)
April 30, | October 31, | |||||||
2023 | 2022 | |||||||
| ||||||||
Operations: | ||||||||
Net investment income | $ | 251,696 | $ | 336,514 | ||||
| ||||||||
Net realized gain (loss) | (1,648,364 | ) | (3,370,608 | ) | ||||
| ||||||||
Change in net unrealized appreciation (depreciation) | 3,810,137 | (5,705,706 | ) | |||||
| ||||||||
Net increase (decrease) in net assets resulting from operations | 2,413,469 | (8,739,800 | ) | |||||
| ||||||||
Distributions to shareholders from distributable earnings: | ||||||||
Class A | (87,861 | ) | (405,867 | ) | ||||
| ||||||||
Class C | (2,134 | ) | (22,570 | ) | ||||
| ||||||||
Class Y | (53,089 | ) | (308,318 | ) | ||||
| ||||||||
Class R5 | (5 | ) | (17 | ) | ||||
| ||||||||
Class R6 | (9,252 | ) | (28,190 | ) | ||||
| ||||||||
Total distributions from distributable earnings | (152,341 | ) | (764,962 | ) | ||||
| ||||||||
Return of capital: | ||||||||
Class A | - | (49,271 | ) | |||||
| ||||||||
Class C | - | (2,604 | ) | |||||
| ||||||||
Class Y | - | (37,742 | ) | |||||
| ||||||||
Class R5 | - | (2 | ) | |||||
| ||||||||
Class R6 | - | (3,502 | ) | |||||
| ||||||||
Total return of capital | - | (93,121 | ) | |||||
| ||||||||
Total distributions | (152,341 | ) | (858,083 | ) | ||||
| ||||||||
Share transactions–net: |
| |||||||
Class A | (784,187 | ) | (2,795,234 | ) | ||||
| ||||||||
Class C | (24,959 | ) | (352,050 | ) | ||||
| ||||||||
Class Y | (4,654,813 | ) | (1,667,541 | ) | ||||
| ||||||||
Class R6 | 93,486 | 405,699 | ||||||
| ||||||||
Net increase (decrease) in net assets resulting from share transactions | (5,370,473 | ) | (4,409,126 | ) | ||||
| ||||||||
Net increase (decrease) in net assets | (3,109,345 | ) | (14,007,009 | ) | ||||
| ||||||||
Net assets: | ||||||||
Beginning of period | 29,810,767 | 43,817,776 | ||||||
| ||||||||
End of period | $ | 26,701,422 | $ | 29,810,767 | ||||
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 | Invesco World Bond Factor Fund |
(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 unrealized) | Total from investment operations | Dividends from net investment income | Distributions from net realized gains | Return of capital | Total distributions | Net asset value, end of period | Total return (b) | Net assets, end of period (000’s omitted) | Ratio of net assets expenses absorbed | Ratio of fee waivers | Ratio of net to average | Portfolio turnover (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | $ | 8.23 | $ | 0.08 | $ | 0.66 | $ | 0.74 | $ | (0.05 | ) | $ | – | $ | – | $ | (0.05 | ) | $ | 8.92 | 8.96 | % | $ | 16,609 | 0.70 | %(d) | 1.77 | %(d) | 1.80 | %(d) | 83 | % | |||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 10.71 | 0.08 | (2.35 | ) | (2.27 | ) | (0.17 | ) | (0.02 | ) | (0.02 | ) | (0.21 | ) | 8.23 | (21.52 | ) | 16,081 | 0.56 | 1.42 | 0.83 | 123 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 11.01 | 0.05 | (0.10 | ) | (0.05 | ) | (0.12 | ) | (0.13 | ) | – | (0.25 | ) | 10.71 | (0.49 | ) | 24,150 | 0.54 | 1.25 | 0.49 | 165 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.61 | 0.13 | 0.45 | 0.58 | (0.18 | ) | – | – | (0.18 | ) | 11.01 | 5.56 | 26,165 | 0.64 | 1.49 | 1.21 | 191 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 9.66 | 0.30 | 0.92 | 1.22 | (0.11 | ) | – | (0.16 | ) | (0.27 | ) | 10.61 | 12.83 | 20,458 | 0.94 | 2.08 | 2.97 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 8.21 | 0.05 | 0.65 | 0.70 | (0.01 | ) | – | – | (0.01 | ) | 8.90 | 8.57 | 1,383 | 1.45 | (d) | 2.52 | (d) | 1.05 | (d) | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 10.68 | 0.01 | (2.34 | ) | (2.33 | ) | (0.11 | ) | (0.02 | ) | (0.01 | ) | (0.14 | ) | 8.21 | (22.09 | ) | 1,301 | 1.31 | 2.17 | 0.08 | 123 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.98 | (0.03 | ) | (0.10 | ) | (0.13 | ) | (0.04 | ) | (0.13 | ) | – | (0.17 | ) | 10.68 | (1.24 | ) | 2,079 | 1.29 | 2.00 | (0.26 | ) | 165 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.59 | 0.05 | 0.45 | 0.50 | (0.11 | ) | – | – | (0.11 | ) | 10.98 | 4.74 | 2,482 | 1.39 | 2.24 | 0.46 | 191 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 9.64 | 0.22 | 0.93 | 1.15 | (0.08 | ) | – | (0.12 | ) | (0.20 | ) | 10.59 | 12.01 | 2,046 | 1.69 | 2.83 | 2.22 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 8.23 | 0.09 | 0.65 | 0.74 | (0.06 | ) | – | – | (0.06 | ) | 8.91 | 8.97 | 7,250 | 0.45 | (d) | 1.52 | (d) | 2.05 | (d) | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 10.70 | 0.10 | (2.33 | ) | (2.23 | ) | (0.19 | ) | (0.02 | ) | (0.03 | ) | (0.24 | ) | 8.23 | (21.25 | ) | 11,167 | 0.31 | 1.17 | 1.08 | 123 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 11.01 | 0.08 | (0.11 | ) | (0.03 | ) | (0.15 | ) | (0.13 | ) | – | (0.28 | ) | 10.70 | (0.33 | ) | 16,365 | 0.29 | 1.00 | 0.74 | 165 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.61 | 0.16 | 0.44 | 0.60 | (0.20 | ) | – | – | (0.20 | ) | 11.01 | 5.81 | 11,717 | 0.39 | 1.24 | 1.46 | 191 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 9.65 | 0.33 | 0.93 | 1.26 | (0.12 | ) | – | (0.18 | ) | (0.30 | ) | 10.61 | 13.23 | 2,783 | 0.69 | 1.83 | 3.22 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 8.18 | 0.09 | 0.63 | 0.72 | (0.06 | ) | – | – | (0.06 | ) | 8.84 | 8.77 | 1 | 0.45 | (d) | 1.26 | (d) | 2.05 | (d) | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 10.63 | 0.10 | (2.31 | ) | (2.21 | ) | (0.19 | ) | (0.02 | ) | (0.03 | ) | (0.24 | ) | 8.18 | (21.21 | ) | 1 | 0.31 | 0.99 | 1.08 | 123 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 10.94 | 0.08 | (0.11 | ) | (0.03 | ) | (0.15 | ) | (0.13 | ) | – | (0.28 | ) | 10.63 | (0.34 | ) | 1 | 0.29 | 0.85 | 0.74 | 165 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.56 | 0.15 | 0.43 | 0.58 | (0.20 | ) | – | – | (0.20 | ) | 10.94 | 5.64 | 1 | 0.39 | 1.11 | 1.46 | 191 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 9.64 | 0.33 | 0.89 | 1.22 | (0.12 | ) | – | (0.18 | ) | (0.30 | ) | 10.56 | 12.81 | 1 | 0.69 | 1.60 | 3.22 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 04/30/23 | 8.24 | 0.09 | 0.65 | 0.74 | (0.06 | ) | – | – | (0.06 | ) | 8.92 | 8.96 | 1,459 | 0.45 | (d) | 1.26 | (d) | 2.05 | (d) | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/22 | 10.71 | 0.10 | (2.33 | ) | (2.23 | ) | (0.19 | ) | (0.02 | ) | (0.03 | ) | (0.24 | ) | 8.24 | (21.23 | ) | 1,261 | 0.31 | 0.99 | 1.08 | 123 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/21 | 11.02 | 0.08 | (0.11 | ) | (0.03 | ) | (0.15 | ) | (0.13 | ) | – | (0.28 | ) | 10.71 | (0.33 | ) | 1,224 | 0.29 | 0.85 | 0.74 | 165 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/20 | 10.62 | 0.15 | 0.46 | 0.61 | (0.21 | ) | – | – | (0.21 | ) | 11.02 | 5.81 | 286 | 0.39 | 1.11 | 1.46 | 191 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 10/31/19 | 9.66 | 0.33 | 0.93 | 1.26 | (0.12 | ) | – | (0.18 | ) | (0.30 | ) | 10.62 | 13.21 | 138 | 0.69 | 1.60 | 3.22 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
(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) | Annualized. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 | Invesco World Bond Factor Fund |
April 30, 2023
(Unaudited)
NOTE 1–Significant Accounting Policies
Invesco World Bond Factor 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.
The Fund currently consists of five different classes of shares: Class A, Class C, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the “Conversion Feature”). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
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 may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/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 market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and
20 | Invesco World Bond Factor Fund |
unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B. | Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C. | Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions – Distributions from net investment income, if any, are declared and paid monthly. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
G. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are |
21 | Invesco World Bond Factor Fund |
net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended April 30, 2023, fees paid to the Adviser were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.
J. | Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
K. | Forward Foreign Currency Contracts – The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
L. | 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. |
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 or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s net asset value (“NAV”) per share over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and
22 | Invesco World Bond Factor Fund |
thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of April 30, 2023, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
N. | Dollar Rolls and Forward Commitment Transactions – The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date. |
The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate.
Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement.
O. | LIBOR Transition Risk – The Fund may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR is intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates will no longer be published after June 2023. |
There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Fund and the instruments in which the Fund invests. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Fund invests that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that will replace LIBOR in certain financial contracts after June 30, 2023. These regulations apply only to contracts governed by U.S. law, among other limitations. The Funds may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Fund could result in losses to the Fund.
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. |
R. | Other Risks – Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
Mortgage- and asset-backed securities, including collateralized debt obligations and collateralized mortgage obligations, are subject to prepayment or call risk, which is the risk that a borrower’s payments may be received earlier or later than expected due to changes in prepayment rates on underlying loans. This could result in the Fund reinvesting these early payments at lower interest rates, thereby reducing the Fund’s income. Mortgage- and asset-backed securities also are subject to extension risk, which is the risk that an unexpected rise in interest rates could reduce the rate of prepayments, causing the price of the mortgage- and asset-backed securities and the Fund’s share price to fall. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may adversely affect
23 | Invesco World Bond Factor Fund |
the value of mortgage-backed securities and could result in losses to the Fund. Privately-issued mortgage-backed securities and asset-backed securities may be less liquid than other types of securities and the Fund may be unable to sell these securities at the time or price it desires.
Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Fund’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Fund’s portfolio turnover rate and transaction costs.
Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Fund’s operations, universe of potential investment options, and return potential.
NOTE 2–Advisory Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory agreement with the Adviser. Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Rate | |||
| ||||
First $2 billion | 0.270% | |||
| ||||
Over $2 billion | 0.250% | |||
|
For the six months ended April 30, 2023, the effective advisory fee rate incurred by the Fund was 0.27%.
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, 2024, 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 0.54%, 1.29%, 0.29%, 0.29% and 0.29%, 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, 2024. 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 limit, 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, 2025, 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, 2023, the Adviser waived advisory fees of $36,734 and reimbursed fund level expenses of $68,150 and reimbursed class level expenses of $23,694, $1,928, $11,510, $0 and $201 of Class A, Class C, 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, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the six months ended April 30, 2023, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A and Class C shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class C shares. The fees are accrued daily and paid monthly. Of the 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, 2023, 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, 2023, IDI advised the Fund that IDI retained $216 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.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3–Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 - | Prices are determined using quoted prices in an active market for identical assets. |
24 | Invesco World Bond Factor Fund |
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 Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation input levels, as of April 30, 2023. 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 | $ | – | $ | 14,599,839 | $– | $ | 14,599,839 | |||||||||
| ||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | – | 6,243,811 | – | 6,243,811 | ||||||||||||
| ||||||||||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | – | 2,952,379 | – | 2,952,379 | ||||||||||||
| ||||||||||||||||
U.S. Treasury Securities | – | 2,774,759 | – | 2,774,759 | ||||||||||||
| ||||||||||||||||
Exchange-Traded Funds | 377,388 | – | – | 377,388 | ||||||||||||
| ||||||||||||||||
Money Market Funds | 238,323 | 48,729 | – | 287,052 | ||||||||||||
| ||||||||||||||||
Total Investments in Securities | 615,711 | 26,619,517 | – | 27,235,228 | ||||||||||||
| ||||||||||||||||
Other Investments - Assets* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | 65,395 | – | – | 65,395 | ||||||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | 461,711 | – | 461,711 | ||||||||||||
| ||||||||||||||||
Swap Agreements | – | 167,669 | – | 167,669 | ||||||||||||
| ||||||||||||||||
65,395 | 629,380 | – | 694,775 | |||||||||||||
| ||||||||||||||||
Other Investments - Liabilities* | ||||||||||||||||
| ||||||||||||||||
Futures Contracts | �� | (14,725 | ) | – | – | (14,725 | ) | |||||||||
| ||||||||||||||||
Forward Foreign Currency Contracts | – | (510,058 | ) | – | (510,058 | ) | ||||||||||
| ||||||||||||||||
Swap Agreements | – | (41,862 | ) | – | (41,862 | ) | ||||||||||
| ||||||||||||||||
(14,725 | ) | (551,920 | ) | – | (566,645 | ) | ||||||||||
| ||||||||||||||||
Total Other Investments | 50,670 | 77,460 | – | 128,130 | ||||||||||||
| ||||||||||||||||
Total Investments | $ | 666,381 | $ | 26,696,977 | $– | $ | 27,363,358 | |||||||||
|
* | Unrealized appreciation (depreciation). |
NOTE 4–Derivative Investments
The Fund may enter into an ISDA Master Agreement under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the 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, 2023:
Value | ||||||||||||
|
| |||||||||||
Derivative Assets | Currency Risk | Interest Rate Risk | Total | |||||||||
| ||||||||||||
Unrealized appreciation on futures contracts – Exchange-Traded(a) | $ | – | $ | 65,395 | $ | 65,395 | ||||||
| ||||||||||||
Unrealized appreciation on swap agreements – Centrally Cleared(a) | – | 167,669 | 167,669 | |||||||||
| ||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | 461,711 | – | 461,711 | |||||||||
| ||||||||||||
Total Derivative Assets | 461,711 | 233,064 | 694,775 | |||||||||
| ||||||||||||
Derivatives not subject to master netting agreements | – | (233,064 | ) | (233,064 | ) | |||||||
| ||||||||||||
Total Derivative Assets subject to master netting agreements | $ | 461,711 | $ | – | $ | 461,711 | ||||||
|
25 | Invesco World Bond Factor Fund |
Value | ||||||||||||
|
| |||||||||||
Derivative Liabilities | Currency Risk | Interest Rate Risk | Total | |||||||||
| ||||||||||||
Unrealized depreciation on futures contracts –Exchange-Traded(a) | $ | – | $ | (14,725 | ) | $ | (14,725 | ) | ||||
| ||||||||||||
Unrealized depreciation on swap agreements – Centrally Cleared(a) | – | (41,862 | ) | (41,862 | ) | |||||||
| ||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | (510,058 | ) | – | (510,058 | ) | |||||||
| ||||||||||||
Total Derivative Liabilities | (510,058 | ) | (56,587 | ) | (566,645 | ) | ||||||
| ||||||||||||
Derivatives not subject to master netting agreements | – | 56,587 | 56,587 | |||||||||
| ||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | (510,058 | ) | $ | – | $ | (510,058 | ) | ||||
|
(a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of April 30, 2023.
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. | $ 52,398 | $ (22,241) | $ 30,157 | $– | $– | $ 30,157 | ||||||||||||||||||
| ||||||||||||||||||||||||
Barclays Bank PLC | – | (143) | (143) | – | – | (143 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
BNP Paribas S.A. | 9,351 | (676) | 8,675 | – | – | 8,675 | ||||||||||||||||||
| ||||||||||||||||||||||||
Citibank, N.A. | 9,010 | (2,510) | 6,500 | – | – | 6,500 | ||||||||||||||||||
| ||||||||||||||||||||||||
Deutsche Bank AG | 9,657 | (15,891) | (6,234) | – | – | (6,234 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
Goldman Sachs International | 246 | (351) | (105) | – | – | (105 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
HSBC Bank USA | 45 | (12,795) | (12,750) | – | – | (12,750 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
J.P. Morgan Chase Bank, N.A. | 16,199 | (4,700) | 11,499 | – | – | 11,499 | ||||||||||||||||||
| ||||||||||||||||||||||||
Morgan Stanley and Co. International PLC | 356,951 | (362,336) | (5,385) | – | – | (5,385 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
Royal Bank of Canada | 4,694 | (81,829) | (77,135) | – | – | (77,135 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
State Street Bank & Trust Co. | 2 | – | 2 | – | – | 2 | ||||||||||||||||||
| ||||||||||||||||||||||||
UBS AG | 3,158 | (6,586) | (3,428) | – | – | (3,428 | ) | |||||||||||||||||
| ||||||||||||||||||||||||
Total | $461,711 | $(510,058) | $(48,347) | $– | $– | $(48,347 | ) | |||||||||||||||||
|
Effect of Derivative Investments for the six months ended April 30, 2023
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 | ||||||||||||
Currency Risk | Interest Rate Risk | Total | ||||||||||
| ||||||||||||
Realized Gain (Loss): | ||||||||||||
Forward foreign currency contracts | $ | (34,361 | ) | $ | - | $ | (34,361 | ) | ||||
| ||||||||||||
Futures contracts | - | (120,221 | ) | (120,221 | ) | |||||||
| ||||||||||||
Swap agreements | - | 291,506 | 291,506 | |||||||||
| ||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||
Forward foreign currency contracts | (43,364 | ) | - | (43,364 | ) | |||||||
| ||||||||||||
Futures contracts | - | 75,739 | 75,739 | |||||||||
| ||||||||||||
Swap agreements | - | (282,104 | ) | (282,104 | ) | |||||||
| ||||||||||||
Total | $ | (77,725 | ) | $ | (35,080 | ) | $ | (112,805 | ) | |||
|
The table below summarizes the average notional value of derivatives held during the period.
Forward Foreign Currency Contracts | Futures Contracts | Swap Agreements | ||||
| ||||||
Average notional value | $51,905,374 | $4,335,412 | $7,072,929 | |||
|
26 | Invesco World Bond Factor 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, 2023, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $884.
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 caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8–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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of October 31, 2022, as follows:
Capital Loss Carryforward* | ||||||||||||
| ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
| ||||||||||||
Not subject to expiration | $1,234,188 | $651,795 | $1,885,983 | |||||||||
|
* | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9–Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the six months ended April 30, 2023 was $7,885,095 and $12,059,813, 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 | $ 1,051,010 | |||
| ||||
Aggregate unrealized (depreciation) of investments | (4,041,942 | ) | ||
| ||||
Net unrealized appreciation (depreciation) of investments | $(2,990,932 | ) | ||
|
Cost of investments for tax purposes is $30,354,291.
NOTE 10–Share Information
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Sold: | ||||||||||||||||
Class A | 79,263 | $ | 699,988 | 203,072 | $ | 1,968,814 | ||||||||||
| ||||||||||||||||
Class C | 17,804 | 157,590 | 31,200 | 297,438 | ||||||||||||
| ||||||||||||||||
Class Y | 68,399 | 594,436 | 659,898 | 6,099,328 | ||||||||||||
| ||||||||||||||||
Class R6 | 24,813 | 219,263 | 66,597 | 654,707 | ||||||||||||
| ||||||||||||||||
Issued as reinvestment of dividends: | ||||||||||||||||
Class A | 9,052 | 79,837 | 41,630 | 413,687 | ||||||||||||
| ||||||||||||||||
Class C | 212 | 1,862 | 1,991 | 20,177 | ||||||||||||
| ||||||||||||||||
Class Y | 3,917 | 34,441 | 25,459 | 251,987 | ||||||||||||
| ||||||||||||||||
Class R6 | 1,042 | 9,194 | 3,230 | 31,454 | ||||||||||||
|
27 | Invesco World Bond Factor Fund |
Summary of Share Activity | ||||||||||||||||
| ||||||||||||||||
Six months ended April 30, 2023(a) | Year ended October 31, 2022 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| ||||||||||||||||
Automatic conversion of Class C shares to Class A shares: | ||||||||||||||||
Class A | 5,361 | $ 47,411 | 5,671 | $ | 53,819 | |||||||||||
| ||||||||||||||||
Class C | (5,373 | ) | (47,411 | ) | (5,685 | ) | (53,819 | ) | ||||||||
| ||||||||||||||||
Reacquired: | ||||||||||||||||
Class A | (185,021 | ) | (1,611,423 | ) | (552,300 | ) | (5,231,554 | ) | ||||||||
| ||||||||||||||||
Class C | (15,562 | ) | (137,000 | ) | (63,739 | ) | (615,846 | ) | ||||||||
| ||||||||||||||||
Class Y | (616,172 | ) | (5,283,690 | ) | (857,201 | ) | (8,018,856 | ) | ||||||||
| ||||||||||||||||
Class R6 | (15,444 | ) | (134,971 | ) | (30,991 | ) | (280,462 | ) | ||||||||
| ||||||||||||||||
Net increase (decrease) in share activity | (627,709 | ) | $(5,370,473 | ) | (471,168 | ) | $ | (4,409,126 | ) | |||||||
|
(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. |
28 | Invesco World Bond Factor 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, 2022 through April 30, 2023.
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 | ACTUAL | HYPOTHETICAL (5% annual return before expenses) | Annualized Ratio | |||||||||
Ending Account Value (04/30/23)1 | Expenses Paid During Period2 | Ending Account Value (04/30/23) | Expenses Paid During Period2 | |||||||||
Class A | $1,000.00 | $1,089.60 | $3.63 | $1,021.32 | $3.51 | 0.70% | ||||||
Class C | 1,000.00 | 1,085.70 | 7.50 | 1,017.60 | 7.25 | 1.45 | ||||||
Class Y | 1,000.00 | 1,091.00 | 2.33 | 1,022.56 | 2.26 | 0.45 | ||||||
Class R5 | 1,000.00 | 1,089.00 | 2.33 | 1,022.56 | 2.26 | 0.45 | ||||||
Class R6 | 1,000.00 | 1,092.10 | 2.33 | 1,022.56 | 2.26 | 0.45 |
1 | The actual ending account value is based on the actual total return of the Fund for the period November 1, 2022 through April 30, 2023, 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. |
29 | Invesco World Bond Factor 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 portfolio holdings four times each year, at the end of each fiscal quarter. For the second and fourth quarters, the list appears, respectively, in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the list with the Securities and Exchange Commission (SEC) as an exhibit to its reports on Form N-PORT. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Form N-PORT 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/corporate/about-us/esg. 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 number(s): 811-05426 and 033-19338 | Invesco Distributors, Inc. | WBD-SAR-1 |
ITEM 2. | CODE OF ETHICS. |
Not applicable for a semi-annual report.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
None
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | As of June 15, 2023, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of June 15, 2023, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. |
(b) | There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
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: | June 30, 2023 |
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: | June 30, 2023 |
By: | /s/ Adrien Deberghes | |
Adrien Deberghes | ||
Principal Financial Officer | ||
Date: | June 30, 2023 |